To get approved for a loan with bad credit, there are a few things you should do first. 1) Know your FICO credit score to identify which lenders are most likely to give you a loan. 2) Be prepared to pay an interest rate north of 30% — 31.39% was the average personal loan rate for Credible users with scores less than 600 on 5-year loans. 3) Strengthen your application by taking steps to improve your credit or income, or to reduce monthly debt payments.
We cover how to get a personal loan with bad credit, starting with a list of the best lenders for bad credit.
Advertiser DisclosureOverview
Upstart often has one of the lowest minimum APRs available, making it a solid choice for borrowers with good credit or better. Applicants with poor, fair, or little to no credit may also be considered, as Upstart has no minimum credit score requirement (if you apply on the lender's website) and may accept applicants without scores. This lender offers loans between $1,000 and $50,000 with either three- or five-year repayment terms. Upstart may be ideal for you if you have good credit and can qualify for a low APR, or if you have bad credit and need a lender to look beyond your score.
In terms of its drawbacks, Upstart charges origination fees up to 12% on some personal loans. It also has a maximum APR of 35.99%, which is around the highest rate you'll find with a reputable lender, with no discounts available. Upstart also has fewer repayment term options than most lenders.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
Avant personal loans are better suited to borrowers with bad credit (a FICO score below 580) than many others because the lender may consider applicants with credit scores in the 500s. Loan amounts up to $35,000 are available, so these loans are on the smaller side. But if this maximum is sufficient, Avant might appeal to you because it offers funding as soon as the next business day after approval and is more likely to approve the applications of prequalified borrowers than other lenders.
That said, Avant’s interest rates are steep, and the lender charges an origination fee up to 9.99%.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Upgrade offers loans from $1,000 to $50,000 and features competitive APRs, discounts for direct payments to creditors and enabling automatic payments, fast funding (as soon as the same day as approval), repayment terms up to seven years, and nationwide availability. Upgrade even offers secured personal loans, which is not common among lenders, and you don't need to input your Social Security number to prequalify on the website.
Upgrade does charge origination fees between 1.85% and 9.99%, however. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
Universal Credit personal loans are ideal for bad-credit borrowers because the lender may consider applicants with credit scores as low as 560. You can apply for loan amounts between $1,000 and $50,000 and may qualify for next-day funding. Because Universal Credit has higher APRs than other lenders, it may be best suited to individuals without the credit and/or income needed to qualify for more competitive rates with other lenders.
You can choose from repayments terms of three, five or seven years. Universal Credit has higher origination fees than many lenders, charging between 5.25% and 9.99% on all personal loans. This lender offers interest rate discounts when you opt for automatic payments or direct payment to creditors (in the case of debt consolidation).
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
For bad-credit personal loans, OneMain Financial is one of the best lenders you can consider. In addition to not setting a minimum credit score for applicants who apply directly through the website, OneMain permits cosigners on applications and offers secured personal loans. Cosigners can help you improve your chances of approval and possibly secure lower APRs. Secured loans require you to pledge collateral when applying and tend to be easier to qualify for than unsecured loans, which typically require higher credit scores and no collateral.
Repayment terms range from two to five years. Personal loan amounts between $1,500 and $20,000 are available, with different minimums and maximums in select states. Also depending on where you live, you’ll pay a flat fee of $25 to $500 or 1% to 10% for origination. You may be eligible for a personal loan with OneMain if you have bad credit (a FICO score of 580 or lower), but the lender’s rates are very high compared to many others.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Overview
Upstart often has one of the lowest minimum APRs available, making it a solid choice for borrowers with good credit or better. Applicants with poor, fair, or little to no credit may also be considered, as Upstart has no minimum credit score requirement (if you apply on the lender's website) and may accept applicants without scores. This lender offers loans between $1,000 and $50,000 with either three- or five-year repayment terms. Upstart may be ideal for you if you have good credit and can qualify for a low APR, or if you have bad credit and need a lender to look beyond your score.
In terms of its drawbacks, Upstart charges origination fees up to 12% on some personal loans. It also has a maximum APR of 35.99%, which is around the highest rate you'll find with a reputable lender, with no discounts available. Upstart also has fewer repayment term options than most lenders.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
Avant personal loans are better suited to borrowers with bad credit (a FICO score below 580) than many others because the lender may consider applicants with credit scores in the 500s. Loan amounts up to $35,000 are available, so these loans are on the smaller side. But if this maximum is sufficient, Avant might appeal to you because it offers funding as soon as the next business day after approval and is more likely to approve the applications of prequalified borrowers than other lenders.
