Bad Credit Loans With Guaranteed Approval In 2020 (Compared)

If you’re one of those people having issues with getting loans because of bad credit history, or struggling with problems consolidating multiple debts, here are 7 loan institutions offering bad credit loans with guaranteed approval.

  • ✔ Review methodology
  • ✔ Services, pros & cons, reputation
  • ✔ Loan types for bad credit
  • ✔ How to choose a lender for guaranteed approval

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Top Services For Bad Credit Loans & Guaranteed Approval

1. LightStream

No origination fees

Satisfaction guarantee programs

Available for a wide variety of purpose

Best Bad Credit Loans With Instant Approval For Long Term Borrowing

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LightStream offers personal fast bad credit loans with amounts ranging from $5,000 to $100,000. Loans can be borrowed for a fixed rate with a 24 to 72-month term and are available to applicants with a credit score of 660 or higher. LightStream also returns $100 to unsatisfied customers and is even willing to beat the price of competitors for similar loans.

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Application Process

Funding Time

Reputation

2. Prosper

No prepayment penalties

Quick application turnaround time

Available for a wide variety of purposes

Best Turnaround Time For Poor Credit Loans With Guaranteed Approval

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Prosper is an online, fast bad credit loan provider that matches borrowers with willing lenders to fund loans for personal and small business purposes. These bad credit loans have fast approval as applications are done completely online.

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3. PenFed Credit Union

Does not charge origination fees

Assistance for financial hardships

Available for a wide variety of purposes

Best Bad Credit Unsecured Loans With Guaranteed Approval For Military

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PenFed Credit Union offers guaranteed loans for bad credit to military and non-military affiliated applicants who are members of their credit union. The loan amount ranges from $500 to $20,000 with no collaterals required for a maximum of 60 months.

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4. Sofi

No collateral

Sofi membership perks

Unemployment protection

Best Bad Credit Personal Loans With Guaranteed Approval And Unemployment Protection

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Sofi offers loans ranging from $5,000 to $100,000 for various purposes. Sofi does not charge prepayment penalties, origination fees, requires no collateral, and further has an unemployment protection program.

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5. MoneyLion

No collateral

No prepayment penalties

Available for those with low credit scores

Best Bad Credit Loans With Guaranteed Approval Online For Low Credit Score borrowers

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MoneyLion loans can be procured for different purposes from personal needs to debt consolidation. The company grants bad credit loans with guaranteed approval that cater to employed borrowers with low credit ratings. MoneyLion also does not require any collateral as security and does not charge prepayment penalties.

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6. FaaastCash

Very fast approval

No credit score checks

No stringent requirements

Best Payday Loans For Bad Credit With Guaranteed Approval

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FaaastCash is a platform that matches borrowers with lenders for short-term loans. Application is very easy as the entire process can be completed in a few minutes, while funding is available the next business day for approved applicants.

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Funding Time

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7. BestEgg

Easy application

No prepayment penalties, no collateral

Borrowers can choose from several lenders

Best Low Credit Loans With Guaranteed Approval

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Best Egg offers poor credit loans with guaranteed approval that let borrowers choose lenders that match their requirements. Borrowers can loan from $2,000 to $35,000, but exceptional individuals with excellent records are eligible for $100,000. Applications take only a few minutes, and funds can be received within 1 business day.

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How we created this list - Our Methodology

For this bad credit loans with instant approval comparison, we’ve considered the most important things that matter to borrowers.

Application process – we’ve looked into the application process and the requirements such as credit scores, verification methods, employment, and other qualification measures.

Fees – we’ve considered the fees associated with the loans such as prepayment fees, origination fees, late penalties, processing, and other similar charges.

Interest charges – we’ve broken down each of the institution’s annual percentage rate (APR) rates from its lowest to the highest.

Repayment terms – the length of the period for the loan has also been considered.

Funding time – we’ve taken note of the time it takes for the funds to be acquired from the moment applications are approved.

