If you have bad credit, not all hope in finding a loan should be lost. Today lending networks like MoneyMutual and FundsJoy offer opportunities for bad credit borrowers with a credit score between 300 to 500 range to enjoy favorable interest rates and terms on loans up to $40,000. The lenders below are the best payday loan alternatives for bad credit.
Best Payday Loans Online For Bad Credit
Keep reading to learn more about the best payday loans online for bad credit with no credit checks, including our favorite marketplaces, recommended debt management strategies, and how to find and qualify for these loans.
Best Payday Loans Online
Best Payday Loans Online
Best Payday Loans Online for Bad Credit
MoneyMutual - Up to $5,000 / Min Credit Score: 0 / 5 Minute Approval / Rating: 4.9/5.0 - Best Overall
FundsJoy - Up to $5,000 / Min Credit Score: 0 / 5 Minute Approval / Rating: 4.8/5.0 - Best Payday Loans Online for Bad Credit
MarketLoans - Up to $40,000 / Min Credit Score: 0 / 5 Minute Approval / Rating: 4.7/5.0 - Best No Credit Check Payday Loans
LifeLoans - Up to $40,000 / Min Credit Score: 0 / 5 Minute Approval / Rating: 4.7/5.0 - Best for Same Day Payday Loans
100Lenders - Up to $40,000 / Min Credit Score: 0 / 5 Minute Approval / Rating: 4.6/5.0 - Best for Poor Credit
Upstart - Up to $50,000 / Min Credit Score: 0 / 5 Minute Approval / Rating: 4.4/5.0 - Best Personal Loan for Fair Credit
Keep reading to learn more about the best payday loans online for bad credit with no credit checks, including our favorite marketplaces, recommended debt management strategies, and how to find and qualify for these loans.
Rating: 4.9/5.0
Amount: Up to $5,000
APR: Up to 35.99%
Min. Credit Score: 0
Approval: 5 minutes
With millions of customers served to date, MoneyMutual is arguably the most popular lending network in the industry today.
Borrowers on the MoneyMutual platform can take out loans up to $5,000, many with sub 35.99% APRs and lengthier repayment terms than no credit check payday and cash advance loans. In addition, its network comprises over 60 lenders, allowing borrowers to shop around and compare rates and terms. Upon approval, expect funds to be deposited in your bank account within 24 to 48 hours.
Outside of MoneyMutual's lending product, it also offers helpful tips on managing loans with a resourceful Bad Credit Loans guide. In addition, it's one of the few lending networks (apart from Upstart and personalloans.com) to offer educational resources, which we appreciate.
How to Apply: Signing out for a MoneyMutual loan is very easy. On the website, navigate to the upper right and click the orange "Get Started" button to begin your application. It should take no more than five minutes to provide your desired loan amount and all contact/depositing information before being matched with lenders matching your credit profile.
Eligibility:
- 18 years of age or older
- Government-issued photo ID
- Minimum monthly income of $800
- Active checking account
- Not a resident of Connecticut
Highlights:
- Loans from $200 to $5,000
- APRs up to 35.99%
- Expansive network of 60+ legit direct lenders
- Easy and fast approval
- Excellent source of payday loans no credit check
Fees:
- No origination or prepayment penalties
- Late and insufficient funds fees depend on the lender
- Some lenders charge for loan extensions/rollovers
Pros:
- Loans from $200 to $5,000
- APRs up to 35.99%
- Easy online application
- Responses from lenders in 24 hours
- Insightful resource guides on bad credit loans
Cons:
- Higher than average interest rates
- No forbearance or hardship options are available
- Not all lenders equally transparent with rates and terms
- Not open to Connecticut residents
Terms: MoneyMutual is not a direct lender. It is a lending network connecting bad credit borrowers with direct lenders offering a variety of loan products and services, including bad credit personal loans, instant cash advances, and no credit check loans. Expect loan offers up to $5,000 with most Annual Percentage Rates (APRs) not exceeding 35.99%. All policies regarding origination, prepayment, late, insufficient funds, and extension/rollover fees are determined by each individual direct lender. Representative loan example: a 34% APR, $20,000 loan on a 1-year repayment term with no finance charges would have you pay a total of $23,871.65 ($3,871.65 in total interest paid). Every borrower pays a different rate based on a combination of credit score, debt-to-income ratio, requested loan amount, and any applicable state laws.
Rating: 4.8/5.0
Amount: Up to $5,000
APR: 5.99% to 35.99%
Min. Credit Score: 0
Approval: 5 minutes
If you can check out several loan options from reputable online payday loan lenders requiring no credit check, then FundsJoy is an excellent place to start.
For starters, FundsJoy offers loans up to $5,000 with APRs not topping 35.99% (with rare exceptions). Repayment terms are also more favorable than traditional two to four-week payday loans, topping 60 months for greater flexibility in repaying your loan. We are also big fans of its online application process, which takes up to five minutes to complete.
We recommend FundsJoy for any bad credit borrower wishing to control the entire personal loan process, from scouting out potential direct lenders to signing off on online loan documentation from the comfort of your desk, not an in-person branch location.
How to Apply: Applying for a FundsJoy loan is very easy. First, visit the FundsJoy homepage and click the "Get Started" button to start the loan request process. Be prepared to fill out the information about yourself, your home address, financial information, and deposit instructions before FundsJoy presents you with loan options matching your credit profile.
