Category: Financing & Loans

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How To Check the Status of Your Employee Retention Credit

Progress bar showing the status of ERC refund

After filing your employee retention credit, you’ll want that money to arrive as fast as possible. While you wait, you’ll undoubtedly be left wondering when that refund check will come. This article explains how to check the status of your employee retention credit and offers tips to avoid any delays along the way.

Use Bottomline Concepts for streamlined and speedy ERC filing!

Make Sure You Qualify

Even if you’ve already submitted your employee retention credit request to the IRS, you may not receive anything back at all. The government has very specific guidelines depicting which businesses are eligible for money back.

To qualify for a refund, your business must have experienced one of the following:

  • Your business was completely or partially closed from a government order in your state. This order must have come as a result of the COVID-19 pandemic
  • Your business faced a certain decline in gross receipts

The government’s definition of “a decline in gross receipts” changed between 2020 and 2021. 

For the 2020 calendar, a company must have at least a 50% decrease in gross receipts for each quarter compared to the same period in 2019. The refund could only apply to companies with 100 full-time employees or less, excluding owners.

In 2021, businesses only needed a 20% drop in gross receipts per quarter compared to 2019’s numbers. The government also allowed businesses with up to 500 full-time employees to participate.

If neither of the above bullet points applied to your organization during 2020 and 2021, the IRS won’t be cutting you a check. ERC filing services such as Bottomline Concepts and ERC Assistant have free questionnaires you can use to see if you qualify for a refund.

>>> Related Post: What is the Deadline for the Employee Retention Credit?

How To Check the Status of Your Employee Retention Credit

Businesses often find themselves in radio silence after submitting employee retention credit forms to the IRS. There are ways to check on the status of your claim if you don’t want to just wait around.

1. Check With Your ERC Filing Service

Using an ERC filing service can often expedite the submission process of your claim. Since these companies understand the process, they can calculate your exact refund amount faster and know which paperwork to deal with.

This intimate knowledge typically gets your documentation in front of the IRS faster than if you had filed it yourself, leading to a quicker refund. It also greatly reduces the likelihood of errors in your filing that could delay results down the road.

Many ERC filing services keep detailed records of each submission and may have an idea of when to expect your reimbursement. You can reach out to the company you used and see what information they have for you.

2. Call the IRS Directly

You can also check the status of your refund by calling the IRS directly. It’s possible to call 877-777-4778 to speak with a live agent.

You’ll need to provide proof of your identity while on the call. This could include your legal name, social security number, business name, employer identification number, or more.

While on the line, you can ask questions about your claim and see how much longer you’ll have to wait. The IRS receives countless calls each day, so getting through to someone may take a considerable amount of time.

Luckily, there’s an easier way to check on your refund through the IRS’s online portal.

3. Use the IRS Refund Status Tool

The fastest way to receive an update on your reimbursement is right on the IRS website. Through the IRS’s refund status tool, you can see the status of your claim and when a check should be coming your way.

To see your refund status, you’ll need to choose the tax year you’re inquiring about. You must pick either 2020 or 2021 as part of your search. If you qualify for reimbursement for both years, you will have to perform another check for the other calendar year.

The tool is updated every day with the latest news on your application. It can also alert you to issues that may throw a cog into the timeline.

This way, you can address these issues before the IRS contacts you and get the process back on track. Otherwise, you’re just wasting valuable time while your claim remains stagnant.

When Should You Expect Your Employee Retention Credit?

At last count, the IRS still has more than 300,000 unprocessed forms from businesses that requested employee retention credit. Each form is an amendment of payroll paperwork processed during the COVID-19 pandemic, leading to lots of cross-checking of information.

When the ERC process first began, businesses were receiving refunds in about a month’s time. With so many requests now in the queue, you may find yourself waiting between six months and a year for your money to arrive.

The IRS chose to follow stringent restrictions during the height of the COVID-19 pandemic, facing shutdowns and staff limitations. Many employees had to work remotely, leading to much of the delay we’re facing today.

It also didn’t help to have so many businesses submit claims in the same time frame. Each request must pass through a stringent process to ensure companies receive the correct amounts owed to them. Any mistakes in applications only slow the process more.

Is There a Way to Speed Up the Process?

In the past, the IRS offered Form 7200 for businesses to apply for advanced payment or their ERC credit. As of January 2022, this form is no longer available for use.

Unfortunately, there’s nothing you can do to expedite your refund. Once you click that submit button, all you can do is sit back and wait until the IRS processes your claim.

If you have yet to submit your claim, do your do-diligence in making sure all the information listed on your Form 941-X is correct. Submitting accurate information the first time around will help things considerably.

You can check the status of your claim periodically to see if your application has hit a snag somewhere along the way. Being proactive about fixing an issue can get your submission back on track with minimal time lost.

Issues That Could Delay Your Employee Retention Credit

The IRS application backlog aside, there are a few factors that could delay your employee retention credit. Here are a few issues that slow the process down.

Miscalculating Your ERC Refund Totals

When walking through Form 941-X to amend your 2020 and 2021 payroll taxes, getting every number exactly right is vital. A mismatch with a decimal place or failing to carry a one will lead to incorrect totals.

You’re allowed up to $5,000 per employee for 2020 and $21,000 per employee for 2021. The IRS caps qualifying wages at $10,000 for the purpose of employee retention credit no matter how much each staff member actually makes.

It’s possible to skip most of the lines on your Form 941-X when filing an amendment, but the form still isn’t very clear. Use our employee retention credit guide to make sure you didn’t miss a step.

If there are errors, you’ll have to wait for the IRS to find these errors before you’ll get the chance to fix them.

Missing Information on Form 941-X

In addition to numbers, Form 941-X requires information about you and your business. Failing to provide all the necessary data will surely lead to delays.

As you move through the document, you’ll need to check the correct boxes to inform the IRS of the purpose of your request. If there’s any confusion about your submission, the IRS could reject your refund.

Note that you’ll need a Form 941-X for each quarter you’re correcting for the two years employee retention credit was available. This could mean a total of four forms if you’re requesting funds for 2020 and the first three quarters of 2021.

Large ERC Refunds

It should come as no surprise that larger-than-usual ERC refunds are going to slow down the system. Keep in mind that you can only request a refund for 2020 if your company has less than 100 full-time employees. You can have up to 500 people on your team for 2021 requests.

Getting Money in the Meantime

Some businesses may not be able to survive the long wait times currently plaguing the ERC refund process. If this is you, consider one of the following options to keep your company afloat.

ERC Bridge Loans

A handful of ERC filing services like Omega Accounting Solutions and Lendio offer bridge loans as part of their package. While these companies handle all the nuances of your claim, you can also receive immediate funds to bridge the gap between filing and payment.

In most cases, you can have extra funds deposited into your bank account within a few business days of your request. This is typically quite a bit faster than a traditional loan to get you up and running faster.

Interest rates and other payback requirements vary from provider to provider. You’ll need to work directly with the company to determine your monthly payments and loan length.

Traditional Loans

Your business bank account may be willing to toss a loan your way if you’ve built enough of a rapport with them. The amount you’re eligible for and contract terms hinge primarily on your financial dealings and how well you’ve been able to uphold your credit score.

Many banks have caps on the amounts they’re willing to give, while others can limit loans to specific business purposes. You’ll want carefully look through your options before making a decision.

Be sure to consider how much it will cost you to pay back your loan over time. The last thing you want is to find yourself in an even worse spot in the future because you took out too much or agreed to impossible terms. 

It’s Not Too Late to File Your Claim

If your business meets the criteria for employee retention credit, it’s not too late to submit a claim. It’s possible to amend your original payroll tax forms (Form 941) from 2020 or 2021 using Form 941-X for up to three years.

You can submit an employee retention credit request for 2020 up until April 15, 2024. To receive a refund for any of the first three quarters of 2021, you have until April 15, 2025 to send in your documentation.

How To Check the Status of Your Employee Retention Credit Frequently Asked Questions (FAQs)

Still have questions about employee retention credit? This FAQ may have the answers you’re looking for.

Bottom Line on How To Check the Status of Your Employee Retention Credit

The employee retention credit process isn’t an easy one. Businesses can find themselves waiting upwards of one year before receiving any payments, potentially stretching existing funds to the limit. Filing issues can further complicate the system, leading to even longer delays. Using an ERC filing service is the best way to maximize your chances of getting your credit the fastest.

Check out Bottomline Concepts today for fast and efficient ERC filing!

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What is the Deadline for the Employee Retention Credit?

The word "deadline" written boldly on an office calendar

Many companies experienced lost revenue to the COVID-19 pandemic but chose to keep employees on the payroll. To compensate small and medium-sized businesses, the government offered employee retention credit to help them stay afloat. Did you miss the window to receive your reimbursement? Read on to find out.

Use Bottomline Concepts for streamlined and speedy ERC filing!

Employee Retention Credit Explained

When the COVID-19 pandemic hit the United States in force, many state governments shut down businesses to keep people safe. Employers were left wondering what to do with employees.

Many good-natured souls kept staff on the payroll to help people make ends meet and in hopes the shutdown would come to a quick end. In some cases, companies still dealt with issues well into 2021.

The government created employee retention credit (ERC) as a way for small and medium businesses to recover payroll costs during slow times. Business owners could request credit from 2020 until the fall of the following year.

What Are the Eligibility Requirements for ERC?

To qualify for employee retention credit, your business must have experienced at least one of the following:

  • Your business was completely or partially closed from a government order in your state. This order must have come as a result of the COVID-19 pandemic.
  • Your business faced a certain decline in gross receipts

.The government’s rules surrounding “a decline in gross receipts” varied between 2020 and 2021.

Businesses in 2020 must have seen at least a 50% drop in gross receipts when compared to the same interval in 2019. Only companies with 100 full-time staff or less are able to apply.

In 2021, businesses only needed a 20% decrease in gross receipts to qualify. The government also allowed organizations of up to 500 full-time employees to take part.

What is the Deadline for the Employee Retention Credit?

The employee retention credit program may be at an end, but it’s not too late for your business to submit a request for funds. However, there are two deadlines you’ll need to watch out for.

Any amendments to your 2020 filing must be completed no later than April 15, 2024. Similarly, changes to your 2021 payroll tax forms must be submitted by April 15, 2025 at the latest.

How to Apply for Employee Retention Credit

Employee retention credit comes from your payroll taxes, which you’ve already submitted for 2020 and 2021. To claim a reimbursement of funds owed as a result of this program, you’ll need to file an amendment to those payroll forms.

The IRS uses Form 941-X specifically for this purpose. You’ll have to file one form for each quarter you’re requesting funds from.

You can get away with just one form for 2020, but you’ll need to submit a unique Form 941-X for each of the first three quarters of 2021, assuming you qualify.

Bottom Line on What is the Deadline for the Employee Retention Credit

Although the employee retention credit program has come and gone, it’s not too late for your business to file for a refund. Submitting your application requires careful completion of Form 941-X for each quarter you’re requesting credit from. The IRS handles these forms as they can, but many businesses are waiting between six months and a year for their check.

If you want to speed up the process, using an ERC filing service may be your best bet. Companies like Bottomline Concepts will help you navigate the complicated process and get your form in front of the IRS that much faster. Such a service also minimizes your chances for errors that can lead to delays or no payment at all.

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How To File Your Employee Retention Credit in 6 Steps

Two businessmen in formal wear preparing documents to file for ERC

The COVID-19 pandemic was a major thorn in the side of many businesses, and many are still trying to recover. To compensate, the government offers employee retention credit accessible through payroll tax amendments. Read on to find out if your business is eligible for the refund and how to file your employee retention credit yourself.

Use Bottomline Concepts for streamlined and speedy ERC filing!

What is the Employee Retention Tax Credit?

Employee retention credit (ERC) is a tax credit available to businesses choosing to retain their employees during the COVID-19 pandemic. It is a refundable grant made possible by the Coronavirus Aid, Relief, and Economic Security (CARES) Act established in 2020.

In effect, companies affected by shutdowns or significant declines in gross receipts in 2020 and 2021 may be eligible for financial help from the government. Only small to medium-sized businesses can benefit from the package.

As part of a greater pandemic relief fund, employers can receive up to $26,000 per employee retained. It’s possible to collect up to $5,000 for each employee in 2020 and $7,000 per employee for the first three quarters of 2021. The amount your company is eligible for depends on qualified wages and any healthcare paid to your team.

What Companies Qualify for the Employee Retention Tax Credit?

To qualify for an employee retention tax credit, your business or non-profit must meet the government’s criteria for 2020 and 2021. Companies need to have experienced at least one of the following to meet requirements:

  • Your business was completely or partially closed from a government order in your state. This order must have come as a result of the COVID-19 pandemic.
  • Your business faced a certain decline in gross receipts.

Rules for a “decline in gross receipts” changed from 2020 to 2021. For the 2020 tax calendar, your company must have seen a 50% decrease in gross receipts for each quarter compared to 2019’s numbers during the same time frame. Businesses could only have 100 or fewer full-time employees, not including the owners.

The government changed things up in 2021, stating businesses must have at least a 20% drop in gross receipts per quarter compared to 2019. For this period, companies could qualify if they had less than 500 full-time employees, excluding ownership.

What’s the Deadline for Applying for an ERC Refund?

Usually, you can amend errors or make adjustments to your payroll taxes for up to three years after filing. For interested businesses, there’s still time to send in applications for ERC. For 2020 claims, you have until April 15, 2024 to file for a refund. All 2021 amendments have until April 15, 2025.

How To File Your Employee Retention Credit In 6 Steps

The CARES act has come and gone, but it’s not too late to apply for your employee retention credit. Here are the steps you need to take to earn your reimbursement from the government.

Step 1: Pull Together Your Business Payroll Paperwork

You’ll need your payroll information from both the 2020 and 2021 tax calendars before going any further with the process. If you weren’t able to keep meticulous records during that time, you may have to consult an outside party to help gather up this information.

Knowing how many employees you kept on the payroll during the pandemic is paramount to determining whether or not you’re eligible for a payback from the government. With this documentation in hand, you can determine if your company qualifies.

Step 2: Determine if You’re Eligible

Not every small or medium-sized business is eligible for employee retention credit. Since the CARES act stretched out over two years, requirements shifted from one year to the next.

If your state government imposed shutdowns that affected your business at any point during the COVID-19 pandemic, you’ll qualify for the employee retention credit. This also includes interruptions to trade or logistics due to mandates.

Otherwise, you can still benefit from employee retention credit if you suffered losses in revenue. During the 2020 tax bracket, you must have seen a 50% decrease in gross receipts from the same quarter in 2019. For 2021, you had to earn less than 80% over the same period in 2019.

To qualify for 2020’s credit, your business had to have less than 100 full-time employees. The government increased this number to 500 for the three quarters of eligibility in 2021.

Any business meeting these criteria can claim employee retention credit for staff kept on hand during the COVID-19 pandemic.

Step 3: Calculate Your Credit

There’s no way to receive back everything you paid employees during 2020 and 2021. The government caps qualifying wages at $10,000 for each employee per interval the employee retention credit is in effect.

In 2020, the government offered 50% of qualifying wages back to business owners for each employee you kept on the books. This means the IRS will pay up to $5,000 per team member.

2021 saw a considerable increase in government payouts to businesses. For the first three quarters of the year, employers could collect 70% of qualifying wages paid to employees. Since this reimbursement affected three quarters, companies were eligible to receive up to $21,000 per employee.

Consider this example: Fred’s Tackle Shop kept its ten employees on the payroll throughout the shutdown. Each employee earns $30,000 per year working at the tackle shop.

Although employees make more than $10,000, the government limits eligible wages to this amount. For all of 2020, the government rewards Fred with $5,000 per employee (50% of qualifying wages) for the year. Fred’s credit for 2020 is $50,000.

During 2021, Fred will receive 70% of qualifying wages per employee for the first three quarters of the year. He can collect $7,000 for each of his staff for a total of $70,000 per quarter. Being eligible for three quarters, Fred will receive $210,000 for 2021.

Step 4: Fill Out Form 941-X

With the total credit in mind for your business, you can now file a return with the IRS. Because the ERC expired in 2021, you’ll need to complete a Form 941-X to compensate for funds you were eligible for from a previous quarter.

You’ll need to have each original Form 941 you filed, and you can only fill out a Form 941-X for one quarter at a time. If you’re collecting employee retention credit for 2020 and 2021, you’ll need to fill out four separate forms.

The initial section asks for your company information, including your business name, address, and employer identification number. Under Part 1, check that you’re filing a Claim for overreported tax amounts.

In Part 2, check the box on line 3 and the box under 5d stating you didn’t withhold any money from your employees.

For Part 3, your main focuses are the boxes under line 18a for nonrefundable portions of employee retention credit. Use Worksheet 1 from your Form 941 to determine your nonrefundable portion of the ERC. Record your total from line 18a on line 23.

You’ll use line 26a to record your refundable employee retention credit. This information also comes from Worksheet 1 of Form 941 you filed for the representative quarter. Line 27 captures the total sum of lines 23 and 26a.

Line 30 is where you record your qualified wages for the employee retention credit. Finally, under line 43, you’ll need to write out a detailed summary explaining you’re looking for amended ERC returns.

The process is a bit tedious, and you can only file a correction for one quarter at a time. It’s imperative to fill out the form completely and accurately, lest you risk running into delays in receiving your reimbursement from the IRS.

Should the process seem daunting to you, it may be in your best interest to make use of an ERC company versed in filing these forms. Bottomline Concepts is our top choice for fast and affordable processing.

Step 5: Submit the Form to the IRS

Now that your Form 941-X is complete, you’ll want to get it in front of the IRS as soon as possible. Luckily, you can send it in the same way you submit your normal payroll forms.

The IRS doesn’t allow you to submit Form 941-X electronically. Depending on your state, you’ll need to mail it to the Department of Treasury in either Ohio or Utah.

Step 6: Wait for your Reimbursement

At this stage of the game, the IRS has been receiving requests for employee retention credits for almost three years. The result is a backlog of forms leading to processing delays for your refund.

While there’s no way to say for sure how long you can expect to wait, plan for somewhere between six months and a year to receive your ERC funds from the government.

If your business finds itself in dire financial straits, ERC processing companies like Omega Accounting Solutions offer bridge loans to keep you afloat. You’ll receive funds within a few business days to cover expenses while you wait for that refund to appear.

Employee Retention Credit Vs. the Paycheck Protection Program

The CARES act introduced both employee retention credit and the paycheck protection program in 2020. How do they relate, and can a company make claims on each one?

What is the Paycheck Protection Program?

When the COVID-19 pandemic first hit, some companies turned to the payroll protection program (PPP) offered by the Small Business Administration for help. The program provides loans of up to $10 million for organizations struggling from the effects of the virus.

