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Bad Credit Loans. Apply for Personal Loans Online

Looking for personal loans for bad credit in the Philippines? Apply now for hassle-free online processing. Get fast lending solutions tailored to your needs. Apply today and solve your financial challenges with ease.
Offers: 4
Updated:
10.02.2024
20:27
MoneyCat
Instant cash loans
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
₱20000
Rate
i

Effective interest rate on the product

11,9% per month
Term
i

Loan term for the financial product

6 months
DIGIDO
Instant online loans
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

4
Recommended FinScore™
0
300
650
1000
10500.00 – 25000.00 ₱
Rate
i

Effective interest rate on the product

from 11.90 %
Term
i

Loan term for the financial product

3 days – 6 days
Kviku
Online Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
500.00 – 25000.00 ₱
Rate
i

Effective interest rate on the product

to 0.16 %
Term
i

Loan term for the financial product

2 months – 6 months
Get the money you need online
Get the money you need online

Use our quick loan matching system with a free credit check!

TALA
Tala Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

2.95
Recommended FinScore™
0
300
650
1000
1000.00 – 15000.00 ₱
Rate
i

Effective interest rate on the product

to 0.50 %
Term
i

Loan term for the financial product

21 days – 1 months
Bad Credit Loans Calculator of February 2024 

Your ideal online loan with a free credit check in the Philippines, just a few clicks away.

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PHP
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10000 ₱
2000000 ₱
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months
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Reviews
Savii
1
No comment yet coz im not yet approved in my application
Review
DIGIDO
5
very fast
Review
Kviku
4
Please address my concerns regarding my loan application and its processing...
Review
Kviku
1.6
Warning: This lender is predatory and extremely dangerous. Do not use this app for loans as they will trap you with impossible and maliciously high interest rates...
Review
Kviku
1.4
I was charged an excessive amount by KVIKU. My last loan was approved on November 25th, 2022 for 5000 pesos...
Review
Kviku
1.8
High Interest Rate. They approved my auto loan without discussing repayment options in full. Instead, they sent me a contract with scheduled payments, which is nowhere near the advertised 0...
Review

What are Bad Credit Loans in the Philippines?

A bad credit loan, also known as a personal or multi-purpose loan, serves as a financial solution tailored primarily for individuals grappling with a less-than-ideal credit history in the Philippines. Despite the common association with those facing credit challenges, it's crucial to note that bad credit loans extend their accessibility beyond individuals with poor credit records. Even individuals without any credit history at all can apply for and potentially secure approval for this type of loan. This inclusivity makes bad credit loans a viable option for those who may not have established credit yet or are seeking financial assistance for the first time.

In the Philippines, the notion of bad credit loans often comes with discussions of potential drawbacks. However, it's essential to recognize that these financial products also bring forth notable benefits. One significant advantage is that credit history is typically not a stringent requirement for bad credit loans. This means that individuals with either poor credit or no credit history can still access financial assistance. The flexibility in eligibility criteria, coupled with a higher likelihood of approval, makes bad credit loans a pragmatic choice for those in need of financial support, regardless of their credit standing.

Features

  1. Credit History is Not Required. Bad credit loans cater not only to those with poor credit history but also to individuals with zero credit. Lenders in this category may extend their services to those borrowing money for the first time.

  2. Greater Chances of Getting Approved. Many providers of bad credit loans have less stringent requirements compared to traditional lenders. Providing essential personal information and valid identification, along with collateral if necessary, often increases the likelihood of approval.

  3. Quick Turnaround Time. A significant advantage of bad credit loans is the quick application and approval process, especially when conducted online. Some lenders, with fewer requirements, can respond promptly, and funds may be deposited in the borrower's bank account in as little as 30 minutes.

  4. Money Can be Used for Any Purpose. Bad credit loans are versatile, allowing borrowers to use the funds for various purposes, such as emergencies, hospitalization, debt consolidation, or even purchasing gadgets. However, it is essential to exercise responsible financial behavior and avoid activities that may lead to debt.

  5. High Borrowing Limits. Secured loans, like OR/CR loans, often come with high borrowing limits. For example, borrowers may obtain up to 70% of their car's value or significant loan proceeds by pawning valuable items such as rare jewelry or high-end goods.

Pros and Cons

Pros

Access to Emergency Funds. Bad credit loans serve as a valuable resource for accessing funds during emergencies, providing financial relief to individuals who might face difficulties securing loans through traditional channels.

