It takes time to fix a bad credit score (or to build a good credit history if you have none). You're probably wondering if you can still qualify for a loan even if your credit standing is in terrible shape.
Generally, your choices for easy bank loans for bad credit are somewhat limited. Banks and government agencies are out of the question—these lenders deny loan applications from borrowers with low credit scores.
However, other lenders in the Philippines accept and approve loans for people with bad credit histories. You can borrow money for any financial emergency, even with a less-than-ideal credit record. But once approved for a bad credit loan, you must manage it like any other loan.
Here's everything you need to know about bad credit loans in the Philippines.
What is a Bad Credit Loan?
A bad credit loan is another name for a personal or multi-purpose loan that caters mainly to those with a bad credit history.
However, note that bad credit loans are not just for people with poor credit history. Those who don’t have credit at all can also apply and get approved for this type of loan.
How Risky is it to Get a Loan for Bad Credit in the Philippines?
Borrowing from lenders that provide bad credit loans can get expensive and risky. Some lenders charge very high interest and require the principal to be paid off quickly, usually in one to 18 months. The repayments will eat up the bulk of your monthly budget.
If not managed well, your situation can snowball into a debt trap. If you get a secured loan, you might lose your collateral. This hurts your credit history more, so the vicious cycle continues.
So before applying for bad credit loans in the Philippines, proceed with caution. Understand their risks and consider how well you and your budget can handle them.
Read more: Personal Loan Fees: How Much Does It Cost to Borrow Money?
What are the Benefits of Loans for Bad Credit in the Philippines?
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While there are definitely disadvantages to loans for bad credit in the Philippines, they still have their fair share of benefits. Here are some of them:
✔️ Credit History is Usually Not Required
As mentioned, bad credit loans are not just personal loans for bad credit. Those who have zero credit or are just borrowing money for the first time can benefit from lenders in this line of business.
If you’re a financially responsible person with zero debt and credit but happen to run into an emergency, a loan of this type may be helpful.
✔️ Greater Chances of Getting Approved
Many companies that provide bad credit loans don’t have strict requirements. Provide at least your personal information and valid IDs (plus collateral if required), and your application already has a good chance of being approved. However, it will still depend on the type of lender you’re going for.
✔️ Quick Turnaround Time
A lot of these loans are available online. Because some lenders don’t have strict requirements, they can get back to you as soon as possible.
Depending on the process, the lender can deposit the money into your bank account within 30 minutes. Of course, it will depend on the amount you’re borrowing.
✔️ Money Can be Used for Any Purpose
Bad credit loans are multi-purpose in nature. You can use them for emergencies like hospitalization, debt consolidation, and even gadget purchases. But just because you can use it flexibly doesn’t mean you should use it for debt-generating activities, such as gambling.
✔️ High Borrowing Limits
This is especially true for collateral or secured loans such as OR/CR loans. Typically, you can get up to 70% of your car’s value. You can also take home significant loan proceeds when you pawn rare jewelry pieces and high-end items.
Read more: Borrow Easily: How to Get Cash Loans Without a Bank Account
How Can I Get Personal Loans for Bad Credit in the Philippines?
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Most people think bad credit loans in the Philippines are hard to find. But these days, various financial innovations make it easier to borrow money.
Plus, there are still tried-and-tested methods to get the money you need. Here are ways to get a loan, even with bad credit.
Note: This does not, in any way, promote any of these loans for people with bad credit. Understand the risks before applying for a loan for bad credit in the Philippines.
👉 Family Members or Friends
If you need quick and instant cash, your family or friends are the first people you want to visit. Getting a loan from them is easier, especially if they know and understand your financial situation.
The good thing about this option is that your friends or family may charge little to no interest. However, remember that your relationship with them is the collateral. So tread carefully and be diligent when it comes to repayments.
👉 Private Lenders
Private loan providers offer all sorts of loans: cash loans, instant loans, online loans, payday loans, salary loans, and emergency loans. Regardless of what they're called, these loans have minimal requirements and promise quick approval and disbursement.
Bad credit loan providers typically require only valid IDs and a completed application form. The internet makes the application process faster and more convenient than traditional loans. Simply visit the lender's website, fill out an online form, upload the requirements, and wait for a call from the company's representative for data verification.
Approval takes as fast as five to 10 minutes. Loan proceeds are available for withdrawal on the same or the next business day.
While you may quickly get approved for a bad credit loan, you'll be charged a higher interest rate because your credit risk is high.[1] Monthly interest rates for loans from private lenders range from 4% to 7.5%, making them more expensive than loans from banks with only around 1% monthly rates.
