Online Payday Loan Bad Credit: How to Get & Alternatives

Sometimes, there are situations when it is impossible to repay the installment loan on time. Late payments negatively affect credit history. Subsequently, banks refuse traditional loans to people with bad credit scores or charge high interest rates.

Best online payday loans California are an excellent solution in this case. Applying for an online bad credit loan is much easier than getting a 300 cash advance from a bank. You don’t have to leave your home and wait for loan approval at the office. The services are available around the clock. Credit checks are not strict.

However, when applying for a short term loan online, it is essential to consider the advantages and disadvantages of such products. The pros are:

  • Fast registration and receipt of funds for financial emergencies;
  • Issuance of money in a convenient way;
  • No need to collect a package of documents;
  • Possibility of improving a damaged credit;
  • Services are available 24/7.

The cons of using cash advance loans online include the following:

  • Increased interest;
  • Small loan amount;
  • Short repayment terms.

Read on and find out about the features of getting the best online payday loans for bad credit and their various alternatives.

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Best Emergency Payday Loans for Bad Credit 2024

Online Payday Loan Bad Credit

There are many direct lenders in today’s online lending market. Each of the lenders offers its own conditions for issuing short term loans. To make the right choice, you must study the highlights of at least several financial institutions in detail.

We have compiled a list of the best direct lenders that provide loans to people with low credit scores. Read the brief description of each company carefully and choose the lender with the most suitable conditions for you.


Upstart Loans

P2P platform Upstart was founded in 2012 by D. Giround, Paul Gu, and Anna M. Creditworthiness on this platform is determined by a number of factors beyond FICO scores, such as school, educational institutions, the field of study, and work experience.

Upstart provides personal loans from $1,000 to $50,000 with annual percentage rates (APRs) starting at 7.8%. There is an origination fee of 0%-12% and a variety of other commissions. The level of customer satisfaction with the services provided is relatively high.

This is primarily because the lender offers loans for almost any need (student loan repayment, car purchase, medical bills, business support, etc.). Loan terms are from 3 or 5 years. The minimum required credit score is 300.

Payday loan amounts are $100-$1,000. The company charges interest of $15-$20 for every $100 borrowed. Funds are transferred to borrowers quickly, often within one business day.

Eligibility criteria are simple and include the following:

  • Residence in the USA;
  • 18 years of age or older;
  • A valid email address;
  • A verifiable checking account.

Required documents: proof of income, proof of address, and a Social Security Number.

The benefits of Upstart in partnering with bad credit borrowers and providing fast financing. In addition, there is a convenient Upstart application that makes the debt management process as simple and convenient as possible.

The downside of the lender is that it charges various fees (origination fees, late fees, prepayment penalties, unsuccessful payment penalties, and paper copy fees).

Read More: Upstart Review



Upgrade is an American company that provides loan products for people with low credit scores. It was founded in 2016 and is headquartered in San Francisco, California. The lender has offices in Canada, Quebec, Montreal, Arizona, and Phoenix.

Upgrade installment loan amounts range from $1,000 to $50,000. Loan terms are 2-7 years. The annual percentage rate is 7.96%-35.97%. This is significantly lower than many other direct lenders offer. The origination fee ranges from 1.85% to 8.99%.

The company conducts a soft credit check. The minimum required credit score is 560. The company provides fast funding. One business day is enough to apply online and receive borrowed funds.

Upgrade also provides payday loans. Their amounts vary by state. The average payday loan amount available is $500. Interest rates often reach 400%. The repayment term is up to 31 days.

Upgrade requirements for borrowers are standard. It does not require many documents. You just need to live in a state of America where the company’s services are available, be at least 18 years old, and provide a valid email address and a bank account.

The advantage of Upgrade`s loan offer is that it provides fast short term financial support. All you have to do is fill out a simple online form and submit it for consideration. The disadvantage is the high interest rates on payday loans.