That said, Avant’s interest rates are steep, and the lender charges an origination fee up to 9.99%.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Upgrade offers loans from $1,000 to $50,000 and features competitive APRs, discounts for direct payments to creditors and enabling automatic payments, fast funding (as soon as the same day as approval), repayment terms up to seven years, and nationwide availability. Upgrade even offers secured personal loans, which is not common among lenders, and you don't need to input your Social Security number to prequalify on the website.
Upgrade does charge origination fees between 1.85% and 9.99%, however. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
Universal Credit personal loans are ideal for bad-credit borrowers because the lender may consider applicants with credit scores as low as 560. You can apply for loan amounts between $1,000 and $50,000 and may qualify for next-day funding. Because Universal Credit has higher APRs than other lenders, it may be best suited to individuals without the credit and/or income needed to qualify for more competitive rates with other lenders.
You can choose from repayments terms of three, five or seven years. Universal Credit has higher origination fees than many lenders, charging between 5.25% and 9.99% on all personal loans. This lender offers interest rate discounts when you opt for automatic payments or direct payment to creditors (in the case of debt consolidation).
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
For bad-credit personal loans, OneMain Financial is one of the best lenders you can consider. In addition to not setting a minimum credit score for applicants who apply directly through the website, OneMain permits cosigners on applications and offers secured personal loans. Cosigners can help you improve your chances of approval and possibly secure lower APRs. Secured loans require you to pledge collateral when applying and tend to be easier to qualify for than unsecured loans, which typically require higher credit scores and no collateral.
Repayment terms range from two to five years. Personal loan amounts between $1,500 and $20,000 are available, with different minimums and maximums in select states. Also depending on where you live, you’ll pay a flat fee of $25 to $500 or 1% to 10% for origination. You may be eligible for a personal loan with OneMain if you have bad credit (a FICO score of 580 or lower), but the lender’s rates are very high compared to many others.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Fox Business does not make or arrange loans.
The Fair Isaac Corporation (FICO) has the most commonly used credit scoring model in the U.S. The model rates credit scores under 580 as “poor,” or bad. Since most lenders prefer to lend to borrowers with good credit, it’s important to find a lender that will consider bad-credit borrowers before you apply.
You can see credit score minimums for each lender below, so check your FICO score from the credit bureaus directly, or use a credit score app. (We’ve included a few lenders with credit scores slightly above 580, if you’re on the cusp.)
Loan Amount
$1,000 to $50,000
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Overview
Upgrade offers loans from $1,000 to $50,000 and features competitive APRs, discounts for direct payments to creditors and enabling automatic payments, fast funding (as soon as the same day as approval), repayment terms up to seven years, and nationwide availability. Upgrade even offers secured personal loans, which is not common among lenders, and you don't need to input your Social Security number to prequalify on the website.
Upgrade does charge origination fees between 1.85% and 9.99%, however. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Best debt consolidation loans for bad credit
Loan Amount
$1,000 to $50,000
Borrowers with bad credit considered
No minimum income requirement
Autopay and direct pay discounts available
Can fund in one business day
High APRs
Potentially high origination fees
Not available in Iowa
Overview
Universal Credit personal loans are ideal for bad-credit borrowers because the lender may consider applicants with credit scores as low as 560. You can apply for loan amounts between $1,000 and $50,000 and may qualify for next-day funding. Because Universal Credit has higher APRs than other lenders, it may be best suited to individuals without the credit and/or income needed to qualify for more competitive rates with other lenders.
You can choose from repayments terms of three, five or seven years. Universal Credit has higher origination fees than many lenders, charging between 5.25% and 9.99% on all personal loans. This lender offers interest rate discounts when you opt for automatic payments or direct payment to creditors (in the case of debt consolidation).
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Best for all credit types
Loan Amount
$2,000 to $35,000
Borrowers with bad credit considered
Funds as soon as the next business day
2-year loan terms available
No discounts offered
Origination fee
Not available in HI, WA, IA, MA, ME, NY, VT, or WV
Overview
Avant personal loans are better suited to borrowers with bad credit (a FICO score below 580) than many others because the lender may consider applicants with credit scores in the 500s. Loan amounts up to $35,000 are available, so these loans are on the smaller side. But if this maximum is sufficient, Avant might appeal to you because it offers funding as soon as the next business day after approval and is more likely to approve the applications of prequalified borrowers than other lenders.
