People with bad credit are a great target for payday loans. Payday loans are predatory. Their APR average at 400%, but it could be higher. Payday loans lead people into a debt cycle.

Fortunately, people with bad credit have plenty of favorable loan options. Try avoiding payday loans with predatory 400%+ APRs and crazy fees. Opt for personal lenders offering up to 35.99% APRs with flexible repayment terms and solid reputations with in-branch support, thousands of favorable customer reviews, and much more.

Let ElitePersonalFinance put you on the right track to finding the best personal loan for bad credit.

MoneyMutual

When alternative payday loans/personal loans for bad credit come to mind, Las Vegas-based MoneyMutual may be at the top. With countless marketing efforts throughout the past two decades in mainstream media, it’s helped 2M+ Americans match with compatible lenders looking to offer up to $5,000 in as little as 24 hours using a quick and easy online form. There’s no cost to use the service.

Another thing we appreciate about MoneyMutual is its helpful resource section, which has articles on navigating loans. This includes an explainer section on Cash Advances and a Bad Credit Loan guide that offers insights into the benefits of a good credit score, factors affecting your credit score, and much more.

All in all, we’re big fans of MoneyMutual for its extensive lender network and ease of use.

What We Like:

• Loans up to $5,000
• APRs up to 35.99%
• Funds are deposited into your account in as little as 24 hours
• More than 2M customers served to date
• Member of the Online Lenders Alliance (OLA)

What We Don’t Like:

• May not be eligible for the full $5,000 max
• Cash transfer times depend on the lender
• No guarantee of loan approval
• Lower maximum loan amount than many competitors

Eligibility & Next Steps:

• 18 years of age or older
• US citizens or permanent residents
• Income of at least $800 monthly
• Valid checking account

ZippyLoans

With the tagline “personal loans made simple and fast,” ZippyLoan does precisely that, offering loans from $100 to $15,000 with APRs up to 35.99% by the next business day. The platform’s extensive lender network offers competitive rates and a nice combination of short-term loans, installment loans, and personal loans for bad credit.

Plus, it’s very easy to qualify. You only need to be 18 or older and have a regular income. Whether it’s for a past-due utility bill or emergency medical expense, ZippyLoan is ready to give you the emergency cash you need to move forward.

What We Like:

• Loans from $100 to $15,000
• Funds will be deposited into your account by the next business day
• Quick 5-minute online application
• 256-bit SSL encryption technology
• Member of the Online Lenders Alliance (OLA)

What We Don’t Like:

• Higher than average interest rates
• Does not participate in loan approval or decision-making
• No guarantee of loan approval
• Excludes New York, West Virginia, and Oregon residents

Eligibility & Next Steps:

• Must be 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Active checking account and a regular source of income

SuperMoney

Encouraging users to “Super Power Your Money,” SuperMoney combines personal loans with a debt consolidation platform that has processed $20 billion in financing requests. It brings access to a network of partners offering loans from $500 up to $100,000 with rates as low as 6.99% APR for all credit types. You can receive funds by the next business day with a simple application, enabling borrowers to compare real prequalification offers without dipping their credit score.

Outside of personal loans and in-depth consolidation products, SuperMoney also provides services across different types of financial categories such as savings accounts, home mortgage loans, auto loan refinancing, and life insurance. It offers guidance on each and every service, down to the best tax relief companies, where you can read “real product reviews from real people.” Not only is it a lending service, but it’s also an active community of die-hard fans looking to improve their financial situations.

As of this writing, lending partners on the platform include traditional banks, fintechs, and online lenders such as Best Egg, CashNetUSA, Citi, SoFi, Rocket Loans, and many others. Whether you’re making a large purchase, renovating your home, or covering emergency expenses, SuperMoney has you covered.

What We Like:

• Loans from $500 to $100,000
• APRs as low as 6.98%
• No impact on credit score
• Works with all credit types
• Combo of online lenders and mainstream banks

What We Don’t Like:

• Some offers may include higher-than-average APRs
• Not a direct lender; terms vary by provider
• No guarantee of loan approval after prequalification
• High volume of promotional emails by third parties

Eligibility & Next Steps:

• Must be 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number
• Steady source of income
• Active checking account

Upstart

Arguably one of the most innovative lenders within the past 10 years, Upstart uses artificial intelligence to assess borrowers using criteria outside of credit score, such as education, job history, and earning potential. Loans range from $100 to $75,000, with APRs from 6.6% to 35.99%. Plus, funds are available to your account as early as the next business day.

Thanks to AI, Upstart claims 33% lower rates than traditional models, offering more than 3M customers a chance to obtain quick or emergency cash from legit direct lenders. Plus, it has earned a stellar 4.9 out of 5 rating across more than 53,000 reviews through Trustpilot, one of the leading third-party business review sites, making it a winner in our book.

What We Like:

• Loans from $100 to $75,000
• APRs from 6.6% – 35.99% APR
• No prepayment penalties
• Rate checked in less than five minutes
• 4.9 out of 5-star rating across 53k+ reviews through Trustpilot
• Accepts 300+ credit scores

What We Don’t Like:

• Origination fees up to 12%
• Excludes Iowa and West Virginia residents
• Minimum annual income of $12,000
• The maximum loan amount may be lower than advertised (based on credit)

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number and checking account
• Minimum verifiable annual income of $12,000
• Prequalification form through the Upstart portal

Upgrade

Like Upstart, Upgrade is a fintech lender offering personal loans for bad credit from $1,000 to $50,000 with 8.49% to 35.99% APRs, offering competitive repayment terms from 24 to 84 months. With over 2.5M customers, it has earned stellar ratings, including an A+ Better Business Bureau rating and consistently high Trustpilot scores.

Upgrade also offers credit health tools, auto-pay rate discounts, and a credit monitoring dashboard that allows you to track your progress in your score over time. It even offers a Rewards Checking Plus program and a checking account that will enable you to earn up to 2% cash back on purchases with a separate Performance Savings plan earning up to 4.02% APY. Its dedicated Upgrade OneCard will also enable you to earn 3% cash back on everyday purchases (2% on everything else) with no annual fee.

What We Like:

• More than 2.5M customers
• Loan amounts from $1,000 to $50,000
• APRs between 8.49% and 35.99%
• 24 to 84-month repayment terms
• Includes credit scoring dashboard and autopay discounts
• Rewards Checking Plus program with up to 2% cash back

What We Don’t Like:

• Origination fees up to 9.99% (depending on lender)
• Minimum $1,000 loan amount
• Not available to West Virginia and Washington, D.C. residents
• Higher than average interest rates

Eligibility & Next Steps:

• Must be 18 years of age or older (19 in Alabama and Nebraska)
• US citizen or permanent resident
• Valid Social Security number, regular source of income, and checking account
• Minimum credit score of 580 is required
• Prequalification form through the Upgrade portal

VivaLoans

Like ZippyLoans, VivaLoans is another reputable online lending platform offering bad credit and poor credit borrowers loans from $500 up to $35,000 with 5.99% to 35.99% APRs. It separates itself from the pack with a quick 5-minute online application, 256-bit SSL encryption technology, and Online Lenders Alliance (OLA) membership, establishing trust and credibility.

One of the best things about VivaLoans is its simplicity and speed. When your application is submitted, you’re matched with different lenders that work with your credit profile. Note that it is not a direct lender but an intermediary connecting borrowers and loan partners, and it only triggers a soft inquiry on your credit score. Loan amounts and terms vary by lender.

What We Like:

• Loan amounts from $500 to $35,000
• APR ranges from 5.99% to 35.99%
• Funds as soon as the next business day
• Quick and easy 5-minute online application process
• SSL-secured and OLA-affiliated for borrower protection

What We Don’t Like:

• Higher than average interest rates
• No guaranteed loan approval
• Not available to New York or West Virginia residents

Eligibility & Next Steps:

• Must be at least 18 years old
• U.S. citizen or legal resident
• Valid Social Security number
• Proof of steady income and a valid checking account
• Completed application through the VivaLoans website

MarketLoans

MarketLoans is another reputable online marketplace offering those with less-than-stellar credit loans from $100 to $40,000 at up to 35.99% APRs. Like VivaLoans, it matches you with a network of trusted lenders to increase your chances of approval. Repayment terms range from three months to 72 months for complete borrower flexibility.

Its application process is quick and easy, using data protection through bank-grade 256-bit encryption to keep your sensitive data safe. Plus, there’s no cost to apply, and funding can be deposited to your account as soon as the next business day.

