Best Payday Loans for Bad Credit: Top 7 Lending Companies of 2023

(Ad) Have you ever asked yourself: How can I get the best payday loans for bad credit without damaging my score? You should know there are lots of lenders that are ready to work with bad credit borrowers. There is always hope for any situation.

But where and how do you find such institutions that will accept your loan request despite your credit rating? No worries! We’ve listed 7 companies to help you find the best loan offer.

Best Online Payday Loans for Bad Credit Scores

To ease your search, we will describe each company that offers payday loans (bad credit accepted) and present their features. You may know some of them, but our editors have vetted all of them, and they all have something different to offer.

• 1F Cash Advance – Same-day payday loans for bad credit
• ASAP Finance – Urgent loans for bad credit - no credit check
• 15M Finance – Online loans for bad credit - till next paycheck
• Magnolia Payday Loans – Bad credit payday loan with reasonable terms
• ASCIN Loans – Direct lender payday loans for bad credit
• Second Chance Payday Loans – Payday loans for people with bad credit
• 12M Payday Loans – Instant payday loans for bad credit

#1. 1F Cash Advance - Same-Day Payday Loans for Bad Credit

1F Cash Advance is the first company on our list, and it’s the perfect service to get fast and easy cash. You may get same-day payday loans with bad credit allowed and a maximum amount of $1,000. Consumers may get this sum online or in-store at over 40 locations across the United States.

“Since 2019, the company has helped consumers obtain the best loan offers for their financial problems. With the help of an extensive network of trusted direct lenders, we use encrypted technology to keep consumer data safe. It means the platform isn’t a third party involved in the lending practice, and we don’t participate in the decision-making process,” says Kerry Vetter, the finance writer and expert at 1F Cash Advance.

Trust Score: 4.5 out of 5

Over four years, 1F Cash Advance has gained a lot of reviews from satisfied customers searching for urgent financial assistance. Check former borrowers’ experiences on Trustpilot, where the trust score is 4.5. If you have questions regarding short-term loans or other loan products, don’t hesitate to reach them anytime you need help. Their customer care service is available 24/7 online.

Other indicators of service quality:

• Customer Support: 4.9 out of 5
• Acceptance Rate: 98%
• Loan Decision Speed: 4.8 out of 5

Features

No Minimum Credit Score Requirements

At 1F Cash Advance, they have no minimum credit score requirements. This means they provide payday loans and cash advances to borrowers who can't get approved by local banks. If you're looking for a loan with no credit check, rely on this company.

Flexible Repayment Terms

They understand that life is unpredictable, and they want to make sure you're able to pay off your loan when you need to. To do this, they offer a range of options for paying back your loan: monthly or bimonthly payments.

Perfect for Unexpected Expenses

1F Cash Advance is the perfect solution when you're in a bind. They're here to help you get the cash you need quickly and easily, without the hassle of long lines, complicated paperwork, or confusing personal questions. You can cover unexpected expenses like medical bills within one business day!

#2. ASAP Finance - Urgent Loans for Bad Credit - No Credit Check

If you need urgent loans (bad credit allowed and no credit check performed), try ASAP Finance online or in-store. When your budget is too small, and you can’t afford basic needs, this service is one stop for getting loan products at reasonable rates.

Moreover, poor credit history won’t stop them from accepting your loan application and providing the money you need as soon as possible. Their financial experts can also provide a lot of information about improving your FICO score and beginning to build credit in the long term.

“Also, our customers may get from $500 up to $5,000 with a maximum term of 36 months and cover unexpected needs or credit card debts. Besides, there is a high approval rate, which means 95% of applications are accepted,” says Kathryn McCoach, the managing editor and expert writer at ASAP Finance.

Trust Score: 4.7 out of 5

You can check the quality score of ASAP Finance on Trustpilot. Their high score means that people trust them and their products. They work hard to make sure that they never lose sight of the fact that it's not just about their bottom line. It's about the people who do business with them.

