If you have bad credit and need a personal loan, solutions are available. The best online and traditional lenders consider bad credit less troublesome than in years past. As a result, companies like BadCreditLoans, ZippyLoan, Avant, LendingTree, OneMain Financial, Upstart, Upgrade, Happy Money, and PersonalLoans are more willing to compete for your business.
Bad credit lenders typically require a credit score of 500 or more, and APRs are often inversely correlated to your credit score. The lower the score, the higher the APR. However, specifics vary by lender, and other factors can tilt the scale in your favor. For example, your income, debt-to-income (DTI) ratio, education, and employment can increase your creditworthiness in the eyes of lenders. Standard terms are as follows:
Bad credit personal loans typically range from $1,000 to $10,000, with APRs of 15% to 35.99%.
While rates of 15% to 35.99% are not cheap, lenders require more compensation to finance borrowers with bad credit. Moreover, the terms are better than payday loans since rates average 400%, and loans typically max at $1,000.
Our marketplace lists dozens of bad credit products from the most reputable lenders, and you can filter the results by your unique criteria. Moreover, applying does not require a commitment and won’t impact your credit score. As a result, it’s prudent to shop around to obtain the best rate. You can also read our reviews below for more information.
Since honesty is the best policy, we must warn you that the best terms, APRs, and highest loan amounts are often reserved for borrowers with good to excellent credit scores. However, it doesn’t mean that you can’t obtain an affordable loan, and it doesn’t mean that you can’t rebuild your credit and obtain cheaper financing in the future.
Moreover, today’s lending market is much more competitive than in years past. As a result, alternative metrics like your spending habits, income, savings, education, and rent history can help tilt the scales in your favor.
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 interest rate of 18.44% and a 8.64% origination fee of $864, for an APR of 22.88%. In this example, the borrower will receive $9136 and will make 60 monthly payments of $257. APR is calculated based on 5-year rates offered in March 2023. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.
While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. It is important to review your promissory note for these details before accepting your loan.
When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.
The APR calculation compares the two models based on the average APR offered to borrowers up to the same approval rate. The hypothetical credit-score only model used in Upstart’s analysis was developed in connection with the CFPB No Action Letter access-to-credit testing program and was built from a traditional credit score only model trained on Upstart platform data. APR for the scorecard was averaged for each given traditional credit score grouping.
While automated recurring payments are easy to set up, payments by check or one time electronic payments can also be used to repay a loan. Borrowers have the flexibility to choose the repayment method that works best for them.
This information is based on actual borrowers as of 4/1/2023 who identified “credit card refinancing” as their primary use of funds and paid off at least 51% of their outstanding credit card debt within 3 months of taking out the loan. Out of these actual borrowers, some could have experienced an increase or decrease in their credit score. This information reflects the overall average change in credit score points experienced by this group of borrowers as identified above.
The majority of borrowers on the Upstart marketplace are able to receive an instant decision upon submitting a completed application, without providing additional supporting documents, however final approval is conditioned upon passing the hard credit inquiry. Loan processing may be subject to longer wait times if additional documentation is required for review.
Upstart is somewhat different than the other companies on our list because it’s a peer-to-peer (P2P) lender. Instead of issuing loans directly like Avant or connecting you with third-party lenders like ZippyLoan, Upstart matches borrowers with investors. Therefore, the latter provides the capital, and Upstart handles the underwriting process and services the loans.
Upstart’s P2P loans range from $1,000 to $50,000, with APRs of 4.6% to 35.99% and terms of three to five years. As an example, Upstart’s website states that five-year loans have an average APR of 23.98%. However, unlike the other companies on our list, Upstart approves borrowers with credit scores as low as 300. And since alternative metrics like your education and job history are often more critical, Upstart is an excellent option if you have very bad credit.
Like OneMain Financial, Upstart’s loan minimums also vary by state. For example, applicants in Georgia ($3,100), Hawaii ($2,100), Massachusetts ($7,000), New Mexico ($5,100), and Ohio ($6,000) have to borrow more than $1,000. However, you should be able to apply in all states, and requesting an offer won’t hurt your credit score.
Pros:
Upstart provides funding of $1,000 to $50,000.
You can obtain APRs of 4.6% to 35.99%.
Alternative credit metrics increase your chances of approval.
Upstart’s services should be available in all states.
Checking your rate won’t impact your credit score.
Cons:
A loan origination fee of 0% to 12% will apply.
A late payment fee of 5% of the amount due, or $15, whichever is greater, will apply after a 15-day grace period.
Upstart sometimes charges a $15 insufficient funds fee.
Upstart sometimes charges a $10 fee for paper documents.
Like OneMain Financial, some states have different minimum loan requirements.
The impact of COVID-19:
If you need to pause your loan payments because of the pandemic or due to other financial difficulties, you can submit an online request through Upstart’s website. In addition, you can also call the lender at 1-855-451-6753.
ZippyLoan
Loan Amount:
$100 – $15,000
APR:
12.00% – 35.99%
Min. Credit Score:
0
Approval:
1 – 7 Days
Terms:
6 Months – 5 Years
Fees:
Loan origination fees vary by lender
Late payment fees vary by lender
Most lenders don’t charge prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits.
Fill out your information through ZippyLoan’s online portal
Average Borrower Profile:
ZippyLoan connects borrowers with personalized financial product offers from banks and other lenders
If you have bad, fair, good, or excellent credit, financing options are available
As an excellent resource to obtain bad credit financing, ZippyLoan’s network connects you with the top lenders in the marketplace. For context, our guide includes both direct lenders and comparison sites. And companies like ZipplyLoan, NextDayPersonalLoan, and BadCreditLoans are examples of the latter. Therefore, they match you with lenders rather than providing the financing themselves.
