Where Do I Find Bad Credit Loans With Guaranteed Approval for $5,000?

When you are in need of a loan, there is a chance that your credit score is not ideal. If you have been turned down for financing because of your score, you may be wondering whether there is such a thing as a bad credit loan with guaranteed approval. Technically, the answer to that question is “no.” There are, however, lenders that will consider approving loans for customers with bad credit or no credit.

What Are the Basic Requirements When Applying for a Loan?

The exact requirements for qualifying for a loan vary from lender to lender. They also depend on the type of loan you are applying for. In general, they usually include the following:

  • You need to be 18 or older.
  • Your monthly income should be a minimum of $1,000-$2,000.
  • You will need to document steady employment.
  • An active bank account is a must, along with current contact information.

Some lenders may require a certain minimum credit score in order to approve you for a loan, but others do not.

Best “Guaranteed” Loans with Bad Credit for $5,000

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Amounts
$300 - 35,000
Loan Terms
2 months to 7 years
Credit Check Type
Soft check
Min Credit Score
550
Bad credit
Allowed
Approval rate
High approval rate
Time for decision
Average 2 minutes
Type of service
Connector
Amounts
$1,000 - 35,000
Loan Terms
6 months to 6 years
Credit Check Type
Soft check
Min Credit Score
580
Bad credit
Allowed
Approval rate
High approval rate
Time for decision
Average 2 minutes
Type of service
Connector
Amounts
$500 - 40,000
Loan Terms
2 months to 5 years
Credit Check Type
Soft or Hard
Min Credit Score
580
Bad credit
Allowed
Approval rate
High approval rate
Time for decision
Average 2 minutes
Type of service
Connector

Types of Loans for Bad Credit

  • Installment Loans: With this type of loan, you pay off the balance and interest in regular monthly installments.
  • Personal Loans: This is a broad category of loans which are available for personal use. Unsecured personal loans do not require collateral like a car title.
  • Payday Loans: If you need to borrow a very small amount to cover an emergency expense, this type of short-term loan may serve your needs. Most need to be repaid within 2-4 weeks.

Is It Worth It to Apply for a Loan?

Even with poor credit, applying for a personal loan online can be a smart move. With financing on your side, you can avoid overdraft fees (also read how to get overdraft fees waived), prevent bills from going to collections, or even avoid filing for bankruptcy. If you pay your loan off on time and in full, you may even be able to rebuild your credit.

Advantages of Personal Loans and Short Installment Loans Over Payday Loans

What type of bad credit loan should you apply for? A payday loan can be a suitable lending option if you are in need of a very small amount of money (i.e. $50 to $1,000), and you are able to pay off the loan within 2-4 weeks. But unsecured personal loans and short installment loans offer the following advantages over payday loans:

  • You get a longer time period to pay off the loan if you need it.
  • You can borrow a larger amount of money (i.e. up to $5,000, if you need it).
  • Even though you may be borrowing more, it may be easier to pay off the loan on time, given the extended repayment term. Ultimately, this may make the personal or installment bad credit loan the more affordable choice.

Is There Such a Thing as Bad Credit Loans With Guaranteed Approval?

While shopping for a loan online, you may see advertisements for “bad credit loans guaranteed approval.” Previously, we stated that there is no such thing as a bad credit loan with guaranteed approval. Being as that is the case, you may be wondering why you keep seeing it.

The answer is simple. Not all lenders are trustworthy. In fact, predatory payday lenders are a dime a dozen both online and offline. Predatory installment and personal loan companies are out there too. They may engage in false or deceptive advertising in order to draw in desperate customers. Some may also be willing to approve customers who cannot afford to pay back their loans.

So if you do see a company which promises “bad credit personal loans guaranteed approval $5,000” or any other amount, it is best to walk away. No responsible company can make this claim.

Now, there are some companies which advertise “guaranteed instant approval loans bad credit,” and which may not be deceptive. The wording here is very specific, and technically it is problematic, but it is common for companies to word what they offer poorly in this regard.

The phrase we are focused on here is “instant approval.” This sounds like another way of saying “guaranteed approval,” which is one reason the wording is poor. The other is that no lender will ever be able to “instantly” issue final approval for a loan.

But there are payday and installment loan sites which will give you an “instant pre-approval decision” when you submit your application. In other words, they will tell you right away if you are likely to qualify for a loan. You then need to wait for final approval, a process which may take a few hours or longer. Sites like these may say they offer “instant approval.” While the wording is poor, their service may be legitimate.

Where Can You Find No Credit Check Loans?

“Okay,” you may be thinking. “I now know that ‘bad credit personal loans guaranteed approval $5,000’ isn’t something I am going to find. But outside of guaranteed loan approval, no credit check seems like something that might help me qualify.”

Just as there are technically no bad credit personal loans guaranteed approval direct lenders, there are also no legitimate lenders which do not run credit checks on applicants.

