How to Get a $1,000 Loan with Bad CreditMay 11, 2022
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And, while it may have been harder to get approved for a $1,000 loan in times past, it’s much easier in modern times. One of the major reasons for this is due to the rise of financial technology companies.
According to Statista—In 2013, only 5% of all personal loans were granted by fintech companies. 5 years later, in 2018, that number grew to 38%—and continues to grow in 2022.
In this article, we’ll cover everything you need to know about getting approved for a $1,000 loan even if you have bad credit.
You’ll learn what your options are, what credit score you need, how quickly you can secure a loan, and where you can borrow money from.
How to Get a $1,000 Personal Loan With Bad Credit
If you’re looking to secure a $1,000 loan, there are 2 main paths you can take installment loans or payday loans.
An installment loan is a personal loan that’s typically smaller, has shorter terms, and higher interest rates than regular personal loans.
On the other hand, payday loans offer even smaller amounts (and much shorter terms). They’re also the most expensive type of loan, and should only be considered as a last resort.
Installment Loan Features
Here are few details about installment loans:
- Loan Terms: typically last between 6 months and 5 years. A longer term usually means a lower monthly payment. But, you typically end up paying more interest overall.
- Interest Rates: Interest rates typically range anywhere from 8% to 47% based on your credit score, personal factors, and who the loan provider is (i.e. credit union, online lender, bank, etc.).
- Predictable Payment Plan: Since the loan can be paid over a few years, you will typically work out a monthly payment schedule with the loan provider, giving you a consistent payment each month.
- Bad Credit: If you have bad credit, it may be harder to get an installment loan, as installment loans typically require information from credit bureaus. You may have to pay a higher interest rate, or pay the loan off sooner than you would if you had a higher score.
- Prepayment Penalties: Most lenders will let you pay back your $1,000 loan early without facing any early payment fees.
Payday Loan Features
Here are few details about installment loans:
- Loan Terms: Your repayment schedule is very short compared to installment loans. Typically, you’ll be required to pay it back by your next payday (in 1 to 4 weeks).
- Interest Rates: Interest rates can be extremely high with payday loans. You should expect to pay about $15 to $60 for every $100 you borrow. This means your interest rates can be about 15% to 60%. The actual fee will vary depending on what province you live in.
- Quickly Secured Loans: One of the biggest benefits to a payday loan is just how quickly the loan can be approved and in your bank account. You can usually have access to the funds on the same day you apply, and sometimes it’s instant.
- Bad Credit: Another major benefit to payday loans is that you can easily secure one even if you have a bad credit score.
How to Get a $1,000 Payday Loan With Bad Credit
If you have bad credit, you can still rest assured knowing you can access a $1,000 payday loan.
Payday loans usually don’t require a credit check. But, if they do, they typically have low minimum credit score requirements.
However, the lower the eligibility requirements are for a loan, the higher the interest rates will be.
If you want to apply for a $1,000 payday loan, you’ll still have to fill out an application and write down some of your personal information (even if the lender doesn’t require a credit check).
Payday loans are typically received the next business day, or on the same day. Some lenders can even get the $1,000 transferred into your account within an hour of your acceptance of the contract.
While requirements vary from lender to lender, you’ll generally have to provide the some or all of the following personal information:
- Your name, phone number, email
- A valid photo ID such as a driver’s license or passport
- Online banking details
- The last 90 days of your transaction history
- Employment details (your employer and how long you’ve been with them)
- Income details like how much you make per month and when you’re typically paid
- Financial details including a list of all your current assets and liabilities
There are a few other eligibility requirements that you’ll typically need to prove in order to be approved for a payday loan:
- You must be at least 18 years old
- You must be employed (or self-employed)
- You must be earning at least a basic income (some lenders require a minimum of $1,000 per month), whether from your employment, investments, or government benefits
Before you apply for a payday loan, you should make sure you meet all the requirements and are prepared to provide all necessary personal information.
Where to Find Bad Credit Personal Loans With a Guaranteed Approval of $1,000
The hard truth is, no lender can guarantee a $1,000 loan for just anyone.