Businesses could use these loans to cover a mortgage or rent, utilities, or payroll costs. The loan is completely forgivable if used for such expenses. Employers must file an application for forgiveness within a certain time period or be liable for repayment.

Can I File for Employee Retention Credit if My Business Received a PPP Loan?

At first, the government would not let businesses benefit from both ERC and PPP. The Consolidated Appropriations Act of 2020 changed the rules, allowing companies to take advantage of both financial aid opportunities.

A business must still meet the requirements for a PPP loan or employee retention credit. The criteria for each are different, and some organizations may only qualify for one.

It’s also worth noting that businesses cannot double dip with payroll expenses. You can’t list a payroll expense as a forgivable cost for PPP forgiveness and list it as an ERC wage as well.

Use an ERC Company to File Your Credit

Completing and submitting your employee retention credit request to the IRS takes a lot of work. If you aren’t sure you can make it from start to finish, don’t give up hope.

There are a handful of ERC companies that have stepped forward to complete the entire process for you. Some even offer a free questionnaire to see if you qualify. They only get paid if and when you receive your reimbursement from the government.

Here are our favorite ERC companies you can use to get every penny you deserve from the loss of revenue caused by the COVID-19 pandemic.

Bottomline Concepts logo

Bottomline Concepts

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Bottomline Concepts is our top overall pick for receiving your ERC from the government. It already has a proven track record of collecting refunds from well-known organizations. Just some of its clients include GNC, Domino’s, Martha Stewart Living, and the Boston Red Sox.

The company’s transparent about the $4 billion in credits recovered and doesn’t shy away from posting a contact number on the front page of its website. You can complete the online form to see if you qualify for a grant or set up a time to talk with someone on the phone.

There’s no mention of Bottomline Concepts’ fees on its website, but it is clear the team takes a portion of your refund to cover their costs. You don’t have to worry about payments until Bottomline Concepts confirms your refund. If you do not collect a reimbursement, there’s no need to pay.

  • Worked with several well-known companies
  • Over $1.2 billion in credits recovered
  • No risk for your business
  • Undisclosed pricing
  • Can take a bit of time to get a call back
  • Does not offer bridge loans
Omega Accounting Solutions logo

Omega Accounting Solutions

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Omega Accounting Solutions is a larger firm specializing in a range of tax credits. Its focus of late has been on ERC and the money it can bring back to businesses.

Its team has a deep understanding of the law and will work for you to earn the best refund possible. They double-check their work every step of the way to avoid time-consuming mistakes. This way, you receive your funds faster.

You’ll start the process by completing an eligibility form on Omega’s website. If you meet government requirements, you’ll need to upload payroll documents from 2020 and 2021 for Omega to analyze. They’ll run all the calculations and provide you with the completed forms to send to the IRS.

If you’re in need of immediate funds, Omega Accounting Solutions has bridge loans to take advantage of. The amount your business can receive depends on your expected ERC refund. There’s no need to pay anything upfront, and you’ll receive funds in as little as three days.

  • Offers bridge loans
  • Quick application process
  • Features an ERC calculator
  • Does not offer pricing information
  • Somewhat confusing setup
  • Smaller client base
ERC Assistant logo

ERC Assistant

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A group of like-minded business owners formed ERC Assistant after walking through the employee retention credit process themselves. After receiving $1.5 million more than estimated, they set out to help other companies do the same.

The process begins with a short 45-second questionnaire to see if you qualify. If you do, ERC Assistant recommends the best accounting firm based on your quiz results. Using a firm that understands your business type expedites each step and maximizes your chances of success.

With a streamlined process, you could have forms submitted in as little as one to two weeks. In most cases, you can cut out your payroll company to save even more time and money.

ERC Assistant points out that fees are unique to each company due to differing amounts of effort and your choice of firm. No matter who you go with, ERC Assistant’s secure client portal keeps your information safe along the way.

  • Formed by a team of fellow business owners
  • Accounting firm recommendations
  • Quick qualification process
  • No pricing information listed
  • Does not offer bridge loans
  • Results are not guaranteed

How to Check the Status of Your ERC Refund

ERC refunds from the IRS take several months to process, but you don’t have to be kept in the dark the entire time. Here are three ways to discover the status of funds coming your way from the government.

1. Check With Your ERC Filing Service

If you filed through an ERC filing service, they often have detailed information on the filing process and when your refund should arrive. Many times, these companies get your application in front of the IRS faster, leading to quicker reimbursement.

2. Call the IRS

The IRS has a phone number on its refund inquiries page you can call to get information about your claim. An IRS agent will eventually pick up and answer questions you have about your refund.

As you might expect, the IRS has a constant backlog of phone calls, and it can take some time for an agent to get on the line. Luckily, there’s an easier way to check on your refund through the IRS’s online portal.

3. Use the IRS Refund Status Tool

To get a quick status update on your ERC refund, look no further than the IRS’s refund status tool. It’s updated every day with information about your claim and when you might expect a check in the mail.

The tool can also alert you to issues with your claim that need attention. It may take some time to hear from the IRS otherwise, leaving your money stuck in processing way longer than it needs to be.

How To File Your Employee Retention Credit Frequently Asked Questions (FAQs)

Looking for more information about employee retention credit and the filing process? This FAQ may have the answers you’re looking for.

Bottom Line on How To File Your Employee Retention Credit

The employee retention credit can infuse some much-needed funds into your small or medium-sized business. However, it takes a solid understanding of your payroll system to maximize your refund. If you’d like some help, turn to a reputable ERC company to handle much of the process for you.

Check out Bottomline Concepts today for fast and efficient ERC filing!

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The 7 Best ERC Companies and Agencies for 2023

Hand holding colored tiles with the text "ERC"

The COVID pandemic hurt a lot of small and medium-sized businesses. To compensate, the government offers employee retention credit to inject funds into companies meeting specific requirements. Is your business missing out on some much-needed funds? Read on to learn about how employee retention credit works and the best ERC companies and agencies that offer amazing ERC services to use for getting that refund.

What is Employee Retention Credit?

Employee retention credit (ERC) is a tax credit available to businesses choosing to retain their employees during the COVID-19 pandemic. It is a refundable grant made possible by the Coronavirus Aid, Relief, and Economic Security (CARES) Act established in 2020.

In effect, companies affected by shutdowns or significant declines in gross receipts in 2020 and 2021 may be eligible for financial help from the government. Only small to medium-sized businesses can benefit from the package.

As part of a greater pandemic relief fund, employers can receive up to $26,000 per employee retained. It’s possible to collect up to $5,000 for each employee in 2020 and $7,000 per employee for the first three quarters of 2021. The amount your company is eligible for depends on qualified wages and any healthcare paid to your team.

The 7 Best ERC Services for 2023

As we searched for the best ERC companies, we considered ERC tax credit, service costs, and the availability of bridge loans to keep the lights on. We also looked at the overall qualifying process for eligibility and the processing time to file your claim. Finally, we checked for other features that set each company apart.

Check here for a more detailed explanation of our methodology.

ERC Company

Pricing

Bridge Loan Availability

Qualifying Process

Processing Time

Other Features

Omega Accounting Solutions

Not listed

Yes, financing in as little as three days

Free 10 minute consultation

Not Listed

Employee retention credit calculator

Bottomline Concepts

Based on your grant

No

Short form followed by a phone call or email

Not Listed

Quiz to see if you qualify

ERC Assistant

Not listed

No

45 seconds qualification quiz

Not Listed

Business owner knowledge

ERC Specialists

A portion based on  the refund received

No

Detailed qualification questionnaire

Lightning-fast results

Team of payroll specialists

Lendio

15% of your refund

Yes, funds in as little as 24 hours

Simple eligibility questionnaire

Takes on average 25 days to file

Payroll system integrations, mobile app

Innovation Refunds

25% of your refund

No

8 minute online application

Not Listed

Audit protection, dedicated ERC refund agent

ERC Today

A portion based on the refund received

No

12 question initial application

1-2 weeks to file

Secure portal

Omega Accounting Solutions logo

Omega Accounting Solutions: Best ERC Company for Bridge Loans

Pricing: Not listed

★★★★★

4.6

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Omega Accounting Solutions may not have control over the IRS, but the company processes everything quickly on its end. It starts with a free ten-minute consultation followed by a walkthrough for uploading your documents. The ERC services calculator gives you a good idea of how much you’ll receive when the time comes. If you can’t wait that long, Omega Accounting Solutions has bridge loans to keep you afloat.

Why we chose it: Omega Accounting Solutions has a fast application process where you’ll have a rough idea of how much you’re owed within minutes.

  • Offers bridge loans
  • Quick application process
  • Features an ERC calculator
  • Does not offer pricing information
  • Somewhat confusing setup
  • Smaller client base

Pricing: You won’t find any pricing details on Omega’s website. During your free consultation, be sure to inquire about the costs for your specific case.

Bridge Loans Available

Omega Funding Solutions is an offshoot of the parent company and offers bridge loans. The amount you’re eligible for depends on your expected ERC services refund amount at the time of filing. You won’t have to pay anything upfront and can see funds in as little as three days.

Qualifying Process

The qualifying process starts with a simple form on Omega Accounting Solutions’ website. If you qualify based on the initial questions, an agent will call you for a free ten-minute consultation.

Processing Time

There are only three simple steps Omega walks you through, assuming you meet the criteria. First, you’ll need to upload pertinent documents to the website. Afterward, company experts will calculate your refund and prepare the filing for you.

Other Features

Even before submitting your paperwork, Omega Accounting Solutions tempers your expectations with an ERC calculator for your team. There’s no need to pay a dime until you’re sure about what’s coming your way.

Bottomline Concepts logo

Bottomline Concepts: Best for Medium Businesses

Pricing: Based on your grant

★★★★★

4.7

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Bottomline Concepts has a proven track record with ERC grants. They’ve worked with several well-known organizations like Rolex, GNC, and even the Boston Red Sox to reclaim funds lost to the COVID pandemic. Its team has a solid understanding of the grant process, earning back over $1.2 billion to date. Best of all, Bottomline Concepts only gets paid based on the amount it brings in for your company. There’s no risk of losing funds if you don’t qualify.

Why we chose it: Bottomline Concepts goes to work for you, maximizing your grant amount with its proven process.

  • Worked with several well-known companies
  • Over $1.2 billion in credits recovered
  • No risk for your business
  • Undisclosed pricing
  • Can take a bit of time to get a call back
  • Only contactable through online form

Pricing: Bottomline Concepts doesn’t reveal any pricing information on its website. You can rest assured that you only have to pay if the company earns some grant money for you.

Bridge Loans Available

There are no bridge loans available through Bottomline Concepts. If you need some funds to cover a gap in operations, you’ll have to turn to a bank or lending company.

Qualifying Process

On its website, you’ll find a short form you can use to see if you qualify. The series of questions are specifically formulated to determine eligibility, even if it’s for a shorter window than the program allows. Once finished, an employee from Bottomline Solutions will call you to continue the process.

Processing Time

Bottomline Concepts has a division dedicated to employee retention credits that serves a large audience of clients. The easy-to-follow process helps expedite your refund, although Bottomline Concepts has no control over how quickly the IRS processes your money.

Other Features

The team at Bottomline Concepts has an intricate knowledge of the ERC filing process. An easy-to-follow questionnaire ensures you qualify for a refund and defines precisely what you’re entitled to.

ERC Assistant logo

ERC Assistant: Best ERC Company for Business Knowledge

Pricing: Not listed

★★★★★

4.5

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ERC Assistant consists of a crew of business owners who know the system well. After receiving over $1.5 million more than estimated, the team set out to get other ERC agency similar success. If you prequalify, ERC Assistant will set you up with the right firm so you can get what you deserve. Qualifying for your grant is a breeze, thanks to ERC Assistant’s 45-second questionnaire.

Why we chose it: ERC Assistant has the backing of business owners who have been through the process to get you the maximum refund for your company.

  • Formed by a team of fellow business owners
  • Accounting firm recommendations
  • Quick qualification process
  • No pricing information listed
  • Does not offer bridge loans
  • Results are not guaranteed

Pricing: Setting up your approval through ERC Assistant is free. The company does not share pricing information, but its cut depends on what you get back.

Bridge Loans Available

There are no bridge loans available through ERC services Assistant at this time. Its team hooks you up with the best firm to get your refund as fast as possible. If you need immediate assistance, you’ll need to look for a reputable lender.

Qualifying Process

You’ll know if you have a shot at a refund within 45 seconds, thanks to ERC Assistant’s quick qualifying process. If you meet the requirements, someone from the team will contact you for next steps.

Processing Time

Since ERC Assistant is not an accounting firm, it takes a little time to choose the right one for you. With the best firm in your pocket, filing tends to go more smoothly.

Other Features

ERC Assistant is run by other business owners, not employees in a stuffy office. They’ve been through the process and know exactly what it takes to get the biggest grant for your small to medium business.

ERC Specialists logo

ERC Specialists: Best ERC Company for Maximizing Your Refund

A portion of your refund

★★★★★

4.4

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ERC Specialists enters the picture with decades of payroll experience already under its belt. Because employee retention credits come through payroll returns and not income taxes, this gives the team a leg up. As a result, the average business earns 10% to 20% more than someone less familiar with the program. Processing speed with ERC Specialists is through the roof, allowing you to get paid that much faster.

Why we chose it: ERC Specialists lives up to its name, averaging higher refunds than other companies in the industry.

  • Typically able to recover 10-20% more than other companies
  • Decades of payroll experience
  • Lightning-fast results
  • Unclear pricing fees
  • Lengthy qualification process
  • No loan options

Pricing: There’s no set rate for working with ERC Specialists, the amount you pay depends on your refund. It’s possible to pay after you receive your money or earn a discount for paying upfront.

Bridge Loans Available

While ERC Specialists has a lot to offer, it does not have bridge loans to take advantage of. If your company is hurting financially from the pandemic, consult a bank or lending institution for funding options.

Qualifying Process

A detailed and thorough questionnaire leads you through the qualification process. After completing the form, someone from ERC Specialists will contact you whether or not you are entitled to a refund.

Processing Time

ERC Specialists boasts a faster turnaround time due to a streamlined process. It usually takes a few weeks to review your paperwork and send you documents to sign.

Other Features

Most ventures offering assistance with employee retention credit don’t have the payroll knowledge necessary to maximize your grant. ERC Specialists has decades of experience in the space, allowing its team to understand the process fully.

Lendio logo

Lendio: Best ERC Company for Business Financing

15% of your refund

★★★★★

4.4

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Lendio stands out for the many ways it can finance your company so you can stay in top form. Whether you need money for equipment, accounts receivable, or something else, Lendio has something for you. In most cases, you’ll have cash in your hands within 24 hours. Rates for ERC processing are among the best out there, and a handy mobile app makes it possible to apply no matter where you may be.

Why we chose it: Lendio has a long list of financing opportunities for acquisitions, equipment, and general use to keep you in business while you wait for a refund.

  • Several financing options available
  • Competitive fees for ERC processing
  • Handy mobile app
  • Lengthy application times
  • Does not focus solely on ERC
  • Limited information on lenders

Pricing: There’s no fee for checking eligibility or applying for a refund with Lendio. When the time comes to receive your funds, the company takes a competitive 15% for its part of the process.

Bridge Loans Available

Lendio does bridge loans and then some. You can get general loans within 24 hours of applying with reasonable payback rates. The company also offers specialized loans with generous terms to help get your business to the next level.

Qualifying Process

Everything starts out simple enough with Lendio’s quick questionnaire. If you pass the test, an agent will reach out to help you complete the process.

Processing Time

There’s some lag when walking through the application process with Lendio. It takes on average 25 days to file your claim with the IRS. From there, you’re at the mercy of the government to get what’s owed you.

Other Features

Filling out paperwork can be a drag, so Lendio integrates with over 150 payroll applications to speed up the process. You can submit claims from your PC or make use of the excellent mobile app to apply from anywhere with an internet connection.

Innovation Refunds logo

Innovation Refunds: Best ERC Company for Protecting Your Money

25% of your refund

★★★★★

4.3

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File confidently through Innovation Refunds, where a team of tax attorneys scrutinize your employee retention credit paperwork. They don’t get paid until you do, and the network will defend their work should the IRS come knocking. Innovation Refunds assigns a dedicated ERC refund specialist to your claim so you’re not dealing with a computer algorithm. Fees may be on the higher side, but you’re left with no surprises.

Why we chose it: A power-packed team of tax attorneys and free audit protection ensure you get the most out of your refund while keeping those funds safe.

  • Team of tax attorneys to defend work
  • Dedicated ERC refund specialist
  • Audit protection at no extra cost
  • Takes 25% of your refund
  • Qualification process is longer than some
  • No options for loans

Pricing: Innovation Refunds will take 25% off the top of your employee retention credit for the work it puts in to earn you money. Since the company’s profit is tied to yours, you can rest knowing you’ll get the most possible. There are no hidden costs, so you’re aware from start to finish what you’ll pay.

Bridge Loans Available

To focus all its energy on getting you money, Innovation Refunds doesn’t provide bridge loans to cover gaps in your income. If you can’t hold on until your check arrives, look to your bank for financing options.

Qualifying Process

The claim process begins by seeing if you’re eligible for a grant and then sets out to get you the most money possible. Because of this, the form can take upwards of eight minutes to complete.

Processing Time

You’re dealing with a real person at Innovation Refunds, which also means actual business hours. Agents respond and work through claims quickly and efficiently, but they will take the time to ensure you get what you deserve.

Other Features

When you sign on to use Innovation Refunds, you’re put in touch with an actual agent who sees your claim through to the end. There’s no jumping from person to person or dealing with algorithms that make assumptions about your company. Once you receive your cash, Innovation Refunds protects you from audits at its own expense.

ERC Today logo

ERC Today: Best ERC Company for Quick Processing

A portion based on the refund

★★★★★

4.2

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If you want to get a refund fast, ERC Today may be your best bet. Its system gets you through the filing process in as little as seven days so the IRS can process your claim. This is all ERC Today does, and they’ve become experts at working through the red tape without cutting corners. A secure client portal is in place to protect your sensitive information from the internet at large.

Why we chose it: ERC Today’s simple and flexible system can have you filing claims in as little as seven days.

  • Faster processing times
  • Dedicated to employee retention credits
  • Secure application process
  • No bridge loans for businesses
  • Nontransparent fees
  • Doesn’t link up with your payroll system

Pricing: ERC Today doesn’t give a clear picture of how much it takes from your refund as a cost of doing business. The filing process is free, and you’ll find out along the way how much the company plans to keep.