Potential for Credit Score Improvement. Timely repayments on bad credit loans can contribute to improving one's credit score over time. Responsible management of these loans may open doors to better financial opportunities in the future.

Financial Inclusion. Bad credit loans promote financial inclusion by offering borrowing options to individuals who may be excluded from the traditional banking system. This inclusivity provides a second chance for those seeking financial stability.

Cons

High Interest Rates. Borrowers often face higher interest rates with bad credit loans compared to individuals with good credit. Lenders impose these rates to offset the increased risk associated with lending to individuals with less favorable credit histories.

Predatory Lending Practices. Some unscrupulous lenders may take advantage of borrowers with bad credit, engaging in predatory lending practices. Borrowers should remain vigilant and thoroughly research lenders to avoid falling victim to exploitative practices.

Potential for Further Financial Strain. While bad credit loans provide immediate relief, they also carry the risk of exacerbating financial strain if not managed wisely. Borrowers must exercise caution to prevent falling into a cycle of debt, ensuring responsible repayment.

How to Get a Bad Credit Loan?

Apply for a loan

  1. Assess Your Credit Report. Before applying for a bad credit loan, obtain a copy of your credit report. Understanding the factors contributing to your poor credit history allows you to address any inaccuracies and present a clear picture to potential lenders.

  2. Research and Compare Lenders. Explore the diverse landscape of bad credit loan providers in the Philippines. Traditional banks, non-banking financial institutions, and online lending platforms each offer different terms and conditions. Compare interest rates, loan amounts, and repayment terms to identify the most suitable option.

  3. Gather Necessary Documentation. Prepare essential documentation, including valid identification, proof of income, and any collateral if applicable. Some lenders may require additional documents, so be thorough in your preparation.

  4. Understand Eligibility Criteria. Familiarize yourself with the eligibility criteria of potential lenders. While bad credit loans are designed for individuals with less-than-ideal credit histories, lenders may have specific requirements regarding income, age, and residency.

  5. Consider Secured Loans. Secured loans, where collateral is provided, often have higher approval rates for individuals with bad credit. If you have valuable assets such as a car or jewelry, consider using them to secure the loan.

  6. Apply Online or In-Person. Many bad credit loans in the Philippines are available online. Choose a reputable online lender or visit the physical branch of the chosen financial institution to submit your application. Online applications typically offer a quicker turnaround time.

  7. Review Loan Terms. Carefully review the terms and conditions of the loan before accepting any offers. Pay attention to interest rates, repayment terms, and any fees associated with the loan. Ensure that the terms align with your financial capacity.

  8. Demonstrate Financial Responsibility. Emphasize your commitment to responsible financial behavior. Highlight any positive aspects of your financial profile, such as stable employment and a steady income. This can positively impact the lender's decision.

  9. Consider Co-Borrowers or Guarantors. If feasible, involve a co-borrower or guarantor with a better credit history. This can strengthen your application and increase the likelihood of loan approval.

  10. Stay Informed about Alternatives. Be aware of alternative financial solutions, such as credit unions or non-banking financial institutions, which may have more flexible lending criteria. Consider these options if traditional lenders prove challenging.

Requirements and Conditions

Requirements

  1. Valid Identification. Borrowers typically need to provide a valid government-issued ID, such as a driver's license, passport, or Social Security ID.

  2. Proof of Income. Lenders often require proof of a stable income source, which can include recent pay stubs, employment certificates, or bank statements. This helps assess the borrower's ability to repay the loan.

  3. Age Requirement. Borrowers are usually required to be of legal age, typically 21 years old and above, to qualify for a bad credit loan.

  4. Residency. Many lenders may require borrowers to be Filipino citizens or legal residents with a valid address in the Philippines.

  5. Collateral (For Secured Loans). If opting for a secured loan, borrowers may need to provide collateral such as a car, jewelry, or other valuable assets.

  6. Co-Borrower or Guarantor (Optional). Some lenders may allow applicants to strengthen their loan application by including a co-borrower or guarantor, especially if the primary borrower's credit history is challenging.

  7. Completed Application Form. Borrowers need to fill out a comprehensive application form, providing accurate and complete information.

  8. Credit Check (Varies). While bad credit loans are designed for individuals with less-than-perfect credit histories, some lenders may still conduct a credit check as part of the application process.

