Direct Lenders for Bad Credit Personal Loans

Direct Lenders for Bad Credit Personal Loans


Getting personal loans might prove daunting if you have not-so-stellar credit scores and existing debts. Poor credit history will make online lenders shy away from giving you a personal loan, including debt consolidation loans and even payday loans.

Need Money Fast?

Thankfully, there are direct lenders for bad credit personal loans who do not mind. In this regard, we pick out the best lenders and explain the types of bad credit loans for you. Let us begin with the best direct lenders you can go to today.

Best Direct Lenders for Bad Credit Installment Loans


paydaysay loans

PayDaySay offers a swift loan application process, and you can get up to $1000 through its mobile app. It is, in every way, a modern platform, giving users a soothing experience. PayDaySay can quickly provide personal loans, even if your credit score is not high.

Depending on your financial needs, you can borrow as little as $100 or up to $5000.  All you need to borrow money from this lender is your ID and bank account. It has no minimum credit score requirement, meaning you can borrow with a zero score. However, this opportunity does come at a demanding price.

The annual percentage rate (APR) can shoot up to 400%, which is considerably high. Also, the loan period is usually short-term, maybe a couple of weeks. That means you must plan your repayment fast if you do not want your credit score to take a hit. Here are the pros and cons of using PayDaySay:


  • Same day payment
  • It offers a mobile app for quick applications and approval
  • You only need an ID and an active bank account


  • The APR is high, especially if you already have an abysmal credit history.



OppLoans is one of the direct lenders for bad credit loans. It offers between $500 and $4,000 in unsecured loans, but they come at a heavy price. You will have to wade through 59% to 160% APRs to maintain a good credit score. Nevertheless, Opploans remains one of the best alternatives payday loans. It has no origination, late, or prepayment fees, but it will perform a credit check and review your monthly income and credit history.

Opploans does not review credit scores. So, you can still get a loan from it even if you have a minimum credit score of 500. Another advantage is that you can use the loan proceeds for anything, including debt consolidation and travel expenses.

Having no restrictions is a good bargain, but Opploans garnishes it with no prepayment penalties. The following are the pros and cons of using Opploans:


  • It offers unsecured loans with no collateral
  • Select borrowers can opt for refinancing
  • Opploans has lower APRs than a payday loan
  • There are no origination fees or prepayment penalties
  • Perfect for applicants with a bad credit score


  • The APRs are high, climbing up to 160%
  • You must have proof of an annual income of $18,000 to qualify.



People can still get the long stick of rejection because of their short credit history, regardless of having good credit scores from on-time payment history. Unfortunately, this is a prevalent case for many who have not taken the path of credit unions or online lenders for a long time. Upstart looks at the applicant’s educational and job background while accessing the credit information.

This way, they eliminate the need to rely solely on credit history. Upstart’s annual percentage rate (APR) sits between 3.5% and 34.99%, significantly lower than most traditional lenders. Also, you only need a minimum credit score of 600 to qualify, but that is not all.

Upstart goes further to provide almost zero origination fees. Is Upstart all stellar? Let us see some pros and cons of using this direct lender.


  • You can borrow as little as $1000, while the maximum amount is $50,000.
  • It has low origination fees ranging from 0% to 8%.
  • People with low credit scores and short credit history have access to a loan.
  • You can use the loan to fund your education


  • Upstart has only two repayment options: 36 and 60 months.
  • It has no platform to track credit scores.



Upgrade offers bad credit personal loans and seamless integration through its mobile app. You can manage your loan through the app, check your score, and monitor any changes to your credit report. Upgrade’s mobile application also has other capabilities. It can help track how financial decisions, like auto loans, impact your credit score and credit history. Upgrade does not have fixed timelines as part of its loans feature repayment terms.

You can pay it back in two to seven years with APRs of 5.94% to 35.97%. Those figures are competitive among online lenders, and removing fixed dates is a plus. While you can borrow between $1000 and $50,000 from Upgrade, you only need a minimum credit score of 560.

