12-Month Payday Loans for People with Bad Credit: Where to Go for Fast Money in a Tough Spot

A payday loan provider is not an ideal source for credit. They come with extremely high interest rates, which the providers call “fees,” and paying them back on time does not help your credit. If you fail to pay them back, they can hurt your credit. But if you have a low income or poor credit or both, turning to 12-month loans direct lenders may be your only option.

Of course, no payday loans are advertised as 12-month loans. The idea of a payday loan is that you provide a post-dated check that will allow the 12-month loans direct lenders to recoup the money plus a fee when you do get paid, presumably within the next two weeks.

That being said, there are instances where people cannot pay the full amount back in time and look for something like 12-month payday loans.

Red Award Emblem for Best 12 Month PayDay Loans For Bad Credit

Award Emblem: Best 12-Month Payday Loans for Bad Credit

In situations like that, borrowers can choose to renew or rollover their payday loan. That means their repayment date is delayed, but they will also have to pay an additional fee. As you can see, taking out 12-month loans with the high interest rate of 12-month payday loans can put borrowers in a very dire financial situation.

Fortunately, recent rule changes have compelled major 12-month payday loans direct lenders to start offering installment loans (like 12-month installment loans) in addition to their lump sum 12-month payday loans.

See Also: Tips for Finding the Best Loan Companies & Best Online Loans This Year

AdvisoryHQ’s List of the Top 4 12-Month Loan Lenders

List is sorted alphabetically (click any of the lender names below to go directly to the detailed review section for that lender):

Top 4 12-Month Payday Loans Direct Lenders | Brief Comparison & Ranking

12-Month Payday Loans Lenders


Can You Apply Online?

Loan Amount

Lending Club



Max $40,000

Loan Now




One Main Financial







Up to $35,000

Table: Top 4 12 Month Loan Direct Lenders | Above list is sorted alphabetically

What Is the Difference between 12-Month Payday Loans and 12-Month Installment Loans?

The debt trap created by payday loans has been a prominent issue in the last couple of years. It’s undisputed that up to 12-month loans in a payday loan system are unsustainable. Recently, regulators have been paying closer attention to the prevalence of payday loans that can go up to 12-month payday loans.

12 month payday loans

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While there is federal oversight, the specifics of payday loans, including 12-month loans, are determined on a state-by-state basis. A recent series of proposals by the Consumer Financial Protection Bureau (CFPB) has challenged the status quo of payday lending and prompted 12-month loans direct lenders to start doing a little due diligence.

While it will take time for these proposals to become legal requirements, the recommendations push for these 12-month loans for bad credit lenders to check that borrowers are able to afford their 12-month loan payments in addition to other necessary living expenses.

The proposed rules would also forbid 12-month loan providers from using auto titles as collateral. They also propose limiting the amount of times that 12-month payday loans direct lenders can debit the account of someone who received 12-month loans for bad credit. If the person who took out the 12-month bad credit loan does not have the money available in their account, they will accumulate expensive bank fees in addition to the principal and interest they already own on their 12-month bad credit loan.

For longer term loans, like the 12-month loans and 12-month payday loans we will be focusing on in this article, the CFPB has suggested two options:

  • an interest rate ceiling of 28% and an application fee of $20
  • installment loans with the total cost of the loan capped at 36 percent

This is designed to help 12-month loans and 12-month payday loans seekers avoid entering a vicious cycle of debt where they keep taking out loans to pay off the fees of their existing loans. This is where something like 12-month installment loans can be very helpful.

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Lending Club Overview

Lending Club is a great place to find 12-month installment loans. Lending Club is a peer-to-peer lending platform. Lending Club does not have to pay for numerous offices and employees, so they can charge lower interest rates. Of course, the interest rate you get on a 12-month loan for bad credit will still not be competitive, but it will be lower than one you get elsewhere or from a 12-month loan direct lender.

Then again, the approval process for Lending Club is a bit stricter than some of the other places on this list to go to for 12-month loans for people with bad credit. But if you are looking for 12-month installment loans, Lending Club has some of the best rates.

The most you can get with Lending Club is about $40,000. Their APR ranges from 5.99% to 35.89%. Naturally, those looking for a 12-month bad credit loan would receive a 12-month loan for bad credit at the higher end of that range.

Securing 12-month loans through Lending Club is a great alternative even for those with fantastic credit, because you are likely to get a much lower APR than you would with your regular consumer credit card. And for those who would normally turn to 12-month payday loans, Lending Club offers the flexibility of an installment loan that can be paid back over time.

