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If you have bad credit, you may think itโs impossible to get a personal loan. Fortunately, that isnโt always the case. There are plenty of financial institutions willing to work with borrowers who have poor credit scores, but itโs important to do your research to determine the best loan for you.
Find out about the best personal loans for bad credit, how to choose a loan, the types of personal loans for bad credit, and how to avoid scams.
Financial institution | Best for | Loan amount | APR | Loan term | Credit score required |
---|---|---|---|---|---|
Flexible payments | $1,500 to $20,000 | 18.00% to 35.99% | 2 to 5 years | Not specified | |
Welcome bonus | $1,000 to $50,000 | 8.49% to 35.99% | 2 to 7 years | 560 credit score | |
Short credit histories | $1,000 to $50,000 | 6.70% to 35.99% | 3 or 5 years | 300 credit score | |
Mobile app | $2,000 to $36,500 | 7.99% to 35.99% | 2 to 6 years | 600 credit score | |
Low APR | $2,500 to $40,000 | 6.99% to 24.99% | 3 to 7 years | 660 credit score | |
Secured loans | $2,000 to $50,000 | 8.99% to 35.99% | 3 to 7 years | 600 credit score | |
Low fees | $5,000 to $40,000 | 11.25% to 24.50% | 2 to 5 years | 640 credit score | |
Quick funding | $2,000 to $35,000 | 9.95% to 35.99% | 1 to 5 years | 580 credit score | |
Small loans | $600 to $50,000 | 7.74% to 17.99% | 1 to 5 years | 650 credit score | |
Large loans | $5,000 to $100,000 | 7.99% to 24.99% | 2 to 12 years | 660 credit score | |
Joint personal loans | $1,000 to $40,000 | 9.57% to 36.00% | 3 to 5 years | 600 credit score |
Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral) and your state of residence. If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visitย omf.com/loanfeesย for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPBโs Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes*:ย Alabama:ย $2,100.ย Califoโrnia:ย $3,000.ย Georgia:ย $3,100.โย North Dakota:ย $2,000.ย Ohio:ย $2,000.ย โVirginia:ย $2,600.*
Borrowers in these states are subject to these maximum loan sizes:ย North Carolina:ย $9,000 for unsecured loans to all customers, $9,000 for secured loans to present customers.ย Maine: $7,000.ย Mississippi:ย $12,000.ย โWest Virginia: $14,000. Loans to purchase a motor vehicle or powersports equipment from select Maine, Mississippi, and North Carolina dealerships are not subject to these maximum loan sizes.
Example Loan:ย A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
Time to Fund Loans:ย Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.
OneMain Financial doesnโt disclose its minimum credit score requirements but claims to approve applicants with bad or fair credit scores, typically below 580. One of the biggest draws of OneMain Financial is the ability to change your payment due date once a year up to a maximum of two times over the life of the loan. This makes OneMain Financial a flexible choice if your circumstances change and the original due date no longer works for you. OneMain approves loans between $1,500 and $20,000 with an annual percentage yield (APR) range of 18.00% to 35.99%. Loan terms range from two years to five years.
When you take out a personal loan with Upgrade, youโll be eligible for a $200 bonus if you open a Rewards Checking account at the same time and make three debit card transactions. This bonus makes Upgrade a good option if youโre considering opening a new checking account. An Upgrade personal loan has an APR between 8.49% and 35.99%, and loan terms range from two years to seven years. Upgrade also has a relatively wide borrowing range of $1,000 to $50,000.
Getting a loan without a lengthy credit history can seem impossible, but Upstart offers personal loans for customers with credit scores as low as 300, which could be ideal for younger borrowers just starting out. Upstart offers loan terms of three and five years and you can borrow between $1,000 and $50,000. The loans have fixed interest rates between 6.70% and 35.99%, and thereโs no prepayment penalty if you pay your loan balance off before the end of the term.
When you take out a loan with Lending Point, youโll get access to its mobile app, which can help you manage your finances more easily and lead to an improved credit score. Using the app, you can apply for a loan, keep tabs on your credit score, track your spending, and see how your finances measure up to your peers. You can borrow anywhere from $2,000 to $36,500 over two to six years with an APR of between 7.99% and 35.99%.
Discoverยฎ is so confident that its rates are the best (6.99% to 24.99% APR) that it offers a 30-day money-back guarantee on its personal loans. If you find a lower rate with another lender within 30 days of your Discover loan approval, you can return the money interest-free. This can help assure you that the APR youโre getting is among the lowest out there, which will decrease your long-term borrowing costs. Loan terms range between three and seven years, and you can borrow as little as $2,500 or as much as $40,000.
