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Best Bad Credit Loans Of February 2024

  • Upgrade – Best Overall Installment Loan For Bad Credit
  • LendingPoint – Best For Fast Funding & Below-Average Credit
  • Universal Credit – Best For Comparing Multiple Offers
  • Upstart – Best For Quick Approvals
  • Avant – Best For Range Of Repayment Options
  • LendingClub – Best For Online Experience

The above personal loan rates and details are accurate as of February 14, 2024. While we update this information regularly, the annual percentage rates (APRs) and loan details may have changed since the page was last updated. Keep in mind, some lenders make specific rates and terms available only for certain loan purposes. Be sure to confirm available APR ranges and loan details, based on your desired loan purpose, with your lender before applying.

BEST OVERALL INSTALLMENT LOAN FOR BAD CREDIT

Upgrade

Why We Picked It

Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services. Although maximum APRs are on the high end compared to other online lenders, Upgrade makes loans available to those with poor credit history.

Loans amounts, which range from $1,000 to $50,000. Upgrade has two- to seven-year terms  available. Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.

Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.

Pros & Cons

  • Low minimum credit score requirement
  • Borrowers can use loans to cover business expenses
  • Offers direct lender payoff for debt consolidation loans
  • High APR range
  • Charges fees for origination, late payment and insufficient funds

Details

Overview: Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services.

Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.

Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.

Eligibility: 

  • Minimum credit score: 580
  • No minimum income requirement
  • Allows co-applicants

Loan uses:

  • Debt consolidation
  • Home projects
  • Large expenses
  • Business expenses

BEST FOR FAST FUNDING & BELOW-AVERAGE CREDIT

LendingPoint

APR range

7.99% to 35.99%

with autopay

7.99% to 35.99%

with autopay

Why We Picked It

LendingPoint is an online lender based in Atlanta that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it does not offer loans in Nevada and West Virginia. Prospective borrowers in eligible states can apply online and benefit from quick funding.

LendingPoint personal loans range from $2,000 to $36,500; Georgia loans have a minimum loan amount of $3,500. Repayment terms range from 24 to 72 months—or two to six years.

There are two main disadvantages to LendingPoint: high maximum APRs and origination fees. While you can typically avoid high APRs by maintaining a high credit score, LendingPoint origination fees (up to 10%) depend on the state you live in.

Pros & Cons

  • Quick funding
  • Low credit score requirements
  • No prepayment penalty
  • Origination fee up to 10%
  • Co-signers or joint loans not permitted
  • Not available in Nevada and West Virginia

Details

Overview: LendingPoint is an online lender based in Atlanta that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it does not offer loans in Nevada and West Virginia. Prospective borrowers in eligible states can apply online and benefit from quick funding.

There are two main disadvantages to LendingPoint: high maximum APRs and origination fees. While you can typically avoid high APRs by maintaining a good credit score, LendingPoint origination fees (up to 10%) depend on the state you live in.

Eligibility: 

  • Minimum credit score: 600
  • Must live in a state other than Nevada or West Virginia
  • Doesn’t allow co-signers or co-applicants

Loan uses:

  • Debt consolidation
  • Home project
  • Medical expenses

BEST FOR COMPARING MULTIPLE OFFERS

Universal Credit

Why We Picked It

Universal Credit is an online lending platform that offers personal loans between $1,000 to $50,000 through its partners. Repayment terms range from three to seven years.

While Universal Credit makes finding a personal loan accessible even to those with damaged credit, it comes with a few tradeoffs. First, it charges high APRs, well above the most competitive rates seen on our list. Second, Universal Credit charges a 5.25% to 9.99% origination fee on all personal loans. Because this is deducted from your loan proceeds, you’ll need to factor this in when determining your loan amount to ensure you receive the necessary amount after the fact.

Pros & Cons

  • Flexible qualification requirements
  • Next-day funding
  • No prepayment penalty
  • High APRs
  • All personal loans charge a 5.25% to 9.99% origination fee

Details

Overview: Universal Credit is an online lender powered by Upgrade with loans originated by partners Cross River Bank and Blue Ridge Bank. The lender offers its loans in every state except Iowa, West Virginia and Washington, D.C.

