Bad Credit Personal Loans Guaranteed Approval $5,000 – Recommendations

Updated on 2024-04-03

Everyone might sometime in their life need to borrow money to cover unexpected expenses. Bad credit score can make your alternatives seem limited, this is where bad credit loans may come to your rescue. We only list what we think are the best loan companies for bad credit that are available in each state, your state is selected automatically. This means we have verified which loan providers lend in each individual state, and have personally vetted them so that you only see services that are active and accepting new customers. All services we list here provide loans up to at least $2000 but a majority has a maximum of $5000 or $10000. Personal loans may go as high as $50 000.

Bad Credit Score Loan – Our Recommendations

  • 550 and above: Try a personal loan because you can get a larger amount and yet still have a low monthly payment.
  • 480-550: Attempt a pre-approval for a personal loan first, most use a soft check (which won’t lower your credit score) anyway. If you get denied, a small installment loan or payday loan is your next option.
  • 480 and lower: Lender requirements will vary, so still attempt a pre-approval with a personal loan. But for credit scores 480 and lower, small installment loans or payday loans are usually the best bet for success.

FAQ – Bad Credit Personal Loans

How do I find Bad credit personal loans with guaranteed approval $5 000 – $10 000?

A common question we often receive is where one could find personal loans with guaranteed approval and bad credit. The answer is no lender can guarantee approval, but there are lenders today with widely different requirements. The solution is to keep applying at different lenders if you get denied or start improving your credit score.

Where do I find $5000 loan with no credit check?

Every direct lender does some kind of credit check, but some only verify if you have an income. $800 before tax is usually enough, $2000 when it comes to personal loans. What you want to avoid is a hard credit check, it affects your credit score in a negative way. In most cases when you apply for a loan the lender usually only performs a soft credit check, which doesn’t affect your credit score. After you accept the offer, a hard credit check is performed.

Is it possible to improve my credit score easily?

In our article 10 Things You Can Do To Improve Your Credit Score we have listed 10 things that usually can improve a credit score.

Key Insights and Trends in U.S. Credit and Lending

  • In 2015 research “Data Point: Credit Invisibles”, the Consumer Financial Protection Bureau reported that 26 million U.S. adults had no credit history with major credit reporting companies, making them “credit invisible.” Another 19 million had “unscorable” credit files due to thin or outdated records. Together, these 45 million consumers, nearly 20% of the U.S. adult population, may struggle to access quality credit or lease an apartment.
  • U.S. consumers’ average debt balance rose by 5.8% to $101,915 in Q3 2022, a $5,544 increase, while the average credit score remained at 714 according to Experian.
  • As of Q3 2022, the average U.S. FICO® Score was 714, stable after four years of increases since 2018. In 2022, 72% of Americans had a “good” credit score of 670 or above according to Experian.
  • According to Experian, 28.7% of people in the USA had a subprime credit score in 2022.
  • According to The Pew Charitable Trusts, states like Colorado, Hawaii, Ohio, and Virginia have demonstrated that replacing single-payment payday loans with affordable installment loans, longer repayment periods, lower prices, and other safeguards leads to better outcomes for borrowers while maintaining credit access.
  • Approximately 12 million households use small-dollar loans like payday loans each year according to The Pew Charitable Trusts “Payday Lending in America” (2012) research.

Introduction to Loans for Bad Credit

What is a personal loan with bad credit?

An unsecured loan with bad credit, is a type of financial assistance advanced to borrowers to meet their basic or pressing financial needs. They normally offer incredible advantages and often are easy to obtain as compared to other types of loans.

What are the basic requirements for a bad credit loan?

Most lenders will dictate that borrower meet the following basic requirements before approving their personal loans:

  • One must be 18+ years old, but older than 21 years is recommended
  • One must be earning a monthly income of at least $1500 pre-tax. However, the recommended monthly income is $2000

Advantages of a Personal Loan with bad credit

Personal loans offer numerous advantages over other types of loans. They include:

  • Flexible – these loans are multipurpose
  • Personal loans do not require a lot of documentation. This usually makes processing quick and easy
  • Personal loans do not require collateral or security
  • Amounts commonly start at around $2000 to $5000

What is a bad credit loan?

A bad credit loan is typically an unsecured loan such as a personal loan or an installment loan.

A credit score is a be-all and end-all as far as the financial world is concerned. They are extensively recognized, but over and over again shrouded in mystery if you dig deep into its real meaning. They are essential in everybody’s daily life, yet, while most people know that it’s vital to strive and achieve a good credit score, they are left wondering: what is a bad credit rating?