Eligibility:
- 18 years of age or older
- U.S. citizen or permanent resident
- Valid checking account
- Minimum monthly income of $1,000
- Completed application through the FundsJoy portal
Highlights:
- Loans from $200 to $5,000
- Flexible repayment terms
- Fixed interest rate loans up to 35.99%
- Excellent source of payday loans no credit check
Fees:
- No origination or prepayment penalties
- Late and insufficient funds fees vary by lender
Pros:
- Loans up to $5,000
- Easy online application
- At a glance view of available lenders
Cons:
- No direct customer service line
- Mostly a source of unsecured loans
- Financial hardship/debt management programs not available
- APRs, terms, and data-sharing policies vary by direct lender
- Not available to military personnel
Terms: FundsJoy is not a direct lender. It is a lending network connecting bad credit borrowers with direct lenders offering a variety of loan products and services, including bad credit personal loans, instant cash advances, and no credit check loans. Expect loan offers up to $5,000 with most Annual Percentage Rates (APRs) not exceeding 35.99%. All policies regarding origination, prepayment, late, insufficient funds, and extension/rollover fees are determined by each individual direct lender. Representative loan example: a 25% APR, $28,000 loan on a 1-year repayment term with no finance charges would have you pay a total of $31,934.85 ($3,934.85 in total interest paid). Every borrower pays a different rate based on a combination of credit score, debt-to-income ratio, requested loan amount, and any applicable state laws.
Rating: 4.7/5.0
Amount: $100 — $40,000
APR: Up to 35.99%
Min. Credit Score: 0
Approval: 5 Minutes
As one of the best alternatives to traditional banks and credit unions, you can’t go wrong with MarketLoans as an emergency source of fast cash.
Participating direct lenders on the MarketLoans network offer loans from $100 to $40,000 at much more favorable rates and terms than traditional payday, auto title, and pawnshop loans. In addition, APRs go up to 35.99% with flexible repayment terms of up to 60 months, allowing bad credit borrowers to enjoy lower monthly payments.
We highly recommend MarketLoans, a funding source for all those pesky emergency expenses or large-scale projects like home improvement and debt consolidation.
How to Apply: Submitting a payday loan with no credit check request using the MarketLoans platform only takes five minutes. First, visit the home page and click the green "Start Now" or "Get Started" button, where prompts will request your desired loan amount and other details. Once you submit your loan application, expect to be matched with several direct lenders offering much better terms than the predatory catastrophe known as payday loans.
Eligibility:
- 18 years of age or older
- U.S. citizen or permanent resident
- Recurring monthly income of at least $1,000
- Government-issued photo ID
- Valid contact information (home address, phone number, and email)
- Completed application through the MarketLoans portal
Highlights:
- Loans up to $40,000
- APRs up to 35.99%
- Excellent source of no denial payday loans online
- No credit check
- Same day approval
- Next business day funding
Fees:
- No origination or prepayment penalties
- Late and insufficient funds fees vary by lender
Pros:
- Loans up to $40,000
- APRs up to 35.99%
- Easy online application
- Same day approval and next business day funding
- Good for bad credit
Cons:
- Mainly a source of unsecured loans
- Not all lenders offer up to $40,000
- Rate and terms transparency vary by lender
Terms: MarketLoans is not a direct lender. It is a lending network connecting bad credit borrowers with direct lenders offering a variety of loan products and services, including bad credit personal loans, instant cash advances, and no credit check loans. Expect loan offers up to $40,000 with most Annual Percentage Rates (APRs) not exceeding 35.99%. All policies regarding origination, prepayment, late, insufficient funds, and extension/rollover fees are determined by each individual direct lender. Representative loan example: a 29% APR, $12,500 loan on a 1-year repayment term with no finance charges would have you pay a total of $14,549.38 ($2,049.38 in total interest paid). Every borrower pays a different rate based on a combination of credit score, debt-to-income ratio, requested loan amount, and any applicable state laws.
Rating: 4.7/5.0
Amount: Up to $40,000
APR: Up to 35.99%
Min. Credit Score: 0
Approval: 5 minutes
Break out of that debt cycle with an online payday loan for bad credit with no credit check from LifeLoans, one of the more reputable lending networks we’ve researched to date.
Direct lenders on LifeLoans are willing to extend rates and terms much better than traditional payday, auto title, and pawnshop loans. Expect loans up to $40,000 with sub 35.99% APRs and repayment terms of up to 60 months, which allows for greater flexibility when managing monthly budgets.
Another reason for using LifeLoans is its transparent policies. Disclaimers on the website clearly illustrate all terms of service and privacy policies, including advertiser disclosures. They also provide representative loan examples to understand better the types of rates and finance charges you can expect to pay.
We wholeheartedly recommend LifeLoans for smaller loans to cover gaps between paychecks, emergency expenses, or whatever else needs to be paid quickly.
How to Apply: LifeLoans follows a similar application process as competing platforms 100Lenders, MarketLoans, and VuvaLoans. Click the "Start Now" button on the homepage to start your loan request. Expect to take at most five minutes to complete it. Once submitted, LifeLoans will present a list of qualified lenders that you can compare and contrast to find the best one for your needs.