Bridge Loans Available

As a specialist in getting you a refund, ERC Today doesn’t dabble in bridge loans or other extra perks. Its goal is to get you money as quickly as possible by expediting your filing.

Qualifying Process

A 12-question initial application stands between you and knowing whether or not you qualify for a grant. Once given the okay, you’ll get access to a secure portal for uploading your documents.

Processing Time

From start to finish, it takes ERC Today approximately one to two weeks to get your claim over to the IRS. Alongside having one of the fastest processing times, it’s also one of the most accurate.

Other Features

ERC Today has program experts ready to help you with your claim without having to deal with slowdowns from your payroll company. Everything you need to submit passes through a secure portal so you know your information is safe.

Methodology for the Best ERC Companies

ERC companies are popping up left and right, but that doesn’t mean each one works the same way. We used the following criteria when picking out the best ERC agency you can use to file a claim and earn that refund:

  • Pricing: A check for employee retention credit does little good if the processing company takes every last penny. To the best of our ability, we identified these costs so you can plan ahead.
  • Bridge Loan Availability: If you’re hurting from lost revenue due to the COVID-19 pandemic, a bridge loan can hold you over until the government hands you an ERC check. We looked for ERC agency offering such loans so you can keep everything in-house.
  • Qualifying Process: Not everyone is eligible for employee retention credits, much to our dismay. A simple qualification process can tell you upfront whether you can submit a claim and the approximate amount you can collect. We studied the time it takes to reach this determination so you can get back to your business.
  • Processing Time: No company can change how long the IRS takes to process your claim. Quicker processing times can get your documentation in front of the government faster and in theory lead to money in your pocket in less time. We strove to find companies with quick turnarounds.
  • Other Features: All ERC companies have the capability to get you a refund, but some offer additional perks to really stand out. We made sure to cover these features and how you can use them.

Best ERC Companies Frequently Asked Questions (FAQs)

Want to learn more about ERC companies and the filing process? This FAQ may have the answers you’re looking for.

Bottom Line

It’s a breath of fresh air knowing you may be entitled to funds from the government for shutdowns during the COVID pandemic. Unfortunately, the process to submit and receive that money is long and convoluted.

Best ERC companies can step in to facilitate the process so you get the correct amount of money in the fastest time possible. Bottomline Concepts takes our top spot, but any one of the companies on our list could provide you with excellent ERC services.

Best Business Bank Accounts by State

Below you will find an interactive U.S map that can help you locate and compare different banks and financial institutions that offer business accounts in your area.

AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY DC
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10 Best Emergency Loans for Bad Credit in 2023

Emergency loan yellow and black poster

There comes a time in everyone’s life when we need some money quickly. Rising costs make it harder than ever to have an emergency fund, and conventional banks don’t have the means to pay out a loan quickly. Fortunately, online lenders exist to get you extra cash in a quick and timely manner.

Of the top online lenders, MoneyMutual stands out as one of the best bad credit loans for its vast lender marketplace, fast application process, and loan amounts of up to $5,000. Read on to discover more about MoneyMutual and our other favorite picks.

10 Best Emergency Loans for Bad Credit

MoneyMutual logo

MoneyMutual – Best Overall Emergency Loan for Bad Credit

4.8

★★★★★

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MoneyMutual allows emergency loans of up to $5000 from a huge pool of lenders while making the entire process quick and easy.

Fees: 5/5

MoneyMutual doesn’t charge anything for the use of its services. The platform isn’t a lender but rather a lending marketplace with a long list of available companies. If a business wishes to work with you, they will pay MoneyMutual to make the connection.

If you fall behind on your payments or default on the loan, there may be significant repercussions from the lender you’re working with. MoneyMutual oversees much of the process but never collects money from lendees.

Requirements: 3/5

To do business with MoneyMutual, you’ll need to receive a constant flow of at least $800 per month and be able to prove the source of income. Only U.S. residents can apply on MoneyMutual, and lendees must be 18 or older. It’s also necessary to have an active checking account to move money into and out of.

Borrowing Range: 4/5

Depending on what you need funds for, you can request as little as $100 or as high as $5000 at one time. If you remain in good standing with MoneyMutual and make regular payments to your lender, it is possible to find another lender should you need more cash in the future.

Speed of Loan Deposit: 4/5

After filling out the simple application to apply for a loan, you’re at the mercy of the online lending marketplace. If a lender offers you a loan right away and you accept its terms, it’s possible to receive funds in your bank account within 24 hours. Be sure to plan for weekends or holidays that may slow deposit speeds.

Security: 5/5

MoneyMutual uses TrustedSite to routinely scan its site for security risks. All data sent and received uses the highest quality AES256 bit encryption to protect your information from outside threats.

  • Has served over 2 million customers
  • Huge lender marketplace
  • Quick application process
  • Can get funded in 24 hours
  • Unavailable in certain states
  • Comparing online lenders is not intuitive
  • Must make at least $800 per month
CashUSA logo

CashUSA – Best Emergency Loans for Bad Credit With Education Tools

4.6

★★★★★

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CashUSA seeks to educate lendees through its comprehensive financial database while offering alternative money suggestions at the same time.

Fees: 5/5

CashUSA keeps all its services free for lendees while featuring a number of lenders and alternative means of attaining some extra income. Be it debt relief or sites that monitor spending, CashUSA understands that loans may not always be the answer. Each of these companies pay CashUSA to work with you, while you benefit from making lifestyle changes to free up some cash.

If you do go the loan route, CashUSA charges no fees to link you up with a lender. Keep in mind that missed payments will likely result in punitive action and the inability to use CashUSA’s services in the future.

Requirements: 3/5

Anyone applying for a loan with CashUSA must be at least 18 years of age and a resident of the United States. You’ll also need a current checking account in your name, along with a working email address and phone number. Finally, you’ll need to earn at least $1,000 per month after taxes from an external source to be eligible.

Borrowing Range: 4.5/5

When borrowing through any of CashUSA’s lenders, it’s possible to request between $500 and $10,000 in emergency funds. You’ll work with the lender to establish repayment terms and interest rates before signing any agreement.

Speed of Loan Deposit: 4/5

With such a fast application process, you may receive loan offers within a few hours. Once you accept the loan terms you like, your lender can deposit funds into your checking account within one business day.

Security: 2/5

CashUSA declares a secure process for handling all inquiries and personal information, but doesn’t provide specifics on encryption protocol or any measures it takes. The site does specify that it may share your information with its marketing partners, which you consent to by filling out their form. This leaves no guarantee that you won’t receive calls from third parties well after your financial woes are gone.

  • Education center with info on credit and financing
  • Available in every U.S. state
  • Loans of up to $10,000
  • Offers debt relief and credit monitoring
  • Fast and convenient loans
  • Need at least $1,000 per month after taxes
  • Lenders charge high APR rates
  • Passes your info to marketing partners
247 Credit Now logo

247CreditNow – Best Emergency Loans for Bad Credit and Speedy Response

4.5

★★★★★

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With 247CreditNow, you’ll have a response from a lending partner within 90 seconds of submitting your information if approved.

Fees: 4/5

When you need money fast, 247CreditNow comes through with a free process and expedited response times. Even if you get approved quickly by one of 247CreditNow’s lenders, you’re under no obligation to continue the transaction.

Some emergency loan sites communicate potential fees from lenders well, but 247CreditNow does not. There’s no indication of what interest rates or payback times may be on a loan offer. If you miss a payment, repercussions could come in the form of penalties or collections.

Requirements: 4/5

247CreditNow mentions it may add more requirements without warning, but currently applicants must be at least 18 and a U.S. citizen or permanent resident. You’ll need a checking or savings account to work out of and at least $800 coming in each and every month.

Borrowing Range: 5/5

The emergency loans site has a wide range of loan amounts, from $100 all the way to $35,000. Those looking to borrow big money may face more stringent requirements and a lower likelihood of approval.

Speed of Loan Deposit: 4.5/5

The approval process moves very quickly, and you could have an approved loan within a few minutes of signing up. Once you’ve signed on the dotted line, you’ll still have to wait up to one business day for funds to hit your account.

Security: 4/5

All personal data bouncing around within 247CreditNow’s servers make use of 128-bit SSL encryption to keep it from falling into the wrong hands. While nothing to scoff at, some emergency loan sites tap into higher levels of security still. 247CreditNow will share information with lenders but makes no mention of sending it off to other third-party companies.

  • Personal loans up to $35,000
  • Lender response within 90 seconds
  • Fast application process
  • Minimum income of $800 per month
  • Only uses 128-bit encryption
  • No information on rates or fees
BadCreditLoans logo

BadCreditLoans – Best Emergency Loans for Bad Credit With Low APR

4.4

★★★★★

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Depending on how you set up your loan, it’s possible to bring interest rates down as low as 5.99% for repayment. In addition to emergency loans for bad credit, BadCreditLoans also offers auto loans, home loans, small business loans, mortgage, and debt consolidation loans.

Fees: 5/5

BadCreditLoans boasts a completely free service without cost or obligation. The site makes money by sharing your information with third-party companies that dabble in debt relief and credit repair. You may end up paying with your time, dodging calls from marketing partners well into eternity.

Requirements: 4.5/5

Signing up for the loan process with BadCreditLoans requires the completion of a somewhat lengthy online form. Those applying will need proof of U.S. citizenship and be at least 18 years of age. You must receive regular income from some source, but there is no minimum requirement on how much you have to earn.

You’ll need a checking account to transfer funds into and make monthly payments back to the lender. BadCreditLoans mandates a valid email address alongside work and home telephone numbers to facilitate communication.

Borrowing Range: 4.5/5

All lenders through BadCreditLoans offer loans ranging from $500 and $10,000, depending on your residence and status. Those able to pay funds back quickly can see considerable reductions in APR rates compared to other sites.

Speed of Loan Deposit: 3.5/5

BadCreditLoans doesn’t convey a clear line of sight from the application process to loan deposit. The site and its team work 24/7, but this is no guarantee lenders will move quickly to work with your application. You may also receive non-loan applications to process as alternatives to a loan.

Security: 3/5

Much like CashUSA, BadCreditLoans speaks of a security policy but doesn’t state precisely what that means. Its website does allude to encrypting incoming and outgoing data to keep your personal information safe.

As BadCreditLoans uses several marketing partners to bring in additional income, your information will likely end up in their hands before long. There’s always a cause for concern when so many companies have access to your private data.

  • APR as low as 5.99%
  • Loans up to 10,000
  • Extended lender network
  • 72-month maximum repayment term
  • Longer application process when compared to others
  • May share your information with marketing partners
  • APRs can run very high
Personal-Loans logo

Personal Loans – Best Borrowing Range for Emergency Loans for Bad Credit

4.3

★★★★★

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Stretching from $1,000 to $35,000, Personal Loans has emergency loan amounts for every occasion.

Fees: 4/5

Personal Loans does not have hidden fees or upfront costs for using its service. You’ll have ample time upon receiving an offer to review the terms before making a decision, so you don’t get locked into any unnecessary fees. Depending on the repayment rate, you may encounter high interest amounts.

Requirements: 3/5

You’ll need to prove your ability to repay a loan in order to have success with a lender. Applicants must have full-time employment, be self-employed, or receive benefits from Social Security or a disability. Depending on the lender, you may need to show a pay stub.

Personal Loans specifically states that lendees have a Social Security number, be a legal U.S. citizen or permanent resident, and be at least 18 years of age. You’ll also need a valid checking account the lender will deposit funds into.

Borrowing Range: 5/5

Personal Loans starts on the high end, with a minimum $1,000 loan for applicants. Those just needing a few hundred dollars for a small project or bill may want to look elsewhere. However, for those with lofty goals, you can increase the loan amount as high as $35,000.

Speed of Loan Deposit: 4/5

Once you’ve completed the application process, you may start hearing from lenders in a matter of hours. After taking the necessary amount of time to read and understand the terms, you can approve a loan or wait for another to come your way. As soon as you accept the loan that works best for you, it’s possible to see funds deposited within a business day.

Security: 4/5

Personal Loans protects all your information with advanced data encryption technology. You can fill out your application knowing that hackers can’t reach what’s important to you. It is worth noting that Personal Loans shares these same records with non-loan companies as a trade-off for keeping its site free.

  • Loans reach up to $35,000
  • Competitive interest rates
  • Up to 6 year repayment terms
  • Access to loans beyond Personal Loans’ network
  • Potential hard credit check
  • Shares info with non-loan partners
  • High minimum loan amount
24/7 Dollar Loan

247 Dollar Loan – Best Emergency Loans for Students

4.1

★★★★★

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247 Dollar Loan works great for students, with quick approval times and low income requirements.

Fees: 3.5/5

Despite the name, 247 Dollar Loan is not a lender but a marketplace for lenders to work through. The site makes its services free to lendees, as lenders pay for access to your application.

With such a speedy short-term loan process, you may receive an offer within minutes of signing up. It’s important to carefully review the terms, as interest rates with 247 Dollar Loan are known to be very high.

Requirements: 4/5

To be eligible for a loan, you’ll need a savings or checking account with the ability to accept direct deposits. Individuals must be 18 years or older and U.S. citizens or permanent residents. Lastly, you must have a minimum monthly income of $800.

Borrowing Range: 3/5

247 Dollar Loan suffers significantly in this category, with a loan ceiling at the $1,000 mark. Working with such small amounts helps the company streamline the application process. This is why 247 Dollar Loan works so well for short-term loans.

Speed of Loan Deposit: 4/5

Funds typically appear within a single business day of your loan approval. At times, lenders may request additional information that may prolong the process. 

Security: 4/5

There’s not a lot of information you need to supply 247 Dollar Loan during the approval process, but what you do can have serious implications if it falls into the wrong hands. 247 Dollar Loan uses 128-bit encryption similar to what web browsers use when holding your data. While not as strong as some sites, it offers a healthy layer of protection.

  • Ideal for short-term loans
  • Application process takes 2-3 minutes
  • Loan decision comes within minutes of form submittal
  • Personal loans top out at $1,000
  • Only 128-bit SSL encryption
  • Very high APR rates
Funds Joy logo

Funds Joy – Best Easy to Use Emergency Loans for Bad Credit

4.0

★★★★★

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Funds Joy’s intuitive website makes it a breeze to apply and receive approval for loans up to $5,000 at a time.

Fees: 4.5/5

Funds Joy facilitates the loan process from beginning to end and doesn’t charge a dime for doing so. The company connects those in need of a loan with more than 60 available lenders in hopes of achieving a match. Lenders pay Funds Joy for the ability to connect with you and your needs.

The site offers no clear detail on fees or rates that a lender may charge upon a loan agreement. Fortunately, you’ll be able to review all the digital paperwork before deciding to move forward with a loan.

Requirements: 4.5/5

Funds Joy doesn’t have rigid requirements to qualify for a loan. Those looking for extra money simply have to reside in the United States, be 18 years old or older, and have a stable source of income. 

Borrowing Range: 4/5

Those needing emergency funds can choose between $200 and $5,000 during the sign-up process. The amount you choose and payback terms will have the highest effect on your interest rate.

Speed of Loan Deposit: 4/5

When you agree to a loan amount with a lender, Funds Joy states you’ll receive funds in no time at all. There’s no clear information on exactly how long the process takes.

Security: 3/5

Funds Joy doesn’t clarify how it safeguards your personal data. It does state in the privacy policy that the site can share personal and non-personal information with affiliates and partners for several purposes.

Because the emergency loan provider wants to keep a good reputation, they do have safety measures in place to keep your personal details away from unscrupulous individuals.

  • Fast application process
  • Easy to use website
  • Over 60 lenders on file
  • Some lenders perform hard credit checks
  • No phone support
  • Need a stable source of income
247FastFunds logo

247FastFunds – Best Emergency Loans for Those Needing Multiple Loans

3.9

★★★★★

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For multiple projects, 247FastFunds makes it possible to request additional loans as long as you’re faithful with payments.

Fees: 4/5

247FastFunds recognizes the need for fast cash in a flash. The company uses a lending network to get individuals in touch with participating lenders while keeping the process quick, easy, and free.

When you receive a loan from a lender, you’ll have the chance to look over the specifics before making a decision. It will be clear on the document what your monthly payments will be and the complete fee schedule. Missed installments may result in excess fees and the possibility of dealing with collections.

Requirements: 3/5

Requirements for setting up your loan are a bit more stringent than some other emergency fund sites. You’ll have to show proof of employment and a clear record of you working more than 90 days at your current job. In the application, you’ll need to list a working phone number for work and home and a valid email address.

Furthermore, it’s essential to have around $1,000 per month after taxes, be a U.S. citizen or permanent resident, and be over the age of 18.

Borrowing Range: 4/5

247FastFunds lets you take out a loan as low as $100 for simple needs or up to $5,000 for large-scale emergencies. Your credit score may play a role in your ability to obtain a higher amount of loan.

Speed of Loan Deposit: 4/5

After working through the inquiry process, you may receive a loan offer from one of 247FastFunds’s affiliates. If you approve the amount and repayment terms, it’s possible to see funds in your account within 24 hours.

Security: 4/5

247FastFunds prides itself on a secure connection to its database. The site protects your data with 2048-bit encryption featuring SSL security.

  • Can request new loans at any time
  • 2048 bit security with SSL
  • ACH transfer for monthly payments
  • Unclear APR numbers from lenders
  • Must be employed at present job for at least 90 days
  • Requires an income around $1,000 per month
iCashLoans logo

iCashLoans – Best Emergency Loans With High Approval Rates

3.8

★★★★★

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iCashLoans may not offer the highest loan amounts, but the lending marketplace sees more approvals than most other sites.

Fees: 3.5/5

There are no fees concerning iCashLoans and its loan application process. You won’t receive a charge for filling out forms or receiving offers from lenders. Those lenders pay the emergency loans site to access your information.

There’s a high likelihood that a lender will reach out to you, even with the worst credit. From there, it’s up to you whether you accept the terms or go back to the drawing board. iCashLoans doesn’t share possible APR rates or what repayments may look like.

Requirements: 4.5/5

Because the lenders with iCashLoans approve a majority of applications, they want to ensure you have the means to pay back everything you borrow. You’ll need to be 18 years of age and a U.S. citizen or permanent resident with a checking account in your name.

Additionally, iCashLoans requires a working telephone number for home and work, and the lending marketplace will verify you’ve been working there for at least 90 days. Whether from that employer or other means, you must have at least $1,000 in income every month.

Borrowing Range: 3/5

There’s not a ton of wiggle room with loan amounts. You can dial in a small loan at $100, but the max you can borrow is only $1,000. Repayment terms are usually short because of these low amounts.

Speed of Loan Deposit: 3.5/5

You’ll have to wait for final approval from your lender before receiving funds into your checking account. With a little luck, you’ll see the money in your account within 24 to 48 hours.