Eligibility:

  • Minimum credit score: 580
  • Minimum income requirement: Does not disclose
  • Doesn’t allow co-signers or co-borrowers

Loan uses:

  • Debt consolidation
  • Large expense
  • Home project

BEST FOR QUICK APPROVALS

Upstart

Why We Picked It

Upstart has made a mark on the personal loan space because of its artificial intelligence- and machine learning-based approach to borrower qualification. In fact, Upstart estimates that it has been able to approve 27% more borrowers than possible under a traditional lending model. With competitive APRs, Upstart is not a top lender for borrowers who can qualify for more competitive rates. Even so, the platform’s minimum 300 credit score makes it an accessible option to those with fair credit.

Upstart also offers a pretty flexible range of loan options, with amounts ranging from $1,000 to $50,000 so you don’t have to borrow (or pay interest on) more than you really need. And, while Upstart’s loan cap is lower than some lenders—this is likely to be enough for many prospective borrowers.

Even though Upstarts three-, five-, seven-year loan terms are more restrictive than other lenders, it’s likely to be an acceptable tradeoff for applicants who might not be approved in a more traditional lending environment. Plus, it’s available in every state except West Virginia and Iowa, so it’s as widely available as many other top lenders.

Pros & Cons

  • Accessible to borrowers with fair credit
  • Offers prequalification with a soft credit check
  • Ability to choose a custom payment date
  • Charges an origination fee up to 8% of the loan amount
  • No secured or co-signer option
  • Loans only available for three-, five-, seven-year terms

Details

Overview: Upstart has made a mark on the personal loan space because of its artificial intelligence- and machine learning-based approach to borrower qualification. In fact, Upstart estimates that it has been able to approve 27% more borrowers than possible under a traditional lending model.

Even though Upstart’s three-, five-, seven-year loan terms are more restrictive than other lenders, it’s likely to be an acceptable tradeoff for applicants who might not be approved in a more traditional lending environment. Plus, it’s available in every state except West Virginia and Iowa, so it’s as widely available as many other top lenders.

Eligibility: 

  • Minimum credit score: 300
  • Minimum income requirement: $12,000
  • Doesn’t allow co-signers or co-borrowers

Loan uses:

  • Debt consolidation
  • Medical expenses
  • Educational expenses

BEST FOR A RANGE OF REPAYMENT OPTIONS

Avant

Why We Picked It

Founded in 2012 and based in Chicago, Avant is a consumer lending platform that offers secured and unsecured personal loans through a third-party bank (WebBank). Unsecured loans are available in Washington, D.C. and every state but Hawaii, Iowa, New York, Vermont, West Virginia and Maine. The platform specializes in middle-income borrowers with fair to good credit and only requires a minimum score of 580 to qualify.

Maximum loan amounts are low compared to other lenders, but the low minimum amount and flexible repayment terms (two to five years) make it an accessible option for borrowers. However, as with many loans for subprime borrowers, Avant personal loans come with a price. In addition to charging an administrative fee of up to 4.75% of the loan amount, Avant’s APR range (9.95% to 35.99%) is on the high end for applicants with a good to excellent credit score—and there is no autopay discount. Still, the platform earns top marks for borrowers with less than stellar credit who need quick access to funds.

Pros & Cons

  • Secured and unsecured loan options available
  • Low credit score requirement (580)
  • Loan terms available up to 60 months
  • Charges an upfront administrative fee
  • High starting APR for prime borrowers
  • Co-signers and co-applicants not allowed

Details

Overview: Founded in 2012 and based in Chicago, Avant is a consumer lending platform that offers secured and unsecured personal loans through a third-party bank (WebBank). Unsecured loans are available in Washington, D.C. and every state but Hawaii, Iowa, New York, Vermont, West Virginia and Maine. The platform specializes in middle-income borrowers with fair to good credit and only requires a minimum score of 580 to qualify.

Eligibility: 

  • Minimum credit score: 580
  • Minimum income: $20,000
  • Doesn’t allow co-signers or co-borrowers

Loan uses:

  • Debt consolidation
  • Large expenses
  • Home projects

BEST FOR ONLINE EXPERIENCE

LendingClub

Why We Picked It

LendingClub is a peer-to-peer—or marketplace—lender founded in 2007. As the largest online lending platform for personal loans, LendingClub has worked with over 3 million customers and funded more than $55 billion in loans. It’s also one of the most geographically widespread options, with lending capabilities in every state except Iowa and the U.S. territories.

While LendingClub imposes high APRs and no autopay discount, applicants can choose to borrow between $1,000 to $40,000. This is a higher maximum loan cap than some other lenders. That said, LendingClub’s loan terms are limited to two to five years, which is less flexible than other lenders on our list. Borrowers also are charged an origination fee between 3% to 8% of the total loan amount, which is taken from the loan proceeds at funding.