Eligibility:
- 18 years of age or older
- U.S. citizen or permanent resident
- Minimum monthly income of $1,000
- Valid home address, phone number, and email
- Valid checking or savings account
- Completed application through the LifeLoans portal
Highlights:
- Bad credit loans from $100 to 40,000
- Excellent APRs below 35.99%
- Top source of no denial no credit check personal loans
- Good for bad credit borrowers
Fees:
- No origination fees
- No prepayment penalties
- Late and insufficient funds fees vary by lender
Pros:
- Loans up to $40,000
- APRs up to 35.99%
- No credit checks
- Approval nearly guaranteed
- Visible disclaimers
- Some lenders report on-time payments to credit bureaus
Cons:
- Higher interest rates than bank and credit union loans
- Mostly a source of unsecured loans
- No secured, cosigner, or cosigner loan options
- Financial hardship/forbearance programs not managed by LifeLoans
- Excludes former and current military personnel from applying
- Not available to residents of Connecticut, New Hampshire, Washington, and Vermont
Terms: LifeLoans is not a direct lender. It is a lending network connecting bad credit borrowers with direct lenders offering a variety of loan products and services, including bad credit personal loans, instant cash advances, and no credit check loans. Expect loan offers up to $40,000 with most Annual Percentage Rates (APRs) not exceeding 35.99%. All policies regarding origination, prepayment, late, insufficient funds, and extension/rollover fees are determined by each individual direct lender. Representative loan example: a 23% APR, $18,000 loan on a 2-year repayment term with no finance charges would have you pay a total of $22,625.27 ($4,625.27 in total interest paid). Every borrower pays a different rate based on a combination of credit score, debt-to-income ratio, requested loan amount, and any applicable state laws.
Rating: 4.6/5.0
Amount: $100 — $40,000
APR: Up to 35.99%
Min. Credit Score: 0
Approval: 5 minutes
Does an unpaid medical bill throw your monthly budget out of order? What about a sudden vehicle breakdown that needs to be repaired in less than a week? If you are looking for emergency cash to cover these expenses, 100Lenders is an excellent option.
Participating lenders on the 100Lenders platform offer anywhere from $100 to $40,000 with flexible and loose qualification criteria for bad credit borrowers. Direct lenders require no minimum credit score but proof of income, a government-issued photo ID, and a valid checking account to deposit funds.
One of the best things about 100Lenders is its straightforward application process, taking no more than two minutes to finish.
How to Apply: Submitting a loan request through 100Lenders takes less than two minutes. Visit the homepage and click on the upper navigation "Start Now" button to fill out your application details. Once submitted, you would be matched with at least three direct lenders. Take all the time to research each one and compare rates and terms against one another before loan signing.
Eligibility:
- 18 years of age or older
- Government-issued photo ID
- Valid checking account
- Minimum monthly income of $1,000
- Submitted online application through the 100Lenders portal
Highlights:
- Loans from $100 to $40,000
- APRs up to 35.99%
- Same day approval and next day funding
- Quick 2 minutes online application
- All information
Fees:
- Origination, prepayment, and late/insufficient funds fees vary by lender
Pros:
- Loans up to $40,000
- Same day approval of next business day funding
- Two-minute online application
- No origination or prepayment penalties
- Extensive network of legit directors
Cons:
- Higher-than-average interest rates
- Mostly a source of unsecured loans
- Loan amount is not guaranteed
- Connecticut, New Hampshire, Washington, and Vermont residents are not eligible to use the service
- Military personnel exempt from applying
Terms: 100Lenders is not a direct lender. It is a lending network connecting bad credit borrowers with direct lenders offering a variety of loan products and services, including bad credit personal loans, instant cash advances, and no credit check loans. Expect loan offers up to $40,000 with most Annual Percentage Rates (APRs) not exceeding 35.99%. All policies regarding origination, prepayment, late, insufficient funds, and extension/rollover fees are determined by each individual direct lender. Representative loan example: a 32% APR, $24,000 loan on a 5-year repayment term with no finance charges would have you pay a total of $48,373.27 ($24,373.27 in total interest paid). Every borrower pays a different rate based on a combination of credit score, debt-to-income ratio, requested loan amount, and any applicable state laws.
Rating: 4.4/5.0
Amount: Up to $50,000
APR: 6.5% — 35.99%
Min. Credit Score: 0
Approval: 5 minutes
Are you on the hook for an unpaid medical or utility bill with the looming threat of turning off your services? If so, Upstart offers an easy way for bad credit borrowers to find the best payday loans online with no credit check.
We like Upstart for its versatility, offering loans from $1,000 to $50,000 with 6.5% to 35.99% APRs. With traditional payday, auto title, and pawnshop loans charging upwards of 300% and 400% APRs, sub 35.99% APRs offer tons of financial relief with no predatory and excessive renewal fees that could easily top the principal after four months.
One of the best things about Upstart is that it relies on an AI-based risk model to determine your eligibility. Fortunately, this means you are graded on education, employment credentials, cash flow, and other things unrelated to credit scores. Remember, bad credit borrowers may not excel with credit scores, but in other areas.
How to Apply: Applying for a loan through Upstart is easy. Visit the homepage and click on the “Borrow” button to get a rate for a loan. Expect to fill out key details such as your desired loan amount, as well as all contact and depositing information.
Eligibility:
- 18 years of age or older
- U.S. citizen or permanent resident
- Need to be currently employed
- No history of delinquencies or bankruptcies
- Valid contact information(home address, phone number, and email)
- Valid checking or savings account
- Completed application through the Upstart portal
Highlights:
- Loans up to $50,000
- APRs from 6.5% to 35.99%
- Top source of payday loans with no credit check
Fees:
- There are no origination and prepayment penalties
- Late and insufficient funds fees depend on the lender
Pros:
- Loans up to $50,000
- 6.5% - 35.99% APRs
- Extensive network of lending partners
- Intuitive online application process
- 256-bit encryption and secure online form
- Good for all credit types
Cons:
- Not a direct lender
- Higher than average APRs
- Requested loan amount is not always guaranteed
Terms: Upstart is not a direct lender. It is a lending network connecting bad credit borrowers with direct lenders offering a variety of loan products and services, including bad credit personal loans, instant cash advances, and no credit check loans. Expect loan offers up to $50,000 with most Annual Percentage Rates (APRs) not exceeding 35.99%. All policies regarding origination, prepayment, late, insufficient funds, and extension/rollover fees are determined by each individual direct lender. Representative loan example: a 18% APR, $14,800 loan on a 1-year repayment term with no finance charges would have you pay a total of $16,282.37 ($1,482.37 in total interest paid). Every borrower pays a different rate based on a combination of credit score, debt-to-income ratio, requested loan amount, and any applicable state laws.