Security: 3.5/5

iCashLoans uses the Comodo certification authority to protect your personal information in their system. Its SiteLock technology protects against ransomware, combats threats, and scans constantly for malware.

  • High approval rates
  • Good customer service
  • Quick loan application process
  • Only for loans up to $1,000
  • Must be employed at least 90 days
  • Requires $1,000 per month income
BetterLoansMutual logo

BetterLoansMutual – Best Emergency Loans for Bad Credit With No Questions Asked

3.6

★★★★★

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BetterLoansMutual allows you to go about the loan process and respects your privacy along the way, not even asking where your funds will go.

Fees: 3.5/5

There’s no need to pay any money upfront when working with BetterLoansMutual. The company doesn’t charge lendees so much as a penny, instead forcing lenders to pay for the chance at working with you.

As you receive loan requests, it’s your responsibility to read through the agreement and ensure you’re comfortable with the fine print. The site doesn’t disclose APR information, so ensure you don’t bite off more than you can chew.

Requirements: 3/5

Lendees have to be U.S. citizens or at least permanent residents 18 years of age or older. You’ll need a checking account, a working home and work phone number, and a valid email address. The site will verify your employment status and confirm you have at least $1,000 coming into your account each month.

Borrowing Range: 4/5

When looking for a loan, you can shoot for any amount between $100 and $5,000. Lenders will assess the risk of doing business with you and may counter with an alternate number.

Speed of Loan Deposit: 4/5

After working through the process, you’ll need to sign off on whatever loan works best for your situation. The lender will then finalize things on their end, and you should see a deposit in your account around 24 hours later.

Security: 2.5/5

In 2018, the Better Business Bureau shared a concern about BetterLoansMutual’s lack of security. The emergency loans site now uses a secure SSL connection to shield your information from outside sources.

  • Site doesn’t ask questions about loan purpose
  • Simplified loan process
  • Safe and secure submissions
  • Must have a job for at least 90 days
  • Need an income around $1,000
  • Does not disclose lender fees

Our Methodology for Selecting the Best Emergency Loan

As we crunched the numbers on the best emergency loans for bad credit, a number of features stood out to us. We used the following factors when making our picks.

Fees

It should come as no surprise to see fees on the top of this list. Anyone requesting an emergency loan is clearly in need of money, and no one wants to be left off even worse than when they started. Although costs aren’t always transparent, the best lending marketplaces should pass along as many fees to the lender as possible. Ideally, interest rates from lenders should be reasonable and not impossible to pay back.

Requirements

When it comes to emergency loans, having a long list of requirements can preclude individuals from getting the money they need. We aimed for sites that minimized requests for your personal information and proof you have large amounts of income. After all, there wouldn’t be a need to borrow funds if we had so much come in.

Borrowing Range

It’s always helpful to use one company for present and future loan inquiries. Those with an extensive borrowing range can help with minor damages or significant expenses, depending on the need. Being able to work with the same company gives you peace of mind, and it can’t hurt your chances of being approved.

Speed of Loan Deposit

When you need money, you need it now. No one has time to wait for a lengthy approval process or slow transfer speeds. The best emergency loan sites can find you a loan within minutes and have the funds in your bank account within one business day.

Security

No matter how you shake it, you will need to provide personal information when applying for a loan. This will undoubtedly include your bank account number, which would be disastrous if it fell into the wrong hands. There are various levels of security among websites, and the best emergency loan companies will have the means to keep your data safe.

How to Obtain an Emergency Loan

Understanding the complex nature of emergency loans is not easy. The answers to the questions below should help bring things into focus.

The Best Emergency Loans – Final Thoughts

Emergency loans can be a lifesaver when disaster strikes. However, the procedure can take days or weeks through traditional financial institutions. The right online lending marketplace can remove all the guesswork from the application process and have money in your account before you know it. When you need cash quickly, we feel any one of the sites on this list can get you what you need. All you have to do is pick one and start the process.

If you’re looking for emergency business financing, don’t forget to check out our detailed guide on the best bad credit business loans. Make sure you have a business bank account before you apply for one. 

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Best Payday Loans Online for Instant Approval

Payday salary and loans illustration concept

If you have an emergency financial situation, waiting for a bank loan can take a few weeks or even months. Therefore, payday loans online are your best option when you’re in a tight spot. 

However, you’re not alone. We’ve all been in situations where we need quick cash to pay off unexpected bills or when we’re waiting for a payday. To urgently handle these financial obligations, you must pick the best payday loans online.

We’ve compiled a list of the best online payday loans with instant approval. These lenders listed in the guide below are reliable, generous, and fantastic for short-term cash relief. While the payday loan service, Money Mutual, tops our list, you should consider each option based on your own personal circumstances. 

Our top 10 picks were determined by criteria such as APR rates, loan amounts, the application process, and lender reputation. For this reason, the best payday loans online offer quick loans while providing agreeable terms. 

Top 10 Best Payday Loans Online for Instant Approval

MoneyMutual logo

MoneyMutual – Best Overall Online Payday Loan

4.7

★★★★★

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As one of the best bad credit loan providers, MoneyMutual has funded more than two million borrowers since its inception in 2010. Based on the wide range of positive feedback on various customer review sites and our experience, MoneyMutual is the best online payday loan service overall.

This lender is also a member of the Online Lender Alliance. This speaks to the company’s trustworthiness and outstanding reputation. 

MoneyMutual acts as a lending marketplace and matches you with a list of the best potential lenders. In fact, you can find over 80 lenders with MoneyMutual, which increases your odds of finding a loan with acceptable terms.

Furthermore, MoneyMutual offers bad credit score loan resources you can use if you have a poor credit history and want to rebuild your credit score.

This company is also certified by TrustedSite. Therefore, you can request a loan with the assurance that your personal information is protected. 

Application Process: 5/5

MoneyMutual’s motto is “At The Speed of Life.” This indicates that the company understands how complex emergencies are and that you may need cash immediately. For this reason, MoneyMutual’s application process is quick and easy. 

Taking just five minutes to complete, you will receive an instant lender review. Once you agree to a loan, the money is sent within one business day.

Loan Amounts: 4.5/5

Depending on your credit score and monthly income, you can borrow $100 to $5,000 from MoneyMutual.

Interest Rates and Fees: 4.5/5

The interest rates on MoneyMutual loans range from 261% to 1,304%.

  • Millions of satisfied borrowers
  • Extensive lender marketplace
  • Rapid turnaround time
  • Values security and privacy
  • Excellent bad credit score loan tutorials
  • Unavailable in NY, CT, and IL
CashUSA logo

CashUSA – Best for Guaranteed Approval

4.9

★★★★★

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CashUSA is one of the most popular providers of personal loans in the online marketplace. In addition to its massive customer base, it also boasts excellent customer ratings from millions of satisfied borrowers. 

Furthermore, CashUSA is more than just a lending network. This company also provides thorough financial resources on finances, credit, debt, and banking. By taking advantage of these educational tools, you can better prepare yourself for the future.

Best of all, you can take payday loans for any reason. So whether you want to consolidate your debt, pay for a vacation, or pay off unexpected medical expenses, the choice is up to you.

Application Process: 5/5

The application process is straightforward and takes under ten minutes to complete. CashUSA will ask for your income levels since most lenders have an $800 to $1,000 monthly income requirement.

Loan Amounts: 4.9/5

You can borrow $500 to $10,000 with a CashUSA loan. 

Interest Rates and Fees: 4.8/5

CashUSA loans have interest rates ranging from 5.9% to 35.99%. Also, CashUSA doesn’t charge origination fees for using their lending network. However, it’s essential to read the terms of your specific loan to see if the lender charges fees for late payments or the application itself.

  • Transparent online payday loans
  • Available in every US state
  • Lots of positive feedback from borrowers
  • Excellent repayment terms
  • Minimum loan amount of $500
  • Income requirements
BadCreditLoans logo

BadCreditLoans – Best for No Credit Check

4.8

★★★★★

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BadCreditLoans is known for offering various emergency and personal loans that cater to your particular situation.

These individualized payday loans include:

  • Personal loans
  • Small business loans
  • Credit card loans
  • Auto loans
  • Home loans
  • Mortgage loans
  • Student loans

In addition, BadCreditLoans sends your loan request to a third-party non-lender network if you don’t finalize a deal with an offer from BadCreditLoans’ primary lending network.

BadCreditLoans is also a proponent of financial education. This is why this company provides educational resources you can read to learn how to make better financial decisions.

Furthermore, borrowers with poor credit scores can comfortably apply, knowing that BadCreditLoans has no credit obligations. 

Application Process: 5/5

Similar to the previous options, BadCreditLoans has a simple application process that takes a few minutes to complete. You will need to provide your ID and bank account deposit details.

Loan Amounts: 4.5/5

You can borrow $500 to $10,000 from a BadCreditLoans’ lender. However, you may not qualify for higher loan amounts if you have a poor credit score. 

Interest Rates and Fees: 4.8/5

The APR from BadCreditLoans varies from 5.99% to 35.99%. These are competitive interest rates seen across the industry.

  • Comprehensive lending network
  • Financial education resources
  • Scam prevention guides
  • Individualized payday loans online
  • Higher APR with bad credit
Funds Joy logo

Funds Joy – Best for Loan Options

4.5

★★★★★

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Funds Joy is a lending network that prides itself on quick and viable loans from trustworthy lenders. This lending platform has a network of over 60 personal loan lenders. This means there is a high chance you will find a loan offer with reasonable terms and rates. 

You can take advantage of Funds Joy’s wide range of loan options, which include payday loans, home loans, cash advance loans, and bad credit score loans.

As such, you can apply for a Funds Joy loan even if you have a less-than-desired credit score. Since Funds Joy is the best loan option, it’s important to note it offers short-term and long-term payday loans.

Application Process: 4.6/5

The Funds Joy application takes around ten minutes to complete and submit. Furthermore, you will receive your lender’s decision a few minutes after. Therefore, we recommend waiting for all the loan offers to arrive. This way, you can choose the loan with the best terms and conditions.

Loan Amounts: 4.5/5

Funds Joy offers loans in the range of $200 to $5,000. This way, you can receive a small short-term loan in less than no time to pay off unexpected bills or expenses.

Interest Rates and Fees: 4.5/5

The interest rates seen on Funds Joy loans depend on your personal credit score and income profile. However, the APR typically ranges from 4.99% to 450% for personal loans. The APR for cash advance loans ranges from 200% to 1386%. In addition, the interest rates for installment loans vary from 6.63% to 225%.

  • Over 60 lenders
  • Variety of loan options
  • No hidden charges
  • Short-term and long-term payday loans online
  • No phone customer service
  • Higher interest rates with bad credit
Personal-Loans logo

Personal Loans – Best for Competitive Payday Loans Online

4.9

★★★★★

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Personal Loans is an excellent unsecured loan provider focusing on speed, efficiency, and transparency.

This lender immediately provides your loan amount, loan term estimates, and specific loan type requirements to quickly grasp what you’re getting into.

Although this lender offers competitive interest rates, user reviews indicate that Personal Loans offers the best APRs for payday loans online.

Furthermore, Personal Loans is a popular provider of bad credit loans. Therefore, borrowers with poor credit scores can take advantage of these no-credit-check loans.

Application Process: 4.8/5

Personal Loans has a straightforward application process that takes a few minutes to complete.

Loan Amounts: 4.9/5

You can borrow anywhere from $500 to $35,000 from Personal Loans, making it one of the broadest loan amounts ranges on today’s list. 

Interest Rates and Fees: 5/5

First of all, Personal Loans does not charge application or service fees. Furthermore, you can find loans with interest rates ranging from 5.99% to 35.99%.

  • Lower APR
  • Excellent loan amounts
  • Helpful payday loan online resources
  • No accreditation from BBB
  • Low loan amounts for poor credit history
247FastFunds logo

247FastFunds – Best for Security

4.4

★★★★★

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While it’s not a direct lender, 247FastFunds is a lending platform that collaborates with a wide network of lenders. For this reason, you have an excellent chance of finding reasonable loan terms. Established in 2012, this lending network has provided trustworthy financial services for over ten years.

It’s important to note that 247FastFunds does not accommodate individuals in West Virginia, New York, Arkansas, or Vermont. However, if you are not located in one of these states, you can easily find an adequate loan, even if you have a bad credit score. 

True to its name, you can apply for a 247FastFunds loan anytime. If you agree to a lender’s terms you will receive the money in your bank account the next day. 

Best of all, this lending network provides unsecured personal loans for any reason, whether it’s home repairs, car repairs, vacations, or medical bills. The choice is all yours. 

This lending network is also the best for security since it uses advanced encryption protocols to protect your personal information. Therefore, you minimize your risks of identity theft.

Application Process: 4.8/5

247FastFunds has a simple application process that takes around five minutes to finish.

Loan Amounts: 4.4/5

You can borrow $1,000 to $5,000 from lenders in the 247FastFunds network.

Interest Rates and Fees: 4/5

The APR and fees are not disclosed on the website. You’ll need to view your loan offers for specific interest rates and terms. 

  • 24/7 customer support team
  • Excellent security protocols
  • Loans start at $100
  • Fast loan decisions
  • Lack of information regarding interest rates
247 Dollar Loan logo

247 Dollar Loan – Best for Small Emergency Loans

4.3

★★★★★

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247 Dollar Loan is the best overall payday lender for small emergency loans. You should apply for a loan with this lender if you have a financial emergency you must quickly pay it off.

Application Process: 5/5

The application takes under five minutes to complete. Once you submit your application, 247 Dollar Loan will provide a list of potential lenders in one to two minutes. However, it’s crucial to note that borrowers must be at least 18 years of age, meet the monthly income requirements of $800, and be a US citizen. You also must provide your direct deposit information.

Loan Amounts: 3.8/5

You can borrow $100 to $1,000 with a 247 Dollar Loan loan. 

Interest Rates and Fees: 4/5

You can expect interest rates ranging from 235% to 1,304%.

  • Bad or no credit check loans
  • Quick application process
  • Fast turnaround time
  • Above-average APR
247 Credit Now logo

247CreditNow – Best for Big Payday Loans

4.8

★★★★★

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Since it’s difficult and time-consuming to get a big installment loan from your local credit union or bank, we recommend 247CreditNow for large payday loans. This is the most fantastic lender for large installment loans if you meet the credit score requirements. 

Once you prove you meet the $800 minimum monthly income requirements, you can get access to personal loans, cash advance loans, or payday loans.

Application Process: 5/5

247CreditNow.com has a quick application process and takes less than two minutes for you to receive your list of potential lenders and loan offers. 

Loan Amounts: 4.9/5

You can borrow $100 to $35,000 with a 247CreditNow loan.

Interest Rates and Fees: 4.5/5

After applying, you can view your specific interest rates and fees for each loan in your 247CreditNow.com lender decision list. 

  • Lower income requirements
  • Quick application process
  • Available for all types of credit scores
  • Shorter loan terms
  • Large loan amounts unavailable for bad credit scores
iCashLoans logo

iCashLoans – Best for Consumer Privacy

4.3

★★★★★

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iCashLoans is the best payday lender for consumer privacy because it doesn’t ask what you are using the loan for. Therefore, you can use your loan as you wish. 

In addition to iCashLoans priority on privacy, you can access short-term payday loans of $100 to $1,000.

Application Process: 5/5

The iCashLoans.com application is quick and easy. Best of all, this lender does not pry into your personal business since it doesn’t ask what you need the loan for.

Loan Amounts: 4/5

You can access loans ranging from $100 to $1,000.

Interest Rates and Fees: 4/5

iCashLoans doesn’t specifically indicate the interest rates the lenders charge. However, since iCashLoans provides short-term emergency loans, you can expect high interest rates, depending on your credit score.

  • No loan reasoning questions
  • Loans start at $100
  • Excellent loan approval success rates
  • Mainly short-term loans
  • Relatively high interest rates
BetterLoansMutual logo

BetterLoansMutual – Best for Rapid Payday Loans Online

4.5

★★★★★

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BetterLoansMutual focuses on providing rapid payday loans for borrowers with all types of credit scores. Similar to iCashLoans, BetterLoansMutual doesn’t ask what you need the money for. However, you must make at least $1,000 in monthly income after taxes to qualify for a loan. 

Application Process: 4.8/5

The application process is effortless and takes about five minutes to complete.

Loan Amounts: 4.5/5

The loan amounts range from $100 to $5,000, similar to MoneyMutual.

Interest Rates and Fees: 4.2/5

The exact interest rates depend on your loan offers. Therefore, you must apply and view your lending options to see the full range of APRs and fees.

  • Loan amounts up to $5,000
  • One to two-day funding
  • Fast application process
  • No phone customer service
  • No accreditation from BBB

How We Picked the Best Payday Loans Online: Methodology

By now, you should have narrowed down your pick on which payday loan is best for you. However, to help make things easier, we want to discuss the methodology we used to compile this highly-curated list of the best payday loans online for instant approval.

Here’s a closer look at each consideration we rated:

Company Reputation:

One of the most critical factors of a payday lender is its reputation and experience in providing trustworthy loans. Longevity typically indicates sustainable lending practices, which is a quick and easy way to narrow down the list.

Furthermore, we chose lending marketplaces with good reviews and accreditation by verified agencies. For example, the BBB (Better Business Bureau) recognizes many of the abovementioned lenders. Also, many lenders are part of the Online Lender Alliance.

We also assessed customer reviews and looked for lenders with positive feedback and satisfied borrowers. 

Eligibility Criteria:

To accommodate everybody who needs access to payday loans, we made sure to choose lenders with fair borrower requirements.

These minimum requirements include:

  • US citizenship or permanent residency in the US
  • At least 18 years of age
  • Stable income of $800 to $1,000 per month
  • Own a checking account in your name

Bad Credit Accommodation:

In addition to low eligibility criteria, we looked for lenders that offer loans for borrowers with poor credit scores. Therefore, our list of the best online day loans offers financial services for all types of credit scores. 

Instead of looking at just your credit score, these lenders consider your income, debt to income ratio, and other provided information. We also made sure we included some providers that offer bad credit business loans too.

Ease of Use:

Since you may be in an urgent situation and need cash immediately, we looked for payday loans with a straightforward application process and a quick cash deposit. The loans outlined above take only a few minutes to submit an application. 

Best of all, the lender provides a list of potential loans just as fast. This way, you can find the best loan terms in less than 20 minutes of your time. Furthermore, the money is directly deposited into your bank account. 

APR and Fees:

We chose payday lenders that offer standard interest rates of 3.59% to 35.99%. Therefore, you can find a reasonable loan in less than no time.