What We Like:

• Loans from $100 to $40,000
• Repayment terms from three to 72 months
• There is no cost to use the service
• Funding as early as the next business day
• Member of the Online Lenders Alliance (OLA)

What We Don’t Like:

• APRs vary based on your credit score
• No guarantee of loan approval
• Cash transfer times may vary by lenders
• Not available to Connecticut, New Hampshire, Washington, and Vermont residents

Eligibility & Next Steps:

• Must be at least 18 years old
• U.S. citizen or legal resident
• Minimum monthly income of $1,000
• Employment for a minimum of four consecutive weeks
• Valid checking account

NextDayPersonalLoans

Another lending network working similarly to MarketLoans and VivaLoans is NextDayPersonalLoans, which offers from $100–$40,000 for the quick 2-minute online form, along with funds disbursed as early as the next business day, available for all credit types.

NextDayPersonalLoans is a member of the Online Lenders Alliance, a trade association that promotes industry standards and best practices amongst online lenders. Responsible for enforcing over a million websites for compliance, member sites are held to strict standards. All in all, expect transparent terms and upfront disclosures.

What We Like:

• Loan amounts from $100 to $40,000
• APRs up to 35.99%
• Quick 2-minute online application form
• Member of the Online Lenders Alliance
• Next business day funding

What We Don’t Like:

• Limited customer support
• Terms vary; higher-than-average APRs
• May receive promotional emails for multiple lender partners
• Not all lenders are one-size-fits-all

Eligibility & Next Steps:

• Must be 18+ years old
• US citizen or permanent resident
• Minimum monthly income of $800
• Valid checking account

PersonalLoans

Another lending network worth considering is PersonalLoans, which offers loans from $250 to $35,000 with APRs as low as 5.9% up to 35.99%. Repayment terms are flexible, starting at three months up to 72 months, with funds disbursed by the next business day. All loans come with no hidden fees, upfront costs, or similar tactics.

One of the best things about PersonalLoans is that it can match you with an offer from an extended network of third-party lenders network if one of its direct lenders cannot extend an offer. This allows you to expand your options. However, we encourage you to apply a magnifying glass to their terms as they may not be as reputable as direct lenders operating within the platform.

What We Like:

• Loans from $250 to $35,000
• APRs from 5.99% to 35.99%
• Returns from 3 to 72 months
• Member of the Online Lenders Alliance (OLA)
• Nice source of quick cash/emergency cash

What We Don’t Like:

• Not a direct lender
• Some lenders are more transparent than others
• Hard inquiry upon final approval
• Not available in all states

Eligibility & Next Steps:

• Must be 18+ years old
• US citizen or permanent resident
• Minimum credit score of 580
• Valid checking account

BadCreditLoans

Tacoma-based BadCreditLoans offers access to a participating network of direct lenders offering anywhere from $500 to $10,000 up to 35.99% APR to cover all emergency expenses, such as unpaid utility or past due medical bills. Repayment terms usually go from 90 days to 72 months. However, each lender is different.

What We Like:

• Offers between $500 to $10,000
• APRs up to 35.99%
• Repayment terms around 90 days to 72 months
• Helpful resource guides on how to avoid scams

What We Don’t Like:

• Higher than average interest rates
• For-profit, advertiser-supported website
• Shares your information with non-lender third-party lender networks

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Regular source of income
• Valid checking account, email address, and phone number

OppLoans

Chicago-based OppLoans offers instant access to a participating network of lenders, providing up to $4,000 with APRs from 59% to 160%. Payment terms also extend from nine to 18 months. Approval takes as little as one business day, and lenders charge no application fees, origination fees, or prepayment penalties.

Another positive with OppLoans is its stellar Trustpilot ratings, achieving a 4.5 average score across more than 5,000 reviews (as of this writing). Past customers call out everything from quick and easy online applications to easy qualification criteria. All in all, OppLoans is an excellent choice for fast cash as long as you manage payments responsibly with its higher-than-average APRs.

What We Like:

• Loans up to $4,000
• Repayment terms from nine to 18 months
• Approval in as little as one business day
• 4.5 average score across more than 5,000 Trustpilot reviews
• BBB accredited business

What We Don’t Like:

• Not available to Colorado, Connecticut, Georgia, Iowa, Maryland, Massachusetts, New York, South Dakota, Vermont, or West Virginia residents

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Regular source of income through direct deposit
• Valid checking account or savings account

CashUSA

Calling itself “America’s Cash Network,” CashUSA is suitable for loans from $500 to $10,000, which can be used for emergency expenses like auto repairs, home improvement projects, major purchases, past-due mortgage bills, and more. Submitting through CashUSA is easy with a quick form, allowing instant matching with a partner and lenders matching your credit profile.

Plus, funds are deposited to your checking account as early as one business day.

What We Like:

• Loan amounts from $500 to $10,000
• Next business day funding
• The online form only takes 2-3 minutes to complete
• Customer support via phone and email
• Member of the Online Lenders Alliance (OLA)

What We Don’t Like:

• Loan terms vary by state
• Unpredictable terms: not all lenders are considered equal
• Information may be sold to lenders, third-party networks, and other advertisers
• “Ping-tree” advertising model relies on loan bids to match lenders
• Not accredited by the Better Business Bureau

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Minimum monthly income of $1,000
• Active checking account
• Valid email address and phone number

HappyMoney

With a cheerful tagline, “You only get happier from here,” on its homepage, HappyMoney offers personal loans from $5,000 to $40,000 with APRS of 8.9% to 29.99% and repayment terms from two to five years. Today, it has processed over $6B worth of loans with 300K+ members. However, note that some lenders on the platform charge origination fees anywhere from 0.25% to 10% (albeit with no hidden charges).

HappyMoney has achieved positive ratings across the board, including an average 4.5-star rating on Bankrate, an A+ rating from the Better Business Bureau, along with a 4.5 or higher average across leading third-party review sites Trustpilot, NerdWallet, and Credible. Plus, its website is arguably the easiest to use of all of the ones we’ve reviewed.

What We Like:

• Loans from $5,000 to $40,000
• APRs from 8.95% to 29.99%
• Repayment terms from two to five years
• A+ rating from the Better Business Bureau
• Easy and intuitive website and mobile app

What We Don’t Like:

• Not a direct lender
• Hard inquiries may temporarily dip your credit score
• Origination fees from 0.25% to 10% (depending on the lender)
• Not available to residents of IA, MA, and NV

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• A minimum credit score of 600 (depending on the lender)
• Proof of employment and recurring income
• Valid Social Security number
• Completed application through the HappyMoney website

Navy Federal Credit Union

One of the largest credit unions in the United States, Navy Federal Credit Union (NFCU), has been serving military personnel and their families for more than 90 years. Depending on the loan type, personal loans range from $250 to $50,000, with APRs as low as 7.49%. It also offers generous loan terms, including no origination or prepayment penalties and same-day funding for existing account holders.

Plus, terms go up to 60 months (or 84 months for home improvement loans). Lastly, NFCU constantly achieves high marks from Trustpilot, with an average score of 4.5 out of 5-star rating across more than 41,000 reviews, a testament to their trustworthiness and “member first” approach.

What We Like:

• Loans up to $50,000
• APRs starting as low as 7.49%
• No origination or prepayment penalties
• Same-day approval and funding
• Terms up to 84 months for specific loans
• High customer satisfaction ratings on Trustpilot

What We Don’t Like:

• Only applies to military members, DoD employees, and their families
• Limited branch availability
• Non-members or civilians eligible for higher rates

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Valid Social Security number and proof of income (e.g., pay stubs or W-2s)
• Must be a member of Navy Federal Credit Union with a checking or savings account

Avant

Avant is one of the more popular direct online lenders, offering loans from $2,000 to $35,000 with APRs ranging from 9.95% to 35.99% and repayment terms from 12 to 60 months. One of its biggest draws is its quick online prequalification process. Plus, it works a little differently in that it underwrites loans directly and focuses on other eligibility criteria, such as employment status and income stability.

In addition, Avant funds can be disbursed to your account as quickly as the next business day with no prepayment penalties. However, remember that there is an administrative fee of up to 4.75% with slightly more restrictive eligibility criteria than other competitors listed in this guide.

What We Like:

• Loans from $2,000 to $35,000
• APRs from 9.95% to 35.99%
• Repayment terms from 12 to 60 months
• Quick online prequalification process
• Excellent for borrowers with fair or below-average credit

What We Don’t Like:

• Stricter eligibility criteria
• Administrative fee up to 4.75%
• Not available in all states
• No in-person branch support
• No option for co-signers, secured loans, or joint applications

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent resident
• Minimum required 580 credit score
• Verifiable income via paystubs, electronic time checks, etc.
• Active checking account
• Completed pre-qualification form through the Avant website

OneMain

OneMain Financial works directly for people with less-than-perfect credit, offering loans between $1,500 and $20,000 with up to 35.99% APRs. The site makes checking offers with participating direct lenders easy, and repayment terms range from 24 to 60 months. Plus, they have more than 1,400 branches nationwide if you need an extra hand filling out your application.

Another positive to OneMain is that it has also enjoyed stellar Trustpilot scores with an average 4.5 out of 5-star rating across more than 71,000 reviews, calling out everything from its friendly and knowledgeable staff to fast processing times. All in all, OneMain is a solid choice for anyone looking for a personal loan for bad credit.

