Compare Bad Credit Loan Rates for January 2022

See if you’re pre-qualified — without affecting your credit score

Just answer a few questions to compare personalized rate estimates instead of ranges.
Learn more about pre-qualifying

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.

Here are 7 lenders for you

Logo

Upstart

4.5

/5
 NerdWallet rating 
Loan term 
3 to 5 years 

Loan amount 
$1,000 - $50,000 

APR 
3.22-35.99% 

Logo

Best Egg

4.5

/5
 NerdWallet rating 
Loan term 
2 to 5 years 

Loan amount 
$2,000 - $50,000 

APR 
5.0-36.0% 

Logo

LendingClub

4.0

/5
 NerdWallet rating 
Loan term 
3 to 5 years 

Loan amount 
$1,000 - $40,000 

APR 
7.0-35.9% 

Logo

OneMain

4.0

/5
 NerdWallet rating 
Loan term 
2 to 5 years 

Loan amount 
$1,500 - $20,000 

APR 
18.00-35.99% 

Logo

LendingPoint

4.0

/5
 NerdWallet rating 
Loan term 
2 to 4 years 

Loan amount 
$2,000 - $36,500 

APR 
24.75% 

Logo

Prosper Borrowers

3.5

/5
 NerdWallet rating 
Loan term 
3 to 5 years 

Loan amount 
$2,000 - $40,000 

APR 
32.0% 

Logo

Universal Credit

4.5

/5
 NerdWallet rating 
Loan term 
3 to 5 years 

Loan amount 
$1,000 - $50,000 

APR 
34.99% 

Compare lenders side-by-side
The lenders you add to compare will appear here so you can easily see their features side-by-side.

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.

» MORE:

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:

» MORE:

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.

» MORE:

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.