Best Bad Credit Loans of November 2024
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Bad credit loans are available for consumers with low credit scores. Loans for bad credit are typically offered by online lenders, which provide streamlined application processes and fast funding.
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
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- Governed by NerdWallet's strict guidelines for editorial integrity.
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Compare the top loans for bad credit
These bad-credit loans were selected based on our analysis of more than a dozen lenders.
Best overall bad credit loan
- Secured and joint loans.
- Multiple rate discounts.
- Mobile app to manage loan payments.
- Direct payment to creditors with debt consolidation loans.
- Long repayment terms on home improvement loans.
- Origination fee.
- No option to choose your payment date.
- Extended repayment terms on home improvement loans and large loans.
- Allows use of a vehicle as collateral for secured personal loans.
- Offers a discount for direct pay on debt consolidation loans and for setting up autopay.
Best bad credit loans for thin credit
- Accepts borrowers with bad credit or thin credit histories.
- Has a low income requirement.
- Fast approval and funding.
- Allows secured loans.
- Option to change your payment date.
- Origination fee.
- No rate discounts.
- No joint or co-signed loans.
- No direct payment to creditors on debt-consolidation loans.
- May approve borrowers with limited credit history.
- Uses artificial intelligence to make loan decisions.
- Often provides instant approval decisions.
Best bad credit loan with credit-building tools
- Offers direct payment to creditors with debt consolidation loans.
- Fast funding.
- Offers multiple rate discounts.
- Offers free credit score access.
- Charges origination fee.
- Borrowers can choose from only two repayment term options.
- No minimum income requirement.
- Offers credit score monitoring and simulator tool.
- Unlimited payment due date changes allowed.
Best bad credit loan with fast funding
- Accepts borrowers across the credit spectrum.
- Low income requirement.
- Fast approval and funding.
- Hardship program for borrowers in need.
- Seven-day customer service availability.
- Origination fee.
- No co-signed, joint or secured loans.
- No rate discounts.
- No large loan amounts.
- Can approve a loan within one business day.
- Low minimum credit score requirement, even among bad-credit lenders.
- May provide multiple loan offers through pre-qualification.
Best secured bad credit loans
- Wide range of loan amounts.
- Secured loan options.
- Direct payment to creditors with debt consolidation loans.
- Fast funding.
- Free credit score monitoring.
- Origination fee.
- No rate discounts.
- No mobile app to manage loan.
- Borrowers can use a household fixture or vehicle as collateral for a secured Best Egg loan.
- Allows changes to payment due date three times per year.
- Can approve loan applications instantly.
Best bad credit loans with an easy application process
- Fast funding.
- Option to change your payment date.
- Small loan amounts.
- Well-rated mobile app with free credit score access.
- Ability to refinance.
- Origination fee.
- Reports payments to only two of the three major credit bureaus.
- No joint, co-signed or secured loan options.
- No large loan amounts.
- Can approve an application as fast as five seconds.
- Wide range of repayment terms for flexible monthly payment options.
- Offers credit score tracking and personal finance management tool through the LendingPoint app.
Best bad credit loans for low credit scores
- Option to choose and change your payment date.
- Joint and secured loans.
- Fast funding.
- Direct payment to creditors on debt consolidation loans.
- Seven-day cancellation policy.
- Rates are high compared to other lenders.
- Charges origination fee.
- No rate discounts.
- Limited loan amounts.
- Pre-qualification doesn’t show APR.
- Offers secured and joint loans for a better chance at approval or a low rate.
- Can conditionally approve a loan application instantly and may send funds within one to two business days.
- Borrowers have seven days to cancel the loan without having to make payments.
Best joint bad credit loans
- Instant approval.
- Joint loan option.
- Hardship program for borrowers in need.
- Mobile app to manage loan.
- No rate discount.
- Charges origination and late fees.
- No direct payment to creditors with debt consolidation loans.
- Allows two borrowers to apply together as joint applicants.
- Qualified borrowers may receive funds the next day after approval.
- Offers wide range of loan amounts and terms.
On this page
What are bad credit loans?
A bad credit personal loan is for borrowers with low credit scores (from about 550 to 640) or thin credit histories. Bad credit loan amounts range from about $1,000 to $50,000 and annual percentage rates are capped at 36%.
Like all personal loans, bad credit loans have fixed interest rates and are repaid in fixed monthly installments over a period of one to seven years. These loans typically aren’t backed by collateral — they're unsecured.
Though you may qualify for a personal loan with bad credit, your rate will likely be on the high end of a lender’s range, and your approved loan amount may be smaller than what you request.
