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.
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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.
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Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
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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.
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.
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
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.
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.
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.
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.
What is a medical loan for bad credit?
A medical loan is an unsecured personal loan used for planned or emergency health care expenses. Unsecured personal loans don’t require collateral, and they have fixed interest rates. Personal loans are paid back in monthly installments over the loan term, generally from two to seven years. Medical loans can be used for out-of-network charges, emergency procedures or high deductibles. Individuals and families without insurance coverage may consider a loan for health care needs.
Specific uses for medical loans include:
LASIK.
Mental health treatments.
IVF and fertility treatments.
Gender-affirming surgery.
Pet care.
How to compare medical loans for bad credit
Getting a medical loan with bad credit may require some shopping around. As you look at different lenders, consider these factors.
APRs: Annual percentage rates for personal loans typically range from 6% to 36%. While your credit score can significantly influence the APR you receive, some lenders consider additional criteria like education or job history. Still, borrowers with bad credit can expect an APR at the higher end of a lender's range. Fees: Some lenders charge an origination fee to cover the loan processing cost. This fee can range from 1% to 10% of the total loan amount and is typically deducted before disbursement. Other fees may include late payment fees. Loan amounts and terms: Depending on the lender, loan amounts can range from $1,000 to $50,000. Know how much you need for your medical expenses, as borrowers with low credit scores may not qualify for the highest loan amounts. Loan terms affect your monthly payment amount and total interest costs. A shorter term may mean higher monthly payments, while a longer term can cost more in interest.
For example, here’s how the loan term affects a $5,000 loan with a 21% APR:
| 2-year loan | 5-year loan |
|---|
Monthly payment | $257 | $135 |
Total interest | $1,166 | $3,116 |
Credit reporting: Making consistent on-time payments toward your loan can help improve your credit. Choose a lender that reports your payments to at least one major credit bureau — and preferably all three (Experian, Equifax and TransUnion).
Funding time: Consider the amount of time it will take to receive the money. Is the medical expense an emergency now or a procedure planned for the future? Some online lenders approve and disburse loan funds the same day after approval, while others take up to a week.
Customer support: Some lenders provide support through multiple customer contact channels, including an app, while others may offer assistance by phone or email only. Consider how you would like to manage your account and the level of customer support you might need.
How to get a medical loan with bad credit
1. Review your credit score
Your credit score can determine your eligibility for a loan and how much you can get. Check your credit report for free and look for any errors, like incorrect delinquencies or accounts that aren’t yours. Try to resolve past-due balances on your accounts since missed payments can significantly impact your credit scores. 2. Figure out what to budget for
Your medical expenses will often determine how much you need to borrow, but you can also use a personal loan calculator to determine what you can afford. You’ll want a medical loan with monthly payments that fit comfortably in your budget. 3. Get pre-qualified
Pre-qualifying allows you to see the potential APR and loan amount you may qualify for with each lender, so you can compare offers and choose the best one for your budget. Most online lenders allow you to pre-qualify for a loan using a soft credit check, which doesn’t affect your credit score. Some banks and credit unions also offer pre-qualification. 4. Add a co-borrower or collateral
Co-signed, joint or secured loans are less risky for lenders and can increase your likelihood of approval. You may even get a lower rate.
Both joint loans and co-signed loans allow you to add someone — ideally a person with a higher credit score or larger income than you — to your loan application. In both cases, the additional applicant is responsible for repaying the loan should you fail to do so, though only in a joint loan do they have equal access to the loan funds. A secured loan requires you to pledge collateral (like your car or a savings account) to help guarantee the loan. However, if you fail to repay, you can lose the collateral. 5. Apply
Once you choose a lender that best fits your needs, you can formally apply for the loan.
Most lenders let you complete the application through their website and may ask for supporting documents, like proof of identification, address and income, as well as your Social Security number. Once approved, the funds will be deposited into your bank account, sometimes as early as the same day you’re approved.
Other ways to pay medical bills
It's best to consider a medical loan only after you’ve tried low- or no-cost options. Here are other funding options to help you cover medical costs.
Payment plan: Medical providers may offer payment plans that allow you to pay a medical bill in monthly installments, typically with no interest. The amounts and terms depend on the agreement you negotiate with the provider.
Family loan: A family loan can be a low-interest option to fund medical expenses. A successful arrangement includes a formal written agreement outlining interest and terms between family members. Also, consider IRS guidelines and a family loan's impact on the relationship. Credit union loan: Credit unions are not-for-profit organizations that may offer loans with lower interest rates and more flexible terms than online lenders. During the application process, they’re also more likely to consider your overall financial picture. Credit unions require becoming a member first before you apply, and some may not offer the option to pre-qualify. CareCredit: CareCredit is a specialty credit card for financing health care expenses. The card can be used at more than 270,000 health and wellness providers, and applicants are subject to credit approval. CareCredit has a standard APR of 32.99%, but there are promotional financing options like zero-interest terms, which require you to pay the balance in full by a set time to avoid retroactive interest charges. 
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