Published Jan. 25, 2022

Have you ever found yourself in a situation where you ran out of money to fulfill your basic needs? Did you ever take a loan that did not go well? Are you looking for bad credit loan options with a bad credit score?

Thousands of individuals all over the great land of America rely on bad credit loans to fulfill their urgent needs. While some may think it is not a good practice, we know how hard it is to make both ends meet in this world of competition. To help you, we have written this detailed guide. Sit tight and continue reading because we are going to discuss everything about loans with a bad credit score.


When it comes to online bad credit loan lending in America, MoneyMutual has no match. It is the best loan lending company with thousands of customers all over America. Their efficient customer service, quick approvals, and a wide network of lenders are some of the major reasons behind its success.

What makes MoneyMutual stand out from the rest?

Here are a few features of MoneyMutual that makes them unique from others and takes them ahead of the race:

  1. Easy application process for bad credit loans

MoneyMutual has developed a short and easy application process that takes no more than 5 minutes to complete. The process is completely online and you do not have to go anywhere for document submission or verification. All you need to have is an internet connection and you will be able to apply for a loan from the comfort of your home.

  1. Instant Approvals

It is obvious that emergency loans are required instantly, so MoneyMutual guarantees approval within 24 hours. However, that does not mean your application has 100% approval chances. In certain cases, your application might get rejected but that is a rare case.

  1. Wide Network of Lender

MoneyMutual does not lend you money directly. Instead, they serve as a bridge between borrowers and lenders. They provide you access to more than 60 lenders each offering different terms and conditions. This wide variety of options ensures that you will find a lender whenever you need it.

  1. Minimum Eligibility Criteria

For the ease of customers, MoneyMutual has set up minimum eligibility criteria so everyone can use their services. To be able to apply for a loan, you should be at least 18 years old, have a minimum monthly income of $800, must be a US citizen, and should have a bank checking account. If you fulfill this criterion, you can submit a loan application on MoneyMutual.

  1. No Hidden Charges on Loans For Bad Credit

MoneyMutual does not charge their customers any additional amount other than what is written in their terms and conditions. This transparency makes them reliable.

  1. Multiple types of Loans

MoneyMutual allows you to apply for a variety of loans. Small loans range from $300 to $500 while larger ones range from $5000 to $35,000. The three major types of loans are payday loans, cash advances, and bad credit loans.

Payday loans are the easiest ones to obtain and have minimum eligibility criteria, but they are given at a very high interest rate. They are repaid on the borrower’s next payday. Cash advances are obtained as instant cash in your bank account. It is paid back in installments.

Important Factors to Analyze while Choosing a Lender And Loans For Bad Credit

Online platforms like MoneyMutual connect you to more than 60 lenders. So, how do you determine which lender you should choose? Here are a few tips and tricks to choose a lender that can fulfill most of your requirements.

  1. Overall Customer Feedback For Bad Credit Loans

Past customers leave feedback on the lenders’ customer review section. That is the first thing you should carefully read. Use the filter options to read the negative and average reviews. By doing this, you would be able to analyze the lender’s overall performance, the types of loans provided by them, their positive and negative points, and the overall customer experience. Never choose a lender that has too many negative reviews, no matter how excellent deals they are offering.

  1. Flexibility in their terms and condition

Online platforms have minimum eligibility criteria that you can easily fulfill. What you need to carefully look at are the terms and conditions set by the lenders. Each lender imposes different terms that are negotiable upon discussion. A lender that is willing to modify the criteria depending on your financial situation should be your first choice. However, if someone is giving a surreal deal, stay away from it!

  1. Payment delivery

As the name indicates, emergency loans are usually taken in times of urgent need. Therefore, a lender should be able to quickly transfer the funds, so that borrowers can utilize them. Besides asking the lender directly about their payment transfer schedules, also look for the answer in the customer review section. If a lender does not transfer payments quickly, it is very likely that someone has written that in the review.

  1. Transparency

Genuine leaders are clear about their terms and conditions and are open to discussing them. On the other hand, pesky ones have set up multiple hidden costs that you get to know after you have signed a deal with them. Always thoroughly look at the contract and read everything starting from interest rate to miscellaneous charges and from payment methods to schedules. If you find anything missing, make sure to discuss it with the lender.

Documents Required to Take Bad Credit Loans

Taking an emergency loan with a bad credit score is possible but requires some extra effort. Loan lenders have to verify your credibility and the ability to repay the loan. They do this by asking for certain documents that can depict your financial status and stability. Therefore, it is always a good practice to keep them ready beforehand. Here are a few documents that a lender might ask for:

  1. Income Proof

Lenders usually ask for income proof to analyze your financial status. The income proof can be in the form of a payslip, w-25, bank statement, or the 2-year record of your tax returns. If there is anything that can show your financial stability, show it to your lender.

