5 best loans for bad credit in August 2024
To get approved for a loan with bad credit, there are a few things you should do first. 1) Know your FICO credit score to identify which lenders are most likely to give you a loan. 2) Be prepared to pay an interest rate north of 30% — 31.39% was the average personal loan rate for Credible users with scores less than 600 on 5-year loans. 3) Strengthen your application by taking steps to improve your credit or income, or to reduce monthly debt payments.
We cover how to get a personal loan with bad credit, starting with a list of the best lenders for bad credit.
Advertiser DisclosureFox Money rating
Fixed (APR)
7.80% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Eligibility
Available nationwide
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Fox Money rating
Fixed (APR)
9.95% - 35.99%
Loan Amounts
$2000 to $35000
Min. Credit Score
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
2 to 5 years
Fox Money rating
Fixed (APR)
9.99% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Fox Money rating
Fixed (APR)
11.69% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Fox Money rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1500 to $20000
Min. Credit Score
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Fox Business does not make or arrange loans.
The Fair Isaac Corporation (FICO) has the most commonly used credit scoring model in the U.S. The model rates credit scores under 580 as “poor,” or bad. Since most lenders prefer to lend to borrowers with good credit, it’s important to find a lender that will consider bad-credit borrowers before you apply.
You can see credit score minimums for each lender below, so check your FICO score from the credit bureaus directly, or use a credit score app. (We’ve included a few lenders with credit scores slightly above 580, if you’re on the cusp.)
Best for fair credit
Upgrade
Fox Money rating
Est. APR
9.99 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
600
Pros and cons
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
More details
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Best debt consolidation loans for bad credit
Universal Credit
Fox Money rating
Est. APR
11.69 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
560
Pros and cons
Borrowers with bad credit considered
No minimum income requirement
Autopay and direct pay discounts available
Can fund in one business day
High APRs
Potentially high origination fees
Not available in Iowa
More details
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Best for all credit types
Avant
Fox Money rating
Est. APR
9.95 - 35.99%
Loan Amount
$2000 to $35000
Min. Credit Score
550
Pros and cons
Borrowers with bad credit considered
Funds as soon as the next business day
2-year loan terms available
No discounts offered
Origination fee
Not available in HI, IA, MA, ME, NY, VT, or WV
More details
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
2 to 5 years
Best bad credit personal loans
OneMain Financial
Fox Money rating
Est. APR
18.00 - 35.99%
Loan Amount
$1500 to $20000
Min. Credit Score
540
Pros and cons
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
Availability
Origination fees
High starting APR
More details
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Best fast personal loans for all credit types
Upstart
Fox Money rating
Est. APR
7.80 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
620
Pros and cons
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
May charge a high origination fee
No discounts offered
More details
Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Eligibility
Available nationwide
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
We evaluated the best personal loans for bad credit based on factors such as minimum credit score requirement, customer experience, maximum APR, maximum loan amount, funding time, loan terms, fees, discounts, whether secured loans are available, and whether cosigners are accepted. Our team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.
Read our full lender rating methodology for more information.
Best for: Bad-credit borrowers with a stable and reliable income, borderline bad credit, or those who have a willing cosigner
A personal loan isn’t the only type of bad-credit loan you can get, but it’s generally the best and first to try for. If you can get a personal loan with bad credit, your rate will generally be capped at 36%, whereas other loan types have annual percentage rates (APRs) that can run into the triple digits.
Personal loans also have much longer repayment terms (up to seven years with many lenders), which makes monthly payments smaller and easier to budget for. Plus, personal loan payments are reported to the credit bureaus, so you can improve your credit score if you make on-time payments.
Since collateral isn’t required, personal loan approvals can be quick, and the money could be in your bank account as soon as the same day or the next business day once you’re approved.
Best for: Borrowers that have an asset, such as a car, savings account, or home equity that they’re willing to pledge as collateral
A secured loan is one that is secured by collateral, such as your car, home, or a savings account. Well-known types of secured loans include mortgages and auto loans, but some lenders offer secured personal loans.
To get a secured loan, you need to pledge an asset as collateral, which means the lender can seize the asset if you default on the loan. Below are a few personal loan lenders that offer secured loans. Note that you’ll still need to meet the minimum credit score requirements to qualify.
Fox Money rating
Fixed (APR)
8.99% - 35.99%
Loan Amounts
$2000 to $50000
Min. Credit Score
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Fox Money rating
Fixed (APR)
9.99% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Fox Money rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1500 to $20000
Min. Credit Score
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Fox Business does not make or arrange loans.