However, even if you have bad credit, your chances of acceptance are significantly higher when you apply with online lenders since they don’t always need to examine your credit history.
This means online cash advance (payday) lenders are able to approve the majority of applications.
Since they approve such a high number of applicants, these $1,000 dollar loans are usually marketed as a “$1,000 dollars guaranteed approval loan”.
But, these loans aren’t approved 100% of the time. There are still a small percentage of applicants who are denied, as lenders make approvals based on different sets of criteria.
You can find payday loans available at cash advance businesses. These are usually present in most Canadian cities.
However, with the rise of fintech companies like Spring Financial, you’re able to secure personal loans quickly by simply filling out an application right from your computer at home.
How to Get a $1,000 Unsecured Bad Credit Loan
So, how exactly do you get an unsecured $1,000 loan with bad credit?
The steps are actually quite simple. Here’s how you can get unsecured loans of $1,000 even if you have a low credit score:
1. Fill out an application: As is the case with most loan types, you’ll have to fill out an application. This means providing personal information such as your name, contact information. This also typically means providing financial information like your employer, income, and assets and liabilities.
2. Review Loan Offers: Once you’ve filled out your application, the lender(s) will usually send you a notification by email (or on their website) letting you know you’ve been approved. They’ll show you an offer (or multiple offers) for a loan including total amount, interest rate, and payment plans.
3. Accept Loan: Once you’ve reviewed the offer(s), you can either accept or decline. If you choose to accept, you’ll formally accept the terms of the loan by signing and sending back the contract.
4: Receive Funding: After you’ve accepted the loan, you just need to wait for the lender to receive and certify the loan. Once they’ve done this, they will transfer the funds to your requested account. Depending on the type of loan you’ve applied for, you could receive funding in as little as 1-3 business days (or on the same day if you chose a payday loan).
Can You Get a $1,000 Loan With No Credit Check?
Yes, you can get approved for a loan without a credit check.
While installment loans typically require a credit check, you can usually get a payday loan (cash advance loan) without one.
Keep in mind that even if you aren’t required to go through a credit check, you’ll still need to submit different personal and financial information.
You’ll likely need to submit information like your income, paycheque schedule, assets and liabilities.
The lender needs to see proof that you’ll be able to pay back the loan, even if it’s just $1,000.
If you have a few bad credit listings on your credit report, you don’t need to worry. Most payday lenders will still consider you for a loan.
What Credit Score Is Needed for a $1,000 Loan?
The short answer is, you don’t technically need to provide your credit score for a $1,000 loan. However, you’ll have to apply for a payday loan—which means you’ll pay much higher interest (and will have to pay back the loan very quickly).
If you choose to go with an installment loan, most financial institutions will perform a credit check. This is because the interest rates are much lower than payday loans and you can pay it back over longer periods of time like 1-4 years.
A general rule of thumb for credit score requirements is to have a score of at least 580 to get a $1,000 installment loan.
Just keep in mind—even if a lender doesn’t check your credit score, it doesn’t mean you’ll be guaranteed a loan. You’ll still have to meet their eligibility requirements, which means proving you have the means to repay the loan.
What If You Need a $1,000 Loan With Bad Credit Today?
If you need a $1,000 loan today, but you have bad credit, what are your options?
Well, simply put—you have one main option: a payday loan.
Payday loans are small loans that have lower requirements than other loans. They don’t typically require a credit check, so if you have a poor credit score, you could still be approved.
You’ll have to pay much higher interest rates. And, you’ll have to pay back the loan within 1-4 weeks.
However, if your credit score is above 580, you may qualify for a same day loan—which is different from a payday loan.
Same day loans are installment loans that are guaranteed to be paid out on the same day you apply (if you’re approved).
However, they’ll typically require a hard credit check, among other requirements.
Where Can You Get Bad Credit Loans?
If you’re a Canadian with bad credit and you need a $1,000 loan, then your best bet is to apply online to a technology-first company, like Spring Financial.
Spring Financial leverages innovative financial technology to provide fast, same-day funds for Canadians.
It only takes two minutes to get approved for an online personal loan today.