LendingClub also makes debt consolidation easier by offering a balance transfer loan. With this type of loan, LendingClub offers direct payment to third-party lenders, including over 1,700 creditors. Not only does the platform take care of payments for you, you can choose exactly how much of your new loan amount you want LendingClub to pay toward each creditor.

Pros & Cons

  • Will directly pay off third-party creditors as part of balance transfer loan
  • Co-applicants permitted
  • Available to borrowers with fair to excellent credit
  • Origination and late fees
  • Limited loan term availability
  • High APR range

Details

Overview: LendingClub is a peer-to-peer—or marketplace—lender founded in 2007. As the largest online lending platform for personal loans, LendingClub has worked with over 3 million customers and funded more than $55 billion in loans. It’s also one of the most geographically widespread options, with lending capabilities in every state except Iowa and the U.S. territories.

LendingClub also makes debt consolidation easier by offering a balance transfer loan. With this type of loan, LendingClub offers direct payment to third-party lenders, including over 1,700 creditors. Not only does the platform take care of payments for you, you can choose exactly how much of your new loan amount you want LendingClub to pay toward each creditor.

Eligibility:

  • Minimum credit score: 600
  • Minimum credit history: Three years
  • Allows co-applicants

Loan uses:

  • Debt consolidation
  • Home projects
  • Medical expenses

Tips for Comparing Personal Loans for Bad Credit

Consider these tips when comparing personal loans for bad credit:

  • Compare the top-end range of interest rates. Because interest rates largely depend on your qualifying credit score, you’re likely to land a rate at the top end of the range with bad credit. So, when comparing personal loans for people with bad credit, be sure to compare the maximum rate.
  • If possible, prequalify with a provider. Several providers offer the opportunity to prequalify you for a personal loan. This means you can submit details like your income information, desired loan use and housing situation to learn about potential loan limits, rates and repayment options. Prequalifying also only requires a soft credit check, which doesn’t hurt your credit score, so you can safely find the best rates.
  • Check for additional fees. Some personal loan providers charge no origination fees, late payment fees or prepayment penalties. However, there are some that may charge all or some of these fees. When comparing bad credit personal loans, be sure to look at the fee structure beyond the potential interest rate you can receive.
  • Evaluate the lender’s customer support options. If you’ve found a lender, there’s one more thing to consider before signing the loan agreement. While customer support may not seem like a big deal, it can make a huge difference if you encounter issues with payments or face a financial hardship during your repayment period. Review the lender’s customer service resources and read reviews to make sure it’s a good fit.

The Complete Guide To Bad Credit Loans

What Are Bad Credit Loans?

Some lenders offer bad credit loans for applicants who have had little to no time to build a credit history or who may have experienced some pitfalls. While it can be difficult to get a loan with a credit score below 580, some lenders, including those on this list, are willing to extend funds to applicants with scores between 580 and 600. Minimum credit score requirements tend to vary between lenders, so be sure to check if your score qualifies through your preferred lender.

Bad credit applicants will typically receive high interest rates and lower loan limits due to their credit scores. The lowest rates and most favorable terms are reserved for high-qualified applicants.

Bad Credit Loan Interest Rates 

Lenders calculate interest rates based on a number of variables ranging from your creditworthiness and income to the size of the loan and repayment term. Because your credit score and history play a key role in determining the interest rate you receive, you should not expect the lowest rates on bad credit loans; the lowest rates are typically reserved for highly qualified applicants.

Although interest rates on our list range from about 3% to 36%, it’s more than likely that the interest rate you receive will fall toward the top end of the range with damaged credit. If you want to improve your chances of getting a lower interest rate, take time to boost your credit score before applying.

Bad Credit Loan Fees

Bad credit loans can be a good option when others are out of reach, but they can come with high fees. Before accepting one of these loans, understand the costs so you can manage your debt and make informed financial decisions. Common fees include:

  • Loan origination fees. Origination fees cover the costs of processing a new loan application. They typically range between 1% and 8% of the total loan amount.
  • Late payment fees. Lenders often charge a late fee when loan payments aren’t on time. The amount can vary widely, but it can be $15 to $25 or even 5% of the loan amount.
  • Prepayment penalties. Some lenders charge a fee if the borrower pays off the loan before the term ends. This fee usually is around 2% of the outstanding loan balance.
  • Non-sufficient funds (NSF) fees. If a borrower’s account lacks the funds to cover a payment, the lender may impose an NSF fee. The typical NSF fee ranges from $10 to $35 or more.

