Compare Bad Credit Loan Rates for January 2022
See if you’re pre-qualified — without affecting your credit score
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Here are 7 lenders for you
Min. credit
None
Qualifications
Minimum credit score: None.
Minimum credit history: None, this lending platform accepts borrowers with credit history too limited to produce a FICO score.
Minimum gross income: $12,000.
Employment: Full-time job, full-time job offer starting in 6 months, a regular part-time job, or another source of regular income.
Must have U.S. residential street address where borrower resides (unless military personnel on active duty).
Must be at least 18 years old.
Valid email account required.
Personal bank account with U.S. routing number required.
Pros
Accepts borrowers new to credit.
Able to fund loans within one business day.
Offers direct payment to creditors with some debt consolidation loans.
Allows borrowers to choose and change payment date.
Cons
Borrowers can choose from only two repayment term options.
Charges origination fee.
No mobile app to manage the loan.
Disclaimer
Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000), NM ($5,100), OH ($6,000).This offer is conditioned on final approval based on our consideration and verification of financial and non-financial information. Rate and loan amount are subject to change based upon information received in your full application. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into contract for the extension of credit, a US citizen or permanent resident, and a current resident of the US. Duplicate offers are void. Closing your loan is contingent on your meeting our eligibility requirements, our verification of your information, and your agreement to the terms and conditions on the www.upstart.com website.The full range of available rates varies by state. The average 5-year loan offered across all lenders using the Upstart platform will have an APR of 21.4% and 60 monthly payments of $24.62 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $14,775 including a $582 origination fee. APR is calculated based on 5-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved. If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.
Min. credit
600
Qualifications
Minimum credit score: 600; borrower average is 700.
Minimum credit history: 3 years and 3 accounts.
Minimum income requirement is $3,500; borrower average is $80,000. Borrower must have enough cash flow to cover current financial obligations.
Minimum debt-to-income ratio: 40% or 65% including a mortgage; borrower average is 40%.
Employment: Must provide proof of income; part-time employees are eligible.
Must provide valid U.S. address and Social Security number.
Pros
Offers wide range of loan amounts.
Provides secured loan option for homeowners.
Offers direct payment to creditors with debt consolidation loans.
Cons
Charges origination fee.
No rate discount for autopay.
Disclaimer
*Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. “Best Egg” is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of “Best Egg” refer to “the Best Egg personal loan”, “the Best Egg Secured Loan”, and/or “Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan,” as applicable. The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 4.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–5.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.
Min. credit
600
Qualifications
Minimum credit score of 600. LendingClub uses FICO 8 credit scoring model.
Minimum credit history of three years.
Debt-to-income ratio of less than 40% for single applications, 35% combined for joint applicants.
Pros
Offers co-signed and joint loan options.
Offers direct payment to creditors with debt consolidation loans.
Soft credit check with pre-qualification.
Cons
Borrowers can only choose from two repayment term options.
Rates are high compared to other fair-credit lenders.
Charges an origination fee.
Disclaimer
A representative example of loan payment terms is as follows: you receive a loan of $13,411 for a term of 36 months, with an interest rate of 12.16% and a 5.30% origination fee of $711, for an APR of 15.99%. In this example, you will receive $12,700 and will make 36 monthly payments of $446.46. Loan amounts range from $1,000 to $40,000 and loan term lengths are 36 months or 60 months. Some amounts and term lengths may be unavailable in certain states. APR ranges from 7.04% to 35.89% and is determined at the time of application. Origination fee ranges from 3% to 6% of the loan amount. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of 7/1/21 and are subject to change without notice. Loans are made by LendingClub Bank, N.A., Member FDIC (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Loans are subject to credit approval and sufficient investor commitment before they can be funded or issued. Certain information that we subsequently obtain as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that your request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan from us. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com. “LendingClub” is a trademark of LendingClub Bank.
Min. credit
None
Qualifications
Minimum credit score: None.
Minimum income: None; average is $45,000.
Pros
Option to choose your payment date.