Read More: Upgrade Review


PersonalLoans - Offer Loans at Competitive Rates

This company was founded in 1998 and headquartered in Greater Houston, Southern US. It conducts a soft credit check and provides same day funding ranging from $1,000 to $35,000 for a variety of purposes (debt consolidation, family vacation, home improvement project, auto repair, medical expenses, etc.).

The minimum interest rate on personal loans is 5.99% and the maximum is 35.99%. Loan terms vary from 61 days to 96 months. A co signer is not required.

PersonalLoans also offers payday loans to its customers. Amounts range from $100 to $1,000. The average rates are 370%. The repayment term is up to 1 month. The minimum required credit score is 600.

To use the company’s financial services, you need to live in the United States, be of legal age, have an active checking account, and have an income of at least $ 2,000 per month.


Avant Loans

Avant is another financial institution that complies with state laws and therefore deserves trust. It was founded in 2012. The headquarters is located in Chicago, United States.

Avant customers can borrow $2,000-$35,000. APR is quite high. The minimum interest is 9.95% and the maximum is 35.99%. In addition, there is an administration fee of up to 4.75%. Installment loan terms vary from 12 to 60 months.

Avant conducts a hard credit check and requests information from credit bureaus. It prefers to cooperate with those who have fair credit and a credit score of 600-700. However, often people with poor credit scores (like 550) get approved.

The company offers payday loans. Their amount directly depends on the state. Interest rates are often 400%-420%. The loan repayment period is up to 31 days.

To partner with Avant, a potential borrower must provide proof of identity, proof of address, and proof of a regular monthly income of at least $1,200. The maximum debt-to-income ratio must be 70%. The lender does not provide emergency cash advances to applicants in active bankruptcy.

Rocket Loans

Rocket Loans

Rocket Loans is another company that offers the best loans to Americans for a variety of financial needs. These include unexpected expenses, debt consolidation, home improvement, small business development, auto expenses, etc.

The available loan amount ranges from $2,000 to $45,000. Loan terms range from 36 to 60 months. The annual percentage rate is 8.416%-29.99%. There are no hidden or origination fees. The minimum credit score required is 640.

The company also provides payday loans up to $1,000. APR is 390%. The repayment period is up to 31 days. The lender ensures fast financing. The money is credited to the borrower’s account within 1-3 business days after the approval of the loan application.

The two main requirements that Rocket Loans imposes on applicants are the age of 18 and residence in one of the US states.


Lending Point Loans

LendingPoint is a trusted provider of unsecured personal loans for potential borrowers across the entire credit spectrum. The company was founded in 2014. The headquarters is located in Kennesaw, U.S.

The installment loan amount available to LendingPoint consumers varies between $2,000 and $36,500. The maximum amount you can borrow depends on several factors, primarily your credit score and debt-to-income ratio. APR is 7.99%-35.99%.

The repayment term is from 24 to 72 months. The minimum credit score required is 620. Borrowers are not allowed to have a co signer or co borrower.

LendingPoint also provides payday loans on favorable and transparent loan terms. They usually amount to 500 dollars. The interest rate is 400%. The repayment period is from several days to 1 month.

The company cooperates with credit bureaus and examines applicants’ credit reports. To apply for a loan from LendingPoint and be approved, you must be of legal age, provide a photo ID, have a credit score of at least 620, have a regular income, and have an active bank account.

What Payday Loan Bad Credit Are?

Applying for a bank loan is a lengthy process that requires a lot of documents and compliance with strict requirements. One of these requirements is good credit. This means that if there were delays or penalties on at least one loan, then it is more likely that you will be denied a new loan.

Bad credit payday loan online is a way to borrow funds with minimal requirements and on favorable terms. There are many online payday lenders who provide soft credit checks and are willing to lend money fast even to those with a low credit score (300-579).

In this case, the interest on the loan is higher. But the advantage is that you are not required to present documents on employment, wages, look for guarantors, or provide collateral.

The main requirements are age 18+, US residency, active bank account, phone number, and email address.