You can borrow anywhere from $100 to $15,000 with typical terms that range from six months to five years. However, like NextDayPersonalLoan, lenders’ APRs vary depending on your credit score. For example, ZipplyLoan’s financing illustration uses APRs of 12% to 35.99%. As a result, bad credit personal loans are part of its product offering. However, loans are not available in West Virginia, Oregon, New York, or the District of Columbia.
Pros:
Lenders on ZippyLoan’s site offer $100 to $15,000.
Typical APRs range from 12% to 35.99%.
High loan amounts are available.
There is no minimum credit score requirement.
ZippyLoan’s network of lenders competes for your business.
Checking your rate won’t impact your credit score.
Cons:
Like NextDayPersonalLoan, fees vary by lender.
Some lenders’ products may have APRs over 35.99%.
You can’t apply if you live in West Virginia, Oregon, New York, or the District of Columbia.
The impact of COVID-19:
Although ZippyLoan doesn’t have any specific programs related to the coronavirus pandemic, you can apply for a hardship exemption. To do so, contact a representative at 1-844-379-8621 or email support@zippyloan.com.
NextDayPersonalLoan
Loan Amount:
$100 – $40,000
APR:
Not Listed
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
Not Listed
Fees:
Loan origination fees vary by lender
Late payment fees vary by lender
Most lenders don’t charge prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through NextDayPersonalLoan’s online portal
Average Borrower Profile:
NextDayPersonalLoan’s connects borrowers with personalized financial product offers from banks and other lenders
If you have bad, fair, good, or excellent credit, financing options are available
NextDayPersonalLoan is another reputable comparison site that helps borrowers connect with lenders. You can obtain anywhere from $100 to $40,000, but like ZippyLoan, APRs and fees vary by lender. Thus, you need to apply to view lenders’ terms and conditions. However, applying won’t impact your credit score, and NextDayPersonalLoan’s selection tools work like ZippyLoan and BadCreditLoans since you can filter your results by the most suitable products. As a result, you can shop around, browse multiple offers, and consider all of the pros and cons before making your final decision. Furthermore, NextDayPersonalLoan’s platform should support applicants in all states. However, since BadCreditLoans’ alternative products are like ZippyLoan’s, some offerings may have APRs exceeding 35.99%.
Pros:
NextDayPersonalLoan helps you obtain $500 to $10,000.
Select borrowers can qualify for the highest loan amounts.
NextDayPersonalLoan’s network of lenders competes for your business.
Small loans can help you overcome short-term emergencies.
You should be able to use NextDayPersonalLoan’s platform in all states.
Checking your rate won’t impact your credit score.
Cons:
Like ZippyLoan, fees vary by lender.
APRs are not listed, and you need to apply to view lenders’ terms and conditions.
Small loans could have APRs akin to payday loans.
The impact of COVID-19:
Since NextDayPersonalLoan is a comparison site, it can’t amend loan agreements. As a result, you should contact your lender directly to determine if forbearance or hardship programs are available. In addition, you can also call NextDayPersonalLoan at 1-866-829-4551 for helpful advice.
BadCreditLoans
Loan Amount:
$5,00 – $10,000
APR:
5.99% – 35.99%
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
90 Days – 6 Years
Fees:
Loan origination fees vary by lender
Late payment fees vary by lender
Most lenders don’t charge prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits.
Fill out your information through BadCreditLoans’ online portal
Average Borrower Profile:
BadCreditLoans connects borrowers with personalized financial product offers from banks and other lenders
If you have bad, fair, good, or excellent credit, financing options are available
BadCreditLoans is another highly-rated comparison site that helps bad credit borrowers find affordable loans. Financing ranges from $500 to $10,000, with APRs of 5.99% to 35.99%, and terms of 90 days to six years. The lender doesn’t list any state restrictions, and submitting a request doesn’t require a commitment and won’t hurt your credit score. BadCreditLoans’ search function is like ZippyLoan’s because you can obtain a personalized quote in minutes. After filling out the required sections, BadCreditLoans will connect you with lenders most likely to approve your application.
However, since BadCreditLoans’ small-dollar products are also like ZippyLoan and NextDayPersonalLoan’s offerings, be aware that some lenders’ APRs may come in at 36% or more. Therefore, it’s essential to read the terms and conditions to understand what you’re getting.
Pros:
BadCreditLoans provides funding of $500 to $10,000.
You can obtain APRs of 5.99% to 35.99%.
BadCreditLoans’ network of lenders competes for your business.
You should be able to use BadCreditLoans’ platform in all states.
Checking your rate won’t impact your credit score.
Cons:
Like ZippyLoan, fees vary by lender.
Small loans could have APRs akin to payday loans.
The impact of COVID-19:
Since BadCreditLoans is a comparison site, it can’t amend loan agreements. As a result, you should contact your lender directly to determine if forbearance or hardship programs are available. In addition, you can also call BadCreditLoans at 1-800-245-5626 or email support@badcreditloans.com for helpful advice.
CashUSA
Loan Amount:
$500 – $10,000
APR:
5.99% – 35.99%
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
90 Days – 6 Years
Fees:
Loan origination fees vary by lender
Late payment fees vary by lender
Most lenders don’t charge prepayment fees
Qualification Criteria:
Be at least 18 years of age
Be employed for at least 90 days
Meet your lenders’ minimum income requirement
Have a checking account, work and home phone numbers, and an email address
Fill out your information through CashUSA’s online portal
Average Borrower Profile:
CashUSA connects borrowers with personalized financial product offers from banks and other lenders
If you have bad, fair, good, or excellent credit, financing options are available
CashUSA is more like BadCreditLoans than ZippyLoan because financing ranges from $500 to $10,000, with APRs of 5.99% to 35.99% and terms of 90 days to six years. Therefore, their specifications are identical. However, the comparison site rivals both competitors because it has a vast network of lenders that compete for your business, but like ZippyLoan, fees vary by lender. Also, applying won’t hurt your credit score, and like BadCreditLoans, it only takes a few minutes to process your request. Therefore, loan networks like ZippyLoan, BadCreditLoans, and CashUSA make it easy to view multiple offers with little to no effort. In addition, CashUSA’s services should be available in all states, so borrowers in all regions should be able to apply.
