Writer: Eric Bank
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
Key Takeaways
I reviewed these lending networks to help borrowers with bad credit explore payday loans and personal loan alternatives. These are my top picks:
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24/7 Lending Group: Best for employed borrowers exploring payday and personal loan options.
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MoneyMutual: Best for finding payday and other short-term loan options through one online request.
Online payday loans for bad credit can help cover an urgent expense before your next paycheck, but their short repayment deadlines and high costs make it important to compare your options.
The online lending networks reviewed here let you explore payday loans and personal loan alternatives from home. We explain how they work, what lenders may require, and what to check before accepting an offer.
Best Overall | Short-Term Loans | FAQs
Best Overall Online Payday Loan
24/7 Lending Group is our top pick for employed borrowers exploring online payday loans and personal loan alternatives. The service connects you with lending partners rather than issuing loans itself. Its online request lets you check potential options without affecting your credit score.
- Personal loans from $500 to $35,000
- All credit types are considered and welcome
- Simple, no credit impact form
- Helping consumers since 2001
- 4.7 out of 5 Trustpilot rating with 2,000+ reviews!
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $35,000 | 5.99% – 35.99% | 60 Days to 72 Months | See representative example |
24/7 Lending Group gives you a starting point for finding emergency funding without applying separately to multiple lenders. Depending on the offer, you may need to repay the balance on your next payday or spread payments over time. Review the lender’s fees, due dates, and total repayment amount before deciding which option fits your budget.
More Online Payday Loans and Alternatives to Consider
These online networks provide additional ways to explore emergency funding with bad credit. Some focus on personal loans with installment payments, giving you alternatives to a loan due in full on your next payday. Compare the repayment schedule and total cost of any offer before choosing.
2. MoneyMutual
- Short-term loans up to $5,000
- Online marketplace of lenders
- Funds available in as few as 24 hours
- Simple online form takes less than 5 minutes
- Trusted by more than 2 million customers
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $5,000 | Varies | Varies | See representative example |
MoneyMutual connects borrowers with a network of lenders offering payday and other short-term loans. Its brief online request makes it convenient to explore funding when an unexpected expense can’t wait until your next paycheck. Available loan types and repayment terms depend on the lender, so check whether an offer requires one lump-sum payment or a series of payments.
- Loans from $250 to $35,000
- Large lender network
- Fast loan decision
- Use the loan for any purpose
- Funding as soon as one business day, if approved
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $250 to $35,000 | 5.99% – 35.99% | 3 to 72 Months | See representative example |
PersonalLoans.com, based in Roosevelt, Utah, is a good alternative to payday lenders that charge much more for their loans. To prequalify, you must be a U.S. resident, at least 18 years old, with a monthly income of $500+ and an active bank account in your name. In addition to loans, you may be presented with a variety of services, including debt relief, credit repair, and credit monitoring.
- Small personal loans starting at $100
- Receive an approval decision in as little as 2 minutes
- Funds can be deposited into your account in one business day and used for any purpose
- No hidden fees
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $100 to $20,000 | Varies | Varies | See representative example |
SmartAdvances.com accepts requests for smaller loan amounts, making it an option when a utility bill, car repair, or other immediate expense has you considering payday borrowing. Its online form helps connect you with a lending partner without visiting a storefront. Focus your request on the amount you need, then review the lender’s payment schedule and fees to see how repayment would fit into your budget.
5. CashUSA.com
- Loans from $500 to $10,000
- Receive a loan decision in minutes
- Get funds directly to your bank account
- Use the loan for any purpose
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% – 35.99% | 3 to 72 Months | See representative example |
CashUSA.com, headquartered in Las Vegas, specializes in arranging personal loans for consumers with bad credit — no minimum credit score is required. To prequalify, you must be a U.S. citizen or permanent resident, at least 18 years old, with a monthly pre-tax income of at least $1,000. You also must have a valid checking account, phone number, and email address.
- Personal loans of up to $50,000
- All credit types welcome
- Receive funds in as little as 24 hours
- Fast approval decision
- Safe and secure application
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $50,000 | As low as 6.40% | Varies | See representative example |
Loan for Personal can help you explore emergency borrowing when bad credit makes it difficult to know where to apply. Its initial request uses a soft credit inquiry, so you can check potential options without affecting your score. If you receive an offer, the lender will provide the terms and next steps. This gives you an opportunity to consider another borrowing option before committing to a payday loan.
