Best Personal Loan for Bad Credit
How we picked the companies to evaluate:
How we chose the winner:
- Features that affect affordability for consumers, including competitive rates, no origination fees and rate discounts for autopayments and/or direct-to-creditor payments (40%).
- Features that give consumers flexibility, including options to change payment due dates; multiple loan types, amounts and terms; fast funding; hardship programs; and refinancing options (30%).
- Features that offer consumers transparency in credit impact and loan product, including soft credit checks and credit reporting, as well as clearly presented rates, terms, fees and answers to common questions (15%).
- Features that enhance the consumer experience, including available and convenient customer support, mobile apps and financial education (15%).
The fifth category is unweighted and discretionary. A lender’s score may be lowered if it has faced governmental regulatory action in the past five years or been accused of predatory practices by a reputable source. A lender that offers a unique, consumer-friendly feature (outside of the scored categories above) that few others offer may earn a higher score.
To determine the award winner, we grouped lenders that cater to consumers with bad credit scores (roughly coinciding with a FICO score below 630). Within that group, the lender with the highest score was the winner.
How we verified our data:
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