Pros:
CashUSA provides funding of $500 to $10,000.
You can obtain APRs of 5.99% to 35.99%.
CashUSA’s network of lenders competes for your business.
You should be able to use CashUSA’s platform in all states.
Checking your rate won’t impact your credit score.
Cons:
Like BadCreditLoans, fees vary by lender.
Small loans could have APRs akin to payday loans.
The impact of COVID-19:
Since CashUSA is a comparison site, it can’t amend loan agreements. As a result, you should contact your lender directly to determine if forbearance or hardship programs are available. In addition, you can also call CashUSA at 1-866-973-6587 for guidance.
PersonalLoans
Loan Amount:
$1,000 – $35,000
APR:
5.99% – 35.99%
Min. Credit Score:
580
Approval:
1 Day
Terms:
90 Days – 6 Years
Fees:
Loan origination fee of 1% – 5%
You may incur late payment fees after 15-day grace period
Most lenders don’t charge prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 580
The maximum DTI ratio is often 43%
Have recurring employment income or government benefits.
Do not have a pattern of late payments, bankruptcies, or charge offs
Fill out your information through PersonalLoans’ online portal
Average Borrower Profile:
PersonalLoans connects borrowers with personalized financial product offers from banks and other lenders
If you have bad, fair, good, or excellent credit, financing options are available
PersonalLoans is one of the most reputable comparison sites out there, and lenders on the network offer $1,000 to $35,000, with APRs of 5.99% to 35.99% and terms of 90 days to six years. However, PersonalLoans’ APRs and terms are like BadCreditLoans and CashUSA, so all three should meet your needs. However, since BadCreditLoans and CashUSA cap their loans at $10,000, you may prefer PersonalLoans due to the $35,000 loan maximum.
You must have a minimum credit score of 580 to qualify, and there is also a recurring income requirement. For example, this can consist of full-time, part-time, or self-employment income, disability, or Social Security benefits. Finally, PersonalLoans should support borrowers in all states, so if you like ZippyLoan but live in one of the restricted regions, PersonalLoans can help you out.
Pros:
PersonalLoans provides funding of $1,000 to $35,000.
You can obtain APRs of 5.99% to 35.99%.
Checking your rate won’t impact your credit score.
PersonalLoans’ services should be available in all states.
Cons:
PersonalLoans’ origination fee is 1% to 5%.
Some lenders charge late payment fees.
The impact of COVID-19:
Since PersonalLoans is a comparison site, it doesn’t issue loans directly. Moreover, the lenders on PersonalLoans platform determine their deferral and forbearance policies independently. As a result, you need to contact your lender directly to determine the available options.
LendingPoint
Loan Amount:
$2,000 – $36,500
APR:
9.99% – 35.99%
Min. Credit Score:
580
Approval:
1 – 7 Days
Terms:
2 – 5 Years
Fees:
Loan origination fee of 0% to 6%
Late payment fee of up to $30
Insufficient funds fee of $20
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 580
Have a DTI ratio that doesn’t exceed 50%
Have an annual income of at least $25,000
Fill out your information through LendingPoint’s online portal
Contrasting the comparison sites above, LendingPoint is a direct lender like Upstart and Upgrade. Loans range from $2,000 to $36,500, with APRs of 9.99% to 35.99% and terms of two to five years. You need to have an annual income of at least $25,000, but the minimum credit score is only 580. Therefore, LendingPoint is a reliable option if you have bad credit. In addition, applying won’t hurt your credit score, so you won’t get dinged for applying. The only downside is that LendingPoint’s loans are not available in Nevada or West Virginia, which is a lot like PersonalLoans. As a result, borrowers in these regions should consider other lenders on our list.
Pros:
LendingPoint provides funding of $2,000 to $36,500.
You can obtain APRs of 9.99% to 35.99%.
Checking your rate won’t impact your credit score.
Cons:
LendingPoint’s loan origination fee is 0% to 6%.
LendingPoint’s late payment fee is up to $30.
LendingPoint’s insufficient funds fee is $20.
Like PersonalLoans, financing isn’t accessible in all states.
The impact of COVID-19:
LendingPoint doesn’t reference any specific hardship policies. However, you can call the lender at 1-888-969-0959 or email customerservice@lendingpoint.com to learn more about your options.
Upgrade
Loan Amount:
$1,000 – $50,000
APR:
8.49% – 35.99%
Min. Credit Score:
560
Approval:
1 Day
Terms:
2 – 7 Years
Fees:
Loan origination fee of 1.85% – 9.99%
Late payment fee of $10, after a 15-day grace period
Insufficient funds fee of $10
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 560
Have a DTI ratio that doesn’t exceed 75%
Have recurring employment income or government benefits
Fill out your information through Upgrade’s online portal
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49% – 35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. The lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36 – month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower, and your loan offers may not have multiple term lengths available. The actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed-rate loan. There is no fee or penalty for repaying a loan early.
Upgrade provides affordable personal loans, and like UniversalCredit (its partner company), you can apply with a credit score as low as 560 and a DTI ratio as high as 75%. As a result, Upgrade is one of the few lenders willing to work with highly indebted customers. However, UniversalCredit often approves more bad credit borrowers than Upgrade, so you may find the former more suitable. Moreover, both companies are direct lenders, so your experience should be similar.
Upgrade loans range from $1,000 to $50,000, with APRs of 8.49% to 35.99% and terms of two to seven years. However, like LendingClub, financing is not available in Iowa, and applicants in Washington, D.C., and West Virginia can’t apply. Therefore, please consider the other options on our list if you live in these regions.