- Loans from $500 to $10,000
- Get connected with a lender
- Simple form & quick funding
- Get your money as soon as the next business day, if approved
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% – 35.99% | 3 to 60 Months | See representative example |
BadCreditLoans.com in Tacoma, Washington, helps you arrange personal loans that you repay in installments, even if you have bad credit. To prequalify, you must be a U.S. citizen or resident, 18 or older, with regular income, a bank account, a phone number, and a valid email address. One interesting alternative you can request is a line of credit where you control the loan amounts and timing of the money you borrow.
What Is a Payday Loan?
Also known as a paycheck advance, a payday loan is a short-term bad credit loan that is meant to help the borrower get through to the next payday. This is really an emergency loan that requires a prompt, lump-sum repayment by the agreed due date, which is tied to the borrower’s pay schedule. Failure to repay the emergency loan on time triggers penalty fees and additional interest.
On the plus side, payday loans do not require a credit check — rather, you must document your regular income from employment, benefits, or some other source. A reputable lender may want to look at your pay stubs, banking records, and perhaps your monthly bills to ensure you can repay the loan on time.
The snag with payday loans is their high APRs — often in the range of 200% to 2,000+%. The loans also carry high fees for late payments and for loan rollovers, which are extensions of the due date accompanied by additional fees and interest.
The justification for payday loans — the high APRs are usually applied to small loan amounts borrowed for short periods of time — reflects an ideal situation that often is not true. The nightmare scenario is that a borrower cannot meet the initial repayment deadline and repeatedly rolls the loan over, falling further behind each time as fees and interest costs mount.
This can precipitate the dreaded debt spiral, potentially ending in bankruptcy proceedings.
Payday loans are available either online or from brick-and-mortar stores found in many neighborhoods across the country. You can get your money quickly at a local store, often within half an hour, whereas online payday loans are usually available through direct deposit to your checking account the next business day.
Several states set maximum APRs or limit the number of rollovers on payday loans. Other states, like Texas, take a hands-off approach to payday loans. Some states prohibit payday loans entirely.
An online short-term personal loan is a popular alternative to payday loans. These are loans that you repay in monthly installments rather than in one lump sum. Online personal loans are attractive because they usually cost much less, report your payments to the credit bureaus, and feature more affordable payments.
24/7 Lending Group and MoneyMutual can help you explore payday loans and other borrowing options. The other networks reviewed here focus on personal loan alternatives that you repay in installments.
How Do I Apply For a Payday Loan Online?
The lending networks we looked at have very similar application processes, whether you’re seeking a payday loan or a short-term personal loan. These companies don’t lend money themselves; instead, they connect you with a lender ready to work with you. Each network includes private lenders, banks, and other funding sources familiar with helping borrowers with bad credit scores.
The first step is to prequalify for a loan by filling out an online request form. This step does not require a hard pull of your credit, so your credit score will not be affected. If you satisfy the lending service’s minimum requirements, your request will be sent to the network as a whole or to certain lenders that the service feels best match your needs.
If you decide to move forward, you’ll finish the application by providing any extra details the lender asks for. At that stage, the lender will likely run a hard inquiry on your credit report, which may cause a small temporary dip in your score. The lender may then present a loan offer with a specific amount and repayment terms.
Read all the lender disclosures before agreeing to a loan, which you consent to by e-signing the loan agreement. Expect the loan proceeds to be deposited into your bank account in the next one to two business days.
In some cases, the lending service won’t be able to match you to a direct lender. In that case, you may receive links for other credit services, such as debt relief or consolidation. The lending services are free — they make their money by getting an origination fee for loans completed on their networks.
What Are the Qualifications to Get a Payday Loan?
The online lending services reviewed here can prequalify you for a loan, but the actual lender is responsible for making the final determination. Generally, prequalification requires you to:
- Be at least 18 years of age, although some states may require you to reach age 19.
- Be a U.S. citizen or permanent resident.
- Have a current job with a specified after-tax monthly income. You may also prequalify if your income derives from benefits or some other reliable source.
- Allow for verification of your employment.
- Have a valid checking account in your name.
- Have a valid telephone number.
- Have a valid email address.
The details you need to provide can vary from one lender to another. Some lending services may ask for your Social Security number, while others may want information about your monthly housing costs and current debts.
Where Can I Borrow $1,000 With Bad Credit?