Loan Terms:

Another important consideration is the loan terms. We found loans that offer reasonable repayment terms. This way, you have enough time and funds to pay off your loan by the due dates.

Turnaround Time:

You can receive your money in less than 24 hours with an emergency payday loan. However, it’s important to have your bank account information available when you complete the loan request. 

What Are the Best Online Payday Loans FAQs

Before you go, it’s essential to clear up any confusion you may have surrounding the best online payday loans. So, here are a few common questions we receive about payday loans.

Let’s jump in.

Final Thoughts on the Best Payday Loans Online Same Day 

Payday loans have helped millions of people just like you. So when unexpected expenses arise, it’s comforting to know there are several debt relief options in the form of online payday loans. 

Best of all, the lenders listed above offer rapid approvals, and you can receive your money in less than 24 hours. Lenders like MoneyMutual have an extensive lender network. These payday loan services will match you with the best potential lenders based on your financial situation and needs.

However, finding loan terms you can realistically pay off is important. This way, you won’t add additional stress and financial burden on top of your unexpected initial expenses.

Choose the best payday loans online that accommodate your personal financial situation, based on the guidelines above. 

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10 Best Bad Credit Loans with Instant Approval

The text "Bad credit loans" written on a sticker lying on a work desk

Getting approved for a loan when you have bad credit can be difficult. Similar to other financial services, borrowers must submit an application with their income information and agree to a credit check before getting a loan. Since lenders prefer to work with borrowers who have a reputable track record, you may be caught in a challenging situation.

Fortunately, we created a list of the best bad credit loans with instant approval. These lenders can provide you with immediate cash relief even with a poor credit score. However, bad credit lenders typically charge higher interest rates and fees. So, make sure the lender you choose offers adequate rates and terms based on your own financial situation.

So, let’s dive into the list of the top 10 loans for bad credit.  

Top 10 Best Bad Credit Loans

MoneyMutual logo

MoneyMutual – Best Overall

4.58

★★★★★

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MoneyMutual serves as an online marketplace for personal loans. This lending service has an excellent track record of assisting people with low credit scores and helping them get the money they need. Trusted by over 2,000,000 customers, you can take out a cash advance or personal loan with MoneyMutual. 

Application Process: 4.5/5

MoneyMutual makes it quick and easy to apply for a loan. The minimal application form takes a few minutes to complete, and you must provide your Social Security number, driver’s license ID, and bank account routing number. 

Loan Amount Limits: 4.5/5

MoneyMutual’s loan amount limits range from $100 to $5,000. Since MoneyMutual is a loan marketplace, it offers a wide variety of lending options. Therefore, each lender has its own minimum loan amount and terms. 

Rates and Fees: 4/5

As a lending marketplace, MoneyMutual does not charge extra fees to apply for or receive a loan. Nonetheless, the lenders in the network may charge late payments, origination, or other fees. For this reason, it’s important to read the loan’s terms before applying. 

Turnaround Time: 5/5

MoneyMutual is the best bad credit loan because it offers instant approval. This is because MoneyMutual can match you with a potential lender in less than two minutes. Furthermore, the loan can be sent to your bank account within 24 hours, depending on which offer you agree to.

Repayment Terms: 4.5/5

Your specific repayment terms depend on which lender MoneyMutual matches you with. However, you can expect repayment terms anywhere from 3 to 60 months. This gives you a lot of time to repay your loan without too much financial burden. 

Customer Support: 5/5

You can contact MoneyMutual via email at customerservice@moneymutual.com. If you need to speak with an agent immediately, give them a call at (844) 276-2063.

  • More than 10 years of experience
  • Loans up to $5,000
  • Quick application process
  • Unavailable in IL, CT, and NY
CashUSA logo

CashUSA – Best for Fast Cash

4.67

★★★★★

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If you’re in a pinch and need money quickly, you may be desperate enough to take on a funding source with high interest rates and fees. However, you don’t need to turn to these riskier funding sources and rack up more debt.

This is because CashUSA offers the fastest online application for personal loans for bad credit. With CashUSA’s wide network of lenders, you can be approved for a loan immediately. As one of the most reputable online lending platforms, CashUSA is an excellent choice for individuals with poor credit scores.

Application Process: 5/5

CashUSA offers a speedy application process that’s simple to fill out. Once you fill out the online form and explain how much money you want to borrow, CashUSA performs a soft credit check before matching you with a lender. However, since it’s a soft credit check, individuals with low credit scores don’t need to worry about getting denied. 

Loan Amount Limits: 4.5/5

CashUSA has a minimum loan amount of $500. Furthermore, the maximum amount you can borrow from a CashUSA lender is $10,000. The amount you can borrow depends on your credit report. Also, the lowest credit score you can have to secure a loan is 579.

Rates and Fees: 4.5/5

Since you likely have a bad credit score, your interest rate on your loan may go up to 35.99%. On the other hand, the lowest interest rate CashUSA offers is 5.99%. It depends on your credit score and how much money you want to borrow.

Turnaround Time: 5/5

As the best bad credit loan for fast cash, CashUSA has an outstanding turnaround time. The application process takes less than five minutes, and the approval will come in soon after that. Furthermore, if approved for the loan, you can expect CashUSA to send the amount to your bank account within one business day. 

Repayment Terms: 4.5/5

CashUSA’s network of lenders has repayment terms from 90 days to 72 months. 

Customer Support: 4.5/5

If you need help, you can email CashUSA at support@cashusa.com. Furthermore, you can call them directly at (866) 973-6587.

  • Can borrow up to $10,000
  • Origination fee-free
  • Receive money the next day
  • Not a direct lender
  • Relatively high APR
BadCreditLoans logo

BadCreditLoans – Best for Exceptionally Low Credit Scores

4.5

★★★★★

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BadCreditLoans features one of the most extensive lending networks in the United States. Founded in 1998, BadCreditLoans provides loans up to $10,000 without any application fees. 

In addition to personal loans, BadCreditLoans also offers installment loans such as auto loans, emergency loans, home loans, small business loans, mortgage loans, and debt consolidation loans.

Application Process: 4.5/5

Similar to the previous two options, BadCreditLoans features a quick application form that takes around five minutes to complete. You must provide your driver’s license and bank account deposit information. 

Loan Amount Limits: 4.5/5

The lenders at BadCreditLoans offer loan amounts of $500 to $10,000. Best of all, you can apply for a loan with BadCreditLoans even if your credit score is 500 or lower. Therefore, BadCreditLoans is one of the best lenders for individuals with drastically low credit scores.

Rates and Fees: 4.5/5 

BadCreditLoan’s lenders have similar interest rates to CashUSA, ranging from 5.99% to 35.99%. It’s impressive how BadCreditLoan offers competitive interest rates even with the low minimum credit requirement. However, you are subject to a higher APR if your credit score is less than 570.

Turnaround Time: 5/5

Once you fill out the online form, you must wait for one to two minutes for BadCreditLoans to match you with a list of potential lenders. You can then choose the loan with terms that work best for your specific situation. After you accept the loan, the money is sent to your bank account within a single business day.

Repayment Terms: 4/5

Loans from BadCreditLoans lenders carry repayment terms of 90 days to 72 months.

Customer Support: 4.5/5

You can submit a message through the contact form on the website. However, you can also contact BadCreditLoans through email at support@badcreditloans.com. For emergencies, you can call the hotline at 1-(800) 245-5626.

  • Easy to find lenders
  • Free service
  • Can borrow up to $10,000
  • Borrowers with extremely poor credit receive lower loan amounts
  • No BBB Accreditation
Personal-Loans logo

PersonalLoans – Best for Fast Installment Loans

4.58

★★★★★

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Providing loans for nearly two decades, PersonalLoans is one of the most reputable online lending solutions available. This lending platform doesn’t require a minimum credit score to get approved for a loan, making it an excellent option for fast installment loans. 

Application Process: 5/5

PersonalLoans carries a simple application process that takes around five minutes to complete. Make sure to have your bank account information ready, so the lender knows where to deposit your loan. 

Loan Amount Limits: 4/5

Uniquely, the minimum loan amount you can receive from PersonalLoans is $1,000. This is a higher minimum loan amount limit than the previous options on today’s list. Furthermore, since BadCreditLoans doesn’t require a minimum credit score, you will receive higher rates if your credit score is under 570.

Rates and Fees: 4.5/5

There are no application or finder fees at PersonalLoans. Furthermore, the offered APR varies from 5.99% to 35.99%, depending on your credit score. 

Turnaround Time: 5/5 

PersonalLoans matches you with potential lenders one to two minutes after you submit the online form. After you agree to the loan and sign your e-signature, the loan amount is electronically deposited into your bank account within the next business day. 

Repayment Terms: 4.5/5

Repayment terms range from 3 to 72 months at PersonalLoans. 

Customer Support: 4.5/5

You can reach PersonalLoans via email at support@personalloans.com. Furthermore, you can speak with a customer service agent by calling 1-(800) 772-2274. These reps are available Monday through Friday from 6 a.m. to 7 p.m. Pacific time. 

  • Rapid application process
  • No upfront or origination fees
  • Secured and unsecured loans up to $35,000
  • No BBB accreditation
  • Unavailable in a few states
Funds Joy logo

Funds Joy Loans – Best for Quick Loans

3.75

★★★★★

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Funds Joy Loans is growing as one of the top direct lenders in the market for fast cash. This lending platform offers instant loans to individuals with poor credit scores. Best of all, Funds Joy Loans provides same-day loans with a quick application process. 

Application Process: 4.5/5

Funds Joy Loans has an easy application process that takes just a few minutes to complete. You must also provide your driver’s license or state ID and checking account deposit information.

Loan Amount Limits: 3.5/5

You can quickly qualify for a loan of at least $200 at Funds Joy Loans. In addition, the maximum amount you can receive from Funds Joy Loans is $2,500. 

Rates and Fees: 3/5

The interest rates Funds Joy Loans lenders offer range from 4.99% to 450%. In addition, there are several lenders that also offer cash advance loans with interest rates ranging from 200% to 1386%.

Turnaround Time: 4.5/5

Although the application process takes less than five minutes, it may take up to 10 minutes for Funds Joy Loans to match you with potential lenders.

Repayment Terms: 4/5

Funds Joy Loans offers flexible repayment terms for up to 72 months, giving you time to get your finances back on track.

Customer Support: 3/5

The only way to get in touch with Funds Joy Loans is by sending them a message through the website’s contact page.

  • Can borrow unsecured personal loans up to $2,500
  • Easy application process
  • No additional fees
  • Potentially high APR
  • Relatively low minimum loan amounts
Credible logo

Credible – Best for High Loan Amounts

4.48

★★★★★

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Credible is an excellent option if you want to rebuild your credit score. With a soft credit check, Credible offers loans to individuals with poor credit scores. In addition, this reputable lending platform carries top-notch lenders, such as Sallie Mae and Rocket Mortgage. Therefore, you can find a trustworthy lender with agreeable terms quickly. 

Application Process: 4.5/5

Credible’s online application takes less than five minutes to finish. You should prepare your Social Security number and driver’s license to help verify your identity.

Furthermore, you must create a Credible account to keep track of your loan application status and debt balances. 

Loan Amount Limits: 5/5

Credible offers personal loans ranging from $600 to $100,000. However, you must have a credit score of at least 600 for guaranteed approval on your loan request. Although you can still apply for a loan with a credit score lower than 600, Credible may ask you to add a co-signer to improve your chances of approval.

Rates and Fees: 4.5/5

Credible is an online lending platform with many lenders. These lenders offer interest rates from 3.99% to 35.99%. Therefore, credible features some of the lowest interest rates you can receive with a bad credit score.

Furthermore, even though it’s free to use Credible’s lending platform, make sure to read the fine print of your loan terms to see if the lender charges any additional fees. 

Turnaround Time: 4/5

You will receive a list of potential lenders within a few minutes after you submit your online application at Credible. However, you may need to wait longer if you have an extremely poor credit score. Adding a co-signer improves your odds of finding a lender, and your application is valid for two weeks after you add the co-signer. 

Repayment Terms: 4/5

Credible offers kindly repayment terms from 12 to 84 months. This gives you enough time to get out of debt and start anew without the strain of high monthly payments.

Customer Support: 4.9/5

You can contact Credible via email at support@credible.com. Furthermore, you can call a customer service rep at (866) 540-6005.

  • Can have cosigners
  • Multiple loan options
  • Potentially low APR
  • Can borrow personal loans up to $100,000
  • Must have a 600 credit score or more for guaranteed approval
LendingTree logo

LendingTree – Best for Reputable Loan Marketplace

4.58

★★★★★

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As one of the best bad credit loans with instant approval, LendingTree has a long and reputable history of helping people just like you. Created in 1996, LendingTree has been servicing individuals with poor credit for over 25 years. This lending platform offers a wide range of financial products, including business loans, personal loans, and debt consolidation.

LendingTree also provides a mobile app you can use to check your credit score report. Therefore, LendingTree is an excellent option for those searching for a way to build their credit scores.

Application Process: 5/5

LendingTree has a simple application process that takes less than five minutes to submit. In addition, you have the option to add a co-signer if you have a low credit score and want to improve your chances of getting matched with the best lenders on the platform.

Loan Amount Limits: 4.5/5

The minimum unsecured personal loan amount is $1,000 at LendingTree. Alternatively, the maximum amount you can receive is $50,000. We only recommend applying for $50,000 if you have a relatively high credit score or have a co-signer on the loan.

A suitable credit score for guaranteed approval at LendingTree is 670. However, LendingTree is still willing to assist you if you have a lower credit score and will match you with appropriate lenders.

Rates and Fees: 4/5

Since LendingTree offers an extensive range of financial services, it charges origination fees of 3% to 6%. However, the APR varies from 7.04% to 35.89%, depending on the lender and your credit score.

Turnaround Time: 5/5 

Just like most of the best bad credit loans on today’s list, LendingTree matches you with a list of potential lenders in one to two minutes. Make sure to closely inspect the terms on each loan and compare the options before making a decision. 

Repayment Terms: 4/5

The repayment terms for a LendingTree loan vary depending on which lender your choose. However, the repayment terms can range from 24 to 144 months, so we recommend comparing offers before making a decision.

Customer Support: 5/5

You can send LendingTree a message on the website’s contact page. However, you can also reach them by telephone at 1-(800) 813-4620. The website’s contact page lists LendingTree’s operating hours.

  • Multiple loan options
  • Can borrow up to $1,000
  • Option to add co-borrowers
  • Mobile app availability
  • 3% minimum origination fee
AmOne logo

AmOne – Best for Fast Loan Applications

4.42

★★★★★

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AmOne is an industry leader when it comes to personal loans for bad credit. Founded in 1999, AmOne offers personal loans and other installment loans such as bad credit business loans. AmOne has assisted over 13 million individuals in finding the right loans for their needs. As such, this is one of the most reputable and trusted online lending platforms for bad credit scores.

Application Process: 4.5/5

It takes less than five minutes to finish and submit your AmOne loan application. You will be asked to provide your Social Security number and address, so ensure this information is readily available.

Loan Amount Limits: 4.5/5

AmOne’s loan amounts range from $1,000 to $50,000. However, AmOne gives higher loan amounts to people with higher credit scores. Nonetheless, it’s worth submitting an application because it won’t affect your credit. This is because AmOne conducts a soft credit inquiry. 

Rates and Fees: 4/5

AmOne features an extensive network of lenders with competitive interest rates fluctuating from 4.99% to 35.99%. Also, there are no upfront costs or origination fees at AmOne.

Turnaround Time: 5/5 

This lending platform offers incredibly fast turnaround times. Once you submit your application, AmOne provides a list of loan offers in less than three minutes. Then, after you agree to a specific loan, you can expect the money to hit your bank account within one business day.

Repayment Terms: 4/5

AmOne offers loan repayment terms between 24 to 84 months.

Customer Support: 4.5/5

You have the option of sending a message to an AmOne support agent directly on the website’s Contact page. In addition, you can call a loan representative at 1-(800) 781-5187. These experts are available to speak on Mondays to Fridays between 9 a.m. and 9 p.m. Eastern time. They are also available on Saturdays from 9 a.m. to 5:30 p.m. Eastern time.

  • Can borrow up to $50,000
  • BBB accreditation
  • Extensive network of personal loan lenders
  • Customer complaints about needless phone calls
Avant logo

Avant – Best for Debt Consolidation

4.37

★★★★★

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Avant is an outstanding choice for individuals with less-than-amazing credit. This is because you can qualify for a personal loan with a credit score as low as 580. In addition, you can use your Avant loan for many purposes, such as consolidating existing debt into a single payment or paying for unexpected expenses.

In addition to personal loans, Avant offers an Avant MasterCard you can use for credit cash advances. This card carries a limit of $300 to $3,000. Avant also has a mobile app that helps you organize your existing debt. 

Application Process: 4.5/5

You can finish your Avant loan online application in less than six minutes. However, make sure to have your Social Security number ready, as well as other personal information such as your email address, full name, home address, and phone number. Overall, the application is straightforward and quick. 

Loan Amount Limits: 4.5/5

The lenders in the Avant network offer loans ranging from $2,000 to $35,000. However, the loan amount Avant approves you for depends on your credit score. Since Avant doesn’t conduct a hard credit inquiry, submitting an application won’t affect your credit score.

Rates and Fees: 4.2/5

Avant charges an administration fee of up to 4.75% on your loan amounts. Furthermore, you can expect an APR on your loan ranging from 9.95% to 35.99%. Although the minimum APR is higher than other bad credit loans, Avant makes up for it by providing you with flexible repayment terms.

Turnaround Time: 4/5

On the lengthier side of waiting times, Avant provides a list of loan offers in up to 10 minutes. In addition, Avant sends an email of the potential lenders it has based on your credit score. Therefore, entering your correct personal information is crucial for your application to go through. 

Repayment Terms: 4/5

Avant provides flexible repayment terms from 24 to 60 months. 

Customer Support: 5/5

Avant offers the best customer support out of all the options on our list of the best bad credit loans with instant approval. This is because Avant carries a live chat option inside its mobile app. 

However, you can also send an email to support@avant.com or call a customer support agent at (800) 712-5407. The live chat staff and phone reps are available from Mondays to Fridays from 7 a.m. to 10 p.m. and on weekends from 7 a.m. to 8 p.m. Central time.

  • Lines of credit
  • Can borrow up to $35,000
  • Relatively low APR
  • May charge origination fees
  • Income documentation may be required
Citrus Loans logo

Citrus-Loans – Best for Emergency Loans

4.05

★★★★★

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Citrus Loans is our recommended lender when you’re in a stressful financial situation and need an emergency loan. This lending platform matches borrowers with low credit scores with potential lenders in just a few minutes. Furthermore, Citrus Loans is an excellent option for cash advance loans. 