What We Like:

• Loan amounts from $1,500 to $20,000
• APRs up to 35.99%
• Repayment terms from 24 to 60 months
• Same-day funding available
• Over 1,400 branches nationwide and high Trustpilot ratings
• Personal branch support

What We Don’t Like:

• Origination fees and late fees may apply
• May require an in-person visit to the branch
• Loan amounts capped at $20,000
• No prequalification with soft credit check (depending on the loan)

Eligibility & Next Steps:

• 18 years of age or older
• US citizen or permanent residency
• Regular income with low DTI under 40%
• Completed application through the OneMain website or branch

Peerform

Peerform is a peer-to-peer lending platform that offers access to legit direct lenders. It provides loans from $4,000 to $25,000 with 5.99% to 29.99% APRs. Like Upstart, its underwriting is different. Since it’s a peer-to-peer lending model with direct investor funding offering competitive rates, it applies other criteria, like debt-to-income ratios and credit history trends, to evaluate prospective borrowers.

Plus, repayment terms go from 36 to 60 months with no prepayment penalties, offering an easy and quick online application process. However, note that some lenders charge up to 5% origination fees, based on its proprietary Peerform grade from A to AAA, which is assigned by each lender, factoring in your credit utilization, collections activity, length of credit history, and debt-to-income (DTI) ratio, and other metrics to determine risk.

What We Like:

• Loan amounts from $4,000 to $25,000
• APRs range from 5.99% to 29.99%
• Repayment terms from 36 to 60 months
• Quick and easy online application
• No prepayment penalties

What We Don’t Like:

• Minimum loan amount of $4,000
• A credit score of 600+ is required, not for all credit types
• Origination fees between 1% and 5%
• May apply limited loan use restrictions

Eligibility & Next Steps:

• Must be 18 years of age or older
• US citizen or permanent resident
• Minimum credit score of 600
• Regular source of income and low debt-to-income ratio
• Valid Social Security number and checking account
• Completed prequalification form through the Peerform website

Why You Should Trust ElitePersonalFinance?

At ElitePersonalFinance, we believe in the power of transparency and moving borrowers away from predatory no credit check loans to reputable options from legit lending sources like Navy Federal Credit Union, CashUSA, Upgrade, and Upstart. They all offer a diversified mix of loan products, from personal loans for bad credit to debt consolidation loans, allowing users to take greater control of their finances with low APRs, flexible repayment terms, and straightforward UIs.

It’s no secret today that predatory payday loans are still ripping off consumers, charging up to 400% APR with excessive rollover fees, hidden charges, and pressure marketing tactics designed to worsen the credit borrowers’ beneficial debt cycle. With our recommendations below, you’ll be empowered with all the tools you need to make informative decisions on your next bad credit loan alternative.

Keep reading to learn more about how you can take greater control of your financial future with ElitePersonalFinance’s guidance on the best personal loan products out there.

What Are Personal Loans for Bad Credit?

Personal loans for bad credit or financial products for those with FICO scores of 620 or below offer fixed monthly installment payments at a set APR and repayment term, generally from six months to five years. They can cover all types of expenses, such as missed utility payments and high credit card balances, or address previous loan defaults.

Unlike traditional loans from banks like Chase and Wells Fargo, which generally offer smaller loan amounts from $500 to $10,000 with higher-than-average interest rates and shorter repayment terms, borrowers must meet specific criteria to qualify. To determine eligibility, lenders will evaluate your income, employment stability, debt-to-income ratio (preferably under 40%), credit score, credit history, and bank account activity with incoming and outgoing cash flow.

Artificial intelligence platforms and fintech lenders have introduced new eligibility criteria beyond credit scores, considering job titles, education history, employment history, and others to offer more favorable APRs than traditional scoring models.

Pros and Cons of Personal Loans for Bad Credit

Here are the pros and cons of personal loans for bad credit:

Pros:

• Alternative Underwriting Model. Today, bad credit lenders consider a lot – not just credit scores. Artificial intelligence companies like Upstart and fintech firms like Upgrade offer advanced analytics to qualify prospective borrowers and offer lower APRs, unlike traditional banks like Wells Fargo that rely on credit scores and income. Plus, peer-to-peer lending platforms like Peerform offer loans funded by individual investors, valuing diverse scoring criteria such as a low debt-to-income ratio over actual credit score.
• Prequalification For the Win. Today, there are lending networks that allow you to compare. For example, SuperMoney presents up to 10 offers in a single session from reputable sources like Best Egg and Rocket Loans, allowing you to compare options side by side. In turn, ZippyLoan’s simple instant prescreen program will enable you to be qualified by 300+ lending partners, filtered and sorted by estimated rate and other qualifiers.
• Remember, hard pulls (which temporarily dip your credit score) are only conducted by direct lenders once you accept an offer and fill out an application.
• Next-Day Funding. With personal loans for bad credit, expect next-day deposits (including Federal Credit Union same-day service for active duty military members). With cash on hand in 24 hours without in-person branch visits, time is on your side.
• Credit Building Opportunities. By making timely payments, expect to rebuild your score.

Fortunately, Upgrade’s reporting dashboard and Peerform’s P2P Transparency & Rewards program are up to the task, offering a built-in dashboard to examine credit impacts on scores over time. For example, seeing your FICO score jump 35 points in six months with consistent on-time payments on a $5,000 loan at a 10.5% APR would not be out of the question.

Cons:

• Beware of Origination Fees. Many direct lenders will charge up to 12% of the amount upfront in origination fees. For example, Upstart charges an average of 6%. That means you will only be disbursed $9,400 on a $10,000 loan. That’s why it’s essential to calculate your net disbursement and compare it to the total repayment.
• Geo Restrictions. Note that our recommended lenders are not licensed to operate in all 50 states. For example, residents of New York, West Virginia, and Oregon cannot take out ZippyLoan loans. In turn, Peerform can’t operate in North Carolina. Each lender will let you know at the time of application if your state is represented.
• Higher Than Average Scores. Naturally, because you are in the bad-to-fair credit range between 300 and 550, you can expect higher-than-average interest rates up to 35.99%, representing the threshold for borrowing before predatory status.
• Not All Lenders Are Quick. Although many of our recommended lending networks fund your checking account by the next business day, peer-to-peer platforms like Peerform typically take up to 72 hours for final approval. You may also see yourself extended in the underwriting stage, depending on your profile.
• Inconsistent Fee Structures. Not all our lenders are equal regarding fee structures and penalty terms. For example, Upgrade offers a one-time 30-day deferment under its forbearance program in exchange for a flat $15 late fee (not bad). In turn, cashUSA is more strict with payment penalties of up to 20% of your missed payment with no forbearance option.

In short, origination fees, state exclusions, potential funding delays, and variable penalties are downsides with personal loans for bad credit.

How Personal Loans for Bad Credit Differ From Payday Loans?

When it comes to personal loans for bad credit vs. payday loans, there are many differences:

Repayment Structure. With personal loans for bad credit, you can expect fixed monthly installment payments anywhere from six months to five years. Payday loans are due with your next paycheck two to four weeks out, pressuring borrowers into consecutive rollovers and potentially requiring another payday loan to cover the original.

For example, pretend you’re taking out a 24-month $500 loan from Upgrade. Expect monthly payments from $25 to $30 versus a $500 payday loan with a 14-day repayment term. There is a one-shot $75 fee for a payout minimum of $575, with more fees added upon consecutive rollovers with additional finance charges if the loan rolls over.

Loan Terms and Transparency. Payday loans have notoriously opaque disclaimers compared to personal loans for bad credit. APRs are often substituted for flat fees (e.g., $20 for every $100 borrowed), translating to a 300%+ APR. Plus, contracts are laced with vague language with no detail over late payments, rollovers, and how finance charges are calculated.

Credit Score Impact. Another area in which personal loans for bad credit differ from payday loans is the impact on credit scores. With personal loans for bad credit, activity is reported to Experian, Equifax, and TransUnion. In turn, payday loans are not generally reported. Twelve consecutive months of on-time payments will offer no credit benefit, and collections activity will occur if you default. There is all downside and no upside!

Uses. One of the most significant uses of personal loans for bad credit is consolidating debt, which means combining multiple high-interest-rate debts into a single manageable monthly payment with a lower APR. Plus, they’re generally used for larger purchases versus payday loans, often considered stopgap measures to cover missed rent/mortgage payments, past due utility bills, or other daily essentials between paycheck gaps.

Unfortunately, payday loans do nothing to address financial stability and can exacerbate existing money problems until your next paycheck (which may not be enough to cover loan repayment).

State Oversight. Unlike bad credit personal loans, payday lenders do not operate under state and federal lending laws. This regulatory gray zone allows them to operate without proper licensing and apply a series of loopholes to charge sky-high APRs. Plus, they may require automatic access to your bank account, free to offer predatory rollover products.

