Best Bad Credit Personal Loans of 2016

Having bad credit doesn't immediately disqualify you from personal loans.

bad credit personal loans

Searching for the best personal loans for poor credit requires looking closely at the kind of loan you’re agreeing to. APR ranges, origination fees and lending terms are just a few factors you must carefully consider when choosing a bad credit loan lender. To make the search easier, GOBankingRates rounded up some of the best bad credit personal loans, excluding payday loans and signature loans.

From secured loans to unsecured loans, compare the best bad credit personal loans to see which personal loan might be right for you. Whether you need money for electricians and building supplies to repair your home or for unexpected financial emergencies, here are the best bad credit personal loans:

  • Lending Club
  • Avant
  • Springleaf Financial
  • PersonalLoans.com
  • NetCredit
  • Rise
  • OneMain
  • Lending Point
  • Upstart
  • Vouch
Personal Loan Provider, Lender or PlatformMinimum Credit Score RequirementBorrowing LimitAPRFeesHow to Apply
Lending ClubNone listed$1,000-$40,0005.99%-35.89%•1%-6% origination fee
•5$ or $15 late payment fee
• $15 unsuccessful payment fee
Apply Now
AvantNone listed $1,000-$35,0009.95%-36.00%Fees vary by stateApply Now
 Springleaf FinancialNone listed$1,500-$10,000Depends on the stateNone listed on websiteApply Now
 PersonalLoans.com580-600, depending on type of personal loan$1,000-$35,000None listed, varies•1%-5% origination fee (peer-to-peer)Apply Now
 NetCreditNone listed$1,000-$10,000None listed, variesNoneApply Now
RiseNone listed$500-$5,000VariesVariesApply Now
OneMainNone listed$1,500-$9,999VariesNone listedApply Now
Lending Point600$3,500- $20,00017.49%-36.00%•5% origination fee
•$30 late payment fee
Apply Now
 Upstart640$1,000-$50,0004.66%-29.99%•1%-6% origination fee
•5% or $15 late payment fee
• $15 ACH return fee
Apply Now
Vouch600$1,500-$25,00010.68%-29.99%•5% origination fee
•5% or $15 late payment fee
• $15 ACH return fee
Apply Now

Related: Pros and Cons of Peer-to-Peer Lending

Lending Club: Low APRs on Bad Credit Personal Loans

Lending Club is a peer-to-peer online credit marketplace that offers flexible payment terms and competitive APRs on personal loans. In addition to APRs starting as low as 5.99%, Lending Club allows customers to change their monthly payment date online at their convenience — though moving due dates can affect how much interest you end up paying. According to its website, Lending Club borrowers reported that the interest rates on their loans were an average of 32 percent lower than what they were paying on outstanding debt or credit cards.

Credit Score Required: No minimum score listed; requirements based on overall credit worthiness

Borrowing Limit: $1,000 to $40,000

APR: 5.99%-35.89%

Fees:

  • 1 percent to 6 percent origination fee, depending on loan grade
  • 5 percent or $15 late payment fee, whichever amount is greater
  • $15 unsuccessful payment fee
  • $7 check processing fee

Prepayment Penalties: None

When Funds Are Available: 14 to 30 days for approval and funding

Pros: Lending Club offers a 15-day grace period to make payments without being charged a late fee.

Cons: Personal loans cannot be put toward college education expenses or to make investments.

Avant: Good Terms on Personal Loans for Poor Credit

Avant offers personal loans for poor credit with convenient features designed to help you save money. Avant offers courtesy due date adjustment if you can’t make a payment on a loan.

If you want to earn free money, Avant boasts a Referral Rewards program. Every time you refer a friend, you can earn a $50 Amazon gift card for a maximum of $550 per year.

Credit Score Required: Varies, but many of Avant’s customers have a FICO score of 600-700

Borrowing Limit:  $1,000 to $35,000, but can vary by state

APR: 9.95%-36.00%, but can vary

Fees:

  • $25 late payment fee
  • $15 dishonored payment fee

Disclaimer: Fees may vary by state

Prepayment Penalties: None

When Funds Are Available: As soon as next business day (in most cases), but it depends on your bank

Pros: Avant accepts bad credit scores below 600 and there are no restrictions on personal loan use.

Cons: Avant’s credit score requirement could possibly disqualify some applicants with worse credit.

Springleaf Financial: Easy Payment Options for People With Bad Credit

Springleaf Financial’s personal loans can be a great choice for a bad credit personal loan. Your general credit history is considered alongside income versus expenses for qualification. Springleaf provides Direct Pay, a free service that automatically deducts payments from your checking or savings account each month. And, Springleaf’s mobile app puts paying and applying for bad credit personal loans into the palm of your hand.

Credit Score Required: None listed on website

Borrowing Limit: $1,500 to $10,000

APR: Depends on the state

Fees: None listed on website

Prepayment Penalties: None listed on website

When Funds Are Available: As soon as the next business day, on average

Pros: Access to a Springleaf Financial branch could be easy because there are branches in 27 states.

Cons: The website does not clearly list the personal loan APRs, fees or credit score requirements.

PersonalLoans.com: Flexible Terms on Bad Credit Personal Loans

PersonalLoans.com can connect you to some lenders offering the best loans for bad credit. Its network of lenders can provide personal loans for poor credit with terms ranging from six to 72 months. It also provides flexible personal loan options, including peer-to-peer loans, bank personal loans and personal installment loans.

