The best places to get a bad credit loan in August 2022

Have bad credit but need a loan? Check out our picks for the best bad credit loans of August 2022

Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as "Credible" below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.

If you don’t have the best credit, bad credit loans should be on your radar. Learn where to get them and how to apply. (Shutterstock)

If you don’t have the best credit but need a loan, you have options. Some lenders specialize in working with bad credit borrowers, and they may look beyond your credit score to offer you the funds you need to cover just about any expense. 

Here’s what you need to know about bad credit loans

Where to get bad credit loans

You may be able to get a bad credit loan through an online lender, bank, or credit union. But you’ll likely have to settle for a higher interest rate that increases the loan’s overall cost. This is because lenders reserve the lowest rates for borrowers with good credit, as they’re considered less risky and more likely to repay what they borrow. 

Online lenders

Online lenders let you apply for a loan and receive funding online without ever setting foot into a brick-and-mortar location. Fortunately, many online lenders offer bad credit loans. Some even offer no-credit-check loans.

Depending on the lender, you may be able to prequalify and check your loan offers online without affecting your credit score. If you find an offer you like, you can complete the formal application from the comfort of your own home, often within minutes.

If you’re approved, you might receive your funds via direct deposit as soon as the same day, within 24 hours, or in a few business days. While bad credit loans from online lenders are fast and convenient, they lack the individualized service you may get from an in-person lender, like a bank or credit union. 

Credible makes it easy to compare personal rates from various lenders, all in one place.

Banks and credit unions

Banks and credit unions offer a variety of financial products and may extend bad credit loans to their current customers and members. Many institutions give you the option of an online or in-person application process. If you’re approved, you can expect your funds within a few business days or a week (though funding could take longer in some cases).

While banks and credit unions are typically slower with loan approvals and funding than online lenders, they’re known for personal service. If you already use a bank or belong to a credit union, you might find it convenient to turn to them for a bad credit loan. Many banks and credit unions offer interest rate discounts for being an existing customer.

You may also benefit from a bad credit loan from a bank or credit union if you prefer to apply for and manage your loan in person at a local branch. This is particularly true if you don’t want to submit your personal information online.

How can you get a bad credit personal loan?

Follow these steps to get a bad credit personal loan:

  • Check your credit. Before you apply for a bad credit personal loan, review your credit. You can request copies of your credit reports from the three main credit bureaus for free by visiting If you find any errors, dispute them with the appropriate credit bureau to potentially boost your score.
  • Make sure you can repay the loan. You don’t want to end up with a bad credit loan that you can’t pay back. Before you apply, consider your budget and finances to determine whether you’ll be able to make the monthly loan payments.
  • Compare lenders and choose a loan option. Shop around and explore bad credit loans from banks, credit unions, and online lenders. To choose the right loan for your situation, compare interest rates, repayment terms, and fees.
  • Apply. Once you’ve picked a lender, it’s time to fill out a formal application online or in person. Be prepared to share basic information about yourself and submit documents, like bank statements, pay stubs, and tax forms.
  • Get your funds. If you’re approved, the lender will have you sign a loan agreement so it can disperse the funds. You’ll then start making your loan payments as outlined in your loan agreement.

If you’re ready to apply for a personal loan, head to Credible to quickly and easily see your prequalified personal loan rates.