Remember, legit direct lenders from online marketplaces like Upgrade and Upstart comply with the Truth in Lending Act (TILA), disclose the full customer support options, and have a steady stream of positive third-party reviews using aggregators like Trustpilot, the Better Business Bureau (BBB), and similar sources.

How Are Our Personal Lenders Different?

Our curated list of credit unions, lending networks, peer-to-peer platforms, and online networks distinguishes itself from mainstream options like Lending Club and SoFi in many ways.

Multiple Bad Credit Loan Products in One. Many of our top picks provide multiple medical loan options for short-term emergencies.. For example, ZippyLoan specializes in quick $100–$15,000 advances, whereas SuperMoney and Happy Money focus on debt consolidation and larger balances.

Others, like Peerform, match bad credit borrowers with individual investors, often offering competitive interest rates in the 6.99% territory, as long as you qualify with a debt-to-income ratio under 45% and a 600+ credit score.

We even offer local credit union options like Navy Federal, with 7.49% APRs and same-day funding for former and current military personnel and their families. Let’s not forget platforms offering reward checking-style programs like Upgrade, where borrowers can enjoy cash back on debit purchases and rate discounts of up to 0.5%.

By mixing and matching emergency credit and longer-term personal loans for bad credit through union cooperatives, finance options, and P2P investor opportunities, we’re offering the correct loan mix regardless of credit profile.

How to Find the Best Personal Loans for Bad Credit?

Finding a legit, affordable personal loan with bad credit is possible. Here are five tested strategies on how to find the best personal loans for bad credit:

Understand the Lender’s Point of View

Do not assume a score of sub-580 FICO or deny yourself a loan. Modern lenders consider monthly income (minimum of $1,500), debt-to-income ratio under 40%-45%, study deposits over overdrafts with bank accounts, education, and full-time, part-time, or self-employed status.

Shop Around Compare More Than APRs

Although APR (Annual Percentage Rate) is essential, we recommend using loan calculators to calculate monthly payments, loan terms, and extra borrowing costs like origination fees and prepayment penalties. For example, Upstart charges up to 12% origination fees, dispersing $8,800 on a $10,000 loan. However, its AI-based scoring model may offer lower APRs than competing platforms.

In addition, lenders like Upgrade offer auto-pay rate discounts and credit dashboard tools to track progress over time. In exchange for a 1% bump in APR, these tools may be worth it.

Plus, we prefer lenders that charge no late fees over $25 or prepayment penalties, which allows you to control your payoff schedule better.

Say Bye to Payday Loans

One of the smartest things you can do is to avoid payday loans at all costs. They have APRs upwards of 400%, turning a $500 short-term loan into $645 with a two-week 391% APR loan (not including any consecutive rollovers or additional financial services). Instead, rely on rapid places like MoneyMutual and VivaLoan, which offer fixed-term personal loans for bad credit from 6.99% to 35.99% with monthly repayments.

Don’t Forget Peer-to-Peer Lenders

Don’t be wowed by big names like LendingClub, SoFi, or Marcus by Goldman Sachs. Lesser-known platforms like Peerform, where individual investors fund loans with competitive APRs from 5.99% to 29.99%, may work just as well for bad credit borrowers.

Check Repayment Flexibility and Extension Options

Sometimes, life throws curveballs, throwing your payoff schedule out of whack. Check for lender flexibility with payments and extension requests. For example, some lenders offer a 5–10 day grace period after the due date before penalties apply. Others allow shifted due dates and provide short-term forbearance or payment deferral options.

For example, Upgrade’s hardship program allows borrowers to change the due date twice a year with a one-time 30-day deferral, a nice way to combat unpredictability, especially with irregular payment schedules.

Watch Out for Hidden Fees and Prepayment Penalties

This game is often rife with hidden fees and prepayment penalties. Remember that origination fees are usually between 1% and 8% of the loan amount, which may or may not include return payment charges. Plus, it’s always nice to check for prepayment penalties, which are a hit if you pay off your loan early.

That said, lenders like LendingPoint and SoFi offer no prepayment penalties, allowing you to pay off flexibility.

Use the Experian Loan Calculator

Compare loans with varying loan amounts, terms, and APRs by relying on Experian’s APR calculator, which allows you to input different borrowing amounts, repayment terms (e.g., 24 months), and best-case and worst-case APRs to get the total cost of borrowing. For example, SuperMoney has a helpful calculator that allows you to learn the total interest rate over time on a $5,000 loan from 36 to 48 months (e.g., lower monthly payment by $15 albeit at $900 in total interest paid over).

Verify Lender Legitimacy Through Third-Party Reviews

Perform a thorough check on your lender’s reputation by checking for licensing through the state’s financial regulator website (Department of Financial Protection or Division of Banking) and poring customer feedback for dispute resolution, funding times, fee disclosures, pressure tactics, and other good-to-know items.

For example, Upgrade boasts an A+ Better Business Bureau rating with 30K+ positive Trustpilot reviews and a much better option than spotty BBB records from lesser-known lending marketplaces known for hidden origination fees and non-transparent lending practices.

In short, understanding the lender’s point of view, comparing more than APRs, ignoring payday loans, using loan calculators, checking repayment flexibility, considering peer-to-peer lenders, and verifying lender legitimacy through third-party reviews will put you on the right track toward a more manageable loan.

How to Apply for a Personal Loan?

Whether you’re looking to consolidate high-interest debt or pay off quick emergency expenses, here is a quick step-by-step guide on how to apply for a bad credit personal loan through one of our trusted partners/online marketplaces:

Know Lender Criteria

The first step towards applying for a personal loan is understanding the lender platform criteria. Most lending platforms consider your income, employment history, debt-to-income ratio (DTI), bank account activity, and miscellaneous criteria like education, job field, and credit score trends over time.

Remember that artificial intelligence platforms like Upstart, which boast higher approval rates than traditional scoring models, factor in employment history, job title, education, and dozens of other criteria outside of credit scoring. This contrasts with simpler sites like MyMutual and ZippyLoan, which emphasize income more, offering quick cash in exchange for higher interest rates.

Gather All Supporting Documentation

Before pre-qualifying or taking out a loan, here’s a simple list of items to have ready:

• Social Security number
• Government-issued proof of identity (e.g., passport)
• Proof of income (e.g., electronic timesheets or bank statements)
• Employer information
• Checking/savings account information
• Pre-Qualify Without Hurting Your Credit

One of the best things about our recommended lender network is that they allow you to pre-qualify without affecting your credit score. Sites like SuperMoney, Upgrade, and Upstart offer self-credit checks, allowing you to complete your loan offer profile, including the estimated interest rate (APR), repayment terms, estimated monthly payments, and any applicable fees. It enables you to compare multiple options in one easy at-a-glance view.

Choose the Right Offer and Receive Funds

Once you’ve pre-qualified and narrowed down your list of loan options, compare all the details. Along with APR and monthly payment, check for origination fees, auto-pay interest rate discounts, early payoff penalties, and repayment timeline. Be sure to use APR calculators to calculate the total cost of borrowing, including estimated monthly payments and total interest paid over time.

Completing a full application will likely trigger a hard credit check. However, applications can be completed in under five minutes by e-signing your signature on online forms (no paper trail required).

From there, expect responses to be directly deposited into a checking account as early as the next business day, depending on the lender and bank processing schedule. For example, ZippyLoan, VivaLoans, and Navy Federal Credit Union disburse funds by the next business day (but same-day funding is possible)

Even with bad credit, applying for a personal loan can be very easy. By understanding lender requirements, compiling all supporting documentation, pre-qualifying smartly, and comparing loan offers, you can have fast cash/emergency cash from legit direct lenders in no time.

How to Qualify for a Personal Loan?

Nowadays, you don’t have to play the waiting game to qualify for a personal loan with bad credit. Waiting for your credit score to recover or applying to 15 different predatory-looking websites is not the answer.

If your credit score is in the 600 range and you need a loan fast, here are four strategies on how to qualify:

Identify the Right Sites

First, it’s important to selectively choose providers interested in working with people with bad credit. For example, Upgrade offers an online interface with a quick 5-minute application, extending service to those with scores as low as 560. In turn, CashUSA works with subprime borrowers, and OppLoans focuses on your job, not your FICO score.

Get Supporting Documentation Ready

If your credit report is full of collection activities, late payment charge-offs, and other discrepancies, bring supporting documentation to demonstrate a steady financial situation.

This supporting documentation may include one or a combination of two months of pay stubs, consistent side hustle history, bank statements with positive inflow/outflow, and proof of residence and ID. For example, if you deliver full-time for DoorDash and bring in approximately $2,005 a month, OppLoans and CashUSA are more willing to extend credit, even if your score is 520.

