Best Personal Loans for Bad Credit, 2024
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Personal loans can look appealing if you’re dealing with a home improvement project, an unexpected expense, or looking into debt consolidation. Sometimes, you need extra money quickly, and personal loans can help, especially because you can use them. But if you pull up your credit report and your credit is bad, you may not qualify for personal loans. Still, there are specific companies that offer bad credit loans. Read on to learn more about where to apply for a personal loan if you don’t have a great credit history. Many of these online lenders can make the process simple and convenient, even with poor credit.
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Overview of the seven best personal loans for bad credit
Platform | Best for |
Upstart | Larger loans (up to $50,000) |
Avant | Low APR for borrowers with fair credit |
OppLoans | Smaller loans (min $500) |
LendingClub | Multiple loan offers |
OneMain Financial | Multiple options for repayment terms |
LendingPoint | Flexible options |
FundsJoy | Small-dollar loans |
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
Best personal loans for bad credit
Upstart
Whether you need a smaller loan of just $1,000 to cover an expense or a larger loan, Upstart can help. Upstart offers personal loans from $1,000 to $50,000. On top of that, according to their site, a whopping 99% of applicants get their funding the next day.
So if you need a loan fast, this could be a good option. The interest rates range from 6.4% to 35.99%. The repayment terms on Upstart personal loans are either three or five years.
There are no prepayment penalties if you want to pay down the personal loan early. To verify eligibility, you can check your rate on their site in five minutes without affecting your credit score. You must have a minimum credit score of 300 or above to qualify.
On the site, the loans are marketed “for any occasion,” with examples such as moving, medical debt, home improvement, debt consolidation, and more. So, whatever your personal loan needs are, you can get them covered. Just remember only to borrow what you need.
Avant
Avant is one online lender that offers personal loans between $2,000 and $35,000. The interest rates on these personal loans will vary depending on your credit, but they could be as low as 9.95% and as high as 35.99%. Most of the Avant customers have credit scores between 600 and 700.
The repayment terms are between 12 to 60 months. It’s important to note, though, that there is an administrative fee of up to 4.75%. WebBank is the originator of personal loans.
Repayment is also made easy with an online app and options for automatic payments. Since personal loans are considered installment loans, your monthly payments are fixed. Fixed payments remain the same throughout the repayment term, so you’ll know exactly what you need to budget.
You could get your Avant personal loan funding the next business day. If there are any issues, you can also contact a real person to get assistance. According to the site, the company has helped one million customers.
OppLoans
If you need a smaller personal loan, then you want to consider OppLoans. Through OppLoans, you can take out a personal loan as low as $500 up to $4,000. While this is a smaller amount than the other lenders, that can work in your favor if you need something within that range. The company doesn’t have a minimum credit score and reviews other factors to determine eligibility.
The company offers repayment terms of between 9 and 18 months. One thing to be aware of is that OppLoans has much higher interest rates (APR) than the lenders above. The APR can range from 59% to 160%. It's not as bad when you compare the APR to payday loans, which are often as high as 400%.
The personal loan is unsecured, so it doesn’t need any collateral like a deposit or item of value to back the loan. The company says they can deposit the personal loan into your bank account within one business day.
The company reports to all three credit bureaus. So, unlike payday loans for fast funding, a personal loan from OppLoans can offer that and help you build credit if you make on-time payments.
LendingClub
LendingClub is a peer-to-peer marketplace that offers personal loans of $1,000 to $40,000. The personal loan has fixed monthly payments and competitive interest rates. On top of that, there aren’t prepayment penalties, so you can pay off the loan ahead of schedule. LendingClub has a minimum credit score requirement of 600.
You'll get multiple loan offers when you apply for a personal loan through LendingClub. Loan terms are 36 or 60 months, so three or five years. You can check your rate in minutes without hurting your credit score. The APR can range from 9.57% to 35.99%. You should note that there is an origination fee of 3.00% to 8.00% of your total loan.
You'll receive your money after being approved and funded by an investor. The money can take up to four days to hit your bank account, but some loans are funded within 24 hours following approval. To repay your personal loan, you can set up automatic payments from your bank account.
According to the LendingClub website, the company has served more than four million customers. The amount borrowed through LendingClub exceeds a whopping $60 billion.
OneMain Financial
OneMain Financial is a lender that’s been around for a century and offers personal loans. Through OneMain Financial, you could borrow $1,500 to $20,000. Typically, personal loans have better interest rates than credit cards, but that’s not the case with this loan.
Personal loans from OneMain Financial have interest rates between 18.00% and 35.99%, comparable to or even higher than credit card interest rates.
The repayment terms vary, and you can choose from 24 to 60-month terms. Once you apply and get approved, you’ll need to visit a branch to complete additional paperwork and chat with a loan specialist. OneMain Financial doesn’t list minimum credit score requirements.
OneMain Financial may offer you either a secured or unsecured personal loan. Some form of collateral backs a secured loan. That could be something like your car, for example. So, if you do not repay the loan, the car can be seized to repay the secured loan. The rates that you get will be dependent on your credit history, the debt amount, as well as your income, and expenses.
LendingPoint
Another option to consider for personal loans is LendingPoint. The company offers personal loans of $2,000 to $36,500. LendingPoint doesn't offer loans to consumers in Nevada and West Virginia.
LendingPoint has flexible options so you can cater the loan to your needs, with repayment terms of 24 to 72 months. You can check your rate on the site without affecting your credit score. The APR can range from 7.99% to 35.99%. The company considers your income, employment, financial history, and credit to determine eligibility. LendingPoint has a minimum credit score of 600 to qualify and may charge an origination fee of up to 10% of the loan amount.
If approved for a personal loan, you could get your funding as soon as the next business day. The loan also has no prepayment penalties, meaning you won’t get dinged if you end up paying the loan before the repayment term ends.