Read More: 1500 Dollar Loan With Bad Credit to Cover Your Needs 

How to Choose The Best Online Bad Credit Payday Loan?

To get an online bad credit loan on favorable terms, you need to choose a reliable lender. When making a decision, it is recommended to pay attention to several important points:

  • Service structure. First of all, you need to consider the structure of the site. Every decent service highlights a section that contains information about the terms of the loan. No honest company will hide information about the interest rate, payment terms, etc.;
  • Penalties. It is not reasonable to trust companies that try to convince the client that he can evade payment. Any significant late payment is punishable and affects credit history. You will not be able to avoid the consequences, as it is prescribed at the legislative level.
    Accordingly, if there is a statement on the company’s website that no penalties are applied in case of non-payment, this is a fraud;
  • Agreement. The last important point that you need to pay special attention to is an electronic agreement. This is a guarantee that you and your funds are reliably protected. If the online lender does not offer the conclusion of an agreement, there is a high probability of fraud.

How to Apply For Payday Loans With Bad Credit Online?

Thanks to online bad credit loans, dealing with temporary financial difficulties is now easier than ever before. You just need to register on the site by filling out a simple form.

This can easily be done even by users with minimal experience in using the global Internet. Lender websites always have simple and clear tips to help you apply for a bad credit loan in just a few steps.

Here’s what you need to do to borrow money online:

  • Use an online calculator to determine the interest rate and the amount that will have to be repaid;
  • Go through the application process and indicate the required amount;
  • Provide documents at the request of the creditor;
  • Wait for the completion of the application process;
  • Receive money to the specified account.

Can I Get Instant Online Approval for Bad Credit Payday Loan?

Can I Get Instant Online Approval for Bad Credit Payday Loan

Often people mistakenly believe that they will not be able to get instant online approval for a bad credit loan and therefore look for other fast loan options. But actually, it is possible. Even if you have a low credit score, you can still get an instant approval for a payday loan.

Most payday lenders provide money the next business day after the submission of loan applications. But there are companies that are ready to provide a cash advance on the same day. For example, Upstart approves 71% of its payday loans and makes direct deposits instantly.

How To Find a Direct Lender for Payday Loan With Bad Credit Near Me?

It is not difficult at all to find a direct bad credit loan lender near you. Today there are many trustworthy financial institutions and therefore you will certainly be able to choose the right one.

You just need to enter a search query like “Loan With Bad Credit Near Me” in the search bar of your browser and look at the loan options that open up. You will be able not only to find direct lenders working near you but also to carefully study their credit conditions.

Do not skip this stage or give preference to the first credit company that comes across. Try to make an informed choice.

How To Improve My Credit?

A credit rating is a combination of various factors that can be used to assess a client’s creditworthiness. It directly depends on the credit history because it practically summarizes it. For a creditor, a credit check is an indicator of a potential borrower’s solvency. It plays a major role in the decision to issue a loan.

If you have a bad credit score and want to improve it, start by checking your credit score with the Nationwide Credit Reporting Agencies. If there are overdue loans, close each one as quickly as possible. If this is not possible, contact the creditor with a request for restructuring.

After paying off all debts, start improving your credit history. For this, you need to periodically take out bank or online loans and return them on time and without delays.

Please note that an online loan is most suitable for improving your credit history. This is because the requirements of online direct lenders are usually more loyal and profitable.

Read More: Does Applying for Loans Hurt Your Credit Score?

What Are the Benefits of Bad Credit Payday Loans?

There are several important benefits of a bad credit loan. It is worth taking them into account when submitting a loan application. See the table below for details on this.

Advantages of Bad Credit Loans


Online bad credit lenders tend to ignore bad credit history, litigation, informal income, and other potential problems that can make it impossible to get a loan from a bank.


Money is issued very quickly, often even on the day the application process is completed. It is just necessary to choose a company and submit a loan request on its website.