What Are Payday Loans for Bad Credit?
Payday loans for bad credit are popular with borrowers with credit scores in the 300 to 580 range who may not otherwise qualify for short or long-term loans at banks and credit unions.
These loans are generally no denial short-term loans up to $500, repaid anywhere from two to four weeks. They are typically used for emergency expenses such as unpaid utility bills or past due auto Repair invoices. Mainly known for predatory 400% APRs and excessive renewal fees, it is common for interest and finance charges to exceed the principal eventually, creating a debt cycle even the best money managers would have difficulty breaking.
For perspective, a standard two-week payday loan can assess fees of up to $30 for every $100 borrowed. This can be considered highway robbery compared to traditional credit cards, with APRs topping 35.99%.
Thankfully, online marketplaces like ZippyLoans and VivaLoans offer alternatives via bad credit personal loans with lower APRs (under 35.99%), longer repayment terms (as high as 60 months), no origination/prepayment penalties, and no renewal fees on loan extensions.
We strongly recommend bad credit online loans over traditional payday loans for the best rates in terms.
How Do Payday Loans Work?
It is easy to explain how payday loans and payday loans with no credit check work.
The first step is to qualify by providing proof of income and a valid bank account. Then, if the payday lender approves the loan, the borrower issues a post dated check in the amount owed plus all finance charges, automatically withdrawn on the borrower's next payday. Alternatively, payday lenders could be granted direct access to a checking account for automatic funds withdrawal.
On the loan's due date, the payday lender will withdraw the loan proceeds (along with any additional fees) from the borrower's checking account. Failure to repay the debt by the due date will result in interest and other finance charges with the possibility for rollover, incurring renewal fees of up to $40.
We strongly encourage you not to apply for payday loans. Instead, many reputable lending networks with participating direct lenders offer bad credit personal loans at much lower APRs, a better fit for your financial situation.
What Expenses Can I Use Payday Loans Online For?
Online payday loans can be used for all types of expenses, including but not limited to the following:
- Medical bills
- Utility bills
- Mortgage payments
- Home Improvement projects
- Student loans
- Home repairs
- Rent payments
As mentioned, payday loans no credit check typically go up to $500, which is high enough to cover all or a portion of these expenses. However, online bad credit loans and online marketplaces like 100Lenders offer much higher borrowing limits up to $40,000, good enough to address emergency and non-emergency expenses.
Understand Payday Loan APR if You Have Bad Credit
As a bad credit borrower, it is essential to understand the APRs you qualify for. That way, you are best informed before submitting any loan request and receiving proceeds.
To start, APR is short for annual percentage rate, which represents the total interest rate paid for a loan or line of credit as a percentage of the balance borrowed. It is calculated using interest rates plus additional finance charges (e.g., origination fees), providing an accurate picture of the total cost of borrowing.
The higher the APR, the more you pay in borrowing costs.
Our preferred online payday loans charge anywhere from 5.99% to 35.99% APRs. Expect to pay the following APRs based on these credit score ranges:
- Excellent (720-850) - 11.3%
- Good (690-719) - 15.6%
- Fair (630-689) - 22.3%
- Poor (300-629) - 25.2%
Remember that the APRs borrowers may depend on other factors, such as the loan product (e.g. payday loans with no credit check) or service, borrowed amount, proof of income, debt-to-income ratio, and applicable state laws.
What Are the Pros and Cons of Payday Loans Online for Bad Credit?
When applying for payday loans online for bad credit, here are some pros and cons to keep in mind:
Pros
Accessibility. Payday loans are amongst the most accessible types of loans. A simple five minute online application form can result in same-day approval and funding to your checking account as early as the next business day.
Flexible Terms. With online payday loans, expect no origination or prepayment penalties and longer repayment terms of up to 60 months. It sure beats traditional, 400% APR payday loans that require a mad rush to pay back (two to four weeks) with inevitable extensions and renewal fees.
Easy to Qualify. Instead of relying on a minimum credit score, online payday loans only request government-issued photo ID and proof of income, generally in $800 to $1,000 month territory. So a minimum wage 40-hour-a-week job paying $15 an hour at McDonald's or Burger King makes qualification easy.
Cons
Higher Than Average Interest Rates. With no credit checks, payday loans with no credit check
assume higher risk liability. As a result, they must compensate by charging higher interest rates, not topping 35.99%.
Debt Cycle. Failure to repay your loan on time will accrue additional interest charges, affecting monthly budgets. Under no circumstances should you ever have to apply for a second loan to pay off the first one.
Origination Fees. Very rarely do direct lenders at our recommended online marketplaces charge origination fees except for FundsJoy and Upstart, which charge origination fees of up to 5% and 8%, respectively.
How Do I Get the Best Online Payday Loan with Bad Credit?
Here are our suggestions for finding the best online payday loan or payday loans no credit check:
Determine Your Amount. The first step is to determine the loan amount you want. If it's an unpaid utility bill worth $87, go for $100. If it's for an impromptu vacation to the Egyptian pyramids and you still need to finalize a trip, loan an estimate with a little buffer.