Pros:
Upgrade provides funding of $1,000 to $50,000.
You can obtain APRs of 8.49% to 35.99%.
Like UniversalCredit, Upgrade accepts borrowers with high DTI ratios.
Checking your rate won’t impact your credit score.
Cons:
Upgrade’s loan origination fee ranges from 1.85% to 9.99%.
A $10 insufficient funds fee may apply.
A $10 late payment fee may apply.
Financing is not available in all states.
The impact of COVID-19:
Upgrade provided loan assistance to borrowers dealing with financial hardship throughout the pandemic. And if you still require relief, Upgrade recommends that you log into your account to connect with a representative. Likewise, you can also call Upgrade at 1-844-319-3909 or email support@upgrade.com.
LendingTree
Loan Amount:
$1,000 – $50,000
APR:
2.49% – 35.99%
Min. Credit Score:
600
Approval:
1 Day
Terms:
1 – 5 Years
Fees:
Loan origination fee of 0% – 3%
You may incur late payment fees
Most lenders don’t charge prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 600
The maximum DTI ratio is often 43%
Have recurring employment income or government benefits
Fill out your information through LendingTree’s online portal
Average Borrower Profile:
Excellent credit scores borrow $20,128 at an APR of 8.83%
Good credit scores borrow $9,818 at an APR of 17.54%
Full-time employees borrow $11,016
Self-employed persons borrow $12,266
Part-time employees borrow $7.944
Unemployed persons borrow $8,254
The majority of personal loans are used for credit card refinancing and debt consolidation
If you have a minimum credit score of 600, LendingTree is a great comparison site for borrowers with bad to fair credit. Lenders’ APRs range from 2.49% to 35.99%, and you can borrow anywhere from $1,000 to $50,000, with terms of one to five years. However, like the other comparison sites on our list, borrowers with poor credit will most likely qualify for an amount near the low-end of the range. As a guidepost, LendingTree divulges its average APRs:
With a credit score of 760+, the average APR is 8.83%.
With a credit score of 720 to 759, the average APR is 12.95%.
With a credit score of 680 to 719, the average APR is 17.54%.
With a credit score of 640 to 679, the average APR is 22.74%.
Also, LendingTree’s services should be available in all states.
Pros:
LendingTree provides funding of $1,000 to $50,000.
You can obtain APRs of 2.49% to 35.99%.
LendingTree’s services should be available in all states.
Checking your rate won’t impact your credit score.
Cons:
Loan origination fees are from 0% to 3%.
Some lenders charge late payment fees.
The impact of COVID-19:
Since LendingTree is a comparison site, it doesn’t issue loans directly. Moreover, the lenders on LendingTree’s platform determine their deferral and forbearance policies independently. As a result, you need to contact your lender directly to determine the available options. For more information, LendingTree created an exhaustive list outlining lenders’ recent policies.
OneMain Financial
Loan Amount:
$1,500 – $20,000
APR:
18.00% – 35.99%
Min. Credit Score:
0
Approval:
1 – 7 Days
Terms:
2 – 5 Years
Fees:
Loan origination fee of 1% to 10%, or $25 to $500
Late payment fee of 1.5% to 15%, or $5 to $30
Insufficient funds fee of $10 to $50
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through OneMain Financial’s online portal
Like ZippyLoan, OneMain Financial has a minimum credit score requirement of 0. As a result, while the former is a comparison site and the latter is a direct lender, both should be at the top of your list if you have bad credit. OneMain Financial extends financing of $1,500 to $20,000, with APRs of 18% to 35.99% and terms of two to five years. However, like ZippyLoan and PersonalLoans, there are some state restrictions. For example, OneMain Financial’s services are available in 44 states. If you live in Alabama ($2,100), California ($3,000), Georgia ($3,100 unless you’re a current customer), North Dakota ($2,000), Ohio ($2,000), or Virginia ($2,600), your loan minimums are higher than $1,500. Also, North Carolina residents can’t borrow any more than $7.500.
Pros:
OneMain Financial provides funding of $1,500 to $20,000.
APRs of 18% to 35.99% are reasonable if you have bad credit.
There is no minimum credit score requirement.
Checking your rate won’t impact your credit score.
Cons:
A loan origination fee of 1% to 10%, or $25 to $500, often applies.
A late payment fee of 1.5% to 15%, or $5 to $30, often applies.
An insufficient funds fee of $10 to $50 often applies.
Minimum and maximum loan amounts vary by state.
Financing is not available in all states.
The impact of COVID-19:
To help its customers stay afloat during the pandemic, OneMain Financial offered payment deferrals and waived late fees. In addition, the loan company also donated funds to the Centers for Disease Control and Prevention (CDC). And if you find yourself requiring further assistance, OneMain Financial recommends that you call the loan company at 1-800-961-5577.
LendingClub
Loan Amount:
$1,000 – $40,000
APR:
7.04% – 35.89%
Min. Credit Score:
600
Approval:
1 – 7 Days
Terms:
3 – 5 Years
Fees:
Loan origination fee of 3% – 6%
You may incur late payment fees
There are no application fees
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 600
Have a DTI ratio that doesn’t exceed 36% – 43%
Have recurring employment income or government benefits
Fill out your information through LendingClub’s online portal
Like Upstart and Happy Money, LendingClub is the third P2P lender to make it on our list. You can borrow anywhere from $1,000 to $40,000, with APRs of 7.04% to 35.89% and terms of three to five years. However, with a minimum credit score requirement of 600, LendingClub’s qualification criteria are like LendingTree and Peerform (another P2P lender that we will review next). Therefore, LendingClub may be more suitable for borrowers with fair credit, but since submitting a request won’t impact your credit score, it doesn’t hurt to apply. However, LendingClub doesn’t offer financing in Iowa (like Upgrade). The lenders’ disclosures state that a good credit history, a low DTI ratio, and an above-average credit score will result in the lowest APRs. As a result, if your debt is high relative to your income, companies like Upgrade and UniversalCredit may offer a greater chance of approval.