Discover other quality indicators of ASAP Finance:

• Customer Support: 4.9 out of 5
• Acceptance Rate: 94%
• Loan Decision Speed: 4.5 out of 5

Features

No Credit Check via Three Major Credit Bureaus

At ASAP Finance, there are no credit checks. They know that there are a lot of people who don't have great credit and would like to be able to get a loan without having to worry about their credit score. That's why their lenders don’t use the three major credit bureaus (Equifax, Experian, and TransUnion) to evaluate your loan repayment ability. They check your creditworthiness through alternative credit companies that won’t affect your credit score.

Great for Emergency Expenses

They understand that sometimes you need money to get through a rough time. Whether it's an emergency medical bill or car repair, they've got your back. They can help you get the cash you need quickly and easily—without all of the hassle and stress of traditional lenders.

Reasonable Interest Rates

The team believes that a reasonable interest rate is at the heart of a good borrowing experience. That's why their loan providers offer a range of products with rates that are fair for both you and them. They want to ensure that you get the best deal possible on your loan, so they work hard to keep these rates competitive.

#3. 15M Finance - Online Loans for Bad Credit - Till Next Paycheck

15M Finance is your ally in getting the best financial aid when you need it within one business day. We are talking about online loans for bad credit scores. These loan products help consumers pay for medical bills, utilities, car repairs, or other emergencies.

“The lenders that work with 15M Finance assess borrowers’ creditworthiness through alternative credit companies that don’t pull hard on your credit report. A hard pull is the detailed verification of your credit situation through major credit bureaus: TransUnion, Equifax, and Experian,” says Kayla Harris, the financial expert at 15M Finance.

Trust Score: 4.4 out of 5

15M Finance is a company that offers access to a wide range of financial services, such as payday loans for bad credit, cash advance loans, and installment loans. They are a trusted partner for lenders who want to offer their customers affordable credit solutions.

Their team consists of experienced professionals who work hard to provide you with high-quality service and quick response times. Check their reviews on Trustpilot and discover the experiences of former borrowers. Plus, assess other quality indicators of 15M Finance:

• Customer Support: 4.5 out of 5
• Acceptance Rate: 99%
• Loan Decision Speed: 4.9 out of 5

Features

24/7 Financial Assistance

At 15M Finance, they're here to ensure you don't have to worry about your finances. They offer 24/7 financial assistance and are committed to helping you get back on your feet as quickly as possible.

Low Credit Score Accepted

They know that your credit history doesn't always tell the whole story. If you're looking for a payday loan but have a low credit score, don't get upset. The company has no requirements for credit scores, compared to traditional loans that require at least a fair credit score (up to 760).

One Business Day Funding

They pride themselves on being a company that makes things happen. That's why they offer a funding process within one business day. The managers know how important it is to have access to your funds promptly, so they ensure there are no delays in processing your application.

#4. Magnolia Payday Loans - Bad Credit Payday Loan with Reasonable Terms

At Magnolia Payday Loans their lending partners provide bad credit payday loans with reasonable terms. They know that life can get stressful and you might need a little extra cash to help you get through the rough spots. That's why they offer bad credit payday loans with reasonable terms―up to $1,000 with a maximum term of 30 days. You don't have to worry about paying back more than you can afford.

Trust Score: 4.3 out of 5

Magnolia Payday Loans is a trusted source of fast cash for people across the US who are in need of a short-term loan. They have been helping their customers since 2020, and they're proud to maintain a 4.3 rating on Trustpilot. Their friendly representatives will answer any questions you have about your options and help you find the best fit for your needs.

Here are other quality indicators that you can’t miss:

• Customer Support: 4.0 out of 5
• Acceptance Rate: 98%
• Loan Decision Speed: 4.2 out of 5

Features

Perfect for Bad Credit Borrowers

Magnolia Payday Loans is here to help you find a payday loan with bad credit that fits your needs and your wallet. They work with lenders who offer small loans for people with bad credit scores.