However, strive to clear your debt on time as the late payment fee can climb up to 10%. Another competitive edge Upgrade has is that it offers secured loans. This big plus should not be overlooked, considering most direct lenders in the segment do not have it. Let us move on to the pros and cons of Upgrade.


  • Upgrade offers secured loans.
  • The mobile app helps you keep a stellar credit history


  • The origination fee starts at 2.9%.



LendingPoint offers bad credit loans from $2000 to $36,000 with a competitive APR ranging from 7.99% to 35.99%. It remains one of the best direct lenders for bad credit installment loans. LendingPoint is best for small loans and even outpaces credit unions, thanks to its low loan amounts. Most rivals offer a $5000 minimum for giving out any loans.

You will enjoy an extended reach with this provider, as it operates in 48 states in the United States, including Washington DC. LendingPoint is your best bet to cover small expenses like college fees and affordable purchases. However, late payment may attract a $30 fee.

Thanks to the quick loan application and approval procedure, funds get to you in a day. Once funded, you can repay the loan in two to five years at the stated APR. Despite being a bad credit lender, it has specific requirements you must meet. The minimum credit score for LendingPoint is 580, and you must be over 18 years of age.

LendingPoint only reports to two credit bureaus, Experian and TransUnion. Before we round up on this lender, let us outline its pros and cons.


  • Quick loan approval and disbursement
  • LendingPoint loans have no prepayment penalties


  • The origination fee is high
  • You cannot procure joint loans.

What is a Direct Lender in Personal Loans?

You have seen the best direct lenders for bad credit personal loans. However, what makes them direct lenders? That is what we will answer in this section. A direct lender lends money directly to the applicant. It is different from conventional financial institutions or even credit unions. The primary distinguishing feature is that they do not pass through brokers.

Everything takes place on their website, from the application and approval to disbursement. A direct lender can also double as a payday lender, but the interest rates will be higher.

You qualify for online installment loans from these providers by having a minimum credit history. However, you do not need high scores as you would from banks, local credit unions, or other online lenders. Most bad credit lenders have no originating fees and offer unsecured loans. Then, you can pay it back in fixed monthly payments over the designated period. 

Types of Loans for Bad Credit Loans from Direct Lenders

Auto Title Loans

Auto title loans are secured loans in a way. They often last for a couple of weeks or a month. Failure to repay can lead to the bad credit lender seizing your vehicle.

This loan is usually 25% to 50% of your vehicle’s worth, while you offer the title as collateral. It is also one of the easiest to find due to the collateral. Notwithstanding, you will need proof of car ownership to obtain it in most cases.

That is not to say that there are no lenders that will offer you the money if you have not purchased the car totally.

Home Improvement Loans

Home improvement loans are not mortgages, but funds you obtain to fix your home. For instance, a portion of your roof came off during a wind storm. You may not be financially buoyant to fix it at that instant, or maybe your funds are already committed to other engagements.

You can approach direct lenders even if you have abysmal credit scores. They have no problem offering you the money if you meet their minimum requirements. Once approved, they pay the loan amount into your bank account. Home improvement loans are unsecured loans, unlike mortgages. 

Debt Consolidation Loans

Debt consolidation has become popular due to its ability to ease payments on other debts. You can opt for a single monthly payment by combining all your debts into one. This move can also improve your credit usage history if you meet the deadlines.

Many lenders offer bad credit personal loans for debt consolidation. However, they might require a more appealing credit history before you can borrow money from them. It is crucial since you are consolidating your debt with their loan.

However, debt consolidation loans can get you out of a fix and boost your credit history.

Loans from Credit Unions

You will need to join a credit union to qualify for this loan. Credit unions operate as banks do, lending you money at specified interest rates. One advantage they have over banks is that you can obtain zero-fee loans and enjoy more favorable repayment terms.

You can also get alternative payday loans from credit unions, especially the federal ones. Some might require your membership to be at least a month old before you qualify, while others do it immediately. Regardless, they help procure loans even with an abysmal credit history. 

