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Best Loans for Bad Credit of December 2024

Last updated on December 2, 2024
Written by 
Annie Millerbernd
Assistant Assigning Editor
Kim Lowe
Edited by 
Kim Lowe
Lead Assigning Editor
Fact Checked
Annie Millerbernd
Written by 
Assistant Assigning Editor
Kim Lowe
Edited by 
Kim Lowe
Lead Assigning Editor
Fact Checked

The best personal loans for bad credit have affordable rates and features to help borrowers build credit. NerdWallet experts chose these bad credit loans based on our analysis of more than a dozen lenders.

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Upgrade: Best for Overall bad credit loans

2024 Best Personal Loan for Bad Credit
Upgrade
5.0

Est. APR

9.99-35.99%

Loan amount

$1K-$50K

Min. credit score

580

See Offers
on NerdWallet
on NerdWallet

Qualifications:

Key Facts:

Upgrade provides a well-rounded personal loan that has flexible terms, credit-building assistance, low rates and special perks for different purposes.

Qualifications:
  • Minimum credit score: 580.
  • Minimum number of accounts on credit history: One account.
  • Maximum debt-to-income ratio: 75%, including mortgage payments.
  • Minimum length of credit history: Two years.
  • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
Available Term Lengths:2 to 7 years
Fees:
  • Origination fee: 1.85% to 9.99%.
  • Late Fee: $10.
  • Failed payment fee: $10.

Upstart: Best for Thin credit

Upstart

Est. APR

7.80-35.99%

Loan amount

$1K-$50K

Min. credit score

None

Qualifications:

Key Facts:

Upstart provides a solid personal loan that boasts nontraditional underwriting and fast approval.

Qualifications:
  • Must be a U.S. citizen or permanent resident living in the U.S.
  • Must be at least 18 years old in most states.
  • Must have a valid email address and Social Security number.
  • Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
  • Must have a personal bank account at a U.S. financial institution with a routing number.
  • No bankruptcies in the last 12 months.
  • No current delinquent accounts on your credit reports.
  • Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
  • Minimum credit score: None.
  • Minimum annual income: $12,000.
Available Term Lengths:3 to 7 years
Fees:
  • Origination: 0% to 12%.
  • Late fee: 5% of the unpaid amount or $15, whichever is greater.
  • Insufficient funds fee: $15.

Avant: Best for Fast funding

Avant
4.0

Est. APR

9.95-35.99%

Loan amount

$2K-$35K

Min. credit score

550

Qualifications:

Key Facts:

Avant pairs its low minimum credit score with relatively low rates, making it a solid option for bad-credit borrowers.

Qualifications:
  • Minimum credit score: 550. Avant uses FICO score version 8.0 and VantageScore version 3.0 from TransUnion.
  • Minimum monthly net income: $1,200. This lender accepts income from employment alimony, retirement, child support, Social Security payments or disability benefits.
  • Must be a resident of a state where Avant’s loans are available.
  • Must provide a Social Security number.
  • Must have a personal bank account in your name.
  • No active bankruptcies.
Available Term Lengths:2 to 5 years
Fees:
  • Origination fee: Up to 9.99%.
  • Late fee: $25.
  • Nonsufficient funds fee: $15.

Universal Credit: Best for Credit-building tools

Universal Credit

Est. APR

11.69-35.99%

Loan amount

$1K-$50K

Min. credit score

580

Qualifications:

Key Facts:

Universal Credit’s personal loan is best for bad-credit borrowers who want a loan that helps build credit.

Qualifications:
  • Minimum credit score: 580.
  • Minimum number of accounts on credit history: 1 account.
  • Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
  • Minimum length of credit history: 2 years.
  • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
Available Term Lengths:3 to 5 years
Fees:
  • Origination fee: 5.25% to 9.99%.
  • Late fee: Up to $10.
  • Non-sufficient funds fee: $10.

Best Egg: Best for Secured loans

BestEgg

Est. APR

7.99-35.99%

Loan amount

$2K-$50K

Min. credit score

600

Qualifications:

Key Facts:Best Egg offers personal loans for borrowers who want to consolidate debt and need cash fast.
Qualifications:
  • Minimum credit score: 600.
  • Maximum debt-to-income ratio: 70% including a mortgage.
  • Minimum credit history: 3 years and 1 account.
  • Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
  • Must be a U.S. citizen or permanent resident and at least 18 years of age.
Available Term Lengths:3 to 5 years
Fees:
  • Origination fee: 0.99% - 9.99%.

