Best Bad Credit Loans

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Having a bad credit score can seem like the end of the world, especially if you need some help with a big upcoming purchase.

Although it can seem counterproductive to get a loan if you already have bad credit, loans can improve your credit score, help you to consolidate debt, and diversify your credit mix. As long as you’re confident that you’ll be able to meet your payment obligations, taking out a loan can be a smart move, even for somebody with bad credit.

Today’s Best Personal Loan Interest Rates

Here are some of today’s best personal loan interest rates:

There are a few things to be aware of, like making sure you’re dealing with a genuine provider who is offering fair terms. It’s well-known that those looking for bad credit loans are a vulnerable market, so there are plenty of scam websites and predatory lenders out there.

8 Best Lenders For Bad Credit Loans

Here are the best loans for people with bad credit (credit score less than 670): is one of the largest networks of online lenders; it aims to match borrowers with lenders looking for people like them to avoid you struggling with needless rejections.

It offers peer-to-peer loans, personal installment loans, and personal bank loans.

You can borrow between $5,000 and $50,000 for a term of up to 72 months. The APR you’ll be charged depends on the lender you’re matched with, but they range from 5.99% to 35.99%.


  • No fees for connection service
  • More likely to be accepted
  • You can receive the funds the next day


  • Unclear terms
  • May be extra fees depending on the lender


  • Minimum credit score: 580 for installment loans


Another peer-to-peer lender is Prosper. Reasonably high credit history is necessary to achieve approval with this provider, but it can be suitable for those who are on the borderline between below-average and average credit.

Prosper offers a wide range of loans: debt consolidation loans, personal loans, and home improvement lines of credit (which use the equity you’ve built up to simplify expenses).

You can borrow from $2,000 up to $40,000 on three- or five-year terms at an APR of 7.95% to 35.99%. There are fees for origination (2.41%-5%), late payments ($15 or 5% of the unpaid amount), and insufficient funds ($15) – but none for prepayment.


  • Fast funding (within five days)
  • No prepayment fee


  • Origination and late fees
  • No direct payoff to creditors for debt consolidation loans


  • Minimum credit score: 640 (average is 710)
  • Minimum credit history: two years (but the average is eleven)
  • Minimum annual income: none (but the average is $89,000)
  • Maximum debt-to-income ratio: 50%


With a minimum credit score of only 580, Avant personal loans are suitable for a wide variety of people. A huge advantage is access to customer support in whichever medium suits you best – phone, email, or messaging services.

Loan values are between $2,000 and $35,000 with an APR between 9.95% and 35.99%, with a term length of 24 or 60 months.

You’ll have to pay an origination fee of 0.95% to 4.75%, but there are no additional hidden fees.


  • Access to customer support seven days a week
  • Receive funds fast
  • A+ rating from Better Business Bureau


  • Administration fee
  • Not available to residents from Colorado, Iowa, Vermont, and West Virginia


  • Minimum credit score: 580 (but the average is 600+)
  • Minimum salary: none (but the average is $60,000)

OneMain Financial

OneMain Financial is a trusted lender that has been around for over 100 years and specializes in personal loans for people with bad credit.

However, you may be asked to give collateral if you have a poor credit score and want a higher loan value – this could be a car, truck, or motorcycle.

You can borrow between $1,500 and $20,000 at an APR between 18.00% and 35.99%. The term lengths can be 12, 36, 48, or 60 months. As well as credit score, OneMain takes into account your income, expenses, other financial obligations, and collateral.

You can also receive personalized service in 1,600 locations in-person if you so wish. To be approved, your state of residence, whether you’ve filed for bankruptcy, income, and expenses, loan purpose, credit history, and financial history will all be considered.


  • You can receive your money on the same day
  • A+ rating from Better Business Bureau
  • Co-signing option


  • Have to go to a branch to get your loan approved
  • Might be offered a secured loan
  • Only have branches in 44 states


If your credit score is below average and you’d like some help to build it up, Upgrade could be the one for you – it provides credit-building tools alongside its loans, including credit monitoring and educational resources.

Upgrade offers loans between $1,000 and $35,000 at an APR of between 7.99% and 35.97%. Term lengths can be three or five years. Unfortunately, there are origination fees of 2.9% to 8% of the original amount, plus a late fee of $10.


  • Receive funds quickly (within one day)
  • Credit-building tools


  • Fees for late payment and origination
  • Not available in all states (excludes Iowa, Vermont, and West Virginia)


  • Minimum credit score: 620
  • Minimum salary: none (but the average is $30,000)
  • Minimum monthly cash flow: $800


Upstart loans aren’t suitable for people with the worst credit score, but they’re a great option for anyone who finds themselves with a score below average.

They offer general personal loans, as well as loans for more specific purposes: debt consolidation, credit card consolidation, home improvement loans, medical loans, wedding loans, and moving loans.  Qualified applicants could benefit from Upstart in reducing high-interest debt. They also boast that their borrowers save 23% compared to credit card rates.

You can receive from $1,000 to $50,000 at an APR ranging from 6.46% to 35.99% on three- or five-year terms.  As well as having a minimum credit score requirement, Upstart takes into consideration your education, area of study, and job history.


  • Fast funding – can receive the money within a day
  • Accepts borrowers new to credit
  • Low minimum APR
  • Take into account factors other than credit score


  • Origination and late fees
  • No secured or co-signed option


  • Minimum credit score: 600
  • Minimum credit history: none
  • Minimum annual income: $12,000

Lending Club

Lending Club is an established online lender that has been around for over ten years. It’s a marketplace (or peer-to-peer) lender, which means it connects borrowers directly with lenders hoping to make a good return from offering loans. You can choose between personal loans, business loans, auto refinancing, and patient solutions to work with doctors or dentists for payment plans.