These amounts depend on the lender’s policies and the details of the loan agreement. Always read the loan agreement carefully to understand all possible costs associated with your bad credit loan.

What Is a Bad Credit Score?

Based on the FICO credit score range of 300 to 850, a score below 580 is considered to be a bad credit score. Lenders refer to borrowers who fall in this range as subprime borrowers, and those borrowers tend to be riskier. A bad credit score can make it more difficult to qualify for things like a car, a mortgage or a loan for a business, so it should be in your best interest to improve your score before submitting an application.

Bad credit scores are typically a result of poor payment history, high credit usage and/or too many credit applications or hard credit check inquiries. These are some of the most important factors that make up your credit score. If you want to avoid a bad credit score, it’s best to not neglect these areas of your credit profile.

Average Personal Loan Interest Rates by Credit Score

Lenders charge much higher rates if you have bad credit. If you have a low credit score, you can expect to pay around twice as much as someone with excellent credit.

5 Types of Loans for Bad Credit

When it comes to personal loans, there are two types you can apply for: secured and unsecured loans. However, if you’re having trouble qualifying for a personal loan, consider other loans for bad credit.

1. Secured & Unsecured Bad Credit Personal Loans

Traditional personal loans can either be secured or unsecured. Secured loans require you to provide something of value (also known as collateral), such as your car, savings account or home, to back (or secure) the loan. The lender can repossess the collateral if you fall behind on payments or default. This makes them less risky to a lender, which also means they tend to come with more favorable terms, like lower interest rates, and fewer qualification requirements.

Unsecured loans, on the other hand, are the more common of the two and don’t require any collateral. Because these loans don’t require collateral and therefore pose more risk to lenders, they typically come with more qualification requirements and higher interest rates. The loans on this list are all unsecured personal loans.

2. Student Loans for Bad Credit

If you’re trying to cover higher education expenses, a student loan for bad credit is likely the direction you want to look. Although private student loans typically require good credit, borrowers with bad credit can take out federal student loans, which don’t require a credit check. Federal loans also come with the most flexible repayment terms, including forgiveness if you work in public service or choose certain repayment plans.

3. Auto Loans for Bad Credit

An auto loan is a secured loan that uses your car as collateral, which means the lender can repossess your car if you fall behind on payments or default.

Similar to personal loans, auto loan qualification requirements vary for each lender and dealership. While we recommend a minimum credit score of 670 to receive the most favorable terms, you can still qualify for an auto loan with a lower score as long as you meet the debt-to-income (DTI) requirements and bring a larger down payment.

4. Payday Loans for Bad Credit

Payday loans are short-term, small-dollar loans (usually up to $500) that you repay once you receive your next paycheck, typically two to four weeks after you take out the loan. Many lenders don’t require a credit check, which is often enticing for people with bad credit. However, don’t get your hopes up. Payday loans come with a ton of their own risks and sky-high fees. Consider other alternatives first, like personal loans or borrowing money from friends and family.

5. Home Equity Loans & HELOCs for Bad Credit

If you have enough equity in your home—your home’s current market value minus your remaining mortgage balance—you may be able to get a home equity loan or home equity line of credit (HELOC). Both let you draw against your home, which means your home secures the transaction and the lender can repossess it if you fail to repay. However, home equity loans are disbursed as lump-sum amounts while HELOCs limit you to withdraw funds on an as-needed basis.

But it’s unlikely borrowers with bad credit scores can qualify for these loans. Most traditional lenders require minimum scores between 600 and 620. There might be a specialty lender or credit union that will make an exception, but it’s not common. People with scores less than 600 would have to go through hard money lenders, such as private investors or companies, not a bank. While hard money lenders are more flexible, they’re typically a more expensive route.

Where To Get a Loan With Bad Credit

There are many places you can get a bad credit loan, including:

  • Banks. If you have an existing relationship with a traditional bank, check to see if they’ll offer you a personal loan with your current credit score. More often than not, banks have more stringent qualification requirements than online lenders.
  • Online lenders. Online lenders typically have more flexible qualification requirements. However, it’s likely this will come at the expense of higher interest rates for bad-credit borrowers.
  • Credit unions. If you have a credit union in your area or are already a current member, consider the personal loans it offers. Many credit unions also offer special programs for people with bad credit, including payday alternative loans (PALs).