That said, Avant’s interest rates are steep, and the lender charges an origination fee up to 9.99%.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Best bad credit personal loans
Loan Amount
$1,500 to $20,000
Min. Credit Score
No minimum
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
Availability
Origination fees
High starting APR
Overview
For bad-credit personal loans, OneMain Financial is one of the best lenders you can consider. In addition to not setting a minimum credit score for applicants who apply directly through the website, OneMain permits cosigners on applications and offers secured personal loans. Cosigners can help you improve your chances of approval and possibly secure lower APRs. Secured loans require you to pledge collateral when applying and tend to be easier to qualify for than unsecured loans, which typically require higher credit scores and no collateral.
Repayment terms range from two to five years. Personal loan amounts between $1,500 and $20,000 are available, with different minimums and maximums in select states. Also depending on where you live, you’ll pay a flat fee of $25 to $500 or 1% to 10% for origination. You may be eligible for a personal loan with OneMain if you have bad credit (a FICO score of 580 or lower), but the lender’s rates are very high compared to many others.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Best fast personal loans for all credit types
Loan Amount
$1,000 to $50,000
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
May charge a high origination fee
No discounts offered
Overview
Upstart often has one of the lowest minimum APRs available, making it a solid choice for borrowers with good credit or better. Applicants with poor, fair, or little to no credit may also be considered, as Upstart has no minimum credit score requirement (if you apply on the lender's website) and may accept applicants without scores. This lender offers loans between $1,000 and $50,000 with either three- or five-year repayment terms. Upstart may be ideal for you if you have good credit and can qualify for a low APR, or if you have bad credit and need a lender to look beyond your score.
In terms of its drawbacks, Upstart charges origination fees up to 12% on some personal loans. It also has a maximum APR of 35.99%, which is around the highest rate you'll find with a reputable lender, with no discounts available. Upstart also has fewer repayment term options than most lenders.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
We evaluated the best personal loans for bad credit based on factors such as minimum credit score requirement, customer experience, maximum APR, maximum loan amount, funding time, loan terms, fees, discounts, whether secured loans are available, and whether cosigners are accepted. Our team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.
Read our full lender rating methodology for more information.
Best for: Bad-credit borrowers with a stable and reliable income, borderline bad credit, or those who have a willing cosigner
A personal loan isn’t the only type of bad-credit loan you can get, but it’s generally the best and first to try for. If you can get a personal loan with bad credit, your rate will generally be capped at 36%, whereas other loan types have annual percentage rates (APRs) that can run into the triple digits.
Personal loans also have much longer repayment terms (up to seven years with many lenders), which makes monthly payments smaller and easier to budget for. Plus, personal loan payments are reported to the credit bureaus, so you can improve your credit score if you make on-time payments.
Since collateral isn’t required, personal loan approvals can be quick, and the money could be in your bank account as soon as the same day or the next business day once you’re approved.
Best for: Borrowers that have an asset, such as a car, savings account, or home equity that they’re willing to pledge as collateral
A secured loan is one that is secured by collateral, such as your car, home, or a savings account. Well-known types of secured loans include mortgages and auto loans, but some lenders offer secured personal loans.
To get a secured loan, you need to pledge an asset as collateral, which means the lender can seize the asset if you default on the loan. Below are a few personal loan lenders that offer secured loans. Note that you’ll still need to meet the minimum credit score requirements to qualify.
Overview
Best Egg ranked second in J.D. Power's Consumer Lending Satisfaction Study, so it should come as no surprise that it’s one of our best picks for a wide range of borrowers. In addition to having relatively low rates and discounts, Best Egg provides loans from $2,000 to $50,000 and may consider applicants with credit scores of at least 600. Terms range from two to five years.
This lender stands out for offering better approval odds for prequalified applicants than many other lenders, according to Credible data. Specifically, prequalified applicants were more than twice as likely to be approved for final loans. Best Egg’s origination fees can reach 9.99%.
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Upgrade offers loans from $1,000 to $50,000 and features competitive APRs, discounts for direct payments to creditors and enabling automatic payments, fast funding (as soon as the same day as approval), repayment terms up to seven years, and nationwide availability. Upgrade even offers secured personal loans, which is not common among lenders, and you don't need to input your Social Security number to prequalify on the website.
