📚 Info Only
🏆 Expert Reviewed

Best Personal Loans
for Bad Credit

Complete guide to understanding your options, comparing lenders, and knowing what to expect before you apply.

$1K–$50KTypical Loan Range
300+Min. Credit Score
6.99%Rates Start At
~24 hrsAvg. Funding Time
🔄 Information reviewed regularly by our editorial team
📋 Overview

Can You Get a Loan with Bad Credit?

Yes — more lenders than ever work with bad credit borrowers.

Traditional banks usually decline applicants with scores below 620. But a growing number of online lenders and fintech platforms now specialize in bad credit personal loans. They look beyond your score and consider your income, employment history, and overall ability to repay.

💡

What counts as "Bad Credit"?

Most lenders consider a FICO score below 580 as poor or bad credit. Scores between 580–669 are considered fair. Some lenders on this list work with scores as low as 300.

🏆 Top Lenders

Best Lenders for Bad Credit

We reviewed 30+ lenders — here are the top 5 for bad credit borrowers.

⭐ Editor's Top Pick — Best Overall
UP

Upstart

AI-powered lender — approves who banks reject

★★★★★ 4.9/5 · ⚡ Same-day funding possible
APR Range
6.99–35.99%
Min Score
300
Loan Amount
$1K–$50K
Loan Term
36–60 mo
Funding
1 day
Orig. Fee
0–12%

✅ Pros

  • Accepts score from 300
  • Same-day funding
  • Soft check to pre-qualify
  • Excellent user ratings

❌ Cons

  • Only 2 term options
  • Origination fee up to 12%
  • No co-signer option
Best For Borrowers with very low scores (300–580) who have steady income.
LC

LendingClub

Best for debt consolidation with bad credit

★★★★☆ 4.6/5 · ⚡ Same-day funding possible
APR Range
8.91–35.99%
Min Score
600
Loan Amount
$1K–$40K
Loan Term
24–60 mo
Funding
Same day
Orig. Fee
3–8%

✅ Pros

  • Pays creditors directly
  • Joint loan option available
  • Flexible repayment terms

❌ Cons

  • Requires 600 min score
  • Charges origination fee
Best For People who want to consolidate multiple debts into one monthly payment.
AV

Avant

Best for fair to bad credit borrowers

★★★★☆ 4.4/5 · ⚡ Next-day funding
APR Range
9.95–35.99%
Min Score
550
Loan Amount
$2K–$35K
Loan Term
24–60 mo
Funding
Next day
Admin Fee
Up to 9.99%

✅ Pros

  • Accepts score from 550
  • Competitive APR for subprime
  • Easy mobile app management

❌ Cons

  • High admin fee possible
  • Not available in all states
Best For Borrowers with fair credit (550–620) looking for reasonable rates.
UG

Upgrade

Best for rate discounts & long terms

★★★★☆ 4.5/5 · ⚡ 1–4 day funding
APR Range
9.99–35.99%
Min Score
560
Loan Amount
$1K–$50K
Loan Term
24–84 mo
Funding
1–4 days
Orig. Fee
1.85–9.99%

✅ Pros

  • Multiple rate discounts
  • Co-signed & secured options
  • Longest terms up to 84 mo

❌ Cons

  • Origination fee required
  • Can't change payment date
Best For Borrowers who want low monthly payments via longer loan terms.
PR

Prosper

Best for applying with a co-borrower

★★★★☆ 4.3/5 · ⚡ 1–3 day funding
APR Range
8.99–35.99%
Min Score
600
Loan Amount
$2K–$50K
Loan Term
24–60 mo
Funding
1–3 days
Orig. Fee
1–9.99%

✅ Pros

  • Co-applicant option
  • Established lender since 2005
  • Flexible loan uses

❌ Cons

  • Needs 600 minimum score
  • No secured loan option
Best For Borrowers who can apply with a co-borrower to improve approval odds.
📊 Compare

Quick Comparison Table

All 5 lenders side by side at a glance.

LenderAPR RangeMin ScoreLoan AmountSpeed
Upstart6.99–35.99%300$1K–$50K1 day
LendingClub8.91–35.99%600$1K–$40KSame day
Avant9.95–35.99%550$2K–$35KNext day
Upgrade9.99–35.99%560$1K–$50K1–4 days
Prosper8.99–35.99%600$2K–$50K1–3 days
📈 Credit Guide

Credit Score Ranges Explained

Where do you fall — and what options do you have?

300–579
Poor
Very limited. Upstart still possible with income proof.
580–669
Fair
Multiple online lenders available at fair rates.
670–739
Good
Good rates from most lenders with easy approval.
740–799
Very Good
Low rates and flexible terms across all lenders.
800+
Excellent
Best available rates and highest loan amounts. Full lender access.

🧮 Loan EMI Calculator

Estimated Monthly Payment
$195.65
Total repaid: $7,043.40  |  Interest paid: $2,043.40
🛠️ Step-by-Step

How to Get Approved with Bad Credit

5 steps to maximize your chances before you apply.

1

Check Your Credit Report for Errors

Get your free report from AnnualCreditReport.com. Dispute any inaccuracies — even a small error can lower your score by 20–50 points unnecessarily.

2

Pre-Qualify Without Hurting Your Score

Most lenders offer a soft-credit pre-qualification. You can see your likely rate and terms before formally applying — with zero impact on your credit score.

3

Compare at Least 3–5 Lenders

APRs can vary by 10–15% between lenders for the same profile. Always compare the full APR including origination fees — not just the base interest rate.

4

Consider a Co-Signer or Collateral

Adding a co-signer with good credit can significantly lower your rate. Secured personal loans backed by savings or assets also improve approval odds for bad credit borrowers.

5

Choose the Right Loan Term

Shorter terms mean higher monthly payments but much less total interest paid. Pick the shortest term your monthly budget can comfortably handle.

⚠️

Watch Out for These Red Flags

Avoid lenders charging APRs above 36%, requiring upfront fees before approval, or claiming "guaranteed approval with no credit check." These are almost always predatory payday lenders.

📄 Checklist

Documents You'll Need

Keep these ready before you apply for faster processing.

❓ FAQ

Frequently Asked Questions

Honest answers to the most common bad credit loan questions.

Yes. Lenders like Upstart consider applicants with scores as low as 300. They evaluate your income, employment history, and debt-to-income ratio alongside your score. Having a steady income is often more important than a high credit score with these lenders.
Upstart and Avant are generally the easiest to qualify for because they use alternative approval criteria beyond just FICO scores — including education level, work history, and income stability when evaluating your application.
Pre-qualifying uses a soft credit check and does NOT affect your score at all. A hard inquiry only happens on formal application and may cause a small 5–10 point temporary dip. Multiple applications within 14–45 days are usually treated as one inquiry by scoring models.
Many online lenders offer same-day or next-business-day funding after approval. Have your ID, income documents, and bank account details ready before you apply to speed up the process significantly.
Yes. On-time monthly payments are reported to all three major credit bureaus — Experian, TransUnion, and Equifax — and will gradually improve your score. A personal loan also diversifies your credit mix, which accounts for about 10% of your total FICO score.
An unsecured personal loan needs no collateral. A secured loan is backed by an asset like a car or savings account — this reduces lender risk and typically results in lower interest rates and better approval odds for bad credit borrowers.
Disclaimer: The information on this page is purely for educational and informational purposes. AllFinanceStore.com is not a lender, broker, or financial advisor. All loan details, rates, and lender information are gathered from publicly available sources and may change. Always verify details directly with the lender before making any financial decisions.