Instant Approval: 3 Types of Bad Credit Loans Explained!

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Updated: May 11, 2023
author photo Written by Louis BakerUpdated: May 11, 2023
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Can I get a guaranteed approval loan regardless of my credit score?

As a borrower with a bad credit score, obtaining a bad credit loan with guaranteed approval sounds like an exciting offer, but it is unrealistic.

In fact, in the finance field, it is not possible to get a guaranteed approval loan, no matter how good or bad your credit score is. Therefore, anyone offering you a 100% guaranteed loan approval is luring you into a trap, and you should avoid them.

That said, when you have good credit, it is easier to take a loan from online lenders, your bank, or a credit union or apply for a cash advance on your credit card, especially in an emergency.

However, things get complicated if your credit history is far from perfect. Indeed, you have limited options when your credit is poor, but it is still possible to secure a loan.

If you have a bad credit rating and are looking for a bad credit loan guaranteed approval, we are here to help. CreditYelp understands how hard it can be to find a loan, and we have partnered with various lenders who are ready to consider your bad credit loan request.

What are bad-credit personal loans?

Bad credit personal loans refer to loans issued to borrowers with bad credit scores or thin credit history.

These loans may be used for various purposes, such as consolidating existing debt, financing a home project, paying an emergency expense, or other short-term financial needs.

Lenders do not look at your credit score alone to obtain a bad credit loan. Other factors like your employment status, income, and the amount you want to lend are considered to evaluate your loan application.

Bad credit loans work like other personal loans; they have fixed rates and are repaid in fixed monthly installments. It is feasible to qualify for a personal loan with bad credit. However, you should expect higher fees and higher interest rates.

3 Types of bad credit personal loans that are guaranteed with instant decision

When you send your application for a bad credit loan, it is possible to get a guaranteed instant response as to whether your loan was approved or not. The following three types of loans can meet this criterion.

# Payday loans

Payday loans are also referred to as cash advance loans or check advance loans. Most payday loans are unsecured, so you do not have to give the lender any collateral.

They are short-term loans with very high-interest rates. These loans range between $150 and $5000.

A payday lender will require you to present proof of your current income, like your pay stubs from your employer, after which you will be lent a portion of your future paycheck. You are expected to repay the loan on your next payday, usually within 30 days.

Payday loans are simple and straightforward for bad credit borrowers to obtain because there is little credit check done as long as you can prove that you have a sustainable source of income. After you provide evidence of your earnings and are approved, the money you request is deposited into your account within one to three days.

When you apply for these loans, your lender can accept repayment electronically via direct deposit, a signed payment authorization also called ACH authorization, or other payment processors. Depending on the lender, they may also allow you to make payments through debit or credit cards.

The primary benefit of payday loans is that the lending policy is not strict and, thus, relatively easy for bad credit holders to apply. The challenge, however, is that the repayment term is short, and they have interest rates as high as 400%. This implies that if you do not repay the loan promptly, it can compound into a debt trap.

Many lenders charge additional fees, like processing, maintenance, and late fees. Before taking out a payday loan, it is imperative to weigh the pros and cons carefully and review the terms of the loan to ensure that you can pay it back promptly.

# Installment loans

Installment loans are also known as installment credits. They are a lump sum of money you receive and pay off in fixed monthly installments over some time, typically months or years.

Installment loans can also be secured with collateral or unsecured. Most installment loans are unsecured and usually have lower APR, fees, and charges than other unsecured short-term loans, like payday loans.

Installment loans are long-term loans, and to ascertain that you will fulfill the repayment condition, lenders will request proof that you have a job with a reliable monthly income. Your credit score affects your approval for an installment loan, and a higher credit score will receive a better APR.

Secured installment loans include:

- Auto loans: An auto loan is a loan taken to purchase a vehicle. This type of loan is typically secured by the car that is being purchased, and repayment is usually done in monthly installments over the duration of the loan.

- Mortgage loans: These are secured loans used to buy a house. The house is used as collateral until the loan is repaid. The repayment term usually ranges between 15 to 30 years.

Unsecured installment loans do not require collateral. They are typically granted based on the borrower's credit score, creditworthiness, and ability to repay the loan. Your income, debt-to-income ratio, and financial history can also be considered when determining whether or not to grant an unsecured installment loan.

