December 2, 2023


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Which Online Loans Can I Get With Bad Credit?

Bad Credit Online Loan

Bad Credit Online Loan

At some point in life, we all go through financial struggles, and if you happen to have a bad credit score, it can often be tough to secure a loan that can help alleviate those problems. In such times, you can often apply to get quick loans online via CocoLoan, as most online lenders are often willing to accept applications from borrowers with bad credit.

And the benefits of applying for such loans online are numerous. For one, they provide borrowers of all credit types with a way to access the funding that they need when they need it. They are quick and simple to apply for, with the entire application process handled completely online.

Also, since online loans are easily accessible, they can be a great way to improve your credit score, as long as you consistently make timely payments, which shows lenders that you can be a responsible borrower. In addition, online loans can be typically used for pretty much any purpose, e.g. debt consolidation, car repairs, medical bills, home renovations, etc.

It is for this reason that we put together a breakdown of some of the main types of loans that you can get online today.

Online Loans To Apply For With Bad Credit

There are several different types of loan options that you can choose from online, and the good news is that many of them are available to borrowers with bad credit. Some of these include;

#1. Unsecured online personal loans

These types of loans come with high loan limits, and since they are unsecured, this means that you don’t need to put up any collateral to get the funding you need. Some common examples of unsecured online personal loans typically include bad credit loans, same-day loans, quick loans, etc.

Sarah Ross, the co-founder of CocoLoan, added, “These loans can be a great way for borrowers of all credit types to secure high loan amounts with predictable repayment terms to pay for a wide variety of expenses.” It is often for this reason that they are often used to finance significant expenses, like medical bills, home improvement projects, higher education costs, etc. 

However, while these loans are typically accessible to borrowers of all credit types, the downside of using online lenders is that they are likely to come with high APRs and late payment fees.

#2. Secured online personal loans

Secured personal loans usually require you to put up some form of collateral, like a car or even a home, before being approved for funding. Some of the most common types of secured loans include mortgages and auto loans. The benefit of this form of financing is that you will usually have access to lower interest rates than unsecured personal loans. 

This is because secured loans are less risky since they provide lenders with an asset that ensures they can get their money back even if the borrower ends up defaulting. However, the downside is that if you default, they can repossess your vehicle or foreclose on your home, which is why you should only borrow these types of loans when you are 100% confident you can make your repayments on time.

#3. Payday loans

These are short-term loans that are essentially used as small cash advances to tide you over until your next payday arrives. In most cases, these loans don’t exceed more than $1000 on average, which makes them suited for dealing with small expenses like car repairs, utility bills, travel costs, etc.

However, you should also keep in mind that states tend to regulate these loans differently, so the loan amount, fees, and time to repay can significantly vary depending on where you live. When it comes to repayment, most payday lenders will usually take the money automatically from your account on your payday, plus any interest or fees. 

Furthermore, payday loans are notorious for coming with extremely high interest rates that can even go into the triple digits. As a result, you should only ever consider taking these loans if you have exhausted all other lending options available to you.

Are Loans From Online Lenders Safe?

Loans from online lenders are generally safe, but it is important that you use legitimate lenders. The problem is that finding the right loan provider can be difficult, especially with such a saturated online market. 

A good rule of thumb to remember is that any reputable lender will usually check your credit, disclose the terms and costs of the loan, as well as verify that the loan will not negatively impact your finances before approving your request. In this regard, we often recommend that you use an online credit broker like CocoLoan, as they only ever partner with legitimate and trustworthy lenders.

Tips When Applying for an Online Loan

While securing a loan with bad credit is difficult but not impossible, it is important to keep in mind that the loan is very likely going to be more expensive. After all, the lower your credit score, the riskier you are to the lender. It is for this reason that it often helps to improve your credit score first before applying for an online loan via CocoLoan’s lending network.

And while it can take you a long time to move from a bad to a fair credit score, there are a few things that you can do to raise it a little higher than it already is. For starters, you can check to see if there are any irregularities in your credit report that may be unfairly lowering your score. If you spot an error, then it can help to dispute that information with the relevant credit bureau.

Another option is to start repaying any current debt that you may still have. This can help reduce your score dramatically since it affects your credit utilization ratio, which essentially makes up about 30% of your credit score. As such, the lower you can get it, the better your score will be, so if you have any outstanding credit card balances, you should prioritize paying them off.

Another option to consider is building up your credit score using a credit service like Experian Boost. This allows you to use any payments that you make for utilities and other eligible service payments to help boost your credit score.

Alternatives to Loans When You Have Bad Credit

If you’re having trouble getting approved for a loan and are in need of cash in a hurry, there are still some alternative options that you can consider as well.

#1. Ask a Friend or Family Member

While nobody wants to ask a friend or loved one for money because of the uncomfortable nature of the situation, sometimes it may be your best financial solution. After all, while it may be unpleasant, most friends and family members will rarely charge you any interest on your loan. Plus, they are also likely to give you a more favorable repayment schedule than a typical lender.

#2. Credit Cards

Credit cards can be a viable option, especially if you simply need a quick way to handle a small financial emergency like paying for a medical bill or making an important purchase. However, do bear in mind that their interest rates tend to be significantly higher than personal loans, and since these rates tend to be variable and not fixed, this can potentially raise your overall debt level as well.


In short, there are a multitude of loan options that are available to you, even if your credit score is less-than-stellar. These also tend to be flexible, and they can be used for any purpose, which makes them ideal for anyone dealing with unexpected financial difficulties. 

However, it is always crucial that you take the time to compare multiple loan offers first before you decide to sign any loan agreement. In such cases, a credit broker service like CocoLoan can often come in handy, as they make it easy to pre-qualify and compare multiple lenders to see your potential rate without affecting your credit score.

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