Introduce a bank statement showing responsible spending, and you’re automatically a candidate.

Focus on Prequalification

Another tip on qualifying for a personal loan is to pre-qualify. Upgrade, Avant, NetCredit, or OppLoans perform quick 2-minute prequalification with only a soft inquiry and estimated rates and offers on hand before signing on the dotted line. No rate you like? No problem. Simply go to the next one.

Note that it’s important not to send an actual application that triggers hard inquiries, which could drop your score by as much as 15 points within a week. Soft inquiries allow you to explore without penalty.

Consider a Co-Borrower

Consider a co-borrower loan if your credit score is not up to par. OneMain Finance or Upgrade offers cosigner options. You should not take out a secured personal loan, which requires putting up a savings account, certificate of deposit, auto title, or similar value escalator. Note that this focus maximizes your non-credit value via assets, not your credit score.

Remember, avoid rookie mistakes like applying to 15 online lenders within 10 minutes, lying about your income, and resorting to payday loans with outrageous 400%+ APRs.

How to Choose The Right Lender?

To choose the right lender from one of our preferred online marketplaces, take the following five strategies into account:

What’s Your Priority?

The first step towards choosing the right lender is deciding what matters most. Do you need cash right now? ZippyLoans and VivaLoans may help with next-business-day funding. Looking for the lowest total interest or credit-building opportunities? If so, platforms like Upgrade and Upstart report on-time payments to all three credit bureaus (Experian, Equifax, and TransUnion), complete with financial literacy resources and credit score dashboards to monitor your progress over time.

Understand Underwriting

The next step is to understand how underwriting works. Beyond FICO, different direct lenders, lending networks, and peer-to-peer platforms process applications differently.

For example, the Upstart AI platform allows you to qualify for loans based on your field of study, job stability, and other qualifying criteria outside your credit score. For example, a recent engineering grad may be eligible for a 12% APR $15,000 loan versus 25% at a traditional bank like Chase or Bank of America.

In turn, lending networks like MoneyMutual focus on your income and bank account health, offering instant access to short-term and installment lenders with a minimum monthly deposit of $1,200. In turn, Peerform assesses your debt-to-income ratio to qualify for rates as low as 6.99% APR.

In short, look for a lending opportunity with underwriting that is favorable to your credit profile.

Compare Total Loan Costs

As mentioned, APRs are not the end-all. Assess origination fees, term versus total interest, and late fees. For example, Upstart charges an average 6% origination fee versus Peerform, which caps it at 5%. Upgrade charges a modest $15 late fee versus CashUSA’s higher-than-average penalties for a single missed payment.

One of the best ways to compare loan costs is to run side-by-side comparisons using the APR calculator and carefully review the written disclaimers at the footer of every web page for true bottom-line costs.

Understand State Restrictions and Licensing

One underutilized tactic for choosing the right lender is understanding state restrictions and licensing requirements. For example, New York offers a 25% cap on APRs versus Texas’ 35.99%. Exclusion states also apply. For instance, ZippyLoan and VivaLoan do not service New York, West Virginia, and Oregon residents.

Do not forget about disclosure requirements. For example, some California secured loans require lenders to produce “right to rescind” notices, allowing consumers to opt out of loans within a specified period.

Check Repayment Flexibility and Extension Options

Do you have unpredictable income or envision your budget tightening within the next few months? If so, repayment flexibility and extension options may be of concern. For starters, Upgrade offers a 10-day grace period versus Upstart’s 5-day grace period (along with generous hardship programs). Navy Federal Credit Union allows borrowers to reschedule payments (due date changes) twice a year.

In short, these five strategies will allow you to choose the right lender quickly.

Types of All Loans Available for Bad Credit

You have many options if you’re a borrower with bad or poor credit.

Here’s a brief primer on all types of loans available, including information on APRs, term ranges, and best uses.

Unsecured Installment Loans

Unsecured installment loans are arguably the most popular type of bad credit loan. They are fixed-term loans with no collateral required. Typically, they offer 6.9% to 35.99% APRs over 6 to 84 months with loan amounts from $100 to $75,000, making them a solid choice for debt consolidation, unexpected American bills, and home repairs.

Upstart, Upgrade, and OneMain Financial offer three options for unsecured installment loans. Upstart is an AI-underwriting platform offering $100–$75K at 6.6%–35.99% APRs, whereas fintech Upgrade offers $1K–$50K at 8.49%–35.99% APR with credit scoring and dashboard tools.

In turn, OneMain Financial offers an online and a brick-and-mortar presence, offering up to $20,000 at 8%–35.99% APRs.

Secured Loans

Secured loans are backed by collateral such as savings accounts, certificate deposits, or auto titles, reducing lender risk. Typically, APRs range from 5.99% to 24.99%, with 12 to 60-month loan repayment terms from $500 to $50,000. Three lending networks that come to mind are CashUSA, Peerform, and local options like Navy Federal Credit Union, which offer share-secured loans at under 10% APR with terms of up to 84 months.

Peer-to-Peer (P2P) Loans

Rather than direct lenders disbursing funds, individual investors offer funding, allowing for flexibility in the underwriting criteria. With P2P loans, expect 5.99%–29.99% APR over 36–60 months on loans from $4,000 to $25,000.

These platforms require stricter eligibility criteria, such as a 600+ score, DTI <45% (Peerform), and LendingClub’s 600–640 requirement.

Online Lending Network

Online lending networks like MoneyMutual and VivaLoan act as online aggregators, allowing you to compare multiple direct lender offers using a single interface. This enables you to perform a side-by-side comparison without numerous hard inquiries.

With these, expect loans from $100 to $100,000 with 6.99%–35.99% APR on repayment terms from 6 to 84 months.

Note that some lending networks, like SuperMoney, offer both personal loans and debt consolidation loans from Main Street options like Best Egg, SoFi, and Rocket Loans, versus MoneyMutual and bad credit loans, which are known for pairing with lesser-known short-term and installment lenders.

Credit Union Loans

Offered by not-for-profit financial cooperatives like Navy Federal Credit Union, these member-only loans generally offer loans from $250 to $50,000 with 7.49%–18% APR over 12 to 84 months. For example, Navy Federal Credit Union provides starting APRs of 7.49% with no origination or prepayment penalties and repayment terms of up to 84 months.

In turn, local and community credit unions offer a variety of other financial products, including share-secured and signature loans with sub-10% APRs, as long as other accounts are maintained and up-to-date.

Co-Signer Loans

If you add a creditworthy cosigner, poor credit/bad credit borrowers can enjoy 12%–36% APRs over 12–60 months on loans from $500 to $15,000. For example, OneMain offers an online and brick-and-mortar network that allows cosigners to sign off on APRs from 18% to 35.99%.

Secured Lines of Credit and Revolving Accounts

Working similarly to credit cards, secured lines of credit are backed by collateral. For example, a savings account with revolving balances and required minimum payments, where funds are drawn and repaid like a credit card. Typical amounts range from $500 to $25,000, with APRs starting at 8% and up to 25%.

For example, Upgrade offers a personal line of credit with APRs as low as 9.99% as long as you maintain a minimum 600 credit score. Do not forget about secured credit cards offered by credit unions. In exchange for a $500 out-of-savings deposit, you can get a $500-limit card with a sub-20% APR.

Payday Advance Apps

One of the best ways to cover paycheck gaps is by using payday advance apps like Earnin, Brigit, and Dave. These apps can let you borrow up to $100 per day or $750 per pay based on the number of hours you’ve worked without interest or fees (although there is a tipping model for Earnin and membership plans for Brigit and Dave).

Each specializes in different areas. For example, Brigit specializes in holistic budget tracking and overdraft protection, whereas Dave focuses on assisting bad credit borrowers with finding side hustles. Whatever the need, each performs exceptionally well for this type of loan.

Title Loans

It is highly not recommended that title loans use your vehicle as collateral. These lenders typically let you borrow up to 50% of your car’s value, ranging from $100 to $10,000. The repayment terms are generally no more than 30 days.

However, they often come with 100%+ APRs and are better suited for emergency situations where no other credit is available. They’re one of the riskiest types of loans, as failing to repay them fairly could result in the lender taking away your vehicle. Only use them as a last resort.

Buy Now, Pay Later (BNPL)

BNPL services like Afterpay, Klarna, and Affirm allow consumers to split commerce purchases into four to six equal installments over six weeks at 0% interest. Depending on the provider, loans can range from $50 to $5,000, with repayment terms as long as 12 weeks. It’s an excellent choice if you want to make large purchases without using your cards.

Plus, these services report on-time payments to credit bureaus, which can help build your score. Just make sure you’re disciplined about making payments on time.

Flexible Loan Options

Looking for rewards or flexible repayment? Consider dedicated “Rewards Plus”-style programs like Upgrade’s Rewards Checking Plus & Performance Savings, which offers 2% cash back on signature-based debit card purchases, a high-yield 4.02% savings account, and autopay discounts. It allows bad credit borrowers added incentives to build savings and earn cash back with discounted credit.

