| Loan amount | $200–$2,500 |
|---|---|
| APR range | 18.99%–35.99% |
| Repayment term | 3–24 months, fixed payments |
| Credit check to see rates | Soft inquiry (no score impact) |
| Funding | Typically next business day after signing |
| Prepayment penalty | None |
What Loanify looks at beyond your credit score
Traditional banks often decline applicants based largely on a FICO® score cutoff. Loanify takes a broader view. When you apply, the review considers:
- Income and its stability: how long you've had your current job or income source, including gig work and benefits.
- Debt-to-income ratio (DTI): the share of your gross monthly income already committed to debt payments.
- Recent credit behavior: recent on-time payments count, and a late payment from three years ago matters less than one last month.
- Bank account history: consistent deposits and a low number of recent overdrafts.
This approach means some borrowers with scores in the 500s or low 600s can qualify, although approval is never guaranteed.
What to expect as a bad credit borrower
Being honest about pricing is part of our job. Borrowers with lower credit scores are more likely to receive:
- Higher APRs, typically toward the upper end of our 5.99%–35.99% range
- Smaller initial loan amounts, often $200 to $2,500 for a first loan
- Shorter terms, which keep total interest lower
Loanify caps APRs at 35.99%. That's significantly lower than payday loans or car title loans, which can exceed 300% APR, but it's still expensive credit. Borrow carefully.
A smaller first loan isn't a penalty. It's a way to prove the relationship. Borrowers who repay a $600 loan on time are in a much stronger position for their next application, with us or with anyone else.Lending tip from the Loanify Editorial Team
Using a Loanify loan to rebuild credit
Payment history is the largest factor in FICO® scores, at about 35%. Loanify reports your payment activity to major credit bureaus, so a record of on-time payments can help strengthen your credit file over time. Late payments are reported too, which is why choosing an affordable payment matters so much.
An installment loan can also add to your "credit mix," which accounts for about 10% of a FICO® score. It's a small factor, but it can help if your file currently shows only credit cards.
Six ways to improve your approval odds
- Request a realistic amount. A smaller request is easier to approve.
- Pull your free credit reports at AnnualCreditReport.com and dispute any errors first.
- Pay down a credit card balance, even slightly, to lower utilization.
- Avoid other credit applications in the weeks before you apply.
- Have recent pay stubs or bank statements ready to verify income quickly.
- Use a checking account that's been open for at least a few months.
Frequently asked questions
What credit score do I need for a Loanify bad credit loan?
Loanify doesn't publish a hard minimum. Applicants with scores in the 500s and 600s may qualify depending on income, DTI and recent payment history.
Will Loanify approve me if I've had a bankruptcy?
A discharged bankruptcy doesn't automatically disqualify you, but an active bankruptcy case does. Time since discharge and recent payment history both matter.
Does Loanify report to credit bureaus?
Yes. Loanify reports payment activity to major credit bureaus, so on-time payments can help build your credit history.
Is a bad credit loan from Loanify a payday loan?
No. Loanify loans are installment loans with multiple fixed payments and APRs capped at 35.99%, unlike payday loans, which are usually due in full in about two weeks.
About the Loanify Editorial Team
Our guides are researched, written and fact-checked against federal lending rules, CFPB guidance and current loan terms. Every payment example is calculated with the standard amortization formula. Read our editorial policy.