One Application Form - Multiple Lenders

At Magnolia Payday Loans, you'll complete one loan request form and get connected with hundreds of lenders available in your area. With their streamlined process, you'll save time and effort by filling out one application form that will be sent directly to multiple lenders who are interested in offering you a payday loan.

No Prepayment Penalties

They believe that you have the right to repay the loan earlier with no additional fees. That's why their lenders have no prepayment penalties. If you need to pay off your loan early, they'll let you do it without any charges.

#5. ASCIN Payday Loans - Direct Lender Payday Loans for Bad Credit

Direct lender payday loans (bad credit, OK) are great financial products for unplanned expenses, and you can get them from ASCIN Payday Loans. This service connects potential borrowers with hundreds of direct loan providers available in their state. Their partner lenders work with bad credit consumers and help them get flexible loans even with a score below 680.

“The company has been around since 2019, and we've helped thousands of people get out of tough situations with our no-hassle approach to payday loans,” says Emily Jordan, the financial expert of ASCIN Payday Loans.

Trust Score: 4.9 out of 5

ASCIN Payday Loans has become one of the biggest connecting services in the US, thanks to satisfied customers. The team strives to offer excellent customer service and high-quality products that meet all your needs. Their trust score is high because they've worked hard to earn your trust. They know that when you trust them, you'll come back repeatedly.

However, you can check other quality indicators that might interest you:

• Customer Support: 4.8 out of 5
• Acceptance Rate: 96%
• Loan Decision Speed: 4.7 out of 5

Features

Trusted Network of Direct Lenders

ASCIN Payday Loans has an extensive network of trusted loan lenders that know how to deal with all types of consumers. They offer fast and easy loans (bad credit) till payday that can help consumers cover their financial needs on time.

User-Friendly Website

They have an easy-to-use website that helps you find the best loan. You can find out about various loans available to fit any need. They'll help you find the one that's right for you.

Almost Instant Approval Decision

Compared to traditional institutions that provide an answer within several days or even weeks, ASCIN Payday Loans will provide you with the loan decision on the same day. If you’re lucky, you could receive it within 60 minutes after application. It all depends on the workflow on the request day.

#6. Second Chance Payday Loans - Payday Loans for People with Bad Credit

Second Chance Payday Loans will help you find multiple lenders that provide payday loans for people with bad credit ratings―and all of this with no additional fees. The company has been in business since 2020, and it has helped more than 200,000 people get their finances back on track. The company's founders knew firsthand how difficult it was to find help when you had bad credit.

“They realized that there were plenty of places to go if you were looking for a loan with good credit, but not so many options if your score was lower than average. That's why they decided to start Second Chance Payday Loans: so that everyone—regardless of their credit score—could get a payday loan when they needed one. Our lenders offer online loans for up to $1,000 at a time, and we accept applications from all states except Hawaii and Alaska,” says Chanita Ingram, financial expert of Second Chance Payday Loans.

Trust Score: 4.8 out of 5

Their team of experts is committed to helping you achieve your goals, no matter how big or small they are. They know that every person is different and that each loan should be treated as an individual case. Their goal is to get you the best rate possible for your situation so that you can start building your life back up. Discover other quality signs of Second Chance Payday Loans:

• Customer Support: 5 out of 5
• Acceptance Rate: 98%
• Loan Decision Speed: 4.9 out of 5

Features

Best Lenders in Payday Loan Industry

It is hard to find the best lenders in this niche, but Second Chance Payday Loans makes it easier every day, helping consumers connect with lenders available in their location, whether online or in-store. Be assured you’ll find a suitable lender with over 5 years of experience in the lending field.

Short Repayment Period

They have short repayment periods. This is a great way to get the emergency cash you need quickly. They want to ensure you can pay off your loan quickly to pay less interest on it.

Only Soft Credit Checks

Here, you’ll go through soft credit checks that won’t crush your credit rating. Lenders run such verifications through alternative credit services that don’t pull your credit report from major institutions like TransUnion or Equifax.