Upgrade does charge origination fees between 1.85% and 9.99%, however. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
For bad-credit personal loans, OneMain Financial is one of the best lenders you can consider. In addition to not setting a minimum credit score for applicants who apply directly through the website, OneMain permits cosigners on applications and offers secured personal loans. Cosigners can help you improve your chances of approval and possibly secure lower APRs. Secured loans require you to pledge collateral when applying and tend to be easier to qualify for than unsecured loans, which typically require higher credit scores and no collateral.
Repayment terms range from two to five years. Personal loan amounts between $1,500 and $20,000 are available, with different minimums and maximums in select states. Also depending on where you live, you’ll pay a flat fee of $25 to $500 or 1% to 10% for origination. You may be eligible for a personal loan with OneMain if you have bad credit (a FICO score of 580 or lower), but the lender’s rates are very high compared to many others.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Overview
Best Egg ranked second in J.D. Power's Consumer Lending Satisfaction Study, so it should come as no surprise that it’s one of our best picks for a wide range of borrowers. In addition to having relatively low rates and discounts, Best Egg provides loans from $2,000 to $50,000 and may consider applicants with credit scores of at least 600. Terms range from two to five years.
This lender stands out for offering better approval odds for prequalified applicants than many other lenders, according to Credible data. Specifically, prequalified applicants were more than twice as likely to be approved for final loans. Best Egg’s origination fees can reach 9.99%.
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Upgrade offers loans from $1,000 to $50,000 and features competitive APRs, discounts for direct payments to creditors and enabling automatic payments, fast funding (as soon as the same day as approval), repayment terms up to seven years, and nationwide availability. Upgrade even offers secured personal loans, which is not common among lenders, and you don't need to input your Social Security number to prequalify on the website.
Upgrade does charge origination fees between 1.85% and 9.99%, however. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
For bad-credit personal loans, OneMain Financial is one of the best lenders you can consider. In addition to not setting a minimum credit score for applicants who apply directly through the website, OneMain permits cosigners on applications and offers secured personal loans. Cosigners can help you improve your chances of approval and possibly secure lower APRs. Secured loans require you to pledge collateral when applying and tend to be easier to qualify for than unsecured loans, which typically require higher credit scores and no collateral.
Repayment terms range from two to five years. Personal loan amounts between $1,500 and $20,000 are available, with different minimums and maximums in select states. Also depending on where you live, you’ll pay a flat fee of $25 to $500 or 1% to 10% for origination. You may be eligible for a personal loan with OneMain if you have bad credit (a FICO score of 580 or lower), but the lender’s rates are very high compared to many others.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Fox Business does not make or arrange loans.
Best for: Borrowers that have a family member or friend who’s willing to vouch for them on a loan
A cosigner is someone who promises to make loan payments if you don’t. The lender considers their income, credit score, and current debt (in addition to yours) when deciding whether to approve the loan and set the rate. Unlike a co-borrower, a cosigner doesn’t have access to loan funds, but is on the hook if you miss payments.
This individual is typically someone you have a close and trusted relationship with, like a family member or long-term friend. However, keep in mind that since they’re also liable for the debt, their credit can be adversely affected by nonpayment and late payments.
You can find personal loans with a cosigner from a handful of lenders.
Overview
SoFi’s personal loan rates are competitive, and that’s far from the only feature that makes this lender one of our best picks for borrowers with good credit. It also offers same-day funding, multiple rate discounts, large loans, and a range of terms — plus no mandatory origination fees. You may be able to borrow between $5,000 and $100,000 and repay it in two to seven years with SoFi.
Unfortunately, SoFi doesn’t allow cosigners, so the lender won’t be a good fit for borrowers with fair or poor credit profiles who want to apply with a friend or family member. SoFi does, however, have a convenient prequalification process than can give you an idea of whether you may qualify for a loan. The lender also provides a seamless online experience and has an admirable Trustpilot consumer review rating of 4.5 out of 5 stars.
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Overview
Best Egg ranked second in J.D. Power's Consumer Lending Satisfaction Study, so it should come as no surprise that it’s one of our best picks for a wide range of borrowers. In addition to having relatively low rates and discounts, Best Egg provides loans from $2,000 to $50,000 and may consider applicants with credit scores of at least 600. Terms range from two to five years.
