Legitimate Loan Companies for Bad Credit: How to Find the Right One

If you’re looking for a legitimate loan company for bad credit, it can be tough to know where to start. There are so many companies out there that claim to be the best, but only a few of them are actually legitimate. 

How do you know which ones are safe and trustworthy? And more importantly, how do you find the right one for you? In this article, we will discuss the important factors to consider when choosing a loan company, as well as some of the best options available.

Before you can get approved for a bad credit loan, you should first understand what a personal loan is.

What is a personal loan?

Personal loans are short-term loans from a financial institution, usually a bank or credit union. 

The money is paid back over a specific period of time, usually in fixed monthly installments. Personal loans generally do not require collateral, and the amount borrowed can range from $1,000 to $50,000. 

They also come with fixed interest rates and payment terms, and borrowers typically have one to seven years to repay the money. 

This type of loan is useful for a variety of purposes, from making a home purchase to completing a major remodel.

What are Bad Credit Loans?

A bad credit loan is an unsecured personal loan that allows people with poor credit to acquire the funds they need to pay off debt, purchase a new car, or make other major purchases.

The name bad credit loans refer to the fact that people with low credit scores need to find lenders who are willing to offer them money. These lenders will give you money based on your history, not your income. You can find companies that offer lower interest rates than you would find from your average bank or credit union.

Bad credit loans are a perfect way to get the money you need if you have a poor credit history. You may need money for vehicle repairs, medical expenses, or broken appliances. 

A bad credit loan can help you get from paycheck to paycheck. You may also need money for a large purchase such as a home. This is where bad credit loans come in handy. You can also use them to finance your education. Getting a loan is easy, but you must be able to provide evidence that you will be able to pay off the loan.

However, it is important to remember that bad credit loans will report your debt to all three credit bureaus, so you should be sure to pay them back on time.

To know more about bad credit loans you can read our article: “Get Personal Loan With Bad Credits: Learn Every Aspect of It


Top Legitimate Loan Companies for People With Bad Credit

Here are some of the best and most legitimate loan companies for people with bad credit. These companies may not be as well-known as CashUSA, PersonalLoans, SeedFi, MoneyMutual, etc., but they are certainly worth a look. 

Take a look at the reviews and ratings of these companies to make sure they are legit. We have also listed some of our personal experiences with these companies.


CashUSA, being one of the legit lenders offers a loan application process that requires a minimal amount of information. Applicants can choose to submit their loan application online, manually, or opt for an autopay option that automatically draws repayment funds from the customer’s bank account. 

Once approved, CashUSA distributes the application to a network of lenders. These lenders can then determine whether to offer the loan to the applicant based on their internal lending standards. If an offer is made, CashUSA will send a contract page to the customer for review.

The CashUSA website is easy to navigate and provides a secure form that allows you to enter additional information such as your credit score, job title, and income level. The loan amount varies from $500 to $10,000, and repayment terms range from three to 72 months. 

It is difficult to find CashUSA loan reviews online, but the company is well-reviewed on finance and money management websites. A CashUSA loan profile is relatively lacking in customer reviews and does not appear on the BBB website. While CashUSA is highly rated by many finance and money management websites, it fails to respond to at least six consumer complaints.


If you have a bad credit history, PersonalLoans is a great way to secure fast funds. Its online platform connects you with dozens of legit lenders, who can approve your loan application without requiring credit checks

You can apply for a personal loan with as little as $500 and as much as $40,000. The site is similar to BadCreditLoans, allowing customers with bad credit to borrow hundreds of dollars, with more available proof of monthly income.

Many people with bad credit can borrow from $300 to $1,500. The amount of money you can borrow depends on your circumstances, but most lenders offer loans of $500 to $1500. 

PersonalLoans also offers loans up to $15,000 for borrowers with even the poorest credit. Most companies transfer the money to your bank account within a day or two, but some offer fast approval and same-day transfers.


It’s no secret that unexpected expenses can disrupt your financial plan. Studies have shown that 35% of Americans can’t cover a $400 medical bill with cash alone. Other common unexpected expenses include car repairs, home appliance breakdowns, or medical bills. 

To help you navigate these stressful times, SeedFi has a range of financial products available. Whether you need emergency funds or are looking to build credit, SeedFi can help.

This company operates in most states, though it does have holdouts in some areas. It offers term loans for people with bad credit, including a savings component. Once you pay back your loan, you will have a savings account with cash savings. 

Although a savings account can be helpful, it is not the best option for every situation. For those who are struggling to pay their bills, SeedFi can help you avoid this situation by helping you build your credit score while repaying your loan.


