Borrowing with bad credit: what we look at instead of your score
We publish no minimum score because, for loans of this size, it is a poor predictor on its own. Here is what we actually weigh, why nobody can guarantee approval, and how to rebuild without making things worse.
Last updated 15 September 2026Figures as of 15 September 2026
What a low score actually tells a lender
A credit score is a summary of how you have handled credit in the past. It is not a measure of your character, your income, or whether you can afford a payment today. It is one input, and on its own it is a poor predictor for the borrowers we serve.
That is why we do not publish a minimum. Applicants in the mid-500s are approved regularly here when income is verifiable and recent banking activity is clean. A file with a repossession three years ago and steady deposits since then reads very differently from a file with a clean score and no traceable income.
What we are really asking is narrower than "are you creditworthy": can this payment be made, on this schedule, from this account, without pushing you somewhere worse?
Roughly how scores are banded
- Below 580 is usually described as poor. Bank personal loans are rare here; we approve in this band regularly.
- 580 to 669 is fair. Options widen, and this is where checking a credit union first really pays.
- 670 and above is good. If you are here, you can almost certainly beat our rates elsewhere and should try.
- No score at all is not the same as a bad one, and is often easier to work with.
The "no credit check" claim, explained honestly
It is one of the most searched phrases in lending and one of the most misleading.
What we actually do
Checking your rate uses a soft credit inquiry. It is visible only to you and has no effect on your score. A hard inquiry is made only after you accept an offer and move to final verification, and we tell you before it happens.
So: not "no credit check". No credit check until you decide to proceed.
Why genuinely no-check lending is a warning sign
A lender that checks nothing has no idea whether you can repay, and prices for that by charging far more, or by securing the loan against your car. Payday and title lenders occupy that space. "No credit check" usually means "no affordability check either", which is not a favour to the borrower.
Nobody can guarantee approval
Any lender advertising guaranteed approval is either not a lender or not being straight with you. We decline applications every day, and we would rather say so here than imply otherwise. If someone guarantees approval and then asks for an upfront fee to release the funds, it is a scam; report it through our complaints page.
What we look at instead of the score
In roughly the order of weight they carry for a $200 to $5,000 loan.
Traceable income
Money arriving in the account on a recognisable rhythm. Employment, self-employment, benefits, pension and disability income all count.
Room in the budget
Whether the new payment fits alongside what already leaves the account each month, with something left over.
Recent account behaviour
Returned payments and sustained overdrafts in the last 30 days matter far more than a default from four years ago.
How much you asked for
A request that matches the problem approves more often than a request for the maximum available.
Using a small loan to rebuild, without making it worse
Borrowing to build credit only works if the loan is one you were always going to be able to repay. A $700 advance at 34.99% over 6 months costs $73.16 in interest and reports six payments to the bureau. That trade is worth it only if those six payments are certain.
Borrow small
The credit file records that you paid on time. It does not record how large the loan was, so there is no advantage in borrowing more.
Match the debit to your payday
Weekly, biweekly or monthly. A payment that lands two days before your income does is the single most common cause of a returned debit.
Never miss one
One missed payment reported to the bureau undoes several on-time ones. If a payment will be short, Contact support before the due date, not after.
Finish, then stop
Close it out and leave it alone for a while. Rolling straight into another loan turns a credit-building exercise into a habit.
Check the free options first
A secured credit card or a credit union credit-builder loan does the same job for a fraction of the cost, because you are not paying 30% interest for the privilege of being reported. Borrow from us because you need the money, and treat the credit reporting as a side benefit rather than the reason.
Which product fits a thin or damaged file
All four are assessed from one application, so you do not need to choose before you apply.
Usually the best starting point
- Cash advance of $200 to $1,000 over 2 to 6 months. Small, short, and finished quickly.
- Shop Now, Pay Later, if what you need is an appliance or a laptop rather than cash.
Usually later, once there is history
- Installment loans of $1,000 to $5,000, where affordability is examined more closely.
- Line of credit, where cash access is a separate qualification that opens after three on-time payments.
Who we lend to
A thin or damaged file shows up differently depending on how you earn and what happened before. These pages cover each situation in detail.
No credit check loans
What the phrase really means, who genuinely skips the check, and what it costs.
Read itSelf-employed borrowers
Assessed on three to six months of deposits rather than on pay stubs.
Read itGig and 1099 workers
Income that arrives unevenly, and how to time a debit to a payout.
Read itBenefits and pension income
SSI, SSDI, veterans benefits and pensions, plus your rights under ECOA.
Read itAfter a bankruptcy
Why a discharged case is not a decline reason, and an open one is.
Read itFirst-time borrowers
No credit history at all, and the cheapest ways to start a file.
Read itCommon questions
Can I get a loan with bad credit?
Often, yes. We publish no minimum credit score, and applicants in the mid-500s are approved regularly when income is verifiable and recent banking activity is clean. Approval is never guaranteed.
Does MDG do a no credit check loan?
No, and neither does any responsible lender. Checking your rate uses a soft inquiry that does not affect your score, and a hard inquiry is made only after you accept an offer. A lender that checks nothing usually charges far more to cover the risk.
Will applying lower my credit score?
Prequalification will not, because it uses a soft inquiry visible only to you. A hard inquiry happens only when you accept an offer and move to final verification, and we tell you before it does.
What if I have no credit history at all?
A thin file is not the same as a bad one and is often easier to work with, because there is nothing negative to weigh against verified income and steady banking activity.
Can a loan actually improve my credit?
It can. Payment activity is reported to a national credit bureau every month, so on-time payments add positive history. Missed payments are reported too, so only borrow an amount you are confident of repaying.
I was declined. Does that hurt my score?
The decline itself is not recorded on your credit file. A hard inquiry may be, if the application reached final verification. Read the adverse action notice, fix the specific reason it names, and apply again when that has genuinely changed.
Related pages
Everything on this page links back to the product pages and disclosures it refers to.
See your own numbers before you decide
Two minutes, a soft credit inquiry, no fee and no obligation. Nothing is binding until you sign a loan agreement.