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While it used to be difficult to secure large loans if you have a bad credit, a good rating is not anymore the major requirement. True, traditional lending institutions such as banks still require a high credit score for certain types of loans but thanks to online lenders, you can now obtain large unsecured loans even if you have a poor payment history. Such loans can offer even as much as $15,000; and because they require no credit check, you can expect a faster approval if you are qualified.

What Are Online Bad Credit Loans?

Bad credit loans offered by online lenders are usually unsecured loans that don’t require a credit check. They come in many forms, including installment, payday and cash advances. Although generally payday and cash advances only offer small amounts, from $100-$1500, installment loans may offer as much as $15,000 even if you have a bad rating.

Each type can vary in terms of payment terms and size of loan. However, the requirements are just similar.


There is this popular belief that bad credit loans are very easy to secure and that the most important requirement is a stable source of income. There is some degree of truth about this, but not all of those people with a stable source of income can get 100% approval.

A proof of income (pay slips, and income tax return for the self-employed) is an essential requirement to securing bad credit loans, and this source of income should also be reliable. Most importantly, to ensure approval, you should be able to convince your lender that you can pay back the loan based on debt-to-income ratio. The rule of thumb is not to apply for an amount that exceeds 40% of your monthly income, and this is if you have no existing loans. If you apply for more than 40% of your monthly income, your application will likely be rejected. This is of course for payday and cash advance types of bad credit loans.

If, however, you are in need of a large amount of money to make a major purchase, you may need to present collateral. Note that by presenting collaterals, which can be in the form of valuable assets such as real estate properties, you are also risking these assets. Your lender will take the collateral in case you are unable to pay for your loan.

Another thing, although not required, that may make a huge difference on your bad credit loans application is to find a cosigner who has a good credit rating. A co-signer will also become responsible once you default your loan.

Keep in mind that getting approval on bad credit loans is not all about being able to submit the requirements but also being able to show to the lender that you will not run away after you secure the loan.