A loan of $1,000 is not a huge amount to borrow, but it is sizable enough that it may not be readily forthcoming from family or friends. Fortunately, several alternatives are available to you despite your bad credit score:
- Online payday or personal loans: All the lending services reviewed here can provide one or the other. You can prequalify for one or more of these services without cost, commitment, or damage to your credit score. A $1,000 loan is within the range available from these networks.
- Local payday loan stores: You may be able to borrow $1,000 from a local payday loan store if you can prove sufficient income and the ability to repay on time. Beware of the high annual percentage rate and origination fee associated with storefront payday lenders and the danger of falling into a debt spiral that will spell disaster for your finances.
- Pawnshop: You would need to pawn an item worth at least $3,000 to get a $1,000 pawn loan for 30, 60, or 90 days — an amount higher than some pawnshops will entertain. Expect to pay monthly interest rates of 2% to 12% on top of fees ranging from 5% to 20% per month. We don’t recommend this alternative because of the high cost and the loss you’ll take if you can’t reclaim the pawned item.
- Credit card cash advance loan: Many credit cards offer cash advances, but it may be hard to get a $1,000 cash advance loan on a card designed for consumers with bad credit unless it’s a secured loan (from a secured card). Typically, these kinds of cards have starting credit limits below $500 and frequently limit cash advances to about one-third of the credit limit unless it’s a secured loan. APRs for bad-credit cash advances will probably be in the 29.99% to 35.99% range.
- Garage sale: Selling items you own may make more sense than attempting to get a loan, especially if your credit is bad. A garage sale or consignment shop may prove useful, as may various internet selling websites where you can list your item, post its price, and sell to the highest bidder.
- Credit union PALs: You can get a Payday Alternative Loan from many federal credit unions in amounts as high as $1,000. You repay these in one to six installments. They charge low fees and reasonable APRs, and you can get up to three PALs in a six-month period as long as there is no loan term overlap.
- Cash-out refinancing: If you have at least $1,000 of equity in your home or car, consider a home equity loan or refinancing a car loan, respectively, as sources for low-cost loans. The home equity loan can take the form of a lump-sum installment loan or a home equity line of credit. A refinancing car loan pays off your current car loan and replaces it with a larger loan that includes a refund of some of your equity.
At least three of the above options won’t require a credit check for approval.
What Is the Easiest Payday Loan to Get Online?
The easiest payday loan to qualify for depends on your income and the lender’s requirements. My first recommendation is 24/7 Lending Group, which helps employed borrowers explore payday and personal loan options through a straightforward online request.
MoneyMutual is another option for finding payday and other short-term loans. Both services connect you with lending partners, which determine eligibility, costs, and repayment terms.
- Personal loans from $500 to $35,000
- All credit types are considered and welcome
- Simple, no credit impact form
- Helping consumers since 2001
- 4.7 out of 5 Trustpilot rating with 2,000+ reviews!
- See official site, terms, and details.
- Short-term loans up to $5,000
- Online marketplace of lenders
- Funds available in as few as 24 hours
- Simple online form takes less than 5 minutes
- Trusted by more than 2 million customers
- See official site, terms, and details.
The other lending networks in this review provide additional personal loan options that you can repay in installments. These also have a simple application process, and applying online lets you explore your options without visiting a storefront.
Compare any offer’s fees, total repayment amount, and payment schedule before accepting. An installment loan may give you more time to repay, but borrowing online doesn’t automatically mean lower costs.
How Can I Get a Loan With No Credit Check?
Any of the lenders in this review will prequalify you for a loan without a hard credit check. That sounds pretty good, but bear in mind:
- Prequalification usually involves a soft credit check and does not guarantee that you will be offered a loan or that you’ll receive loan approval.
- When a lending service forwards you to a direct lender, you should expect the lender to do a hard credit check, but only if you go ahead and apply for a short-term personal loan.
Payday lenders don’t perform hard credit checks because they rely on your employment information to approve your loan request. While that makes payday loans relatively easy to obtain, it also means that they don’t report your payments to any credit bureau. Without credit bureau reporting, you don’t get the benefit of higher credit scores when you repay your loan on time.
In addition, when you use a lender that doesn’t perform hard inquiries, it assumes that you have bad or no credit and charges a higher interest rate accordingly. You are considered a credit risk, and the high APRs charged by payday lenders help them absorb the losses when a borrower defaults on a loan. Many experts argue that payday loans are ridiculously overpriced anyway, even when you take defaults into account.