  1. Identity Proof

Lenders ask for identity proof to ensure you are a US citizen. Identity proof can be provided in the form of a driver’s license or citizen identity card. In certain cases, the lender might ask for residential documents and utility bills.

  1. Emergency Reasons

Some lenders might ask for your emergency reasons to analyze if you are a serious customer or not. Always try to be open about the reasons for taking a loan so the lender can modify the terms accordingly.

  1. Credit Report

Although lenders are not very concerned about your credit score since you are taking a bad credit loan, they will analyze your credit report to estimate your financial performance.

Types of Bad Credit Loans

There are a variety of loans offered on online loan lending platforms, each differing on the type of interest rate, payment schedules, and multiple other factors. Here are some of the major types of loans taken on the MoneyMutual platform:

  1. Payday loans

As the name indicates, payday loans are repaid on the borrower’s upcoming paycheck. These unsecured loans are the easiest ones to obtain but come with high interest rates. It is not recommended to take a payday loan unless you really need it. High APR is the best indicator of a payday loan.

  1. Student loans

Student loans are designed while keeping the struggles of students in mind. College students are usually under a lot of debt for their education and it is sometimes difficult to manage the expenses. In case an emergency arises, student loans are here to help you out. They are offered on easy terms and conditions and with minimum interest rates.

  1. Title loans

Title loans are designed for vehicle owners and range from 25% to 50% of the overall cost of the vehicle. These loans must be repaid in 15 to 30 days and the vehicle serves as the collateral. In case you are not able to repay the loan in time, the lender has the right to keep your vehicle until you repay the loan with a late fine.

  1. Consigned loans

Consigned loans are very much similar to secured loans with the difference that you have to name an individual as collateral. In case you are unable to repay the loan in time or something happens to you, that individual would be responsible to cover up on your behalf.

Advantages of Bad Credit Loans

It is natural to think that bad credit loans do not come with any additional benefits. However, this is not true. Although you have to face certain difficulties while applying for a loan with a bad credit score, it has a few benefits that you may be looking for. Let’s have a look at some of the most important ones:

  1. Credit History Check is not required

Hard credit inquiries are done by the lenders before giving a loan to analyze the borrower’s financial situation. These inquiries have a negative impact on your credit score. In the case of bad credit loans, lenders do not run these inquiries since you have already stated that you have a bad credit score. However, they will still need some proof to ensure that you will be able to repay the loan.

  1. Upper limits are high

It is a wrong belief that large sums of money cannot be borrowed on a bad credit score. Online platforms connect you to lenders that can give you as much as $5000. However, keep in mind that the higher the loan, the higher the interest rate will be. So, avoid taking money more than you really need.

  1. Flexible terms and conditions

It is another misbelief that if you need to take a loan with a bad credit score, you have to agree to all sorts of terms and conditions of the lender. Even with a bad credit score, you have a lot of flexibility in tailoring the terms and conditions according to your requirements. In addition to that, you are not obliged to take add-on offers from your lenders. Choose only what you need and refuse the rest of the offers.

  1. Urgent Approvals For Bad Credit Loans

You can get your funds instantly even with a bad credit score. MoneyMutual guarantees approval within 24 hours of submitting the application. In fact, payday loans are considered one of the easiest ones to get!

Charges associated with Bad Credit Loans

Taking a loan is expensive. While you get your emergency needs fulfilled, you have to pay a lot of additional money. Interest charges are the major chunk of that additional cost, however, there are some other charges that you should know about. Here briefly talk about the most important ones:

  1. Annual Percentage Rate (APR)

APR is the overall interest that you have to pay over a year. It is usually 0.1% to 0.5% higher than the interest rate and comes with some additional costs as well. APRs are negotiable so always discuss with your lender to lower it down as much as possible.

  1. Processing Fee

Lenders charge a payment processing fee depending on the type and amount of loan as well as payment methods. The higher the loan amount, the higher will be the processing fee. It generally ranges from 1 to 2 percent of the overall loan amount. Choose a lender that charges a minimum processing fee.

  1. Prepayment Fee

The interest rate of a loan depends on its amount and the repayment time. Therefore, some lenders prevent you from repaying the loan before the deadline to earn maximum interest. You should always try to avoid such lenders but if you do not have any other option, choose a lender that imposes a minimum prepayment fee. If you are able to pay the loan before time, you will be able to save a lot of interest charges despite giving the prepayment fee.  And remember…there are so many types of bad credit loans.

  1. Late Payment Fee

It goes without saying that late fines are applicable on loans. If you are unable to repay the loan within the given time frame, you have to pay a late payment fee and the interest charges may also increase. Therefore, always try to repay the loan within the given time frame to save money and to avoid issues with the lender.