Pros:
LendingClub provides funding of $1,000 to $40,000,
You can obtain APRs of 7.04% to 35.89%.
Checking your rate won’t impact your credit score.
Cons:
LendingClub’s loan origination fees range from 3% to 6%.
Late payment fees usually apply.
Like Upgrade, residents of Iowa can’t use LendingClub.
The impact of COVID-19:
LendingClub offered delayed payment programs to members in financial need during the pandemic. If you want to apply for relief, you can call LendingClub’s special care line at 1-877-644-4446.
Avant
Loan Amount:
$2,000 – $35,000
APR:
9.95% – 35.99%
Min. Credit Score:
580
Approval:
1 – 7 Days
Terms:
2 – 5 Years
Fees:
Loan origination fee of up to 4.75%
Late payment fee of up to $25, after a 10-day grace period
Insufficient funds fee of $15
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 580
Have a DTI ratio that doesn’t exceed 70%
Have an annual income of $20,000
Have monthly after-tax income of at least $1,200
Have a monthly cash surplus of $500
Fill out your information through Avant’s online portal
With Avant, you can borrow anywhere from $2,000 to $36,500, with APRs of 9.95% to 35.99% and terms of two to five years. And like LendingPoint and PersonalLoans, the minimum credit score requirement is 580, so it’s a great option if you have bad credit. However, Avant is more like LendingPoint because it’s a direct lender and not a comparison site. To qualify, you need to have an annual income of at least $20,000, and Avant’s personal loans are not available in Colorado, New York, Iowa, Hawaii, Vermont, West Virginia, or Nevada. However, you can apply without hurting your credit score, and submitting a request doesn’t require a commitment.
Pros:
Avant provides funding of $2,000 to $36,500.
You can obtain APRs of 9.95% to 35.99%.
Like PersonalLoans, checking your rate won’t impact your credit score.
Cons:
Avant’s loan origination fee is up to 4.75%.
Avant’s late payment fee is up to $25 after a 10-day grace period.
Avant’s insufficient funds fee is $15.
Like LendingPoint, loans aren’t accessible in all states.
The impact of COVID-19:
Avant offered relief programs to help support struggling borrowers throughout the pandemic. Moreover, if you find yourself unable to make your scheduled loan payments, you can call the lender at 1-800-712-5407. In addition, you can also email support@avant.com.
Peerform
Loan Amount:
$4,000 – $25,000
APR:
5.99% – 29.99%
Min. Credit Score:
600
Approval:
1 – 7 Days
Terms:
3 – 5 Years
Fees:
Loan origination fee of up to 1% to 5%
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
Check processing fee of $15
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 600
Have a DTI ratio that doesn’t exceed 40%
Have at least one bank account and revolving credit line
Have at least a one-year credit history
Have no delinquencies, bankruptcies, collections, or tax liens within the last 12 months
Fill out your information through Peerform’s online portal
Average Borrower Profile:
Peerform doesn’t disclose average personal loan statistics
As the fourth and final P2P lender on our list, Peerform is like Upstart, Happy Money, and LendingClub because it connects you with investors willing to provide loans. As a result, it’s neither a direct lender nor a comparison site. You can borrow anywhere from $4,000 to $25,000, with APRs of 5.99% to 29.99% and terms of three to five years. However, APRs in New York and Colorado max at 15.99% and 12%, respectively.
Peerform states that your DTI ratio can’t exceed 40%. In addition, you must have at least one bank account, one revolving credit line, and one year of credit history. Furthermore, you need a credit score of at least 600 to qualify, so applying at Peerform is like LendingClub and LendingTree. Also noteworthy, Peerform does not offer services in West Virginia, North Dakota, Vermont, Wyoming, Washington, D.C., or Connecticut.
Pros:
Peerform provides funding of $4,000 to $25,000.
You can obtain APRs of 5.99% to 29.99%.
Checking your rate won’t impact your credit score.
Cons:
Peerform’s loan origination fee falls between 1% and 5%.
Peerform’s late payment fee is the greater of $15, or 5% of the amount due, after a 15-day grace period.
A $15 insufficient funds fee may apply.
A $15 check processing fee may apply.
Financing is not available in all states.
The impact of COVID-19:
Peerform doesn’t reference any specific hardship policies. However, you can call the lender at 1-800-338-8049 or email support@peerform.com to learn more about your options.
Happy Money
Loan Amount:
$5,000 – $40,000
APR:
5.99% – 24.99%
Min. Credit Score:
550
Approval:
1 – 7 Days
Terms:
2 – 5 Years
Fees:
Loan origination fee of 0% – 5%
There are no late payment fees
There are no application fees
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 550
The maximum DTI ratio is often 43%
Have recurring employment income or government benefits
Have no current delinquencies
Have a credit history of at least three years
Fill out your information through Happy Money’s online portal
Like Upstart, Happy Money is another P2P lender that helps you obtain affordable financing. You can borrow anywhere from $5,000 to $40,000, with APRs of 5.99% to 24.99% and terms of two to five years. Moreover, unlike the other lenders on our list, Happy Money doesn’t charge late payment fees. In addition, you can reduce your APR by 0.25% to 1% if you send your loan directly to a creditor for debt consolidation. However, financing is not available in Massachusetts or Nevada, and like OneMain Financial and Upstart, loan minimums vary by region. For example, residents of New Mexico ($5,100) and Maryland ($6,100) have to borrow more than $5,000.
Pros:
Happy Money provides funding of $5,000 to $40,000.
You can obtain APRs of 5.99% to 24.99%.
APR discounts are available for debt consolidation loans.
Happy Money doesn’t charge late payment fees.
Checking your rate won’t impact your credit score.
Cons:
Happy Money’s loan origination fees range from 0% to 5%.