#7. 12M Payday Loans - Instant Payday Loans for Bad Credit

Discover 12M Payday Loans when you need instant payday loans; bad credit is OK. You’ll go through a secure online application and get your money within 24 hours of signing the loan agreement.

They know that sometimes life happens, and paying your bills on time is not always easy. That's why they want to help you out of a jam. You don't need to worry about waiting days or weeks for your money because you'll always have it immediately with them.

“We've helped thousands of people like you get the cash they need! Our friendly customer service representatives are standing by, ready to answer any questions you have about our process or if there are any problems with your application,” says Tyrone Ross, the financial expert of 12M Payday Loans.

Trust Score: 4.6 out of 5

12M Payday Loans is a company that believes in providing payday loans to people who need them. The company's main goal is to help people who might not otherwise be able to get a loan.

The trust score of 12M Payday Loans is 4.6 out of 5, and customer care is great, which you can see on Trustpilot. The company has been around for 3 years and has helped thousands of people get the loans they need to get back on their feet again.

Check other quality signs of 12M Payday Loans:

• Customer Support: 4.1 out of 5
• Acceptance Rate: 93%
• Loan Decision Speed: 5 out of 5

Features

Poor Credit Score - OK

Despite your poor credit history, you can get a loan from 12M Payday Loans. However, you should note that interest rates will be higher compared to good credit loan products.

Same-Day Funding

No need to wait days or weeks to receive your money. You’ll get it on the same day if you apply before noon. For example, apply before 10 AM, and if they approve your loan request in one hour, you’ll be lucky enough to receive your loan by the end of the same day.

Easy Eligibility Criteria

Their lenders have easy eligibility criteria, so you can get the cash you need to pay your bills on time without all the hassle.

How We Ranked the Best Lenders of Payday Loans For Bad Credit

We know many people are looking for lenders to help them get payday loans for bad credit. So we decided to research and find out which ones were the best.

We looked at all the top payday loan lenders and ranked them based on how easy they were to use, how much they charged, and what kind of service they offered.

Annual Percentage Rates

Annual percentage rates (APR) show you the interest you’ll pay over the year when borrowing a loan. The smaller the APR, the less interest you'll pay for your loan. Lower APRs also mean that your monthly payments will be smaller as well.

We looked at all of our lenders' APR information and ranked them from highest to lowest to make it easy for you to find the lender who provides the best deal for your situation. The lowest APR was 35.99% (for installment or personal loans), and the highest was 395% for payday loans.

Loan Amounts

We looked at payday loan lenders in our reviews and ranked them based on how much they can lend out in total. First, we added up all of their available loan amounts. So all seven companies provided small-dollar loans up to $1,000 and bad credit personal loans up to $15,000.

Repayment Terms

We looked at how long each lender would process a loan and how long it would take to repay it. We discovered that most platforms offer loans for bad credit with a minimum term of 14 days and a maximum term of 24 months for larger personal loans.

Transparency

The fourth factor we considered was how much information a lender provides about their services and how they work. We felt that this was an important consideration because it can be frustrating if you're trying to get a loan and can't understand what's going on.

Ease of Use

We want to ensure that applying for a loan is as easy as possible. That's why we only included services on our list with well-designed websites, clear and concise information about how the process works, and an easy way to apply online.

What Are Loans for Bad Credit Scores?

Bad credit loans allow you to borrow money even if your credit is below 670. Thousands of lenders provide such loans for bad credit borrowers, but they often come with interest rates that could be higher compared to good credit loans.

How Do Payday Loans Work?

To start getting a payday loan with no credit check, you only need a bank account and proof of employment (like a pay stub). If you have those things, all it takes is filling out an application online or in person at one of the thousands of locations across the country where payday lenders operate. Once approved for your loan, you'll receive the money within one business day and repay it within two or four weeks.

What Are the Payday Loan Rates and Fees?

Payday loan rates vary widely depending on the lender and loan type, but they typically range from about 10% to 30% for every $100 borrowed. Your rate will depend on your credit score, income, and other factors. When you apply for a loan online, most lenders will estimate your APR based on that information (typically, it doesn’t exceed 395%).

