What Banks Offer Bad Credit Loans?

Last Update: July 1, 2022 Banking Loan Reviews Loans

Can I get a loan from a bank if I’m with bad credit? Unfortunately, the answer is no.

But don’t worry, there are plenty of other options.

Online lenders offer personal loans to people with bad credit. And in today’s market, you can obtain a bad credit personal loan of up to $100,000 with an APR anywhere from 5.99% to 35.99%. Watch our video, which shows how people can get a personal loan for bad credit. Then check the best personal loans on our marketplace.

Now, let’s discuss bank loans.

They’re issued by large financial institutions and come with low APRs. However, to qualify, you need a minimum annual income and a high credit score. With good to excellent credit, bank loans are a great option. But with bad to fair credit, you likely won’t qualify.

Bank:Amount:APR:Min. Credit Score:Min. Income:
Wells Fargo$3,000 – $100,0005.49% – 22.99%660N/A
Citibank$2,000 – $50,0007.99% – 17.99%N/A$10,500
U.S. Bank$3,000 – $25,0007.49% – 17.99%N/AN/A
MarcusUp to $40,0006.99% – 19.99%680N/A
TD Bank$2,000 – $50,0006.99% – 18.99%660No income verification

Best Bank Personal Loan Alternatives for Bad Credit

Loan Company:Min. Credit Score:APR:Amount:Approval:Terms:Type:
BadCreditLoans05.99% – 35.99%$500 – $10,000< 1 Day3 – 36 monthsPersonal Loans for Really Bad Credit
OppLoans0Vary By State$500 – $4,000< 1 Day9 – 18 monthsAlternative Payday Loans for Really Bad Credit
CashUSA05.99% – 35.99%$1,000 – $10,000< 1 Day2 – 5 yearsSecured Personal Loans for Bad Credit
LendingTree5003.99% – 35.99%$1,000 – $50,000< 1 Day1 – 5 yearsPersonal Loans for Bad Credit
LendingPoint5859.99% – 35.99%$2,000 – $25,0001 – 3 Days3 – 5 yearsPersonal Loan for Bad Credit
PersonalLoans5805.99% – 35.99%$1,000 – $35,000< 1 Day90 days – 72 monthsPersonal Loans for Bad Credit

As you can see, there are plenty of reliable lenders out there.

If your credit score is 500 or more, start with LendingTree, PersonalLoans, and LendingPoint. They offer competitive APRs and usually provide funding in 1 business day. If your credit score is less than 500, try BadCreditLoans. Your APR won’t exceed 35.99%, and all loans are unsecured.

If you’re comfortable using collateral, CashUSA is the lender for you. And by securing your loan, it’s possible to receive an APR as low as 10%.

Now let’s discuss OppLoans and LendUp. These are alternative lenders – which means their APRs exceed 35.99%. However, compared to predatory payday loans with average APRs of 400%, their products are much more affordable.

For a detailed breakdown of everything, these companies have to offer, see our advanced guide.

Loans Available to People with Bad Credit

To figure out which loan is right for you, you need to understand how each works:

  • Unsecured Personal Loans. The term ‘unsecured’ means you don’t have to put up any collateral. They’re installment loans, with amounts usually ranging from $500 to $100,000. APRs are capped at 35.99%, and LendingTree, PersonalLoans, LendingPoint, and BadCreditLoans are some of the best providers out there.
  • Secured Personal Loans. The term ‘secured’ means you have to put up collateral. It’s riskier from a borrower’s perspective because the lender will seize your asset if you fail to repay the proceeds. However, because it’s less risky from a lender’s perspective, you usually receive a lower APR. For secured loans, CashUSA is our top choice.
  • Cosigner Loans. ‘Cosigning’ means someone else is vouching for your creditworthiness. The person also becomes liable for the debt if you fail to pay. But, because a co-signer makes the loan less risky for the lender, you usually receive a lower APR.
  • Alternative Payday Loans. Alternative payday loans are used by borrowers who don’t qualify for personal loans but want to avoid the high APRs of predatory payday loans. You can borrow anywhere from $100 to $5,000, and APRs tend to range from 35.99% to 200%. OppLoans is our top choice, with LendUp a close second.
  • Credit Union Loans. Federal credit unions cap their APRs at 18%, but you need to be a member to qualify. However, most credit unions are not-for-profit enterprises and look to help those in their communities. Because of that, their qualification criteria analyze more than just your credit score.

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