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Loan Now Overview

If you do not have a problem with obtaining your 12-month loans via the Internet because you are happy for any alternative to 12-month payday loans, then Loan Now is worth considering.

Since Loan Now is a 12-month loans bad credit direct lender, there is not much waiting involved. Those looking for 12-month loans for bad credit find out if they are approved swiftly and if they are approved, receive their 12-month loans quickly. They have a sophisticated underwriting process that allows them to review a person’s entire application, not just their FICO score, meaning those with a low credit score have a better shot of getting 12-month loans for people with bad credit.

12 month loans direct lenders

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You can also help boost your credit score with Loan Now. When you get 12-month payday loans or any payday loans from a payday lending place, your good behavior is not reported to credit bureaus, but if you don’t make your payments, that history is reported, negatively affecting your credit score.

Loan Now keeps track of your history with them. If you make regular payments on your 12-month installment loans or whichever loans you take out with them, they will report that solid record to the credit reporting agencies, effectively helping you build your credit.

Loan Now also provides a creative alternative to co-signing. Typically, people are hesitant to co-sign a loan, whether it’s a 12-month installment loan or otherwise, because they will be responsible for the person’s entire balance if they default. Additionally, their credit score will be affected if they can’t pay it off for them.

Loan Now offers something called group signing, where multiple members of an applicant’s network—family or friends—can vouch for them and offer to cover a specific portion if the applicant defaults on their 12-month loans, whether a person’s pledge is as little as $25 or as high as $500. This helps those looking for 12-month loans for people with bad credit significantly reduce their interest rate.

That brings us to an important point that we should mention in this overview of Loan Now. Loan Now’s interests rates can range from 29% to 299% APR. Be very mindful of this. If you have a poor credit score, while you may be approved for one of their 12-month installment loans, you may be stuck with a higher APR. See if you can reduce the price of your 12-month loans by using the group signing feature—you don’t want to wind up with 12-month payday loans that simply go by a different name.

One Main Financial Overview

One Main is a brick-and-mortar option for customers who are not entirely comfortable getting their 12-month loans purely from online 12-month payday loans direct lenders. If you are looking for a 12-month loan that is a bit more flexible and accepting, you can find a 12-month bad credit loan from One Main.

One Main considers the applications of people with a FICO score as low as 600, so it is definitely a spot to consider for 12-month loans for people with bad credit. There are loans available for amounts ranging from $1,500 to $25,000. Those looking for a 12-month loan for bad credit can receive an answer within a day, and they also have access to one-on-one support courtesy of One Main’s many branches.

The interest rates offered by this 12-month loan direct lender range from 25% to 36%. These 12-month bad credit loans require no collateral, and customers can also choose to add various insurance products (including unemployment, life, and disability insurance) to their 12-month loan.

Popular Article: Payday Loan Definition  | What Is a Payday Loan? Pros & Cons

PersonalLoans.com Overview

PersonalLoan.com is another spot to check out if you are looking for 12-month bad credit loans. The website’s services are available in all U.S. states, so referrals to 12-month loans bad credit direct lenders can be found in all 50 states using PersonalLoan.com.

PersonalLoans.com gives those looking for a 12-month loan for bad credit access to a quick and easy application process. Keep in mind, however, that PersonalLoans.com is not the source of the 12-month loans bad credit direct lenders itself. Instead, the site helps those looking for 12-month bad credit loans referrals to 12-month loan direct lenders that are best equipped to meet their needs.

The site also makes low fixed rates available to those looking for 12-month loans bad credit direct lenders. It refers those looking for 12-month loans for bad credit to providers who offer up to $35,000. The APRs they offer range from 6.73% to 35.36%. As a result, there are opportunities to be approved for 12-month loans for people with bad credit, albeit with a higher APR.

Using PersonalLoans.com to conduct your 12-month loans research is a great way to save time and energy while shopping around for 12-month loans for bad credit. The site returns searches for three types of loans: bank loans, peer-to-peer loans, and installment loans.

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Conclusion—Top 12-Month Installment Loans

If you are looking for 12-month loans, 12-month payday loans brought about by simply rolling over payday loans are not an ideal solution.

Choosing a 12-month installment loan is usually a better option because you can divide up your outstanding amount and the interest into manageable, fixed payments over a period of time.

This way, you can build your credit, consolidate your debt, and avoid sinking into a deeper financial hole.

AdvisoryHQ (AHQ) Disclaimer:

Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.

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