The best loans for bad credit have affordable rates and features to help you build credit. Compare loans, then pre-qualify and get offers in minutes.
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Best for bad-credit loans overall
2026 NerdWallet award winner
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Best for co-signed loans
2026 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Best for a wide range of loan amounts and terms
2026 NerdWallet award winner
6.53 - 35.99%
$1K - $60K
600
2 to 7 years
Best for credit-building tools
11.69 - 35.99%
$1K - $50K
560
3 to 5 years
Best for secured loans
2026 NerdWallet award winner
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Best for joint loans
8.99 - 35.99%
$2K - $50K
560
2 to 5 years
Best for low-income borrowers
9.95 - 35.99%
$2K - $35K
550
2 to 5 years
Best for debt consolidation
7.99 - 35.99%
$3.5K - $40K
600
2 to 5 years
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
The top lenders for borrowers with bad credit all have low or no minimum credit score requirements (600 or lower). Additional features that make these loans ideal include fast funding, credit-building tools, the ability to pre-qualify with a soft credit check and the option to add a co-applicant or collateral to increase approval odds.
Why it made our list: Upstart says it considers loan applicants across the credit spectrum. It uses an AI-powered underwriting model that evaluates alternative factors, rather than relying heavily on credit scores for approval decisions. Its wide range of loan amounts and fast funding also make it a strong option for borrowers with bad credit.
Why it made our list: Upgrade is one of a few lenders that allows co-signers on a personal loan. Adding a co-signer with a higher credit score or income could increase your likelihood of loan approval or getting a lower APR.
Why it made our list: LendingClub offers personal loans from $1,000 to $60,000 with repayment terms from two to seven years. This wide range of options makes the lender a fitting choice for both small and large expenses.
Why it made our list: Universal Credit is owned by Upgrade, and borrowers get access to many of Upgrade’s features, including free credit score and credit monitoring. Universal Credit also offers a rate discount for enrolling in autopay. This feature saves borrowers money and helps them maintain on-time payments that can boost their credit scores.
Why it made our list: Best Egg offers two ways for borrowers to secure a personal loan. You can either use a vehicle as collateral or use permanent home fixtures, like built-in cabinets or light fixtures. Secured loans typically have lower interest rates than unsecured loans.
Why it made our list: Prosper says its borrowing requirements may be less strict for joint loan applicants than for those who apply alone. Applying for a loan with a co-applicant may also increase your likelihood of getting approved for a lower rate or a higher loan amount.
Why it made our list: Avant has a low minimum income requirement. As long as borrowers bring in over $1,200 a month, they may qualify for an Avant personal loan.
Why it made our list: Reach Financial’s personal loans are exclusively for debt consolidation. Borrowers can have a debt-to-income ratio of up to 70% (not including mortgage debt) and still qualify for a loan. The lender sends loan funds directly to the borrower’s creditors on account balances of at least $500, which helps to streamline the debt payoff process.
What the nerds think
If you have bad credit, a personal loan could carry an APR at the higher end of a lender’s range. But if you can afford the monthly payments, a personal loan can reduce financial stress by breaking up a necessary large expense into smaller, fixed payments. Also, making on-time loan payments each month can help boost your credit score.
Requirements. You may have a tougher time qualifying for a personal loan with bad credit, but there are lenders that accept lower scores and weigh them equally with alternative factors. Narrow your search to lenders with credit score, income and other requirements you can meet.
Annual percentage rate. A loan’s APR consists of the interest rate plus origination fees and is one of the best ways to compare loan costs. Your rate may be on the high end of a lender’s range, from about 20% to 36%.
Loan amounts and terms. Bad-credit loan amounts typically range from about $1,000 to $50,000, with repayment terms from two to seven years. Because lenders often view lower credit as added risk, your approved loan amount may be smaller than what you request.
Types of loans. Lenders often rely heavily on your credit score to determine approval for an unsecured loan. You may have a better chance of approval with a secured, co-signed or joint loan.
Additional loan features. Some lenders offer perks like rate discounts, fast funding or the ability to change a payment due date. These loan features can help you choose between two or more competitive offers.
Before applying for a loan, use a personal loan calculator to determine your monthly loan payment and total interest costs, based on your desired loan amount, repayment term and estimated APR.