Unsecured installment loans include:

- Personal loans: Personal loans can be used by individuals to finance various purchases or activities.

They can be used for large purchases, such as home improvements, consolidating debt, paying medical bills, etc. They are also sometimes referred to as signature loans and can be used to purchase a new car or pay for a vacation.

- Buy now, pay later loans: These loans allow borrowers to purchase a product or service now and have the payments for that product or service spread out over time, usually about 6 to 24 months. These loans are typically offered by online lenders and are meant to give customers access to short-term financing when needed.

- Student loans: Student loans are specifically designed to help students pay for their tuition and other educational expenses. They are often offered at low-interest rates and can be used to pay for tuition, books, fees, and other school-related expenses.

Student loans require a credit check and a cosigner, and the amount of money that can be borrowed depends on a student's financial needs and other criteria. Repayment of student loans typically begins after graduation.

After approval for an installment loan, the money is deposited into your account. The loan amount and the interest are then repaid as scheduled in the agreement.

When you apply for an installment loan, a hard credit check is often required, which can temporarily reduce your credit score by a few points. However, bad credit installment loans can help improve your credit score with time when you make prompt payments.

One way to ensure timely payment is to set up an auto-debit schedule with your lender. Your lender will report your on-time payment to the credit bureaus, and your credit score can improve as you pay monthly as scheduled.

Overall, installment loans can be a great way to make larger purchases that you may not be able to make with short-term loans.

# Title loans

Title loans are loans that require an asset as collateral, and the most common form is a car title loan, where your vehicle is put up as collateral.

Title loans can be obtained by bad credit holders because your credit score is not considered for your qualification. These loans are also short-term, high-interest loans.

To apply for a title loan, a potential borrower presents proof of ownership of the car and signs the title of his vehicle over to the auto title loan company. The borrower is lent between 25% to 50% of the value of the car, while the car's title is kept as collateral in case the loan is not paid in time.

Title loan amounts are usually $1,000 and higher, and you are expected to make a lump-sum repayment of the loan. The loan term is usually 15 to 30 days, but it can extend further depending on the lender.

Title loans are available for boats, motorcycles, and other recreational vehicles. They are usually attractive, especially to people with bad credit because of the following reasons:

- They are quickly approved and funded, usually within a day or two.

- They are easier to obtain than unsecured loans because they are backed by collateral.

- They don't require hard credit checks.

However, you must be aware of the risk associated with this short-term loan. Most title loan lenders charge a monthly fee of about 25% of the loan amount, which amounts to a minimum APR of 300%.

This interest rate can put the borrower in a debt trap when repayment is not duly made. Also, you can lose your assets if you don't repay in time. Before you take out a title loan, make sure you have the capacity to pay in time to avoid incurring more financial burdens. Furthermore, you should:

  • Compare interest rates and fees from different lenders.
  • Read the loan agreement thoroughly, and always ask questions if you don't understand.
  • Make sure you have a payment plan and stick to it.

Get a bad credit loan with a guaranteed instant response with CreditYelp

Intro of CreditYelp

CreditYelp is an online broker that connects clients who need bad credit loans to, suitable lenders. We are aware of how stressful it could be to borrow money, especially with bad credit, and we are committed to helping you secure a loan to ease your financial stress.

We provide objective and all-inclusive information as well as expert comparison and evaluation so you can make informed financial decisions. You can take advantage of our affiliation with over ten quality loan groups on our platform to obtain a bad credit loan with a guaranteed instant response.

Get an Instant Bad Credit Loan Now!

If your credit falls into the bad credit range, most lenders and banks will likely see you as a credit risk. This is where CreditYelp comes to the rescue.

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  1. You shop around and compare as many lenders as are available, and you submit your application.

  2. Your application is reviewed, and you get an immediate response as to whether your request has been approved or not.

  3. If your request is approved, you will be offered an agreement that includes the loan terms and fees.

  4. If you accept the terms, you sign the agreement.

  5. Wait for your guaranteed loan to be deposited into your account the same day or the next.


  • Our services support and are friendly to borrowers with bad credit. Your credit score or financial status is not a hindrance.

