Best Peer-to-Peer Lenders for Bad Credit of February 2024

Last Update: September 25, 2023 Loan Reviews Loans

While traditional lenders turn consumer deposits into loans, peer-to-peer (P2P) lenders use capital from investors. The P2P business model allows individuals and institutions to tailor their risk tolerances to borrowers’ credit scores, and the dynamic increases your chances of obtaining a loan. For example, borrowers with bad credit often incur higher APRs. And this happens because the lower your credit score, the higher your perceived probability of default. However, since some P2P investors have higher risk tolerances than direct lenders, they’re willing to extend bad credit financing to earn a higher rate of return. As a result, P2P lenders often provide funding when others won’t.

There are only a few bad credit P2P lenders in the marketplace, so your choices are slim. However, our bad credit personal loan guide reviews more than 20 lenders with 35.99% or less APRs. Also, some don’t charge loan origination fees. Furthermore, we also reviewed 25 alternative lenders that offer better products than payday loans. So don’t settle for a 400% APR if you have poor credit.

Our marketplace also lists dozens of products for borrowers with bad credit. Moreover, applying does not require a commitment and won’t impact your credit score. As a result, it’s prudent to shop around, and doing so increases your chances of landing the best deal.

Best Peer-to-Peer Lenders for Bad Credit of February 2024

Companies like Upstart and Happy Money provide P2P loans that meet your and investors’ objectives. Therefore, the business model satisfies both parties and helps fill the void between traditional and alternative lenders. Moreover, our list also includes loan comparison sites because they offer P2P loans. However, some also provide standard personal loans and alternative loans, so their networks have many products.

Lender:Loan Amount:APR:Min. Credit Score:Type:Best For:
Upstart $1,000 – $50,0004.6% – 35.99%300Peer-to-peer lenderLow credit scores, high DTI ratios
PersonalLoans$1,000 – $35,0005.99% – 35.99%580Connects to peer-to-peer lendersShort and long-term personal loans
Happy Money$5,000 – $40,0005.99% – 24.99%550Peer-to-peer lenderA stable credit history


Loan Amount:$1,000 – $50,000
APR:4.6% – 35.99%
Min. Credit Score:300
Approval:1 – 7 Days
Terms:3 – 5 Years
  • Loan origination fee of 0% – 12%
  • Late payment fee of 5% of the amount due, or $15, whichever is greater, after a 15-day grace period
  • Insufficient funds fee of $15
  • Paper documents fee of $10
  • There are no prepayment fees
Qualification Criteria:
  • Minimum age: 18
  • Residing in the United States (don’t have to be a citizen or permanent resident) (exception for military)
  • Minimum credit score of 300 in most states
  • No bankruptcies or public records on your credit report
  • No accounts that are currently in collections or delinquent
  • Living in the 50 US states
Average Borrower Profile:
  • Borrows roughly $8,600.
  • Incurs an APR of 23.98% on a five-year term
  • Achieves approval nearly twice as often than traditional lenders with a FICO Score of 620 to 660
  • The CFPB found Upstart’s AI risk model approves 27% more borrowers and they incur APRs 16% lower than traditional lenders
Best For:Low credit scores, high DTI ratios
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Terms: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).

Although educational information is collected as part of Upstart’s rate check process, neither Upstart nor its bank partners have a minimum educational attainment requirement in order to be eligible for a loan.

The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an in