Just as you as a borrower need to be following responsible borrowing practices when you apply for a loan, so too your lender should be following responsible lending practices. That means learning exactly how much risk you pose, which entails taking a look at your credit score.

Now, there are two types of credit checks which can be performed. These are referred to as “hard” and “soft” credit checks. A hard credit check will ding your score. So try not to apply through lenders that perform this type of check. A soft credit check may also be referred to as an “alternative” credit check. When a lender runs a soft credit check, your score will not be dinged. This is the type of credit check you want to look for.

Remember, even if your credit score is poor, that will not necessarily automatically disqualify you for a personal, installment or payday loan. Many legitimate lenders aim their services at customers with a broad range of credit situations. They are more concerned with your income level than your score.

Still, it is in your interest to get your credit score as high as possible before you apply for a loan. This may allow you to apply for a larger sum of money, making it more likely you can get an amount like $5,000. It also may significantly reduce your interest rate, making the loan more affordable.

About Your Credit Score

You may have a number of questions about your credit score and how you can go about improving it. Let’s answer some of those questions now.

Q: Where can I check my credit score?

A: Each of the three credit bureaus (Experian, TransUnion and Equifax) allow you to receive one free credit report a year. Note that this is not the same thing as your credit score, but it is important.

It is the information on your report which goes into calculating your credit score. So it is smart to order one of your reports for free. You can also order your credit score from the same bureau (or either of the others) for a nominal fee.

There are a few other options for viewing your credit score as well. You can order it from FICO. You may be able to view it through your bank or credit union (this may come at no cost to you). There are also third-party services which may offer free or low-cost access to your credit score.

Q: How much can I improve my score in a short amount of time?

A: How much you can improve your credit score and how quickly you can do it depends on a variety of factors. These include your starting score, the types of negative items on your report, and your exact financial situation.

Q: What steps can I take to improve my credit score right now?

A: There are a number of steps you can take to get back on track with your credit right away.

  • A good starting point is to carefully look over the information contained in your credit report. This will help you to identify negative items which are lowering your score. If any of them are in error, you can contact the credit bureaus as well as the reporting creditors to try and contest these items.
  • If there are any overdue loans or bills which you could pay off now, doing so should have a fast and positive effect on your credit score.
  • If it is possible to reduce your credit utilization on any of your accounts, doing so may boost your score.
  • Sometimes, you can negotiate with creditors to remove negative items from your report under certain circumstances. This is easiest if you usually pay on time, but have had a single late payment recently.
  • You can consider opening new credit accounts, but proceed cautiously if you do. The magic number is three. Two should have zero balance, and the third should have a balance below 8.9%.
  • See if there are any adjustments to be made to your current financial situation to make it easier to keep up with your payments. This might mean shopping around for lower utilities costs, or it could entail transferring the balance from a high interest account to one with a low introductory offer. It may also be helpful to set up automatic payments if you simply forget to keep up with your monthly bills.
  • Any type of buy now and pay later services that reports to major credit reporting companies on a regular basis. You can ask before buying.

Q: How does my credit score affect the loan offers I receive?

A: In some cases, having a high credit score may make the difference between receiving a loan offer (or several) and not receiving one at all. But as you will be applying for cash loans through websites which aim their services toward customers with their low credit scores, it is more likely that your credit score will simply affect the affordability and flexibility of the loan offers you receive.

  • The higher your credit score, the more money creditors will be comfortable lending you. This is important if you are trying to get a larger sum like $5,000 rather than just a $500 or $50 payday loan.
  • With a higher credit score, your interest rate should be reduced. This can save you a great deal of money whether you are applying for a short-term payday loan or a longer-term installment loan.
  • When you have a solid credit score, it is likely that the other terms governing your loan will also be more favorable. Fees may be lower as well.

Apply for a Bad Credit Loan Now in Minutes

When you need cash fast, jumping through the hoops which your bank might put you through to apply for traditional financing may not be a feasible option. Applying for a bad credit loan online is fast and easy, and you can choose to only deal with lenders that will be willing to consider you even with your low credit score.

The lenders we recommend not only tend to approve customers with bad credit, but they also only run “soft” credit checks which will not damage your credit score. It only takes a few minutes to apply, and you have nothing to lose. Click on any of the links in the table of recommendations to be taken directly to the application forms for our suggested lenders. Good luck getting the financing you need and improving your credit score!

Quick Stats

Highest AmountLifeLoans - $40,000

Loan Terms up toQuickLoanLink - 7 years

Recommended income$2,000+ per month

Grace Chen
Article written by

Grace Chen

Grace Chen has 10 years of experience in the financial field and have been delivering excellent business content through her articles.

Grace graduated from the Haas School of Business, University of California and is currently the chief editor of Communicate Better where she has written and edited thousands of articles published in various media.