Identify Marketplaces. After determining your loan amount, identify the lending that works with direct lenders offering it. Most of our recommended online marketplaces offer loans as little as $100 up to $40,000 (except LendingPoint and its $2,000 minimum), with most lenders offering up to $10,000.
Submit Loan Requests. Feel free to submit loan requests on two or more marketplaces to compare terms from a minimum of three direct lenders.
Understand Qualification. Carefully review all of the fine print before signing off on any loan. How is your data used? Is it sold to third-party aggregators marketing their loan products and services? What about late and insufficient funds fees? Does the lending network operate in the state you live in? Are you satisfied with the representative loan examples based on actual APRs and borrowing limits?
Before signing any loan documentation, thoroughly understand how each direct lender works.
Consider Other Options. If you disagree with terms offered by online payday loans, consider other 0% interest or low-interest options such as cash advance apps (Earnin, Brigit, Dave), credit card cash advances, and payday alternative loans offered by credit unions like Alliant Credit Union and Pentagon Federal Credit Union (PenFed). They all provide equitable benefits, including capped 35.99% APRs, repayment terms of up to 60 months, and no origination or prepayment penalties.
Are Payday Loans for Bad Credit No Credit Check?
Almost all payday loans for bad credit allow for no credit checks. Rather than a minimum required credit score, they rely on a government-issued photo ID (verifying the age of 18 years or older) with proof of income and a valid checking or savings account to disperse funds.
Regarding proof of income, expect to earn a minimum of $800 monthly. You may be asked to submit pay stubs or electronic timesheets during the loan application process. Remember, you must also provide depositing information and a valid bank account to disperse funds.
Outside of that, be aware that the state you live in also has a say on limits regarding interest rates, fees, and repayment terms with no credit check payday loans. States that allow payday loans are very strict with lenders and their ability to properly gauge a borrower's ability to pay back a loan. Be sure to carefully review terms and conditions for all payday loans for bad credit before applying.
Are No Credit Check Payday Loans with Instant Same Day Approval?
The whole point of payday loans is to offer instant same day loan approval. Unexpected expenses like unpaid utility bills or past due automotive repairs preventing you from getting to work all can benefit from same day approval.
Just keep in mind that lending networks like MoneyMutual and ZippyLoans require that you submit a loan request by a daily 5 pm cutoff to qualify for next business day funding. The only method that offers cash quicker is 0% cash advance apps like Earnin and Brigit, which can send money in minutes in exchange for a small expediting fee.
To increase your chances of instant same day approval, gather all supporting documentation, such as a government-issued photo ID and proof of income (e.g., MoneyMutual's $800 a month requirement) before starting your application. In addition, review all loan terms and conditions (including interest rates, fees, and repayment terms) before signing on the dotted line.
Do No Credit Check Payday Loans Offer Small Cash?
Yes, you can consider it small cash. Although the advertised maximum borrowing amounts at online marketplaces like ZippyLoans and MarketLoans for payday loans no credit check
reach $15,000 and $40,000, respectively, most lenders are only willing to lend up to $10,000. However, the good news is that $10,000 is more than enough to cover immediate short-term expenses like unpaid utility and medical bills.
For larger cash amounts, we encourage you to seek out bad credit personal loans, which can offer upwards of $50,000.
As mentioned, online payday loans for bad credit are meant to address immediate short-term needs and are not intended to cover more significant expenses. Plus, they cannot be used to pay back mortgages or student loans, as each expense requires a specific loan type.
Do Payday Online Loans Offer Guaranteed Approval?
Regrettably, there's no such thing as payday loans no credit check offering guaranteed approval. Although they are an excellent source of fast cash, borrowers still need to meet minimum eligibility requirements, most notably with a government-issued photo ID and proof of employment using pay stubs or electronic timesheets. This is the furthest thing from ' guaranteed approval.'
Additionally, it is common for no credit check or payday loans online lenders to require a maximum debt-to-income ratio. Your DTI may also dictate the interest rate, fees, and repayment terms offered by ' guaranteed approved' lenders. Aim for a DTI under 40% to increase your chances of qualifying for payday loans online with ' guaranteed approval.'
In short, expect payday loans online to offer something other than guarantee approval. Moreover, any payday lender that promises ' payday loans online with guaranteed approval' will likely request upfront payment and participate in predatory collection practices designed to break the bank. Therefore, avoid any mention of ' payday loans online guaranteed approval' at all costs.
Do the Best Payday Loans Come from Direct Lenders?
To answer this question about payday loans for bad credit and payday loans no credit check, it is essential to distinguish between lending networks like MoneyMutual versus participating payday loan direct lenders on the platform. The best payday loans online come from lending networks with hundreds of legit direct lenders under their roster, each with their own rates and terms.
Operating as online marketplaces connecting borrowers to a network of legit payday loans by direct lenders, bad credit borrowers are more likely to find the loan that best suits their financial situation in a world where you may be accustomed to predatory 300% and 400% APRs by direct lender payday, auto title, and pawn shop loans. Lending networks like MoneyMutual present an excellent opportunity to find legit payday loans.
That said, if you have recently searched for a ' payday loans direct lender' on Google, you have come to the right place. Many of our payday loan direct lender options offer sub-35.99% APRs with no origination or prepayment penalties that will break the bank.
In What States Are Payday Loans Legit?
Some payday loans for bad credit and payday loans no credit check with “guaranteed approval” are notorious for putting borrowers in a vicious debt cycle, so much so that they are only legal in 37 states.
As of this writing, payday loans for small cash are banned in the following states: Arizona, Arkansas, Colorado, Connecticut, Georgia, Maryland, Massachusetts, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, South Dakota, Vermont, West Virginia and District of Columbia.