Offers joint and secured loans.
Able to fund a loan the same or next business day.
Offers direct payment to creditors on debt consolidation loans.
Cons
Rates are high compared to other online lenders.
Charges origination fee.
No rate discount for autopay.
Disclaimer
Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $300. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
Min. credit
580
Qualifications
Minimum credit score of 580; average is 673.
No minimum income; average customer earns $80,000.
Debt-to-income ratio of less than 50%, not including mortgage; average customer's ratio is 13%.
Pros
Soft credit check with pre-qualification.
Option to choose and change your payment date.
Can fund a loan the business day after approval.
Cons
No co-signed, joint or secured loan option.
Rates are high compared to other bad-credit lenders.
Reports payments to two of the three major credit bureaus.
Does not offer direct payment to creditors with debt consolidation loans.
Disclaimer
Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint's final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 15.49% APR to a high of 34.99% APR, with terms from 24 to 48 months.
Min. credit
600
Qualifications
Minimum credit score: 640; borrower average is 726.
Minimum credit history: 2 years.
Minimum income: No minimum income requirement; borrower average is $113,000.
Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 18% with housing payment.
No bankruptcies filed within the past year.
At least three open accounts on credit report.
Fewer than five credit bureau inquiries in the last six months.
Must be at least 18 years old.
Must provide Social Security number and a U.S. bank account.
Pros
Option to change your payment date.
Offers joint loan.
Offers wide range of loan amounts.
Cons
No rate discount for autopay.
Charges origination and late fees.
Borrowers can choose from only two repayment term options.
Disclaimer
For example, a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.90. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers. Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank, Member FDIC.
Min. credit
560
Qualifications
Minimum credit score: 560.
Minimum number of accounts on credit history: 2 accounts.
Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
Pros
Offers rate discount with direct payment to creditors on debt consolidation loans.
Option to change your payment date.
Offers free credit score access.
Offers a .5% rate discount for setting up autopay.
Cons
Charges origination fee.
No co-sign, joint or secured loan option.
Disclaimer
Personal loans made through Universal Credit feature APRs of 8.93%-35.93%. All personal loans have a 4.25% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 27.65% APR (which includes a 22.99% yearly interest rate and a 6% one-time origination fee), you would receive $9,400 in your account and would have a required monthly payment of $387.05. Over the life of the loan, your payments would total $13,933.62. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early.
Updated: Jan 11, 2022
Bad-credit lenders each have something different to offer borrowers. These lenders report loan payments to the credit bureaus, so your on-time payments can help you build credit.
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Borrowers with bad credit can expect an annual percentage rate on personal loans between 20% and 30%. Some lenders may consider what you’re using the funds for and the amount you request when calculating your rate.
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace from July 1, 2020, to July 31, 2021. Rates are estimates only and not specific to any lender.
A bad-credit loan is a for borrowers with low credit scores. These loans have fixed rates and are repaid in fixed monthly installments. They are typically not backed by collateral — they're unsecured. Lenders consider your credit score, credit report and debt-to-income ratio when deciding whether to lend you the money.
Having (300-629 on the FICO scale) doesn’t automatically disqualify you from getting a personal loan, but it lowers your chances of approval. If you do qualify, you may get an interest rate at the high end of a lender’s range.
Many bad-credit lenders consider your credit score on a personal loan application, but they also weigh other factors. Here are a few things lenders look for when qualifying you for a loan.
Bad-credit loans typically have higher interest rates than good-credit loans, but you should still compare offers to find the most affordable loan.
There are two ways to measure the cost of a loan:
Annual percentage rate: A loan’s is similar to its interest rate, but it includes any fees a lender may charge, like an fee. Most financial experts agree that affordable loans should have an APR below 36%.
Monthly payments: Measure a loan’s monthly payment against your budget to see if you can afford it. Use a to see your monthly payments on a personal loan with any rate and term.
A longer loan repayment term will get you lower monthly payments, but you’ll pay more in total interest. Aim for a repayment term that keeps your monthly payments affordable, but helps you pay off the loan quickly.