This lender stands out for offering better approval odds for prequalified applicants than many other lenders, according to Credible data. Specifically, prequalified applicants were more than twice as likely to be approved for final loans. Best Egg’s origination fees can reach 9.99%.
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
LendingClub provides personal loans up to $40,000 with repayment terms between two to five years. The company is a strong choice for borrowers with good credit who don’t need funds fast, as LendingClub does not specify funding times on its site.
You can prequalify directly with LendingClub without having to provide your Social Security number, though you will need to provide it if you formally apply. Origination fees may be charged and range from 3% to 8%. LendingClub doesn’t offer discounts for autopay or direct pay.
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
Overview
Avant personal loans are better suited to borrowers with bad credit (a FICO score below 580) than many others because the lender may consider applicants with credit scores in the 500s. Loan amounts up to $35,000 are available, so these loans are on the smaller side. But if this maximum is sufficient, Avant might appeal to you because it offers funding as soon as the next business day after approval and is more likely to approve the applications of prequalified borrowers than other lenders.
That said, Avant’s interest rates are steep, and the lender charges an origination fee up to 9.99%.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Upgrade offers loans from $1,000 to $50,000 and features competitive APRs, discounts for direct payments to creditors and enabling automatic payments, fast funding (as soon as the same day as approval), repayment terms up to seven years, and nationwide availability. Upgrade even offers secured personal loans, which is not common among lenders, and you don't need to input your Social Security number to prequalify on the website.
Upgrade does charge origination fees between 1.85% and 9.99%, however. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
SoFi’s personal loan rates are competitive, and that’s far from the only feature that makes this lender one of our best picks for borrowers with good credit. It also offers same-day funding, multiple rate discounts, large loans, and a range of terms — plus no mandatory origination fees. You may be able to borrow between $5,000 and $100,000 and repay it in two to seven years with SoFi.
Unfortunately, SoFi doesn’t allow cosigners, so the lender won’t be a good fit for borrowers with fair or poor credit profiles who want to apply with a friend or family member. SoFi does, however, have a convenient prequalification process than can give you an idea of whether you may qualify for a loan. The lender also provides a seamless online experience and has an admirable Trustpilot consumer review rating of 4.5 out of 5 stars.
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Overview
Best Egg ranked second in J.D. Power's Consumer Lending Satisfaction Study, so it should come as no surprise that it’s one of our best picks for a wide range of borrowers. In addition to having relatively low rates and discounts, Best Egg provides loans from $2,000 to $50,000 and may consider applicants with credit scores of at least 600. Terms range from two to five years.
This lender stands out for offering better approval odds for prequalified applicants than many other lenders, according to Credible data. Specifically, prequalified applicants were more than twice as likely to be approved for final loans. Best Egg’s origination fees can reach 9.99%.
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
LendingClub provides personal loans up to $40,000 with repayment terms between two to five years. The company is a strong choice for borrowers with good credit who don’t need funds fast, as LendingClub does not specify funding times on its site.
You can prequalify directly with LendingClub without having to provide your Social Security number, though you will need to provide it if you formally apply. Origination fees may be charged and range from 3% to 8%. LendingClub doesn’t offer discounts for autopay or direct pay.
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
Overview
Avant personal loans are better suited to borrowers with bad credit (a FICO score below 580) than many others because the lender may consider applicants with credit scores in the 500s. Loan amounts up to $35,000 are available, so these loans are on the smaller side. But if this maximum is sufficient, Avant might appeal to you because it offers funding as soon as the next business day after approval and is more likely to approve the applications of prequalified borrowers than other lenders.
That said, Avant’s interest rates are steep, and the lender charges an origination fee up to 9.99%.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Upgrade offers loans from $1,000 to $50,000 and features competitive APRs, discounts for direct payments to creditors and enabling automatic payments, fast funding (as soon as the same day as approval), repayment terms up to seven years, and nationwide availability. Upgrade even offers secured personal loans, which is not common among lenders, and you don't need to input your Social Security number to prequalify on the website.
Upgrade does charge origination fees between 1.85% and 9.99%, however. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Fox Business does not make or arrange loans.
Best for: Small same-day loans that can be repaid within two weeks; or longer-term loans if you can’t qualify for a traditional personal loan
Loans that fund as soon as the same day you apply can be considered emergency loans. Some personal loans, as well as cash advance apps and payday loans, fall in this category. How they differ generally relates to the fees or APRs they charge, whether they check your credit, and repayment terms.