There are heavy restrictions in states where payday loans are legal, mandating max loan amounts, APRs, and repayment terms. For example, Alabama residents can take out payday loans up to $500 with maximum loan terms of at most 31 days and finance charges that can be no greater than 17.5% of the total loan amount.
For more information on payday laws in your state, we encourage you to read the National Conference of State Legislatures (NCSL) - Payday Lending State Statutes.
What Are No Credit Check Alternatives to Bad Credit Payday Loans?
Fortunately, there are many options outside of bad credit loans or online payday loans for bad credit with no credit check.
Here here are our favorite no credit check alternatives to payday loans for bad credit/payday loans direct lender:
Cash Advance Apps
Also referred to as advanced paycheck apps, small cash advance apps allow bad credit borrowers to borrow up to $100 a day or $750 per pay period to cover emergency needs or to meet cash flow gaps from paycheck to paycheck.
To qualify, all you need to do is download the app, link a valid bank account/debit card, and provide proof of income. From there, one requests an advance. Then, on the loan's due date, the apps automatically withdraw all loan proceeds (including any voluntary tips), working similarly to traditional payday loans (only with no issuing or post-dated checks; the process is handled automatically).
Our favorite cash advance apps are Earnin, Brigit, and Dave. All offer generous borrowing limits (albeit lower than payday loans no credit check) at 0% interest with no late fees, minimum balance fees, or overdraft fees. No guaranteed approval, only excellent service.
Credit Card Cash Advances
Credit card cash advances borrow money against your credit card credit limit. The maximum loan amount is typically small cash, a percentage of your card's credit limit with no guaranteed approval.
For example, a Chase Sapphire card with a $10,000 credit limit and a 30% advance limit means you can borrow up to $3,000 against your available credit line.
Note that interest rates for cash advances are typically higher than the credit card's APRs with no grace period, so interest starts accruing immediately. Therefore, only consider credit card cash advances if you are confident enough to quickly repay your loan by the next billing cycle to avoid excess finance charges.
Payday Alternative Loans (PALs)
Offered by credit unions, payday alternative loans are an excellent alternative to payday loans online guaranteed approval. Features include borrowing limits of up to $2,000, APRs capped at 28%, and repayment terms of two to 12 months.
Like no credit check bad credit loans and cash advance apps, payday alternative loans determine eligibility based on proof of income, not a minimum required credit score.
What Are Some Tips to Avoid Scam Payday Lenders?
Here are our top suggestions for avoiding scam payday lenders:
Watch Out For Disclaimers. The first thing you should do with small cash payday loans is to check for the fine print, including anything related to ‘guaranteed approval’. Confirm that they are licensed in the state you live in. Take a step further and consult your state's regulatory agency if needed. Be mindful of how they share your personal information as well.
Look for Upfront Fees. Under no circumstances should you ever have to pay upfront fees for the privilege of borrowing. Often scammers promise a rate exchange for an upfront payment through gift cards, money orders, and wire transfers. No legitimate payday nor bad credit lender will ever ask for this.
Watch Out for Guarantees. There's no such thing as a payday loan online guaranteed approval. Even no credit check lenders must follow strict eligibility requirements. Instead of comprehensive credit checks, expect them to ask for a government-issued photo ID, a valid checking account, and proof of income (usually a minimum of $800 monthly).
If you end up following the victim of a payday loan scam, stop making payments immediately and issue a complaint with the Consumer Financial Protection Bureau (CFPB). The Consumer Financial Protection Bureau receives more than 10,000 complaints every week and has a good dispute resolution track record.
Scams can be reported through their online website. It only takes 10 minutes. Alternatively, you can file a complaint over the phone, a long process of 25 to 30 minutes. More than 150 languages can be accommodated.
From there, the CFPB we'll file a dispute with the lender in question, with most companies' responses within 15 days, even for payday loans online guaranteed approval companies.
Best Practices on Monthly Budgeting and Debt Management
You must adhere to basic money management rules to completely control your financial situation. This will allow you to avoid getting into a vicious cycle of debt and apply for loans you could have easily avoided.
Consider some of the following best practices for monthly budgeting and debt management, before and after taking out payday loans direct lender:
Tracking Income and Expenses. We highly recommend tracking your incoming cash flow and expenses every month. Be sure to separate between fixed expenses such as mortgages and electric bills versus variable expenses like Netflix subscriptions, groceries, and other types of miscellaneous expenses. Aim for a debt-to-income ratio of 40% or less. Consider cutting down on variable expenses if your debt-to-income percentage is higher than 40%.
Create a Monthly Budget. Once you have separated essential from discretionary expenses, create a budget. Categorize your expenses and assign a percentage of your income to each. For example, a monthly entertainment budget could account for at most 10% of your monthly income.
Prioritize Debts. Not all debts are created equal. Try to pay off debts with the highest interest rates first before moving on to debts with the second and third highest interest rates.
Consider Debt Consolidation. If you have two or more high-interest loans or lines of credit continually wreaking havoc on your monthly expenses, consider taking out a debt consolidation loan which allows you to roll multiple high-interest rate loans into a single manageable monthly payment. Not only does this reduce your loan liability, but it increases your chances of a higher credit score now that there are fewer chances that you miss a payment.
Pay More Than The Minimum. Always try to pay more than the minimum payment due on all your lines of credit. Paying only the minimum balance could drag on a loan or line of credit for years, resulting in hundreds and hundreds of dollars in interest and finance charges.
How Can I Increase My Credit Score to Qualify for a Personal Loan?
Your credit score is a testament to your ability to repay a loan. Many lenders use it to evaluate your creditworthiness, offering low or higher interest rate loans.