  9. Minimum Income Requirement. Lenders may specify a minimum income threshold that applicants must meet to qualify for a bad credit loan.

  10. Bank Account. Having a valid bank account is often a requirement for loan disbursement and repayment. Some lenders may prefer specific types of accounts.

Conditions

  1. Interest Rates. Lenders will specify the interest rates associated with the loan. Bad credit loans often come with higher interest rates to offset the perceived risk.

  2. Loan Amounts. The maximum and minimum loan amounts will be clearly outlined by the lender. This depends on factors such as income, collateral, and the type of loan.

  3. Repayment Terms. Lenders will provide information about the repayment terms, including the duration of the loan and the frequency of payments (e.g., monthly or bi-monthly).

  4. Fees and Charges. Borrowers should be aware of any additional fees, such as origination fees or processing charges, that may apply to the loan.

  5. Penalties for Late Payments. Lenders will outline the penalties for late or missed payments. Borrowers must understand these terms to avoid additional financial strain.

  6. Secured vs. Unsecured Options. If applicable, lenders will specify whether the loan is secured or unsecured, and the associated conditions for each.

  7. Approval Timeframe. Lenders may provide information on the expected timeframe for loan approval and disbursement of funds.

  8. Credit Score Impact. Some lenders may specify whether timely repayments on the bad credit loan will positively impact the borrower's credit score.

  9. Early Repayment Terms. Borrowers should be aware of any conditions or penalties associated with repaying the loan ahead of schedule.

Best Places to Get a Bad Credit Loan Today

Cash-Express

Cash-Express offers fast loan approval with decisions made within 15 minutes. This service is designed to cater to individuals with poor credit, as it requires no credit check. Borrowers can access funds as quickly as within one day, making it a convenient option for those in need of swift financial assistance. Loan amounts range from 1,000 to 20,000 pesos.

Digido

Digido provides a fast loan approval system without the need for a credit check for any Filipino citizen aged 21-70 with a working mobile connection. With a maximum loan amount of PHP 10,000, Digido utilizes advanced algorithms to automate the lending process. This online interface allows users to apply for a loan anytime and from anywhere, with the system providing a decision within seconds. Digido's approach combines accessibility and efficiency for borrowers seeking quick financial solutions.

PawnHero

PawnHero offers loans without credit checks to individuals who can use items like smartphones, designer bags, or jewelry as collateral. They also accept gaming consoles, designer shoes, and cameras. The interest rates for PawnHero Loans start from 2.9%, and funds are disbursed within a day. Payment terms depend on the type of collateral, considering factors like depreciation for gadgets.

UnaCash

UnaCash offers a convenient cash loan application process without the need to leave the safety and comfort of home. With a low interest rate, fast loan approval within 5 minutes, and flexible terms up to 6 months, borrowers can apply for cash loans up to PHP 50,000. UnaCash also provides a personal line of credit with a limit ranging from 1,000 to 50,000 pesos.

Best Places to Get a Loan Today

Digido

Apply for a loan

Digido is an online loan company in the Philippines, offering non-collateral cash loan services. They provide a fully automated online portal for a seamless loan application process. Key features include:

  • Automated application process.
  • Loans for various purposes, including emergency and OFW loans.
  • No collateral required.
  • Online loan calculator.
  • Transparent interest rates, with a commitment to fair lending practices.
  • Loan accessibility for unbanked individuals.
  • Secured operations, fully licensed and registered under the SEC.

Digido

MoneyCat

Apply for a loan

MoneyCat is an online payday loan provider in the Philippines, offering efficient financial solutions with an easy-to-navigate online registration form. Their features include:

  • Swift approval process, usually within 24 hours.
  • Flexible loan amounts ranging from PHP 500 to PHP 20,000.
  • Convenient application methods via website or mobile app.
  • First loan free of charge for new users.
  • Licensed by the SEC, ensuring reliability and legitimacy.

MoneyCat

Finbro

Apply for a loan

Finbro is an online lending platform providing quick loans with durations of up to 12 months and amounts ranging from ₱1,000 to ₱50,000. Their service includes:

  • Online application process that can be completed in 15 minutes.
  • Transparent conditions with no extra costs.
  • 24/7 service availability.
  • Data protection for users.
  • Higher interest rates for repeat loans.
  • No mobile app for accessibility.