FundsJoy
Although not a lender, FundsJoy can connect you to lenders who will finance your needs when you need cash fast. It can also help those with bad credit find payday loans if funds are needed immediately.
You can choose the amount you need (between $200 and $5,000), no matter your credit score, and FundsJoy will match you with a loan available within 24 hours of application. It especially touts it can help those with bad credit find loans more easily. Because Fundsjoy is not involved in the lending process, the company says on its website that it cannot accurately predict the APR you'll receive.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
Overview of best personal loans for bad credit
Loan | Amount | APR | Min. credit score |
Upstart | $1,000 to $50,000 | 6.4% to 35.99% | 300 |
Avant | $2,000 to $35,000 | 9.95% to 35.99% | Between 600 and 700 |
OppLoans | $500 to $4,000 | 59% to 160% | NA |
LendingClub | $1,000 to $40,000 | 9.57% to 35.99% | 600 |
OneMain Financial | $1,500 to $20,000 | 18% to 35.99% | NA |
LendingPoint | $2,000 to $36,500 | 7.99% to 35.99% | 600 |
FundsJoy | $200 to $5,000 | NA | NA |
FAQs
What is a good credit score?
If you have bad credit, you probably want to know what is considered a “good” credit score. According to the credit bureau Experian, a credit score of 700 or above is considered good. But FICO, which is the major credit score model used, has a different breakdown and oftentimes your FICO score matters most. FICO considers less than 580 a Poor credit score, anything 580-669 a Fair credit score, and a Good credit score is anything 670-739. If you have a credit score between 740-799 that is considered Very Good and anything above 800 is Exceptional.
How can I improve my credit?
Your credit shows a lender how responsible you are as a borrower. If you have bad credit, you want to boost your credit score. That way you can increase your chances of getting approved but more importantly, you can score a better interest rate, which can save money over time. To improve your credit, it’s important to know what factors contribute to your credit score. Your payment history makes up the bulk of it at 35%. Next, your amounts owed, or how much you’ve borrowed makes up 30%. How long you’ve had credit, which is your length of credit history, contributes 15% of your score. Credit mix, or how many types of loans you have makes up 10% and another 10% comes from new credit. Lenders find it risky if you consistently apply for new credit. These factors mean every late payment you make or if your debt-to-income ratio is high, you could have a bad credit score and that means high interest rates even if you do qualify for bad credit loan options. To lower interest rates, the main thing you can do to improve your credit is to make all of your payments on time. The next best thing is to keep your balances low on your credit cards, ideally below 30%. Using up too much of your credit is considered risky to lenders. Taking these two steps should help improve credit.
What should I look out for when considering a personal loan?
If you’re in the market for a personal loan, the main thing you want to compare is the Annual Percentage Rate (APR). Your APR will affect how much you pay in interest and your creditworthiness affects your loan rates. You also want to consider the repayment term, or how long you have to pay back the loan. The longer the repayment term, the smaller your monthly payment will be. Conversely, if you have a shorter repayment term, your monthly payment will be larger. You want to make sure to find something that fits within your budget and that you can afford to pay back. Plus, review any minimum loan amounts and maximum loan amounts. You can go online and check out reviews from the Better Business Bureau and find consumer reviews at TrustPilot. Lastly, check for any fees, such as origination fees which can cost you even more money.
When personal loans make sense
The lenders listed above can help you score a personal loan if you need extra money. Personal loans are good alternatives to credit cards, as often they have a lower APR. So, a personal loan can make sense if you want to consolidate your debt or pay for an emergency.
Personal loans are better than payday loans, which have exorbitant interest rates. Typically, personal loans can distribute money relatively quickly. In many cases listed above, sometimes as soon as one business day.
If you take out a personal loan, ensure you only borrow the amount you need. Make sure to exhaust your other options first before taking out a loan. A loan can be costly, and it’s tough (and not fun) to pay back debt.
Make sure you have a plan to pay it back and can afford to do so with the repayment term you’ve chosen. The key is to be a responsible borrower and use the loan to your advantage. Use it for your needs and pay it back on time or early. You can build your credit and lower the amount you pay in interest.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
How to avoid scams
Unfortunately, there are personal loan scams besides the legit lenders listed above offering loans. You want to avoid scams and protect yourself financially. It’s important to note that a lender will not call you.
Additionally, if you’re asked to pay anything upfront or if you see the words “guaranteed” anywhere, run. Remember the saying, if it seems too good to be true, it probably is.
Look to see if their website is secure. You should see “HTTPS” and a lock on the left-hand corner of the URL (the website domain). That designates the site as secure. Not having that can be a red flag.
You can check the Better Business Bureau before working with any lender. Also, ensure you can find the lender's address and contact info.
The Federal Trade Commission also has tips on avoiding and reporting a scam if you’ve already been a victim. All these steps can help you spot a scam and avoid any trouble.
The bottom line
Even those with a low credit score can find their loan application approved without a cosigner. Financial institutions will work with you, including the seven lenders listed above. Getting accepted for a personal loan and paying it back on time can help rebuild your credit and improve your score, helping you work up to an excellent credit report. So you can get the funding you need and improve your credit simultaneously. Before applying, read all the fine print, check for fees, review loan terms, and borrow only what you need. Regardless of why you need the money, even if it's short-term, a debt consolidation loan, a student loan, or an emergency, it’s still a loan you must repay.
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Writer
Melanie Lockert is the founder of the blog and author of the book, Dear Debt. Through her blog, she chronicled her journey out of $81,000 in student loan debt. Her work has appeared on Business Insider, VICE, Allure and more. Melanie writes about student loans, credit, and mental health and also is the host of The Mental Health and Wealth Show podcast.
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