What Banks Offer Bad Credit Loans?

EPF Last Update: October 25, 2020

Can I get a bank bad credit loans? 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.


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Are You looking for:

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:Minimum Credit Score:Minimum 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 CompanyMin Credit ScoreAPRAmountApprovalTermsType
BadCreditLoans05.99% – 35.99%$500 – $10,000< 1 Day3 – 36 monthsPersonal Loans for Really Bad Credit
OppLoans0Vary By State$1,000 – $5,000< 1 Day9 – 36 monthsAlternative Payday Loans for Really Bad Credit
LendUp0Vary By State$100 – $1,000< 1 Day7 – 30 daysAlternative 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
SignatureLoan05.99% – 35.99%$1,000 – $35,000< 1 Day2 – 5 yearsCo-Signer Loans for Bad Credit
Credible5005.34% – 35.99%$1,000 – $100,000< 1 Day90 days – 72 monthsPersonal 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, Credible, 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%. With SignatureLoan, you need a co-signer. But if you can find someone who’s willing to vouch for you, it’s a great option.

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, Credible, 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 more risky from a borrower’s perspective, because if you fail to repay the proceeds, the lender will seize your asset. 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. For high quality service, check out SignatureLoan.
  • 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 analyzes more than just your credit score.

Why Banks Don’t Offer Personal Loans to People with Bad Credit?

It’s all about risk. Banks manage a complex portfolio of assets, requiring them to limit their exposure to risky borrowers:

  • Banks have higher credit score requirements. Because banks face regulatory scrutiny, they often cap their subprime loan exposure. Because of this, they usually only offer personal loans to borrowers with ‘good’ credit scores (670 to 739).
  • Banks want to market credit cards. Because banks would rather promote credit cards, offering personal loans to borrowers with bad credit can cause overlap.
  • Banks usually have income minimums. To ensure you can repay the loan, banks usually want to see your most-recent tax filing. If you can’t meet the minimum income requirement, you’re probably too risky.
  • Banks often ask for collateral. While many online lenders offer unsecured loans, banks usually require collateral to overcome a bad credit score. This way, the bank is covered in case you default.

What if I have Fair Credit?

It usually isn’t enough.

Online lenders and alternative lenders thrive because they fill the void left by traditional banks. Because so many borrowers are denied by banks, online lenders step-in to provide financing when banks say no.

However, U.S. Bank offers a payday loan alternative called the Simple Loan. You can borrow upwards of $1,000 and the bank charges a $12 fee (with automatic payments from your U.S. Bank checking account) or a $15 fee (with manual payments) for every $100 borrowed. You repay the proceeds in 3 monthly payments and a $400 loan with a $48 finance charge has an APR of 70.65%.

Can I Get a Credit Card from a Bank if I have Bad Credit?

While your options are usually limited, there are credit cards designed for borrowers with bad credit. However, these are usually secured cards that have low limits and require a security deposit. And when you add fees on top of that, your credit limit becomes very small.

Have a look at this formula:

Actual Credit Limit = Credit Limit – Security Deposit – Annual Fee – Minimum Monthly Payment * N

For example, if you apply for a secured credit card with a credit limit of $500, a security deposit of $250, an annual fee of $50 and an APR of 18%, your minimum monthly payment works out to $20. For the first month, your actual credit limit is only $180:

$180 = $500 – $250 – $50 – $20 * 1

Despite all that, a secured credit card is a great tool to rebuild your credit. By making the minimum monthly payment, it boosts your credit score. And once banks and other lenders see your creditworthiness is improving, they’ll start offering products with higher limits, lower APRs and better rewards. For example, say the minimum credit score for the card you want is 670, but you have a credit score of 500. If you use a secured card to build your credit score up to 620, your bank may reward your hard work by allowing you to upgrade to the more attractive card.

Best Credit Cards for Borrowers with Bad Credit

Credit Card:Annual Fee:Purchase APR:Type:
Capital One Secured MasterCard$026.99%Secured
DCU Visa Platinum Secured Card$013.75%Secured
Discover it Secured$027.24%Secured
Capital One QuicksilverOne$3926.99%Unsecured
Total Visa Credit CardOne-time program fee of $89 plus Year 1 annual fee of $75 ($48 after that). Monthly service fee is $0 in year 1 and $75 after that34.99%Unsecured

Can I Get a Loan from a Credit Union if I have Bad Credit?

It’s possible.

Credit unions analyze more than just your credit score to determine whether or not you qualify. But they do have limits. And extremely low credit scores likely won’t qualify. However, as mentioned, federal credit unions cap their APRs at 18%, so they’re a worthwhile option. But keep in mind, membership usually requires a one-time fee of $25.

How Do I Increase My Credit Score?

Rebuilding your credit takes time and effort. Anyone who tells you otherwise isn’t being truthful. But, if you continue to work at it, you can erase mistakes of the past and move toward a better financial future.

To learn 30 ways to increase your credit score, see our detailed guide. For information on non-traditional metrics lenders use to assess your creditworthiness, see our guide on unique factors.

As well, you should always analyze your credit report. You can obtain a free copy through Staying up-to-date on your credit report is extremely important as errors and fraud can damage your credit score. A study by the Federal Trade Commission (FTC) found that 1 in 4 consumers had errors on their credit report that affected their score. As well, 8 in 10 consumers who filed a complaint had the issue resolved.


If you have bad credit, bank personal loans usually aren’t an option. However, because online lenders are there to fill the void, you can still obtain a reliable loan at an affordable rate. Too often, borrowers with bad credit settle for payday loans, which end up doing more harm than good. But if you apply to our recommended lenders above, you’ll find many are willing to offer financing that fits your budget. To start, always apply for personal loans. They’re the most affordable and offer flexible terms. If you’re denied, moved on to secured loans, as they’re the next best option. As a final resource, consider alternative loans. APRs are much higher, but your financing costs are still less than traditional payday loans.

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