Best Loans for Bad Credit of August 2025
99% of borrowers get a loan offer or alternative through NerdWallet. Answer a few questions and get offers in minutes.
Pay off debt
Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Best Loans for Bad Credit From Our Partners
Our pick for
Thin credit
Upstart
6.70-35.99%
$1,000-$50,000
None
View details Close details
Upstart provides a solid personal loan that boasts nontraditional underwriting and fast approval.
- 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.
- 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.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Our pick for
Overall bad credit loans
Upgrade
7.99-35.99%
$1,000-$50,000
580
View details Close details
Upgrade provides a well-rounded personal loan that has flexible terms, credit-building assistance, low rates and special perks for different purposes.
- 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.
- 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.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Our pick for
Secured loans
Best Egg
6.99-35.99%
$2,000-$50,000
600
View details Close details
- 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.
- 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.
- Origination fee: 0.99% - 9.99%.
Our pick for
Fast funding
Avant
9.95-35.99%
$2,000-$35,000
550
View details Close details
Avant pairs its low minimum credit score with relatively low rates, making it a solid option for bad-credit borrowers.
- 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.
- 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.
- Origination fee: Up to 9.99%.
- Late fee: $25.
- Nonsufficient funds fee: $15.
Our pick for
Credit-building tools
Universal Credit
11.69-35.99%
$1,000-$50,000
580
View details Close details
Universal Credit’s personal loan is best for bad-credit borrowers who want a loan that helps build credit.
- 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.
- 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.
- Origination fee: 5.25% to 9.99%.
- Late fee: Up to $10.
- Non-sufficient funds fee: $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.
Last updated on August 1, 2025
Methodology
To recap our selections...
NerdWallet's Best Loans for Bad Credit of August 2025- Upstart: Best for Thin credit
- Upgrade: Best for Overall bad credit loans
- Best Egg: Best for Secured loans
- Avant: Best for Fast funding
- Universal Credit: Best for Credit-building tools
Frequently asked questions
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.
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
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.
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.