Because Lending Club is a lending marketplace, there’s an option to pay your lender directly and receive a hardship plan. This makes the loan more flexible and can make payments more manageable.

You can have a loan term of either 36 or 60 months, and you can borrow from $1,000 up to $40,000. The APR ranges from 6.95% up to 35.89%, and you also need to pay an origination fee from 1% to 6%.

If you have a low credit score but manage to secure a co-signer with a better score, your requirements could drop to a 35% debt-to-income ratio and 540 credit score. You’ll receive your funds within four days.


  • Cosigning option
  • Flexibility – can pay the lender directly and receive a hardship plan


  • Origination fees
  • High Interest Rates


  • Minimum credit score: 600 (or 540 if you use cosigning)
  • Maximum debt-to-income ratio: 40% (or 35% with a cosigner)


It can be tough to find a loan if you’ve filed for bankruptcy recently, but LendingPoint is one of the few companies to accept people in this situation. It takes a variety of contextual factors into consideration, such as job history, income, and whether your credit behavior is improving.

Their APR is higher than average – between 9.99% and 35.99% – but for those with a very poor credit history, there are limited options available. Loan values are between $2,000 and $25,000, with a term length between two and four years.


  • Option to pay twice a month
  • Accepts customers who have filed for bankruptcy


  • High APR


  • Minimum credit score: 585
  • Minimum salary: $20,000

Best Bad Credit Loan Summary

Lender Best For Min. Credit Score APR Range Loan Amount Best overall 580 5.99% – 35.99% $5,000 – $50,000
Prosper Best peer-to-peer lending Not specified 7.95% – 35.99% $2,000 – $40,000
Avant Best unsecured 580 9.95% – 35.99% $2,000 – $35,000
OneMain Financial Best secured Not specified 18.00% – 35.99% $1,500 – $20,000
Upgrade Best credit building 620 7.99% – 35.97% $1,000 – $35,000
Upstart Best fast funding 600 8.13% – 35.99% $1,000 – $50,000
LendingPoint Best flexible repayment 585 9.99% – 35.99% $2,000 – $25,000
LendingClub Best p2p lending alternate 540 6.95% – 35.89% $1,000 – $40,000

Can I Get A Loan with Bad Credit?

Having a low score won’t shut you out of the loan market entirely – it just means you’ll face higher interest rates and a higher possibility of rejection.

Most of the time, all it takes to receive a loan is an easy online application, but having a bad credit score can make the process more complex.

If you have bad credit, you’re not the only one – around 30% of Americans are in this group.

This market is too large for loan companies to ignore.

Can I Get A Loan With Very Bad (Poor) Credit?

Various lenders are willing to give personal loans to clients with credit scores as low as 550. In fact, many providers don’t even have a minimum credit requirement at all.

The following companies all consider applicants with very bad credit:

  • BadCreditLoans
  • OppLoans
  • NetCredit
  • OneMain

However, the bad news is that a lower credit score means you’ll be paying a higher interest, and most of the bad credit specialists charge fees too. Best For Very Bad Credit

It’s clear from the name what specializes in. The site has been around since 1998 and is a leading name in the subprime sector. They connect borrowers with lenders rather than dictating loans themselves.

You can receive a loan between $500 and $5,000 at an APR from 5.99% to 35.99% for a term of 3 to 60 months. Instead of asking for a specific credit history or collateral, a steady income and checking account is all you need to achieve approval.


  • Regulated Income: Must have a regular income
    (including disability and social security benefits)
  • Checking Account: Must have an active checking account
  • Credit History: None required

What is considered bad credit?

Credit scores can range anywhere between 300 and 850. The exact definition of ‘bad credit’ differs depending on who you ask, and each credit agency has a different scoring system. We are going to focus on the FICO credit score scale since this is the de facto standard for lenders.

Score Range Rating
800+ Excellent Credit
740-799 Very Good Credit
670-739 Good Credit
580-669 Fair Credit
<580 Poor Credit

Borrowers with a FICO score in the “Fair” and “Poor” range are typically considered to have a bad credit score and are statistically the most at-risk to default on their loan.

Don’t know what your credit score is? Check your credit report for free with Credit Sesame or get your official FICO score at

How To Get a Loan with Bad Credit

A credit score is made up of payment history (whether you pay bills on time), credit utilization (the amount of available credit you use), credit history (how long your accounts have been open), the types of credit used (credit cards, loans and/or accounts), and new credit (recently opened accounts). However, many bad credit lenders will consider other factors, such as education history or yearly salary.

As well as seeking out bad credit lenders who consider additional factors, you can sometimes boost your chances by getting a cosigner: somebody who will agree to pay off the debt if you don’t make payments. Having a cosigner with a good credit score can lower the credit requirements for a loan.

You may need to take out a secured loan, which means you’ll need to offer the lender collateral they can use in case you don’t make your payments – for example, a car. Since you’ll need to verify that you own collateral, this can draw out the process.

Some bad credit providers and credit unions also prefer to speak to customers face to face before offering them a loan.

Since rejection rates are higher for people with bad credit, you also need to make use of the ‘soft pull’ credit checkers most providers offer; unlike the ‘hard pull’ that results from making a formal application, these won’t harm your credit score.

Read our tips on how to improve you credit score and achieve lower interest rates.

People with Poor Credit Can Get a Loan

Whether you choose to go to an online lender, peer-to-peer marketplace, local credit union or bank, there are various options out there for people with poor credit scores to secure a loan.

If you do go ahead with applying for a bad credit loan, use the opportunity to rebuild your credit score – this means it’s of key importance for you to meet all your payments. Improving your credit score ensures you can secure a loan with better terms in the future.

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