Application Process: 4.5/5

The Citrus Loans online application takes less than five minutes to complete. Inside the online form, Citrus Loans asks you for your Social Security number, driver’s license number, and your bank account number. Also, you must be 18 years or older to qualify for a loan. 

Loan Amount Limits: 3.5/5

We only recommend Citrus Loans for short-term loans and emergency situations. This is because you can borrow a minimum amount of $100 and a maximum of $2,500. Furthermore, you can apply for a Citrus Loans loan with a sub-600 credit score.

Rates and Fees: 3.4/5

Since Citrus Loans carries payday loans, you can expect above-average interest rates. As such, the APR offered by Citrus Loans lenders ranges from 261% to 1304%. In addition, Citrus Loans does not charge an origination or service fee.

Turnaround Time: 4.9/5

Citrus Loans displays a list of potential lenders one to two minutes after you submit your online form. If Citrus Loans can’t find a suitable lender, it will send you to another online loan resource that may be able to assist you. 

Repayment Terms: 4/5

Citrus Loans offers repayment terms from 14 days to 24 months.

Customer Support: 4/5

You can contact the Citrus Loans customer service team by calling them at (888) 372-6219. This is the only way to get in touch with the customer support staff.

  • Can borrow up to $2,5000
  • No additional fees
  • A member of the Online Lenders Alliance
  • Relatively high APR

Loans For Bad Credit Methodology

Now that you understand the top 10 best bad credit loans with instant approval, it’s important to discuss how we compiled this list. We based our decisions on the most crucial factors in a bad credit loan, such as the application process, loan amounts, and fees.

So, let’s take a closer look at each of the core factors to consider when choosing loans for bad credit.

Application Process:

Fortunately, the application process for each of the options above is quick and painless. We understand you may already be in a stressful situation due to your financial situation, and we wanted to make it as easy as possible for you to find a bad credit loan. Therefore, you will be able to find a suitable online lender in less than 20 minutes with any of the options above.

Loan Amount Limits:

Another important factor to consider is how much money each lender offers. However, since you have a poor credit score, you shouldn’t expect to get approved for the maximum loan amounts. Instead, you can start with lower loan amounts and build your credit with payday loans or short-term loans.

Rates and Fees:

Luckily, many online lending platforms are here to help rebuild your credit score. Therefore, your loan may receive a lower-than-expected interest rate. However, individuals with extremely low credit scores may be unable to avoid high interest rates and fees.

Nonetheless, most lending platforms don’t charge additional fees and act as a free service that matches you with potential lenders. This is exactly what bad credit loans like Credible and CashUSA do.

Turnaround Time:

We only chose bad credit lending platforms with speedy turnaround and approval times. Therefore, you can expect to see a list of loan offers in less than 10 minutes. However, it may take a bit longer depending on your credit score and how much money you ask for.

Repayment Terms:

Since you’re likely under financial stress already, we chose lending platforms with flexible repayment terms. This means you’ll have more than enough time to repay your loan amount and rebuild your credit score.

Customer Support:

Since you’re dealing with an online lender, it’s important for the platform to offer above-average customer support. This is because there are no physical branches you can walk into and get help. The best bad credit loans offer a phone number you can call whenever an issue or inquiry arises. Furthermore, they should offer speedy email support. 

Personal Loans For Bad Credit: FAQs

Top 5 Best Bad Credit Loans: Overview

1. MoneyMutual

  • More than 10 years of experience
  • Loans up to $5,000
  • Quick application process

2. CashUSA

  • Can borrow up to $10,000
  • Origination fee-free
  • Receive money the next day

3. BadCreditLoans

  • Easy to find lenders
  • Free service
  • Can borrow up to $10,000

4. PersonalLoans

  • Rapid application process
  • No upfront or origination fees
  • Secured and unsecured loans up to $35,000

5. Funds Joy Loans

  • Can borrow unsecured personal loans up to $2,500
  • Easy application process
  • No additional fees

Final Thoughts on Best Bad Credit Loans

This concludes our list of the best bad credit loans with instant approval. Hopefully, you’ve chosen which online lending platform is the best for you by now.

Our top pick is MoneyMutual because it’s a trustworthy lending platform with low interest rates for individuals with poor credit history. MoneyMutual is also one of the best reputable payday lenders. Therefore, you can have peace of mind knowing MoneyMutual is entirely safe to use.

If you don’t need a personal loan and are looking for other options, you can look closely at platforms such as LendingTree, Credible, and BadCreditLoans.

Although you may have a poor credit score right now, that doesn’t mean you can’t take action to rebuild it. The online lending solutions we listed in today’s guide will help you get back on your feet in no time.

However, make sure to read the loan terms carefully so you can confidently make the monthly payments.

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7 Best Credit Union Business Accounts of 2023

A credit union business account building

A credit union business account is a friendly alternative to opening a business bank account. It could work for you if you’re looking for the right hub for your business finances to push your venture to the next level.

Similar to banks, credit unions are financial institutions that offer online business checking accounts, savings accounts, loans, and credit cards. However, the advantages of credit unions over traditional banks include personalized customer service, lower loan interest rates, lower fees, and higher APY on savings and checking accounts.

Check out the best credit unions for business banking accounts in 2023 to find the right one for your small business:

Product

Pricing

APY

Membership Requirements

Locations

Online Banking

Special Feature

Alliant logo

Alliant Credit Union

$0/month

0.25%-2.80%

Alliant employment, local proximity, or FC2S membership

Online + ATMs

Android & iOS

Unlimited credit card cashback

Consumers Credit Union logo

Consumers Credit Union

$0/month

0.03%-4.09%

$5 membership fee

Illinois branches + ATMs

Android & iOS

High Interest Checking account

Digital Federal Credit Union logo

Digital Federal Credit Union

$0/month

0.16%-6.17%

Employment w/ DCU partners, local proximity, or family affiliation

Massachusetts & New Hampshire branches + ATMs

Android & iOS

Primary Savings account

America First Credit Union logo

America First Credit Union

$0-$6/month

0.05%-1.10%

Located in Utah, Nevada, Arizona, or Idaho

Utah, Idaho, Arizona & Nevada branches + ATMs

Android & iOS

Multiple checking account options

Blue Federal Credit Union logo

Blue Federal Credit Union

$0/month

0%-5%

Donation, family affiliation, or work location in Wyoming or Colorado

Colorado & Wyoming full-service branches + Shared branches + ATMs

Android & iOS

In-person banking

PenFed Credit Union logo

PenFed Credit Union

$0-$10/month

0.05%-2.85%

U.S. citizenship or permanent residence

Branches in 15 states + ATMs

Android & iOS

Credit card incentives

Navy Federal Credit Union logo

Navy Federal Credit Union

Starts at $0/month

0%-3.15%

Military affiliation

Washington, D.C. & international branches + ATMs

Android & iOS

Various loan offers

Alliant logo

Alliant Credit Union: Best Overall

Pricing: $0/month

★★★★★

4.5

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Alliant Credit Union Review

Alliant Credit Union is the leading contender in our roundup because it ticks all the boxes for free bank accounts, flexible membership qualifications, reliable online banking technology, and unlimited cashback.

Screenshot of Alliant online banking page
Source: Alliant

It provides a full range of financial products and services, with different personal and business banking alternatives you can select from. Plus, you can open up to 19 different supplemental accounts for various goals if you become a member.

Pricing

Alliant offers you free bank accounts, just like most of the credit unions in this list. You don’t need to pay monthly service fees if you open a High-Rate Checking account. Also, there’s no monthly fees for the High-Rate Savings account if you choose to receive eStatements, although you must pay a $1 monthly fee if you prefer paper statements.

APY

These are the annual percentage yield (APY) rates for Alliant banking solutions:

  • High-Rate Checking Account: 0.25% APY
  • High-Rate Savings Account: 0.75% APY
  • Certificates: 2.80% APY
  • Custodial Account: 0.75% APY

It has the third highest APY among savings accounts, next to Digital Federal Credit Union and Consumers Credit Union. Yet along with Blue Federal Credit Union, it has the third lowest APY among checking accounts, although it’s a little higher than America First Credit Union and Digital Federal Credit Union.

Membership Requirements

You can join Alliant if you work for the institution’s businesses, organizations, or partners within the U.S. You may also qualify for membership if you live or work close to the union’s headquarters in Illinois.

However, the easiest way to join is to seek Foster Care to Success (FC2S) membership for only $5. Alliant will even settle this one-time fee on your behalf. Thanks to the FC2S option, a lot of people beyond the Alliant community have the opportunity to become a credit union member.

Alliant has one of the easiest eligibility requirements among the credit unions in our guide, on par with Consumers Credit Union and PenFed Credit Union. It’s not like America First Credit Union, Digital Federal Credit Union, or Navy Federal Credit Union which are only open to certain people based on employment, location, or affiliation.

Locations

Alliant is completely based online, which makes it the only credit union in this guide without any physical branches. Instead, you can access banking products and financial tools over the internet. Nevertheless, it has a broad network of over 80,000 fee-free ATMs. Plus, you can use ATMs outside the union’s network to make deposits and receive up to $20 refunds.

Online Banking

Because Alliant is an online credit union, it offers one of the most useful mobile banking apps for Android and iOS. You can settle your payments via bill pay, monitor your account balances, and even deposit checks through the app.

Special Feature

You have the chance to earn unlimited cashback simply by using the Alliant Cashback Visa Signature Credit Card. You can receive up to 2.5% cashback on your first $10,000 worth of qualifying purchases.

Why we chose it: We bestowed the title of best overall credit union of 2023 to Alliant Credit Union because it’s a remarkable all-purpose banking platform. It provides free banking solutions, various application methods, practical mobile app features, and cashback rewards.

  • No monthly service fees
  • Low membership barrier
  • Superior online banking
  • Credit card cashback
  • $1 monthly fee for paper statements
  • No brick-and-mortar branches
  • Relatively low checking APY

Pricing: $0/month

Consumers Credit Union logo

Consumers Credit Union: Best for Checking APY

Pricing: $0/month

★★★★★

4.25

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Consumers Credit Union Review

Consumers Credit Union (CCU) trumps other credit unions in this review because of its impressive checking APY. If you open a Free Rewards Checking account, you have the opportunity to earn as high as 4.09% APY on balances up to $10,000.

Consumers Credit Union home page screenshot
Source: Consumers

Founded in 1930, CCU is currently based in the state of Illinois. Aside from its checking account, the financial institution also offers other financial products, including savings accounts, business banking accounts, business lines of credit, credit cards, money market certificates, and loans.

Pricing

The CCU checking and savings accounts are both free, which is similar to the majority of the credit unions in this list. While there is a zero minimum balance for the checking account, you do need to maintain at least $5 in your savings account balance.

APY

Here are the APY rates for CCU banking solutions:

  • Free Rewards Checking Account: 0.10%-4.09% APY
  • Savings Account: 0.03%-0.25% APY
  • Money Market Account: 0.05%-0.25% APY
  • Certificates: 0.35%-2.30% APY

CCU has the highest APY for checking accounts among all the credit unions in this roundup. Take note that you need to qualify for the highest checking tier to benefit from the top interest rate. Along with Navy Federal Credit Union, it has the second lowest savings APY, only higher than Blue Federal Credit Union.

Membership Requirements

CCU has one of the simplest eligibility criteria in this guide, equal to Alliant Credit Union and PenFed Credit Union. All you need to do is spend a $5 membership fee to join CCU.

Locations

Although CCU is based in Illinois, it accepts customers from all over the nation. It has over 5,000 shared credit union branches spread out in the state, plus a nationwide chain of over 30,000 ATMs that are part of the CO-OP network.

Online Banking

CCU has a mobile app that’s compatible with Android and iOS devices. While the slightly outdated app doesn’t allow check deposits, you can at least conduct basic business functions like bill pay and fund transfers.

Special Feature

The standout feature of CCU is its High Interest Checking account. It comes with unlimited check writing and early direct deposit. Also, you can link your debit card so you can make payments via Google Pay, Apple Pay, and Samsung Pay.

Why we chose it: We acknowledge Consumer Credit Union as the best for checking APY because of its exceptional APY rates for the checking account.

  • Top-notch checking APY
  • No monthly fee or minimum balance for checking
  • $5 membership fee requirement only
  • Maximum checking APY for highest tier only
  • Fairly low savings APY
  • No mobile app check deposits

Pricing: $0/month

Digital Federal Credit Union logo

Digital Federal Credit Union: Best for Savings APY

Pricing: $0/month

★★★★★

4.0

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Digital Federal Credit Union Review

Digital Federal Credit Union (DCU) beats its competitors when it comes to APY rates for savings accounts. It’s possible for you to earn as much as 6.17% APY if you open a Primary Savings account.

Screenshot of Digital Federal Credit Union free checking account page
Source: DCU

Aside from savings solutions, DCU also offers a wide range of financial tools, such as checking accounts, credit cards, loans, and business lines of credit. It also stands out for its equity crowdfunding feature, which equips members to raise capital for investment in local businesses within the community.

Pricing

Both the checking and savings accounts of DCU don’t charge monthly maintenance fees, same as most of the credit unions in the list. There’s no minimum opening balance for the checking account as well, although you need to deposit at least $5 to open a savings account.

APY

See below for the APY rates of DCU banking solutions:

  • Checking Account: Up to 0.20% APY
  • Savings Account: 0.16%-6.17% APY
  • Money Market Account: Starts at 0.20% APY
  • Retirement Accounts: Starts at 0.20% APY

DCU has the highest APY for savings accounts among the credit unions in this roundup. Keep in mind that this maximum rate only applies to balances up to $1,000. Nevertheless, it has the second lowest APY for checking accounts, only higher than America First Credit Union.

Membership Requirements

You are qualified to join DCU if you work for any of the union’s partner companies or organizations. Also, you are eligible to apply if you worship or attend school in DCU eligible communities. Alternatively, you can earn membership if you have a relative who is currently a DCU member.

Because of its geographical and social restrictions, DCU has strict application requirements compared to Alliant Credit Union and PenFed Credit Union, which are open to more potential members.

Locations

DCU is based in Marlborough, Massachusetts. Plus, it has 23 branches located in Massachusetts and New Hampshire. Also, members have access to more than 80,000 surcharge-free ATMs through the CO-OP network.

Online Banking

DCU offers a digital banking platform via mobile phones or desktops with innovative financial tools for members. The mobile app is available for both iOS and Android smartphones.

Special Feature

The notable feature of DCU is the Primary Savings Account. It helps you grow your funds over time through its generous APY and dividend rates. Plus, the online calculator lets you compute how much you can save through estimated monthly deposits.

Why we chose it: We recognize Digital Federal Credit Union as the best for savings APY because of its phenomenal interest rates for savings accounts.

  • First-rate savings APY
  • Equity crowdfunding
  • Zero monthly maintenance fees
  • Minimum deposit requirement for savings accounts
  • Maximum APY applicable up to $1,000 only
  • Restrictive membership eligibility

Pricing: $0/month

America First Credit Union logo

America First Credit Union: Best for Checking Options

Pricing: Starts at $0/month

★★★★★

4.0

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America First Credit Union Review

America First Credit Union gives you the freedom to choose between different types of checking accounts. You can take your pick from Premium Checking, Classic Checking, Regular Checking, Money Market Checking, and HSA Money Market Checking.

America First Credit Union home page screenshot
Source: America First

This financial institution meets the banking needs of businesses and individuals through various banking products and services. Aside from checking accounts, it also presents savings programs, investment accounts, and low-rate loans. On top of this, it provides business registration services, which makes it possible for you to open a bank account with EIN only.

Pricing

Most of the America First checking accounts are free, with the exception of Premium Checking where you need to pay $6/month. Along with PenFed Credit Union and Navy Federal Credit Union, it’s one of the few credit unions in this review that charges a monthly fee for bank accounts. On the bright side, the savings account is free as long as you maintain a minimum balance of $1.

APY

Take a look at the APY rates for America First banking solutions:

  • Checking Accounts: 0.05% APY
  • Savings Accounts: 0.05%-0.50% APY
  • Money Market Savings Accounts: 0.05-0.15% APY
  • Certificates: 0.25% to 1.10% APY

America First has the lowest checking account APY among the credit unions in this guide. At least it ranks somewhere in the middle when it comes to its savings accounts APY.

Membership Requirements

Unfortunately, not everyone qualifies to join America First Credit Union, in contrast to PenFed Credit Union and Alliant Credit Union which have more lenient requirements. You must work, live, volunteer, or worship in Utah, Nevada, Arizona, or Idaho to become a member. Aside from this, you may be eligible for membership if you have a relative or spouse who is a member of America First.

Locations

America First has 128 full-service branches in Utah, Idaho, Arizona, and Nevada. It also has a network of over 5,600 shared branches and more than 60,000 ATMs via CO-OP‘s shared network.

Online Banking

America First has you covered if you like the convenience of mobile and online banking features. You can deposit checks, transfer funds, and schedule bill payments through the digital banking portal. The Android and iOS mobile apps also provide live update alerts and account balance information.

Special Feature

The standout feature of America First is the multiple types of checking accounts. It ranges from simple checking to advanced money market checking so you can select the one that perfectly fits your banking purpose.

Why we chose it: We commend America First Credit Union as the best for checking options because it has a wide array of checking accounts to meet different checking needs.

  • Rich checking options
  • Business registration services
  • Feature-packed digital banking portal
  • Lowest checking APY
  • $6 fee for Premium Checking
  • Membership limited to a few states

Pricing: $0-$6/month

Blue Federal Credit Union logo

Blue Federal Credit Union: Best for Easy Branch Access

Pricing: $0/month

★★★★★

4.0

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Blue Federal Credit Union Review

Blue Federal Credit Union excels when it comes to availability of in-person banking. On top of 18 full-service branches, you can also visit thousands of CO-OP shared branches to perform banking transactions.

Screenshot of Blue Federal Credit Union solutions page
Source: Blue Federal

This credit union showcases business and personal financial products, including loans and credit cards. You can even earn points through the membership reward program, which you can use to waive fees or earn loan discounts.

Pricing

Blue offers free business checking and savings accounts, like most of the credit unions in this review. While there’s no monthly maintenance fees or minimum balance for basic checking and savings, the higher tiers of business checking do require certain daily balance amounts.

APY

These are the APY rates for Blue banking solutions:

  • Business Checking Accounts: 0%-0.25% APY
  • Business Savings Account: 0.05% APY
  • Savings Accounts: 0.15%-5% APY
  • Business Tiered Money Market Accounts: 0.05%-0.25% APY

It has the second highest savings APY in the bunch, only next to Digital Federal Credit Union. Along with Alliant Credit Union though, it has the third lowest APY among checking accounts, but it’s higher than America First Credit Union and Digital Federal Credit Union.