Finbro

Kviku

Apply for a loan

Kviku is an online lending institution known for providing short-term loans with a fully automated online service. Their main features are:

    • Simple and user-friendly loan procedures.
    • 24-hour approval process.
    • No hidden fees or charges.
    • 100% online lending experience.
    • Competitive interest rates at 0.16% daily.
    • Flexible repayment terms up to 180 days.
    • Registered and authorized by the SEC, ensuring reliability.

Kviku

Ways to Receive the Money

  1. Direct Bank Deposit. The most common method is through a direct bank deposit. Once the loan is approved, the lender transfers the approved amount directly to the borrower's bank account. This method is efficient and allows for quick access to the funds.

  2. Check Issuance. Some lenders may issue a check for the approved loan amount. Borrowers can then deposit or cash the check at their bank. This method provides a tangible form of the loan proceeds.

  3. Cash Payout. In certain cases, especially with smaller loan amounts, lenders may offer a cash payout option. Borrowers can visit a physical branch or designated partner locations to receive the loan amount in cash.

  4. Electronic Wallets. With the rise of fintech solutions, some lenders may provide the option to transfer funds to electronic wallets. Borrowers can access the funds through mobile apps or use the wallet for online transactions.

Things to Pay Attention To

  1. Interest Rates. Understand the interest rates associated with the loan. Bad credit loans often come with higher interest rates, so compare rates from different lenders to ensure you get the most favorable terms.

  2. Repayment Terms. Carefully review the repayment terms, including the duration of the loan and the frequency of payments. Ensure that the repayment schedule aligns with your financial capacity.

  3. Fees and Charges. Be aware of any additional fees or charges, such as origination fees, processing fees, or late payment penalties. These can significantly impact the overall cost of the loan.

  4. Secured vs. Unsecured Options. Understand whether the loan is secured or unsecured. Secured loans may require collateral, and borrowers should be aware of the potential risks associated with using assets to secure a loan.

  5. Credit Score Impact. Clarify whether timely repayments on the bad credit loan will positively impact your credit score. This information is crucial for those looking to rebuild their credit history.

  6. Customer Reviews and Reputation. Research the lender's reputation and read customer reviews. A reputable lender is essential to ensure fair and transparent lending practices.

  7. Customer Support. Assess the availability and responsiveness of customer support services. Clear communication channels are vital for addressing queries or concerns during the loan application process.

  8. Financial Counseling Services. Some lenders provide financial counseling services to help borrowers manage their finances better. Consider lenders that offer support beyond the loan transaction.

  9. Legal and Regulatory Compliance. Ensure that the lender operates within the legal and regulatory framework. This safeguards borrowers from potential fraudulent activities and ensures adherence to ethical lending practices.

How to Repay a Bad Credit Loan?

  1. Create a Budget. Develop a comprehensive budget that includes all your income, expenses, and debt obligations. This helps you understand your financial situation and allocate funds for loan repayments.

  2. Prioritize Loan Payments. Make repaying the bad credit loan a top priority in your budget. Allocate a specific portion of your income to cover the monthly payments and avoid unnecessary expenses.

  3. Set Up Automatic Payments. Consider setting up automatic payments through your bank or the lender. This ensures that you never miss a payment and helps you maintain a positive repayment history.

  4. Understand the Repayment Schedule. Familiarize yourself with the repayment schedule, including due dates and the frequency of payments. Be aware of any grace periods or late payment penalties.

  5. Negotiate Favorable Terms. If you experience financial difficulties, communicate with your lender. Some lenders may be willing to negotiate more manageable terms, such as a temporary reduction in monthly payments or a forbearance period.

  6. Monitor Your Credit Score. Regularly check your credit score to track improvements. Timely repayments on the bad credit loan can positively impact your credit history over time.

  7. Financial Counseling. Seek financial counseling if needed. Some lenders offer counseling services to help borrowers manage their finances effectively. Take advantage of these resources to gain insights into budgeting and debt management.

  8. Early Repayment. If your financial situation improves, consider repaying the loan ahead of schedule. Check for any prepayment penalties and assess whether early repayment aligns with your overall financial strategy.

  9. Stay Informed. Keep yourself informed about any changes in interest rates, fees, or loan terms. This ensures that you are aware of the financial implications and can adjust your repayment strategy accordingly.

Alternatives

  1. Credit Union Loans. Credit unions often offer more flexible terms and lower interest rates compared to traditional banks. They focus on serving their members' financial needs, which can be advantageous for individuals seeking alternatives to bad credit loans.