Online Personal Loans for Bad Credit

The unfortunate truth is that if you have bad credit, you may be denied for a loan from many brick-and-mortar banks and lenders. That doesn’t mean it’s not worth getting prequalified with these lenders, but you might have more success with an online personal loan for bad credit.

If you choose to go the online loan route, remember to prequalify with multiple lenders. The more lenders you check your rates with, the better your odds of finding the best loan. Since you have bad credit, this step is especially important, because you’ll likely pay a higher rate anyway. Shopping around is one of the best things you can do to get the lowest rate possible.

In-person Lenders for Bad Credit Loans

Many lenders won’t work with you if you have bad credit. Online lenders often specialize in bad credit loans, but if you need money now, in person, you’re even more limited. Here are a few places you may be able to find bad credit loans in person:

  • Credit unions. Credit unions are community-oriented not-for-profits that are more tolerant of bad credit and offer lower rates, although you may need to meet membership requirements to join.
  • Banks. It can be harder to qualify for a loan with traditional banks, but you may be able to find one in your community that will offer you a loan.
  • Nonprofits. Some local nonprofit organizations offer need-based loans to people with bad credit. You can search for these online or get free help finding these resources, if available, by calling 211 or visiting 211.org.

Many people turn to payday loans, auto title loans and pawn shop loans when they need to borrow cash immediately but don’t qualify for a better loan. However, it’s best to avoid these options because they often charge extraordinarily high rates that can make repayment incredibly difficult.

How to Get a Loan With Bad Credit

Getting a personal loan with a bad credit score is not impossible, but it may require some extra legwork from you. While the process may vary depending on your specific score and lender, here are the general steps you can follow:

  • Check your credit score. Before you start looking for the best lender, it’s crucial to check your credit score online through a credit-providing website or your credit card provider. This will give you an idea of what you can and can’t qualify for. You should also check for any inaccuracies tied to your credit score, like a debt that does not belong to you.
  • Improve your score, if necessary. If you find out your score is too low, take time to improve it before submitting an application. Some quick ways to improve your credit include repaying any outstanding debts and reducing your credit usage.
  • Evaluate your budget. Prior to looking for the right lender, evaluate your budget and understand how much loan you can afford. If you take too big of a loan out, you may find yourself struggling to meet future repayment obligations and damaging your credit even more.
  • Prequalify with multiple lenders. Some lenders offer a prequalificaiton process, which lets you check whether or not you would qualify without a hard credit check and see what terms you’d receive once approved
  • Add a co-signer, if necessary. If you need to boost your application to receive better terms, consider adding a co-signer. A co-signer is a secondary person who agrees to pay back the loan if you fail to do so, which reduces the risk you pose to the lender.
  • Submit your application. Once you’ve found the best lender for your situation, submit an application online or in person. Prepare to provide your personal information, such as your Social Security number (SSN), address and income information.
  • Repay your loan. Once your lender approves your loan and disburses the funds, it’s time to start repaying your loan. Setting up autopay is a surefire way to never miss a payment.


Pro Tip

If you decide to apply for a loan with a co-signer, the ideal co-signer is someone with good credit or a FICO Score of 670 or higher. Having a co-signer with strong credit increases your approval odds and chances of qualifying for a loan with a low-interest rate.

How To Qualify for a Loan With Bad Credit

Getting a loan if you have bad credit isn’t impossible, but it can be more difficult. Here’s what you can do to boost your chances of getting approved:

  1. Check your credit. Check your credit reports and dispute any errors with the credit bureaus. Also, check your credit score to know which lenders could offer you a loan.
  2. Decide if you need the loan now. If you can wait a few weeks or months, you can work to put yourself in a better position to take out a loan. Over that period, you can improve your credit.
  3. Shop for rates and get preapproved. Check with as many lenders as possible to get preapproved for a loan. That will tell you what sort of loan you’ll qualify for and how much it’ll cost you.
  4. Use collateral. Offering collateral, such as a car, jewelry or your savings account balance, can be a good way to boost your odds of approval if your lender accepts it. Be aware, if you default, the lender can take possession of it.
  5. Try credit unions. Many local credit unions offer better approval odds and rates for applicants with bad credit.

