Securing a $1400 Loan with Bad Credit: Your Comprehensive Guide
Explore your options for securing a $1400 loan even with bad credit. We provide insights into how these loans work, the associated costs, and how to approach different lenders. Learn about the key factors that influence approval, including your credit score, income, employment details, and more. Start your journey towards financial stability now.
Zarina S
Editor
Zarina S
Update 15.11.2023
$1400 Loan with Bad Credit: Find Reliable Options & Compare Rates

What are $1400 loans?

When people talk about getting a personal loan for $1400, they're typically referring to small loans made to those borrowers who have a low credit score or a poor credit history. Alternative lenders, online lenders, and payday loan providers are common sources for loans of this size.

Lenders offering personal loans may take into account a borrower's ability to repay the money as well as their income and employment history. Keep in mind that the interest rates, fees, and terms of negative credit loans from payday lenders are typically worse than those of excellent credit loans.

Features

  1. Higher Interest Rates. Due to the higher risk associated with lending to individuals with bad credit, lenders often charge higher interest rates on these loans compared to loans offered to borrowers with good credit. This is done to compensate for the increased likelihood of default.

  2. Shorter Repayment Terms. Bad credit loans may have shorter repayment periods compared to traditional loans. Instead of extended terms, lenders may require borrowers to repay the loan within a few months or up to a year. The shorter repayment period allows the lender to mitigate the risk and recover their funds more quickly.

  3. Smaller Loan Amounts. $1400 loans with bad credit are generally smaller in amount compared to loans available to individuals with good credit. Lenders may limit the loan amount to reduce their risk exposure.

  4. Easier Qualification Requirements. Despite having bad credit, these loans may have less stringent qualification requirements compared to traditional loans. Lenders may prioritize factors such as income and employment stability rather than relying solely on credit scores.

  5. Online Application Process. Many lenders offering bad credit loans operate online, allowing borrowers to conveniently apply for the loan from the comfort of their homes. The online application process often involves providing basic personal and financial information.

Pros and cons

Pros

Convenient Access to Cash. People with low credit scores still have the option of getting emergency cash through bad credit loans. It can be useful for covering emergency costs or other unplanned outlays.

Quick Approval Process. Applying for and getting approved for a negative credit loan is typically much quicker than applying for and getting approved for a regular loan. There are lenders out there that can get you the money you need quickly, sometimes even the same day you apply.

Potential for Credit Improvement. You can raise your credit rating with the responsible use of a small loan and timely payments. Your credit score may increase if you have a history of timely payments.

Cons

Increased Rates. The interest rates on loans for people with poor credit are typically much higher than those on loans for people with solid credit. This will result in higher interest payments during the loan's duration.

Limited Loan Choices. If you have poor credit, you may find it difficult to obtain a loan. When compared to loans for borrowers with good credit, you may be offered a lower loan amount and less favorable terms and circumstances.

Shorter Payback Terms. Loans for those with poor credit ratings typically have shorter payback periods. While this could help you get out of debt faster, the larger monthly payments could put a strain on your finances.

Potential for Predatory Lending. Predatory lending occurs when a lender takes advantage of a borrower with poor credit by demanding high-interest rates, fees, and penalties. It's important to find reputable lenders and read the fine print thoroughly.

Continued Financial Challenges. Borrowing money through a bad credit loan without first fixing the underlying financial problems might lead to a never-ending spiral of debt. Long-term budgeting and looking into ways to better your credit and financial health should be priorities.

How to get a $1400 loan?

Apply for a loan

  1. Check Your Credit Report. Even with a high credit score, it's important to review your credit report for any errors or discrepancies. You can obtain a free copy of your credit report from each of the major credit bureaus (Equifax, Experian, and TransUnion) once a year. Ensure that the information is accurate and dispute any errors you find.

  2. Research Lenders. Look for lenders who offer personal loans and cater to individuals with excellent credit. Banks, credit unions, online lenders, and peer-to-peer lending platforms are potential sources. Compare their interest rates, fees, loan terms, and eligibility requirements to find the most suitable options.

  3. Gather Documentation. Lenders typically require documentation to verify your identity, income, and other financial information. Prepare documents such as pay stubs, tax returns, bank statements, and proof of employment. Having these documents ready can streamline the application process.

  4. Submit Your Loan Application. Complete the loan application with the chosen lender. Provide accurate and detailed information about your financial situation, employment, and any assets you may have. The lender will use this information to assess your creditworthiness and determine whether to approve your loan.

  5. Review Loan Offers. Once you receive loan offers from different lenders, carefully review the terms and conditions. Pay attention to the interest rate, repayment period, monthly payment amount, and any fees associated with the loan. Consider the overall cost of the loan before making a decision.