LendingPoint: Best for Easy application process

LendingPoint

Est. APR

7.99-35.99%

Loan amount

$1K-$37K

Min. credit score

640

See Offers
on NerdWallet's secure website
on NerdWallet's secure website

Qualifications:

Key Facts:LendingPoint personal loans are a solid borrowing option for fair- and bad-credit borrowers. They are funded quickly and have some flexible features.
Qualifications:
  • Minimum credit score: 640. LendingPoint uses FICO version 9 and VantageScore version 3.0.
  • Minimum credit history: 2 years.
  • Maximum debt-to-income ratio: 45%, not including mortgage payments.
  • Minimum annual income: $35,000. This lender accepts income from employment, alimony, retirement, child support, Social Security and disability benefits, but not a partner’s income.
  • Must be at least 18 years old in most states.
  • Must have a Social Security number, a government-issued photo ID and a personal bank account.
Available Term Lengths:2 to 6 years
Fees:
  • Origination fee: Up to 10%.
  • Late fee: 5% of the payment amount or $30.

Prosper: Best for Joint loans

Prosper

Est. APR

8.99-35.99%

Loan amount

$2K-$50K

Min. credit score

560

See Offers
on NerdWallet's secure website
on NerdWallet's secure website

Qualifications:

Key Facts:Prosper is a peer-to-peer online lending platform that accepts borrowers across the credit spectrum and offers competitive rates and fees.
Qualifications:
  • Minimum credit score: 560; borrower average is 705.
  • Minimum income: No minimum requirement; borrower average is $131,000.
  • Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.6% (including mortgage).
  • Must be at least 18 years old.
  • Must provide Social Security number and a U.S. bank account.
Available Term Lengths:2 to 5 years
Fees:
  • Origination fee: 1% to 9.99%.
  • Late fee: The greater of $15 or 5% of the unpaid amount.
  • Insufficient funds fee: $15.
  • Mailed-in payment fee: $5.

Upgrade: Best for Overall bad credit loans

2024 Best Personal Loan for Bad Credit
Upgrade

Est. APR

9.99-35.99%

Loan amount

$1K-$50K

Min. credit score

580
See Offers
on NerdWallet
on NerdWallet

Qualifications:

Key Facts:

Upgrade provides a well-rounded personal loan that has flexible terms, credit-building assistance, low rates and special perks for different purposes.

Qualifications:
  • Minimum credit score: 580.
  • Minimum number of accounts on credit history: One account.
  • Maximum debt-to-income ratio: 75%, including mortgage payments.
  • Minimum length of credit history: Two years.
  • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
Available Term Lengths:2 to 7 years
Fees:
  • Origination fee: 1.85% to 9.99%.
  • Late Fee: $10.
  • Failed payment fee: $10.

Upstart: Best for Thin credit

Upstart

Est. APR

7.80-35.99%

Loan amount

$1K-$50K

Min. credit score

None

Qualifications:

Key Facts:

Upstart provides a solid personal loan that boasts nontraditional underwriting and fast approval.

Qualifications:
  • Must be a U.S. citizen or permanent resident living in the U.S.
  • Must be at least 18 years old in most states.
  • Must have a valid email address and Social Security number.
  • Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
  • Must have a personal bank account at a U.S. financial institution with a routing number.
  • No bankruptcies in the last 12 months.
  • No current delinquent accounts on your credit reports.
  • Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
  • Minimum credit score: None.
  • Minimum annual income: $12,000.
Available Term Lengths:3 to 7 years
Fees:
  • Origination: 0% to 12%.
  • Late fee: 5% of the unpaid amount or $15, whichever is greater.
  • Insufficient funds fee: $15.

Avant: Best for Fast funding

Avant

Est. APR

9.95-35.99%

Loan amount

$2K-$35K

Min. credit score

550

Qualifications:

Key Facts:

Avant pairs its low minimum credit score with relatively low rates, making it a solid option for bad-credit borrowers.