Membership Requirements

Blue Federal Credit Union has versatile eligibility requirements, which is the opposite of Navy Federal Credit Union and America First Credit Union. First, you are qualified to join if you have a relative with a Blue membership. You are also eligible to apply if you work in Wyoming or Colorado. The third and most straightforward way to become a member is to donate $5 to the Blue Foundation.

Locations

There are over 5,000 CO-OP shared branches where you can receive in-person Blue financial services, unlike most of its peers which only have branches in certain states. Plus, the credit union has over 30,000 fee-free ATMs through the CO-OP network. However, you have to visit one of the 18 full-service branches in Colorado or Wyoming if you wish to open a bank account.

Online Banking

You can access your Blue account through the convenient mobile app available for iOS and Android. You can also send money, pay bills, and check your loan status through the online banking portal.

Special Feature

The standout feature of Blue is the wide availability of in-person banking. This could come in handy for you if you prefer to perform banking transactions in a brick-and-mortar branch assisted by staff whom you can directly interact with in real life.

Why we chose it: We acknowledge Blue Federal as the best for easy bank access because it brings face-to-face banking within reach of many people in the U.S.

  • 5,000+ shared branches
  • High savings APY
  • Flexible membership requirements
  • Minimum balance for high-tier checking accounts
  • Relatively low checking APY
  • Account opening unavailable in shared branches

Pricing: $0/month

PenFed Credit Union logo

Pentagon Federal Credit Union: Best for Credit Card Rewards

Pricing: Starts at $0/month

★★★★★

3.75

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Pentagon Federal Credit Union Review

Pentagon Federal Credit Union, also known as PenFed, has an edge over its competitors when it comes to credit card incentives. You have the chance to earn big rewards if you use the PenFed Platinum Rewards Visa Signature Card to pay for everyday purchases.

Screenshot of Pentagon Federal Credit Union online savings account page
Source: PenFed

This credit union was established in 1935. At present, it offers a full suite of financial services, such as checking accounts, savings accounts, money market certificates, and CDs. It also provides different kinds of loans, including mortgages and auto loans.

Pricing

There is a $10 monthly service charge for most of the checking accounts of PenFed, except the free checking one. Along with America First Credit Union and Navy Federal Credit Union, it’s one of the few institutions in our list that charges maintenance fees for bank accounts.

Still, you can waive this fee if you have a monthly direct deposit or daily balance worth $500 or more. At least you don’t have to pay a monthly fee if you open a savings account, although you need to deposit and maintain a balance of at least $5.

APY

Check out the APY rates of PenFed below:

  • Access America Checking Account: 0.15%-0.35% APY
  • Savings Accounts: 0.05%-0.75% APY
  • Money Market Savings Account: 0.15% APY
  • Money Market Certificates: 2.85% APY

Its checking APY falls somewhere in the middle of the group. Nevertheless, it has the second highest savings APY alongside Alliant Credit Union, next to Digital Federal Credit Union.

Membership Requirements

At first, PenFed membership was limited to those who served in the federal government or military. Today, anyone who is a U.S. citizen or permanent U.S. resident can join PenFed and benefit from its financial products.

That’s why it’s now more inclusive than America First Credit Union, Digital Federal Credit Union, or Navy Federal Credit Union. Take note that you have to be at least 18 years old to apply as a PenFed member.

Locations

PenFed has 48 full-service branches spread across 15 states. Members can conduct banking transactions at over 85,000 fee-free ATMs through CO-OP and Allpoint ATM networks.

Online Banking

PenFed allows you to access your account and perform a range of banking tasks from your smartphone or tablet. It has an intuitive app available for iOS and Android which lets you make check deposits, access bill pay tools, locate nearby ATMs, and instantly transfer funds between PenFed accounts.

Special Feature

The PenFed Platinum Rewards Visa Signature Card grants you the opportunity to gain bountiful rewards. By powering up your company cars, you could earn up to 5x points per dollar spent on gas at pump and EV charging stations. Plus, you will get 3x points when you shop at supermarkets, dine in restaurants, and pay tech bills.

Why we chose it: We recognize PenFed as the best for credit card rewards because it generously grants points for common business and personal purchases.

  • Credit card incentives
  • High savings APY
  • Open to U.S. citizens & permanent residents
  • $10 monthly fee for most checking accounts
  • Mediocre checking APY
  • Steep requirements to waive checking fees

Pricing: $0-$10/month

Navy Federal Credit Union logo

Navy Federal Credit Union: Best for Small Business Loans

Pricing: Starts at $0/month

★★★★★

3.5

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Navy Federal Credit Union Review

Navy Federal Credit Union sets itself apart from other credit unions because of its small business financial solutions. If you’re an eligible member, you can expand your venture and build your inventory with the help of business-friendly loans.

Navy Federal Credit Union home page preview
Source: Navy Federal

This full-service financial institution was founded in 1933. It offers checking accounts, savings accounts, credit cards, and loans. You can even open as many savings accounts as you like. However, while it’s considered as the largest credit union in the U.S., its strict membership requirements lock out most people from eligibility.

Pricing

Most of the Navy Federal checking accounts are free, except for the Flagship Checking account which has a monthly service fee of an unspecified amount. Similar to America First Credit Union and Blue Federal Credit Union, it’s one of the few institutions in this review which involves a monthly fee for bank accounts. Still, there’s no monthly service fee for the Navy Federal savings account, although you need to deposit at least $5 to open an account.

APY

Take a peek at the APY rates of Navy Federal banking solutions:

  • Checking Accounts: 0.01%-0.45% APY
  • Savings Accounts: 0.25% APY
  • Money Market Savings Account: 0%-0.45% APY
  • Jumbo Money Market Savings Account: 0.25%-0.50% APY
  • Certificates: 0.40% to 3.15% APY

It has the second highest checking APY compared to its peers, only next to Consumers Credit Union. Yet alongside Consumers Credit Union, it has the second lowest savings APY, only higher than Blue Federal Credit Union.

Membership Requirements

Military affiliation is a non-negotiable requirement for membership with the Navy Federal Credit Union. The main requirement to join the credit union is active duty with any department of the U.S. armed forces. Also, you may qualify for membership if you’re a military retiree, veteran, or an immediate family member of an eligible member.

Its membership criteria is very restrictive, in contrast to Alliant Credit Union, Consumers Credit Union, and PenFed Credit Union. If you’re interested in a checking account but aren’t eligible for Navy Federal Membership, you may check out other checking accounts like the one we discussed in our Bluevine review.

Locations

Finding a Navy Federal full-service branch shouldn’t be a problem because the credit union has 350 offices spread across Washington, D.C. and abroad. Members can also access their funds through over 30,000 ATMs in the CO-OP network.

Online Banking

Navy Federal digital banking allows you to manage your account anytime, anywhere. Through the mobile app for Android and iOS, members have full access to financial tools that enable them to transfer funds and view account activities.

Special Feature

Navy Federal provides a suite of small business financing solutions at low-interest rates and a flexible repayment plan of up to 60 months. This makes it convenient for entrepreneurs to address short-term cash flow issues and make urgent commercial equipment purchases.

Why we chose it: We commend Navy Federal Credit Union as the best for small business loans because it provides funds to help entrepreneurs start a new business or grow their existing one.

  • Cost-effective business loan options
  • High checking APY
  • National & international branches
  • Very limited membership eligibility
  • Flagship Checking monthly fee
  • Low savings APY

Pricing: Starts at $0/month

Methodology for the Best Credit Unions for Business Banking Accounts

We analyzed the offerings of different credit unions, plus rates and fees, to pick out credit unions that soar high in various categories. Here are the main features we considered:

  1. Pricing: First, we researched if the checking and savings accounts offered by the credit unions are free or not. In case there are maintenance fees, we confirmed how much you need to pay each month.
  2. APY: Next, we checked how much APY you can potentially earn with the checking and savings accounts. Since the rates may vary per category, we gave an overview of the APY ranges for each banking solution.
  3. Membership Requirements: We evaluated the eligibility requirements for all the credit unions. Also, we assessed if the membership criteria of each institution is welcoming or restrictive.
  4. Locations: We examined if there are available physical branches or not, as well as where these spots are located. In addition to this, we indicated if members have access to ATM networks or not.
  5. Online Banking: We took a look at the mobile app and/or digital banking portal of every credit union. Plus, we explained which banking transactions you can perform online.
  6. Special Feature: Last but not least, we highlighted what the standout feature is for each credit union, as well as what makes it unique.

Note: The pricing and APY rates in this guide are based on available information in June 2022.

Frequently Asked Questions (FAQs) for Credit Union Business Accounts

Final Thoughts on the Best Credit Union Business Accounts

The number of businesses and individuals joining credit unions has been steadily rising over the past few years. In 2020, credit unions in the United States boasted 126.6 million members, which is a significant leap from the 98.4 million members it had back in 2013. Today, these financial institutions have less stringent eligibility requirements. Plus, members enjoy lower fees and higher APY rates, as well as the power to influence the organization.

Now that you’ve read our comparative guide to the best credit union business accounts, we hope you’re confident enough to pick the credit union business account which will best meet the needs of your small business.

Best Business Bank Accounts by State

Below you will find an interactive U.S map that can help you locate and compare different banks and financial institutions that offer business accounts in your area.

AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY DC
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5 Best Mortgage Lenders of 2023

Best mortgage lenders' approved application form on a desk

The best mortgage lenders empower you to buy or maintain your own house through home loans. That’s why mortgages are one of the main sources of debt in the U.S., with a national value of $17.6 trillion as of October 2021.

There’s no need to wait until you save enough money to purchase a house if you get a loan from the right bank or financial institution. Get ready to compare the best mortgage lenders of 2023 so you can pick the one which meets your unique needs as a borrower.

Best Mortgage Lenders of 2023

By far, the most important factors for choosing the best mortgage lender include minimum down payment and interest rate. The lower the minimum percentage, the better, but you also want to consider what your interest rate will be, so you don’t give more money to a bank than to your assets. There are plenty of other things to consider, and you can see how we ranked these lenders in our full explanation of our methodology below.

Bank

Minimum Down Payment

Interest Rate (As of June 2022)

APR (As of June 2022)

Home Buying

Refinancing

Application Process

Payment Methods

Special Feature

Bank of America logo

Bank of America

Starts at 3%

  • 30-Year Fixed: 5%
  • 15-Year Fixed: 4.125%
  • 5/6 ARM Variable: 4.25%
  • 30-Year Fixed: 5.195%
  • 15-Year Fixed: 4.472%
  • 5/6 ARM Variable: 3.949%

Online or in-person

PayPlan or MortgagePay

Home loan assistance

Ally bank logo

Ally

Starts at 3%

  • 30-Year Fixed: 5.125%
  • 15-Year Fixed: 4.375%
  • 5/6 ARM Variable: 4.875%
  • 30-Year Fixed: 5.14%
  • 15-Year Fixed: 4.390%
  • 5/6 ARM Variable: 4.290%

Online

Automatic, paperless, or one-time monthly payment

3-minute pre-approval

PNC Bank logo

PNC

Starts at 3%

Variable

Variable

Online or in-person

Online banking, automated, phone, mail, or in-branch payment

Closing grant

Chase Business logo

Chase

Starts at 3%

Variable

Variable

Online or in-person

Automatic, online, cash, check, money order, phone, or bank transfer payment

Educational incentive

Rocket Mortgage logo

Rocket Mortgage

Starts at 3%

  • 30-Year Fixed: 5.75%
  • 15-Year Fixed: 5.125%
  • 30-Year Fixed: 6.021%
  • 15-Year Fixed: 5.59%

Online

One-time online, autopay, or mail payment

Supports down payment assistance programs

Bank of America logo

Bank of America: Best Overall

Minimum Down Payment: Starts at 3%

4.5

★★★★★

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Bank of America Review

Bank of America is our number one choice in this roundup of mortgage lenders. It has the highest ranking because it packs together cost-effective rates, transparent data, accessible mortgage plans, and face-to-face services. Of course, we discussed in our Bank of America review that it’s also a solid all-around business bank.

To start with, its mortgage interest rates and APR are the most budget-friendly among all the lenders in the list, based on June 2022 rates. You can take your pick between fixed and variable loans, as well as the length of your repayment schedule. Plus, the current rate list is readily available on the official website so you don’t need to make complex computations anymore.

Also, it presents the Affordable Loan Solution for first-time home buyers of one-unit properties, which allows you to benefit from lower down payments. Finally, Bank of America has physical locations as a traditional bank. You can schedule an appointment if you need personalized assistance related to your mortgage.

Bank of America mortgage page preview
Source: Bank of America

While Bank of America is an impressive mortgage lender, it does have certain limitations. For instance, you need to prequalify first before you can apply for a mortgage and estimate your loan amount. The stringent criteria for prequalification include income information, credit check, and bank account data.

In addition to this, the payment options are sparse compared to its competitors. On top of this, you need an existing checking or savings account to take advantage of the PayPlan and MortgagePay methods.

To sum things up, Bank of America is one of the top mortgage lenders because it comes with a lot of perks.

Why we chose it: We salute Bank of America as the best overall mortgage lender in this comparative review. After all, it beats its competitors in terms of cost-effective rates, information disclosure, and in-person service.

  • Competitive rates
  • Straightforward rate listing
  • Affordable Loan Solution mortgage
  • Brick-and-mortar branches
  • Strict prequalification requirements
  • Few payment methods
  • Bank of America account required for PayPlan or MortgagePay

Pricing: 3% or higher minimum down payment

Minimum Down Payment

Bank of America only requires first-time home buyers to pay a 3% down payment, which is similar to all the mortgage lenders in the list. Just be aware that the minimum down payment can rise to 5% for mortgages in high-cost areas.

Interest Rate

It offers the lowest interest rates among its competitors in this guide which openly advertise their rates. As of June 2022, the 30-year fixed interest is 5%, the 5-year fixed is 4.125%, and the 5/6 ARM variable is 4.25%.

APR

Again, Bank of America has the overall lowest APR compared to other lenders whose rates are publicly available, as of June 2022. While the 30-year fixed APR is slightly higher than Ally’s at 5.195%, the 15-year fixed and 5/6 ARM variable APR are lower at 4.472% and 3.949% respectively.

Home Buying

Like the rest of its peers, it gives you the chance to purchase a home through the Bank of America Digital Mortgage Experience. However, you need to meet the prequalification requirements first.

Refinancing

It presents you with refinancing opportunities, similar to other mortgage lenders. It grants you as many refinance options as PNC. You can select from fixed-rate, adjustable rate, FHA, VA, and cash-out refinance loans.

Application Process

You can choose from online or in-person application procedures. It’s more versatile than Rocket Mortgage, which only lets you apply over the internet.

Payment Methods

It enables you to make mortgage payments via auto-debit PayPlan or one-time MortgagePay. These two payment options are meager compared to the various payment methods of Chase.

Special Feature

Bank of America’s special feature is the home loan assistance for borrowers who find it hard to make loan payments. There are solutions for those who want to save their home, as well those who are willing to let it go to settle their debts.

Ally bank logo

Ally: Best for Fast Processing

Minimum Down Payment: Starts at 3%

4.25

★★★★★

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Ally has an edge over the other mortgage lenders in the bunch because of its simple application process. After all, you can gain pre-approval in as short as three minutes only. Plus, it helps you close deals up to 10 days quicker compared to the mortgage industry average.

To make things even better, it won’t charge you any lender fees, such as processing, underwriting, processing, or application fees. In addition to this, it’s the runner-up next to Bank of America in terms of affordable APR and interest rates.

Last but not least, it’s more welcoming to borrowers with different financial backgrounds, compared to conventional banks with high standards. It does its best to provide solutions for people who are hesitant to apply for a mortgage because of limited funds or difficult situations.

Ally mortgage page preview
Source: Ally

Nevertheless, Ally has some drawbacks as well. An obvious one is that there aren’t any physical branches you can visit because it’s a digital financial services company, not a traditional bank. Also, it only offers regular loans, but not VA or FHA loans, which might be restricting for some borrowers. Aside from this, there are only a few methods you can utilize to make mortgage payments.

Overall, Ally is a cutting-edge lender whose modern solutions make it convenient for potential home buyers to get a mortgage.

Why we chose it: We award Ally as the best for fast processing among mortgage lenders because it simplifies the way you apply for a home loan.

  • Speedy application procedure
  • No lender fees
  • Reasonable rates
  • Less strict requirements for borrowers
  • No physical locations
  • Basic loans only
  • Limited payment methods

Pricing: 3% or higher minimum down payment

Minimum Down Payment

Ally provides down payment options as low as 3%. This rate is the same as the rest of the mortgage lenders in the list. 

Interest Rate

Next to Bank of America, Ally has the second lowest interest rates compared to its competitors who publicly display their rates too. As of June 2022, the 30-year fixed rate is 5.125%, the 15-year fixed is 4.375%, while the 5/6 ARM variable is 4.875%.

APR

Once more, it generally has the second lowest APR among the other lenders with openly available rates, as of June 2022. While the 30-year fixed APR is 5.14% slightly lower than Bank of America’s, the 15-year fixed and 5/6 ARM variable APR are a little higher at 4.390% and 4.290%.

Home Buying

Similar to its peers, Ally assists first-time home buyers through the HomeReady mortgage program. In contrast to Bank of America which has strict prequalification requirements, it’s ready to help borrowers with limited down payment resources or challenging circumstances.

Refinancing

It offers refinancing options like the rest of the lenders in this guide. However, you can only apply for basic loans, but not FHA or VA loans, which are available from the rest of its competitors.

Application Process

Ally has the quickest application process out of all the mortgage lenders in the group. The procedure is completely online, in comparison to Chase and Bank of America which both have a face-to-face option.

Payment Methods

There are slightly more ways to pay than Bank of America, but less ways than Chase. You can make automatic, paperless, or one-time monthly payments for your mortgage.

Special Feature

Ally’s special feature is the 3-minute pre-approval process. It streamlines the mortgage application steps so you can save time and effort.

PNC Bank logo

PNC: Best for Closing Grants

Minimum Down Payment: Starts at 3%

4.0

★★★★★

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PNC sets itself apart from the other mortgage lenders in the bunch by minimizing your closing costs. Its closing grant can supply you with a hefty amount of $5,000 towards closing fees. Of course, you do need to qualify for the grant first by meeting income requirements or living in certain communities.

Plus, it gives you a wide selection of loan types to choose from, including fixed rate, adjustable rate, VA, FHA, and jumbo loans. On top of this, PNC has physical branches where you can drop by if you need face-to-face services regarding mortgage matters.

