5 Best Bad Credit Loans in 2022

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    Having bad credit can seem like a deal-breaker when applying for loans. But there are still some options available for those seeking credit to finance their small businesses. In this article, we have selected the five best bad credit loans in 2022. 

    Best Bad Credit Loans

    Being approved for a loan doesn’t necessarily mean that you’re guaranteed the best rates. Besides, depending on your business needs and credit score, there are some things you should consider before requesting a loan. 

    For the sake of this article, we took into consideration the most important aspects such as how the application works, how quickly the money is made available and credit score requirements. Learn more about our methodology here. 

    Product

    Fees

    Amount available for loan

    Minimum credit score

    Number of days the amount is made available

    Discount for early payoffs?

    One-time borrowing fee of 2.9% to 18.17%

    $5,000 to $500,000

    550

    Next business day

    No

    Minimum of 11.89% APR on long term loans and 10.99% for line of credit loans

    $5,000 to $250,000

    600

    Same-day

    Yes

    Starts at 4.8%

    Up to $250,000

    625

    Next 12h to 24h

    Not applicable (Pay-per-use)

    From 8% to 24%

    $1,000 to $500,000

    560

    1-2 weeks

    Not applicable (Pay-per-use)

    Up to 45%

    Up to $400,000

    500

    Same day

    Yes

    LoanBuilder logo

    LoanBuilder: Best Overall

    Amount available for loan: $5,000 to $500,000

    4.5

    LoanBuilder, formerly called PayPal Business Loans, is a PayPal service that provides short-term loans between 13 to 52 weeks. It is an excellent bad credit loan option for small businesses, as the required minimum credit scores are as low as 550. However, LoanBuilder isn’t available for startups. 

    Users can apply for loans from $5,000 to $500,000, and the amount can be made available to the user’s account within the next business days. This makes LoanBuilder one of the best bad credit loans on the market, as it can lend users a high amount of money for very few requirements. 

    Further, applications can be done online or by phone in up to ten minutes, and the approval occurs instantly. 

    However, LoanBuilder falls short in a few things. Despite there’s no collateral required in order to qualify, borrowers are required a blanket lien, in the event of nonpayment. Also, if users decide to pay off the loan earlier than the due date, LoanBuilder offers no discount. 

    Why we chose it: The loans LoanBuilder offers for bad creditors are relatively inexpensive, borrowers don’t pay any upfront fee, and requirements are low.

    • Low credit score requirement (only 550)
    • Low annual business revenue required
    • Funds are made available the next business day
    • No discounts for paying the loan off early, since a full fee is due at payoff 
    • Not available for startups 
    • Requires a blanket lien and personal guarantee

    Pricing: one-off borrowing fee of 2.9% to 18.72%

    Low credit score requirement 

    As bad credit is the number one hurdle when applying to a loan, we have considered the low credit score requirement one of the most important elements of a good bad credit loan. LoanBuilder can provide loans for users with a credit score as low as 550, the lowest on this list, making it a great option for those looking to rebuild their business finances.

    Easy application 

    Applying for a loan can be as stressful as it is. When applying for credit, users usually need the amount quickly into their accounts – so the faster they apply, the faster the funds are made available. Applying for a loan with LoanBuilder is quick and easy: it can be done online or by phone in up to merely ten minutes via a questionnaire, similar to OnDeck’s KYC formulary. 

    In this questionnaire, applicants are required to state the loan’s purpose, their annual revenue, the number of full-time employees, their industry, and other business and personal information. After that, applicants will select the borrowing amount and the terms before signing their loan contract.

    Funds are quickly made available 

    One day can make a huge difference for someone applying for a loan. After all, the quicker the applicant has access to their funds, the faster they can get to manage their business finance. With LoanBuilder, users can access the amount loaned as early as the next business day. However, it isn’t as quick as Bluevine, in which funds are available within 12-24h.

    OnDeck logo

    OnDeck: Best for Quick Cash

    Amount available for loan: $5,000 to $250,000

    4.5

    OnDeck is a great bad credit loan option, as it allows users to apply for a loan even if they have a credit score as low as 600. In addition, users can apply for up to $250,000, which makes this a great option for companies looking to grow their businesses. 

    The best thing about OnDeck is that the funds can be made available to the user’s account on the same day, so no waiting for the next business day to get things going. In addition, users can apply for a second loan after paying at least half of the original loan. Like LoanBuilder, OnDeck will take a blanket lien and require a personal guarantee. 

    However, those businesses with lower annual revenue might not qualify. That’s because OnDeck requires a minimum of $100,000 annual revenue and be at least one year with the business up and running, so it isn’t suitable for all types of businesses. Similar to LoanBuilder, OnDeck doesn’t offer discounts for paying the loan off early.

    Why we chose it: For business owners in need of quick cash, OnDeck offers loans made available on the same day, it requires a low minimum credit score and if borrowers need another loan, OnDeck allows them to apply for the next one after paying off the first. 