Qualifications:
  • Minimum credit score: 550. Avant uses FICO score version 8.0 and VantageScore version 3.0 from TransUnion.
  • Minimum monthly net income: $1,200. This lender accepts income from employment alimony, retirement, child support, Social Security payments or disability benefits.
  • Must be a resident of a state where Avant’s loans are available.
  • Must provide a Social Security number.
  • Must have a personal bank account in your name.
  • No active bankruptcies.
Available Term Lengths:2 to 5 years
Fees:
  • Origination fee: Up to 9.99%.
  • Late fee: $25.
  • Nonsufficient funds fee: $15.

Universal Credit: Best for Credit-building tools

Universal Credit

Est. APR

11.69-35.99%

Loan amount

$1K-$50K

Min. credit score

580

Qualifications:

Key Facts:

Universal Credit’s personal loan is best for bad-credit borrowers who want a loan that helps build credit.

Qualifications:
  • Minimum credit score: 580.
  • Minimum number of accounts on credit history: 1 account.
  • Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
  • Minimum length of credit history: 2 years.
  • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
Available Term Lengths:3 to 5 years
Fees:
  • Origination fee: 5.25% to 9.99%.
  • Late fee: Up to $10.
  • Non-sufficient funds fee: $10.

Best Egg: Best for Secured loans

BestEgg

Est. APR

7.99-35.99%

Loan amount

$2K-$50K

Min. credit score

600

Qualifications:

Key Facts:Best Egg offers personal loans for borrowers who want to consolidate debt and need cash fast.
Qualifications:
  • Minimum credit score: 600.
  • Maximum debt-to-income ratio: 70% including a mortgage.
  • Minimum credit history: 3 years and 1 account.
  • Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
  • Must be a U.S. citizen or permanent resident and at least 18 years of age.
Available Term Lengths:3 to 5 years
Fees:
  • Origination fee: 0.99% - 9.99%.

LendingPoint: Best for Easy application process

LendingPoint

Est. APR

7.99-35.99%

Loan amount

$1K-$37K

Min. credit score

640
See Offers
on NerdWallet's secure website
on NerdWallet's secure website

Qualifications:

Key Facts:LendingPoint personal loans are a solid borrowing option for fair- and bad-credit borrowers. They are funded quickly and have some flexible features.
Qualifications:
  • Minimum credit score: 640. LendingPoint uses FICO version 9 and VantageScore version 3.0.
  • Minimum credit history: 2 years.
  • Maximum debt-to-income ratio: 45%, not including mortgage payments.
  • Minimum annual income: $35,000. This lender accepts income from employment, alimony, retirement, child support, Social Security and disability benefits, but not a partner’s income.
  • Must be at least 18 years old in most states.
  • Must have a Social Security number, a government-issued photo ID and a personal bank account.
Available Term Lengths:2 to 6 years
Fees:
  • Origination fee: Up to 10%.
  • Late fee: 5% of the payment amount or $30.

Prosper: Best for Joint loans

Prosper

Est. APR

8.99-35.99%

Loan amount

$2K-$50K

Min. credit score

560
See Offers
on NerdWallet's secure website
on NerdWallet's secure website

Qualifications:

Key Facts:Prosper is a peer-to-peer online lending platform that accepts borrowers across the credit spectrum and offers competitive rates and fees.
Qualifications:
  • Minimum credit score: 560; borrower average is 705.
  • Minimum income: No minimum requirement; borrower average is $131,000.
  • Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.6% (including mortgage).
  • Must be at least 18 years old.
  • Must provide Social Security number and a U.S. bank account.
Available Term Lengths:2 to 5 years
Fees:
  • Origination fee: 1% to 9.99%.
  • Late fee: The greater of $15 or 5% of the unpaid amount.
  • Insufficient funds fee: $15.
  • Mailed-in payment fee: $5.

NerdWallet's guide to personal loans for bad credit

Learn more about the top loans for bad credit

Upgrade: Best overall bad-credit loan

Why it made this list: Upgrade offers a superior personal loan compared to other lenders that target bad-credit borrowers. Wide ranges of loan amounts and repayment terms, as well as relatively low starting rates, make Upgrade ideal for most loan purposes. Some of Upgrade’s other perks, like rate discounts, extended repayment terms on home improvement loans and direct payment to creditors on debt consolidation loans are usually only available to borrowers with good or excellent credit, but the lender’s low minimum credit score requirement means those features are available to borrowers with bad to fair credit scores (300 to 689), too.

Recommended loan uses:

  • Debt consolidation.

  • Credit card refinancing.

  • Home improvement.

  • Emergencies.