Read more:
- How to Compare Personal Loan Rates: Know Which Loan is the Best for You
- Need a Financial Boost? Check Out These 19 Low-Interest Personal Loans
👉 Pawnshops
For those with a poor credit history, another way to secure a loan in the Philippines is to use an asset, such as jewelry or gadgets, as collateral. Such loans are called secured loans.
You can get approved for a loan without a credit report. The amount depends on the value of your collateral. However, if you fail to repay your loan on time, the pawnshop can sell your pawned item to recover its loss.
👉 5-6 Lenders
The 5-6 lending scheme has a bad rap because of its extremely high interest rate of 20%. However, 5-6 lenders have become so deeply rooted in the Filipino culture that people—especially micro and small business owners—still borrow from these lenders.
👉 Online Lenders
The rise of fintech (financial technology) in the Philippines comes with the proliferation of online lenders offering quick cash. It’s an ideal set-up for those needing money, as you can apply via a smartphone or computer.
The loan proceeds can also be deposited into your nominated bank account. You don’t need to leave your home just to complete the process.
However, be careful when choosing an online lender. There have been reported cases of some online lending companies harassing borrowers for failing to settle their debts on time. The lenders would contact the borrower’s relatives and friends to shame the borrower.
In some cases, the lender would compel the relatives or friends to settle the debts on behalf of the borrower.[2] It’s considered a form of unauthorized processing of information, which can be penalized with fines and sanctions. Should you experience this abuse, don’t hesitate to report the lender to the authorities.
👉 Car Collateral Loans
Got a car? If so, you can get quick cash with an OR/CR loan. Because it’s a secured loan, the only requirement is your car’s official receipt and certificate of registration (OR/CR). You won’t have to show your credit history as long as you own the vehicle.
What’s more appealing about this loan is that some lenders don’t require borrowers to surrender their cars.
👉 Home Equity Loans
If the need arises, you can also use your home’s value as collateral and get a home equity loan. Typically, you can qualify for a home equity loan even if you have no credit history or credit card, as long as you're a homeowner.
With a home equity loan, you can borrow an amount equivalent to the market value of your property. But while these types of loans typically offer high amounts, beware—you'll lose your home if you can’t pay off your loan. It's also another significant expense if you’ve already taken out a mortgage to buy your house.
20 Bad Credit Loans in the Philippines with Guaranteed Approval
Not all providers of loans for bad credit in the Philippines are created equal, so you must be careful and thoughtful when choosing one. Here are our top picks:
📌 RFC Cash/Financing Loan
- Loan amount: ₱10,000 to ₱5 million
- Interest rate: Depends on the type of loan, the amount, and the chosen repayment period
- Payment terms: Three to 36 months
Some financial emergencies don’t require a large amount of money, while some require a significant amount. If you’re looking for cash to help you with urgent business needs or funding requirements, Radiowealth Finance Company’s cash or financing loan may be for you.
The processing is fast and convenient. You just need your OR/CR or Transfer Certificate of Title as collateral.
On the RFC website, you can calculate your loan to estimate your monthly payments. If you're ready to apply, click the Apply Now button. Complete the online loan application form by providing the relevant personal and financial information. Submit your application and wait for feedback.
📌 Tala Loan
- Loan amount: Up to ₱25,000
- Interest rate: Flat daily fee of 0.43% to 0.5%
- Approval time: As fast as 24 hours
- Payment terms: One to 61 days
Looking for urgent loans for bad credit in the Philippines? We can’t stress enough how convenient a Tala loan is. You can simply apply for it via your Android phone.
To get a Tala loan, download the app and complete the form. You'll receive an instant decision, and you can get your loan proceeds via your preferred disbursement channels.
It doesn’t require any guarantor or collateral. Because the loan amount is not that high, it’s an ideal solution for minor financial inconveniences.
📌Tonik Credit Builder
- Loan amount: Up to ₱20,000
- Interest rate: Starts at 4.84%
- Approval time: Within two days
- Payment terms: Six, nine, and 12 months
You don't need a credit history to apply for this loan. The Tonik Credit Builder is designed for individuals with low credit scores or limited credit history. Borrow a small amount first and then work your way up to the maximum loanable amount of ₱20,000.
Complete the application process via the Tonik App and get approved within two days. Once approved, Tonik will disburse the loan amount to your account when you answer the post-approval questions and sign the Credit Builder documents.