At a Glance

  • No origination fees
  • Satisfaction guarantee programs
  • Available for a wide variety of purpose
  • Several years of credit history required
  • Not available for business loans
  • Only fixed-rate loans available

LightStream offers personal guaranteed loans for bad credit for nearly any purpose. If you need financing for debt consolidation, a new car, kitchen renovation, boat repairs, medical bills, IVF/fertility treatment, or even weddings, LightStream can lend between $5,000 and $100,000.

Loan terms are typically between 24 and 72 months. If you’re borrowing for home improvement purposes with a minimum amount of $25,000, the loan period can stretch for up to 12 years. Although LightStream does not offer any variable-rate options, interest rates start at around 5% with an autopay discount. They also do not charge an origination fee. This bad credit loan with fast funding can be received with same-day approval.

Borrowers, however, must have a credit score of at least 660 to qualify. Other considerations include at least 5 years of credit history such as car loans, credit cards, or mortgages. Borrowers must also have minimal to no record of delinquencies, and a stable income that is enough to cover new and existing loans. If the borrower does not fully meet the requirements to qualify, a co-signer may be added as a guarantor. The loan purpose may vary as long as it’s for personal use, as LightStream does not offer business or commercial loans.

LightStream has a good satisfaction guarantee program which gives back $100 to unhappy customers who’ve had their loans for less than 30 days. All customers have to do is answer a service-improvement survey within the given period. Also, LightStream will beat any competitor’s rate by one-tenth of a percentage upon proof of loan approval for the same loan scheme.

APR 5.95% (with autopay)
Loan Amounts $5,000—$100,000
Repayment Terms 24 to 72 months
Income Required Not disclosed
Funding Time Same-day funding available

At a Glance

  • No prepayment penalties
  • Quick application turnaround time
  • Available for a wide variety of purposes
  • Not available for post-secondary educational purposes
  • Charges for origination fees
  • Penalty for late payments

Prosper is a peer-to-peer lending platform that connects borrowers to lenders. The company grants guaranteed loans for bad credit for a variety of personal purposes, including for homes, cars, medical, leisure, or debt consolidation. The company also caters to small businesses. The only exempted purpose is for post-secondary education or college loans such as tuition fees, books, boarding, and other university or vocational education-related expenses.

Borrowers can easily apply for a loan online. If all requirements are met, application and approval are a matter of minutes. Unless there are verification or requirements issues, approved applications can be funded the same day. Prosper accepts applicants with a credit score of as low as 640 as long as there are no bankruptcies filed in the last 12 months in credit reports. Loans are unsecured so borrowers don’t have to mortgage any property; however, missed payments will result in bad credit standing.

Prosper offers loans of as little as $2,000 and as high as $35,000 with terms from 36 to 60 months. Interest rates are fixed and range from 6.95% to 35.99%, depending on the loan and the borrower’s credit score. Prosper also charges an origination fee of 2.41% to 5%. All payments are settled by autopay, with a penalty of $15 for late payments exceeding 15 days.

Although Prosper charges penalties for lapses, they also give borrowers more flexibility in repayments. Borrowers can pay off their loans in advance either by completely settling the entire amount, or adding top-ups to monthly payments. Prosper charges no penalties for these, allowing borrowers to save on interest charges and settle loans ahead of time.

APR 6.95% to 35.99%
Loan Amounts $2,000—$40,000
Repayment Terms 36—60 months
Income Required Greater than 0
Funding Time Same-day funding available

At a Glance

  • Does not charge origination fees
  • Assistance for financial hardships
  • Available for a wide variety of purposes
  • No prepayment penalties
  • Max limit is only $20,000
  • Only 60 months maximum term
  • The borrower must be a PenFed Credit Union member
  • Subject to hard credit check

PenFed Credit Union is a financial institution that caters especially to those affiliated with the US Military and their family members who are part of the PenFed Credit Union. Non-military affiliated personnel may also qualify to apply under certain circumstances. Borrowers can secure a loan for as little as $500 and much as $20,000 for a variety of personal purposes which can range from housing needs to life events.