Upstart: Best for thin credit

Why it made the list: Upstart is known for its alternative underwriting model, which it says makes a difference for consumers with fair and thin credit scores looking to get a personal loan. Unlike traditional banks, Upstart considers factors beyond credit score, including education and work experience, to determine whether a borrower qualifies. This lender also offers low starting rates, a secured loan option and flexible payments.

Recommended loan uses:

  • Home improvement.

  • Emergencies.

  • Medical expenses.

  • Business expenses.

Universal Credit: Best for credit-building tools

Why it made the list: Universal Credit has one of the lowest minimum credit score requirements among bad-credit lenders but still provides loans up to $50,000. Because it’s owned by Upgrade, borrowers get access to many of Upgrade’s features, including free credit scores and a mobile app. Universal Credit offers direct payment to creditors on debt consolidation loans, which isn’t available from many bad-credit lenders.

Recommended loan uses:

  • Debt consolidation.

  • Emergencies.

  • Medical expenses.

Avant: Best for fast funding

Why it made the list: At 550, Avant has the lowest minimum credit score requirement of the lenders that NerdWallet reviews and, unlike some other bad-credit lenders, starting rates are in the single digits. Repayment terms and loan amounts are typical compared to other bad-credit lenders, but Avant shines in its ability to approve and fund a loan the day after you apply.

Recommended loan uses:

  • Emergencies.

  • Credit card refinancing.

  • Medical expenses.

Best Egg: Best for secured loans

Why it made the list: Best Egg is a strong debt consolidation lender for borrowers in all credit bands, offering to directly pay your debts and providing fast funding. Its unique secured personal loan allows borrowers to use household fixtures, such as cabinets and vanities, as collateral. This lender provides free credit score access, so borrowers with low scores can monitor their score as they repay their loan.

Recommended loan uses:

  • Debt consolidation.

  • Home improvement

  • Emergencies.

  • Business expenses.

LendingPoint: Best for easy applications

Why it made the list: LendingPoint’s minimum credit score is the highest of the lenders listed, but those who qualify will get access to low starting rates and long repayment terms. This lender says it takes minutes to complete an application, and borrowers receive approval decisions in seconds. A well-rated mobile app and flexible payment dates make LendingPoint a user-friendly lender for those who prefer a simple online experience.

Recommended loan uses:

  • Emergencies.

  • Medical expenses.

  • Credit card refinancing.

  • Home improvement.

OneMain Financial: Best for low credit scores

Why it made the list: OneMain Financial offers many of the features you’d expect in a bad-credit loan: Joint and secured loan options for a better chance of qualifying, fast funding, the ability to choose and change a repayment date and no minimum credit score requirement. Starting rates are high compared to other lenders, so it pays to compare before you borrow, but those with low scores may meet the requirements for a OneMain personal loan.

Recommended loan uses:

  • Emergencies.

  • Medical expenses.

  • Urgent home repairs.

Prosper: Best for joint loans

Why it made the list: Prosper offers a solid all-purpose loan, with loan amounts up to $50,000 and repayment terms up to five years. The lender’s joint loan offering means borrowers can add a co-applicant for a better chance at qualifying or getting a lower rate. With a minimum credit score requirement of 560, instant approval and a mobile app, Prosper’s personal loan may be a good deal for many different expenses.

Recommended loan uses:

  • Home improvement.

  • Debt consolidation.

  • Business expenses.

How to compare loans for bad credit

Borrowing requirements. Bad-credit lenders consider many factors on a loan application, including:

  • Credit score: If a lender has a minimum credit score requirement, you’ll need at least that score, but ideally a higher one, to qualify.

  • 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: If the lender offers a co-signed or secured loan, the person or item you add to the application becomes a factor in deciding whether you qualify.

Annual percentage rate range. A loan’s APR consists of the interest rate plus any fees. Many bad-credit online lenders charge an origination fee. The highest APR an affordable loan should have is 36%, according to most consumer advocates.

Legitimacy. Read online reviews from other borrowers, verify the lender’s state license and physical address to ensure the lender is providing fair, legal loans.

Monthly payments. Review your budget to determine what you can afford to pay toward a personal loan each month. That way, you can rule out lenders that only offer higher monthly payments.

Compare key features

Lender

Min. credit score

APR range

580.

9.99% - 35.99%.

None.

7.80% - 35.99%.

580.