Things to Check Before Applying

  • Minimum Credit Score Requirement

Most direct lenders, especially payday loans, have minimum credit score requirements. Some go as low as 500, while others get closer to 1000. Either way, you must meet the score before applying for the loan. Usually, bad credit direct lenders that offer unsecured personal loans have lower minimum credit score requirements.

  • Repayment Terms

Checking the repayment terms will save you the trouble of scrambling to meet up months later. While most loans have fixed monthly payments, the period differs. Take Upstart, for example. It has only two repayment options, 36 and 60 months. Anything in-between is unacceptable. Now, you can see how the repayment term is crucial.

Before taking a loan, you must assess your capability to repay it on time. Look at the fixed monthly payment and ask, “Can I meet up?” If your answer is yes, you can go ahead.

Notwithstanding, you can always go through offers from multiple lenders. The loan funds might be the same, but the repayment terms differ.

  • Interest Rates

Interest rates are even more crucial than credit scores and repayment terms. They affect the monthly payments. Secured loans might seem even more daunting with high-interest rates. Whether the monthly payments stay fixed or not, pay attention to the interest rates. They will ultimately decide if you should go with a lender or not. Even for secured loans, the best approach is to pick a lender that offers low-interest rates. 

How We Find the Best Personal Loans for Poor Credit from Direct Lenders

  • APR range

Annual percentage rates are crucial to servicing a loan. As a lender, you do not want to battle high APRs as they could affect your credit history if you cannot meet them. For this reason, we select the best by weighing the APR. Direct lenders like Upstart have a low APR of 3%, which can come in handy during repayment.

  • Fees

Fees include originating fees, interest rates, and prepayment penalties. While you will obtain better conditions with a high credit score, some lenders have minimal charges, even for abysmal credit. Fees were one of the first things we checked while selecting the best personal loans for poor credit. It should be paramount, if you want to go easy on the initial spending.

  • Lenders reputation

Nothing speaks volumes about a company like customer reviews. It is not all about what is on paper but what previous users have to say. A lender’s reputation covers customer reviews, operations, and licenses. The reputable ones will always have a lawful certification to lend money to people with bad credit.

Then, you can progress from there to look at the customer reviews. Both licenses and customer reviews point to an impeccable or bad lender. As a result, we diligently review their reputation before picking them.

  • Customer support

Last on this list is customer support. Users should be able to get complaints across and receive feedback from the lender. Hence, it is one of our criteria for picking a top-rated lender.  


Direct lenders make it possible for people with bad credit scores to obtain loans. Even with a 500 score, there are offers out there for you. However, the bargains get better if you have higher scores. Several direct lenders, including NetCredit, are ready to fund your accounts regardless of your short credit history. As a result, you can get auto title loans, home improvement loans, and debt consolidation loans. Pick the best one that suits your monthly payment budget and credit score. Then, use the favorable conditions to improve your credit ratings while taking care of your needs. 


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

Secured loans like auto title loans are the easiest to get with bad credit. That is because you offer something (collateral) if you fail to pay it back as agreed. Most bad credit lenders fall back on this loan because of the little trust they have in the borrower. 

  • Can I get a loan from direct lender with extremely bad credit?

Direct lenders like Upstart do not check credit scores, especially if you are a student. Even a credit score of 500 will get you a good bargain. Nevertheless, the more abysmal your score is, the more stringent the loan terms become. Manage your loans properly to polish your credit history.

  • What’s the best direct lender for bad credit?

Picking the best direct lender for bad credit boils down to certain factors. You must consider the originating fees, interest rates, repayment terms, and prepayment penalties. Then, you can decide which direct lender works best for you and has the requirements you can safely deliver.

  • What’s the lowest credit score to apply for a direct lender loan?

While many direct lenders will accept as little as 500, you can find others who require no credit score. However, the interest rates may be high and the repayment terms more stringent. The higher your score gets, the better conditions you can get.