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5 Online Loans for People Who Can’t Borrow Money Because of Bad Credit

What should you do when you have a bad credit score and can’t borrow money from banks? Well, if you’re in this situation, online loans can be a big help to you.

5 Online Loans for People Who Can’t Borrow Money Because of Bad Credit

Online loans are the go-to option for folks who have no credit history or have loan defaults in their credit profile. Many online lending companies that offer such loans aren’t too strict about credit ratings.

If your monthly income is stable, lenders will give you a chance to borrow money even if you have bad credit.

Applying for online loans is also more convenient compared to bank loans. Using a laptop or smartphone, you can already send a loan application to an online lender.

So, without further ado, here are the top online loans for borrowers with bad credit.

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Online Payday Loans

Anyone who will read this will surely have a negative reaction. But, if you can’t get a loan because of bad credit, I recommend payday loans online.

Yes, a bad image will always be attached to payday loans because of unscrupulous payday lenders that dupe desperate borrowers.

However, if you look at the positive side of it, perhaps you’ll realize that this loan option is not at all bad. Consider, for instance, that not all lenders who offer payday loans are bad.

A good number of them follow regulations set by the government. These principled payday lenders won’t charge you over the 36% APR limit or let you take a loan amount of more than $1,000.

Next time if you plan to take out an online payday loan, make sure that you pick a lender with a good track record and who follows state regulations. While online payday loans still have higher annual percentage rates than other loans, it’s still a good option if your credit score is below the “good” credit mark.

Online Personal Loans

Personal loans are not new in the world of traditional lending. Credit unions and banks provide this loan option, but it’s now also offered by online lenders.

A borrower can use an online personal loan for many purposes, such as paying for a home repair, consolidating debts, or financing hospital bills.

Paying back an online personal loan is easy because it has a fixed monthly repayment scheme, which allows you to know the amount you have to pay per month and thus budget your loan payment efficiently.

Today, online lending companies offer deals like lower interest rates to borrowers. The only downside that you have to be aware of online personal loans is the additional fees like origination fees for processing your loan application.

The good news is that some online lenders give an opportunity to people with low credit scores to get online personal loans. Just see to it that you receive a regular salary or income every month to get approval from these online lenders. Get your online loan now from King of Kash to process and release your application within the day.

Peer-to-Peer Lending (P2P Loans)

Another excellent option if you can’t get a loan from banks is peer-to-peer lending. P2P lending works by pooling individual financers in a P2P network.

When you apply for a loan in a P2P network, an interested individual lender will pick your loan application and provide you a loan.

One advantage of P2P lending is that the lender has the freedom to approve your loan even if you have a failing credit score. If you’re lucky, you can even find lenders that offer low-interest rate loans.

Online Small Business Loans

Do you need funding for a small business and you’re not able to borrow money from a bank? Then, apply for a small business loan from an online lender!

Borrowers with no credit history or low credit scores can avail of online small business loans. Lenders that offer this loan option will assess whether your business receives sufficient monthly income to approve your loan application.

Guarantor Online Loans

Guarantor online loans are also an excellent option for folks with poor credit scores. The only disadvantage of this loan is the process of looking for a guarantor for your loan.

The guarantor must have good to excellent credit for you to get approval, and he/she will take the burden of paying back the loan if you default on it.

You need to have the luck to find a person that will serve as your guarantor because not too many people will agree to this role. One good piece of advice is to ask people who are close to you to be your guarantor.


Online loans are popular today for a lot of reasons. One significant reason is that they’re a good option for high-risk borrowers or those folks with bad credit.

Through online loans, people with bad credit can borrow money that they can’t avail of from traditional banks and credit unions.


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