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Unsecured Loans for Bad Credit

People who are coping with bad credit know how difficult and frustrating it can be to get a "yes" from a lender. Moreover, the constant rejection can be humiliating and degrading for subprime borrowers. At Direct Lending Solutions, we list the best companies that will lend money in most states with bad credit allowed and at the lowest rates possible. Before you decide on the type of loan that you'd like to apply for online, it's crucial that you get the facts and research your borrowing options so you can make the best financial decision possible. When shopping for a direct loan, you'll discover quite a plethora, each with varying terms, conditions and interest rates. These factors will cumulatively determine your total expense during the life of the loan.

By definition, a loan is considered to be "unsecured" when it is not backed by personal property as collateral; rather, it is extended to you by the lender with just your signature on a promissory note to repay the money according to specific terms, rates, and a payment schedule. Keep in mind, when you need a loan quickly, cash advances are certainly convenient and easy to qualify for, but we caution that these loans come at a high cost with governing laws that vary from state to state. Although they do serve a valid purpose, they should be used sparingly or for emergencies. The small, short-term loans like the ones we've just described, typically range from $100 to $5,000. For larger amounts, lenders may require better credit scores and a proven ability to repay, such as verifiable employment and adequate income. Amounts above $10,000 will inevitably require "good" credit.

First Choice Loans to $35,000

First Choice connects you with the right online personal lender for your needs. The loan process is quick and simple, with fast online approval in most cases. You will be simultaneously considered for a payday loan alternative in the event that you do not qualify for longer repayment periods. To qualify for an unsecured loan of $10,000 or more, good or excellent credit may be required. Even if your credit score is poor, short-term cash loans are available.

  • Bad Credit OK
  • Nothing to Fax
  • Unsecured Installment Loans
  • Terms up to 60 months
  • Instant Decision
  • High Loan Approval Rate
  • Get Your Loan Within 24 Hours (Often Same Day)


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What Are the Credit Score Ranges?

If you find yourself in need of money fast and begin a search for a loan, it's crucial that you know how potential lenders will view your credit-worthiness. Your credit score is more than just a number: it's a reflection of your financial history and is an important factor in deciding whether you get approved for loans, credit cards, mortgages, and so much more. So why does it seem so tricky to understand what your credit score really means? To get a better idea of what that number tells a potential lender, let's explore the various credit score ranges. There are a few slightly different ways to model a credit score, but the FICO Score® is the most widely used, so we'll be taking a look at that.

Excellent Credit -- 800 to 850

If you've got a credit score of 800 or higher, then give yourself a pat on the back – your credit is excellent and you're sitting pretty in the top tier of borrowers. You'll have a strong chance of getting approval for the best loans, large lines of credit, and mortgages available from some of the top reputable lenders in the industry, each with competitive terms and low interest rates. People in this credit range usually have a long and (mostly) spotless credit history, with multiple lines of credit, a proven record of making payments on time, and few (if any) instances of accounts being sent to collections. Remember that it's entirely possible to raise your credit score over time, so don't worry if you don't yet fall into this range.

Very Good Credit -- 750 to 799

Individuals with credit scores in the 750-to-799 range are in pretty strong shape as well. There are probably only a couple of minor things separating these people from excellent credit - the occasional late payment here and there, or perhaps periodic gaps in employment history. Most lenders don't differentiate much between "excellent" and "very good" credit, so borrowers with a credit score in this range can expect similar options and treatment, more or less, as those with credit scores of 800 or more.

Good Credit -- 700 to 749

A "good" credit score will allow you to get approved for most of the credit lines and loans that you apply for, although you'll probably have to pay a slightly higher interest rate than those who fall into the higher categories. Your score might be reflective of a financial rough patch sometime in the past, or perhaps a recurring pattern of slightly late payments. In the end, a credit score in this range isn't likely to cause any serious problems. There's room for improvement, but you probably won't be seriously inconvenienced as a result of your score. It's when your credit falls even lower that you start to run into real issues.

Fair Credit -- 650 to 699

When your credit score falls below 700, potential lenders start to look critically at the details of your credit report. You'll still qualify for a reasonable number of loans, but it's unlikely that you'll get good rates, and you may even be asked for an early down payment. This is also where you might start to encounter problems landing work in fields that demand a lot of responsibility and a solid credit history, such as in the financial sector. Focus on reducing your debt and making payments on time, and you should be able to bump your credit score back up over the next several months.