Minimum documents for registration

Most financial institutions do not require many documents from applicants. All you need to provide is proof of identity, proof of address, proof of an active bank account, and a Social Security Number.

No location restrictions

The client can apply for a loan, being anywhere in the country. An office visit is optional. The agreement is concluded in electronic form and the money is transferred to the card. 

Favorable terms of cooperation

Competition in the online lending market is quite serious. Therefore, most lenders offer borrowers flexible terms of cooperation.

What Are Disadvantages of Bad Credit Payday Loans?

When deciding to get a loan online, you must understand that they have some disadvantages. Although there are not so many cons, they are significant. To find out more, see the table below.

Disadvantages of Bad Credit Loans

Loan limits

Available loan amounts usually range from $100 to $1,000. It directly depends on the state and the credit rating of a borrower. 

High interest rate

The average APR on payday loans is 400%. It is important to choose the right lender and compare different loan options to avoid large overpayments.

Short repayment terms

A loan must be repaid quickly, up to 31 days.

What Are Other Emergency Loans for Bad Credit?

There are several alternatives to emergency payday loans for bad credit. You should learn more about them. Some options may suit you better than payday loans.

Title Loans

Title loans are emergency loans secured by collateral. When you apply for such a loan, you must use one of your assets. The lender will then hold this asset until the loan is fully repaid. In case of non-payment, the company can sell the provided asset and recover the losses.

What Are Title Loans Used For?

Title loans can be used for a variety of purposes as they allow borrowers to get the cash they need quickly. Depending on the purpose of using the title loan, several common varieties are distinguished:

  • Mortgage. This is a type of lending in which the lender gives the borrower money to buy real estate. In this case, the purchased apartment (house) is the collateral;
  • Auto loans. This is a targeted loan for the purchase of a car. If the borrower does not make regular monthly payments, the vehicle may be confiscated;
  • Land loan. Such emergency loans can be used to finance the purchase of land. The land itself is often used as collateral;
  • Business loan. This credit union loan allows the customer to purchase equipment, pay wages, or invest in business projects.

Installment Loans

Online installment loans are guaranteed loans that allow applicants to borrow cash and repay it in equal monthly installments at a fixed APR. The most important advantages of an installment loan are flexible repayment terms and low interest rates.

However, it is important to strictly adhere to the schedule for making monthly payments. Otherwise, fines can be charged.

What Are Installment Loans Used For?

Installment loans are good for large purchases like buying a house, a car, etc. Many lenders offer non-targeted online installment loans, so you can even get the cash you need without specifying the purpose of its use in the loan application.

Personal Loans

A personal loan is a popular long term financial solution. Such a credit union loan does not involve collateral and is usually provided with minimal documentation. However, it must be repaid in accordance with the terms of the loan specified in the credit union agreement.

What Are Personal Loans Used For?

Personal loans can be used for various legitimate financial needs. You can take it to consolidate debt, furnish a house, pay medical bills, buy a car, etc.

Sources Used in Research for the Article:

  1. Credit Scores, Federal Trade Commission,
  2. What is a personal installment loan, Consumer Financial Protection Bureau,
  3. Payday Loans and Cash Advances, Federal Trade Commission,


Is bad credit payday loan worth it?

If you have a bad credit score but need money urgently, getting a bad credit loan can be a great solution. It will allow you to get the necessary funds on fairly favorable terms and solve your financial difficulties. But resorting to the use of such a loan is only worth it if you are completely sure that you will be able to return the money on time and pay all the interest.

How many bad credit payday loans can I get?

You can have as many bad credit loans as you want, provided your online lenders approve them. But it is recommended to take a new loan only after the previous one has been paid in full so as not to fall into a debt hole.

What's the easiest bad credit payday loan to get?

The easiest way to get a bad credit loan is from Upgrade, as it imposes non-strict requirements on borrowers. The minimum required credit score is 560.

What apps will let me borrow money instantly?

There are several good applications that allow borrowers to get money instantly. The most popular today are Upstart and Upgrade apps.