PenFed’s lowest annual percentage rate (APR) is 6.49% and can be availed by borrowers with an excellent credit standing. The highest rate goes to 17.99%. While there is no exact cut-off score to qualify for a loan, applicants must at least be somewhere around the mid-600s to be considered. No property mortgage is necessary to apply as the loans are unsecured.

Loan terms are available for 6 to 60 months. Applicants will also have to submit a full application subject to a hard credit check. Once approved, funds may be received as early as the next day.

These fast bad credit loans with guaranteed approval do not have any origination fees and other hidden charges. In case borrowers have enough money to pay extra or in full ahead of time, PenFed does not have any prepayment penalties making paying off debt possibly quicker. PenFed also offers assistance to borrowers during sudden financial hardships. In case of disaster, disability, job loss, or even divorce, PenFed borrowers may avail of modified payment schemes such as deferments, delays, restructuring, or other modifications to the loan agreement.

APR 6.49% to 17.99%
Loan Amounts $5,000—$20,000
Repayment Terms 6 to 60 months
Income Required Not disclosed
Funding Time Next business day

At a Glance

  • No collateral
  • No origination fees
  • Sofi membership perks
  • No prepayment penalties
  • Available for a wide variety of purposes
  • Unemployment protection
  • Set income requirements
  • Subject to hard verifications
  • Takes several days to fund

Sofi offers loans for a variety of purposes, from personal needs to debt consolidation. The loanable amount starts at $5,000 and can go as high as $100,000. Loans are subjected to a fixed APR of 5.99% for those with high to excellent credit scores. For those with lower credit ratings, the highest APR that can be applied is 18.83%. An autopay discount of .25% is also available.

The loan term can stretch from 2 to 7 years and is available to those with a minimum credit score of 670. Applicants are subjected to both a soft and hard credit check and must have a gross income of $50,000. Aside from this, they also require a monthly disposable income threshold of $2,500 after all bills have been settled. Sofi does not charge origination and late payment fees, nor does it require any collateral. If borrowers would like to pay in full ahead of time or shorten the payment period, Sofi will not charge any prepayment fees. Applying for a loan can be done fully online, and once approved, funds can be received typically within 3 business days.

As for further convenience, Sofi has a mobile app that lets you check your balances, as well as apply and pay for loans. In case the borrower suddenly loses a job for reasons not being their fault, Sofi’s unemployment protection offers a forbearance of up to 3 months.

Upon approval, borrowers automatically become part of the Sofi Membership pool and as such are entitled to special benefits such as access to exclusive events and free personalized financial planning services.

APR 5.99% to 18.83%
Loan Amounts $5,000—$100,000
Repayment Terms Up to 60 months
Income Required $50,000 annual
Funding Time 3 to 7 days

At a Glance

  • No prepayment penalties
  • No collateral
  • Available for those with low credit scores
  • Charges origination fees
  • Penalty for late payments
  • Takes several days to fund

MoneyLion is a financial technology company engaged in providing personal loans for different purposes, such as home renovations, debt consolidation, car repairs, emergency expenses, etc.

APR starts at 5.99% for borrowers at the higher end of credit ratings. The highest interest rate offered by MoneyLion is 29.99%. MoneyLion is great for those who do not have a good credit rating as the minimum credit score to be eligible for a loan is as low as 560. Applicants must also be employed and have a minimum income threshold of $36,000 per year. MoneyLion does not require any collateral for personal loans.

The maximum amount you can borrow is $1,000 with a period ranging from 1 to 36 months. MoneyLion charges an origination fee of up to 6%, depending on the application and documents submitted. A $25 late payment fee is also charged if borrowers are not able to make payments 15 days after the due date. Should borrowers wish to settle the full amount earlier, or increase the monthly payments to reduce the paying period, MoneyLion does not charge prepayment fees.

