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.
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Getting a personal loan with bad credit
A bad credit score, one that’s below 630, doesn’t have to keep you from getting a personal loan. Some online lenders cater specifically to people with bad credit. These companies take into account your credit scores and history when deciding whether to loan you money, but they also have more flexible requirements than banks do.
While personal loans from reputable online lenders can be good options for many borrowers, NerdWallet recommends you first visit your local credit union when shopping for loans. Most credit unions offer flexible loan terms and lower interest rates than online lenders, especially for people with bad credit. The maximum annual percentage rate at a federal credit union is 18%.
If you can’t get a loan through your local credit union, NerdWallet recommends you compare offers from multiple lenders before signing any loan agreement. Rates for bad credit borrowers can vary depending on the lender’s underwriting requirements. The easiest way to compare actual rates is to pre-qualify. Learn about the pre-qualification process.
What rate should I expect?
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 range||Estimated APR|
|Excellent||720 - 850||13.9%|
|Good||690 - 719||18.0%|
|Average||630 - 689||21.8%|
|Bad||300 - 629||27.2%; lowest scores unlikely to qualify|
Source: NerdWallet lender survey
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.
- Avant personal loans: 2019 review
- LendingClub personal loans: 2019 review
- LendingPoint personal loans: 2019 review
- OneMain Financial personal loans: 2019 review
- Peerform personal loans: 2019 review
Additional steps toward financial health
If you’re borrowing money to pay off debt, a personal loan works best if you have a plan to tackle your debts. Creating a budget and starting a savings habit are small steps that could help you build a stronger financial future.
If you don’t have an immediate need for cash, work on building your credit . A higher credit score will qualify you for more loan opportunities, lower interest rates and better loan terms in the future.
Don’t know your credit score? Several personal finance websites, including NerdWallet, offer a free credit score. Look for a site the offers educational tools such as a credit score simulator plus access to your credit report.
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.