📌 Security Bank Home Equity Loan
- Loan amount: ₱500,000 to ₱10 million
- Interest rates:
- One year - 8%
- Three years - 8.25%
- Five years - 6.80%
- Approval time: Within five banking days for complete document submission
- Payment terms: Up to 15 years, depending on the property
With the Security Bank Home Equity Loan, you can borrow an amount equivalent to up to 80% of the value of your property. Use it to fund various needs, such as medical emergencies, big-ticket items, tuition fees, etc.
You can easily apply through accredited developers, Security Bank’s website, or a Security Bank branch.
Related reading:
- Study Now, Pay Later: 15 Student Loans in the Philippines
- How to Pay for College Tuition with the SSS Educational Loan
📌 ACOM REVOMAX Loan
- Loan amount: ₱5,000 to to ₱500,000
- Interest rate: 4.988%
- Approval time: Within three to five days
- Payment terms: Flexible but typically six to 10 months
Another option you can explore is the ACOM Revomax Loan, which allows you to borrow an amount from your approved credit limit within your repayment period. If you're a good payer, you can get approved for a higher credit limit without the need to submit additional documents.
To apply, fill out the loan application online or visit any ACOM branch or booth nationwide. Submit your valid IDs, proof of employment, and proof of income. Wait for your loan to be processed.
You can get your cash in your nominated bank account, e-wallet, or at any LBC branch.
📌 AEON Personal Loan
- Loan amount: Depends on credit evaluation
- Interest rate: 2.50% for existing customers, 4% to 6% for new customers
- Processing fees: ₱400 or 3% (whichever is higher)
- Payment terms: Six and 12 months
AEON Credit Service is known for its appliance and furniture loans. But you can also avail of its personal loan to fund your cash needs.
It offers low interest rates, exclusive VIP deals and promotions, and loyalty rewards to its repeat customers. To apply for a loan, you need only the AEON app, two valid IDs, proof of billing, and proof of income.
After that, just wait for the text or phone call regarding your loan application.
📌 Asialink Collateral Loan
- Loan amount: Depending on the valuation of the loan collateral
- Interest rate: Starts at 1.5%
- Approval time: As fast as one day
- Payment terms: Up to 48 months
Like the OR/CR Sangla loans mentioned earlier, this type of loan is protected by a property of value that a borrower will pledge to be approved for a loan. The Asialink Collateral Loan allows you to borrow money in exchange for your land title or car registration.
You can use your car, truck, taxi, PUV, or multi-cab as collateral to leverage a higher loan amount at affordable interest rates. The great thing about this is that you don’t need to surrender your vehicle, which means you can keep using it for personal or business purposes.
As Asialink is an online financing company in the Philippines, you can conveniently apply online and get approved in 24 hours. You can also visit any Asialink branch with your loan requirements and speak to a loan consultant, or apply via telephone.
📌 Blend PH Auto Sangla
- Loan amount: ₱10,000 to ₱3 million
- Interest rate: 1.5%
- Approval time: 24 to 48 hours
- Payment terms: Six to 24 months
If you’re a car owner looking for a bad credit loan in the Philippines, check out Blend PH Auto Sangla. Avail of the loan through Blend PH’s partner lenders. Even if you use your vehicle OR/CR as collateral to get a loan for personal or business purposes, you can keep using your car.
Blend PH offers a high approval rate and flexible payment terms with only minimal documentary requirements. Plus, the application is quick and hassle-free.
Use Blend PH’s online loan calculator to check your eligibility. Register for an account, enter your personal information, and submit the requirements.
After the validation and verification process, Blend PH will endorse your application to the partner lenders. You’ll receive a notification regarding your loan funding and disbursement.
📌 Cashalo Cash Loan
- Loan amount: ₱1,000 to ₱7,000
- Interest rate: 3.95%
- Approval time: Within one day
- Payment terms: Up to 90 days
Looking for fast and convenient access to a loan minus the credit check? You may want to explore the Cashalo Cash Loan for minor funding needs.
To apply for a loan, install the Cashalo app on your mobile device and complete the short online form. After approval, you can receive the loan proceeds within one to three days.
📌 Cash Mart Loan
- Loan amount: ₱3,000 to ₱150,000
- Interest rate: .06% to 1% per day
- Approval time: Within one day
- Payment terms: Weekly, bi-weekly, or monthly
To apply for a Cash Mart loan, you must be an employed or self-employed Filipino, 21 to 50 years old, and currently residing in the Philippines.