Applying can be done online, with results having a turnaround time of 24 hours. In case an applicant gets approved and decides to push through with the loan, funding typically takes about 3 business days.

APR 5.99% to 29.99%
Loan Amounts Up to $1,000
Repayment Terms Up to 36 months
Income Required $36,000 annual
Funding Time 3  days

At a Glance

  • Very fast approval
  • No credit score checks
  • 24/7 customer service hotline
  • No stringent requirements
  • Very short term duration
  • High interest rates
  • Low loanable amount

FaaastCash’s payday loans are the fastest solution to immediate financial needs. The company offers quick and small loans from $500 to $1,000. The term duration is from 2 weeks to 1 month, typically landing on the borrower’s payday.

FaaastCash connects borrowers to lenders who match the borrower’s criteria according to information submitted upon application. FaaastCash is not a lender, but rather, a platform for both borrowers and lenders. Aside from connecting the two parties, FaaastCash has no further involvement. Any agreement and transactions between the borrower and the lender are solely between the two parties only,

APR can go from 200% to as high as 1,386%, depending on the actual lender. FaaastCash does not check credit scores, making these highly favorable for those looking for poor credit loans with guaranteed approval. The only financial requirements for eligibility are having at least 3 months of employment with a minimum of $1,000 monthly salary.  FaaastCash also has a 24/7 customer service hotline that caters to queries for new applications.

Applications are all done online of which screening and approvals take roughly around just 3 minutes. Once approved, funds can be sent directly via bank transfer within 1 business day. For even faster and more convenient transactions, borrowers can use FaaastCash’s mobile app to get matched to its pool of lenders. The fast turnaround time makes these a good option if you’re looking for emergency bad credit loans with guaranteed approval.

APR 200% to 1,386%%
Loan Amounts $500 to $1,000
Repayment Terms 2 weeks to 1 month
Income Required $1,000/month
Funding Time Next banking day

At a Glance

  • No collateral
  • Easy application
  • No prepayment penalties
  • Borrowers can choose from several lenders
  • Charges origination fees
  • Penalty for late payments
  • Penalty for returned payments

Best Egg is an online digital lender that takes qualified loan applications and matches them with a pool of prospective lenders. Borrowers meanwhile can choose from several niche lenders.

Loan amounts range from $2,000 to $35,000. In cases when borrowers can demonstrate excellent credit history and high credit scores, the maximum loanable amount can be as high as $100,000. Rates are fixed, with the lowest pegged at 5.99% and the highest at 29.99%. Best Egg does not require any collateral as security for loans. Loan terms are from 26 to 60 months, of which borrowers may pay in advance without being charged with prepayment fees.

Best Egg accepts applicants with a credit score of 640 and above. The minimum length of credit history is 3 years, and borrowers must have an annual income threshold of at least $50,000. Best Egg charges borrowers with other fees including an origination fee that ranges from .99% to 5.99%. A $15 late payment fee is also charged if payments are made after 3 days after the due date. If you’re not using autopay, there’s also a $7 processing fee. Another $15 is charged for unfunded accounts or other cases where payments are returned.

Application is quick as Best Egg allows preapproval with soft credit checks for verifications which can be completed within minutes. After approval, funds can be transferred within 1 business day.