11.69% - 35.99%.

550.

9.95% - 35.99%.

600.

7.99% - 35.99%.

640.

7.99% - 35.99%.

None.

18.00% - 35.99%.

560.

8.99% - 35.99%.

5 steps to get a personal loan for bad credit

Here are the steps to get a bad-credit personal loan:

1. 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 report before applying may improve your chances of qualifying. You can get your credit reports for free on NerdWallet or at AnnualCreditReport.com.

2. Review your budget

Check your monthly income and expenses to see what you can comfortably afford to pay toward a personal loan each month. A missed loan payment will damage your credit score, so take this chance to determine how much you can commit to paying.

3. Pre-qualify with multiple lenders

Many lenders let you pre-qualify online to preview potential loan offers without affecting your credit score. You provide some information about yourself, like your income, desired loan amount and loan purpose, and the lender does a soft credit pull to determine your potential loan rate, amount, repayment term and monthly payment. No two lenders have the same borrowing requirements, so it pays to pre-qualify with multiple lenders.

4. Submit an application

Once you’ve found the right lender, gather documents, including proof of income and employment, a government-issued ID and bank statements. Most lenders have online personal loan applications, but your local bank or credit union may require an in-person application. The lender will do a hard credit check when you apply, causing your score to temporarily drop. Expect a decision within a few days.

5. Add the new loan payment to your budget

On-time loan payments can build your credit. Add loan payments to your monthly budget and set up autopay to avoid missing any.

Other tips to qualify for a bad-credit loan

Include all your income. Many lenders accept income from employment, alimony, retirement, child support and social security payments. 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.

Don’t ask for more than you need. Asking for a smaller loan won’t guarantee approval, but the larger your requested loan, the riskier it may look to a lender. Requesting a loan amount you can comfortably repay goes a long way with a lender.

Bad credit personal loan application checklist

Most lenders tend to request similar information, though the specific application requirements may vary. Gather your personal and financial information before applying to cut down on follow-up questions from the lender and get an approval answer faster.

Here’s what you usually need to apply for a personal loan with bad credit:

  • Your annual income — including non-employment income — and proof, such as a paystub or proof of income letter for Social Security payments or disability benefits.

  • Your most recent W-2 and tax return.

  • An email address where the lender can reach you.

  • A physical address in the United States.

  • Your date of birth.

  • The amount of your monthly mortgage or rent payment.

  • Your Social Security number.

  • The above information for a co-applicant if you’re applying for a joint or co-signed personal loan.

Double-check the information you entered on the application to avoid being denied due to inaccuracies.

Personal loans for bad credit: Pros and cons

Pros
  • Fast approval and funding for qualified borrowers.
  • Fixed, predictable payments.
  • On-time loan payments build credit.
  • Rates may be lower than credit cards and other high-interest loans.
Cons
  • Starting rates can be high.
  • Consumers with the lowest credit scores may not qualify.
  • Collateral or a co-signer may be required.
  • Predatory lenders may seek out bad-credit borrowers.

Where to get a personal loan for bad credit

Online: Some online lenders offer personal loans specifically for bad-credit borrowers. These lenders may consider information beyond your credit and income to qualify you, though those are still major factors in a loan decision.

Credit unions: Credit unions rely more on traditional information like credit and income but may also consider your history as a member. A member in good standing may qualify for a personal loan from a credit union despite a low credit score.

🤓

Nerdy Tip

Some local banks and credit unions may be willing to look past a minor factor dragging your credit score down, such as a recent missed payment or closed credit account, and consider your whole financial picture when making a loan decision. For this reason, your local financial institution may be a good place to shop for a bad credit loan.

Bad credit loan interest rates and fees

Current rates

The average pre-qualified personal loan rate for a bad-credit borrower was 22.37% in October 2024, according to aggregate, anonymized data from NerdWallet.

Borrower credit rating

Score range

Estimated APR

Excellent

720-850.

11.11%.

Good

690-719.

14.35%.

Fair

630-689.

17.46%.

Bad

300-629.

22.37%.

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from Oct. 1, 2024, through Oct. 31, 2024. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.

Common fees

One of the most common bad-credit loan fees is an origination fee, which is 1% to 10% of the loan amount. The fee is included in your APR, but a lender may take it before sending you the funds, effectively reducing your loan amount, or add it to your monthly payment.

