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5 Best Online Payday Loans for Bad Credit Borrowers

As someone with bad credit, accessing emergency funds or covering unexpected expenses can be challenging. Traditional lenders are hesitant to work with borrowers who have poor credit, leaving you with limited options. However, there are online payday lenders that specialize in bad credit loans.

These lenders understand your situation and are willing to provide you access to quick cash despite your credit history. If you need a short-term loan to tie you over until your next paycheck, here are five of the best online payday loans for those with bad credit. With flexible terms, fast funding, and reasonable fees, these lenders can get you the cash you need, when you need it.

Understanding Payday Loans and Bad Credit

Understanding payday loans and bad credit is important before borrowing. Payday loans are small, short-term unsecured loans, typically for $500 or less. Borrowers usually repay the loan amount plus fees within 14 days of receiving funds. Due to the short terms and small amounts, payday loans often charge higher interest rates compared to other loans.

People with bad credit, meaning low credit scores, may struggle to qualify for traditional loans and credit cards. Payday lenders typically do not perform hard credit checks, making payday loans an option for those with bad credit to receive quick cash when needed. However, the high fees and short terms associated with payday loans can potentially worsen bad credit situations. It is best for borrowers with bad credit to first explore other options before considering a payday loan.

When searching for payday loans for bad credit, look for lenders that report on-time loan payments to credit bureaus. This can help you rebuild your credit over time. Also consider lenders that promote responsible lending by giving borrowers ample time to repay loans and charging reasonable fees. Some alternatives to payday loans for bad credit include:

  • Installment loans: Longer terms, lower interest rates, fixed payments.
  • Credit builder loans: Low-interest loans where part of the proceeds go into a locked savings account you receive after repaying the loan.
  • Secured credit cards: Requires a cash deposit, which is your line of credit. Using and repaying the card responsibly can build credit.
  • Peer-to-peer lending: Borrow funds from individual investors instead of banks. Interest rates may be lower.
  • Crowdfunding: Campaign to raise money from many individuals. No interest or fees if funding goal is met.

Payday loans should only be used occasionally and responsibly due to their high costs. With time and effort, bad credit can be rebuilt, allowing access to more affordable financial products. Consider payday loan alternatives, check your credit score and credit report regularly, reduce debts, and pay bills on time to improve your credit and gain more borrowing options.

5 Best Online Payday Loans for Bad Credit Borrowers

Top 5 Payday Lenders for Bad Credit Borrowers

When seeking a payday loan with bad credit, the top online lenders to consider are those that specialize in serving borrowers with poor or no credit history. These lenders understand the unique challenges faced by those with bad credit and offer more flexible eligibility requirements and terms to increase the chances of approval.


MoneyMutual is a leader in connecting bad credit borrowers with a network of over 60 payday lenders. They offer loans of $200 to $5,000 with flexible terms, even for those with very bad credit or no credit. The application process is quick, with most borrowers receiving offers in under 24 hours and funds within 24 to 48 hours after accepting an offer.


CashUSA is an online lender marketplace where those with bad credit can apply for personal installment loans and payday loans of up to $10,000. Their lenders specialize in bad credit loans, with no minimum credit score requirement. The application only takes a few minutes and you can have funds deposited directly in your account as soon as the next business day. Terms range from 3 months to 6 years to suit your needs.


BadCreditLoans connects borrowers with bad credit to reputable online lenders offering personal loans of $500 to $10,000. They have a network of tribal and state-licensed lenders that provide flexible terms for those with bad credit. Most lenders on their network do not check your credit or just do a soft pull that does not hurt your score. Funds are deposited as soon as one business day after approval.


NetCredit is an online lender that offers unsecured personal loans up to $10,000 for those with bad credit. They have made over 3 million bad credit personal loans and offer fast funding and terms from 6 months to 4 years. There are no hidden fees and you can check your eligibility and estimated terms without hurting your credit score. NetCredit reports on-time payments to the credit bureaus to help build your credit over time.


Avant provides bad credit personal loans ranging from $1,000 to $35,000 with terms from 24 to 60 months. They look beyond just your credit score to approve those with scores as low as 550. Avant charges no origination fees or prepayment penalties and funds loans as soon as the next business day. They report payments and loan details to the credit bureaus to help users build credit when payments are made on time.

Tips for Getting Approved for a Payday Loan With Bad Credit

To improve your chances of getting approved for a payday loan with bad credit, follow these tips:

Check Your Credit Report and Score

Review your credit report and score to understand your current situation before applying for a payday loan. Look for any errors or signs of fraud and dispute them immediately. While payday lenders typically do not run a hard credit check, they may review your credit report to verify information like your address and employment. The higher your score, the better your chances of approval.

Apply With Lenders That Accept Bad Credit

Some payday lenders specifically target borrowers with bad credit. Apply with lenders like MoneyMutual, CashUSA, and PersonalLoans that accept applicants with credit scores below 600. These lenders may charge higher fees and interest rates, but are more likely to approve you.

Provide Proof of Income

To qualify for a payday loan, you must provide proof that you have a steady source of income to repay the loan. Supply recent pay stubs, tax returns, bank statements or other documents showing your income. The more you can prove you earn each month, the more likely an approval.

Apply For a Smaller Amount

Request an amount that you can confidently repay to increase your approval odds. Payday lenders are more willing to take a chance on bad credit borrowers seeking small loans, especially for first-time customers. Start with an amount under $500 and pay it back on time. This establishes you as a trustworthy borrower and may allow you to borrow more in the future.

Offer Collateral (If Possible)

For larger payday loans, consider offering collateral like your vehicle title or other assets. Collateral reduces risk for the lender, making them more inclined to approve your application despite bad credit. Make sure the collateral value meets or exceeds the loan amount in case of default.

By following these tips, you can take steps to get approved for a payday loan even with bad credit. While approval is not guaranteed, implementing these strategies will strengthen your application and put you in the best position for success.

READ ALSO: Understanding Variable Versus Fixed Interest Rates for Payday Loans


As you have seen, there are reputable options for online payday loans even if you have bad credit. By doing your research, checking reviews, and comparing offers, you can find a lender that reports to the credit bureaus, has reasonable rates, and flexible terms.

While payday loans should only be used occasionally and for true emergencies due to their high-interest nature, they can be a lifeline when other options are unavailable. With the variety of choices available today, you no longer have to feel trapped by a single predatory lender.

Take your time, understand all the details, and choose a payday loan that helps rather than harms. With responsible use, these short-term loans can provide the stopgap funding you need without damaging your financial standing further. There is hope and help, even for those with credit challenges.

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