Bad Credit Loans: Compare Top Lenders, Rates for March 2023

Last updated on March 1, 2023

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Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Featured partners
OneMain Financial
OneMain Financial

4.0

NerdWallet rating 
OneMain prioritizes a borrower’s ability to repay on a loan application. Rates are high, but this lender provides fast funding to borrowers with low credit scores.

OneMain prioritizes a borrower’s ability to repay on a loan application. Rates are high, but this lender provides fast funding to borrowers with low credit scores.

Self Credit-Builder Loan
Self Credit-Builder Loan
On-time payments can get your credit profile off to a good start or help you recover from a mistake.

On-time payments can get your credit profile off to a good start or help you recover from a mistake.

Here are 6 lenders for you

LendingClub

on NerdWallet

LendingClub

5.0

NerdWallet rating 
LendingClub

5.0

NerdWallet rating 
Loan term 
3 to 5 years

Loan amount 
$1,000 - $40,000

APR 
8.30 - 36.00%

on NerdWallet

Min. credit

600

Qualifications

  • Minimum credit score: 600.

  • Maximum DTI: 60%; 40% for joint applicants.

  • Minimum credit history: 37 months and two accounts.

Pros

  • Joint loan option.

  • Direct payment to creditors with debt consolidation loans.

  • Option to pre-qualify with a soft credit check.

  • Option to change your payment date.

Cons

  • Origination fee.

  • Late fee.

  • No mobile app to manage loan.

Disclaimer

Between April 2022 and June 2022, Personal Loans issued by LendingClub Bank were funded within 44 hours after loan approval, on average. The time it takes for a loan to be funded is not guaranteed and individual results vary based on multiple factors, including but not limited to investor demand. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $16,980 for a term of 36 months, with an interest rate of 13.49% and a 6.00% origination fee of $1,019, for an APR of 17.89%. In this example, the borrower will receive $15,961 and will make 36 monthly payments of $576. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states. For Personal Loans, APR ranges from 8.30% to 36.00% and origination fee ranges from 3.00% to 6.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of July 11, 2022 and are subject to change without notice. Loans are made by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. LendingClub Bank is not an affiliate of NerdWallet Compare, Inc. which is an unrelated third party (“third party”). LendingClub Bank is not responsible for any products and services provided by this third party and may receive compensation if you visit the third party’s websites or use any of its products or services. Credit eligibility is not guaranteed. Loans are subject to credit approval and may be subject to sufficient investor commitment before they can be funded or issued. Certain information that LendingClub Bank subsequently obtains 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. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com. “LendingClub” is a trademark of LendingClub Bank.

Upstart

on NerdWallet

Upstart

4.5

NerdWallet rating 
Upstart

4.5

NerdWallet rating 
Loan term 
3 to 5 years

Loan amount 
$1,000 - $50,000

APR 
6.50 - 35.99%

on NerdWallet

Min. credit

None

Qualifications

  • Minimum credit score: None.

  • Minimum annual income: $12,000; this lender accepts income from employment, alimony, retirement, child support, Social Security, rentals, trusts, pensions, disability and scholarships.

  • Must have a full-time job or be starting a full-time job in six months.

Pros

  • Accepts borrowers new to credit.

  • Fast funding.

  • Option to change your payment date.

  • Option to pre-qualify with a soft credit check.

  • Offers free financial education

Cons

  • May charge origination fee.

  • No joint, co-signed or secured loans.

  • No mobile app to manage loan.

  • Only two repayment term options.

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). 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 26.48% and 60 monthly payments of $26.73 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $16,038 including a $752 origination fee. APR is calculated based on 5-year rates offered in December 2022. 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.

Best Egg

on NerdWallet

Best Egg

4.5

NerdWallet rating 
Best Egg

4.5

NerdWallet rating 
Loan term 
3 to 5 years

Loan amount 
$2,000 - $50,000

APR 
8.99 - 35.99%

on NerdWallet

Min. credit

600

Qualifications

  • Minimum credit score: 600; borrower average is 700.

  • Minimum credit history: Three years and three accounts.

  • Minimum income requirement is $3,500; borrower average is $80,000. Borrower must have enough cash flow to cover current financial obligations.

  • Maximum 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

  • Origination fee.

  • No rate discounts.

  • No option to choose initial payment date.

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 $100,000. Annual Percentage Rates (APRs) range from 8.99%–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%–8.99% 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. For example: a 5‐year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3‐year $5,000 loan with 7.99% APR has 36 scheduled monthly payments of $155.12. 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. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories.