A two-year, $10,000 loan with a 20% interest rate and a 5% origination fee has an APR of 25.14%. If the lender takes the origination fee before sending you the loan, you’d receive $9,500 and the lender would keep $500.

Lenders also usually charge late payment and non-sufficient funds fees.

Expert take: Approval odds for bad-credit borrowers

“It could be harder than usual to get approved for a personal loan if you have bad credit. During times of economic uncertainty — which we have arguably been in for a couple of years — lenders may raise their rates or raise borrowing standards. Right now, many lenders are doing both.

Still, each lender views applicants a little differently, so it’s worth your time to pre-qualify and see if you get an offer or a good rate. Because there’s no hard credit check during this process, you’ll get a solid place to start shopping from with no risk to your credit or finances.”

Annie Millerbernd, Personal Loans Assistant Assigning Editor

Calculate personal loan payments

Use this personal loan calculator to determine your monthly personal loan payment, based on the loan amount, rate and repayment term you enter. Refer to the data above if you aren’t sure what APR you’d get, and add an origination fee to see how it affects loan payments.

Loan details
Your loan estimateMonthly payment$212.47
  • Total principal

    $10,000.00
  • Total interest payments

    $2,748.23
  • Total loan payments

    $12,748.23
  • Payoff date

    12 / 2029
Payment datePrincipalInterestMonthly paymentPrincipal balance
Dec 2024$129.14$83.33$212.47$9,870.86
Jan 2025$130.21$82.26$212.47$9,740.65
Feb 2025$131.30$81.17$212.47$9,609.35
Mar 2025$132.39$80.08$212.47$9,476.96
Apr 2025$133.50$78.97$212.47$9,343.46
May 2025$134.61$77.86$212.47$9,208.85
Jun 2025$135.73$76.74$212.47$9,073.12
Jul 2025$136.86$75.61$212.47$8,936.26
Aug 2025$138.00$74.47$212.47$8,798.26
Sep 2025$139.15$73.32$212.47$8,659.11
Oct 2025$140.31$72.16$212.47$8,518.80
Nov 2025$141.48$70.99$212.47$8,377.32
Dec 2025$142.66$69.81$212.47$8,234.66
Jan 2026$143.85$68.62$212.47$8,090.81
Feb 2026$145.05$67.42$212.47$7,945.76
Mar 2026$146.26$66.21$212.47$7,799.51
Apr 2026$147.47$65.00$212.47$7,652.03
May 2026$148.70$63.77$212.47$7,503.33
Jun 2026$149.94$62.53$212.47$7,353.39
Jul 2026$151.19$61.28$212.47$7,202.20
Aug 2026$152.45$60.02$212.47$7,049.74
Sep 2026$153.72$58.75$212.47$6,896.02
Oct 2026$155.00$57.47$212.47$6,741.02
Nov 2026$156.30$56.18$212.47$6,584.72
Dec 2026$157.60$54.87$212.47$6,427.12
Jan 2027$158.91$53.56$212.47$6,268.21
Feb 2027$160.24$52.24$212.47$6,107.98
Mar 2027$161.57$50.90$212.47$5,946.41
Apr 2027$162.92$49.55$212.47$5,783.49
May 2027$164.27$48.20$212.47$5,619.22
Jun 2027$165.64$46.83$212.47$5,453.57
Jul 2027$167.02$45.45$212.47$5,286.55
Aug 2027$168.42$44.05$212.47$5,118.13
Sep 2027$169.82$42.65$212.47$4,948.31
Oct 2027$171.23$41.24$212.47$4,777.08
Nov 2027$172.66$39.81$212.47$4,604.42
Dec 2027$174.10$38.37$212.47$4,430.32
Jan 2028$175.55$36.92$212.47$4,254.76
Feb 2028$177.01$35.46$212.47$4,077.75
Mar 2028$178.49$33.98$212.47$3,899.26
Apr 2028$179.98$32.49$212.47$3,719.28
May 2028$181.48$30.99$212.47$3,537.81
Jun 2028$182.99$29.48$212.47$3,354.82
Jul 2028$184.51$27.96$212.47$3,170.31
Aug 2028$186.05$26.42$212.47$2,984.25
Sep 2028$187.60$24.87$212.47$2,796.65
Oct 2028$189.17$23.31$212.47$2,607.49
Nov 2028$190.74$21.73$212.47$2,416.75
Dec 2028$192.33$20.14$212.47$2,224.42
Jan 2029$193.93$18.54$212.47$2,030.48
Feb 2029$195.55$16.92$212.47$1,834.93
Mar 2029$197.18$15.29$212.47$1,637.75
Apr 2029$198.82$13.65$212.47$1,438.93
May 2029$200.48$11.99$212.47$1,238.45
Jun 2029$202.15$10.32$212.47$1,036.30
Jul 2029$203.83$8.64$212.47$832.47
Aug 2029$205.53$6.94$212.47$626.93
Sep 2029$207.25$5.22$212.47$419.69
Oct 2029$208.97$3.50$212.47$210.71
Nov 2029$210.71$1.76$212.47$0.00

