From car repair to medical emergencies, a $1,000 loan can help you cover unexpected life events. In this article, we'll explore installment loans, payday loans, and title loans — the best $1,000 loans for bad credit.
| Features | $1,000 Installment Loan | $1,000 Payday Loan | $1,000 Title Loan |
|---|---|---|---|
| Interest rate | 175% | 450% | 300% |
| Credit check | Yes | No | No |
| Bad credit accepted | Yes | Yes | Yes |
| Unemployed accepted | Yes | Yes | Yes |
| Instant approval | Yes | Yes | No |
| Same-day funding | Yes | Yes | Yes |
| Completely online | Yes | Yes | No |
| Need collateral | No | No | Yes |
Best for low interest rates
#1. Installment loans
The average interest rate on an installment loan is 175%, which would cost you $567.68 in finance charges on a $1,000 loan paid back in 6 months.
Installment loans are the clear-cut #1 option in this group.
These loans have the lowest average interest rate, which will help you save money over the life of the loan.
Plus, installment loans are easily customized, allowing you to choose your preferred loan amount and repayment length.
With fixed monthly payments, they are easy to plan for in your budget.
#2. Title loans
The average interest rate on a title loan is 300%, which would cost you $1032.92 in finance charges on a $1,000 loan paid back in 6 months.
Title loans come in second place when trying to find the lowest average APR.
Title loans require your car’s title as collateral to secure the loan, which results in lower interest rates.
However, unlike installment loans, title loans don’t offer flexible repayment plans. They typically require a larger lump-sum payment at the end of your loan period.
Best for no credit checks
#1. Title loans
Title loans take the checkered flag here for a simple reason: lenders don’t run a credit check when deciding whether to extend a loan.
Instead, lending is based on your car’s value and condition.
If you own your car without a lien and it can pass the lender’s inspection, you have a good chance of getting approved for a $1,000 loan with no credit check!
#2. Installment loans
Installment loans can also be a good option for those who are hesitant to run their credit.
Even though credit checks are required by installment loan lenders, they are mainly focused on major issues on your credit report like bankruptcies and collections.
Your actual credit score is less important for getting approved, so you can still qualify for a $1,000 loan even with a less-than-ideal credit score.
Best for bad credit
#1. Installment loans
If you have less than bad credit, installment loans can be a helpful option because lenders look at more than just your credit score.
Lenders also consider factors such as banking information, income, and your ability to repay.
Bad credit won’t stop you from getting a $1,000 loan at a competitive rate.
#2. Title loans
Title loans are also a good option for a $1,000 loan for bad credit.
Your credit score isn’t part of the approval decision. Instead, lenders secure your loan using your car’s title as collateral.
Title loans also offer lower interest rates than payday loans, which makes them the better financial option.
Best for the unemployed
#1. Installment loans
Being on social security or unemployment doesn’t mean you can’t find a competitive $1,000 loan.
In fact, most lenders will count your benefits checks as regular income, making installment loans ideal for individuals who are unemployed or on full-time disability.
#2. Title loans
Title loans are also a good choice if you’re unemployed or receive regular benefit checks.
Lenders will count your benefit payments as recurring income. However, to get approved for a title loan, you’ll need a working vehicle to offer as collateral. Your vehicle’s title secures the loan, making it less ideal than an installment loan.
Best for instant approvals
#1. Installment loans
If you need a speedy loan decision, installment loans are your #1 option.
With easy online applications, flexible monthly payments, and even same-day funding, installment loans are the way to go if you need to get $1,000 in a hurry — easy decision here!
#2. Payday loans
If instant approval is your top priority, you are better off with a $1,000 payday loan than a title loan.
Title loans require an on-site inspection of your vehicle before any loan decisions can be made.
Online applications enable most payday loan lenders to complete the approval process in seconds.
Keep in mind, however, that payday loans have higher interest rates than installment loans.
Best for same-day funding
#1. Installment loans
Do you need same-day funding for a $1,000 loan? Then, an installment loan is the best way to go.
This loan option ranks the highest because you can receive quick funding with fewer requirements than title loans and payday loans. Better yet, applications can be completed online.
#2. Title loans
Title loans beat out payday loans for same-day funding thanks to better interest rates, which will reduce how much money you need to repay the lender.
Though title loans do require an inspection of your vehicle as part of the approval process, you'll still get your $1,000 loan today.
Best for a completely online experience
#1. Installment loans
Installment loans take this category by a wide margin because they are specifically designed to be 100% online-only.
Your application, the approval process, and even receiving your funds will all be handled online. If you want the convenience of applying for a $1,000 loan online, installment loans are for you!
#2. Payday loans
Payday loans edge title loans as the clear #2 choice in this category.
While there’s a chance you may be asked to come into a physical store to finalize your payday loan, most lenders have transitioned to fully online applications.
If a 100% online experience is your top priority, it shouldn’t be hard to find an online-only payday loan lender.
Best for no collateral
#1. Installment loans
Installment loans easily win the gold medal in this category.
With the best interest rates, accessible online applications, and no collateral required as part of the approval decision, installment loans are a great option.
While payday loans also don’t require collateral, installment loans offer a much lower interest rate, which will help you save money.
#2. Payday loans
Payday loans rank second in this category because they also don’t require collateral.
Some payday loan lenders may ask you to visit their store to write a check for the loan amount (including any fees), but this is still more convenient than offering your car’s title as collateral.
Keep in mind that payday loans have much higher interest rates than installment loans, making them a more expensive option.