Poor Credit -- 600 to 649

If your credit is in this range, it probably means you've had frequent or ongoing credit issues. Things like missing payments on credit cards and loans, having accounts sent to collections, or having to file bankruptcy are all possible causes. Getting a loan or new line of credit can be tricky in this situation, particularly from the more traditional lending institutions. You'll be at the mercy of the lender's terms, may need to make a substantial down payment or put up collateral, and may need to get someone else to co-sign as well. Expect to pay higher interest rates compared to your peers with better credit. A bad credit loan, such as the personal loan we offer through First Choice, may meet your needs.

Very Bad Credit -- 300 to 599

When your credit score falls below 600, you'll find it extremely difficult to get a loan from anyone other than online lenders who specialize in so-called "payday loans" (usually at ridiculously high interest rates that can trap you in a vicious borrowing cycle). Simply put, if your credit score falls in this range, you won't have many options for borrowing. And it's probably not a good idea to borrow more money at this point, anyway.

Is Having "No Credit" the Same as Having "Bad Credit"?

There are considerable differences between having bad credit and the mere lack of an established credit history. Many young people who are just starting out, for example, may not yet have a sufficient credit profile, and this is not the same as earning a lengthy, bad-credit profile marred by poor debt management, late payments, collections, and excessive spending accounts. Your credit is scored by the credit bureaus based on account handling. Theoretically, a person with a newly established credit history and only one or two accounts contained in the credit profile could have a "good" score. However, the folks who lend the money typically look at more than just your credit rating. They will see additional information, such as the length of time since credit was first established in your name, for instance, and may reject your application for a large loan amount until you have gained more credit experience. This situation is called "insufficient credit" and this condition may exist simultaneously with a good credit score (i.e., you can have a high credit score and still have insufficient credit for the purposes of a particular credit application.)

Granted, the outcome of a loan application submitted by someone who does not have a sufficient credit history can be the same as that for a bad credit line. However, the processes to remedy the two are entirely different. The person with a bad credit history has their work cut out for them; they must change their spending and repayment habits, bring down their debt ratio, and improve their overall handling of accounts. It can take a very long time for changes in spending and account management to have a positive impact on a credit score. On the other hand, the young person who is simply lacking a credit history can take steps to create a positive credit profile, such as obtaining a small loan, or a low-limit unsecured or secured credit card.

A lender will often work with those who are just starting out to help them obtain a reasonable line of credit within their budget, enabling them to establish a credit file. If you find yourself in this camp, take care of your accounts from the beginning; you don't want to go from "no credit" to "bad credit" because you made some careless errors from day one with the handling of your new credit card or loan account. Above all, keep your spending under control. The ideal credit utilization ratio (the ratio of your used credit to the total available) should be 30% or less. If you find yourself maxing out your cards and making late payments, your credit score will suffer and you will not be able to purchase the larger items that really matter.

Common Loan Questions

How fast will my loan be processed?

Typically, your online loan application will be processed same day, with instant approval at the time you apply.

Will my loan request affect my credit score?

Since we list loans online for all credit types, there is typically no credit check when you apply for smaller monetary amounts. A soft credit inquiry may be necessary to verify your identity, but this will not cause further damage to your credit score. A verifiable means of loan repayment is required.

Is the loan form secure?

Yes. Our loan application is secured by 256-bit SSL encryption.

Can I get my loan the same day?

After your loan is approved, you will typically receive the money directly into your bank account within a matter of hours. This varies, of course, depending on the time of day that your loan application is submitted to the lender. If you submit during the evening, for example, after the banks have closed, you will receive your cash the next day (within 24 hours).

Are there any upfront fees for the loan?

Applying for a loan is free of charge and there are no upfront fees. Remember, legitimate lenders never charge fees in advance of a loan.

What is the interest rate on the loan?

At competitive rates, a typical installment loan APR will range from 6.50% to 39.99%, depending on the lender and your credit score. Following quick approval, your lender will review the interest rate with you in detail. If your credit is bad, your interest rate may be proportionally higher.

Beware of Loan Scams

Protect yourself and your finances from fake lenders and low-life scammers. Make sure to read up on scam techniques, such as their use of legitimate company names and logos, stolen from real loan companies, in order to hide their illegal operation. Educate yourself about foreclosure fraud, advance fee loan scams, and identity theft, so you'll be better able to recognize red flags when you see them. You will be able to fend off the bad guys who take advantage of the desperate and vulnerable.