  2. Peer-to-Peer Lending. Online platforms facilitate peer-to-peer lending, connecting borrowers directly with individual investors. This alternative can offer more flexible terms and lower interest rates, depending on the borrower's creditworthiness.

  3. Salary Loans. Some employers and financial institutions offer salary loans, allowing individuals to borrow against their upcoming paychecks. These loans often have more favorable terms and lower interest rates.

  4. Cash Advance from Credit Cards. While not a long-term solution, cash advances from credit cards can provide quick access to funds in emergencies. Borrowers should be cautious of high-interest rates associated with cash advances.

Editorial Opinion

In evaluating loans for bad credit, it is essential to acknowledge the dual nature of these financial products. On one hand, they serve as a valuable resource for individuals facing challenging credit histories, offering a means to access funds in times of need when traditional avenues may be less accommodating. However, it is equally crucial to recognize the potential downsides, such as higher interest rates and associated fees, which can lead to increased financial strain for borrowers. While bad credit loans can provide a lifeline for those with limited borrowing options, individuals should exercise prudence, carefully assess the terms of such loans, and consider alternative financial solutions that align more closely with their long-term financial well-being.

Important

Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender in the Philippines

  1. Ensure that the lender is registered with the Securities and Exchange Commission (SEC) of the Philippines.

  2. Investigate if the lender is a member of recognized industry associations in the Philippines, such as the Chamber of Thrift Banks or the Philippines Finance Association.

  3. Carefully examine all terms and conditions of your loan contract. This includes understanding the repayment schedule, fees, and any penalties for late or missed payments.

  4. Payday loans can have high-interest rates. Make sure the contract clearly outlines the interest rate and total cost of the loan, including any processing fees or additional charges.

  5. Familiarize yourself with your rights regarding cancellation. In the Philippines, consumers may have the right to rescind the loan within a specific period after signing the agreement.

  6. Research the lender's reputation through customer reviews, complaints, and feedback available online.

Methodology

In Finanso, we've carried out a comprehensive analysis of over 50 lenders in the Philippines, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

FAQ

What's the easiest loan to get with bad credit?

The ease of obtaining a loan with bad credit can vary depending on several factors, including the type of loan and the lender's criteria including minimum credit score. Generally, some types of loans may be more accessible for individuals with bad credit:

  1. Payday Loan. Payday loans are often considered easy to obtain, as they are typically short-term, small-dollar loans that do not heavily rely on credit checks. However, they come with very high-interest rates and fees, making them a costly option.

  2. Secured Loan. Secured loans, where collateral is provided, can be more accessible for individuals with bad credit than unsecured loans. Lenders may be more willing to approve a loan if there's an asset securing it, such as a car title or valuable personal property.

  3. Online Personal Loan. Some online lenders specialize in providing personal loans to individuals with bad credit. While interest rates may be higher, the application process is often streamlined, and approvals may be more lenient compared to traditional banks.

  4. Pawn Shop Loan. Pawn shop loans involve using valuable items as collateral. The approval process is usually quick, and credit history is less of a factor. However, borrowers risk losing their collateral if they fail to repay the loan.

How do I know if I am blacklisted for credit Philippines?

To determine if you are blacklisted for credit in the Philippines, contact accredited credit bureaus such as CIBI Information, TransUnion Philippines, or Compuscan Philippines to inquire about your credit rating. It's important to note that there is no official comprehensive blacklist in the country. Credit information is sourced from entities like the Credit Information Corporation (CIC), Credit Management Association of the Philippines (CMAP), and Bankers Association of the Philippines Data Exchange, Inc. (BAP-DX). These organizations maintain records related to individuals' creditworthiness, assisting lenders in making informed credit decisions. While the Credit Information Corporation serves as the country's credit registry, it does not engage in blacklisting borrowers. Entities like CMAP and BAP-DX manage databases that include information on court cases, returned checks, endorsed accounts, and past due accounts from various industries, aiding in accurate credit assessments by financial institutions.

Can I borrow money with a 500 credit score?

In the Philippines, credit scores range from 300 to 850, with 850 being the highest and considered an excellent credit score. A score in the range of 700-759 is considered good, while 650-699 is fair, and 600-649 is poor. Anything below 600 is considered a bad credit score. It is possible to obtain a loan with a 500 credit score from certain companies, but it often comes with a very high interest rate, and a guarantor may be required to secure the loan.