If you own your home, you could get a lower APR by choosing a secured loan from Best Egg. The secured loan uses collateral in the form of fixtures attached to the home, such as light fixtures, built-in shelving and cabinets, and bathroom vanities. If you default on your loan, Best Egg can reclaim its investment by seizing these fixtures, which in turn allows the financial institution to offer a lower interest rate since itโs a lower-risk loan. The APR on a Best Egg secured loan ranges from 8.99% to 35.99%, and you can borrow between $2,000 and $50,000 for a term of up to seven years.
Happy Money is transparent about its feesโor lack thereof. Although you may need to pay an origination fee (typically between 0% and 5%, depending on the loan amount, loan term, and APR), you wonโt see a single other fee during your loan term. That means there are no fees for applying, late payments, or early payoff, and no annual fees or returned check fees. Happy Moneyโs loans range between two and five years and have an APR range of 11.25% to 24.50%. You can borrow between $5,000 and $40,000 to help pay off debt and improve your overall credit score.
600
When you apply for a personal loan with Avant, you could receive a decision within minutes and funds can be deposited as soon as the next business day. That makes it an excellent choice if you need money quickly and if up to $35,000, Avantโs maximum loan amount, is sufficient. Interest rates range from 9.95% to 35.99%, and loan terms range between one and five years. You can apply quickly and easily online and, once approved, manage your loan easily through the Avant Credit app.
If you donโt need to borrow thousands of dollars, PenFed Credit Union may be the best option for a personal loanโyou can borrow as little as $600. Membership is required to get a loan from PenFed, but you donโt need to be affiliated with the military and the application process only takes a few minutes. PenFed membership comes with numerous benefits, such as discounts on car rental, tax preparation services, homeowners insurance, and even flowers. A personal loan from PenFed comes with an APR range of 7.74% to 17.99%, and loan terms are between one and five years.
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Lightstream offers a variety of different loan types for anything from debt consolidation to home improvement projects. Depending on the type of loan you take out, your term could be as long as 12 years. Lightstream also offers a high maximum loan amount of $100,000 on some loans, and an APR ranging from 7.99% to 24.49%. In all, Lightstream is a solid choice if youโre looking to fund a large project and want to take your time paying off the loan.
If your income is too low to borrow the amount of money you need, a joint personal loan from Lending Club may be your best option. This type of loan is for two co-borrowers, which can make getting approved easier. With this type of loan, you and your co-borrower are equally responsible for repaying the loan, so if you miss a payment, it will affect both credit scores. Lending Club offers personal loans between $1,000 and $40,000 over three to five years and interest rates fall between 9.57% and 36.00%.
To determine the best bad credit loans, we looked at factors such as APR (the cost to borrow the money), loan terms, and loan amounts. We gave points to financial institutions for having easy application processes and being quick to approve and disburse funds. We also looked for financial institutions with unique features, such as the ability to add a co-borrower to a loan or welcome bonuses for taking out both a loan and a credit card. The financial institutions mentioned here were the ones that stood out to us the most.
Getting a loan can be difficult when you have bad credit, but it isnโt impossible and options do exist. There are several things you can do to compare lenders and find the best personal loan to suit your needs and financial situation.
There are several types of loans you may consider if you have bad credit. Someโfor example, unsecured loansโare harder to be approved for but may offer the best terms. Others, such as payday loans or cash advance loans, are good last-resort options but shouldnโt be your first choice due to their high interest rates.
If a personal loan isnโt in the cards, there are other ways to get extra money to help pay down debt, cover medical bills, fund a home improvement project, or finance other purchases.
Not all lenders are legitimate, and some will target people with bad credit. The last thing you want is to choose a shady lender that will end up making your financial situation worse. The following tips can help you avoid scams and find a trustworthy lender thatโs willing to work with you.
The best bad credit loans can help you cover unexpected bills, pay off debt, or fund an important purchase. Thorough research can help you find the loan that best fits your needs, and prevent you from taking out a scam loan or signing up for an APR that makes repayment impossible.
The exact answer will depend on the lender but, in general, you can expect to pay a high interest rate if you have bad credit. For example, if the APR range is 6.99% to 29.99%, youโll probably pay close to the high end on your loan.
You may be able to find a personal loan with a 500 credit score, but it will be difficult. In general, youโll have more choices if you have a steady income. Itโs riskier for lenders to approve loans for customers with poor credit, so you can expect to pay a higher APR.
This willdepend on the lender. Some lenders may approve loans only up to $2,000 for customers with poor credit scores, while others may approve up to $50,000.
The main risks of a bad credit loan are:
Yes, it is possible to get a personal loan with no credit check. However, you can expect an extremely high interest rateโsometimes in the triple digitsโand itโs likely the loan amount will be relatively small.
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