- Payday alternative loans (PALs): Many credit unions offer PALs to existing and new members that are designed to be used instead of payday loans, which can often be predatory. PALs are available up to $2,000, have repayment terms up to 12 months, and cap APRs at 28%.
- Cash advance apps: If you’re in need of a few hundred dollars to get you through until next payday, a cash advance via a cash app may be an option. However, these apps can get expensive if you expedite funds for instant delivery. For example, a $5 fee to expedite a $200 cash advance with EarnIn equates to a 65% APR.
- Bad-credit installment loans: There are also installment loan lenders, such as OppLoans, that offer bad-credit loans that can be repaid in monthly installments over a period of years at APRs in the triple digits. While expensive, such lenders are generally a much better option than payday loans.
- Payday loans: Payday loans are often high-fee, two-week, single-pay loans that may create more problems than they solve. How expensive they are depends on your state — for example, payday loan lenders in Idaho charged an average APR of 652% on $500 payday loans, according to Pew research. Lenders often won’t check your credit, though online payday loan lenders may run a soft check. Payday loans can be enticing, as they offer quick access to easy-to-qualify-for cash, but are best avoided.
- “Buy now, pay later” (BNPL): If you need a loan for a retail purchase — say, to replace a broken appliance, buy a plane ticket, or refresh your wardrobe — BNPL could be a relatively low-cost way to cover it. BNPL lenders include Affirm, Afterpay, Klarna, PayPal, Sezzle, and Zip. BNPL lenders may let you borrow at a 0% interest rate if you can pay off the purchase within 4 to 6 biweekly installments. Some BNPL lenders may run a soft or hard credit check.
Personal loans for bad credit can be found through some banks, credit unions, and online lenders. Most will require a credit check and a full application, which triggers a hard pull on your credit report. But fortunately, you can prequalify without any impact to your credit score, which can give you an idea of which lenders will consider your application and may approve your loan.
Personal loans are available from under $1,000 to $50,000 or more, and repayment terms typically last from one to seven years. Personal loan interest rates generally range from around 6% to 36%, but with bad credit, you should expect a rate at the higher end of that range.
If you need a small loan amount, you may be able to get a small bank loan as an existing customer. For example, Wells Fargo and Chase offer loans up to $500 to eligible customers without a credit check.
Learn More: Where can I get a personal loan?
Note
With bad credit, you’re more likely to pay an origination fee on a personal loan. This fee increases the loan’s cost and is taken out up front from the loan proceeds, which reduces the loan amount.
When you apply for a personal loan, lenders look at a combination of factors related to your ability to pay the loan back. For example, they consider the amount you’d like to borrow, your monthly income and outstanding debts, your past borrowing behavior, how stable your income is, and whether you have a cosigner.
Through your credit score and credit report, lenders gauge the likelihood that you’ll repay the loan. If your credit score is low, it suggests you’ve had difficulties making payments on time or in full. This is why it’s crucial to apply with a lender that has a minimum credit score requirement lower than yours. For example, Universal Credit requires a minimum credit score of 560, while OneMain Financial doesn’t have a minimum credit score requirement.
A poor credit background can make lenders less willing to lend you money. However, you can increase your chances of approval for a personal loan with a cosigner or by securing the loan with collateral.
Tip
Prequalify with multiple lenders first to see which you’re more likely to qualify with. Prequalification doesn’t hurt your credit, but once you apply, your score could temporarily drop by a few points.
Learn More: What is personal loan pre-approval?
You don’t need to make a lot of money to qualify for a personal loan, but you do need to make at least the lender’s minimum income amount. For instance, OneMain Financial and Universal Credit don’t set a required minimum income, while Happy Money and Upgrade require a minimum income of $25,000 (on loans made through Credible).
You also need to make enough to afford loan payments. If you have bad credit, you’ll likely have higher payments on the same loan amount relative to someone with good credit. In other words, the same loan could cost you a lot more on a monthly basis. This is why it’s important to prequalify to see what rates you might be approved for, and potential monthly repayment amounts. Make sure you can afford payments so you can rebuild your credit in order to qualify for lower rates (and pay less to borrow) in the future.
Lenders also consider your monthly debt when determining whether to offer a loan. Specifically, they look at your debt-to-income ratio (DTI), which is a simple calculation that expresses your minimum monthly debt payments as a percentage of your income. Most lenders prefer a DTI below 36%, but some, like Upstart, will consider a DTI up to 45% or 50%, depending on where you live.