    • Low credit score requirement (600)
    • Offers same-day funding 
    • Allows users to apply for another loan after paying half of the original loan
    • A minimum of $100,000 annual revenue is required
    • Only available for companies in business for longer than one year
    • No discounts for paying the loan off early

    Pricing: Minimum of 11.89% APR on long term loans and 10.99% for line of credit loans.

    Low credit score requirement 

    Although there might be other options in the market that allow loans with even lower credit scores, OnDeck offers a great option for applicants with a 600 credit score. In addition, this bad credit loan allows users to apply for up to $250,000 – a significant amount. 

    However, OnDeck does have other requirements for small businesses applying for a loan: the annual revenue must the higher than $100,000 and the option is only available for companies operating for longer than one year, making it unfit for starting businesses. 

    Easy application 

    Applying for a loan with OnDeck takes just a few minutes. Small business owners can easily apply through the website for both line of credit and term loans, or over the phone. When applying through the website, users must go through a 4-step Know Your Customer (KYC) query. But no need to worry – these steps take only a few minutes. After that, customers can make a decision with the support of a dedicated loan advisor. 

    Funds are quickly made available 

    One of the best features that OnDeck offers for users is it can make the funds available on the same day.  After completing the application and deciding on the best option, users can complete the online checkout and receive their funds on the same day. This can make a huge difference for small businesses, as they can get around their finances faster.

    BlueVine logo

    Bluevine: Best for Startups

    Amount available for loan: up to $250,000

    4.5

    Bluevine offers a line of credit for small organizations that aren’t in business for very long, but need fast and flexible funding, making it a great option for startups. The greatest advantage is the funds are available on-demand and businesses can pay only for what they use. Blueline provides up to a $250,000 credit line and the funds can be made available in the next 12-24h. The minimum credit score requirement is as low as 625.

    Despite its flexibility, Bluevine still requires applicants to prove a $10,000 monthly revenue and personal guarantee. Besides, in specific cases, the company might request borrowers to make weekly repayments. 

    Why we chose it: Bluevine is a great funding option for startups. Credit can be accessed by companies operating for only six months and they pay only for what they use.

    • Available for companies in business for only six months 
    • On-demand credit
    • Users can pay only for what they use 
    • Requires a minimum of $10,000 monthly revenue 
    • Requires personal guarantee
    • May require weekly repayments 

    Pricing: Rates start at 4.8%. The rate is a simple interest rate that is calculated from the total repayments over 26 weeks.

    Low credit score requirement 

    Bluevine fits our most important methodology: it provides a credit line for small businesses with a low credit score, but slightly higher than Credibly and LoanBuilder. Applicants only need a 625 credit score to apply for a credit line with Bluevine. 

    Easy application 

    Bluevine provides a quick and easy application. Users can apply online by providing basic information about their businesses – faster than LoanBuilder and OnDeck’s KYC. To top it off, they get an answer just five minutes after sending the application. 

    Funds are quickly made available 

    No need to wait until the next business day to access the funds. With Bluevine, users can access their funds within the next 12-24h – which makes Bluevine the quickest on the list. 

    And there’s more: applicants can access more funds as they pay off their balance, as their available credit automatically replenishes. 

    Lendio: Best for New Businesses

    Amount available for loan: $1,000 to $500,000

    4.0

    Lendio is a lending marketplace that matches small businesses with over 75 different lenders, allowing applicants to choose the offer that best fits their needs. Lendio offers a line of credit for businesses with as low as $50,000 annual revenue and only six months of operation, making it a great option for new companies looking for funding. 

    The company requires a minimum credit score of only 560, and the approved credit line can reach up to $500,000. In addition, applicants don’t necessarily need collateral for a business line of credit: users can get an unsecured line of credit that does not make this requirement. However, this can result in a higher interest rate.

    Lendio falls short on a few aspects that its competitors are doing much better. For instance, funds are available for approved applicants only within one or two weeks. Lendio also requires applicants to prove a minimum annual revenue of $50,000, and Lendio loan terms are one or two years.

    Why we chose it: Lendio is available for new businesses with only six months of operation. Moreover, users only pay for the funds they use, and the credit score requirement is as low as 560. 

    • Low credit score requirement (560)
    • Available for companies in business for only six months 
    • Users can pay only for what they use 
    • Loan terms of only one to two years
    • Requires a minimum annual revenue of $50,000
    • Funds are made available only within one or two weeks

    Pricing: Interest rates can go from 8% to 24%, depending on the lender the small business goes with. Some lenders can ask for a personal guarantee.

    Low credit score requirement 

    Lendio is one of the best bad credit loan solutions because it matches small businesses with over 75 lenders. Users with credit scores as low as 560 – slightly higher than Credibly – and they can easily apply for a loan and pick the offers that best suit their needs.