Universal Credit

on NerdWallet

Universal Credit

4.5

NerdWallet rating 
Universal Credit

4.5

NerdWallet rating 
Loan term 
3 to 5 years

Loan amount 
$1,000 - $50,000

APR 
11.69 - 35.93%

on NerdWallet

Min. credit

560

Qualifications

  • Minimum credit score: 560.

  • 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.

Pros

  • Offers direct payment to creditors with debt consolidation loans.

  • Fast funding.

  • Offers multiple rate discounts.

  • Offers free credit score access.

Cons

  • Charges origination fee.

  • Borrowers can choose from only two repayment term options.

Disclaimer

Personal loans made through Universal Credit feature Annual Percentage Rates (APRs) of 11.69%-35.93%. All personal loans have a 5.25% to 8.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 36 to 60 months. For example, if you receive a $10,000 loan with a 36-month term and a 28.47% APR (which includes a 22.99% yearly interest rate and a 7% one-time origination fee), you would receive $9,300 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.

Prosper Borrowers

on NerdWallet

Prosper Borrowers

4.5

NerdWallet rating 
Prosper Borrowers

4.5

NerdWallet rating 
Loan term 
2 to 5 years

Loan amount 
$2,000 - $50,000

APR 
31.81 - 32.13%

on NerdWallet

Min. credit

560

Qualifications

  • Minimum credit score: 560; borrower average is 685.

  • Minimum income: No minimum requirement; borrower average is $86,000.

  • Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 18.29%.

  • 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.

  • Origination and late fees.

  • No direct payment to creditors with debt consolidation loans.

Disclaimer

APRs presented are estimated and were created based upon information entered by the consumer and through analysis of information publicly available at Prosper.com. The estimated APR presented does not bind Prosper. The range of APRs available through Prosper is 6.99% to 35.99%. Only borrowers with excellent credit qualify for the lowest rate available. Your actual APR depends upon credit score, Prosper Rating, loan amount, loan term, credit usage and history. All loans are subject to credit review and approval. All personal loans made by WebBank. For example, a two-year $10,000 personal loan would have an interest rate of 11.5% and a 4.00% origination fee for an annual percentage rate (APR) of 15.64% APR. You would receive $9,600 and make 24 scheduled monthly payments of $468.40. 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 four-year $10,000 personal loan would have an interest rate of 11.50% and a 5.00% origination fee for an annual percentage rate (APR) of 14.27% APR. You would receive $9,500 and make 48 scheduled monthly payments of $260.89. 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 1%-5%. Personal loan APRs through Prosper range from 6.99% to 35.99%, with the lowest rates for the most creditworthy borrowers. Eligibility for personal loans up to $50,000 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. **You may receive your funds one business day after your acceptance of the loan offer, completion of all necessary verification steps and final approval. One business day funding is also dependent on your bank’s ability to quickly process the transaction.

OneMain

on NerdWallet

OneMain

4.0

NerdWallet rating 
OneMain

4.0

NerdWallet rating 
Loan term 
2 to 5 years

Loan amount 
$1,500 - $20,000

APR 
18.00 - 35.99%

on NerdWallet

Min. credit

None

Qualifications

  • Must have a Social Security number or taxpayer identification number.

  • Must be 18 or older in most states.

  • Minimum credit score: None.

  • Minimum number of accounts on credit report: None, but applicants with no credit history may not qualify.

  • Minimum income: None; this lender accepts income from employment, alimony, retirement, child support, Social Security payments, investments and public assistance.

Pros

  • Option to choose and change your payment date.

  • Joint and secured loans.

  • Fast funding.

  • Direct payment to creditors on debt consolidation loans.

Cons

  • Rates are high compared to other lenders.

  • Charges origination fee.

  • No rate discounts.

  • Pre-qualification does not allow borrowers to preview potential rates.

Disclaimer

Not all applicants will be approved. 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). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. 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. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. 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 $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loan-fees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; 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. North Dakota: $2,000. 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. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender. Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07. Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.


Compare the best bad-credit loans

NerdWallet has rated and reviewed personal loans from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives, go through lenders’ pre-qualification processes and compare lenders with each other as well as other financial products. 

These are our picks for the best bad-credit loans.

Lender

Best for

Minimum credit score

Full APR range

Loan amount

Overall bad-credit loans.

560.