Pros and cons of personal loans for bad credit
Before you borrow, consider the pros and cons of personal loans for bad credit and compare this financing option to alternatives.
Pros
Fast funding. Some lenders can approve a loan application instantly, while others may take a day or two. Once approved, funding can happen the same day or take a couple of days.
Fixed, predictable payments. Unlike most credit cards and credit lines, personal loans usually have fixed interest rates, meaning you’ll have the same monthly payment for the full loan term.
On-time loan payments build credit. Payment history is the biggest factor that determines your credit score, and on-time payments toward a personal loan can give you a big boost.
Rates may be lower than credit cards and other high-interest loans. Though a low credit score often results in a high personal loan rate, your rate may still be lower on a personal loan than some credit cards and other high-interest loans.
Cons
Rates are often high. Bad-credit borrowers can expect an annual percentage rate on the high end of a lender’s range. Personal loan rates max out at 36%, and it‘s possible someone with a low score could get a 20% APR or higher.
Consumers with the lowest credit scores may not qualify. Minimum credit scores among bad-credit lenders are often between 550 and 640. A score that meets the minimum requirement doesn’t guarantee approval, and those with scores below the requirement are unlikely to qualify.
Collateral or a co-signer may be required. If you fail to qualify for a personal loan, the lender may suggest you add a co-signer or secure the loan. These options may help you qualify, but late payments will risk your collateral or co-signer’s credit.
Predatory lenders may seek out bad-credit borrowers. Predatory lenders — those that use deceptive practices to provide potentially harmful loans — may seek out consumers with low credit scores who fear they won’t qualify elsewhere.
» MORE: How to spot a personal loan scam
How to compare loans for bad credit
Qualification requirements and cost are the most important features to consider when choosing a personal loan for bad credit. Here are some tips to compare personal 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 bad credit 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%. |
Shop for other bad-credit personal loans:
Bad credit loan interest rates and fees
Current rates
The average pre-qualified personal loan rate for a bad-credit borrower was 21.19% in September 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.
Total principal
$10,000.00Total interest payments
$2,748.23Total loan payments
$12,748.23Payoff date
11 / 2029
Payment date | Principal | Interest | Monthly payment | Principal balance |
---|---|---|---|---|
Nov 2024 | $129.14 | $83.33 | $212.47 | $9,870.86 |
Dec 2024 | $130.21 | $82.26 | $212.47 | $9,740.65 |
Jan 2025 | $131.30 | $81.17 | $212.47 | $9,609.35 |
Feb 2025 | $132.39 | $80.08 | $212.47 | $9,476.96 |
Mar 2025 | $133.50 | $78.97 | $212.47 | $9,343.46 |
Apr 2025 | $134.61 | $77.86 | $212.47 | $9,208.85 |
May 2025 | $135.73 | $76.74 | $212.47 | $9,073.12 |
Jun 2025 | $136.86 | $75.61 | $212.47 | $8,936.26 |
Jul 2025 | $138.00 | $74.47 | $212.47 | $8,798.26 |
Aug 2025 | $139.15 | $73.32 | $212.47 | $8,659.11 |
Sep 2025 | $140.31 | $72.16 | $212.47 | $8,518.80 |
Oct 2025 | $141.48 | $70.99 | $212.47 | $8,377.32 |
Nov 2025 | $142.66 | $69.81 | $212.47 | $8,234.66 |
Dec 2025 | $143.85 | $68.62 | $212.47 | $8,090.81 |
Jan 2026 | $145.05 | $67.42 | $212.47 | $7,945.76 |
Feb 2026 | $146.26 | $66.21 | $212.47 | $7,799.51 |
Mar 2026 | $147.47 | $65.00 | $212.47 | $7,652.03 |
Apr 2026 | $148.70 | $63.77 | $212.47 | $7,503.33 |
May 2026 | $149.94 | $62.53 | $212.47 | $7,353.39 |
Jun 2026 | $151.19 | $61.28 | $212.47 | $7,202.20 |
Jul 2026 | $152.45 | $60.02 | $212.47 | $7,049.74 |
Aug 2026 | $153.72 | $58.75 | $212.47 | $6,896.02 |
Sep 2026 | $155.00 | $57.47 | $212.47 | $6,741.02 |
Oct 2026 | $156.30 | $56.18 | $212.47 | $6,584.72 |
Nov 2026 | $157.60 | $54.87 | $212.47 | $6,427.12 |
Dec 2026 | $158.91 | $53.56 | $212.47 | $6,268.21 |
Jan 2027 | $160.24 | $52.24 | $212.47 | $6,107.98 |
Feb 2027 | $161.57 | $50.90 | $212.47 | $5,946.41 |
Mar 2027 | $162.92 | $49.55 | $212.47 | $5,783.49 |