Tribal Loans

Applying to lenders on Native American tribal lands, these types of loans skirt state regulations, allowing them to have less strict guidelines than traditional payday loans. Expect loans from $500 to $5,000 with repayment terms up to 24 months, albeit at extremely high APRs of 450%+. Remember that tribal lenders are notorious for lacking transparent terms and taking advantage of gray regulatory areas, so we advise avoiding them altogether.

Your Average Credit Cards

Secured cards are among the most popular ways for borrowers with bad credit to borrow. This revolving credit type of account allows you to borrow funds up to a specified credit limit, making it suitable for regular expenses. However, card limits typically go as high as $20,000, with APRs anywhere from 17.99% to 29.99%, depending on the provider, your credit score, and whether or not the card is secured or unsecured.

With the average credit card, you can expect to make monthly payments, with interest accumulating on balances carried over month to month (not against your entire limit).

Some of the more popular unsecured and secured credit cards include Discover it Secured, Capital One Platinum Secured, Indigo Platinum Mastercard, and Milestone Gold Mastercard unsecured. These cards come with a few perks and conditions, such as 2% cash back on restaurants and gas, flexible deposit amounts, and annual fees of up to $99.

Naturally, you want to increase your credit score to take advantage of credit cards that require good to excellent credit. If you have a credit score of 670 or above, expect plenty of options, specializing in cash back, balance transfers, or travel rewards.

For rewards, the Citi Double Cash Card allows you to earn 2% cash back with no annual fee, whereas the Blue Cash Preferred Card from American Express allows you to earn 6% cash back at eligible supermarkets. If you’re primarily focused on travel, the Chase Sapphire Preferred® Card works well with 2x points on travel and dining, 5x on travel booked through the Chase Travel Rewards site, and extra perks when redeeming through Chase Ultimate Rewards, in exchange for a $95 annual fee.

Another option worth considering is the Capital One Venture Rewards Card, which allows you to earn 2x miles on every purchase. They also come with a free Global Entry/TSA PreCheck credit that helps you skip security lines, saving valuable time at the airport.

What is an APR?

The standing annual percentage rate (APR) represents the actual cost of borrowing, which is converted into a yearly percentage that factors in final charges, interest, and other fees. The lower the APR, the lower your total cost of borrowing.

Existing apps offer fixed, variable introductory, and penalty APRs. Fixed APR lines of credit remain the same over the life of the loan, whereas variable APRs fluctuate based on macroeconomic conditions.

In turn, introductory APRs or ultra-low or 0% are offered for a limited time (usually up to 18 months), which works very well with balance transfers where you can pay off the principal faster without accumulating interest (as long as you don’t make any big purchases on the card).

Lastly, let’s not forget about penalty APRs, which trigger higher rates if you make a single missed payment.

Note: Do not confuse APR with interest rate. The interest rate reflects the cost of borrowing without including fees. In contrast, APR adds fees (e.g., origination or application fees) to give a better idea of the total cost of borrowing.

The APRs you’re eligible for depend on your credit score. For example, expect 14% to 20% APR on credit cards with excellent credit, 20% to 25% with fair credit, and 25% to 35% for bad credit. As for personal loans, 6% to 10% for those with excellent credit, versus 11% to 20% for fair credit and 20% to 35.9% for bad credit.

Use these figures as a guideline as you consider boosting your credit score before applying for your next loan.

What Are the Expected Loan Fees?

When you’re borrowing money, expect to pay for the privilege. Whether it is loans, payday loans, auto title loans, payday advance apps, or Buy Now, Pay Later (BNPL) services, here is a running list of all common, unless obvious, fees to expect:

Origination Fees. One of the most unnecessary fees, origination fees are charged for processing your loan application and can be up to 6% of the loan amount. For example, if you borrow $10,000 from Upgrade with a 6% origination fee, $300 is removed from your loan disbursement before it is sent to your checking account.

Late Payment Fees. Late payment fees apply whenever you make a payment after the deadline. These can typically range from $15 to $40. For example, Upstart charges roughly $15, and consecutive late fees will only compound your interest on borrowing.

Prepayment Penalties. Prepayment penalties apply when you pay off your loan early. This prevents a lender from earning a margin on interest. For example, some Money Mutual lenders can charge your outstanding principal a 2% prepayment penalty. Fortunately, others like Upgrade do not charge prepayment penalties at all.

Returned Payment Fees. If your bank tells them there are not enough funds in the checking account to draw automatic payments, lenders typically charge a $20 to $35 returned payment fee.

Tip: Watch out for compounding fees. Assuming you’re taking out a 7.5% APR $5,000 2-year loan from Upgrade with a 3% origination fee, after paying $150 upfront and paying off roughly $224 in monthly payments, adding on a $15 late fee or two can unnecessarily increase the total cost of borrowing. By understanding these fees, you will better manage your monthly budget.

Loan Fee / Finance Charge. Especially popular with payday loans, the financial supply office fee for every $100 borrowed. For example, it’s not uncommon to see a $75 fee on a $500 payday loan due in 2 weeks, translating to a 300% plus APR.

Rollover/Extension Fees. If you have difficulty paying your loan on time, there’s a possibility of a payday loan rollover for the simple privilege of paying it back. If you roll over a $1,000 payday loan twice, you may pay more than $500 in total fees. With the threat of interest, you’re only leading yourself into a vicious debt cycle, so we don’t recommend taking out payday loans.

Application Fees. Don’t be charged refundable fees by some lenders just for submitting your loan application. They typically range from $25 to $50 and may not even detail any loan terms prior. Try to avoid lenders charging application fees at all costs.

Expedited Funds Fee. Typically charged by payday advance apps like Earnin, instant funding fees, and insurance, this fee allows you to get funds the same day versus standard turnaround times of two to three business days. Apps like Earnin, Dave, or Brigit charge anywhere from $1.99 to $9.99 for “instant transfers.”

Paper Statement Fees. Especially popular with legacy subprime lenders, you may see a small paper statement fee for receiving a mailed bank statement instead of going digital. These typically run from $3 to $5 a month.

Credit Reporting Fees. Some BNPL providers will charge credit reporting or monitoring fees in exchange for providing you access to credit dashboards or loan bundles. Many can run upwards of $7.99 a month to monitor your credit. Be wary of these services as you can find better deals, e.g., Credit Karma as a separate service.

Subscription or Membership Fees. Membership fees are charged for the privilege of using the service, and they are especially popular with payday advance services.

For example, Brigit and its 9 million-plus users pay for a Plus ($8.99/month) or a Premium ($14.99/month) access to Instant Cash, credit building tools, Identity Theft Protection, and a finance helper that allows you to view all of your spending breakdowns in an easy dashboard. Note that you do not need Brigit’s Credit Monitoring service subscription.

Tips If You Have Bad Credit and Want to Get a Loan

Here are five tips to get you on the right track if you have bad credit and want a loan:

Wait to Improve Your Credit

Remember, even a 20-point difference can change your loan offers entirely. One of the best ways to get started with a bad credit personal loan is to use free tools like Experian or Credit Karma to get a full report that lists all of your debts, defaults, charge-offs, and other activities that you may be able to dispute successfully.

For example, if you have a 560 credit score because of a single $55 medical bill sent to collections, you can easily fix it and move yourself into a better position.

Take Advantage of Prequalification

We encourage you not to apply to a dozen lenders within an hour, as hard inquiries can temporarily drop your score by 20 points or more. Instead, we recommend using lenders like Upgrade and Upstart, which only conduct soft inquiries, showing you the rate and loan amount you’re eligible for without touching your score.

As a bonus, lending networks like Money Mutual only need one soft pull to show you multiple offers.

Don’t Forget Your Bank Record

Depending on the lender, you may have your bank records scrutinized. For example, OppLoans analyzes your bank account behavior to ensure a healthy number of overdrafts, deposits, and positive balances. We recommend keeping at least $250 in your account and depositing income at least once a month to increase your approval odds.

Consider Midweek Applications

Sometimes, loan approval algorithms make your application less likely to be reviewed by human underwriters as a post-AI. For example, OneMain Financial may or may not use a live person, so we encourage you to submit your application anytime from 10:00 a.m. to 2:00 p.m. Tuesday through Thursday for your best chances.

Remember, artificial intelligence is less likely to approve your loan, and human underwriters are more likely to consider background information like temporary layoffs—peak review hours are the highest chance that a person will review your application.

Split A Loan Into Two Small Loans

Don’t automatically assume you must take out your entire loan from a single provider. Feel free to split your loan into two smaller loans. For example, if you want $5,000, consider $2,500 from Upstart and $2,500 from MoneyMutual.

