While bad credit can make it harder to get affordable financing, that doesn’t mean you can’t qualify for a bad credit loan. You just need to look for lenders who offer financial products to people in your credit range.
We’ve ranked and rated our partner lenders to help you find the best bad credit personal loans.
Note that we do not recommend any lender offering loans with an APR greater than 36%. Before you turn to these loans, you should see if you can qualify for the lenders on this page, other loans with rates below 36%, or the alternatives described below.
In this guide:
Best Personal Loan Companies For Bad Credit
Personal loan options for bad credit
- Prices from 7.99% APR
- You can check the rates without hurting your credit score
- Quick financing
- Prices from 8.13% APR1
- Low minimum loan amount
- 10-day grace period in the event of late payment
The following are brief reviews of our personal loan partners who offer loans to people with bad credit.
7.99% – 35.97%
$ 1,000 – $ 35,000
Upgrading is a great option for borrowers at the higher end of the bad credit spectrum, as well as those who need smaller loans.
One of the benefits of Upgrade is that you can check your eligibility and pricing without affecting your credit score. Also, eligibility is more based on free cash flow compared to other lenders, so you may get a lower rate with Upgrade compared to other bad credit lenders.
- Soft credit to check rates: Yes
- Filing deadline: The next day
- Original costs: 2.9% – 8%
- Late charge: $ 10
- Repayment Terms : 36 or 60 months
6.27% – 35.99%1
$ 5,000 – $ 30,0002
Upstart is another good option for borrowers with bad credit as they offer competitive rates, a wide range of loan amounts, and financing as fast as a business day.3.
You can check your rates without affecting your credit score4 and use the funds for almost all expenses. Note that the minimum credit score for Upstart varies depending on the state in which you live.
- Pull on soft credit to check rates: Yes
- Filing deadline: As quickly as a working day
- Original costs: 0% – 10%
- Late charge: $ 5 or 15% of payment (whichever is greater)
- Repayment Terms : 36 months or 60 months
>> Read more: How To Get A Loan Without A Credit Check
How we choose the best bad credit loans
To find the best personal loans for bad credit, our editorial team analyzed each of our partner lenders for BBB rating, Trustpilot rating, interest rates, loan amounts, terms, deposit time, fees. set-up, late fees, other fees, initial credit. take advantage of availability, benefits, and more. Learn more about our assessments and methodology here.
If you want to see other options, check out these reviews:
Should You Take A Personal Loan If You Have Bad Credit?
Why do you need it ?
If you have bad credit and are considering a personal loan, the most important thing you can do is figure out why you need the loan. If you are paying off high-interest debt or have an urgent emergency, a personal loan may be a reasonable financing option.
However, because bad credit personal loans often come with extremely high interest rates and fees, the full cost of the loan rarely merits unnecessary shopping. As such, you may want to consider other options before using a personal loan to buy a car, renovate your home, or go on vacation.
Can You First Improve Your Credit Score?
If you have bad credit, it’s not the end of the world. You may still be eligible for loans from some lenders, but you may decide to wait and improve your credit if you are turned down for a loan or want better interest rates.
There are many ways to improve your credit, but not all of them are quick fixes. The best way to improve your credit is to borrow responsibly and pay off your debt over time.
If you can increase your score up to 20 points, you may qualify for different lenders and better rates. This can have a huge impact on the final cost of your loan.
Be prepared to repay if you take out a loan
If you need to take out a personal loan with bad credit, it is imperative that you make sure that your budget can accommodate repayment obligations during the life of the loan.
By making regular payments, you may find that a personal loan can help you build your credit; However, failure to make payments on time can have a negative effect, leaving your score even lower than it was.
>> Read more: Where to find small personal loans
What about payday loans?
While a payday loan may seem like an attractive option for those with bad credit, they are generally one of the most dangerous loan products on the market today.
Payday lenders offer immediate cash in exchange for an automatic payment (by post-dated check or automatic deduction agreement). The repayment however includes the amount of the loan as well as a significant amount of interest, often of the order of 400%.
These loans often make deleveraging even more difficult and can hurt your financial future.
>> Read more: Alternatives to Break the Payday Loan Cycle
Alternatives to personal loans for bad credit
Before you get bad credit, it’s important to determine if there are cheaper alternatives that you can turn to. The main factor in the total cost of your loan (and most financial products) is the interest rate and associated fees.
Here are some guides to other financial products you might want to explore before taking out a bad credit personal loan:
Conclusion: Finding the Right Loan for Bad Credit
While bad credit can make it harder to get a personal loan, it’s not impossible. There are several lenders who specialize in subprime loans and are willing to work with consumers who have poor or no credit.
However, keep in mind that these bad loans usually come with high interest rates and limited terms. As such, it is best to consider the reason for your loan and, if possible, work on improving your credit score before applying.
1 The full range of rates available vary by state. The average 3 year loan offered by all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $ 35 per $ 1,000 borrowed. For example, the total cost of a loan of $ 10,000 would be $ 12,646, including the origination fee of $ 626. The APR is calculated based on the 3-year rates offered in the last month. There is no deposit or early repayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
2 Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be eligible for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $ 7,000. The minimum loan amount in Ohio is $ 6,000. The minimum loan amount in NM is $ 5,100. The minimum loan amount in GA is $ 3,100.
3 If you accept your loan before 5:00 p.m. EST (excluding weekends and holidays), you will receive your funds the next business day. Loans used to finance education related expenses are subject to a 3 business day waiting period between loan acceptance and funding in accordance with federal law.
4 When you check your rate, we check your credit report. This initial (soft) investigation will not affect your credit score. If you accept your rate and proceed with your request, we perform another (hard) credit check which will impact your credit score. If you take out a loan, the repayment information will be communicated to the credit bureaus.