You can’t borrow less than $5,000.
Like OneMain Financial and Upstart, some states have different minimum loan requirements.
Residents of Massachusetts and Nevada can’t apply.
The impact of COVID-19:
Happy Money has relief programs that can help borrowers dealing with COVID-19 disruptions or other means of financial hardship. To inquire about the available options, you can call Happy Money at 1-949-346-8740 or email success@happymoney.com.
BMGMoney
Loan Amount:
$500 – $10,000
APR:
16% – 36%
Min. Credit Score:
0
Approval:
1 – 7 Days
Terms:
6 Months – 3 Years
Fees:
One-time processing fee of $0 to $49 depending on your state of residence
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits.
Work at one of BMGMoney’s partner employers
Fill out your information through BMGMoney’s online portal
Average Borrower Profile:
BMGMoney doesn’t disclose average personal loan statistics
BMGMoney is like BadCreditLoans and CashUSA because financing ranges from $500 to $10,000. However, BMGMoney has a unique business model and only provides loans to borrowers that work at select employers. For example, APRs range from 16% to 36%, with terms of six months to three years. And like ZippyLoan and OneMain Financial, there is no minimum credit score requirement. But you must be employed for at least one year at a partner company to qualify, and BMGMoney deducts your payments from your paycheck. Also, you can only apply in 33 states.
Overall, BMGMoney is a niche lender that may be suitable for some borrowers. And if you work for a company on its list and prefer to manage your paycheck and loans in a similar place, BMGMoney may be right.
Pros:
BMGMoney provides funding of $500 to $10,000.
APRs of 16% to 36% are available.
Like ZippyLoan and OneMain Financial, there is no minimum credit score requirement.
Checking your rate won’t impact your credit score.
Cons:
You must work at least one year at one of BMGMoney’s partner employers.
You need to be employed for at least one year to qualify.
Depending on your state of residence, there is a one-time processing fee of $0 to $49.
Financing is not available in all states.
The impact of COVID-19:
While BMGMoney’s repayment policies didn’t change during the pandemic, help is there when you need it. As a result, if you require loan assistance, you can call BMGMoney at 1-800-316-8507 or email customer.service@bmgmoney.com to learn about the available options.
Uprova
Loan Amount:
$300 – $5,000
APR:
34.5% – 35.99%
Min. Credit Score:
580
Approval:
1 – 7 Days
Terms:
9 Months – 3 Years
Fees:
Insufficient funds fee of $25
Late payment fees often apply
There are no application fees
There are no loan origination fees
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 580
Have recurring employment income or government benefits
Fill out your information through Uprova’s online portal
Average Borrower Profile:
Uprova doesn’t disclose average personal loan statistics
Like Avant, LendingPoint, and PersonalLoans, you can apply for a Uprova loan if you have a minimum credit score of 580. Financing ranges from $300 to $5,000, with APRs of 34.5% to 35.99%, and terms of nine months to three years. Like OneBlinc, Uprova is the only lender on our list with a maximum loan limit of $5,000. Companies like Happy Money and Peerform have minimum loan requirements of $5,000 and $4,000, respectively, so Uprova may only be suitable if you need a small sum of money. However, you don’t have to worry about any application, origination, or prepayment fees, though late payment fees often apply, and Uprova levies a $25 insufficient funds fee. In addition, loans are only available in 28 states.
Pros:
Uprova provides funding of $300 to $5,000.
APRs of 34.5% to 35.99% are available.
Uprova doesn’t charge loan origination fees.
Checking your rate won’t impact your credit score.
Cons:
Late payment fees often apply.
Uprova charges a $25 insufficient funds fee.
Financing is not available in all states.
The impact of COVID-19:
Although the pandemic didn’t affect Uprova’s policies, you can still inquire about potential loan deferments. To seek help, you can call Uprova at 1-866-362-3444.
SeedFi
Loan Amount:
$950 – $8,000
APR:
7.42% – 29.99%
Min. Credit Score:
520
Approval:
1 – 7 Days
Terms:
8 – 44 Months
Fees:
Late payment fees are refunded at maturity
There are no loan origination fees
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 520
Have an annual net income of at least $10,000
Fill out your information through SeedFi’s online portal
While SeedFi caps its APRs at 29.99% like Peerform, the two companies’ business models are entirely different. For example, SeedFi’s hybrid product allows you to borrow money now and save for your future. Specifically, its Borrow & Grow program provides half the money upfront and holds the other half for later. It works like this: you can borrow $300 to $4,000 upfront, with another $650 to $4,000 kept in savings until you finish paying off the loan. The total balance is considered your loan amount, and you pay interest on the entire amount.
Moreover, APRs start at 7.42%, and terms range from eight to 44 months. And like Uprova, there are no loan origination or prepayment fees. On top of that, any late charges that you incur are returned to you once you finish paying off the loan. However, SeedFi’s products are only available in 37 states.
Pros:
SeedFi provides funding of $950 to $8,000.
Affordable APRs of 7.42% to 29.99% are available.
Like Uprova, you won’t incur loan origination or prepayment fees.
Late payment fees are refunded when you pay off your loan.
Checking your rate won’t impact your credit score.
Cons:
You only receive half of the loan proceeds upfront.
You incur interest on the funds held in your savings account.
Financing is not available in all states.
The impact of COVID-19:
With a business model aimed at helping Americans streamline their finances, SeedFi helped borrowers overcome the pandemic’s challenges. If you still need assistance, you can call SeedFi at 1-888-858-8248 or email help@seedfi.com.