    Easy application 

    Applying for a loan with Lendio is quick and easy. Applications can be done in up to 15 minutes online through the Lendio website. Once this step is complete, users can have immediate access to offers from multiple lenders that can provide their small businesses with a line of credit. 

    Funds are quickly made available 

    Lendio is a great bad credit loan solution. Because this is a marketplace, it offers a broad set of options for lenders. However, one of the downsides of Lendio is that, because the platform is not the originator of the loan, the funds aren’t available faster than other options on the market, such as Bluevine (12-24h) and OnDeck (same day funding).

    At times, it can take up to two weeks to get access to the credit line. For that matter, Lendio is probably the best option for small businesses that can work around this timeframe. 

    Credibly logo

    Credibly: Best for Bad Credit

    Amount available for loan: Up to $400,000

    4.0

    Credibly is a bad credit loan solution that offers the lowest minimum credit score. It requires a minimum of a 500 credit score and small businesses can take loans of up to $400,000. Applicants can apply for a loan after merely six months of business, making it an excellent option for newborn companies. 

    Further, Credibly offers a wide range of small business loans. Companies can apply for a working capital loan, a business expansion loan, a line of credit, and much more, and funds are available on the same day. 

    The downside of taking credit with Credibly is that it requires a minimum of $15,000 monthly revenue from lenders as well as weekly or even daily repayment, depending on the case. Users are also charged with a yearly rate for a loan called Anual Percentage Rate. 

    Why we chose it: The reason we picked Credibly is that it offers the lowest minimum credit score requirement. While other options in the market require a minimum of a 550 credit score, Credibly requires a minimum of a 500 credit score, making it a great option for small businesses with bad credit. 

    • Lowest minimum credit score (500)
    • Available for companies in business for only six months 
    • Funds can be made available on the same day

    Pricing: The APR can reach up to 45%. In addition, Credibly will charge a 2.5% origination fee in addition to the factor rate, which can start at 1.15 and o up to 1.45.

    Low credit score requirement 

    Credibly offers the best match for our number #1 criteria, as it requires the lowest minimum credit score. Users with a 500 credit score can apply for multiple types of loans and receive up to $400,000 in funding – the lowest credit score requirement on the comparison. 

    Easy application 

    Applying for a loan with Credibly can be done online in three simple steps. First, users will have to pre-qualify and answer basic business information at the Credibly website. Once completed this step, applicants’ can expect a response within the next four hours from a loan advisor, who will discuss the best options the applicant has qualified for. 

    Funds are quickly made available 

    Once the loan is approved and the offer is accepted, the funds are made available in the user’s bank account on the same day. This allows small businesses to quickly access the amount and get things going! 

    Methodology for the Best Bad Credit Loans

    The main element that was considered for this review was the minimum credit score requirement specifically for small business loans. As we are listing the best bad credit loans, it is imperative that the minimum credit score requirement for applying for a loan is under 650. 

    The next criteria we picked was easy application. Nobody enjoys a trip to a bank branch, no matter how attentive your manager can be. For that matter, simple-step online applications were considered a major benefit. 

    Finally, we have also taken into consideration how fast the funds can be made available to the user’s account, as this provides more flexibility for small businesses that need quick access to the money. 

    LoanBuilder delivers all of these criteria, making it the best bad credit loan among the listed options. It also requires a low minimum annual revenue, which makes it a more democratic solution for small businesses. 

    • Low credit score requirement: LoanBuilder offers one of the lowest credit score requirements. Users only need a 550 credit score to apply. 
    • Easy application: LoanBuilder provides an easy application process that can be done online or by phone, and the approval occurs immediately after. 
    • Funds quickly made available: Upon approval, LoanBuilder makes the funds available on the user’s account within the next business day.
    • Low minimum annual revenue requirement: This feature is an important element that makes LoanBuilder our top pick. Small businesses with as low as $42,000 annual revenue can easily apply for a loan and use the funding to expand. 

    While there are options that allow loans with lower credit scores or that make the funds available on the same day, LoanBuilder offers the best of each world, and that is why we chose it as the best bad credit loan.

    Frequently Asked Questions (FAQs) for Best Bad Credit Loans

    Still not sure about the best bad credit loans out there? Here are a few Frequently Asked Questions on the subject.

    Bottom Line on Best Bad Credit Loans

    Running a small business can be very challenging – especially when it comes to managing the company’s finances. For that matter, some companies often need to apply for a loan to have quick access to funding to expand their businesses. However, not many businesses have a good credit score, meaning it can be difficult to get approval. 

    Fortunately, there are a number of online bad credit business loans for small businesses such as LoanBuilder, OnDeck, Bluevine, Lendio, and Credibly. In addition to a low minimum credit score requirement, these solutions provide an easy application process that can be done online within minutes. 

    To top it off, most of these options can make the funds quickly available in the applicant’s account. Users can access the money within two weeks at most – or even as soon as the same day!