Best for: Borrowers that have a family member or friend who’s willing to vouch for them on a loan
A cosigner is someone who promises to make loan payments if you don’t. The lender considers their income, credit score, and current debt (in addition to yours) when deciding whether to approve the loan and set the rate. Unlike a co-borrower, a cosigner doesn’t have access to loan funds, but is on the hook if you miss payments.
This individual is typically someone you have a close and trusted relationship with, like a family member or long-term friend. However, keep in mind that since they’re also liable for the debt, their credit can be adversely affected by nonpayment and late payments.
You can find personal loans with a cosigner from a handful of lenders.
Fox Money rating
Fixed (APR)
8.98% - 35.99%
Loan Amounts
$1000 to $40000
Min. Credit Score
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Loan amount
$1,000 to $40,000
Fees
Origination fee
Eligibility
Available in all 50 states
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
Within 3 days
Loan uses
Debt consolidation, paying off credit cards
Fox Money rating
Fixed (APR)
8.99% - 29.99%1
Loan Amounts
$5000 to $100000
Min. Credit Score
Does not disclose
Overview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Loan Amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Fox Money rating
Fixed (APR)
8.99% - 35.99%
Loan Amounts
$2000 to $50000
Min. Credit Score
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Fox Money rating
Fixed (APR)
9.95% - 35.99%
Loan Amounts
$2000 to $35000
Min. Credit Score
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
2 to 5 years
Fox Money rating
Fixed (APR)
9.99% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Fox Business does not make or arrange loans.
Best for: Small same-day loans that can be repaid within two weeks; or longer-term loans if you can’t qualify for a traditional personal loan
Loans that fund as soon as the same day you apply can be considered emergency loans. Some personal loans, as well as cash advance apps and payday loans, fall in this category. How they differ generally relates to the fees or APRs they charge, whether they check your credit, and repayment terms.
- Payday alternative loans (PALs): Many credit unions offer PALs to existing and new members that are designed to be used instead of payday loans, which can often be predatory. PALs are available up to $2,000, have repayment terms up to 12 months, and cap APRs at 28%.
- Cash advance apps: If you’re in need of a few hundred dollars to get you through until next payday, a cash advance via a cash app may be an option. However, these apps can get expensive if you expedite funds for instant delivery. For example, a $5 fee to expedite a $200 cash advance with EarnIn equates to a 65% APR.
- Bad-credit installment loans: There are also installment loan lenders, such as OppLoans, that offer bad-credit loans that can be repaid in monthly installments over a period of years at APRs in the triple digits. While expensive, such lenders are generally a much better option than payday loans.
- Payday loans: Payday loans are often high-fee, two-week, single-pay loans that may create more problems than they solve. How expensive they are depends on your state — for example, payday loan lenders in Idaho charged an average APR of 652% on $500 payday loans, according to Pew research. Lenders often won’t check your credit, though online payday loan lenders may run a soft check. Payday loans can be enticing, as they offer quick access to easy-to-qualify-for cash, but are best avoided.
- “Buy now, pay later” (BNPL): If you need a loan for a retail purchase — say, to replace a broken appliance, buy a plane ticket, or refresh your wardrobe — BNPL could be a relatively low-cost way to cover it. BNPL lenders include Affirm, Afterpay, Klarna, PayPal, Sezzle, and Zip. BNPL lenders may let you borrow at a 0% interest rate if you can pay off the purchase within 4 to 6 biweekly installments. Some BNPL lenders may run a soft or hard credit check.
Personal loans for bad credit can be found through some banks, credit unions, and online lenders. Most will require a credit check and a full application, which triggers a hard pull on your credit report. But fortunately, you can prequalify without any impact to your credit score, which can give you an idea of which lenders will consider your application and may approve your loan.
Personal loans are available from under $1,000 to $50,000 or more, and repayment terms typically last from one to seven years. Personal loan interest rates generally range from around 6% to 36%, but with bad credit, you should expect a rate at the higher end of that range.
If you need a small loan amount, you may be able to get a small bank loan as an existing customer. For example, Wells Fargo and Chase offer loans up to $500 to eligible customers without a credit check.
Learn More: Where can I get a personal loan?
Note
With bad credit, you’re more likely to pay an origination fee on a personal loan. This fee increases the loan’s cost and is taken out up front from the loan proceeds, which reduces the loan amount.
When you apply for a personal loan, lenders look at a combination of factors related to your ability to pay the loan back. For example, they consider the amount you’d like to borrow, your monthly income and outstanding debts, your past borrowing behavior, how stable your income is, and whether you have a cosigner.