You can use our DTI calculator to figure out yours, or use your phone’s calculator and these steps:
- Add up all your minimum monthly debt payments.
- Add up your gross monthly income (this is the amount before any taxes or deductions are taken out). You can find it on your pay stub.
- Divide the amount from the first step by the amount in the second step.
- Multiply the result by 100.
For example, if you have a $500 car payment, a $150 minimum credit card payment, and a $200 personal loan payment, your total minimum monthly debt obligation is $850. If your gross monthly income is $4,000, your DTI is 21%.
($500 + $150 + $200) / $4,000 = 0.2125
0.2125 x 100 = 21.25% DTI
While improving your credit score can take months, there are some quick credit wins you may be able to use:
- Request a credit limit increase: A credit limit increase can reduce your credit utilization, which can boost your score. (Credit utilization can contribute up to 30% to your FICO score.) Since credit card companies report monthly to the bureaus, you can see quick score gains as a result.
- Become an authorized user: If you have a close friend or family member willing to add you as an authorized user on their credit card, the credit account and limit they have will be added to your credit report. This can result in a substantial increase in available credit on your report, which can translate to a big score move. This person should be responsible in order to benefit from their good credit habits.
- Use a rent-reporting service: Experian and Self are two providers that let you report regular payments like rent, phone, and utilities. You may have to pay for these services, or your landlord may provide free rent-reporting (check, and make sure you’re signed up).
If you don’t have a willing cosigner who can help you get an unsecured loan, another option is to find a secured personal loan. Secured loans require that the loan is tied to collateral, like a bank deposit, car, or other value-based asset.
Since the loan is secured with the collateral, it reduces the financial risk for lenders. As a result, you have a better chance at getting approved.
Tip
Collateral is something of value you own, like your car or a savings account, that you use to secure a loan. If you default on the loan, the lender can take your collateral.
Your annual percentage rate (APR) can be lower than that on an unsecured loan. The APR is your annual cost of borrowing the loan, including up-front fees, like administrative and origination fees. The lower your interest rate, the less you’ll spend on the loan overall.
Just know that if you don’t make your full, on-time monthly payments, the lender can use your collateral to pay off your loan.
Overview
Best Egg ranked second in J.D. Power's Consumer Lending Satisfaction Study, so it should come as no surprise that it’s one of our best picks for a wide range of borrowers. In addition to having relatively low rates and discounts, Best Egg provides loans from $2,000 to $50,000 and may consider applicants with credit scores of at least 600. Terms range from two to five years.
This lender stands out for offering better approval odds for prequalified applicants than many other lenders, according to Credible data. Specifically, prequalified applicants were more than twice as likely to be approved for final loans. Best Egg’s origination fees can reach 9.99%.
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Upgrade offers loans from $1,000 to $50,000 and features competitive APRs, discounts for direct payments to creditors and enabling automatic payments, fast funding (as soon as the same day as approval), repayment terms up to seven years, and nationwide availability. Upgrade even offers secured personal loans, which is not common among lenders, and you don't need to input your Social Security number to prequalify on the website.
Upgrade does charge origination fees between 1.85% and 9.99%, however. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
For bad-credit personal loans, OneMain Financial is one of the best lenders you can consider. In addition to not setting a minimum credit score for applicants who apply directly through the website, OneMain permits cosigners on applications and offers secured personal loans. Cosigners can help you improve your chances of approval and possibly secure lower APRs. Secured loans require you to pledge collateral when applying and tend to be easier to qualify for than unsecured loans, which typically require higher credit scores and no collateral.
Repayment terms range from two to five years. Personal loan amounts between $1,500 and $20,000 are available, with different minimums and maximums in select states. Also depending on where you live, you’ll pay a flat fee of $25 to $500 or 1% to 10% for origination. You may be eligible for a personal loan with OneMain if you have bad credit (a FICO score of 580 or lower), but the lender’s rates are very high compared to many others.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Overview
Best Egg ranked second in J.D. Power's Consumer Lending Satisfaction Study, so it should come as no surprise that it’s one of our best picks for a wide range of borrowers. In addition to having relatively low rates and discounts, Best Egg provides loans from $2,000 to $50,000 and may consider applicants with credit scores of at least 600. Terms range from two to five years.