Here is a snapshot of what you should call a bad or good credit score:

  • 750 and higher: Excellent credit score
  • 700 – 750: A good credit score
  • 650 – 700: Regarded as a fair credit score
  • 600 – 650: Termed as a bad credit score
  • Below 600: With a credit score under 600 it’s becoming harder to secure a loan but not impossible. Some smaller lenders specialize in loans for people with bad credit scores under 650.

About bad credit loans with guaranteed approval

It can be tempting to find bad credit loans with guaranteed approval or no credit check at all for popular amounts like $5000. Instead, look for lenders that accept really low credit scores or no credit score at all. Unfortunately, no lender can guarantee a loan, and some kind of check is always performed. On the other hand, if you’ve been denied a loan in the past, keep in mind that new lenders surface all the time with different requirements and older ones might change theirs. Some lenders have a minimum credit score between 550 to 580, while others only verify your income and therefore might accept high risk loan applications.

This applies to personal, installment, and signature loans as they sometimes are called. So keep on trying, and leave no stone unturned.

Another way to improve your chances for a loan is to improve your credit score. Read more below to find out how to do it.

See also: Bad Credit Personal Loans Guaranteed Approval – Direct Lenders

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Credit Scores

How can I check my credit score?

There are a few different ways you can check your credit score. There are many websites offering free credit score checks, which can be extremely helpful to get a ballpark idea of where your number lands. However, these are usually considered “educational” scores. Lenders almost always look at your FICO score to process your loan application.

To see a more accurate number, you can pay for your FICO score or check to see if your bank or credit card company offers any kind of free credit monitoring service. MyFico also has this service, but for a fee. These are becoming increasingly common, so it’s definitely worth looking into before you pay for anything.

How does my credit score affect the loan offers I get?

Your credit score affects your loan offers in a few different ways. First, it can determine whether you’re approved or denied for a certain type of loan. If you are approved, your credit score then influences the rates and terms you have to choose from. Many lenders for example have a threshold starting at 520 credit score for a personal loan.

For example, you’ll get a better interest rate the better your credit score is. If you have a poor credit score the interest rate will be higher. You also may be able to borrow more money for a longer period of time. It’s still possible to get a loan even with a credit score that’s less than perfect. You just may not be able to borrow a huge amount and may also need to choose from a shorter loan term instead of a longer loan term.

How can I improve my bad credit score?

The biggest thing you can do to improve your credit score is to pay all of your bills on time, especially the ones that regularly report to the credit bureaus. They include your mortgage, student loans, car loans, credit card bills, and any other type of loan or credit products. Once you hit the 30-day late mark, your credit score starts to deteriorate. But if you keep up with all of these monthly payments, you’ll start to see a steady improvement when you improve your payment history.

Paying down debt is also a good way to see fast improvement in your credit score. The lower your debt utilization, especially on credit cards, the higher your score will go.

What’s the Difference between a Soft and Hard Inquiry

Lenders use soft and hard credit inquiries to verify your credit history. Depending on what a soft or hard inquiry shows, a lender will decide what sort of interest rates and other loan terms to offer you. The better your credit rating, the lower the interest rates and the higher the loan sum you qualify for.

Soft credit checks can be done without your knowledge. Your employer, businesses you patronize, and others can all run a soft credit check on you without your permission.

Some lenders run a soft check during the pre-approval stage of a loan application and only run a hard check if you qualify for a loan.

Unlike a soft check that doesn’t impact your credit score at all, a hard check/hard pull is more in-depth and negatively affects your credit score. When the credit bureaus (Experian, TransUnion, or Equifax) are contacted for a hard inquiry, your credit score drops. Too many hard pulls and your credit score will experience a significant drop.

Lenders can’t perform a hard check without your consent.

Some lenders use hard checks from the onset of your loan application. To prevent your credit score from taking too much of a hit, it’s best to only work with bad credit lenders that don’t use hard checks at all or use them only after making you a loan offer.

What is a payday loan?

A Payday loan is, in our opinion, an incredible cash advance if you are able to repay it in time. If you apply for a payday loan with bad credit online, your application might get approval immediately depending on your bank or lender. We think that these loans are the best when it comes to meeting emergencies. Getting a payday loan is most times easy and quick, available for people with bad credit that want small sums of money. If you’re looking for loans with a low credit score, this is it.