How to Identify Bad Credit Loan Scams

Scammers are more likely to target borrowers with bad credit because they know they have limited options. That’s why it’s crucial to protect yourself.

Here are some warning signs of a loan scam:

  • Require you to pay fees before getting the loan
  • Advertisements for “no credit check!” or “bad credit is OK!”
  • Unsolicited phone calls from someone offering you a loan
  • Fees are undisclosed before you apply
  • Lack of reviews available online or reviews that look staged or faked
  • Lender is unable to show you their license
  • Names or correspondence with grammar errors or copied logos, such as “Wells-Fargo” or “WellsFargo” instead of the actual bank “Wells Fargo”

Alternatives to Personal Loans for Bad Credit

If you have poor credit, getting a personal loan can be challenging, and the fees may worsen your financial struggles. That said, there are alternatives to personal loans for bad credit that are worth considering. These options can offer lower rates, better terms or more flexible requirements, making them better suited for borrowers with less-than-ideal credit scores.

Credit Union Loans

Credit unions are member-owned financial institutions that often provide more favorable lending conditions than banks. They’re known for their community-focused approach and can have less-strict qualification requirements for loans. In most cases, you’ll need to be a member before you can take out a credit union loan, and membership can be limited to certain groups.

Secured Loans

A secured loan requires you to provide collateral, such as your home or car, which the lender can seize if you fail to repay the loan. The risk to the lender is lower with secured loans, which can make these loans easier to qualify for. However, the risk for the borrower is higher because failure to repay could result in the loss of the collateral.

Co-Signed Loans

If you have a trusted person with good credit willing to co-sign a loan, this can be an effective way to bypass your bad credit. With a co-signed loan, the co-signer is equally responsible for repayment. If you fail to make payments, the co-signer is also liable. This can be a good way to qualify for a loan with better terms, but it puts the co-signer at financial risk.

Methodology

We reviewed 18 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose lenders that have a minimum credit score requirement of 600 or lower and ranked them based on the weighting assigned to each category:

  • Loan details: 20%
  • Loan cost: 25%
  • Eligibility and accessibility: 30%
  • Customer experience: 15%
  • Application process: 10%

Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.

Frequently Asked Questions (FAQs)

Can you get a personal loan with a credit score of 550?

There aren’t many lenders that accept applications from borrowers with credit scores of 550. However, there are lenders who allow for a co-signer—someone who agrees to repay the loan if the primary borrower cannot—which can help you qualify for a loan with a score of 550. If you know you have damaged credit, look to improve your credit before applying for a personal loan.

How much money can you borrow with bad credit?

A lender typically determines your loan limit based on your creditworthiness and income. The largest limits are reserved for high-qualified borrowers. If you have bad credit, you can expect to receive near the minimum loan limit your lender offers. If you need to borrow more money, consider improving your credit score prior to applying.

How do you fix bad credit to get a better loan?

If you know you have bad credit and are preparing to apply for a loan, take time to improve your credit score. Some common ways to do that include paying off your existing debts, reducing your overall credit usage, disputing any errors on your credit report and reducing the number of new credit applications made in a short period of time.

Can you get a loan with no credit check?

While most loans require a credit check, there are some loans that don’t. Instead, lenders qualify applications based on the applicant’s ability to repay the loan. Lenders will likely also require collateral—a personal asset used to secure a loan and one the lender can repossess if the repayment terms are not met. You can get no-credit-check loans through payday loan stores, auto title lenders, online lenders and pawn shops.

Which loan company is best for bad credit?

According to our evaluation of 18 popular lenders, Upgrade offers the best personal loans for bad credit. It requires a minimum credit score of 580, giving those with bad credit an opportunity to secure the financing they need. Interest rates range from 7.99% to 35.97%, and with bad credit, you’ll likely land near the maximum interest rate.

Is there risk in bad credit loans?

Whenever you get a bad credit personal loan, you take on some level of risk. While most personal loans are unsecured, meaning you don’t need to provide collateral to secure the loan (and therefore avoid losing a personal asset if fail to meet the repayment terms), you still risk damaging your credit score if you don’t keep up with your monthly payments.

What is the easiest type of loan to get with bad credit?

The easiest types of loans to get with bad credit are typically no-credit-check loans, including payday, title and pawnshop loans. However, these debts come with excessive fees, and we recommend avoiding them. Instead, lean into personal loans for bad credit, like those on this list. Some lenders make loans available to applicants with credit scores as low as 550.

Next Up In Personal Loans



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