The main difference between a traditional bank and a loan company with MoneyMutual is the organization. A bank may have a complicated organizational structure and require many different steps to process your loan application. 

MoneyMutual, on the other hand, can help you sort through the numerous loan companies and find the best one. Its database contains over 90 lenders and compares their offers to yours. Once you have a loan offer, MoneyMutual will forward it to the lender’s website and review your information.

The MoneyMutual website is easy to navigate and allows borrowers to fill out their application forms for free. While the information they provide is free of charge, it does require a small fee for the loan. 

Users should be aware that the MoneyMutual process can take some time. For example, a typical loan application process requires borrowers to fill out dozens of applications.


If you have bad credit, you’ve probably heard of BadCreditLoans. This popular online platform helps consumers borrow from $500 to $10,000. 

All you need to do to apply is provide your ZIP code, date of birth, and last four digits of your social security number. After confirming that you’re eligible, you simply submit the loan application form and wait for your lender to contact you. BadCreditLoans doesn’t charge any extra fees. 

BadCreditLoans is a trusted source of high-profile lenders and helps consumers avoid common scams.

The website has hundreds of legitimate businesses registered with it. BadCreditLoans is safe and secure, and the loan funds are typically deposited within 24 hours. PickALender is another legitimate bad credit loan company. 

Funds Joy Loans

If you are looking for a legit loan company for bad credit, you might want to consider Funds Joy. They offer flexible loan amounts of up to $5,000 and make the application process incredibly convenient. 

They even have an option to approve you the same day! They are a direct payday lender that uses advanced security encryptions to protect your information. They do not store or give out all of your personal information, only vital data to credit bureaus. 

Lastly, they never keep your login details or other private information.

When applying for a loan, it’s best to get your credit report and review any errors. Then, plan out your spending. 

While it’s never ideal to take a loan without knowing what you need to spend it on, planning is the best way to make the most of your money. You should also be aware of the loan terms and conditions to avoid surprises and pitfalls.

How Do I Know if a Loan Company Is Legitimate?

If you want to know if a loan company is legitimate or not then the best you can do is your own research and know certain ways to spot spam lenders. 

Here are 8 ways through which you can spot spam lenders and know if a loan company and its representative are legitimate or not: 

Lender Guarantees Approval Without Credit Check

Firstly, how to spot a loan scam? To ensure that you aren’t getting ripped off, find out as much information about the lender as possible. Look for contact information, such as a physical address and telephone number.

Also, check for the Better Business Bureau’s registration, and look for reviews from past customers. In addition, make sure the website is secure by looking for a padlock in the URL. Most legitimate lenders encrypt their websites with a security certificate.

Beware of websites that promise loan approval without a credit check. While a legitimate lender will check your credit score, many scammers don’t bother. They are just after your personal information.

Legitimate lenders will ask for proof of income before approving you. Additionally, be sure the lender you are dealing with is registered in your state. If a lender isn’t registered, it’s not a legitimate lender.

The Lender Requests Fees Upfront

One sign of a scam loan is when a lender asks for fees in advance. Legitimate lenders will roll these costs into the total loan cost.

Fraudulent lenders, on the other hand, will try to extort you for an upfront fee by creating a fake ACH deposit that appears as pending in your bank account, draining your gift card and never clearing your account.

To avoid being scammed by an advance fee loan, make sure that the lender discloses all associated fees in writing before requesting payment.

Legitimate lenders check credit before extending loans. Be wary of lenders who try to rush you into paying fees in advance. They may even ask for money transfer services or vouchers that you cannot get back.

Legitimate lenders will never ask for these types of fees. However, scammers may try to rush you into paying these fees because they’re desperate for money. Ensure that your lender has a legitimate business license to avoid being scammed.

Lender Isn’t Registered in Your State

The Federal Trade Commission requires that lenders register in the states they operate in. If they don’t, you’re most likely dealing with a scam.

Check the lender’s website and contact the state attorney general’s office to find out if it is registered in your state. Legitimate lenders will have a list of their registered states on their websites.

If a lender doesn’t list their state as a registered address, they are likely operating an illegal operation or a scam.

When you contact a lender, make sure you get as much information as possible about the loan as soon as possible. Legitimate lenders will tell you exactly what your loan will entail and will never ask for money upfront.

However, scams don’t care about your credit score and are only after your personal information. Be aware that legitimate lenders will always check your credit score and income.

Lender Requests Unusual Forms of Payments

How to spot loan scams is to check for a physical address. If the lender is requesting money upfront, there’s a good chance they’re a scam.