Qualifications of a payday loan with bad credit

Lenders usually subject borrows to the following minimum qualifications:

  • One must be over 18 years old
  • One must prove that he/she is employed
  • One must own a legitimate bank account bearing his/her official names
  • One must have a stable income of at least $800 pre-tax


Payday loans are becoming more and more popular due to the following reasons:

  • They are a fast source of money during financial emergencies
  • They do not require any credit report
  • They can guard your credit profile from damages covering late fees from other loans
  • They allow borrowers to be independent

About Deposit and Decision Time

Deposit in this context refers to a lender placing in your bank account the loan amount you have requested. Decision time is how long a lender takes to evaluate and approve your loan application.

Many bad credit personal loan lenders say they offer “Next business day deposit”. In truth, some can receive your loan application, approve it, and have funds deposited into your bank account within the same business day.

While same-day or next-day bank deposits are possible, no lender can guarantee it due to various factors. For instance, larger loan sums need to undergo a manual verification process that can delay transferring the money to your account.

A smaller payday loan online with same day deposit may not need to undergo a manual verification process, but delays can still occur due to discrepancies in your loan application or issues with your bank.

Payday loans have the shortest decision time – typically taking no more than 90 seconds to approve a loan application. That’s because the loan application is processed online and payday loan amounts are usually small.

Bigger loans, such as installment loans for bad credit or signature loans that are worth thousands of dollars, may take longer due to the required manual review of your application.

Summary: Bad credit personal loans guaranteed approval $5 000

If you’re looking for a $5000 bad credit personal loan with guaranteed approval, you won’t find it. That’s because no lender can guarantee approval for a loan, regardless of what a soft or hard inquiry shows.

If one lender rejects your loan request, you can still get the loan you want by applying to other lenders with more lenient requirements. Since so many new lenders (with diverse requirements) are now available, you’ll eventually find one that can offer what you want.

FAQ – Bad credit personal loans guaranteed approval $5000

Can I pay off debt collection accounts with a $5000 bad credit personal loan, and get it off my credit report?

Yes, and yes! A personal loan could be a great solution if you’re looking for a way to take care of debt collection accounts and keep them off your credit report. If the creditors or collection agencies haven’t notified the credit bureaus yet, it’s possible you can make a payment to them before it becomes an issue. And if you successfully negotiate something called a “pay for delete” arrangement, the collection can be completely erased from your credit report.

How can I know if I’m working with a licensed lender for my $5 000 bad credit loan?

To ensure you are working with a licensed personal loan lender, you should check with the state’s financial regulator, such as the Department of Financial Institutions or the Office of the Comptroller of the Currency. Additionally, you can check the lender’s website to see if they are licensed in your state.

Just got lender documents for a bad credit loan, what should I check?

  1. Check the interest rate and any fees associated with the loan.
  2. Review the repayment terms and make sure you understand them.
  3. Verify that the lender is licensed and registered in your state (see how above).
  4. Ensure that the loan agreement is signed by both parties.
  5. Check to see if the loan is secured or unsecured.
  6. Make sure that all the terms and conditions are clearly stated in the loan documents.
  7. Confirm that the loan is in compliance with applicable laws and regulations.
  8. Make sure that the repayment amount is affordable for your budget.
  9. Check for any prepayment penalties or other restrictions.
  10. Confirm that the loan is insured if applicable.

What credit score do you need for a $5000 ($5k) personal loan with bad credit?

Ballpark example: 550 score. But that’s not everything, the most important thing is your income. Can your income cover the extra payments a loan creates?

What is the easiest type of $5000 loan to get with bad credit?

In order easiest type of loan payday loan, small installment loan, auto title loan, personal loan, auto loan, credit card and lastly mortgages.

Using a co-signer is also an easy way to get approved a bad credit loan.

Easiest loan lender? We hope one of the listed lenders above is the easiest. That is our goal—to find the easiest one.

Alternatives to a $5,000 cash loan with bad credit?

There are a few alternatives to taking out a loan that you may want to consider.

  1. Family and Friends. Another alternative to taking out a loan is borrowing money from family or friends. This can be a good option as it usually comes with low or no interest rates and flexible repayment terms. However, it can also be a risky option as it could damage your relationship if you are unable to repay the money that you borrowed.
  2. One possibility is to ask for a payment plan with creditors so that you can spread your payments out over time and make them more manageable.
  3. Increase your income through an extra part-time job or freelance work.
  4. Work towards improving your credit score in order to eventually qualify for better loan terms and lower interest rates if the need arises.
Lauren Ward

Lauren Ward
Writer and editor

Specializing in original, well-researched web content, including blog posts, news articles and web copy. Areas of expertise include personal finance and lending. 10 years of experience as freelance writer and working at Federal Reserve Bank of Richmond. Read more about us »

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