This lender stands out for offering better approval odds for prequalified applicants than many other lenders, according to Credible data. Specifically, prequalified applicants were more than twice as likely to be approved for final loans. Best Egg’s origination fees can reach 9.99%.
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Upgrade offers loans from $1,000 to $50,000 and features competitive APRs, discounts for direct payments to creditors and enabling automatic payments, fast funding (as soon as the same day as approval), repayment terms up to seven years, and nationwide availability. Upgrade even offers secured personal loans, which is not common among lenders, and you don't need to input your Social Security number to prequalify on the website.
Upgrade does charge origination fees between 1.85% and 9.99%, however. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
For bad-credit personal loans, OneMain Financial is one of the best lenders you can consider. In addition to not setting a minimum credit score for applicants who apply directly through the website, OneMain permits cosigners on applications and offers secured personal loans. Cosigners can help you improve your chances of approval and possibly secure lower APRs. Secured loans require you to pledge collateral when applying and tend to be easier to qualify for than unsecured loans, which typically require higher credit scores and no collateral.
Repayment terms range from two to five years. Personal loan amounts between $1,500 and $20,000 are available, with different minimums and maximums in select states. Also depending on where you live, you’ll pay a flat fee of $25 to $500 or 1% to 10% for origination. You may be eligible for a personal loan with OneMain if you have bad credit (a FICO score of 580 or lower), but the lender’s rates are very high compared to many others.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Fox Business does not make or arrange loans.
If you need a personal loan with bad credit, follow these steps:
- Confirm how much you can afford: Review your income, existing debt, and monthly expenses to determine your disposable income. With this in mind, determine a maximum monthly payment that you can comfortably afford. This will help you choose a repayment term.
- Check your credit: See where your credit stands by checking your credit score and requesting your credit report. Errors on your report can drag your score down. Request a free credit report from each credit bureau on AnnualCreditReport.com.
- Line up a cosigner or collateral: If your credit history confirms that you’re unlikely to qualify for an unsecured loan on your own, use this time to identify your collateral or who you can ask to cosign on the loan. For cosigners, be clear about expectations regarding repaying the loan so the relationship isn’t compromised. If you’re planning on a secured loan, research lenders that offer them.
- See if you prequalify: Many lenders let you find out if you prequalify for a loan online without impacting your credit. Although prequalification isn’t a guaranteed approval, it can help you understand how likely you might be to be approved for a loan, and it can give you a sense of the rates and loan amounts you might qualify for. Just know that when you formally apply for a loan, the lender will conduct a hard credit inquiry, which can temporarily lower your score by a few points for up to a year.
- Compare loans: To find the best personal loans, compare prequalification results between lenders. Note the amount you may be approved for, potential APRs, fees, terms, collateral or cosigner criteria, and repayment options.
- Fill out a loan application: Complete an application for the loan offer you’d like to proceed with. If you’re applying with a cosigner, the application will ask for their personal and financial details, too.
- Provide supporting documents: The lender may require additional documents before it makes its loan decision. Fulfill requests quickly to avoid delaying the process.
- If approved, review the loan documents: It’s important to check the fine print before agreeing to a new debt obligation. Make sure the payments are as expected, as well as the loan’s repayment term, interest rate, APR, and any up-front fees, like an origination fee. Sign if the terms are agreeable, so the lender can send your money.
Learn More: How to get a personal loan
Secured and cosigned personal loans can be good options for bad credit. Both allow lenders to mitigate risk of nonpayment, which makes them more likely to approve your application and/or give you a lower rate. If you default, the bank can use the collateral on a secured loan to cover the debt; for cosigned loans, the cosigner is legally responsible for the debt if you don’t pay.
You can get a debt consolidation loan with bad credit by seeking a lender with a low minimum credit score requirement and by securing the loan with collateral, such as your home. You should also consider a range of loan types, including personal loans and home equity loans, to consolidate debt.
The best fast loans for bad credit may be small loans offered by your bank or credit union, since these are most likely to have reasonable APRs. For example, credit unions offer payday alternative loans that are designed for borrowers with bad credit who need same-day funds — APRs are capped at 28%. Another option is applying for an emergency personal loan with a lender that has a low minimum credit score requirement.
Meet the contributor:
Jennifer Calonia
Jennifer Calonia has spent over 10 years as a personal finance expert. Her work has appeared on Yahoo Finance, USA TODAY Blueprint, Newsweek, and U.S. News & World Report.