Bad Credit Loans: Guide, Reviews and Comparisons

Need a bad credit loan?  We understand how frustrating it is to get disapproved for things in life you need.

And that’s why we created this resource.  To help you understand exactly which type of bad credit loan you need, and then give you the financial data and tools to compare the best possible rates.

There are lots of bad credit loan options available.  There’s loans for homes, cars, education/school, unexpected emergency expenses and everything in between.   Let’s dig into the various types of loans for people with bad credit.

Installment Loans

Installment loans are a very popular choice amongst people with bad credit.  Unlike payday loans, which have to be repaid on your next paycheck cycle, the loan can be repaid over time.  Depending on the lender, along with your credit history, installment loans can be repaid up to 12 months out or longer.  The on thing you should be aware of is this:  the longer the loan term, the more interest and fees you’ll have to pay. And you could dig deeper into debt.


  • Lenders work with people that have bad credit
  • Quick access to cash, typically within 24 business hours
  • It’s an online process; no need to leave the house
  • You can take your time to repay the loan
  • Good for people that have emergency financial expenses


  • Not good for people looking for the best rates
  • Very high interest rates
  • Finding a trustworthy lender can be frustrating
  • Can dig you deeper into debt if you fail to repay the loan
  • Not a good option for long-term financial expenses

Tribal Loans

Tribal loans, ultimately, are installment loans.  The lender is typically located on an Indian reservation, governed and operated by a sovereign, tribal nation.  You have to be careful with tribal loans.  There’s a lot of shady lenders out there that are just waiting to take advantage of you.  Make sure you compare loan rates before committing to anything to avoid overpaying.

Yip:  Compare tribal loan rates here >>


  • It’s ok if you have less than perfect credit
  • Quick access to funds, within 24 business hours
  • Everything is done online, from the comfort of your home
  • Similar to installment loans, it can be repaid over time
  • If you have small, emergency expenses this could be a good option


  • If you have average to excellent credit, move along
  • Very high interest rates
  • Tribal lenders tend to be shady
  • If you can’t repay the loan, you’ll go deeper into debt
  • Not a good option for long-term financial expenses

Payday Loans

Payday loans are short-term loans that are repaid within 30 days, typically when your next paycheck cycle hits.  State legislation has cracked down on this form of lending and made it difficult for lenders to operate.  That’s a good thing, as there were many shady lenders running rampant, causing borrowers to spiral deeper into debt than ever before.

That said, there are a few states that still allow payday loans.  You can check out the payday loan laws here.


  • Bad credit is typically ok
  • Lenders give you quick access to funds, direct to your bank account
  • 100% online process.  Stay in bed if you like.
  • Good for very small emergency expenses


  • Definitely not an option for people with average and above credit
  • Interest rates are unbelievably high, in most cases
  • Payday lenders can be shady.  Be careful
  • Miss a payment and it can wreck your credit history even worse than what it is
  • Do not use this for long-term financial expenses

Home Loans

Shopping for home loans?  If you have bad credit, this is where things can get tricky.  You’ll no doubt be denied for a conventional mortgage.  However, what you can do is find a rent-to-own home while you work on fixing your credit.

Here’s how a rent-to-own financing option works:

  1. Find a FSBO (For Sale by Owner) home.
  2. Contact the homeowner and ask if they are willing to do a rent-to-own option
  3. If they aren’t interested, keep searching.
  4. If they are interested, you and the homeowner can file a “Lease Option” contract.
  5. Move into your new home

Tip:  Check out our guide on bad credit home loans here >>

Car Loans

Shopping for a new or used vehicle?  This is another financing option that can be tricky.  You already know you won’t get the best finance rate.  So expect higher than average car loan rates in your quest to secure vehicle financing. That said, go into this knowing you’ll need a bad credit car loan with high interest rates.

That said, your best option is to find bad credit car dealers in your area and negotiate the best deal possible for your situation.  Buy here, pay here lots typically work very well with borrowers that have less than perfect credit.  The one thing you should watch out for is a “lemon”.  Take a car mechanic, or someone knowledgeable about car repair, with you to the dealership to inspect the vehicle.

Education / Student Loans

Looking to go to school or use a loan for continuing education?  The good news is you have a few options.  First, you should see if there are any scholarships available.  After that, try approaching your local credit union about getting an educational loan.  This is typically your best bet for private financing outside of high APR government backed loans.

Car Title Loans

If you have a vehicle with equity, and, you need short-term financing, a car title loan may be what you need.  Car title loans typically have lower interest rates than installment loans or payday loans, but it also comes with its own downsides.  You can check out our car title loan rates by state here.

Need a bad credit loan? Compare the best rate amongst lenders today at GoLoans #badcreditloans #loans