Best Loans for Bad Credit of October 2026
Last updated on September 2, 2025
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Pay off debt
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- Potentially lower interest rate
- Fixed monthly payment
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Best Loans for Bad Credit From Our Partners
Excellent for
Thin credit
Est. APR
6.20 - 35.99%
Loan amount
$1K - $75K
Min. credit score
None
Loan term
3 to 7 years
Pros, Cons, and Our View
- Time to get funds:
- 1 day
- Availability:
- Lends in all 50 states and Washington, D.C.
- Rate discounts:
- None
- Min income:
- No minimum requirement
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Medical/dental, Emergency expenses (car repair, vet bill, etc.), Vacation, Moving/relocation, Wedding, Funeral, Business expenses, Auto/motorcycle/RV/boat financing, Other large purchase, Bills and rent, Family assistance, Taxes, and Purchase of personal vehicle
Pros
- No credit score requirement.
- Wide range of loan amounts.
- Fast funding.
- Range of loan amounts
Cons
- Origination fee.
- Only two repayment term options.
- No direct payment to creditors.
Excellent for
Overall bad credit loans
Est. APR
7.74 - 35.99%
Loan amount
$1K - $75K
Min. credit score
600
Loan term
2 to 7 years
Pros, Cons, and Our View
- Time to get funds:
- 1 day
- Availability:
- Lends in all 50 states and Washington, D.C.
- Rate discounts:
- AutoPay discount, Direct pay to creditors discount, Auto-secured discount, and Existing customer discount
- Min income:
- No minimum requirement
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Emergency expenses (car repair, vet bill, etc), Vacation, Moving/relocation, Wedding, Funeral, Auto/motorcycle/RV/boat financing, and Other large purchase
Pros
- Multiple rate discounts.
- Secured and co-signed loans.
- Fast funding.
- Wide range of loan amounts and repayment terms.
Cons
- Origination fee
- No option to choose repayment date
Excellent for
Secured loans
Est. APR
6.99 - 35.99%
Loan amount
$2K - $50K
Min. credit score
600
Loan term
3 to 5 years
Pros, Cons, and Our View
- Time to get funds:
- Next business day
- Availability:
- Unavailable in IA, VT, WV, and DC
- Rate discounts:
- None
- Min income:
- Varies by state
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Medical/dental, Emergency expenses (car repair, vet bill, etc.), Vacation, Moving/relocation, Wedding, Funeral, Business expenses, Education expenses, Auto/motorcycle/boat financing, and Other large purchase
Pros
- Offers secured and unsecured loans.
- Works with a variety of credit situations.
- Lets you pre-qualify with a soft credit check.
- Will directly pay your creditors when the loan is for debt consolidation.
Cons
- Has an origination fee.
- Requires at least a 600 credit score.
- Doesn't offer co-signed or joint loans.
- Short repayment terms aren't available.
Excellent for
Fast funding
Est. APR
9.95 - 35.99%
Loan amount
$2K - $35K
Min. credit score
550
Loan term
2 to 5 years
Pros, Cons, and Our View
- Time to get funds:
- 1 day
- Availability:
- Unavailable in IA, WV, HI, ME, MA, and WA
- Min income:
- $1,200 monthly net income
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Emergency expenses (car repair, vet bill, etc.), Vacation, Moving/relocation, Wedding, Funeral, and Other large purchase
Pros
- Works with borrowers across the credit spectrum.
- Lets you pre-qualify with a soft credit check.
- Next-day funding.
Cons
- Charges an origination fee.
- No co-signed, joint or secured loans.
- No direct payments to creditors.
Excellent for
Credit-building tools
Est. APR
11.69 - 35.99%
Loan amount
$1K - $50K
Min. credit score
560
Loan term
2 to 5 years
Pros, Cons, and Our View
- Time to get funds:
- 1 day
- Availability:
- Unavailable in DC
- Rate discounts:
- AutoPay discount and Direct pay to creditors discount
- Min income:
- No minimum requirement
- Soft credit check:
- Yes
- Loan uses:
- Debt consolidation, Credit card consolidation, Home improvement, Emergency expenses (car repair, vet bill, etc), Vacation, Moving/relocation, Wedding, Funeral, Auto/motorcycle/RV/boat financing, and Other large purchase
Pros
- Direct payment to creditors
- Fast funding
- Multiple rate discounts
- Wide range of loan amounts
Cons
- Origination fee
- No co-sign, joint or secured loan options
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.
1. 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.
2. 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.
3. 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.
4. 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 September 2, 2025
Methodology
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.
35+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.
25+Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+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.
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 60 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.
To recap our selections...
NerdWallet's Best Loans for Bad Credit of October 2026
- Upstart: Excellent for Thin credit
- Upgrade: Excellent for Overall bad credit loans
- Best Egg: Excellent for Secured loans
- Avant: Excellent for Fast funding
- Universal Credit: Excellent for Credit-building tools
Frequently asked questions
What credit score do I need to get a loan?
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.
Where are the best places to get a bad-credit loan?
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
Can I get a loan with no credit check?
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.
What is the fastest way to get a loan with bad credit?
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.