Apr 2027 | $164.27 | $48.20 | $212.47 | $5,619.22 |
May 2027 | $165.64 | $46.83 | $212.47 | $5,453.57 |
Jun 2027 | $167.02 | $45.45 | $212.47 | $5,286.55 |
Jul 2027 | $168.42 | $44.05 | $212.47 | $5,118.13 |
Aug 2027 | $169.82 | $42.65 | $212.47 | $4,948.31 |
Sep 2027 | $171.23 | $41.24 | $212.47 | $4,777.08 |
Oct 2027 | $172.66 | $39.81 | $212.47 | $4,604.42 |
Nov 2027 | $174.10 | $38.37 | $212.47 | $4,430.32 |
Dec 2027 | $175.55 | $36.92 | $212.47 | $4,254.76 |
Jan 2028 | $177.01 | $35.46 | $212.47 | $4,077.75 |
Feb 2028 | $178.49 | $33.98 | $212.47 | $3,899.26 |
Mar 2028 | $179.98 | $32.49 | $212.47 | $3,719.28 |
Apr 2028 | $181.48 | $30.99 | $212.47 | $3,537.81 |
May 2028 | $182.99 | $29.48 | $212.47 | $3,354.82 |
Jun 2028 | $184.51 | $27.96 | $212.47 | $3,170.31 |
Jul 2028 | $186.05 | $26.42 | $212.47 | $2,984.25 |
Aug 2028 | $187.60 | $24.87 | $212.47 | $2,796.65 |
Sep 2028 | $189.17 | $23.31 | $212.47 | $2,607.49 |
Oct 2028 | $190.74 | $21.73 | $212.47 | $2,416.75 |
Nov 2028 | $192.33 | $20.14 | $212.47 | $2,224.42 |
Dec 2028 | $193.93 | $18.54 | $212.47 | $2,030.48 |
Jan 2029 | $195.55 | $16.92 | $212.47 | $1,834.93 |
Feb 2029 | $197.18 | $15.29 | $212.47 | $1,637.75 |
Mar 2029 | $198.82 | $13.65 | $212.47 | $1,438.93 |
Apr 2029 | $200.48 | $11.99 | $212.47 | $1,238.45 |
May 2029 | $202.15 | $10.32 | $212.47 | $1,036.30 |
Jun 2029 | $203.83 | $8.64 | $212.47 | $832.47 |
Jul 2029 | $205.53 | $6.94 | $212.47 | $626.93 |
Aug 2029 | $207.25 | $5.22 | $212.47 | $419.69 |
Sep 2029 | $208.97 | $3.50 | $212.47 | $210.71 |
Oct 2029 | $210.71 | $1.76 | $212.47 | $0.00 |
Bad credit personal loan application checklist
Most lenders tend to request similar information on a personal loan application, though the specifics 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.
How 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. 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.
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 with the credit union may qualify for a personal loan 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.
Types of bad credit loans
Bad-credit borrowers may qualify for multiple types of bad-credit loans, including co-signed, joint and secured loans.
- 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:
To make large purchases, debt consolidation and home improvement projects.
If you get a low rate.
- 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.
- Co-signed personal loan
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.
- Joint personal loan
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.
- Home equity financing for bad credit
Home equity loans and credit lines allow you to borrow money against the equity in your home. Home equity loans are fixed-rate, lump sum loans while HELOCs usually have variable rates and allow you to draw on the funds as you need them. Because they’re secured by your home, you risk losing your house if you default.
When to use a HELOC or home equity loan:
For home improvement projects and repairs.
You have enough equity to borrow against.
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
- What is the best loan company for bad credit?
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.
- What is the easiest way to get a loan with bad credit?
First, build your credit by fixing errors or catching up on late payments. Consider adding a co-signer with good credit, or securing your loan. It's always a good idea to pre-qualify to check the rate and loan amount you might get. Pre-qualifying does not affect your credit score. Learn all the steps to get a personal loan with bad credit.
- How can I borrow money quickly with bad credit?
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, alternatives to bad credit loans include family loans, payment plans with medical and utility providers, local financial assistance programs, cash advance apps and buy now, pay later plans.
- Can I get a loan with no credit check?
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.
- How much can I borrow with bad 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 November 1, 2024
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 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.
NerdWallet's Best Bad Credit Loans of November 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