  • We have cooperated with over ten legitimate and reliable lenders who have loan qualifications with NMLS ID#.

  • Our partner lenders usually offer a higher loan limit and more affordable interest rates.

  • Our partner lenders do not have hidden charges and provide better repayment terms.

  • If your loan is approved, you can get funded as soon as the next business day.

How Fast Can CreditYelp Approve Quick Loans for Bad Credit?

CreditYelp partner lenders are known to provide fast bad credit loan decisions when you apply, and most loan applicants become qualified. Generally, loan approval decisions are almost immediate, with some customers getting approved in as little as a few minutes, but approval is not always guaranteed.

The whole process typically takes less than an hour to complete. However, the actual disbursement of funds varies between 1-3 business days, depending on the user's bank.

Applying for a loan on days when banks are not functioning, like weekends or holidays, will slow the funding process. It is best to make your loan request during business hours to get a prompt response.

To speed up the process even further, cross-check that you filled in the necessary information on your loan application accurately. Any error on your loan form can delay the loan approval process or lead to a denial of your request.

Will CreditYelp Offer Emergency Loans for Bad Credit?

CreditYelp helps connect borrowers with reputable lenders who offer emergency loans for bad credit. We understand how urgent emergency loans are, so we provide you with a community of lenders that give instant decisions.

Unexpected expenses are difficult to predict, whether it's an urgent medical bill, a broken-down car, or a plumbing problem. CreditYelp can help you resolve the problem even with bad credit. We have many lenders in our network that are ready to grant your application.

Loan amounts range from $500 to $5,000, and once you are approved, the funds are deposited in your checking account on the same day or the next.

We have simplified the loan application process, so you can get the loan you need quickly and with minimal hassle. All you need to do is fill out a few quick questions, and our system will match you with a lender that suits your needs.

Will CreditYelp Offer Installment Loans with Bad Credit?

CreditYelp is not a direct lender so it doesn't directly offer installment loans with bad credit, but it can connect you with lenders who do. Once you fill out a short form, CreditYelp will match you with the most suitable lenders.

However, the amount you can borrow and its interest rate depends on your creditworthiness. Our partner lenders specially cater to customers with bad credit or no credit at all, so, you would most likely find a reasonable offer.

Installment loans are a good option for people with poor credit. Loan terms range from 3 months to up to 60 months, giving customers the flexibility to choose payments that fit their budget.

It's important to remember that installment loans with bad credit come with higher interest rates and fees than conventional loan products. To save money, opt for shorter loan term lengths and shop around for the best rates.

Four Factors to Consider Before You Select a Bad Credit Loan


Examining the time involves knowing the approval process time and the funding time. Different lenders have different application processes that affect how long it will take you to eventually receive the funds.

Depending on the lender, approval time can range from as low as a few minutes to several days. And funding time can vary from the same day to several days.

Your choice should be based on how urgently you need the money. If you need the money almost immediately, it is not best to go for lenders that will require you to wait for days before making an approval decision.

Instead, you should opt for a lender that approves quickly and promises instant funding upon approval. If the need is not pressing, you can choose a lender that takes longer.

Interest Rates / Costs

When applying for a loan with bad credit, it is difficult to get favorable rates like someone with good credit. However, there are lenders that give reasonable rates. When selecting a bad credit loan, you need to consider the interest rate and the associated cost of the loan.

For example, some lenders may charge a one-time origination fee which can significantly increase the APR of your loan. It is important that you research and compare interest rates, fees, prepayment penalties, and repayment periods for the different lenders available to select the cheapest option.

There are lenders that specialize in providing bad credit loans with fixed interest rates that are affordable. It is advisable to go to them because you have the opportunity to improve your credit score if you repay your loan promptly during your loan term.

Rules and Regulations

Before you sign a contract with a bad credit loan lender, you should thoroughly review their rules and regulations. This is a vital step to take, especially if you want to obtain a loan via an emergency loan platform. A loan platform basically connects you to an available lender and is not responsible for the loan terms and conditions.

It is up to you to read and understand all of the terms and conditions of the loan agreement. Make sure you understand the repayment terms, interest rates, and other terms and conditions.

