Best for Thin credit

NerdWallet rating

5.0

Est. APR

6.70 - 35.99%

Loan amount

$1K - $50K

Min. credit score

None

Loan term

3 to 5 years

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Why our Nerds love Upstart

Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases. Read our review of Upstart

Best for Overall bad credit loans

NerdWallet rating

5.0

Est. APR

7.99 - 35.99%

Loan amount

$1K - $50K

Min. credit score

580

Loan term

2 to 7 years

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Why our Nerds love Upgrade

Upgrade personal loans offer multiple rate discounts and direct payment to creditors. A low minimum credit score requirement makes the perks stand out even more. Read our review of Upgrade

Best for Secured loans

NerdWallet rating

4.5

Est. APR

6.99 - 35.99%

Loan amount

$2K - $50K

Min. credit score

600

Loan term

3 to 5 years

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Why our Nerds love Best Egg

Best Egg offers personal loans for borrowers who want to consolidate debt and need cash fast. Read our review of Best Egg

Best for Fast funding

NerdWallet rating

4.0

Est. APR

9.95 - 35.99%

Loan amount

$2K - $35K

Min. credit score

550

Loan term

2 to 5 years

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Why our Nerds love Avant

Avant personal loans are a solid option for fair- and bad-credit borrowers who need fast funding, but their rates and origination fees can be high. Read our review of Avant

Best for Credit-building tools

NerdWallet rating

4.0

Est. APR

11.69 - 35.99%

Loan amount

$1K - $50K

Min. credit score

580

Loan term

3 to 5 years

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Why our Nerds love Universal Credit

A Universal Credit loan is a sound option for bad-credit borrowers looking to build credit, but rates are high compared to similar lenders. Read our review of Universal Credit

How we chose the best personal loans

Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.

35+

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.

70+

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.

Star rating categories

We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.

Affordability

25%

We review lenders’ annual percentage rate offerings at least twice per year and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.

Customer experience

20%

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.

Underwriting and eligibility

20%

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.

Loan flexibility

20%

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.

Application process

15%

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

5.0

Overall score

NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 70 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.

Calculate your monthly payment

See how different loan amounts, rates, and terms affect your monthly payment

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)

PRINCIPAL AMOUNT — $10,000TOTAL INTEREST PAID — $1,156.95

90%

10%

How to apply for a bad-credit loan

Check your credit Review your credit reports from the three major credit bureaus to ensure the information is accurate and up to date. Fixing errors on your reports 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 will consider the following on a loan application:
- Income: Showing a lender 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 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, as can securing the loan with a vehicle or other asset.
Pre-qualify with multiple lenders 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 pull of your credit. Lenders have different borrowing requirements, so it pays to pre-qualify with multiple lenders and compare rates.
Submit your application 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 temporarily 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.

Types of loans and when they’re best

Bad-credit borrowers may qualify for multiple types of bad-credit loans. Here are common options.

Unsecured personal loan

An unsecured loan doesn’t require collateral. Instead, a lender determines whether you qualify based on factors like your credit score, income and cash flow.

When to use an unsecured loan:

For debt consolidation, home improvement projects and large purchases.
If you get a low rate.

Joint personal loan

A joint loan is one you get with another person who shares responsibility for payments and can access the funds.

When to use a joint loan:

You get a lower rate than without a co-borrower.
You and the co-borrower need equal access to the funds.

Co-signed personal loan

A co-signed loan includes a co-applicant who can vouch for your ability to repay the loan.

When to use a co-signed loan:

The rate is lower than without the co-signer.
The co-signer understands the risk.

Secured personal loan

A secured loan requires you to pledge collateral — usually a vehicle or bank account — to borrow money.

When to use a secured loan:

The rate is lower than with an unsecured loan.
Pledging collateral is worth the risk.

How to choose the best loan for you

Requirements. You may have a tougher time qualifying for a personal loan with bad credit, but many lenders 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.
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.
Legitimacy. Read online reviews from other borrowers, and verify the lender’s state license and physical address to ensure the lender is providing fair, legal loans.

Frequently asked questions about bad-credit loans

What credit score do I need to get a loan?
You don’t need a good credit score to get a personal loan. Some lenders accept borrowers with a minimum credit score of 550 or 580, while lenders like Upstart may accept borrowers with no credit score.
» More: What credit score do you need for a personal loan?
Where are the best places to get a bad-credit loan?
Some online lenders offer personal loans specifically for bad-credit borrowers and 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
Can I get a loan with no credit check?
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, and they tend to charge sky-high interest rates.
» More: How do no-credit-check loans work?
What is the fastest way to get a loan with bad credit?
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.
» More: How to get a personal loan with bad credit