Download the Cash Mart app, complete the short online application form, and submit the requirements. Upon submission, Cash Mart will conduct a short verification call and then send you the loan contract, with the loan proceeds disbursed within the day.
📌 Cebuana Lhuillier Pawning
- Loan amount: Depends on the appraised value of your collateral
- Interest rate:
- ₱4 advance interest for every ₱100 loan amount
- An additional 1% of the principal loan for service fee
- Approval time: Same day
- Payment terms: 90 days to four months
If you have valuables like gold, diamond, and platinum jewelry, watches, smartphones, and laptop computers, you can pawn them to Cebuana Lhuillier for quick cash.
Go to any of the 3,000 branches of Cebuana Lhuillier to pawn your item. A more convenient option is pawning it online via the Cebuana from Home website or the Cebuana Express mobile app.
After you place your transaction request, you'll receive an email or call from a Cebuana from Home agent to confirm your request and to arrange the delivery of your loan proceeds.
📌 Digido
- Loan amount: Up to ₱25,000
- Interest rate:
- New borrowers: 0%
- Regular customers: Will vary on the loan amount and term (but will not exceed 1.5% per day)
- Approval time: As fast as one day
- Payment terms: Seven to 180 days
Another provider of bad credit loans in the Philippines is Digido. You can get a short-term loan of up to ₱25,000 with no credit checks and minimal formalities. Apply and get approved for a loan without a guarantor or collateral, even with a poor credit score.
First-time borrowers can loan up to ₱10,000 and pay in seven days with no interest. After which, you can borrow again and get up to ₱25,000 with a loan term of up to 180 days.
You can apply online via its online loan management portal or download the official app at the Google Play Store. Get approved in minutes and receive your money instantly.
No bank account? Digido has branches all over the Philippines where you can cash out your loan proceeds. You’ll be issued a token to submit at any Digido cashpoint in the country to get your money immediately.
📌 Finbro Loan
- Loan amount: ₱1,000 to ₱50,000
- Interest rate: To be confirmed during loan application
- Approval time: 10 minutes to one working day
- Payment terms: 12 months
Are you looking for a bad credit loan option that requires no collateral? Consider Finbro, a popular online loan provider. Finbro offers a minimum payment option to extend your next payment day by another 14 or 30 days if you struggle to make timely payments.
Finbro also promises a quick and easy application process—you need just your smartphone or computer and a valid ID. Submit your application online, and it will be processed in as fast as 10 minutes or up to one working day. Once approved, you’ll receive the money on the same day.
📌 GDFI OR/CR Sangla
- Loan amount: Starts at ₱10,000
- Interest rate: Starts at 1.38%
- Approval time: 24 to 72 hours
- Payment terms: Up to 60 months
One of the loans for bad credit in the Philippines to consider is Global Dominion Financing, Inc.’s OR/CR Sangla. You can get a high loan value while securing a low interest rate. Also, GDFI doesn’t require successful applicants to surrender their cars.
Fill out the short application form on the GDFI website to apply for this loan. A loan specialist will contact you within 24 hours to assist you with your application.
📌 JuanHand Loan
- Loan amount: Up to ₱25,000
- Interest rate: As low as 0.2% daily
- Approval time: As fast as five minutes
- Payment terms: Up to three months
JuanHand is a fintech company that offers loans. First-timers can borrow ₱2,000, while repeat borrowers can get up to ₱25,000. While the amount may seem small, you can apply again for another loan, provided you've proven to be a responsible borrower.
If you get rejected for a loan, you can still reapply after a few days.
To apply for a loan, download the JuanHand app, fill out the application form, provide your information, and wait for approval. Note that you must be a Filipino citizen between 20 and 60 years old with a stable source of income and a valid ID to qualify.
📌 ML Quick Car Loan
- Loan amount: Up to 70% of the appraised value of your vehicle
- Interest rate: Will depend on the unit condition and other factors
- Payment terms: Up to 36 months
M Lhuillier also accepts cars as collateral for a quick cash loan. Acceptable units are 2012 models and up, particularly Toyota, Honda, Nissan, Isuzu, Ford, Suzuki, and Mitsubishi. However, the car should not be older than 10 years upon loan maturity.
To apply, bring your car to any M Lhuillier branch to be inspected and appraised. Fill out the application form and submit it with a photocopy of your OR/CR. Wait for the approval to receive your loan proceeds.
