The best loans for bad credit have affordable rates and features to help you build credit. Compare loans, then pre-qualify and get offers in minutes.
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Best for Overall bad credit loans
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Our take on Upstart
Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases. Read our review of Upstart
Best for Wide repayment terms
2025 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Our take on Upgrade
Upgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans. Read our review of Upgrade
Best for Credit-building tools
11.69 - 35.99%
$1K - $50K
560
3 to 5 years
Our take on Universal Credit
A Universal Credit personal loan may be a smart choice for borrowers with lower credit scores who want to consolidate debt. Read our review of Universal Credit
Best for Fast funding
9.95 - 35.99%
$2K - $35K
550
2 to 5 years
Our take on Avant
Avant personal loans are a solid option for fair- and bad-credit borrowers who need fast funding, but their rates and origination fees can be high. Read our review of Avant
Best for Secured loans
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Our take on Best Egg
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt. Read our review of Best Egg
Best for joint loans
8.99 - 35.99%
$2K - $50K
560
2 to 5 years
Our take on Prosper
Prosper is a peer-to-peer online lending platform that accepts borrowers across the credit spectrum. Read our review of Prosper
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
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.
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 30 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.
The top lenders for bad-credit borrowers all have low or no minimum credit score requirements. Additional features that make these loans ideal include fast funding, flexible terms, credit-building tools, the ability to pre-qualify with a soft credit check and the option to add a co-applicant or collateral to increase approval odds.
Why it made our list: Upstart says it considers loan applicants across the credit spectrum. It uses an AI-powered underwriting model that evaluates alternative factors, rather than relying heavily on credit scores for approval decisions. Its wide range of loan amounts and fast funding also make it a strong option for bad-credit borrowers.
Why it made our list: Upgrade offers repayment terms ranging from two to seven years. This makes it ideal for both smaller loans you can pay off quickly and larger loans that require extra time to pay off.
Why it made our list: Universal Credit is owned by Upgrade, and borrowers get access to many of Upgrade’s features, including free credit score and credit monitoring. Universal Credit also offers a rate discount for enrolling in autopay, which lets borrowers save money in addition to maintaining on-time payments that can boost their credit scores.
Why it made our list: Avant shines in its ability to approve and fund a loan the day after you apply, which is ideal if you need money quickly to cover an emergency or other urgent expense.
Why it made our list: Best Egg offers two ways to get a secured loan: You can use a vehicle as collateral or household fixtures, such as cabinets and vanities. Both secured loan options come with lower rates than the lender’s unsecured personal loans.
Why it made our list: Prosper says its borrowing requirements may be less strict for joint loan applicants than for those who apply alone. Applying for a loan with a co-applicant may also increase your likelihood of getting approved for a lower rate or a higher loan amount.
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.
Types of loans. Lenders often rely heavily on your credit score to determine approval for an unsecured loan. You may have a better chance of approval with a secured, co-signed or joint loan. With a secured loan, you’ll pledge collateral, usually a car or savings account, which the lender can take if you default on the loan. Adding a co-signer to your loan means someone with better credit or a higher income is vouching for your ability to repay. Adding a co-borrower means you’re sharing the funds and the repayment responsibility with another individual.
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.
Before applying for a loan, use a personal loan calculator to determine your monthly loan payment and total interest costs, based on your desired loan amount, repayment term and estimated APR.
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
Loan amount
$10,000
Interest rate
7.25%
Loan term (years)
3
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.
In addition to your credit, lenders will consider the following on a loan application:
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 credit pull of your credit. Pre-qualify with multiple lenders to compare rates.
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 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.
The lenders on this page offer legitimate personal loans. Here are a few red flags to look out for when you're shopping for a personal loan for bad credit.
» MORE: How to spot a personal loan scam
You don’t need a good credit score to get a personal loan. Some lenders accept borrowers with a minimum credit score of 560, 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.