The majority of payday loan companies charge fees in addition to interest rates. These fees may include origination charges, late fees, or other penalties. Lenders charge one-time origination fees when they process your application; late fees are charged if you don't repay your loan within a certain timeframe (usually between 5-15 days).

Requirements for Getting a Payday Loan Online

Before applying for your payday loan online, ensure that you meet these requirements:

1. Have a valid bank account with direct deposit or automatic debit set up.
2. Be 18 years old and have an income of at least $1,000 per month (or have proof of income).
3. Have a valid government-issued ID with your photo and signature (such as a driver's license or passport).
4. Have access to the internet through either your computer or mobile device (phone or tablet).

What's the Difference Between Small Payday Loans for Bad Credit and Personal Loans?

Small payday loans for bad credit and personal loans are both types of loans you take out to get cash in a pinch. They differ in their terms, but they both allow you to borrow money and repay it in a certain period of time. However, there are several differences:

Payday Loans

A payday loan is usually due on your next payday (which is usually the following week or month). The repayment amount is often less than $1,500, but if you have bad credit, some lenders may require a higher interest rate. A lender will also ask for proof that you can repay the loan—usually by asking for a paycheck stub or recent bank statement.

Personal Loans

A personal loan would be due after anywhere between six months and three years. The repayment amount could be as low as $5,000 or as high as $35,000. Personal loans are typically set up through banks or credit unions, so they're harder to get than payday loans because of the longer repayment terms. A personal loan may be used for debt consolidation or another financial need.

How Can I Find Easy Payday Loans for Bad Credit?

When you're looking for a payday loan, it can feel like there's no way to get one without a credit check. But that's not true! While you might have to jump through a few hoops and make some sacrifices, there are ways for you to get a guaranteed payday loan for bad credit.

First, look at what your options are. Do you want a repayment period of one month or more? If so, then you're in luck! There are plenty of lenders that offer easy payments over time. It can make it easier for you to pay back your loan and keep your credit score intact. You can rely on the services described above and find a lender available near you.

Things to Avoid When Getting Payday Loans for Bad Credit

First, don't get a payday loan if you can't afford to pay it back. Online payday loans from direct lenders are designed to be short-term solutions, so they're not the best option if you plan on using them for longer than one month. If you need a longer-term solution, look into alternative forms of financing.

Second, don't take out more than one payday loan with bad credit at a time—this is called "rolling over" your loans, and it's not good for your financial health. If possible, try to pay off your existing loan before taking out another one. And if you do have multiple payday loans in progress at once, make sure that each one has its own due date so that they're not all due at once! That's just asking for trouble!

Thirdly: don't borrow more money than you need. Payday lenders will often offer larger loans than what customers set in the loan requests. Sometimes this can be tempting if the lender offers better terms on larger amounts of money (like lower interest rates or lower repayment amounts).

Do Payday Loans from Credit Unions Perform Credit Checks?

Payday loans from credit unions may not perform credit checks.

Payday loans are short-term loans that you can get from your credit union, connecting service, or a direct lender. They're often used as a way to cover an unexpected expense or to make up for a missed paycheck, so they are also called emergency cash loans in one hour. But what about the credit check? Will your lender perform one?

The answer is no, if you find a lender that doesn’t make an inquiry via major credit bureaus. If you've had a history of late payments or other problems with your finances, these lenders won't care. They’ll see only your current income and check your workplace.

How Is My Credit Score Calculated for Credit Check Loans?

Your credit score is determined by a number of factors. The two major ones are your payment history and the amount of debt you have relative to your income level. The better these two factors are, the higher your credit score will be.

Payment history accounts for 35% of your overall score. If you have always made payments on time or paid more than the minimum required payment, this will help increase your score. If you have missed payments in the past or paid late more than once, this will hurt your score.

Amounts owed account for 30% of your overall FICO score. This will improve your score if you have a small amount of debt compared to how much money you make. It may hurt your credit rating if you have a high amount of debt compared to how much money you make.