Important Things to Know Before Taking  Bad Credit Loans

Before you apply for a bad credit loan, here are a few things you should know about:

  1. No guaranteed Approval

Although MoneyMutual promises approval within 24 hours it is not applicable to all the applications. In certain cases, if none of the lenders is willing to agree to your conditions, you will not be able to get the loan. Moreover, the chances of approval decrease with the decrease in the credit score.

  1. Hard credit inquiries

Loan lenders run a hard credit inquiry that decreases your credit score. However, you can discuss the terms and conditions beforehand, and if you choose to continue with the lender, only then you should allow them to run the inquiry.

  1. Secured and unsecured loans

Loans are divided into two broad categories: secured and unsecured. Secured loans require you to submit collateral but have a lower APR and interest rate. Therefore, you should always take secured loans so you can be more vigilant to repay the loan.

  1. Borrow what you need

Do not apply for a bad credit loan in urgency. Instead, analyze your situation to see if you can survive without a loan or not. If you cannot, only apply for what you need. The interest rate increases with the increase in the loan amount, therefore, you should avoid paying interest on the money that you do not really need.

  1. Avoid Additional Offers

Loan lenders are in this business to make a profit through interest charges. To increase their profit they try to add multiple offers into your loan package that increases the loan amount, hence the interest rate. Even if you have a bad credit score, you are not obliged to accept all the offers provided by the lender. Analyze your situation and if an offer is beneficial for you, choose that and reject the rest of them.

How to Avoid Loan Lending Scams Related To Loans For Bad Credit

Loan lending scams are not uncommon and you may fall for them if you are not careful enough. Here are a few tips and tricks that you should remember while recognizing a bad credit loan lending scam.

  1. Loan lenders call you before finalizing the deal. While you submit a loan application, there are a few things that are unique to your situation. Genuine loan lenders know about them through your application. Whereas, a random scammer would not know about these details. You can smartly discuss those points to see if the caller knows about them or not.
  2. If a lender is vague about terms and conditions and is reluctant to reveal all the charges associated with the loan, it is likely a scammer who would impose hefty charges on you after you sign the deal.
  3. Genuine lenders do not offer unrealistic deals and their offers are usually consistent. If you find an over-the-top deal that is too flexible to be true, it is bound to be a scam.
  4. Never pay any charges in advance. Remember that you are taking a loan because you need money so it’s senseless to ask for advance payments. All types of charges associated with loans are paid after the loan amount is released.

Frequently Asked Questions On Bad Credit Loans

What is a bad credit score?

According to FICO, a credit score of 600 to 660 is considered satisfactory. However, to be within safe limits and to be able to easily apply for a loan keep your score much higher than 600 because even 1 point decrease will be considered a bad credit score. There are so many loans for bad credit to select from.

Why is a credit report important?

Credit reports tell you about your overall financial status and performance. Lenders analyze your credit report to estimate your ability to repay the loan. If there are any bounced checks or late payments showing on the credit reports, lenders may be reluctant to deal with you. However, if you have a satisfactory credit report, lenders would be willing to accommodate you and modify the terms and conditions according to your requirements.

Is online lending better than conventional lending?

Yes, online lending is much better than conventional lending because it saves you from multiple hard credit inquiries, it allows you to negotiate with multiple lenders at once, you can get loans at lower interest rates, and online lenders might report your performance to credit bureaus that help in increasing the credit score.

What should I do if taking an interest-based loan is not possible?

In case you do not want to take an interest-based loan or cannot find one, you have two alternatives. You can sell your belongings for instant cash or you can ask your friends or family for help. However, it is generally recommended to avoid involving your close relatives in monetary matters since a slight mistake can ruin your relationship.

Is it possible to get a huge loan on a bad credit score?

Yes, MoneyMutual allows you to take huge loans even with a bad credit score. However, in such cases, you have to pay a high interest rate and the terms and conditions are not flexible. Therefore, carefully analyze your situation and only borrow what you really need.

Our Final Thoughts On Bad Credit Loans

Congratulations on reaching the end of our detailed guide on emergency loans with a bad credit score. We genuinely hope that after carefully reading it, you are now ready to apply for a loan whenever you need it! In case you find yourself confused at any step, you can always come back to this article and clear your confusion.

While you are leaving, we would like to remind you that always try to avoid payday loans, try to maintain a good credit report, carefully identify scammers, spend some time choosing the best loan lender, and always repay your loan within the given timeframe to avoid additional fines.

If you are looking for an emergency loan, visit MoneyMutual’s website, submit an application, get instant approval, and receive your funds as soon as possible!

=> Visit the MoneyMutual Official Website