MarinerFinance
Loan Amount:
$1,000 – $25,000
APR:
18.99% – 35.99%
Min. Credit Score:
0
Approval:
1 – 7 Days
Terms:
1 – 5 Years
Fees:
Processing fee of $25
There are no loan origination fees
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through MarinerFinance’s online portal
Average Borrower Profile:
MarinerFinance doesn’t disclose average personal loan statistics
Like several lenders on our list, MarinerFinance’s minimum loan amount is $1,000, and like Peerform, the maximum is $25,000. APRs range from 18.99% to 35.99%, with terms of one to five years. However, you can only apply for amounts of $1,500 to $15,000 online, and if you want to borrow less than $1,500 or more than $15,000, you must submit an in-person application. But MarinerFinance has a minimum credit score requirement of 0, which like ZippyLoan and OneMain Financial, is a plus if you have very bad credit. For context, BMGMoney doesn’t have a minimum credit score requirement either. However, its niche products are not available to all borrowers. Also, MarinerFinance only offers loans in 27 states, and fees vary depending on your region.
Pros:
MarinerFinance provides funding of $1,000 to $25,000.
APRs of 18.99 to 35.99% are available.
Like ZippyLoan and OneMain Financial, there is no minimum credit score requirement.
There are no loan origination or prepayment fees.
Checking your rate won’t impact your credit score.
Cons:
You can’t apply for small or large loans online.
You may incur a $25 processing fee.
Financing is not available in all states.
The impact of COVID-19:
MarinerFinance created hardship programs to help struggling borrowers during the pandemic. And if you want to inquire about further assistance, you can call MarinerFinance at 1-800-373-4004 or submit a question via the loan company’s contact form.
OneBlinc
Loan Amount:
$1,000 – $5,000
APR:
23% – 35.9%
Min. Credit Score:
0
Approval:
1 – 7 Days
Terms:
6 Months – 3+ Years
Fees:
One-time processing fee of $0 to $88.90 depending on your state of residence
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Work at one of OneBlinc’s partner employers
Fill out your information through OneBlinc’s online portal
Average Borrower Profile:
OneBlinc doesn’t disclose average personal loan statistics
As another solid option, if you have very bad credit, OneBlinc is like ZippyLoan, OneMain Financial, MarinerFinance, and BMGMoney because it approves applicants with low or no credit scores. You can borrow anywhere from $1,000 to $5,000, with APRs of 23% to 35.9%, and terms of six months to more than three years. And like Uprova, OneBlinc is the only other lender on our list that caps its loans at $5,000. As the best comparison, OneBlinc is most like BMGMoney because you must be a federal employee or work at one of OneBlinc’s partner establishments to qualify. Therefore, both companies offer niche products only available to select applicants. So if you work for a company on its list and want to manage your finances in one place, OneBlinc may fit your needs. Also, OneBlinc only offers loans in 24 states, and fees vary by region.
Pros:
OneBlinc provides funding of $1,000 to $5,000.
APRs of 23% to 35.9% are available.
Like ZippyLoan, OneMain Financial, there is no minimum credit score requirement.
Checking your rate won’t impact your credit score.
Cons:
To qualify, you must be a federal employee or work at OneBlinc’s partner establishments.
Depending on your state of residence, there is a one-time processing fee of $0 to $88.90.
Financing is not available in all states.
The impact of COVID-19:
While the coronavirus pandemic didn’t impact OneBlinc’s policies, you can still inquire about potential loan relief programs by calling 1-855-400-0449 or emailing customer@oneblinc.com.
UniversalCredit
Loan Amount:
$1,000 – $50,000
APR:
8.93% – 35.93%
Min. Credit Score:
560
Approval:
1 – 7 Days
Terms:
3 – 5 Years
Fees:
Loan origination fee of 4.25% – 8%
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 560
Have a DTI ratio that doesn’t exceed 75%
Have recurring employment income or government benefits
Have a valid email address and bank account
Fill out your information through UniversalCredit’s online portal
Upgrade powers UniversalCredit. However, the latter often approves more borrowers with low credit scores and high DTI ratios. For example, Upgrade’s average borrower has a credit score of 678 and an annual income of $78,000. Conversely, UniversalCredit’s average borrower has a credit score of 638 and a yearly income of $60,000. Therefore, UniversalCredit is like OneMain Financial since the lender works with borrowers with weaker credit profiles.
You can borrow anywhere from $1,000 to $50,000, with APRs of 8.93% to 35.93% and terms of three to five years. You need a credit score of at least 560, a DTI ratio of no more than 75%, and a valid email address and bank account to qualify. Loan origination fees range from 4.25% to 8%, though UniversalCredit does not charge prepayment penalties. However, since Upgrade’s services are not available in Washington, D.C., Iowa, and West Virginia, UniversalCredit may not extend financing in all states.
Pros:
UniversalCredit provides funding of $1,000 to $50,000.
APRs of 8.93% to 35.93% are available.
UniversalCredit’s average borrower has a lower income and credit score than Upgrade.
Checking your rate won’t impact your credit score.
Cons:
UniversalCredit’s loan origination fee is 4.25% to 8%.
Financing may not be available in all states.
The impact of COVID-19:
UniversalCredit doesn’t list any pandemic-related programs. However, since Upgrade provided loan assistance during the outbreak, UniversalCredit should have similar policies. To learn more, you can call UniversalCredit at 1-877-418-9765 or email support@universal-credit.com.
Can I Obtain a Personal Loan If I Have Bad Credit?
Absolutely!
The lending market is highly flexible, and more and more lenders are opening their doors to borrowers with bad credit. Companies like BadCreditLoans, CashUSA, and Upstart are perfect examples.
Credit scoring models continue to evolve, making it easier for borrowers to get approved than in years past. Instead of just looking at your credit score, lenders now take a holistic approach and examine your entire financial situation. For example, they look at your work history, education, spending activity, and savings balance. Standard terms are as follows:
Bad credit personal loans typically range from $1,000 to $10,000, with APRs of 15% to 35.99%.
Risk assessments underpin companies’ lending standards. And when you have bad credit, lenders demand more interest to compensate for the higher probability of default. That’s why APRs are higher for borrowers with bad credit. However, it’s all relative. You can save money by shopping around, so please consider all of your options before committing.