However, you can check to make sure by plugging in their physical address into Google Maps. Many loan scams list P.O. boxes and vacant lots as addresses.

Besides lacking a physical address, these lenders don’t have any legal documentation to back up their claims.

Another red flag to look out for is an urgent loan offer. Legitimate lenders will offer steady rates and terms based on your finances and credit.

High-pressure sales tactics can hide red flags and make them seem legitimate. Be wary of loans that demand upfront fees and require you to send money in an unusual form.

Even legitimate lenders will check your credit and information before issuing a loan. If you receive an email asking you to pay upfront for the loan, it’s a scam.

Lender Has No Physical Address

If a lender has no physical address, he or she is most likely a loan scam. Legitimate lenders have a physical address and do not ask for money upfront to approve a loan.

The lender should have a phone number and website address that you can look up on mapping software. Legitimate lenders have physical addresses listed on their websites.

Fraudulent lenders may use a similar name and logo to look professional. They can also steal your personal information.

A legitimate lender should have a physical location. A company can be fully online but still have a physical location. If the lender has no physical address, you should be suspicious and demand proof of it.

The most obvious way to do this is to use reverse phone searches to find the company’s address. Once you have verified the lender’s physical location, you can call them to confirm if they are an authentic lender.

The Lender Solicited Your Business

One of the easiest ways to spot a loan scam is if the lender doesn’t have a physical address. Legitimate lenders have a physical address listed on their website.

Legitimate lenders do not use generic email addresses like Yahoo or Hotmail. The company’s address should be prominent and listed on Google maps. You should not accept an offer from a lender who is trying to rip you off.

Always do your research on a prospective lender. Read consumer reviews online to see if other people have been scammed by that company. Do not send any money upfront to anyone who approaches you for a loan.

Legitimate business lenders will tell you that they will not request your money until you have approved your loan. Be cautious of lenders who ask for payment upfront or who ask for it before it has been approved. Check whether the lender has a physical address before committing to an agreement.

The Lender’s Website Is Not Secure

It is a good idea to use a secured website to apply for a loan. Loan scammers often target would-be borrowers at a time when credit is hard to come by and collect up-front fees from them.

The Attorney General of Minnesota Keith Ellison recently warned consumers about advance-fee loan scams. These schemes involve the collection of hundreds or even thousands of dollars in advance processing fees.

To protect yourself, it’s best to research lenders before deciding on one. Consumers can look up reviews on lenders online, but predatory loans should be avoided, even though they’re technically legal.

Fraudulent lenders also use fake websites that mimic legitimate lenders, so it is essential to check for this. Check for an HTTPS protocol to avoid dealing with these websites. By using the HTTPS protocol, you can be sure that a lender’s website is secure.

The Lender Is Pressuring You to Sign

How to spot loan scams includes any pressure to sign or grandiose financial promises. When a company or loan officer pressures you into signing, it is probably not legitimate and is likely a scam.

A legitimate lender will always roll a fee into the cost of the loan. Be cautious of any lender who asks for a fee upfront, whether it’s in an ad or on the phone.

The most obvious sign of a scam is the absence of a physical address. Whenever you get an offer for a loan, plug the address into Google Maps to check if it’s a scam.

Oftentimes, fraudulent lenders will list a P.O. Box or a vacant lot, attempting to give the impression they are legitimate. Similarly, websites of reputable lenders should have a padlock sign and a web address that starts with HTTPS.

The best way to spot loan scams is to ask about their credit checking policy. Although some lenders don’t care about credit, the FTC warns against phrases like “bad credit? No problem!” 

These phrases may seem harmless at first glance, but they are often indicators of a loan scam. Legitimate lenders would never offer a loan without understanding if the applicant could pay it back. The lender might also request personal information in order to debit hidden fees. 


If you’re in need of a loan, it’s important to be aware of the signs of a scam. Be suspicious of lenders who do not have a physical address or who try to pressure you into signing an agreement. 

Always do your research before committing to any lender and make sure that their website is secure. By being vigilant, you can protect yourself from loan scams.

If you have been the victim of a loan scam, you should report it to the Federal Trade Commission. You can also file a complaint with the Attorney General’s office in your state. 

By taking these steps, you can help protect yourself and others from becoming victims of these schemes. Reporting a loan scam can help put an end to it and prevent others from becoming victims. Don’t let yourself be scammed – take action today!

Have you ever been the victim of a loan scam? What tips would you add on how to spot a loan scam? Share your thoughts in the comments below!

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