APR 5.99% to 29.99%
Loan Amounts $2,000 to $35,000
Repayment Terms 26 to 60 months
Income Required $50,000 annual
Funding Time 1  business day

2020’s Bad Credit Loan Companies With Guaranteed Approval - At A Glance

LightStream — best bad credit loans with instant approval for long term borrowing

Prosper — best turnaround time for poor credit loans with guaranteed approval

PenFed Credit Union — best bad credit unsecured loans with guaranteed approval for military

Sofi — best bad credit personal loans with guaranteed approval and unemployment protection

MoneyLion — best bad credit loans with guaranteed approval online for low credit score borrowers

FaaastCash — best payday loans for bad credit with guaranteed approval

Best Egg — best low credit loans with guaranteed approval

Types Of Bad Credit Loans With Guaranteed Approval

If you have a bad credit score, here are the types of poor credit loans with guaranteed approval you can still apply for:

Personal Loans for Bad Credit with Guaranteed Approval

  • These poor credit loans with guaranteed approval are cash loans that can be taken for personal needs such as car repairs, home renovations, emergency expenses, and other similar purposes. These loans are for people who need quick cash for both planned and unplanned expenses.

Credit Cards for Bad Credit with Guaranteed Approval

  • Some credit card companies issue credit cards to individuals with poor credit scores. These credit cards come in handy for those who need to make regular purchases but do not have immediate access to cash.

Bad Credit Installment Loans with Guaranteed Approval

  • Also called “personal installment loans”, these are fairly easy to acquire. Personal installment loans are a good option for borrowers who need cash fast and want to fulfill their obligations through regular payments.

Mortgage Loans for Bad Credit with Guaranteed Approval

Mortgage loans need collateral in exchange for financing. Borrowers typically mortgage property they already own, or the financed property to financial institutions to acquire a loan. This is a great option especially for those who need huge amounts for purposes such as buying a house.

How To Choose Bad Credit Loan Lender

With so many bad credit loan lenders out there, choosing the right one can be a real ordeal. If you’re looking for the right lender, make sure to consider these important factors:

✔ Check out fees

Depending on the lender, there are also other fees charged aside from various types of interests. These include origination, processing, prepayment, closing fees, etc. Knowing what exactly the vendor/platform charges, will help you avoid unpleasant surprises.

✔ Look out for scams  

Some indicators of fishy bad credit loans with guaranteed approval include having no credit check requirements for prequalification, no registered physical address, unverifiable owners, no state registration, asking for cash up front, etc.

✔ Repayment options

Check if the financial institutions charge prepayment fees or not. There’s a huge advantage to having no prepayment fees as you can pay off your loans ahead of time at no cost. Paying ahead of time should allow you to save on interest for the unused period.

✔ Fixed or variable interest rate

Fixed interest rates are based on a predetermined value that does not change throughout the loan period. On the other hand, variable interest rates depend on certain economic factors so this may change from time to time.

✔ Penalties

Some companies are very particular about deadlines, and missing payments may result in extra fees. Make sure you know all about these charges and avoid them as much as you can. Usual penalties include late payment, prepayment, return fees, etc.

In Conclusion

Having access to cash is always important, but if you’re not lucky to have an ideal credit history, many banks and credit unions may not look favorably upon you. That’s why it’s important to know about bad credit lenders as well as the ins and outs of their loan deals so that you can choose the institution that would best suit your needs.

FAQ

To wrap it up completely, we’ve answered the most popular questions about loans with guaranteed approval for people with bad credit.

What is the lowest credit score to get a loan with guaranteed approval?

Some institutions give guaranteed loans for bad credit. Applicants with credit scores of 640 and below may still take out personal loans but with very high interest rates.

How to get a guaranteed loan with bad credit?

Look for a financial institution that specializes in giving bad credit loans with guaranteed approval. Aside from FICO scores, the loan officer also will also do background checks such as employment, tax documents, and personal identification so a clean record on those can compensate for low credit scores and increase personal loan eligibility.

What is the easiest loan to be approved for?

Payday loans are easily accessible personal loans for anyone even with a credit score under 550. In fact, most payday lenders do not even look at credit ratings at all.

Do I need to mortgage property to get a loan?

Loans can be unsecured or secured. In the first case, institutions will lend without asking for collateral as security.

Will I go to jail for not paying my loan?

Borrowers using bad credit loans with guaranteed approval cannot go to jail for being delinquent. However, this will definitely hurt their FICO score which will make access to future loans very difficult.