8.24% - 35.97%.

$1,000 - $50,000.

Borrowers with limited credit history.

None.

6.50% - 35.99%.

$1,000 - $50,000.

Secured and joint loans.

None.

18.00% - 35.99%.

$1,500 - $20,000.

Credit-building tools.

560.

11.69% - 35.93%.

$1,000 - $50,000.

Small loans.

None.

20.05% - 35.99%.

$300 - $12,000.

Midsize expenses and home improvement projects.

660.

7.99% - 35.99%.

$2,000 - $36,500.

More about these lenders

Upgrade

on Upgrade's website

5.0

NerdWallet rating 

on Upgrade's website

Min. credit score

560

Est. APR

8.24-35.97%

Loan amount

$1,000-$50,000

Upgrade offers personal loans plus credit-building tools; you'll need strong cash flow to qualify.

Pros

  • 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.

Cons

  • Origination fee.
  • No option to choose your payment date.
Read full review

Qualifications

  • Minimum credit score: 560.
  • Minimum number of accounts on credit history: One account.
  • Maximum debt-to-income ratio: 75%, including the loan you're applying for.
  • Minimum length of credit history: Two years.
  • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.

Available Term Lengths

  • 2 to 7 years

Fees

  • Origination fee: 1.85% to 8.99%.
  • Late Fee: $10.
  • Failed payment fee: $10.

Disclaimer: Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.24%-35.97%. All personal loans have a 1.85% to 8.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. 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. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners .

Upstart

on Upstart's website

4.5

NerdWallet rating 

on Upstart's website

Min. credit score

None

Est. APR

6.50-35.99%

Loan amount

$1,000-$50,000

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.

Pros

  • Accepts borrowers new to credit.
  • Fast funding.
  • Option to change your payment date.
  • Option to pre-qualify with a soft credit check.
  • Offers free financial education

Cons

  • May charge origination fee.
  • No joint, co-signed or secured loans.
  • No mobile app to manage loan.
  • Only two repayment term options.
Read full review

Qualifications

  • Minimum credit score: None.
  • Minimum annual income: $12,000; this lender accepts income from employment, alimony, retirement, child support, Social Security, rentals, trusts, pensions, disability and scholarships.
  • Must have a full-time job or be starting a full-time job in six months.

Available Term Lengths

  • 3 to 5 years

Fees

  • Origination fee: 0% - 10%
  • Late fee: 5% of past due amount or $15, whichever is greater.
  • Returned check fee: $15.

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). 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 26.48% and 60 monthly payments of $26.73 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $16,038 including a $752 origination fee. APR is calculated based on 5-year rates offered in December 2022. 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.

OneMain

on OneMain Financial's website

4.0

NerdWallet rating 

on OneMain Financial's website

Min. credit score

None

Est. APR

18.00-35.99%

Loan amount

$1,500-$20,000

OneMain prioritizes a borrower’s ability to repay on a loan application. Rates are high, but this lender provides fast funding to borrowers with low credit scores.

Pros

  • Option to choose and change your payment date.
  • Joint and secured loans.
  • Fast funding.
  • Direct payment to creditors on debt consolidation loans.

Cons

  • Rates are high compared to other lenders.
  • Charges origination fee.
  • No rate discounts.
  • Pre-qualification does not allow borrowers to preview potential rates.
Read full review

Qualifications

  • Must have a Social Security number or taxpayer identification number.
  • Must be 18 or older in most states.
  • Minimum credit score: None.
  • Minimum number of accounts on credit report: None, but applicants with no credit history may not qualify.
  • Minimum income: None; this lender accepts income from employment, alimony, retirement, child support, Social Security payments, investments and public assistance.

Available Term Lengths

  • 2 to 5 years

Fees

  • Origination fee: $25 to $500 or 1% to 10% of the loan amount.
  • Late fee: $5 to $30 or 1.5% to 15% of your monthly payment.
  • Non-sufficient funds fee: $15.

Disclaimer: Not all applicants will be approved. 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). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. 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. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. 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 $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loan-fees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; 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. North Dakota: $2,000. 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. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender. Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07. Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.

Universal Credit

on Universal Credit's website

4.5

NerdWallet rating 

on Universal Credit's website

Min. credit score

560

Est. APR

11.69-35.93%

Loan amount

$1,000-$50,000

A Universal Credit loan is an option for bad-credit borrowers with high debt-to-income ratios, but rates are high compared to similar lenders.