If you have extra time before applying for your next loan, employing these quick credit-building strategies makes sense to add 50 to 100 points to your score in no time.
Make On-Time Payments. Making payments on time every time across all of your lines of credit is the number one thing you can do as a credit holder. FICO assigns a 35% weightage to payment history, so a single missed payment can have disastrous consequences. Stay on top of your payments by enrolling in automatic payments if your creditor offers it.
Utilization Below 30%. With a credit utilization ratio accounting for 30% of your FICO score, taking control of credit is imperative by not borrowing so much against your credit limit. For example, a $10,000 credit card limit should have no more than a $3,000 outstanding balance at any time. Keep it in the single digits (7% to 10% range) for the greatest impact on your score.
Diversify Credit Mix. Even when taking out payday loans online guaranteed approval, it is important to keep your credit mix as diversified as possible. Lenders like to see that you have multiple open lines of credit across several types, including student loans, mortgages, and credit cards. In addition, having a diversified credit mix gives lenders the impression that you have experience managing different types of debt.
Increase Average Account Age. Under no circumstances should you ever have to close an account. Even if an account has a zero balance, it counts against your average credit history. The longer your credit history, the better its impact on your credit score.
Dispute Credit Reporting Errors. With one in five Americans experiencing an error on their credit reports, it is imperative that you continually check them to ensure that all outstanding balances and account statuses are correct. Even payday loans direct lender are prone to errors. In addition, you can easily bump your credit score by 50 points by disputing an error with the creditor or credit bureau if you present a successful dispute, expected to be resolved within 45 days.
How Did We Find These Lenders?
To find the best payday loans online for bad credit with no credit check lenders, we researched more than 20 lending networks, grading them based on several factors, including but not limited to APR/fee structure, repayment terms, transparency, third-party recommendations, and ease of use.
APRs/Fee Structure. Our preferred payday loans online/payday loans direct lender offer APRs up to 35.99% with no origination or prepayment penalties. At best, they assess late and insufficient funds fees which all lenders charge, whether it's a student loan, mortgage, or bad credit loan.
Repayment Terms. Participating direct lenders on online marketplaces like ZippyLoans and FundsJoy Halal borrowers to repay their loans in up to 60 months. The longer the repayment term, the lower your monthly payments. However, it is essential to know that accrued interest charges will increase over time.
Transparency. Given the increased scrutiny of online lending networks, we want borrowers to rest assured of fair terms with clearly worded and visible disclaimers on the footer of each web page. This disclaimer should indicate that online marketplaces are neither direct lenders nor brokers, as well as states of operation, representative loan examples, and data usage policies.
Third-Party Recommendations. We also explore third-party reviews on sites like Trustpilot, accreditation by the Better Business Bureau, and other trustworthy entities. Lending networks with a poor negative-to-positive feedback ratio were not considered.
Ease of Use. All lending network applications take at most five minutes to complete. Progress bars, illustrations, and other visual aids should help guide loan requests through the process without hiccups or glitches. Remember, same-day approval and subsequent business-day funding are crucial for those emergency expenses that must be paid today.
Frequently Asked Questions
What apps let you borrow money immediately?
We highly recommend three paycheck advance apps to borrow money with instant approval: Earnin, Brigit, and Dave. In exchange for downloading a smartphone app, linking out a valid bank account, and showing proof of income, borrowers can enjoy 0% interest on advances from $100 to $750 per pay period with funds dispersed as quickly as the same business day. All this is offered in exchange for a voluntary tip (Earnin) or a small monthly membership fee (Brigit and Dave).
Is it difficult to get approved for a payday loan?
It is easy to get approved for an instant approval payday loan. Instead of credit checks, it relies on proof of income and government-issued photo ID, along with a valid bank account to disburse funds to. However, move away from traditional payday loans with 400% APRs and opt for bad credit personal loans offered by reputable online marketplaces for much better terms.
What is the payday loan trap?
Payday loan trap refers to its notorious predatory rates, climbing upwards of 400% annual interest and possible repeated extensions with renewal fees and finance charges. These loans could also trigger consecutive overdraft fees if your account balance is close to zero, exacerbating the issue further.
What is the easiest payday loan to get online?
We believe the most accessible payday loans to get online come from online marketplaces such as MoneyMutual and LifeLoans. They do not offer the same predatory 400% APRs (up to $30 for every $100 borrowed) provided by traditional payday loans. Instead, borrowers enjoy lower sub 35.99% APRs, lengthier repayment terms, and no origination or prepayment penalties. Be mindful that every online payday lender has its own eligibility requirements, but most offer same day approval and next business day funding.
Can I get a $255 payday loan online same day?
Yes, getting a $255 payday loan online on the same day is possible. You can opt for a lending network like MoneyMutual or use free, highly recommended cash advance apps like Earnin, Brigit, and Dave. Of the three, Earnin has the highest borrowing limit of up to $100 per day or $750 per pay period, offered at 0% interest with no fees.
I need a payday loan immediately. Where can I get it?
If you need a payday loan immediately, we highly recommend you use a lending network or cash advance app. However, only cash advance apps deposit funds for a small expediting fee within minutes. To take advantage of this feature, your account must remain in good standing with a valid debit card (Earnin). Just be sure that that debit card is connected to a direct deposit collecting bank account.
Are there business payday loans?
Yes, business payday loans offering near instant approval do exist. Referred to as merchant cash advances (MCAs), they work similarly to credit card cash advances in that vendors provide a fixed loan amount of up to a percentage of total daily sales revenue, not including fees and interest. However, it operates more like a paycheck advance service (drawing from future credit card receivables sales) rather than an actual loan.