  6. Accept the Loan and Provide Any Needed Documentation. If you find a loan offer that meets your needs, accept it. The lender may request additional documentation to finalize the loan process. Provide the necessary documents promptly to avoid any delays.

  7. Receive Funds and Make Timely Payments. After your loan is approved and finalized, the funds will be disbursed to you. Make sure to understand the repayment terms and make timely payments according to the agreed-upon schedule. Consistently paying your loan on time can help maintain or improve your excellent credit score.

Requirements and conditions

  1. Credit Score. While your credit score may be considered bad, lenders may still have specific score thresholds for loan eligibility. The exact minimum credit score requirements can vary depending on the lender and the type of loan you're applying for.

  2. Income and Employment. Lenders may evaluate your income level and stability of employment. They want to ensure that you have a regular source of income that can support loan repayments. Providing proof of income through pay stubs, tax returns, or bank statements may be required.

  3. Debt-To-Income Ratio. Lenders may assess your debt-to-income ratio, which compares your monthly debt obligations to your income. A high debt-to-income ratio could indicate a higher risk for the lender, making loan approval more challenging.

  4. Loan Purpose. Some lenders may inquire about the purpose of the loan. Whether it's for debt consolidation, home repairs, medical bills, or other specific needs, being able to demonstrate a legitimate and responsible use of the loan funds can strengthen your case.

  5. Collateral or Guarantor. Depending on the lender and loan type, you may need to provide collateral (such as a vehicle or property) or have a guarantor who agrees to repay the loan if you default. These measures provide lenders with additional security and may increase your chances of approval.

  6. Interest Rates and Fees. Due to the higher risk associated with bad credit loans, lenders may charge higher interest rates and fees. It's essential to carefully review and understand the interest rate, repayment terms, and any associated fees before accepting a loan offer.

  7. Loan Amount and Term. Bad credit loans may have limits on the loan amount you can borrow, and the repayment period may be shorter compared to loans offered to borrowers with good credit. Ensure that the loan amount and repayment period align with your financial needs and ability to repay.

Best places to get a $1400 loan today 20.01.2025

OppLoans

Apply for a loan

OppLoans specializes in providing personal installment loans to borrowers with bad credit. They offer loan amounts ranging from $500 to $5,000, which may include a $1400 loan. OppLoans considers factors beyond credit scores during the approval process and aims to provide funds quickly.OppLoans

Check Into Cash

Apply for a loan

Check Into Cash is a lender that offers payday loans, installment loans, and other financial services. They may provide loans to individuals with bad credit, including $1400 loans. It's important to review the terms and interest rates associated with their loans and assess the overall affordability and repayment terms before proceeding.Check Into Cash

Approved Cash

Apply for a loan

Approved Cash is a trusted financial institution specializing in offering payday loans and cash advance services, catering to individuals needing immediate financial assistance. Whether you're facing unexpected expenses or find yourself short on funds, Approved Cash is here to provide the solution you need today. Applying for their loans is straightforward, ensuring quick access to the required funds.Approved Cash

Ways to get the money

  1. Direct Deposit. The money from many bad credit loan providers can be deposited straight into your account. Following final loan approval, the lender will deposit the agreed-upon amount into the account you indicated on your application. You can then access the money by withdrawing it from an ATM, using online banking, or writing checks.

  2. Debit Card. You can withdraw funds from your loan account with a debit card that certain lenders offer. Your debit card will be credited with the loan amount, allowing you to make purchases or withdraw cash from ATMs

  3. Cash Pick-up. Certain lenders may let you pick up your loan funds in cash from their office. To get the funds, you will need to physically appear at the lending company's office or another approved location.

  4. Wire Transfer. Some lenders may allow wire transfers if you'd rather the money be paid straight to an entity like a biller or creditor. You can use the money from the loan to settle other bills or give it to others you've specified.

Things to pay attention to

  1. Interest Rates. With a bad credit score, lenders may charge higher interest rates to compensate for the increased risk. Carefully review and compare the interest rates offered by different lenders to ensure you're getting the most favorable terms possible. A higher interest rate can significantly impact the total cost of the loan.

  2. Fees. In addition to interest rates, lenders may impose various fees on bad credit loans. These can include application fees, origination fees, late payment fees, and prepayment penalties. Take the time to understand the fees associated with the loan and factor them into your overall cost assessment.

  3. Repayment Terms. Examine the repayment terms and conditions, including the length of the loan and the frequency of payments. Shorter repayment periods may mean higher monthly payments, so ensure that the loan terms align with your budget and ability to repay. Additionally, consider whether the lender reports loan payments to credit bureaus, as this can help rebuild your credit if you make timely payments.