Pros

  • Offers direct payment to creditors with debt consolidation loans.
  • Fast funding.
  • Offers multiple rate discounts.
  • Offers free credit score access.

Cons

  • Charges origination fee.
  • Borrowers can choose from only two repayment term options.
Read full review

Qualifications

  • Minimum credit score: 560.
  • 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.

Available Term Lengths

  • 3 to 5 years

Fees

  • Origination fee: 5.25% to 8.99%.
  • Late fee: Up to $10.

Disclaimer: Personal loans made through Universal Credit feature Annual Percentage Rates (APRs) of 11.69%-35.93%. All personal loans have a 5.25% to 8.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 36 to 60 months. For example, if you receive a $10,000 loan with a 36-month term and a 28.47% APR (which includes a 22.99% yearly interest rate and a 7% one-time origination fee), you would receive $9,300 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.

Oportun
See my rates

on NerdWallet's secure website

Oportun

3.5

NerdWallet rating 
See my rates

on NerdWallet's secure website

Min. credit score

None

Est. APR

20.05-35.99%

Loan amount

$300-$12,000

Oportun offers small loans at rates that are lower than payday loans, but still high. Fixed payments help you establish credit.

Pros

  • Pre-qualify with soft credit check.
  • Co-signed and limited secured loan options.
  • Accepts borrowers new to credit.
  • Small loans starting at $300.
  • Community Development Financial Institution.
  • Free financial coaching.

Cons

  • May charge an origination fee.
  • High rates.
  • No mobile app to manage loan payments.
  • No option to change your payment date.
Read full review

Qualifications

  • Minimum credit score: None.
  • At least $500 in monthly income.
  • Must have valid identification.
  • Must provide proof of income and address.
  • May require references.
  • Must be 18 years or older.

Available Term Lengths

  • 1 to 5 years

Fees

  • Origination fee: 0% - 7%.
  • Late fee: $5 - $15.
  • Insufficient fund fee: $0 - $30.

Disclaimer: This is an advertisement for a consumer loan, subject to credit eligibility. Not available in CO, CT, IA, MA, ME, MD, NY, WV and Washington, D.C. Loans in AZ, CA, FL, ID, IL, MO, NJ, NM, TX, UT, and WI are originated by Oportun Inc. California loans made pursuant to a California Financing Law license. NV loans originated by Oportun, LLC. In all other states, loans are originated by MetaBank, N.A., member FDIC. Terms, conditions, and state restrictions apply. See oportun.com for details.

LendingPoint

on LendingPoint's website

4.5

NerdWallet rating 

on LendingPoint's website

Min. credit score

660

Est. APR

7.99-35.99%

Loan amount

$2,000-$36,500

LendingPoint accepts low credit scores and has flexible payments. Rates are high but comparable to competitors.

Pros

  • Soft credit check to pre-qualify.
  • Fast funding.
  • Offers mobile app to manage loan payments.
  • Option to change your payment date.

Cons

  • Reports payments to only two of the three major credit bureaus.
  • No joint, co-signed or secured loans.
  • No large loan amounts.
  • Does not directly pay creditors with debt consolidation loans.
Read full review

Qualifications

  • Minimum credit score: 660. LendingPoint uses FICO score version 9 and VantageScore version 3.
  • Minimum credit history: 6 months.
  • Maximum debt-to-income ratio: 50%, not including mortgage.

Available Term Lengths

  • 2 to 5 years

Fees

  • Origination fee: 0% to 8%.

Disclaimer: Applications submitted on this website may be funded by one of several lenders, including: FinWise Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; Midland States Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. 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 8% may apply depending upon your state of residence. Upon final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. Loans are offered from $2,000 to $36,500, at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 72 months. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $2,000. For a well-qualified customer, a $10,000 loan for a period of 48 months with an APR of 24.90% and origination fee of 8% will have a payment of $331.01 per month. (Actual terms and rate depend on credit history, income, and other factors.) Customers may have the option to deduct the origination fee from the disbursed loan amount if desired. If the origination fee is added to the financed amount, interest is charged on the full principal amount. The total amount due is the total amount of the loan you will have paid after you have made all payments as scheduled.

NerdWallet’s guide to choosing the best personal loan for bad credit

A bad credit score (629 or lower) may not prevent you from getting a personal loan. In fact, you may receive loan offers from multiple lenders despite having a low credit score. The best bad-credit loan is usually the one with the lowest annual percentage rate, but there are other factors to consider when applying.