Types of bad credit loans

Bad-credit borrowers may qualify for multiple types of bad-credit loans, including co-signed, joint and secured loans.

  • 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:

    • To make large purchases, debt consolidation and home improvement projects.

    • If you get a low rate.

  • 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.

  • A co-signed loan requires someone to 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.

  • A joint loan is one you get with another person, meaning they share 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.

Alternatives to personal loans for bad credit

A personal loan may not be the right option if you have bad credit. Even if you’re approved, you’ll likely pay a high APR. Consider these alternatives before borrowing.

Family loan

Borrow from a trusted friend or family member. It may help to have a plan for interest, repayment terms and payment frequency in mind when you ask for the loan. Then you and the lender can formalize the details in a family loan agreement.

Payment plans for bills

If you’re struggling to cover rent, utilities or credit card payments, consider asking for an extension or getting on a hardship program. Your credit card issuer, mortgage lender or utility company’s website may have an online application for hardship assistance, but you may have to ask a landlord directly.

Local financial assistance programs

For help meeting basic needs, consider a local food pantry, religious organization or nonprofit. Some organizations can provide food, clothing or bus tickets. NerdWallet’s database of local financial assistance programs lists resources in each state.

Medical bill assistance

Medical bill negotiators, medical credit cards or a payment plan with your provider may help take some of the stress and urgency out of paying a steep medical bill. These options may come with fees or interest, so compare medical bill payment options to find the most affordable one.

Buy now, pay later loan

Buy now, pay later” is an at-checkout financing option that lets you split a purchase into smaller installments. It’s typically best for necessary purchases that will otherwise stretch your budget and if you have a plan to make the payments on time.

Cash advance app

A cash advance app gives you an advance up to a few hundred dollars and withdraws repayment — plus any tips and fees — on your next payday. These apps can help bridge a temporary income gap, but be sure you can cover regular expenses when the advance is taken from your next paycheck to avoid falling into a debt cycle.

Frequently asked questions

  • Our picks for the best personal loans for bad credit are from these loan companies:

    • Upgrade: Best overall bad credit loan.

    • Upstart: Best for thin credit.

    • Universal Credit: Best for credit-building tools.

    • Avant: Best for fast funding.

    • Best Egg: Best for secured loans.

    • LendingPoint: Best for an easy application process.

    • OneMain: Best for low credit scores.

    • Prosper: Best for joint loans.

  • 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.

  • A bad credit score may not prevent you from getting a loan. Lenders like those listed here provide personal loans for borrowers with bad credit, however, you may not qualify if your score is below 500. In that case, consider alternatives such as family loans, payment plans with medical and utility providers, local financial assistance programs, cash advance apps and buy now, pay later plans.

  • Yes, but it may be risky. A no-credit-check lender provides a loan without reviewing your credit history. Instead, these lenders consider information like your bank account transactions, income and employment status. Because these lenders don’t conduct a credit check, making loans is riskier for them and they make up for that risk by charging sky-high interest rates.

    All of the lenders listed on this page check credit.

  • Bad-credit loans are generally from $1,000 to $50,000. Your loan amount depends on your credit, income, outstanding debts, the lender you choose and the type of loan you get.

Last updated on December 2, 2024

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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.

To recap our selections...

NerdWallet's Best Loans for Bad Credit of December 2024

  • Upgrade: Best for Overall bad credit loans
  • Upstart: Best for Thin credit
  • Avant: Best for Fast funding
  • Universal Credit: Best for Credit-building tools
  • Best Egg: Best for Secured loans
  • LendingPoint: Best for Easy application process
  • Prosper: Best for Joint loans
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