Remember, lower loan amounts pose less of a threat to lenders. Plus, they’re more likely to be approved. At the same time, you can rely on soft inquiries from lending networks like CashUSA and VivaLoan to know an estimated rate without impacting your score and see if splitting your loan makes sense.

Use a Short-Term Loan Now and a Better Option Within 3 Months

A laddering practice entails taking out a small loan now and paying it off as much as possible within 90 days before reapplying with a different lender offering lower APRs. Thanks to your recent positive payment activity and recency, you will likely have improved your credit score by now.

We ask that your first responder report to at least one — Equifax, Experian, or TransUnion. Otherwise, the strategy will not work, and payday advance apps will be automatically disqualified.

Use a Credit Builder Loan from a Credit Union

We’re big advocates of credit builder loans, where you can borrow anywhere from $300 to $1,000 without receiving the money immediately. The money is parked in a locked savings account while you make monthly payments for up to 24 months, with cash accessed at the end of the term.

At this point, reputable credit builder loans will report to all three credit bureaus, and completing one from start to finish can boost your score by as much as 60 points. For example, it’s not uncommon to go from a 550 credit score to a 625 credit score in 8 months with a simple $500 credit builder loan.

You can take out a larger installment loan from a lower APR website.

Note that this strategy will likely work best for loans over $3,000.

Tips to Manage Your Bad Credit Loan and Repay It Faster

Now that you’ve managed to take out a bad credit loan, repay it faster with the following five strategies:

Automate Payments to Kill Late Fees

Depending on the lender, you may be charged a late fee anywhere from $15 to $40. Even a missed payment can drop your score by 50 points or more, on top of hiked APRs. One of the best ways to stay on top is by setting up automatic payments from a valid checking account and using Monarch Money or a similar app to monitor your withdrawal schedule.

For example, if you have a regular income due to delivering food or driving for Uber, you should set up a calendar alert 48 hours before your due date for automatic transfers into your bank account.

For perspective, a 160% APR $1,500 OppLoan loan can cause you to pay $160 to $420 with one missed payment. No wonder why setting up automatic payments is so important.

Make Payments Biweekly

If you have an installment loan, we encourage you to make bi-weekly payments of 26 payments a year instead of 12, which adds one month to the schedule. Doing this will cut months off your loan term and reduce the total interest paid over time.

For perspective, paying a $3,000 24% APR loan over 36 months weekly may save anywhere from $300 to $500 in interest. Now Alexa turns the AC off because you’ve paid it off three to five months early.

To facilitate bi-weekly payments, call your lender and ask if they accept this structure with no prepayment penalties. From there, you can set up a payment plan to cut your monthly due amount in half every two weeks, using tracking tools to monitor your progress.

Consider Refinancing After 6 Months of On-Time Payments

Did you know you can renegotiate your APR, assuming 6 to 9 months of on-time payments? Lenders like Upgrade and Upstart consider this request. Use tools like Credit Karma to monitor your score after 6 months of consecutive payments and see if your new score qualifies for lower APRs.

You can take out a new loan from there to pay off the original high interest.

That’s a hypothetical; let’s say you start with a 32% APR $2,000 loan from OneMain. After 9 months, your score can bump to 620 from 545, making you eligible for a lower 16% APR loan from Upstart. Pay off your old balance and cut your interest in half—a move known for the savviest borrowers.

Take Advantage of Lender Credit Health Tools

Another tip for managing your bad credit loan is to use lender features. For example, there’s no shortage of resources that offer built-in tools to help you pay down your debt faster.

For example, Upgrade operates the Credit Health Monitoring dashboard.

Consider Financial Hardship Assistance as a Last Resort

Many lenders offer financial hardship programs that allow you to defer or avoid late payments whenever you have unexpected expenses. For example, OneMain Financial’s hardship assistance program allows a reprieve or modification to your loan in case of a medical emergency, job loss, or other qualifying event.

Participating in this program helps prevent damaging late payments and keeps your account in good standing. Knowing how long you have to recover financially, you can expect one to three months of payment deferrals or adjusted payments to get you back on track.

How to Increase Your Credit Score?

Your FICO score is calculated by combining on-time payments, diversifying your credit mix, lowering your utilization ratio, and increasing your average account age.

Let’s go beyond the traditional guidance you may get on the websites and give you five lesser-known strategies to boost your score.

Request Credit Line Increases

You can instantly improve your credit utilization percentage by increasing your existing credit limit and spending the same. The key is not to use any part of the increase, as it widens the gap between your limit and your balance. The good news is that many issuers like Capital One allow you to instantly increase your credit line with no hard inquiry on your file.

If you make all your payments on time, make it a habit to request a credit limit increase every six months.

Become an “Authorized User” on Someone Else’s Card

One of the best ways to boost your credit score is to find a family member or close friend and politely ask them to become an authorized user on their account without using their card. Feel free to use their payment history and account age to boost your average account age. At the very least, the card should be 5 years old with a utilization ratio under 30%.

Your average age accounts for only 10% of your FICO score, so don’t expect a big boost with this tip.

Use a Bill Reporting App

If you’ve made a lot of late payments with your traditional credit mixes such as credit cards, auto loans, and mortgages, then you may leverage your on-time payments made to rent, utility, and streaming bills.

The most popular bill reporting apps are Experian Boost and RentReporters, which allow you to add utilities, streaming bills, and rent payments to your credit line for reporting to Experian, Equifax, and TransUnion. You might as well take advantage since you’re already paying these bills on time—credit reporting errors.

For bad credit borrowers, errors or inaccurate information can appear on their credit reports. As an added tip, be sure to dispute any old collections under $100 and check for accounts with missing dates, accounts marked as open that should be closed, incorrect balances, and similar information.

Once you file a request to speak with a credit bureau about a question, it could take up to 30 days to verify. One thing to know is that you can expect automatic removal (even if the information is accurate) if the credit cards cannot be disputed. Even one successful dispute can bump your score by 50 points, so it’s well worth the effort!

Ask for “Goodwill Adjustments” on Late Payments

Sometimes, your lender may be generous enough for you to get a reprieve from a late payment.

By writing a goodwill letter explaining the situation (e.g., economic hardship, illness, etc.), lenders are more likely to remove any late or derogatory marks from your credit report. Remember, your lender decides what’s reported to credit bureaus, not the actual credit bureaus. Note that this strategy is more successful if you’ve consecutively made on-time payments, where any one-time late payment can be removed as a goodwill gesture.

Take Out a Credit Builder Loan

Instead of abandoning a traditional loan, consider credit-building programs from Self, SeedFi, or your local credit union.

It works by paying yourself in monthly installments, which are put under a savings account. At the end of the term, you get your money back with on-time payments reported to the credit bureaus. A tip: a funding account with three to six months upfront allows you to auto-draft every month, enabling you to pay yourself while helping your credit score.

Apply “Pay for Delete”

If you haven’t received collections on your account, you may want to negotiate a “pay for delete” deal with the agency. In exchange for paying them off, they may accept deleting collections activity from your credit report, especially for smaller debts under $500. Just be sure to have the agreement in writing. Not all agencies do this, but it’s worth a try.

In short, becoming an authorized user on someone else’s card, using a bill reporting app, disputing credit reporting errors, taking out credit builder loans, and taking advantage of “pay for delete” are five under-the-radar strategies you can use to boost your score by 50 points or more.

How to Find Legitimate Personal Loans for Bad Credit?

Here are some strategies on how to find legit personal loans for bad credit:

Consider Peer-to-Peer Lending or Alternative Data Scoring

Peer-to-peer (P2P) lending platforms offer access to individual investors who may be willing to extend lower APRs and greater flexibility and credit. Three of the most popular options include Peerform, Proper, and Upstart.

At the same time, consider lenders that have alternative eligibility scoring models. For example, some lenders use your utility payments and employment records as alternative data versus traditional credit scores. For my recommended guide, Upstart comes to mind. It grades you on education, job title, employment history, and other criteria and offers higher acceptance rates than traditional models.

Other companies specializing in this area include Petal, Avant, and Oportun, although Upstart is the best.

Remember to use bill reporting services like Experian Boost to report your on-time payments to credit bureaus.

Don’t Forget Payday Advance Apps

If you need to cover a paycheck gap (or you can repay a small loan by your next paycheck), taking out a personal loan for bad credit may be unnecessary.

Instead, turn to payday advance apps like Earnin, Dave, and Brigit, which can offer you up to $150 a day or a maximum of $750 per pay period with 0% interest, no credit check, and no fees. For example, Earnin is a well-regarded platform with over 19 million downloads and counting, where you can get money to your checking account the same day ($2.99 expedited transfer) or in one to three business days at $0 cost.

Instead of earning interest, Earnin also offers voluntary tips of up to $14 (don’t tip!). It works on iOS and Android devices with no credit check and no impact on your credit score.

To qualify, you must earn at least $320 per pay period (Earnin).

