For a very long time, it used to be an extremely uphill task to get approved for a loan when you had a bad credit score hanging over your head. Even today, it is not uncommon for traditional lending institutions like banks to take you through hell and back before they even consider giving you a loan with a less-than-stellar credit score.
Thankfully, there are a number of online lending services that have come up to connect such borrowers with potential lenders at no cost whatsoever. For instance, there are numerous direct lenders that offer online loans through CocoLoan, with many of them open to accepting loan requests from borrowers no matter what their credit rating may be.
However, with so many online options to choose from, it can often be tricky to pinpoint the right free sites to use that are not only legitimate but also effective in helping you get the funding you need. So, we prepared a list of 10 of the most reputable and free lending sites that can spare you the trouble of having to shop around for a loan provider by yourself.
- CocoLoan – Offers high loan approval rates
- WeLoans – Has the largest online lending network
- iPaydayLoans – Provides access to a wide variety of loan products
- UnityLoan – Top choice for small loans with speedy processing
- US Title Loans – Facilitates fast online loan processing
- US Installment Loans – Top choice for securing flexible lending terms
- US Bad Credit Loans – Best option for catering to bad credit borrowers
- HonestLoans – Highly trustworthy and reliable lending network
- Fast Title Loans – Comes with a quick and efficient loan application process
- CreditNinja – Has a positive long-standing reputation among online borrowers
However, for those who may still be indecisive about which one to use, here’s an in-depth background on our top three favorite sites that you should use today!
1. CocoLoan
If you want the best chance of securing loan approval online, CocoLoan is your best bet. The online credit broker instantly connects borrowers to potential online lenders and boasts a 97% approval rating. This means that there is a high chance of being able to get payday loans from CocoLoan, as well as other loan products, even with a bad credit history.
Borrowers can typically access loans of up to as much as $35,000, and since the entire service is free to use, this means that anyone can explore what lending options are available to them without having to pay a dime. The site also has a very simple application process that only takes a few minutes to complete, so there is no excess paperwork, either.Â
Once your loan request is submitted, you are presented with multiple loan offers that you can compare until you find the best deal possible. And when it comes to funding, most approved loans are disbursed as soon as the next business day.
Pros
- Simple loan application process
- 97% loan approval rate
- High loan amounts
Cons
- High rate of interest.
2. WeLoans
WeLoans is an online lending service that can be a great choice if you want to secure yourself the most competitive loan rates and terms, even if you have bad credit. Borrowers are typically able to access funding as high as $35,000, with all loans deposited in your checking account in as little as 24 hours.
They also have a good track record when it comes to approving loans since their partner lenders take other factors besides just your credit score into consideration when reviewing loan applications. Some of these factors include; debt-to-income ratio, income level, employment status, etc.
WeLoans is also available to use even during non-business hours, so you can feel free to apply for funding at any time or day. And since the site uses bank-level encryption, any information you submit in relation to your loan request will remain protected from any unauthorized third-party access.
Pros
- Available 24/7
- Competitive loan rates and terms
- High approval rates
Cons
- High late repayment fees
3. iPaydayLoans
iPaydayLoans has been in the online lending industry for some time, and it has managed to build a good reputation for being able to provide borrowers with access to a wide range of loan products.Â
Some of these include payday loans, bad credit loans, installment loans, personal loans, and more. This makes it the best place to secure a loan that is not only well-suited to your specific financial situation but also fits your current budget.
Furthermore, you can usually access loans of up to a maximum of $35,000, which means that you can use the money to fund a wide variety of expenses, such as home renovations, car repairs, debt consolidation, or anything else that you need. And since the platform has no minimum credit score requirements, you can feel free to apply for funding no matter what your credit score may be.
Also, given the fact that the site is mobile-optimized, this means that you can apply for a loan using a phone or tablet at any time or day of the week.
Pros
- Multiple loan options
- No minimum credit score requirements
Cons
- Some lenders conduct hard credit checks.
What To Consider When Choosing The Right Loan Site?
As you look to choose an online loan service, it is important that you take a few important factors into consideration.
#1. Loan Rates & Repayment Terms
Whenever you are looking for a lender, it is important that you pay close attention to the interest rates and repayment terms being offered.Â
This is one of the most vital things that we also took into consideration as we compiled this list, as you need to ensure that you are not partnering with a lender that offers unreasonable rates and repayment terms that will only sink you into bad debt.Â
The good news is that all the lending services on this list will allow you to compare multiple loan offers until you find the one that best suits you.
#2. Fees and Charges
It is important to keep in mind that there are several online lenders out there that follow unscrupulous and predatory lending practices by charging borrowers hidden and ridiculous fees and charges.Â
These can potentially sink you deeper into financial difficulty, which is why it is important that you only ever partner with a legitimate and trustworthy online loan company. Luckily, all the platforms on this list will usually vet the lenders that they partner with, so there is no risk of being scammed or falling victim to hidden fees and charges.
What Other Loan Alternatives Can You Consider?
Any of the options on this list should be able to help you secure a loan, even if you have a bad credit score. However, there are also a few other alternative options that you can consider.
Credit union loans: If you are unable to secure a loan from a bank, you can always consider trying to borrow from a credit union. Most of these institutions are willing to provide funding, even if your credit score is less-than-ideal, and they tend to come with low APRs as well. However, to qualify for a loan, you will first need to be a member, so keep that in mind.
BNPL apps: If you want to make a purchase but can’t pay for it in full, you can always consider using “Buy now, pay later” apps. They make it easy for you to afford large purchases by spreading out your payments over several weeks or months with low APRs and fees added on top.Â
However, you should always be cautious, as these apps can be quite addictive, which can lead you to fall into bad debt if you aren’t careful.