Online Loans: 5 Ways to Borrow Money When You Have Bad Credit 


It’s not a complete shock to witness the popularity of online loans today. This wide acclaim is to be expected given that people always look for convenience, and the no-hassle application process of online loans provides the borrowers what they want. With your smartphone connected to the internet, you can now send a loan application to online lenders.  

Another remarkable feature about online loans is that borrowers with poor credit scores can avail of them. Your credit score won’t matter much to many online lenders as long as you have a regular monthly income. That’s how great online loans are!   

So, don’t despair if you have a failing credit and want to borrow some cash. Here are the five online loans for folks with bad credit like you.  

Payday Loans Online 

Most probably, many who will read this recommendation will raise their eyebrows. Payday loans get so much negative publicity that it strains credulity to hear someone recommend them.  

Of course, it’s not to be denied that there are indeed payday lenders that prey on borrowers and charge overblown interest rates. This unethical practice puts their customers in a bad position, incurring more debt in the process. But let’s point out some positive things about payday loans online.  

The main thing that you should consider is that not all lending companies that offer payday loans are dishonest and fraudulent. Many of them follow government regulations on payday loans, such as the $1,000 loan amount limit and 36% annual percentage rate limit.  

These limits are imposed to protect borrowers from borrowing more than the amount that they can afford and prevent payday lenders from charging exorbitant rates. Check out payday loan regulations in your state to ensure that you can’t be deceived by predatory payday lenders.  

Online Personal Loans 

Personal loans are popular in the traditional lending world. Banks and credit unions lend out this type of loan. Nowadays, online lenders also provide personal loans to consumers.   

One advantage of a personal loan is that borrowers can use it for almost any purpose. It’s great for consolidating debt, paying for a car repair, or covering vacation expenses. This loan also comes with a fixed monthly repayment scheme which allows borrowers to know the exact amount they’re going to pay every month and better budget their repayment.  

Online personal loans also have lower interest rates than online payday loans. Just beware of the additional fees associated with this type of financing. For instance, you have to pay origination fees on most personal loans offered by online lenders.   

For borrowers with not-so-good credit scores, online personal loans are a good option. Online lending companies can give you an opportunity to avail of an online personal loan as long as you receive a stable income every month. Just look for credible online lenders on the internet if you want to obtain an online personal loan.  

Peer-to-Peer Loans (P2P Loans) 

Folks with bad credit ratings can now borrow money through peer-to-peer lending (P2P lending). P2P lending connects borrowers directly with individual lenders via a P2P lending platform. You apply for a loan on a P2P network and an individual investor who finances loans will pick your application if you’re qualified according to his/her own terms.   

There’s no middleman to this transaction, and it can benefit borrowers because most loans offered by individual lenders in P2P lending don’t have stringent requirements. It’s also possible to obtain a loan with a low interest rate. That’s how great P2P lending is!  

Online Small Business Loans 

Starting a business requires capital. If you don’t have the funds to build a business, you need to get financing for it. The good news is that you can obtain online small business loans nowadays.   

Even with no credit history or a poor credit score, it’s possible to get financing for your business through an online small business loan. Some lenders will even provide you a higher loan amount if your business is promising.  

Guarantor Loans 

If your prospect of getting a loan through traditional lending is negative, one good option is to look for a guarantor with good credit to increase your chances of getting loan approval. While this move may provide you a bad credit loan, the downside is the process of looking for a guarantor.   

Some people who take this option often go to their friends and relatives and ask them to be a guarantor for their loans.  


It’s not easy to get a loan if you have a bad credit score. Thanks to online lending, borrowers with poor credit now have the opportunity to borrow money. You can choose online payday loans, online personal loans, P2P loans, guarantor loans, or online small business loans if you need financing.  


We See The World From All Sides and Want YOU To Be Fully Informed
In fact, intentional disinformation is a disgraceful scourge in media today. So to assuage any possible errant incorrect information posted herein, we strongly encourage you to seek corroboration from other non-VT sources before forming an educated opinion.

About VT - Policies & Disclosures - Comment Policy
Due to the nature of uncensored content posted by VT's fully independent international writers, VT cannot guarantee absolute validity. All content is owned by the author exclusively. Expressed opinions are NOT necessarily the views of VT, other authors, affiliates, advertisers, sponsors, partners, or technicians. Some content may be satirical in nature. All images are the full responsibility of the article author and NOT VT.