What Are the Pros and Cons of Bad Credit Personal Loans?
If you’re struggling to pay the bills, bad credit personal loans provide an affordable pathway to ease the financial challenges.
Pros:
Debt consolidation: If you have outstanding debt and your APR is 30%, 40%, or 50%, consolidating with a personal loan is a great way to lower your interest costs. Since personal loan APRs max at 35.99%, they allow you to keep interest costs manageable. Many borrowers with bad credit have even obtained APRs as low as 10%!
Flexible terms: Personal loans offer terms that work for you. If you want a lower monthly payment, increase the loan term. If you can afford a higher one, decrease the loan term. Either way, lenders will help you find a payment structure that fits your budget.
Avoiding payday loans: Borrowers with bad credit assume that payday loans are their only option. And the high APRs do more harm than good. However, bad credit personal loans can lower your interest costs and save you money. The longer repayment schedules also allow for more prudent budgeting.
Repairing your credit score: Lenders want to see a long history of on-time payments. Bad credit personal loans help increase your credit score when you make your monthly scheduled payments. Moreover, doing so can help you obtain cheaper loans in the future.
Greater chance of approval: As the lending market evolved, companies loosened their qualification criteria. Thus, it increases your chances of approval, as bad credit lenders remain focused on winning new customers.
Cons:
Potential credit score reduction: If you take out a personal loan and happen to suffer an emergency, you may miss payments. It will hurt your credit score and worsen your financial situation if this happens.
Falling victim to loan scams: Scammers prey on this vulnerability because many borrowers are in desperate situations. They may ask for upfront payment or make outlandish promises to hook you in. Either way, it’s a terrible ordeal. To stay protected, see our guide on how to spot loan scams.
High APRs: Interest rates of 15% to 35.99% result in high financing costs. As a result, while bad credit personal loans are relatively better than other products, they still require high-interest expenditures.
Lower loan amounts: Standard personal loans can reach upwards of $100,000 or more. However, bad credit personal loans typically max at $10,000. Therefore, you may not qualify for all that you need.
Approval rates vary: While more borrowers succeed than in years past, not everyone will qualify. Thus, bad credit personal loans may be unavailable for some applicants.
Loan Options For Borrowers With Borderline Credit Scores
If you submitted several applications and still can’t obtain a bad credit personal loan, other products are available. These loans are more expensive than bad credit personal loans, but they’re cheaper than payday loans. Moreover, we never have and never will recommend payday loans, and these solutions are better if you have really bad credit.
Our guide on payday loan alternatives lists fallback options, and our other study reviews 25 alternative payday lenders that issue financing to borrowers with very bad or no credit. Again, we only recommend these products for emergencies or when you have no other option. Please browse our marketplace and submit several bad credit personal loan applications before settling for any alternative payday loan.
Conversely, if your credit score is near the high-end of the bad credit range, you may qualify for a fair credit personal loan. Companies like Upstart, Avant, HappyMoneyLoan, LendingTree, and Upgrade provide low-cost personal loans with flexible terms. Thus, if your credit score ranges from 600 to 690, you may qualify for an APR of 10% to 15%. Our other study breaks down what to expect if you have fair credit.
What Loans Should I Avoid?
Companies often try and mask destructive products as personal loans. They use confusing terminology and misleading marketing to trick borrowers into thinking their terms are better than they are.
Car title loans:
Car title loans are secured loans that require you to put up your car as collateral. Doing so will help decrease your APR, but lenders can seize your property if you fall behind on your payments.
Have a look at the facts:
According to the Consumer Financial Protection Bureau (CFPB), car title loans have an average APR of 300%.
About 20% of car title loan borrowers end up losing their car.
Many car title loans have hidden fees and rollover charges.
People often fall behind on their payments and get stuck paying interest-only; this increases your risk of falling into a vicious debt cycle.
Payday loans:
Payday loans are highly destructive and often spiral borrowers into a vicious debt cycle. APRs average 400%, and if you’re late on your payment, you can rack up so many charges that you’re stuck paying interest-only for months.
Payday lenders are also highly aggressive:
The CFPB found that 20,000 bank account holders who made payments to online payday lenders incurred an average of $97 in overdraft and non-sufficient funds fees. The figure is nearly three times more than the $34 incurred by the average American.
How Do I Increase My Chances of Obtaining a Personal Loan?
If you fail now, try again! There are lenders out there that will work with you!
Shop around:
Before giving up, apply to as many companies as you can. We recommend ten or more. It increases your chances of getting approved, and applying doesn’t hurt your credit score.
Talk directly with potential lenders:
If your online application fails, call the lender directly. Ask why your application wasn’t approved and see if there is any way to amend the result. At the very least, you’ll gain insight into the denial and how you can prevent it from happening next time.
Ask for a lower amount:
Often, lenders are wary about offering large loans to borrowers with bad credit. However, if you ask for a lower amount, the lender may feel more comfortable granting the loan.
Why Did We Select These Lenders?
We analyzed more than 100 lenders to determine which products have the best terms and the lowest APRs. Loan companies have different definitions of bad credit, and their minimum credit scores vary. Moreover, some have annual income requirements, while others’ terms differ by state. Overall, the products above cover the entire bad credit lending market and should meet the needs of most borrowers.
Conclusion
A bad credit score is not the end of the world. Affordable products are available, and APRs of 15% to 35.99% offer decent pathways to rebuild your credit. Moreover, new technology has increased the speed and reliability of lenders’ underwriting process, which allows them to approve more applications and reduce APRs. Therefore, the days of payday lenders controlling the poor credit market are long gone. The key is to submit several applications. Since loan inquiries don’t impact your credit score, gauging lenders’ interest won’t hurt you. Submitting multiple applications also increases your chances of success. And when you plan, it saves you money in the long run.
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