Pay close attention to the repayment schedule and the amounts that will be due each month. Do not hesitate to ask questions and ensure you understand the answers. Before signing the contract, ensure you are comfortable with the terms and can easily repay the loan. Also, look for any hidden fees that may be charged.

Security and Privacy

In this digital age, we are more prone to cyberattacks. To avoid being a victim, research the security measures that your lender has in place before revealing your details. Ensure they use encryption to secure your data and that their connection is verified by a trusted third party.

Furthermore, find out what will be done with any information you divulge. A reliable lender will have a strict policy to ensure that your personal information is kept safe and secure.

They will also make sure your details are only shared with trusted partners involved in the loan application and setup. If you have doubts about a lender, it is best to choose a more trusted one.


What is the difference between a soft and hard credit check?

A soft credit check is an inquiry into your credit report by a financial institution, such as your lender, that does not affect your credit score. It is often used for pre-qualifying for a loan or credit card or to check and receive a copy of your credit report.

On the other hand, a hard credit check is an inquiry into your credit history that can affect your credit score. It is typically used when you apply for a loan, credit card, or mortgage. Lenders will use hard credit checks to determine your creditworthiness and assess the risk of offering you a loan.

There are no direct lenders that offer loans without a hard credit check. All lenders conduct some type of credit check when approving loans and will typically review your credit report in order to assess your creditworthiness.

By conducting a hard credit check, lenders can see whether or not you're a responsible borrower and if you're likely to pay back the loan.

It is possible to obtain a loan with no credit checks. Some options for no-credit-check loans include payday loans, secured loans, and title loans. Each option has its own requirements and terms, so it is important to know which suits you before committing to them.

Payday loans are short-term, high-interest loans available for emergency expenses. They are typically taken out for two to four weeks, and the loan is repaid when the borrower receives their next paycheck. Payday loans generally require proof of income, but no credit check is required.

Secured loans are those that are backed by collateral, such as a car or house. The lender will verify the borrower's credit score, but the loan doesn't require a credit check. The collateral must equal the value of the loan.

Finally, title loans are secured loans that are backed by the title of a vehicle. The lender will check the borrower's credit score but will not do a hard credit check. The value of the vehicle title determines the loan amount, and the borrower must be able to pay back the loan in full.

Will getting a loan hurt my credit score?

Depending on your payment behaviors, getting a loan can either hurt or help your credit score. Your credit score may improve if you make all of your payments on time and in full.

However, if you make late payments, do not make payments at all, or have to default, it will negatively affect your credit score. It is important to remember that even if a loan can help your credit score, it is also a large financial responsibility and should not be taken lightly.

A bad credit loan can hurt your credit score. Your credit score takes into account a variety of factors. Taking out a bad credit loan may trigger a review of your credit report, which could result in a decrease in your score.

Additionally, bad credit loans typically have higher interest rates, and if you are unable to pay the loan back on time, this can lead to delinquency or default, both of which will significantly lower your credit score.

Therefore, it is important to be very careful when taking out a bad credit loan. Be sure to read the terms of the loan and make sure you are able to pay it back in a timely manner. Additionally, looking for lenders that offer loans specifically for people with bad credit may be helpful, as these can have more favorable terms.

The risks of bad credit loans include higher interest rates, difficulty getting approved for other loans or credit cards, difficulty in finding a lender for a loan, as well as potential consequences for defaulting on the loan.

Also, bad credit loans often have other requirements, such as high fees, collateral, shorter repayment terms, and limited loan amounts. Furthermore, there is the risk of falling into a debt trap. If borrowers are unable to make their repayment each month, they risk getting deeper into debt and not being able to escape.


This article provides a comprehensive overview of what bad credit loans are and the available types of bad credit personal loans that are guaranteed with instant decisions. It also explains important factors to consider before selecting a bad credit lender.

CreditYelp is a user-friendly platform that connects customers who need bad credit loan approval with suitable lenders. Our easy application process makes it simple and straightforward to apply for a loan even with a low credit score. With our community of lenders, you get an instant loan response. Get started with us today.

author photo

Written by

Louis Baker


Louis Baker started his career in 2017 by contracting with Experian. He also became a part-time content creator in various fields such as insurance, personal finance & investment, etc.

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.
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