According to Experian, you have bad credit if your FICO score is below 579, or if your VantageScore is below 600. And if you have poor credit, it can be difficult to find a lender who will give you a personal loan or even an emergency loan.
Fortunately, there are 12 month loans for bad credit out there to help you out in a bind. The key is to avoid predatory loans that dig you deeper into the hole rather than helping you climb out.
What is a 12-month loan?
12-month loans are personal loans that you repay in installments over one year or 12 months. While some lend cash at a reasonable price, many bad credit 12-month personal loans are actually “payday loans” offered by predatory lenders.
These loans may come with major downsides such as high-interest rates and tons of added fees. These can greatly add to your loan costs – and if you can’t pay up, you may find your credit score drop even more.
Where can I find affordable 12-month loans for bad credit?
If you’re looking for an alternative to payday loans with bad credit, a MoneyLion Credit Builder Loan may be the answer. With a $19.99/month membership, you can take out a loan up to $1,000, get monthly credit reporting to boost your score, and so much more!
Requirements
Qualifying for a Credit Builder Loan is easy – so easy, in fact, that you don’t need a good credit score or a credit history at all to be accepted! Simply:
Be at least 18 years old
Have U.S. citizenship or permanent residency status
Have a Social Security Number
Link a primary checking or spending account that meets these criteria:
The account must be in good standing and open at least 60 days
You must have a detectable income stream, such as paycheck or benefit check deposits
The account must have an acceptable balance and transaction history (determined at our discretion)
How to apply
Applying for a Credit Builder loan is almost as simple as qualifying. Just follow these steps:
Create a MoneyLion account via our website portal or mobile app
Sign up for a Credit Builder Plus membership for just $19.99 per month
Select “Borrow” and fill out the application
Submit to a soft credit pull with no impact on your credit score
If you’re approved, see a portion of your funds deposited right away!
Get the cash you need–fast!
If you ever find yourself in need of bad credit 12-month personal loans, MoneyLion can help you get money now and build credit at the same time. And best of all, it’s easy! Once you have your RoarMoney account set up and virtual card in-app, you can get same-day funding from a MoneyLion Credit Builder Loan.
No hard credit checks
MoneyLion doesn’t do a hard credit check to approve your loan. Instead, we conduct a soft credit check and examine your banking history to see if you qualify. If you have regular income – including paychecks, government benefit checks, alimony, child support, or even unemployment checks – you can qualify!
No collateral needed
Unlike secured personal loans and title loans, MoneyLion doesn’t require you to put down your car, house, jewelry, or anything else to secure your loan.
Competitive rates
Predatory payday loans may charge up to a whopping 400% APR on your loan, which can cost you hundreds of dollars a year in interest and fees. But MoneyLion charges competitive interest rates as low as just 5.99% APR.
What happens after the loan is granted?
Credit Builder loans don’t work like regular loans. We’ll cover the differences here.
Credit reserve account
When you take out your loan, a portion of the funds goes to you the same day you’re approved. This amount usually comes out to 50% or less of the total loan amount, or around $500 for a $1,000 loan.
The remaining amount goes into a high-interest reserve account that stays locked up until you pay off your loan. Once you do, the loan amount (plus interest) is paid to you to do as you wish. This helps you save, borrow, and earn interest at the same time!
Auto repayment
MoneyLion Credit Builder Loans come with automatic loan repayments timed to your pay cycle. By paying off your loan in a set installment, you can easily plan the cost into your budget. And we report every on-time payment you make to the three major credit bureaus to help boost your credit score.
We get repaid, and your credit score goes up – everybody wins!
Membership perks
A Credit Builder Plus membership comes with plenty of perks aside from the loan itself. For instance, our members enjoy:
Credit monitoring and progress tracking right in the MoneyLion app
Monthly credit reporting to boost your score up to 60 points in 60 days
Access to 0% Instacash advances
Lion’s Share Cashback rewards up to $19.99 per month
Waived administration fees for RoarMoneySM and MoneyLion Investing accounts
A credit-building loan is just clicks away!
Getting a personal loan that builds credit and offers same-day funding is rarely this simple. If you’re on the hunt for 12-month loans for bad credit, look no further than MoneyLion’s Credit Builder Plus membership.
The chance to take charge of your financial future is just a few clicks away. What are you waiting for?
FAQS
Can you get a loan with a 500 credit score?
Yes, you can, but most likely you’ll pay a high-interest rate. But a MoneyLion Credit Builder Loan, you’ll pay a competitive interest rate plus just $19.99 per month.
Where can I borrow money ASAP?
If you need an emergency loan, MoneyLion’s Credit Builder membership can get you money as fast as the same day.
Where can I get a loan no credit check?
Few places lend money with no hard credit check – but MoneyLion does. Instead, we conduct a soft credit pull that won’t drop your score.
Who will lend me money with bad credit?
Credit builder loans, like the ones offered by MoneyLion are designed for people with bad credit. Check out our membership today!
You may like
Community Posts
Similar Posts
Disclosures
Credit score improvement is not guaranteed. A soft credit pull will be conducted that has no impact to your credit score. Credit scores are independently determined by credit bureaus. Data was sourced from credit score data from over 147,500 Credit Builder Plus members with an active loan between January 1, 2020, and March 15, 2023. Credit score improvement is not guaranteed. Credit scores are independently determined by credit bureaus. MoneyLion is not a Credit Services Organization. Credit Builder Plus is an optional service offered by MoneyLion.
Credit Builder Plus membership ($19.99/mo) unlocks eligibility for Credit Builder Plus loans and other exclusive services. This optional offer is not a Pathward product or service. A soft credit pull will be conducted which has no impact to your credit score. Credit Builder Plus loans have an annual percentage rate (APR) ranging from 5.99% APR to 29.99% APR, are made by either exempt or state-licensed subsidiaries of MoneyLion Inc., and require a loan payment in addition to the membership payment. The Credit Builder Plus loan may, at lender’s discretion, require a portion of the loan proceeds to be deposited into a reserve account maintained by ML Wealth LLC and held by Drivewealth LLC, member SIPC and FINRA. The funds in this account will be placed into money market and/or cash sweep vehicles, and may generate interest at prevailing market rates. You will not be able to access the portion of your loan proceeds held in the credit reserve account until you have paid off your loan. If you default on your loan, your credit reserve account may be liquidated by the lender to partially or fully satisfy your outstanding indebtedness. May not be available in all states. Credit Reserve Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Credit Reserve Account, see Investment Account FAQs and FORM ADV.
Credit Reserve Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Credit Reserve Account, see Investment Account FAQs and FORM ADV.
Instacash is a 0% APR cash advance service provided by MoneyLion. Your available Instacash advance limit will be displayed to you in the MoneyLion mobile app and may change from time to time. Your limit will be based on your direct deposits, account transaction history, and other factors as determined by MoneyLion. This service has no mandatory fees. You may leave an optional tip and pay an optional Turbo Fee for expedited funds delivery. For a $40 Instacash advance with a Turbo Fee of $4.99, your repayment amount will be $44.99. Generally, your scheduled repayment date will be your next direct deposit date. An Instacash advance is a non-recourse product; you will not be eligible to request a new advance until your outstanding balance is paid. See Membership Agreement and help.moneylion.com for additional terms, conditions and eligibility requirements.
MoneyLion is a financial technology company, not a bank. RoarMoney℠ demand deposit account provided by, and MoneyLion Debit Mastercard® issued by, Pathward®, National Association, Member FDIC. RoarMoney is a service mark of MoneyLion. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International. Funds are FDIC insured, subject to applicable limitations and restrictions, when we receive the funds deposited to your account.