When do you need small loans for bad credit? How to do it?

When an unforeseen expense appears, people need to consider all options carefully loans. If you have a bad credit, small loans for bad credit from lenders such as credit unions or other institutions may suit your financial needs.

Small loans for bad credit
Small loans for bad credit

Recent studies show that more than half of Americans have “poor credit” so, if you are one of them and need money now, you are not alone. But what kinds of loans suitable for you with bad credit? Check out the article today!


This our article includes the main four parts which are: “What Are Small Loans for Bad Credit?”, “How to EASILY get small loans for bad credit?”, “The interest of small loans for bad credit” and “The advantages and disadvantages of small loans for bad credit”.

1. What Are Small Loans for Bad Credit?

You can use small loans for bad credit for some reasons:

  • To borrow a small amount of money

  • Have bad credit

  • Have exhausted all other options

Before you compare lenders to choose a loan to meet your needs, ask yourself:

  • How much do you need to borrow? 
  • When do you want to pay it back? 

2. How to EASILY get small loans for bad credit?

2.1. Personal loans

Traditional banks, financial companies, and credit institutions provide personal loans to bad credit holders. These loans are used for any purpose. The amount of lender will be willing to share with different amounts based on your credit and whether the loan is secured (no collateral).

Small loans for bad credit
Small loans for bad credit

Note: Do NOT borrow from lenders who don’t thoroughly check your credit history, repayment ability, and other financial circumstances. 

Secured loans can be a viable option. With this option, you’ll receive more favorable terms, such as a higher loan amount and a lower rate. However, you must be absolutely sure you can refund your loan on time or you could lose whatever collateral you’ve agreed to use (your home, car, or savings account…).

2.2. Apply online

You can easily get the online personal loan instantly, however, with fewer interest rates. There are many websites such as Club moneyMyjar… that offer the features of online small loan application.

In this way borrowers do not have to leave the house, carrying out complicated procedures that can be approved in just a few minutes.

  • No interest!
  • Monthly payments are not more than 5% of your monthly income;
  • Fixed monthly payments and no balloon payments.
  • A small loan online from $80 up to $5.000 
  • Loan terms between 3 and 12 months

Some Online Personal Loan Lender Examples:

Lender Name Borrowing Levels Loan Terms Minimum Credit Score Interest Ranges Origination Fee Time to Receive Funds
Avant $2,000 to $35,000 2 years to 5 years 580 9.95% to 35.99% 4.75% of the loan amount Two days
Best Egg $2,000 to $35,000 3 years or 5 years 640 5.99% to 29.99% 0.99% to 5.99% of the loan amount Next day
Earnest $2,000 to $50,000 1 year to 3 years 720 5.25% to 14.24% None One week
One Main $1,500 to $25,000 1 years to 5 years None 17.59% to 35.99% Varies by state Same day

3. The interest of small loans for bad credit

Small loans are any loans from $100 loans to $1000 loans

The most they can charge you in interest is 100% of the amount you borrow.

For example:

  • If you borrow $100
  • The lender can charge you is $100 in interest over the term of the loan;
  • A total repayment of $200.

4. The advantages and disadvantages of small loans for bad credit

4.1. The advantages

  • Convenience
  • Privacy
  • 24/7 applications
  • Extra security
  • Comparison options
  • The latest technologies
  • Linking to your bank account
  • Personalized lending decisions
  • Unsecured debt

4.2. The disadvantages 

  • You must pay higher fees and interest
  • You will get stuck in a cycle of debt

In short, owning bad credit is undesirable. However, if you can, you need to improve your credit history to get the loan which meets your needs.

We’d really like to hear what you say about these articles about “Bad credit loans” of Info Credit Free. Please leave a comment below, and let me know what you think!

Hillary (Team Content) – Bad Credit Loans