What Other Bad Credit Instant Approval Loans Can I Consider?

Don’t stop searching for options if bad credit instant approval loans are too much for you. Consider these alternatives that could help you cover your financial needs:

Installment Loans

Such loans allow you to cover the loan principal with fixed monthly payments, not a lump sum like a payday loan. Installment loans for bad credit are generally easier to obtain than traditional loans because they are typically made with lower interest rates and more flexible repayment terms (up to 24 months).

Auto Title Loans

You could obtain some extra dollars by providing your car as collateral. It's a quick, simple way to get cash when needed. When you apply for an auto title loan, you must provide proof of ownership for your vehicle and any other documents your lender requires.

Auto title loans typically have higher interest rates than other types of loans because they are secured by collateral (your car). The lender may repossess your vehicle if you can’t cover the loan on its due date.

Pawn Shop Loans

Pawn shops are a type of lender that provides such loans. A pawnbroker will lend you money based on an item you bring to the store. The item acts as collateral; if you don't repay your loan by the end of the term (usually 30 days), the pawnbroker keeps your item.

Pawn shop loans are typically smaller than other loans and come with higher interest rates than most credit cards (which means they're not great for big purchases). However, if you need money immediately and don't want to pay interest on a credit card for months after using it, this option might work for you.

Peer-to-Peer Lending Sites

Peer-to-peer lending sites work by connecting you with people who want to borrow money and those who want to lend money. You can search for people in your area or across the country.

Peer-to-peer lending platforms are similar to traditional banks in that they charge interest rates on loans and make money off of them. However, unlike a traditional bank, peer-to-peer lenders offer much more flexibility regarding loan amounts and repayment schedules.

Unsecured Bad Credit Personal Loans

Personal loans aren't made through banks or credit unions but through alternative lenders. Personal lenders often have more lenient requirements than traditional financial institutions, and their products are often called no credit check loans with guaranteed approval. So if banks or credit unions have turned you away, this is an option worth considering.

Secured Personal Loans

Secured personal loans are financial products you secure with real estate or another property serving as collateral. As the name implies, you must have a home to qualify for this loan. The value of your home is used as collateral for the loan, which means that if you cannot make payments, then the lender can foreclose on your property and sell it to recoup their losses.

Cash Advance Apps

These apps work by connecting you with lenders who can immediately give you the money you need. They’re usually pretty easy to use, so if you have a problem with your car or a medical bill that needs to be paid, they can help.

In most cases, you must upload some information about yourself and your bank account into the app and then answer some questions about why you need the money. Once that’s done, there shouldn’t be any problems getting approved!

Frequently Asked Questions

How can I get a loan with no credit or cosigner?

You just fill in the loan application form and enter the data about your financial situation. The seven companies mentioned above will provide you loans with bad credit, no credit and no cosigner.

Can I get an online loan without a credit check?

Of course, you must be informed about the higher interest rates that come with online loans with no credit checks. This is because the lenders must secure the lending process with bad credit borrowers.

How do I repay a payday loan?

Usually, borrowers set up an automatic payment through their bank account. With this repayment method, they won’t forget about the loan repayment. Another way is to allow lenders to withdraw the loan amount on the due date, giving them access to your checking account. Take care to deal with professional companies if you choose this method.

Are payday loans a good option for long-term borrowing?

No, because they are too small to help you cover long-term or more significant expenses. Payday loans are used only for one-time expenses that can’t wait before your next paycheck arrives. Consider installment loans or personal loans when having larger financial problems.

*This article is provided by an advertiser and not necessarily written by a financial advisor. Investors should do their own research on products and services and contact a  financial advisor before opening accounts or moving money. Individual results will vary. Foreign companies and investment opportunities may not provide the same safeguards as U.S. companies. Before engaging with a company, research the laws and the regulations around that service, and make certain the company is in compliance. For comprehensive guidance on U.S. investments and financial regulations, visit the Securities and Exchange Commission (SEC)’s Investor.gov.