This guide will help you decide which personal loan is right for you and walk you through the steps to get one.

What is a bad-credit personal loan?

A bad-credit personal loan is for borrowers with low credit scores or thin credit histories. Lenders that offer bad-credit loans may accept borrowers with good or excellent credit scores (690 or higher) but have underwriting that’s flexible enough to accept those with low scores, too.

Like all personal loans, bad-credit loans have fixed rates and are repaid in fixed monthly installments over a period of two to seven years. Loan amounts range from about $1,000 to $50,000. These loans typically aren’t backed by collateral — they're unsecured.

Though you may qualify for a personal loan with bad credit, your rate will likely be on the high end of a lender’s range, and your approved loan amount may be smaller than what you request.

How to choose a bad-credit loan

Qualification requirements and cost are the most important features to consider when choosing a personal loan. Here are some tips to compare bad-credit loans.

Check the lender’s borrowing requirements. Bad-credit lenders consider many factors on a loan application, including:

  • Credit score: If a lender has a minimum credit score requirement, you’ll need at least that score, but ideally a higher one, to qualify.

  • 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 any other loan or credit card payments, and have money left over after your new personal loan payment.

  • Co-applicant and collateral: If the lender offers a co-signed or secured loan, the person or item you add to the application becomes a factor in deciding whether you qualify.

Review the annual percentage rate. A loan’s APR consists of the interest rate plus any fees a lender charges. Many bad-credit online lenders charge an origination fee — a percentage of the loan the lender takes from the loan amount — and it is included in the APR. The highest APR an affordable bad-credit loan should have is 36%, according to most consumer advocates.

Calculate the monthly payments. Review your budget to determine what an affordable monthly payment would be. Then, use a personal loan calculator to see what rate and repayment term you’d need to get that monthly payment.

Compare other loan features. If you have two or more competitive bad-credit loan offers, compare loan features like funding time, whether the lender provides credit-building assistance and if you’re allowed to change the payment date.

How to get a bad-credit loan

Here are the steps to get a bad-credit personal loan:

  1. 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 report before applying may improve your chances of qualifying. You can get them for free at AnnualCreditReport.com.

  2. Pre-qualify to compare offers. Many lenders let you pre-qualify online to preview potential loan offers. You provide some information about yourself, like your income, desired loan amount and loan purpose, and the lender does a soft credit pull to determine your eligibility. No two lenders have the same borrowing requirements, so it pays to pre-qualify with multiple lenders.

  3. Consider adding a co-signer or collateral. If you don’t get a good offer by pre-qualifying, consider strengthening the application with collateral or a co-signer. Some lenders won’t offer these options unless you fail to pre-qualify for an unsecured loan.

  4. Submit an application. Once you’ve found the right lender, gather documents, including proof of income and employment, a government-issued ID and bank statements. Most lenders have online personal loan applications, but your local bank or credit union may require an in-person application. The lender will do a hard credit check when you apply, causing your score to temporarily drop. Expect a decision within a few days.

  5. Add the new loan payment to your budget. On-time loan payments can build your credit. Add loan payments to your monthly budget and set up autopay to avoid missing any.

Where to get a bad-credit loan

Online: Some online lenders offer personal loans specifically for bad-credit borrowers. These lenders may consider information beyond your credit and income to qualify you, though those are still major factors in a loan decision.

At a credit union: Credit unions rely more on traditional information like credit and income but may also consider your history as a member. A member in good standing with the credit union may qualify for a personal loan despite a low credit score.

At a bank: Banks base loan decisions primarily on your credit score, history and income. Major banks are less flexible on qualification requirements, but having a good relationship with a local bank may help you qualify.

Even if your bank or credit union doesn’t have pre-qualification, you can bring in a pre-qualified offer and ask if it will beat that offer.

How does bad credit affect your ability to get a personal loan?

Bad credit may not automatically disqualify you from getting a personal loan, but you’re likely to get a loan with a higher rate.

Keep in mind that while credit is a top factor in determining your eligibility and rate, it’s not the only one lenders consider on an application.

What is a bad credit score?

A bad credit score is generally from 300 to 629, but individual lenders may define bad credit differently. Many lenders use the credit scoring company FICO, which defines poor credit as below 580. Some lenders use FICO’s competitor, VantageScore, which puts “subprime” scores between 300 and 600.