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
Loan amount
$10,000
Interest rate
7.25%
Loan term (years)
3
Review your credit reports from the three major credit bureaus to ensure the information is accurate and up to date. Fixing errors on your report before applying may improve your chances of qualifying. You can get your credit reports for free on NerdWallet or at AnnualCreditReport.com.
In addition to your credit, lenders consider the following on a loan application:
Income: Showing a lender that you have enough income to make the payments is crucial to approval. So be sure to include all sources of income when you apply. Many lenders accept income from employment, alimony, retirement, child support and Social Security payments.
Debt-to-income ratio: This is the percentage of your monthly income that goes to debt payments. Lenders typically like to see that you can cover your monthly bills, including any other loan or credit card payments, and have money left over after your new personal loan payment.
Co-applicant and collateral: Including a co-signer or co-borrower with high credit and income can strengthen your application. So can securing the loan with a vehicle or other asset.
Many lenders offer pre-qualification, a short process that shows your likelihood of approval – with no impact to your credit score. You provide information, including your desired loan amount and loan purpose, and the lender does a soft credit pull of your credit. Pre-qualify with multiple lenders to compare rates.
Once you’ve pre-qualified and chosen a loan offer, you’ll then formally apply for the loan. Most lenders require documentation to verify your income, employment and other personal information. The lender will do a hard credit check, causing your score to drop by a few points.
After approval, you can expect to receive funds within a few days, and your first repayment will be due in about a month.
The lenders on this page offer legitimate personal loans. However, there are scammers that take advantage of people with low credit scores who need to borrow money.
Here are a few red flags to look out for when you're shopping for a personal loan.
Guaranteed approval or no credit check. Reputable lenders dig into your finances, including your credit and income, to determine whether you can repay the loan. A lender that doesn't do this may charge exorbitant rates that could land you in a debt trap.
No state license. Many reputable lenders list state licenses on their websites.
Asking for a gift card. No legitimate lender asks for a gift card in exchange for a loan. If you're asked to provide a gift card — even by someone who says they work for a popular lender — consider it a scam.
No fee disclosures. The Truth in Lending Act requires lenders to disclose the loan's APR, total interest and total repayment amount before you sign a loan agreement. Ask to see this information before signing and walk away if the lender refuses.
» MORE: How to spot a personal loan scam
Some credit unions offer short-term, small-dollar loans known as payday alternative loans or PALs. PALs let you borrow up to $2,000 with repayment terms up to 12 months. Federal credit unions cap APRs for PALs at 28%, making them much more affordable than payday loans with annual percentage rates around 400%.
“Buy now, pay later” plans are offered at many major retailers and let you break up a large purchase into smaller payments across several weeks or a few months. A popular option splits a cost into four biweekly, interest-free payments. These payment plans typically don’t require a hard credit check.
A cash advance app lets you borrow up to a few hundred dollars, which you’ll automatically repay from your next paycheck. These apps usually don’t require a hard credit pull or charge interest. Still, they might have subscription fees or fast funding fees, and they may ask for a tip.
If there’s someone in your life willing and able to lend you money, a family loan can be a low-cost option that doesn’t require a credit check. Draw up a loan agreement to ensure both parties are on the same page about how you’ll repay the loan and any costs involved.
You don’t need a good credit score to get a personal loan. Some lenders accept borrowers with a minimum credit score of 550, while lenders like Upstart may accept borrowers with no credit score.
Some online lenders offer personal loans specifically for borrowers with bad credit. They may consider information beyond your credit and income to qualify you. Your local credit union is also a good option. A member in good standing may qualify for a personal loan from a credit union despite a low credit score. Federal credit unions cap personal loan rates at 18%, which is significantly lower than many online lenders.
» MORE: Where to get a personal loan
Yes, but it’s risky. A no-credit-check lender provides a loan without reviewing your credit history. Instead, these lenders look at your bank account transactions, income and employment status. They tend to charge sky-high interest rates.
The fastest way to get a loan with bad credit may be with an online lender. These lenders offer a fast pre-qualification and application process, and many can send loan funds the same or next day after approval. These loans tend to be more affordable than a storefront payday lender.
