Does having bad credit mean you are completely shut out from loans? In fact, even with overdue records, multiple online loans, and excessive credit inquiries, there are still legitimate channels to meet your funding needs. This article unveils legal loan options available for those with poor credit, including special bank products, licensed financial institutions, and secured loan plans. It also offers credit repair tips, pitfalls to avoid, and interest rate comparisons to help you quickly access emergency funds.
1. Five Legitimate Loan Channels for Those with Poor Credit
1. Banks’ Special Loans for “Imperfect Credit” Customers
| Bank | Product | Credit Acceptance | Interest Rate | Disbursement Speed |
|---|---|---|---|---|
| Ping An Bank | XinYi Loan | Fewer than 6 overdue records in last 2 years | 8%-12% | 1-3 working days |
| China Everbright Bank | KuangSu Loan | No current overdue | 7%-10% | Same day disbursement |
| China Minsheng Bank | MinYi Loan | Less than 5 online loan accounts | 9%-15% | 2 working days |
✅ Advantages: Interest rates lower than market average
⚠️ Note: Requires supporting documents like social security or housing fund statements
2. Licensed Consumer Finance Companies
| Institution | Product | Credit Requirements | Features |
|---|---|---|---|
| Mashang Consumer Finance | AnYi Hua | Accepts mild current overdue | Revolving credit limits |
| Bank of China Consumer Finance | XinYi Loan | No limit on number of online loans | Bank-backed, stable disbursement |
| Zhaolian Finance | Haoqi Loan | Accepts serious overdue from over 2 years ago | Applications via Alipay/WeChat |
Disbursement Time: 30 minutes to 2 hours
Interest Rates: 12%-24% per annum
3. Secured Loans (More Lenient Credit Requirements)
| Collateral | Loan-to-Value Ratio | Credit Acceptance | Disbursement Time |
|---|---|---|---|
| Second Mortgage on Property | 60% of appraised value | Accepts current overdue | 3-7 working days |
| Vehicle Pledge | 70% of appraised value | No credit check | Within 1 hour |
| Insurance Policy Loan | 80% of cash value | Only policy validity required | Real-time disbursement |
Applicable Scenario: Need over 50,000 RMB and own collateral assets
4. Loans Guaranteed by Family or Friends
- Bank Channels: CCB, Agricultural Bank of China and others offer “guaranteed loans” (interest rates 5%-8%)
- Requirements: Guarantor must have good credit and stable income
5. Emergency Loans from Local Rural Commercial Banks
- Special Products:
Zhejiang Rural Credit “Family Loan” (with family credit support)
Jiangsu Rural Commercial Bank “Sunshine Easy Loan” (village committee recommendation possible) - Interest Rates: 8%-15%
- Suitable For: Rural household registration or local property owners
2. Four Key Tips to Get Approved with Poor Credit
1. Basic Credit Repair Plan
| Issue Type | Solution | Effective Time |
|---|---|---|
| Current Overdue | Settle debt immediately + obtain “Non-Malicious Overdue Proof” | After 1 month |
| Excessive Credit Inquiries | Stop applying for loans for 3-6 months | After 3 months |
| Multiple Online Loan Accounts | Clear small accounts (keep 1-2) | After 1 month |
2. Prepare Supporting Documents
- Mandatory: 6 months bank statements (showing stable income)
- Bonus:
Property deed/vehicle registration (proof of assets without pledge)
Employment contract + social insurance records
3. Choose Application Channels
- Priority:
1️⃣ Rural/City Commercial Banks → 2️⃣ Licensed Consumer Finance → 3️⃣ Compliant Online Loans - Avoid: Small loan companies without lending qualifications
4. Optimize Debt Structure
- Credit Cards: Pay before billing date to reduce utilization ratio
- Online Loans: Prioritize repayment of platforms that report to credit bureau
3. Beware of Five Major Scams Targeting Borrowers with Poor Credit
1. “Credit Whitening” Scam
❌ Pitch: “Internal channel removes overdue records”
✅ Fact: Credit corrections must go through official dispute procedures
2. AB Loan Scam
❌ Requirement: “Find a guarantor to make fake transactions”
✅ Fact: Actually a loan taken out under someone else’s identity
3. Upfront Fee Trap
Fees named “deposit” or “activation fee”
Legitimate platforms: zero fees before loan disbursement
4. Unlicensed Institutions
Characteristics: No financial license but promise guaranteed approval
Check: Verify qualifications on the official banking regulatory website
5. Predatory High-Interest Cash Loans
Harm: Annual interest rates exceeding 500% plus aggressive collections
Identification: Poorly designed app icons, no customer service phone number
4. Loan Solutions for Different Situations
1. Current Overdue (Need cash within 3 days)
- Solution: Vehicle pledge loan (ignores credit)
- Channels: Local pawnshops or auto finance companies
2. Many Online Loans/Too Many Credit Inquiries (Need under 50,000 RMB)
- First Choice: Zhaolian Finance / Mashang Consumer Finance (revolving credit)
- Alternatives: 360 Jietiao / Du Xiaoman (some products do not check credit)
3. Blacklisted Borrowers (3+ overdue incidents in 2 years)
- Viable Options:
Loans guaranteed by family/friends (bank channels)
Second mortgage on property (available at some institutions)
5. New Credit Repair Policies
- Overdue Records: Automatically removed 5 years after settlement (new credit reporting rules)
- Credit Cards: Single card overdue may not count towards total account number (helps reduce “credit clutter”)
- Disputes: Can apply for notation if overdue was not caused by borrower’s fault
Important Reminder: Due to frequent loan applications causing “excessive inquiries,” some banks now relax the limit to fewer than 8 inquiries within 2 months.