Lenders that provide online loans for bad credit with guaranteed approvals have flexible qualification requirements so those with bad credit history can get access to funds for emergency expenses.

While these loans usually come with high interest rates and fees, there are also a few potential benefits. They also report payments to the credit bureaus. If you make on-time payments, you can build a positive payment history over time and improve your credit score.

Read on to learn more about the pros and cons, things to consider before you apply for a guaranteed approval loan, and alternative options.

Can You Get an Online Loan With Bad Credit?

Yes, you can get a bad credit loan online if you work with the right lender. While most traditional banks are unlikely to approve loan applications from borrowers with poor credit (below 580), online lenders typically have less stringent qualification requirements.

It’s also important to note that there are no “guaranteed” approvals when it comes to loans. However, no credit check loans come close because your application is likely to get approved since the lender won’t conduct a credit check. The risk the lenders take comes at a price, though, so it’s important to consider the borrowing costs carefully.  

Top 5 Online Loans With Guaranteed Approval

We picked our top five bad credit online loans with guaranteed approval after carefully reviewing and comparing 15 lenders. Our recommendations are based on the following criteria:

  • Customer reviews
  • Lender reputation
  • Interest rates and fees
  • Ease of application
  • Accessibility
  • Eligibility requirements
OppLoansPossible FinanceFig LoansMoney KeyEarnIn
APR160%-179%150%-200%35.99%-211%291%-295%Fees up to $4.99
Loan Amounts$500-$4,000Up to $500$50-$500$200-$2500Up to $100/day and $750/ pay period
Repayment Terms9-18 months2 months1-10 months6-12 monthsNext paycheck

What Are Online Loans With Guaranteed Approval?

Online loans for bad credit with guaranteed approval are a type of personal loan designed for borrowers who can’t qualify for traditional loans. These are installment loans offered as a lump sum and repaid through fixed monthly installments.

It’s important to know that lenders can’t guarantee a loan approval, so the term can be misleading. However, some lenders extend loans without a credit check by considering other factors, such as your income and employment history, to determine your creditworthiness.

Since these unsecured loans for bad credit are risky for lenders, you’ll typically pay higher interest rates and fees.

Pros of Online Loans With Guaranteed Approval

  • Accessible to borrowers with bad credit scores
  • Flexible eligibility criteria
  • Lower rates compared to payday loans
  • Quick or instant approval and funding
  • On-time payments can help you improve your credit

Cons of Online Loans With Guaranteed Approval

  • High interest rates
  • May include fees like prepayment penalties and origination fees
  • Potential for predatory lending
  • Shorter loan terms

Online Loans vs. Traditional Loans

Online LoansTraditional Loans
Easier to compare options onlineNot as easy to compare lenders and loan terms
Approval decision may take minutesApproval can take three to four business days
Easier to qualify for Usually targeted to borrowers with good credit
Interest rates and fees can be expensiveLess expensive compared to online loans 

Online loans, whether they’re targeted toward borrowers with good or bad credit, make it easier to compare lenders within minutes. With the online application process, it’s also easier to apply for a loan, upload your documents, and get a decision within minutes. You can usually get loan funds in your bank account on the next business day after the approval process is completed.

While a growing number of traditional loans offer the option to apply online, you may have to apply in person in some cases. One key difference between the two is that online lenders typically have flexible lending requirements, so borrowers with a credit score of less than 579 may be able to qualify.

Traditional loans are usually targeted to borrowers with good credit, making them difficult to qualify for. However, they also cost less compared to online loans for bad credit with guaranteed approval.

What to Consider Before Applying

Before you apply for a bad credit personal loan, it’s important to keep a few things in mind.

Interest Rates

The interest rate you’ll pay on the loan will have a major impact on your ability to handle repayments. Compare the loan rates offered by at least three lenders and see how they impact your monthly payments to ensure you’ll be able to afford them.

For example, if you borrow $1,000 for a 12-month term with a 10% interest rate, your monthly payments will be $87.92. If you borrow the same amount at an interest rate of 25.99%, your monthly installment will be $95.53. 

Repayment Terms

The repayment term of the loan will also have a significant impact on the total loan cost. For example, your monthly installments will be lower with a longer loan term, but you’ll also pay more in interest over the life of the loan.

Lender Credibility

Before you sign the loan agreement, be sure to check the company’s customer reviews online. This will give you a better idea about the lender’s reputation, their customer service, and the products they offer. Work with a credible, trustworthy lender to avoid problems later.

Teresa Dodson, a debt expert and the founder of Greenbacks Consulting, cautions consumers against using guaranteed approval loans without truly weighing the costs. “These loans are not ideal. The interest rates are extremely high and tend to put you in a worse place than when you started,” Dodson shares. 

How To Qualify and Get Approved 

While most lenders offering online loans for bad credit with guaranteed approval have lenient eligibility requirements, they’ll still look at factors other than your credit score to evaluate your application.

Here are a few tips on how to improve  your chances of getting approved:

  • Lenders will look at your employment history and will prefer borrowers with a stable source of income. Be sure to have a stable job before applying for a loan.
  • Pay down your debts and credit cards to improve your debt-to-income ratio.
  • If you can wait, improve your credit score before applying for a loan.
  • Get pre-qualified with a few lenders to see the potential rates you qualify for.
  • Apply with a co-signer to improve the odds of approval.

Alternatives to Online Loans With Guaranteed Approval

Ultimately, the decision to approve a loan rests with the lender. However, there are a few other loan options you can qualify for, even with bad credit, depending on your financial situation.

Payday Loans

Payday loans are short-term loans for bad credit borrowers who need cash quickly for unexpected expenses. You’ll typically need to repay the loan on your next payday. 

These loans are easy to qualify for, and the loan amounts are usually small. However, payday lenders may charge as much as 400% APR on the amount you borrow. The shorter repayment term also makes it harder to repay.

Installment Loans

Installment loans are personal loans that you can repay through regular installments over a predetermined loan term. These personal loans for bad credit are typically cheaper than payday loans and have flexible repayment terms, so they’re a better option.

Carefully compare the repayment period and interest rates on different loan offers before you choose a loan that suits your needs. If possible, pre-qualify for a personal loan with multiple lenders to find the best loan.

Tribal Loans

Tribal loans are short-term, small loans offered by loan lenders that claim immunity from lending regulations through association or ownership by a Native American tribe. These loans usually come with massive interest rates, provide quick funding, and are easy to qualify for because there usually isn’t a credit check.

You’ll typically only need to show you have a source of income to qualify for a tribal loan. Like payday loans, tribal loans are also very expensive, and it’s best to avoid them.

Improve Your Credit Score To Increase Your Chances of Approval

Online loans for bad credit with guaranteed approval can be a viable financial solution for borrowers who need quick cash but can’t access traditional lending products. However, be sure to understand the costs involved and the consequences of not repaying the loan.

If you can wait, improve your credit score before borrowing a loan to get access to competitive rates. Check your credit report for errors, pay down debts, and establish a positive payment history to rebuild your credit.