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Personal loans for bad credit

NerdWallet’s personal loans tool helps you compare bad credit loans and find a lender with flexible terms - looking beyond just your credit score.


At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Here are 3 options for you

3 year loan

Upstart

on Upstart

Upstart

Upstart
APR 
5.7-36.0% 

Mo. payment 
$188 

Min. credit 
620 

on Upstart


Min. credit

620

Qualifications

  • Minimum credit score: 620.

  • Minimum credit history: None.

  • Minimum annual income: $12,000.

  • Max debt-to-income ratio: 45%.

Pros

  • Accepts borrowers new to credit.

  • Fast funding.

Cons

  • Origination and late fees.

  • No secured or co-sign option.

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. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5,001. The minimum loan amount in GA is $3,100. The full range of available rates varies by state. The average 3-year loan on Upstart will have an APR of 20% and 36 monthly payments of $35 per $1,000 borrowed. There is no down payment and no prepayment penalty. The average APR on Upstart is calculated based on 3-year rates offered in the last 1 month. 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.

LendingClub

on LendingClub

LendingClub

LendingClub
APR 
7.0-35.9% 

Mo. payment 
$189 

Min. credit 
600 

on LendingClub


Min. credit

600

Qualifications

  • Minimum credit score of 600.

  • Minimum credit history of 3 years.

  • Debt-to-income ratio of less than 40% for single applications, 35% for joint applicants.

Pros

  • Offers a loan option with direct payment to creditors.

  • Co-sign option.

  • Offers hardship plan.

Cons

  • Charges origination and late fees.

  • No rate discount for autopayments.

Disclaimer

*All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 6.95% to 35.89%. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long-term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: 595 Market St suite 200 San Francisco Ca 94105. **Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between Jan. 1, 2018, and July 20, 2018. The time it will take to fund your loan may vary.

Prosper Borrowers

on Prosper Borrowers

Prosper Borrowers

Prosper Borrowers
APR 
7.0-36.0% 

Mo. payment 
$190 

Min. credit 
640 

on Prosper Borrowers


Min. credit

640

Qualifications

  • Minimum credit score: 640, but average is 710.

  • Minimum credit history: Two years, but average is 11.

  • Minimum annual income: None, but average is $89,000.

  • Maximum debt-to-income ratio: 50% (excluding mortgage).

Pros

  • Check your rate with a soft credit check.

  • Fast funding.

Cons

  • Origination and late fees.

  • Does not offer direct payoff to creditors for debt consolidation loans.

Disclaimer

For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility 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 loans made by WebBank, member FDIC.


DIVE EVEN DEEPER IN PERSONAL LOANS

Bad credit loans: What to know

A bad credit score (300-629 on the FICO scale) doesn’t automatically disqualify you from getting a personal loan.

Some online lenders cater specifically to people with bad credit. These loan companies take into account your credit scores and credit history when deciding whether to lend you money, but they also have lower requirements than banks and may consider factors beyond your credit score.

However, interest rates at online lenders can be high if you have bad credit, with annual percentage rates typically above 20%.

What rate should I expect on a personal loan?

Rates vary from lender to lender and depend heavily on your credit history and ability to repay, but here is what interest rates on personal loans look like, on average:

How's your credit?Score rangeEstimated APR
Excellent720 - 85013.9%
Good690 - 71918.0%
Fair630 - 68921.8%
Bad300 - 62927.2%; lowest scores unlikely to qualify

Source: 2018 NerdWallet lender survey

How to get a bad credit loan

Check your credit report: Before you apply for a personal loan, check your credit report and address any errors that could be impacting your score. Bumping your credit several points can not only boost your chances of qualifying, but also get you a lower interest rate.

NerdWallet offers free access to your TransUnion credit report. You can also get a free report from each of the three big credit bureaus (the other two are Experian and Equifax) from AnnualCreditReport.com.

Visit a credit union: Personal loans from reputable online lenders are fast and convenient, but you may get a lower rate and more personalized service from a local credit union. The maximum APR offered at federal credit unions is 18%.

Pre-qualify online: If you can’t get a loan through your local credit union, compare offers from multiple online lenders before signing any loan agreement. The easiest way to compare actual rates is to pre-qualify. Learn about the pre-qualification process.

Submit an application: Applying for a loan can take anywhere from one business day to a week, and the process triggers a hard credit inquiry. That can temporarily hurt your credit score, but it should rebound over time as you make timely payments on the personal loan.

Managing your personal loan

As with any debt you take on, have a plan to pay off your personal loan. Follow these tips for managing your loan.

Update your budget: Follow a budget that divides your income into needs, wants, savings and debt to ensure timely monthly payments toward your personal loan.

Keep in touch with the lender: If you fall behind on payments, contact the lender right away to work toward a solution. Some lenders offer hardship programs or will temporarily suspend your payments until you get back on your feet.

Which lender is right for me?

NerdWallet has reviewed more than 25 lenders to help you compare and choose one that’s right for you. Below is a list of some of our most popular reviews. See our picks for best personal loans.

Here are reviews of lenders that offer personal loans for bad or fair credit:

More bad credit loans


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.