📌 Moneycat Loan
- Loan amount: ₱500 to ₱20,000
- Interest rate: 11.9% per month
- Approval time: Within a day
- Payment terms: Three to six months
Want a hassle-free and fast loan application, approval, and disbursement? Check out Moneycat Loan, which can approve your application and transfer your loan proceeds within 24 hours. It’s an excellent option for small loans with short repayment periods.
To apply, complete the short online application form on the Moneycat website and wait for an SMS notification. Receive the loan proceeds in your bank account after confirming the loan agreement.
📌 Online Loans Pilipinas
- Loan amount: Up to ₱7,000 for new borrowers and up to ₱20,000 for repeat borrowers with good credit standing
- Interest rate: 0% for your first loan
- Approval time: In as fast as five minutes
- Payment terms: 61 to 183 days
Online Loans Pilipinas Financing Inc. is a legitimate loan provider specializing in micro and consumer financing in the Philippines. If you're 22 to 70 years old, employed, and have a valid e-wallet or bank account, you can apply for this loan online and receive the money instantly.
To apply, fill out the short online loan application form with your details, upload a valid ID, and wait for approval within minutes via a call or SMS. You'll receive the loan proceeds afterward via Instapay.
📌 PawnHero
- Loan amount: Depending on the valuation of the loan item
- Interest rate:
- 3.5% for gold and jewelry
- 4.99% for gadgets, luxury watches, and designer bags
- 6% for Apple phones, tablets, and computers
- Approval time: Within one day
- Payment terms: Up to three months (one month for gadgets)
Do you have a smartphone, a luxury watch, a jewelry piece, or a designer bag? You can get quick cash by pawning it online at PawnHero.
This lender also accepts cameras, gaming consoles, sunglasses, soundbars, belts, and designer shoes as collateral. The storage, insurance, pick-up, and return delivery of the collateral are all free.
To get this cash loan, create your pawn ticket by going to www.pawnhero.ph/pawn. Accomplish the form and book your pick-up schedule for your item. Afterward, someone will appraise your item, and you will receive your loan offer. Cash out via Instapay, PESONet, or bank transfer.
📌 SB Finance Car4Cash
- Loan amount: ₱100,000 to ₱2 million
- Interest rate: 1.25% to 2% per month (depending on the age of the car and loan term)
- Approval time: Five to seven banking days
- Payment terms: 12 to 48 months
If you’re looking for a high loan amount and have a car, SB Finance Car4Cash is worth considering. Get the cash you need without ever surrendering your vehicle. Just submit your car’s OR/CR and a few documentary requirements, and you’re good to go!
After checking and meeting the eligibility criteria, you can apply online or at any Security Bank branch and submit your car title loan requirements. Wait for the release of your loan proceeds after the loan verification and car appraisal. Typically, it's credited to your Security Bank account or released via a manager's check.
Tips on Applying for Bad Credit Loans in the Philippines
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If you decide that getting a loan for bad credit is the way to go, follow these tips to help minimize its risks:
- Shop around for lenders. Spend time reading reviews about companies that provide bad credit loans. Compare the lending companies and their offerings.
- Verify if a lender is SEC-registered. Check the Securities and Exchange Commission (SEC) website[3] to ensure you aren't dealing with a scammer.
- Use an online loan calculator. Most providers of online loans for bad credit in the Philippines have a personal loan calculator on their website. Use it to compute how much you can borrow and check the interest rate.
- Never lie in your loan application. Don't hesitate to tell the truth if you have a poor credit record. The lender can easily detect any inconsistency in your information, which can hurt your loan approval chances.
- Submit complete requirements and a fully filled-out application form. Only complete loan applications get accepted.
- Avoid applying for multiple loans. Considering applying to different lenders at the same time to boost your chances of approval? Just don't, no matter how desperate the situation is.
Final Thoughts
Once approved for a bad credit loan in the Philippines, take this as an opportunity to improve your credit score. Consistently pay your monthly amortizations on time. If you're on the verge of defaulting on your loan, negotiate with the lender for a more flexible term.
Focus on how to clear your bad credit history in the Philippines. If you pay off loans without setbacks, it'll be easier to get approved for personal loans with better terms in the future.
🔎 Compare Personal Loans in the Philippines via Moneymax
Looking for other loan options? Save time and effort by comparing your options and applying through Moneymax:
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Sources:
- [1] Credit Risk: Definition, Role of Ratings, and Examples (Investopedia, 2024)
- [2] Online lending app workers nabbed for allegedly harassing clients, contacts (GMA News, 2022)
- [3] SEC List of Online Lending Platforms | Lending Companies | Financing Companies
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