Bad-credit loans are intended for borrowers with scores on the high end of “bad” (think 560 and up). The lowest scores (below 500) are unlikely to qualify.

Bad-credit loan rates

Lenders consider bad-credit loans to be risky, and they charge high rates to make up for that risk.

Here are average personal loan rates for each credit score range.

How's your credit?

Score range

Estimated APR

Excellent

720-850.

11.3%.

Good

690-719.

15.6%.

Fair

630-689.

22.3%.

Bad

300-629.

25.2%.

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace from July 1, 2022, to Oct. 31, 2022. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below a 500 credit score — are unlikely to qualify. Information in this table applies only to lenders with APRs below 36%.

6 types of bad-credit loans

The most common type of personal loan is unsecured with fixed rates and payments. Other loans are available to bad-credit borrowers, such as joint and “buy now, pay later” loans. Compare loan types to find the right one for your situation.

Unsecured personal loans

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.

It may be difficult for bad-credit borrowers to qualify for an unsecured loan because many banks, credit unions and online lenders weigh credit scores heavily when approving this type of loan.

Secured personal loans

Credit standards are typically lower for secured loans, which require collateral, so it may be easier to qualify if you have bad credit.

Adding collateral to an application lowers the lender’s risk because it has something valuable to take if you don't repay the loan. Banks and credit unions usually accept a savings or investment account as collateral, while online lenders often accept a vehicle.

Though it may be easier to qualify or get a lower rate on a secured loan, weigh the importance of getting the loan against the risk of losing your collateral.

Co-signed personal loans

A co-signer with better credit and higher income may improve your chances of qualifying for a loan or get you a lower rate. Having a co-signer tells the lender that if you don’t make the loan payments, someone else likely will.

A co-signer doesn’t have access to the loan funds or information about your payments. If you fail to make a payment, both of your credit scores will be affected.

Joint personal loans

A joint personal loan is one that you get with another person. It works similarly to a co-signed loan: The lender usually considers both borrowers’ credit and income on an application.

Once approved, both borrowers are equally responsible for repayment, and both borrowers have access to the loan funds and payment information.

Buy now, pay later

Buy now, pay later” companies like Affirm and Afterpay let consumers split a purchase into smaller installments.

These companies don’t do a hard credit pull, so consumers with bad credit may often qualify. BNPL can help you cover an urgent purchase, but it’s best to wait until you’ve paid off one purchase before using it on another.

Cash advance apps

A cash advance app lets you borrow a few hundred dollars from your next paycheck before you receive it. These apps typically don’t consider your credit score when you request an advance. Instead, they review deposits and expenses in your bank account to determine whether you qualify for an advance.

They often withdraw repayment on your following payday. These apps may charge fees for things like subscriptions or fast funding, and most ask you to tip them for the service.

Alternatives to high-interest loans for bad credit

High-interest lenders offer payday, pawn, car title and expensive installment loans to consumers with bad credit. They tout fast applications and no credit checks, but the loans can be difficult to repay and may damage your finances.

If you can’t qualify for a bad-credit loan with a low interest rate, here are some alternatives to consider.

Family loan: Borrow from a trusted friend or family member. It may help to have a plan for interest, repayment terms and payment frequency in mind when you ask for the loan. Then, you and the lender can formalize the details in a family loan agreement.

Payment plan for bills: If you’re struggling to cover rent, utilities or credit card payments, consider asking for an extension or getting on a hardship program. Your credit card issuer, mortgage lender or utility company’s website may have an online application for hardship assistance, but you may have to ask a landlord directly.

Local nonprofits or charities: For help meeting basic needs, consider a local food shelter, religious organization or nonprofit. Some organizations can provide food, clothing or bus tickets. NerdWallet’s database of local payday loan alternatives lists resources in each state.

Medical bill assistance: Medical bill negotiators, medical credit cards or a payment plan with your provider may help take some of the stress and urgency out of paying a steep medical bill. These options may come with fees or interest, so compare medical bill payment options to find the most affordable one.

How to spot a bad-credit loan scam

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 bad-credit loan.

  • No credit check 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.

NerdWallet’s personal loan rating methodology

NerdWallet writers and editors conduct a full fact check of our personal loan ratings and reviews 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. 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. We do not receive compensation for our ratings. Read more about our personal loan star ratings methodology and our editorial guidelines.

Frequently asked questions


About the author: Annie Millerbernd is a personal loans writer. Her work has appeared in The Associated Press and USA Today.


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.