A bad-credit loan can be funded the day you’re approved or it could take up to a week. During the approval process, a lender may ask you for more documentation, like W-2s and pay stubs.
Consider a bad-credit lender that will help you understand and build your credit. Some lenders will share your FICO score for free and offer financial education to help you learn about ways to build credit.
Here are the steps to applying for a bad-credit loan:
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An doesn’t require collateral. Instead, a lender determines whether you qualify based on things like your credit score, income and cash flow.
It may be difficult for bad-credit borrowers to qualify for an unsecured loan because many banks, credit unions and online lenders weigh your credit score heavily on a loan application.
Some online lenders, like those listed above, design their unsecured loans for consumers with low credit scores.
Credit standards are typically lower for secured loans, which require collateral, so it may be easier to qualify if you have bad credit.
When you add collateral to an application, the risk to the lender tends to be lower — it has something of value to take if you don't make the loan payments.
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Banks and credit unions may let you use an account, like a savings or investment account, to secure the loan. Online lenders more often let you secure the loan with a vehicle.
Though adding collateral to the loan can help you qualify or get you a better rate, weigh the importance of getting the loan against the risk of losing your collateral.
A co-signer with better credit and a higher income may improve your chances of qualifying for a loan or get you a lower rate. It tells the lender that if you don’t make the loan payments, someone else likely will.
aren’t as common as joint loans, where you have a co-borrower. Adding a co-borrower has a similar effect on your ability to qualify, but both borrowers have access to the funds on a joint loan. That isn’t the case with a co-signed loan.
With either option, if you fail to make payments on the loan, your co-applicant will be required to pay and both of your credit scores could take a hit.
A lets you borrow from your next paycheck before you receive it. These apps typically don’t consider your credit score at all when you request an advance. Instead, they review your bank account to see when you get paid, how much and how you spend to determine whether you qualify for an advance.
They usually withdraw your funds on your following payday. Advance amounts are typically capped around $250.
These apps may charge fees for things like subscriptions or fast funding, and some ask you to tip them for the service. By using an app you may be paying to access money you’ve earned, so this should be one of the last financing options you consider.
If you use a cash advance app, check your budget and make a plan to cover your necessary expenses, like bill payments, with a smaller paycheck.
The lenders on this page offer legitimate personal loans. Here are a few red flags to look out for when you're loan shopping.
or guaranteed approval: Reputable lenders dig into your finances, including your credit and income, to determine whether you can repay the loan. A lender that doesn't do this may charge exorbitant rates that could land you in a debt trap.
No state license: The Federal Trade Commission requires lenders to register in states where they do business. Many lenders list state licenses on their websites.
Asking for a gift card: No legitimate lender asks for a gift card in exchange for a loan. If you're asked to provide a gift card — even by someone who says they work for a popular lender — consider it a scam.
No fee disclosures: The Truth in Lending Act requires lenders to disclose the loan's APR, total interest and total repayment amount before you sign a loan agreement. Ask to see this information before signing and walk away if the lender refuses.
As with any debt you take on, have a your personal loan.
Update your budget: Follow a that divides your income into needs, wants, savings and debt to ensure timely monthly payments toward your personal loan.
Set up autopay: Setting up automatic payments ensures you’ll make them on time. Over time, this will help improve your credit score. Some lenders offer rate discounts to customers who use autopay.
Keep in touch with the lender: If you lose your job or encounter a surprise expense and think you may fall behind on payments, contact the lender right away to work toward a solution. Some lenders offer hardship programs or will temporarily and waive late fees until you get back on your feet.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 lenders. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product.
Our star ratings award points to lenders that offer consumer-friendly features. Here are some of the things that we look for:
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. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read our.
Disclaimers
Annual Percentage Rates (APR), loan term and monthly payments are estimated based on analysis of information provided by you, data provided by lenders, and publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers' credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term, and credit history. All loans are subject to credit review and approval.