Consider Credit Unions and Local Non-Profits

One often overlooked source of personal loans is bad credit or credit unions and community-based nonprofits.

Credit unions are member-focused rather than profit-maximizing, resulting in lower interest rates, lower fees, and flexible repayment terms. For example, if you’re an Alabama resident, Redstone Federal Credit Union or Alabama Credit Union are excellent places to start.

Plus, you may also want to take advantage of Community Development Financial Institutions (CDFIs) or the Alabama Rural Finance Authority, designed to serve underprivileged populations that rely more on a social lending basis, where loans are granted based on trust (at 0% interest rate at times although rare). To participate in these programs, you must be an upstanding member or active participant in a local church group or community organization.

Don’t fear taking advantage of credit outside the traditional system to move forward.

How to Avoid a Personal Loan If You Have Bad Credit?

We recommend avoiding taking out a bad credit personal loan to avoid the trap of high-interest loans altogether.

Here are five credit strategies that work to keep you financially afloat without one:

Negotiate Directly with Creditors

Pretend you have a $5,000 medical bill and terrible bad credit disqualifying you from traditional loans. Instead of negotiating directly with Upstart or Upgrade for a reprieve, you can call your hospital’s billing department and explain your situation, requesting a modified payment plan with lower monthly payments.

Hospitals often can even cut your bill by up to 50% or, at the very least, waive interest and late fees. That way, you don’t need to take out a personal loan for bad credit to pay it off.

Consider Community or Employer Assistance Programs

A second way to avoid taking out a personal loan for bad credit is to tap into community or employer assistance programs.

For example, New Jersey lacks organizations devoted to this purpose, such as NJ 211, Catholic Charities of New Jersey, and the Community Food Bank of NJ, which offer a combination of utility pay help, food, and transportation. Plus, you can use emergency assistance programs like LIHEAP (Low Income Home Energy Assistance Program), subsidized by the federal government, to cover utility bills in times of hardship with a grant.

Unlock Cash Using Your Skills

Of course, tapping into your talent to generate funds without a second job or formal business is an excellent way to avoid taking out bad credit loans. For example, you may forgo a $300 MoneyMutual loan in favor of allocating extra hours tutoring kids, delivering your daughter, or freelance writing to cover the gap.

Ask for an Employer Advance

Not to be confused with payday loans, employers offer payroll advances as short-term, interest-free loans deducted from your future paycheck. Refer to your company’s HR department for more information.

If your job does not offer the service, rely on a paycheck advance app like Earnin, Dave, or Brigit. These apps allow you to earn funds if you repay them on your next payday with zero interest. They’re an excellent way to cover paycheck gaps and avoid a payday loan or personal loan for bad credit under $1,000.

How We Chose These Lenders?

With no shortage of lenders out there promising solid terms on bad credit personal loans, all of our recommendations kept the following criteria in mind:

Transparency is Everything

The biggest thing you can look for with any personal loan from a bad credit lender is how transparent their terms are. For example, MoneyMutual clarifies that you can borrow as much as $5,000 with funding by the next business day, with access to a diversified mix of lenders at no cost and Online Lenders Alliance membership.

Their disclaimer also states that they are not a lender, automatically making them more trustworthy than sketchy, lonely generation sites. Likewise, any disclosures about how data is handled are appreciated, as is a fast, SSL-secured application with clearly defined encryption standards.

Reputation

When it comes to legit direct lenders, reputation is key. For example, OneMain Financial is well-regarded. It has an offline and online presence and more than 50 branches nationwide, offering loans up to $20,000 for bad, fair, and poor credit borrowers. In turn, Upgrade clarifies that it has stellar Better Business ratings, and a suite of helpful credit-monitoring tools like the Credit Health dashboard offers insights into how you manage your money. It has also helped more than 2 million customers since its inception.

All About Speed

Speed is key when it comes to needing quick cash and emergency cash. Rather than relying on traditional 15-day writing processes from conventional banks, lending networks like MarketLoans offer instant loan access using a quick 3-minute form.

At the same time, payday advance apps like Earnin and Brigit don’t charge traditional APRs and rely on optional tips and monthly memberships to offer up to $200 per day or $750 per pay. These apps allow people to cover paycheck gaps, which can be used for emergency expenses like unpaid medical or past-due utility bills.

Flexibility

At ElitePersonalFinance, we appreciate having a list of recommendations that provide flexibility across income types and needs.

For example, Upstart uses artificial intelligence to make the right loans, factoring in education, job history, and income potential, not just your FICO score. This allows recently employed college graduates and other underserved populations an option. At the same time, sites like CashUSA and BadCreditLoans work to provide you access to a participating network of lenders offering loan amounts from $500 to $10,000, even if you have a 580 or less credit score.

Don’t forget about repayment terms as well. For example, VivaLoans offers repayment terms starting at 90 days, whereas other options go as long as 5 years. However, it’s important to note that the longer the life of your loan, the more total interest paid over time.

Support

Our preference will always go to real human support. For example, OneMain Financial works well with branches across more than 44 states, whereas BadCreditLoans.com and MarketLoans.net do offer contact information despite being comparison sites or online marketplaces.

At the same time, OppLoans is known for its excellent, dedicated customer service lines, where you can hear back within 24 hours.

Reasonable Eligibility Requirements

When it comes to bad credit loans, eligibility flexibility is key. For example, VivaLoans only asks that you’re 18 years or older, have U.S. residency, proof of income, and a valid checking account. On the other hand, Upstart allows you to pre-qualify with a soft inquiry through its AI-based underwriting platform. In contrast, MoneyMutual has a clearly stated eligibility FAQ on its website.

At ElitePersonalFinance, you can trust that all of our recommended lenders meet and excel on all or most of the criteria above.

Frequently Asked Questions

Which lender offers the fastest bad credit loans?

If speed is your priority, turn to ZippyLoan and VivaLoan for next-business-day funding. Note that member institutions like Navy Federal Credit Union offer same-day funding on personal loans for existing members. At the same time, Upstart and SuperMoney may take up to two business days to disburse. Check each lender’s terms and conditions for details.

How much money can I get if I have a 550 credit score?

Even with a 550 credit score, Upstart can offer from $100 to up to $75,000 versus ZippyLoan’s $100–$15,000 range, Upgrade’s $1,000–$50,000 range, and VivaLoans’ $500–$35,000 range. Note that actual offers depend on lending criteria (e.g., income, employment stability, and debt-to-income ratio), with no two borrowers considered equal.

Can I get a personal loan for bad credit, not a payday loan?

Getting a personal loan for bad credit can prevent a payday loan. MoneyMutual, ZippyLoan, SuperMoney, Upstart, Upgrade, VivaLoans, Peerform, and Navy Federal Credit Union do an exceptional job with fixed-term personal loans with APRs from 6.99% to 35.99%. They offer flexible repayment schedules and on-time payment reporting to credit bureaus for credit building.

Are personal loans no credit check?

Depending on the lender, personal loans and no credit check may apply. For example, SuperMoney, Upgrade, and Upstart do soft pulls (not affecting your credit score), whereas almost all direct lenders (immediately upon prequalification) perform hard credit checks before funds disbursement. Any “no credit check” products like payday loans will always come with higher costs.

Are all bad credit no credit check loan scams?

No, not all bad credit and no credit check loans are scams. However, be wary of any no credit check loans offering guaranteed approval. Remember, our vetted trusted partners require software for hard credit checks.

Are personal loans from direct lenders?

Whether or not personal loans come from direct lenders depends on the platform.

For example, online lending networks like SuperMoney, MoneyMutual, ZippyLoan, and CashUSA match you with third-party lenders. In contrast, fintech loan providers like Upstart and Peerform do their own underwriting/funding, versus credit unions like Navy Federal Credit Union, where direct lender funds originate.

Are personal loans with guaranteed approval?

No legit direct lender offers personal loans that guarantee approval. Any “guaranteed approval” promises usually infer referral fees to payday-style lenders without app verification using income, DTI, credit history, or another criterion.

Are personal loans same-day instant approval loans?

Yes, many personal loans offer same-day instant approval. For example, fintechs like Upstart and Upgrade offer decisions within minutes versus ZippyLoan and Navy Federal Credit Union, with approval and disbursement funds as early as the same business day, as long as you meet the daily application cut-off (excluding weekends).

Can I consolidate my bad credit loans?

One of the most common uses of bad credit loans is debt consolidation. For example, SuperMoney is a dedicated debt consolidation loan marketplace that allows you to roll multiple high-interest balances into a single loan with a lower APR, helping you save thousands in interest over time.

How can I improve my credit score?

Five of the best ways to improve your credit score are scheduling on-time payments, reducing credit card balance utilization ratios to under 30% of each card’s limit, diversifying your credit mix, monitoring progress using lender-built-in dashboards, and limiting the number of hard inquiries on your file.

For a more comprehensive guide, refer to our “How to Improve My Credit Score” section above.