As for APRs, business payday loans follow a factor rate formula. For example, a $5,000 MCA with a 1.25-factor rate results in a total repayment of $6,250 (1.25 x $5,000).
Business payday loans are an excellent way for small businesses with difficulty qualifying for traditional lines of credit to obtain quick cash for all expenses, from paying vendors to purchasing new equipment.
What are car title loans?
Also known as auto title loans, car title loans are instant approval short-term loans repaid within two to four weeks, requiring using a vehicle as collateral. Auto title lenders loan a percentage of the value of your vehicle, generally up to 50%. Interest rates typically average around a 300% APR, depending on the direct lender, the value of your vehicle, and all applicable state regulations with legal limits on the total borrowed amount.
Under no circumstances should you ever have to take out an auto title loan with plenty of legit alternatives, such as bad credit personal loans from online marketplaces, instant cash advances online, and cash advance apps.
Is a payday loan installment or revolving?
Instant approval payday loans are neither installment or revolving, as they are not set up to be paid back in equal, fixed installments. Remember, payday loans are short-term loans repaid by the borrower's next payday, usually at most two to four weeks out. It's a single installment, not multiple installments.
If you would prefer an installment or revolving loan, lending networks like MoneyMutual and ZIppyLoans have more than enough direct lenders to fulfill them.
Is a payday loan secured or unsecured?
In most cases, instant approval payday loans are unsecured, which means they do not require using collateral like a vehicle, savings account, or house. Rather than rely on collateral, payday lenders rely on age (18 years or older), proof of income, debt-to-income ratio, and a valid bank account to disburse funds to.
Is a payday loan variable or fixed rate?
All payday loans have a fixed rate, meaning interest rates and fees are predetermined and do not change from month 1 to the final loan. However, this offers no competitive advantage as payday lenders charge upwards of $30 for every $100 borrowed, not including extra finance charges and rollover fees.
Alternative fixed-rate payday loans online are available with much better terms (sub 35.99% APRs, lengthier repayment terms, and no origination or prepayment penalties).
Feel free to shop around and compare fixed-rate payday loan options by submitting a loan request at one of our recommended lending networks.
Are payday loans legit?
Payday loans have a long and storied history in the United States. They are long known for their predatory 300% APRs and excessive renewal fees where three or more consecutive rollovers can assess interest and finance charges exceeding the actual principal.
As a result, states have cracked down on predatory practices and aggressive debt collection tactics by establishing regulations on maximum borrowing limits, APRs, and repayment terms. As of this writing, more than 20 states have banned payday loans outright, with the remaining states applying heavy-handed regulations.
In short, instant cash advance payday loans from lending networks are legit, not ones from traditional payday loan stores that you find on any random corner next to 7-Eleven and other convenience stores.
Do payday loans affect your credit?
Most payday lenders do not report payments to each of the three major credit reporting bureaus — Equifax, TransUnion, and Experian. However, defaulting on a loan may force payday lenders to follow up with a collection agency, which may or may not be posted to your credit report.
A single collection on your credit report can drop your score by 100 points or more, taking potentially years of on-time payments to recover. Be sure to carefully assess your debt-to-income ratio and ability to repay a debt before taking out any traditional payday loan. Opt for legit payday loan sources from lending networks whenever possible.
Can payday loans take you to court?
Yes, payday lenders can pursue legal action and file lawsuits against those who default on payments. One commonly used method is enlisting a debt collection agency to collect the debt, with lawsuits filed afterward to recover the amount owed and any accrued finance charges.
If you have been served with our lawsuit, one possibility is to negotiate a repayment plan or settlement. However, you should not take out traditional payday loans with 400% APRs in the first place, so this question can hopefully be obsolete.
Can you have two payday loans at once?
Yes, taking out two payday loans simultaneously is possible, as long as they are from two different sources. However, taking this amount may indicate that you have a budgeting issue. Instead of repeated payday loans to cover paycheck gaps, we highly recommend alternative cash advances apps like Earnin, Brigit, and Dave, which offer 0% cash advances of up to $100 a day or $750 per pay period.
Is Balance Credit a payday loan?
Like MoneyMutual, Balance Credit is a popular lending network that offers access to additional types of loans, including personal loans, bad credit loans, installment loans, and debt consolidation loans. In addition, they offer loans up to $3,000 with the same short online application process and cash by tomorrow.
However, what we appreciate the most about Balance Credit are its stellar Trustpilot ratings. As of this writing, it has earned a near Five Star average rating across 2,100+ reviews. In addition, many users have touted its excellent customer service and fast transactions.
Thanks to a super low $3,000 maximum borrowing amount, we decided to exclude it from our guide. However, it excels in other areas, such as funding time, loose eligibility criteria, and transparency.
What happens if you don't pay back a payday loan?
If you do not pay back a payday loan, there are several consequences you can expect.
For starters, expect additional finance charges, interest, and aggressive predatory collection practices (by traditional payday lenders). Failing to pay back your payment may also cause your direct lender to report missed payments to credit bureaus, dropping your credit score by 100 points or more. In extreme cases, court orders can force wage garnishment, preceded by or followed by lawsuits or criminal convictions.
We strongly encourage you to apply for an online payday loan at a reputable lending network. These online payment loans are offered by direct lenders promising increased transparency and modest debt collection efforts in no way close to traditional payday loans.
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Conclusion
In short, bad credit borrowers have many options for paying off emergency expenses. Move away from traditional payday loans and opt for lower APR payday loans online for bad credit, promising no credit checks, lose qualification criteria, and access to an extensive network of participating direct lenders ready to offer you your next financing opportunity.
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