  4. Loan Amount and Purpose. Determine the loan amount you need and ensure that the lender offers loans within that range. Some lenders may have restrictions on loan amounts for individuals with bad credit. Also, be prepared to provide a valid reason for taking out the loan, as some lenders may inquire about the purpose of the funds.

  5. Lender Reputation and Credibility. Research the lender's reputation and credibility before proceeding with a loan application. Look for customer reviews, ratings, and any complaints filed against the lender. It's important to work with a reputable lender to ensure fair treatment and transparent terms throughout the loan process.

  6. Impact on Credit Score. Understand how taking out a loan and making timely repayments can affect your credit score. While a bad credit score may have limited your loan options, responsible repayment can help improve your credit over time. Confirm with the lender whether they report loan activity to credit bureaus and ensure that you stay on top of your repayment obligations.

How to repay a $1400 loan?

  1. Review the Loan Agreement. Carefully read and understand the loan agreement, which includes details about the repayment terms, interest rate, fees, and any other relevant information. Familiarize yourself with the specific requirements and conditions for repaying the loan.

  2. Determine the Repayment Schedule. Note the repayment schedule specified in the loan agreement. This will outline the frequency of payments (e.g., monthly, bi-weekly) and the due dates. It's important to be aware of the repayment schedule to ensure timely payments.

  3. Set up Automatic Payments. If possible, consider setting up automatic payments with your bank or through an online payment platform. This ensures that your loan payments are deducted from your bank account automatically on the due dates, reducing the risk of missing payments.

  4. Make Timely Payments. Adhere to the repayment schedule and make your loan payments on time. Late payments may result in additional fees, negatively impact your credit score, and potentially lead to default. Set reminders or utilize electronic calendars to help you stay organized and make payments promptly.

  5. Budget for loan payments. Incorporate the loan payments into your monthly budget. Prioritize them alongside other financial obligations to ensure you have sufficient funds to cover the loan repayment amounts. Adjust your budget as needed to accommodate the loan payments without straining your finances.

  6. Consider Making Additional Payments. If your financial situation allows, consider making extra payments towards the loan principal. This can help you pay off the loan faster and potentially save on interest costs over the loan term. However, check with your lender regarding any prepayment penalties or fees that may apply.

  7. Keep Track of Payment Records. Maintain a record of your loan payments, including dates, amounts, and confirmation receipts or statements. This can be useful for your reference and for resolving any discrepancies that may arise in the future.

  8. Communicate With the Lender. If you encounter financial difficulties or anticipate challenges in making your loan payments, it's essential to communicate with your lender promptly. They may be able to provide alternative arrangements or options to help you manage your payments effectively.

Alternatives

Apply for a loan

  1. Cash Advances Credit Cards. A credit card with a high enough limit could be a good option if you need to borrow a smaller amount than what you can get from a bank loan. You can get better credit cards terms, such as lower interest rates or promotional offers like 0% APR for a set period if you have a decent credit score. Credit cards can be convenient, but only if they are used wisely, and too much debt carried at a high-interest rate is avoided.

  2. P2p Lending Platforms. Individuals can lend money to one another using peer-to-peer lending networks. If you have a high credit score, you may be able to negotiate better loan conditions through one of these sites than through a bank or other conventional lender. However, you should be aware of the interest rates and other fees that may apply.

  3. Home Equity or Secured Loans. You may be able to get a loan, or access funds, by using the equity in your home or other valuables as collateral. Because of the security provided by the collateral, the interest rates on these loans are often lower.

Editorial opinion

A person's creditworthiness can be quantified by their credit score, which is based on that person's credit history and financial habits. Lenders perceive those with low credit scores to pose a greater risk since they are more likely to default on their loans or make late payments. Bad credit loans, often known as no credit check loans, are one type of loan that is offered to people with low credit scores. The terms and interest rates of these payday loans are often more stringent than those of loans issued to those with good credit.

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

  1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
  2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
  3. Carefully review all the terms and conditions of your payday loan contract.
  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 50 microfinance organizations, 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.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Additional resources

To learn more about loans for bad credit and best practices, check out some of the following resources:

Sources

FAQ

How much would a $1400 personal loan cost per month?

What credit score do you need for a $1400 loan?

Can I borrow a $1400 loan with a bad credit score?

What do I need to get a $1400 loan?

Other Loans

Credit Score
Credit Unions
Other Loans
Payday Loans
Installment Loans
Personal Loans
Line of Credit
Occupational Loans
Social Status
Tribal Loans
Holiday Loans
Age-Wise
Loans On Goods
Loan Term
Loan Amount
Bank Loans
Service Loans