Through your credit score and credit report, lenders gauge the likelihood that you’ll repay the loan. If your credit score is low, it suggests you’ve had difficulties making payments on time or in full. This is why it’s crucial to apply with a lender that has a minimum credit score requirement lower than yours. For example, Universal Credit requires a minimum credit score of 560, while OneMain Financial doesn’t have a minimum credit score requirement.
A poor credit background can make lenders less willing to lend you money. However, you can increase your chances of approval for a personal loan with a cosigner or by securing the loan with collateral.
Tip
Prequalify with multiple lenders first to see which you’re more likely to qualify with. Prequalification doesn’t hurt your credit, but once you apply, your score could temporarily drop by a few points.
Learn More: What is personal loan pre-approval?
You don’t need to make a lot of money to qualify for a personal loan, but you do need to make at least the lender’s minimum income amount. For instance, OneMain Financial and Universal Credit don’t set a required minimum income, while Happy Money and Upgrade require a minimum income of $25,000 (on loans made through Credible).
You also need to make enough to afford loan payments. If you have bad credit, you’ll likely have higher payments on the same loan amount relative to someone with good credit. In other words, the same loan could cost you a lot more on a monthly basis. This is why it’s important to prequalify to see what rates you might be approved for, and potential monthly repayment amounts. Make sure you can afford payments so you can rebuild your credit in order to qualify for lower rates (and pay less to borrow) in the future.
Lenders also consider your monthly debt when determining whether to offer a loan. Specifically, they look at your debt-to-income ratio (DTI), which is a simple calculation that expresses your minimum monthly debt payments as a percentage of your income. Most lenders prefer a DTI below 36%, but some, like Upstart, will consider a DTI up to 45% or 50%, depending on where you live.
You can use our DTI calculator to figure out yours, or use your phone’s calculator and these steps:
For example, if you have a $500 car payment, a $150 minimum credit card payment, and a $200 personal loan payment, your total minimum monthly debt obligation is $850. If your gross monthly income is $4,000, your DTI is 21%.
($500 + $150 + $200) / $4,000 = 0.2125
0.2125 x 100 = 21.25% DTI
While improving your credit score can take months, there are some quick credit wins you may be able to use:
If you don’t have a willing cosigner who can help you get an unsecured loan, another option is to find a secured personal loan. Secured loans require that the loan is tied to collateral, like a bank deposit, car, or other value-based asset.
Since the loan is secured with the collateral, it reduces the financial risk for lenders. As a result, you have a better chance at getting approved.
Tip
Collateral is something of value you own, like your car or a savings account, that you use to secure a loan. If you default on the loan, the lender can take your collateral.
Your annual percentage rate (APR) can be lower than that on an unsecured loan. The APR is your annual cost of borrowing the loan, including up-front fees, like administrative and origination fees. The lower your interest rate, the less you’ll spend on the loan overall.
Just know that if you don’t make your full, on-time monthly payments, the lender can use your collateral to pay off your loan.
Fox Money rating
Fixed (APR)
8.99% - 35.99%
Loan Amounts
$2000 to $50000
Min. Credit Score
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Fox Money rating
Fixed (APR)
9.99% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Fox Money rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1500 to $20000
Min. Credit Score
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Fox Business does not make or arrange loans.
If you need a personal loan with bad credit, follow these steps:
Learn More: How to get a personal loan
Secured and cosigned personal loans can be good options for bad credit. Both allow lenders to mitigate risk of nonpayment, which makes them more likely to approve your application and/or give you a lower rate. If you default, the bank can use the collateral on a secured loan to cover the debt; for cosigned loans, the cosigner is legally responsible for the debt if you don’t pay.
You can get a debt consolidation loan with bad credit by seeking a lender with a low minimum credit score requirement and by securing the loan with collateral, such as your home. You should also consider a range of loan types, including personal loans and home equity loans, to consolidate debt.
The best fast loans for bad credit may be small loans offered by your bank or credit union, since these are most likely to have reasonable APRs. For example, credit unions offer payday alternative loans that are designed for borrowers with bad credit who need same-day funds — APRs are capped at 28%. Another option is applying for an emergency personal loan with a lender that has a low minimum credit score requirement.
Meet the contributor:Jennifer Calonia
Jennifer Calonia is a personal finance writer and editor who was born, raised, and currently resides in Los Angeles. She believes smart money management starts with making financial concepts and advice accessible to the everyday person.
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