A soft credit check is one that you either initiate yourself or is not used for opening a new credit account. It does no harm to your credit score.
A hard credit check is used when you apply for new credit. You must authorize hard credit checks in advance — if you examine the fine print, you’ll see that by applying for credit, you are explicitly authorizing the creditor to do a hard check.
Here is a summary of the hard and soft credit checks:
Inquiries, hard or soft, are handled by the three credit bureaus — Experian, Equifax, and TransUnion. They use the FICO scoring system to calculate your credit score, and hard inquiries account for 10% of your total score. Hard inquiries disappear from your credit report after two years, but their impact fades after the first year.
Some lenders explicitly advertise that they don’t do hard inquiries and instead rely on alternative ways to qualify your loan application. Don’t expect these loans to be cheap, as the lenders take for granted that there is something wrong with your credit that requires them to protect themselves from late payments and defaults.
The best way to work around hard credit checks is to improve your credit score, so the credit check will help you obtain the loan you want. You can take several steps to improve your score, including:
- Removing mistakes from your credit reports: Errors can creep into your credit reports that hurt your score. While you can try to repair these yourself, you may prefer to hire a credit repair company to do the hard work for you. These services usually charge between $50 and $150 per month, and subscriptions usually run for about six months.
- Pay your bills on time: Your credit history counts for 35% of your FICO score. Late payments, collections, defaults, repossessions, bankruptcies, and other derogatory events can hurt your credit score for up to 10 years. Pay on time, every time, and you should see your score improve within six months to one year.
- Keep your debt in check: Lenders look at your debt-to-income ratio when deciding whether to offer you a loan, and values above 36% usually result in declined applications. Your credit card debt is measured by your credit utilization ratio, which is the credit you use divided by the amount of credit available to you. A ratio above 30% will hurt your score, while ratios below 20% are helpful.
- Keep old accounts open: When you close credit accounts, you reduce your available credit, which may harm your credit utilization ratio. Longer credit histories are also helpful because they demonstrate that you have experience managing your finances.
- Refrain from applying for new credit: New credit applications account for 10% of your score. Too many applications within a six-month period can hurt your score.
- Expand your credit mix: When you do occasionally seek additional credit, look to expand the types you have. FICO awards 10% of its score on the basis of your credit mix, and the wider, the better.
When you improve your credit score, you give yourself access to loans with lower APRs and better terms. You may also qualify for stronger credit cards with valuable rewards and perks. Beyond borrowing, a solid credit history can make it easier to get a job, rent an apartment, and open a utility account.
What Are the Costs Of an Online Payday Loan?
Because they don’t check your credit, payday loans are not cheap. The following chart gives an example of just how much a no-credit-check loan may cost:
In this example, a payday loan requires you to repay 120% of your original loan amount in a two-week loan term. That works out to an APR above 500%, and we’ve seen examples as high as 2,000%!
This example doesn’t even account for the effect of rollovers. When you roll over your payday loan to the next pay cycle, you’ll be charged additional fees, and you’ll be paying interest on the interest charged in the previous period.
If you keep rolling over your payday loan, eventually you won’t be able to repay it, putting you on a path to bankruptcy.
By comparison, a bad credit personal loan can save you a lot of money. Normally, these loans have APRs that top out at 35.99%, although higher interest rates are possible. You do not typically roll over a personal loan, which you repay in monthly installments.
If you miss a bad credit personal loan payment, you’ll be charged a late fee and possibly higher interest. If you’ve already paid off a significant part of the loan, you may be able to refinance it with lower monthly payments.
Know What You’re Agreeing to Before Signing For an Online Payday Loan
Before agreeing to any online payday loans for bad credit, it’s critical that you understand all the details surrounding your obligations and the penalties you’ll encounter if you fail to meet those obligations.
Our summaries of recommended lending services are a good place to begin. You can perform further research by clicking on the Start Now link and reading the obligatory rates and terms disclosures of the lending service and the direct lender. You can prequalify for free and are under no obligation to accept an offer.
If you can manage it, seriously consider an alternative to a standard payday loan. A short-term personal loan with monthly installments will usually cost less in interest and spread repayment into smaller, easier-to-handle payments.
Payday loans are an expensive way to cover an emergency, so compare alternatives first. If you decide a payday loan fits your situation, start with 24/7 Lending Group or MoneyMutual to explore available options. Keep the amount borrowed low and choose a repayment schedule your budget can handle.