PNC mortgage page preview
Source: PNC

However, PNC isn’t exempt from disadvantages. To begin with, you must provide your loan amount and ZIP code first before you can view the APR and interest rates. Finally, you must meet certain standards when you apply for a mortgage by presenting your employment credentials and your income amount.

To make a long story short, PNC can be an attractive option to borrowers who wish to reduce or get rid of closing costs when purchasing a home.

Why we chose it: We recognize PNC as the best for closing grants among mortgage lenders because it makes it more affordable for you to close home deals through financial assistance.

  • Closing grants
  • Various loan options
  • Brick-and-mortar locations
  • No direct list of APR & interest rates
  • Employment verification required
  • Income assessment

Pricing: 3% or higher minimum down payment

Minimum Down Payment

PNC gives you the chance to buy a house with down payments as low as 3%. This minimum percentage is comparable to the other mortgage lenders in this guide.

Interest Rate

The interest rates may change based on your loan amount and ZIP code. There is no readily available list of rates, unlike Bank of America, Ally, and Rocket Mortgage.

APR

Once more, the APR depends on your location and loan value. It doesn’t directly display its APR data, in contrast to Ally, Rocket Mortgage, and Bank of America.

Home Buying

PNC guides you through your home buying journey, similar to all its competitors. You can take advantage of tools and resources when you apply for a PNC Mortgage.

Refinancing

Like the rest of the lenders, it presents you with refinance opportunities. It gives you as many refinance alternatives as Bank of America, thanks to its adjustable rate, fixed rate, jumbo, FHA, and VA loans.

Application Process

You can pick your preferred mortgage application method, whether it be online or in-person. In contrast to Rocket Mortgage and Ally, PNC has physical locations you can visit.

Payment Methods

Next to Chase, it has the second most payment avenues available to borrowers. You can make mortgage payments through online banking, automated, phone, mail, or in-branch methods.

Special Feature

PNC’s special feature is the closing grant. It’s possible for you to receive a $5,000 grant towards closing expenses if you’re a qualified borrower.

Chase Business logo

Chase: Best for Payment Flexibility

Minimum Down Payment: Starts at 3%

4.0

★★★★★

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Chase trumps the rest of the mortgage lenders in this roundup when it comes to rich payment options. After all, it has a variety of payment methods you can select from. These include automatic, online, bank transfer, phone, cash, check, and money order.

Also, it motivates you to complete the Chase DreaMaker Mortgage educational course by rewarding you with $500. Aside from this, you can drop by brick-and-mortar branches if you prefer to apply for a mortgage in person. That’s because it’s a traditional bank with physical locations, as mentioned in our Chase Bank review.

Chase mortgage page preview
Source: Chase

Still, Chase admittedly has some weaknesses as a mortgage lender. For example, you need to input your ZIP code first before you can browse through the local APR and interest rates. Next, you must be prepared to pay closing costs before you assume ownership of the new house. Lastly, it recommends a good credit score and low debt-to-income ratio for borrowers who want to prequalify for mortgages.

In general, Chase is a conventional bank that gives you freedom to make mortgage payments via your favorite method.

Why we chose it: We commend Chase as the best for payment flexibility because there’s a lot of payment alternatives you can take your pick from.

  • Multiple payment methods
  • Educational incentives
  • Physical branches
  • No list of APR & interest rates
  • Closing fees
  • Strict prequalification requirements

Pricing: 3% or higher minimum down payment

Minimum Down Payment

Chase makes home ownership accessible through down payments as low as 3%. This rate is similar to the rest of the mortgage lenders in the list.

Interest Rate

Its interest rates are variable. You need to enter your ZIP code to see the local rates, in contrast to Bank of America, Ally, and Rocket Mortgage that openly display the data.

APR

Again, the APR is variable. You must provide your ZIP code first to view the APR, unlike Ally, Rocket Mortgage, and Bank of America which publicly lists the information.

Home Buying

Chase enables you to buy your own home, along with the rest of its peers. You can select between Chase DreaMaker Mortgage and Standard Agency Mortgage for low down payments.

Refinancing

It provides you with refinancing plans, just like all its competitors in this review. It features more refinance options than Ally, yet less than Bank of America, with its alternative, FHA, and VA loans.

Application Process

You can apply online or in person for a mortgage. It has brick-and-mortar buildings you can head to, unlike Ally and Rocket Mortgage.

Payment Methods

By far, it has the most payment methods among all the lenders in the list. While most have two or three payment options, Chase beats them all by showcasing seven methods: online, automatic, bank transfer, phone, check, money order, and cash.

Special Feature

Chase’s special feature is its educational incentives. You can potentially earn $500 once you complete a course under the Chase DreaMaker Mortgage program.

Rocket Mortgage logo

Rocket Mortgage: Best for Low Credit Scores

Minimum Down Payment: Starts at 3%

3.5

★★★★★

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Rocket Mortgage is the most viable option for borrowers with a less-than-ideal credit standing among the mortgage lenders in this guide. It gives you the chance to get your home loan approved even if your credit score is as low as 580, at least if you meet certain eligibility criteria. It even encourages you to improve your credit score through the Fresh Start program.

Plus, it’s open to third-party down payment assistance programs. It accepts loans or grants from other organizations to make it easier for you to fund your home down payment. Lastly, you can call Home Loan Experts who can answer your questions about mortgages.

Rocket Mortgage page preview
Source: Rocket Mortgage

However, Rocket Mortgage has its disadvantages too. To begin with, it has comparatively steep APR and interest rates next to its competitors. Also, while it presents different types of fixed-rate loans, there are no variable loan alternatives.

In addition to this, while it supports down payment assistance from other organizations, it doesn’t have an in-house down payment assistance program of its own. Lastly, there are no physical locations where you can request for in-person services. That’s because it’s not a conventional bank, but an online mortgage lender.

To wrap things up, Rocket Mortgage offers hope to potential home buyers who might not typically qualify for mortgages with traditional banks.

Why we chose it: We acknowledge Rocket Mortgage as the best for low credit scores because you don’t need a spotless record to qualify as a borrower.

  • Low credit score requirements
  • Third-party down payment assistance support
  • Home Loan Experts available
  • Relatively high rates
  • No variable interest options
  • No in-house down payment assistance
  • No brick-and-mortar branches

Pricing: 3% or higher minimum down payment

Minimum Down Payment

Rocket Mortgage only requires you to pay a minimum of down payment of 3% or higher. This percentage is comparable to all the other mortgage lenders in this list.

Interest Rate

It has the highest interest rates compared to Bank of America and Ally, which also openly exhibit their rate information. As of June 2022, the 30-year fixed rate is 5.75% and the 15-year fixed is 5.125%.

APR

It also has the highest APR among its peers, particularly Ally and Bank of America which publicly share rate data too. The 30-Year fixed APR is 6.021% and the 15-year fixed APR is 5.59%, as of June 2022.

Home Buying

Rocket Mortgage helps you purchase a new home, just like all its competitors. You can maximize the mortgage tools or request for advice from Home Loan Experts.

Refinancing

It presents you with refinance solutions, similar to all the lenders in this review. With its fixed-rate, VA, FHA loans, it gives you more refinancing options than Ally, but less than Bank of America.

Application Process

The application process is purely online. It’s not like Bank of America, Chase, or PNC which also grant you the alternative of in-person application.

Payment Methods

It offers a little more methods to pay your mortgage than Bank of America, yet less methods than Chase. It allows you to make mortgage payments via one-time online, autopay, or mail.

Special Feature

Rocket Mortgage’s special feature is its acceptance of third-party down payment assistance programs. It supports certain grants and loans from other financial institutions. However, it doesn’t have its own in-house down payment assistance program.

Methodology for the Best Mortgage Lenders of 2023

We took vital factors into account as we compared the best mortgage lenders of 2023. Check out some of the criteria we considered while comparing the lenders to each other:

  • Minimum Down Payment: To begin with, we researched what minimum percentage of the purchase price you need to provide as down payment for your new home. Most mortgage lenders offer a down payment as low as 3% for eligible borrowers.
  • Interest Rate: We examined how much interest you need to pay every year on your mortgage. Take note that the interest rates in this guide reflect the available information on June 2022.
  • APR: We evaluated the annual percentage rate (APR) or total borrowing cost you will incur with your home loan. Again, the APR data comes from June 2022 statistics.
  • Home Buying: We confirmed if each lender provides you with home loans so you can buy a new house. All the banks and financial institutions in this list provide mortgage options.
  • Refinancing: We checked if every lender presents you with refinancing solutions. Again, all the banks and organizations in this guide grant refinancing loans.
  • Application Process: We explained whether you can apply for a mortgage online or in-person. In general, traditional banks provide both application options, while online lenders only let you apply over the internet.
  • Payment Methods: We took note of the available ways you can make mortgage payments to each lender. Some examples of common payment methods are automatic, one-time payment, online, mail, and cash.
  • Special Feature: We assessed the unique offers which the lenders showcase to attract borrowers. Most special features are related to financial incentives, although some are connected to the application process.

We understand that each borrower has different requirements when it comes to selecting a mortgage lender. That’s why we covered various criteria to help you search for a lender that satisfies your needs.

Frequently Asked Questions (FAQs) for Best Mortgage Lenders

The best mortgage lenders open the door to home buying and refinancing opportunities. Discover the answers to common questions about mortgages and lenders.

Bottom Line on the Best Mortgage Lenders of 2023

Mortgage lenders make it possible for you to own a house whether you’re flush with cash or not. We give a nod of approval to all the best mortgage lenders of 2023 in our comparative review. Nevertheless, we especially recommend Bank of America to future home loan borrowers like you, thanks to its competitive rates, clear information, economical mortgage solutions, and in-person options.

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Merchant Cash Advance: How It Works, How to Get One + Pros & Cons

Businessman receiving a merchant cash advance concept

Small businesses that receive payments via card terminals like credit and debit cards can opt for a merchant cash advance (MCA) instead of traditional bank loans. An MCA is an advance on credit card receipts where small business owners receive an upfront lump sum.

What Is a Merchant Cash Advance?

A merchant cash advance is an alternative to traditional bank loans, only available to businesses that take credit card payments. It can benefit small businesses that mainly receive payment via credit card sales and do not qualify for traditional loans or require a quick cash advance to manage their cash flow.

The hallmark perk of an MCA is that the lender provides an upfront lump sum amount processed in one to three days. You don’t need to have collateral or excellent business credit, and there are no stipulations as to how you should use the advance. As long as you make credit card sales, you need to commit to repaying the advance plus the service fee with a predetermined percentage of your daily turnover.

Applying for an MCA is convenient, especially for businesses requiring a quick cash flow boost to streamline their operations. The catch is that the advance attracts a higher interest rate than traditional bank loans.

  • Fast funding typically approved in 24 to 72 hours
  • Easy to qualify (good credit or collateral are not a requirement)
  • Flexible repayment terms based on your sales
  • Freedom to use the advance as you deem fit
  • Expensive (APR could be triple digits)
  • Only businesses that accept credit cards qualify for MCAs
  • You must make daily payments which can affect your cash flow
  • MCAs are not subject to federal regulations (it’s easy to fall victim to predatory loans)

Who Is a Merchant Cash Advance Best For?

Merchant cash advances are ideal for small businesses that receive high volumes of credit card payments. Because of the extreme flexibility in the repayment plan and how you can use the money, an MCA can offer reliable short-term financing solutions if you need:

  • Quick working capital to boost a short-term cash flow crisis
  • Money for unexpected business expenses (like fixing broken equipment)
  • Money to fund a short-term opportunity and generate a higher ROI (like taking advantage of an inventory sale deal at discounted rates)
  • Settling pressing business debts where nonpayment attracts higher interests rates

Who Should Not Consider Taking a Merchant Cash Advance?

Generally, an MCA is not ideal for reviving the operations of a struggling business. Remember that you must make daily payments from your credit card sales, meaning the advance could throw you deeper into debt. If you are not borrowing to boost an ROI-generating project, an MCA can quickly become a toxic loan.

How Does a Merchant Cash Advance Work?

MCAs lack a stringent approval process. It’s easy to qualify for an advance even if you lack a business line of credit or valuable assets that attract deals from traditional lenders. The fast cash advance can allow you to manage any limitations in your cash flow and streamline your operations.

The MCA lender will provide an upfront sum of money for a percentage of your business’s credit card revenue. It is crucial to understand the three main components of a merchant cash advance for you to acquaint yourself with the strings attached to a deal. These include the following.

Cash Advance

The cash advance is the primary subject of interest that links small business owners and MCA lenders. The lender needs transparency into a business’s average monthly turnover before agreeing to the advance amount and the repayment plan. Also, the business owner must stipulate the required amount.

The lender can offer the requested amount or reduce it depending on the risks presented. Generally, MCAs are short-term loans, although the lender has the discretion of offering money that is less than, equivalent to, or greater than your monthly credit card turnover.

Repayment Amount

The MCA lender will need to recover the upfront advance and a profit typically known as a “factor.” Most lenders set the factor rate at 1.1 to 1.5. To figure out the estimated repayment amount, multiply it with the advanced money. Also, you should note that the transaction can attract a variety of fees that can further inflate the total repayment amount.

Because merchant cash advances are not typical loans, they have higher interest rates and lack a true APR (annual percentage rate). Depending on the advance given and the length of the repayment plan, the “APR” can fall anywhere between 80% and 200%. Often, the repayment period ranges between three and 18 months and depends on the amount of money you generate from sales.

Example of an MCA Repayment

If you apply for a $50,000 merchant cash advance, and the lender sets the factor rate at 1.4, the loan will attract a $20,000 fee. The total repayment amount will be $70,000. If the contract stipulates that the lender will deduct 10% from your credit card sales each month and your business generates $100,000 monthly, $10,000 will be deducted monthly or $333 daily.

In the above example, the APR is at 125%. However, it will reduce to 87.3% if your monthly turnover drops to $70,000, and you will start making payments of $233 daily. The majority of MCAs attract triple-digit APRs.

What Affects an MCA Factor Rate?

Lenders set their factor rates depending on a borrower’s industry, business financial stability, credit card sales history, and years of operation. The repayment fees can be higher depending on the level of risk posed and how quickly you are willing to repay the MCA.

For instance, if you apply for a merchant cash advance of $20,000, and the lender sets the factor rate at 1.5, you are obligated to repay $30,000. The lender will earn a profit of $10,000, meaning the MCA has a 50% fee.

Cash Advance

Factor Rate

Repayment Amount

Overall Fees

$20,000

1.5

$30,000

$10,000 (50%)

Note that the total repayment amount can be higher after including administrative and underwriting fees.

Holdback Rate

There are two main ways of repaying an MCA. They include:

  • Credit card sales percentage: This involves automatic deductions of a predetermined percentage of your daily debit and credit card sales
  • Fixed bank withdrawals: This option involves the lender withdrawing a fixed amount daily or weekly from your business bank account. Click here to learn how to open a bank account with EIN only.

The agreed-upon percentage that a lender will deduct from your daily or weekly debit and credit card sales is known as the holdback rate. It could range between 5% and 20% depending on the MCA repayment period you choose.

The holdback rate is responsible for MCAs lacking a true annual percentage rate. Lenders deduct varying amounts daily or weekly, depending on your sales volume. If your revenue increases, your effective APR increases. Fortunately, even if your lender deducts a higher amount of money during your heydays, the total repayment amount remains constant.

Steps for Applying for a Merchant Cash Advance

Most businesses are eligible for MCAs as long as they accept credit and debit card payments. A lack of good credit, years of operation, or high-value assets will often not exclude you from qualifying. It only takes a few minutes to apply for this alternative financing solution, and most providers offer relatively quick turnaround times. Here are five steps to applying for a merchant cash advance.

Step 1: Do Your Research

It is crucial to compare the fees and factor rates of different merchant cash advance providers. Some popular options include Lendio, Rapid Finance, CAN Capital, and Square Capital. Make sure you go through their eligibility requirements and ensure there is a reasonable likelihood of your application being approved.

Step 2: Set Up Credit Card Processing

Having your credit card processing approved is crucial to enhance your chances of receiving a merchant cash advance. Your lender will automatically deduct payments through your credit card processor.

If you are already working with a specific company, find out whether it has a working relationship with merchant cash advance lenders who interest you. It is also perfectly okay to jump straight to the next step and switch to a credit card processor accepted by your lender once your advance is approved.

Step 3: Apply for the Advance

MCA lenders typically operate online, and you can quickly obtain their application forms. You will be required to fill in basic information such as your Social Security Number, EIN (employer identification number), and type of business.

Step 4: Submit the Required Paperwork

The next step is to submit paperwork that supports your request for a cash advance. Apart from documents showing your business structure, you will also need to provide credit card processing statements and your bank account statements.

It’s relatively easy to obtain your financial statements if you have an online business checking account. Depending on the lender you choose, you also need documents that project your annual business income and the estimated income growth in the next 12 months. The idea is to be transparent about your sales and cash flow This allows a lender to evaluate the risk of lending to you.

Step 4: Get Your MCA Approved

MCA lenders differ in their style of operation. While some can have your advance approved in a few hours, others can take between 24 and 72 hours to deposit the money into your account. Often, businesses with online accounts can access their money faster. Click here to learn how to open a fee-free business banking account.

Step 5: Review the MCA Contract

Once a lender approves your merchant cash advance, you will receive a finalized financing contract. You must review all the details, including the penalties that apply if you default. Do not hesitate to ask questions if you find the contract confusing or need clarity on any information.

If everything checks out, it’s time to sign on the dotted line and receive an upfront lump sum. Your lender will deposit the advance into your small business bank account, where the agreed daily deductions will take place automatically.

What if You Want to Get Out of the MCA?

It is vital to make a calculated decision before applying for an MCA. In case you find yourself struggling to repay the debt, here are a few things you could do.

  • Consider credit unions for business banking accounts. Apply for a loan with more favorable repayment terms and pay off the merchant cash advance
  • If you don’t qualify for bad credit business loans from other lenders, negotiate with your MCA lender to settle the debt. Note: It may be imperative to work with a skilled attorney
  • As a last resort, you can file for bankruptcy. An MCA is an unsecured loan that could be erased through bankruptcy (consult with an attorney before attempting this approach)

Frequently Asked Questions (FAQs) for Merchant cash Advance

It is imperative to be an informed consumer before applying for a merchant cash advance. Here are answers to some frequently asked questions.

Final Thoughts on Merchant Cash Advance

A merchant cash advance offers an excellent short-term financing alternative ideal for small business owners. The lender provides a cash advance and sets repayment terms based on how much your business makes on average each day. The arrangement generally involves buying your future sales at discounted rates. If an MCA is your best bet, beware of the recurring fees to ensure you don’t fall into a devastating cycle of debts.