Credit Score Required:

  • 600 minimum for peer-to-peer loans
  • 580 minimum for personal installment loans
  • 580 minimum for bank personal loans

Borrowing Limit: $1,000 to $35,000

APR: None listed, will vary by applicant

Fees: Typically 1 percent to 5 percent origination fee (for peer-to-peer lenders)

Prepayment Penalties: None

When Funds Are Available: As soon as next business day

Pros: Flexible loan terms of six to 72 months and charges no fee for its service

Cons: You can only apply online — not over the phone.

NetCredit: Online Tools to Boost Your Bad Credit Score

NetCredit doesn’t just offer personal loans for poor credit  — it provides financial tools you can use to improve your credit and create a bad credit loan that fits you. My CreditBuilder is designed to help your improve your bad credit score, and the My RightFit Tool enables you to customize the personal loan that works best in your financial life.

Credit Score Required: None listed, but your whole financial picture is taken into consideration

Borrowing Limit: $1,000 to $10,000

APR: Varies by applicant and state

Fees: None, including no origination fees, application fees or late fees

Prepayment Penalties: None

When Funds Are Available: As soon as next business day after approval

Pros: Online tools to help improve credit, ClearCost for Me promises no fees, and the My ScoreSaver means credit check won’t impact your score.

Cons: There is no standard minimum credit score requirement listed on its website.

Rise: Reduce Your Personal Loan APR

Rise can be a good option when you need a personal loan for bad credit because it doesn’t have a set credit score minimum to qualify. But Rise should only be used to get an unsecured loan for appropriate emergencies and circumstances — even its website suggests this.

Rise also has a program in which you can reduce the APR by 50 percent on future personal loans through Rise when you make 24 monthly payments on your first loan. You can also qualify for a 36 percent rate after 12 additional monthly payments.

Credit Score Required: None listed

Borrowing Limit: $500 to $5,000, depending on the state and the applicant

APR: Varies

Fees: Vary by state

Prepayment Penalties: None

When Funds Are Available: As soon as the next business day

Pros: Credit Score Plus helps you keep track of TransUnion credit score for free. Plus, there’s a five-day, risk-free guarantee that allows you to change your mind about taking out a personal loan.

Cons: Rise is available only in 15 states.

OneMain: Same-Day Bad Credit Personal Loans

OneMain could be your place to go for a personal loan for bad credit. You don’t need to have a perfect score; instead, OneMain mandates that borrowers must have some kind of established credit history. OneMain does have a number of restrictions on the use of personal loans, but you can also score a lower APR by getting a secured loan rather than an unsecured personal loan.

Credit Score Required: None listed

Borrowing Limit: $1,500 to $9,999, but maximum amounts vary by state

APR: Varies

Fees: None listed

Prepayment Penalties: None

When Funds Are Available: As soon as the same day if approved by noon

Pros: Fixed rates on loans, and you can cancel your loan within 14 days without incurring any penalties.

Cons: You cannot use your personal loan proceeds for education, vocational, business or commercial expenses. You also can’t use your loan to purchase securities.

Read: 9 Tricky Money Problems You Can Solve With a Personal Loan

Lending Point: Personal Loans You Can Use for Anything

Lending Point is a relatively new bad credit loan provider, so it’s not available on a nationwide level yet. Unlike some loan providers and lending platforms that put restrictions on personal loan use, Lending Point’s loans can be used for any personal expense or purchase of your choosing.

Credit Score Required: 600 minimum

Borrowing Limit: $3,500 to $20,000

APR: 17.49% to 36.00%

Fees:

  • 5 percent origination fee
  • $30 late payment fee

Prepayment Penalties: None

When Funds Are Available: As soon as next business day upon approval

Pros: You can automate payments, and 24/7 customer service is available.

Cons: Lending Point is available in only 13 states and does not offer joint loans.

Upstart: Bad Credit Personal Loans With High Borrowing Limits

Upstart is one of the best providers of personal loans for poor credit because you can use the loan for almost anything, including traveling, paying off credit card debt, and even to pay off student loans. Upstart can also take your SAT and ACT scores into consideration when deciding on a loan rate. In fact, these scores can positively affect your rate.

Credit Score Required: 640 minimum — but Upstart does accept applicants with insufficient credit histories to produce a FICO score, according to its website

Borrowing Limit: $1,000 to $50,000

Rates: 4.66% to 29.99%

Fees:

  • 1 percent to 6 percent origination fee
  • $15 or 5 percent late payment fee, whichever amount is greater
  • $15 ACH return fee

Prepayment Penalties: None

When Funds Are Available: As soon as the next business day, but loans for education purposes will have an additional three business days

Pros: You can change your monthly payment date to fit your schedule.

Cons: You cannot apply with a cosigner.

Vouch: Sponsors for the Best Personal Loan Rates

Vouch offers people access to great bad credit personal loans for less than some of its competitors. What makes the loans cheaper are sponsors, who can help you get a larger loan amount or a better interest rate. For every loan offer, you can get a 1 percent interest rate deduction per sponsor, and you’re allowed up to five qualified sponsors.

Unlike cosigners, sponsors select a specific amount of money they would like to sponsor the borrower for. And, they are only responsible for that stated amount if the borrower doesn’t repay the loan.

Credit Score Required: 600 minimum

Borrowing Limit: $1,500 to $25,000

APR: 10.68% to 29.99%

Fees:

  • 5 percent origination fee
  • $15 or 5 percent late payment fee, whichever amount is greater
  • $15 ACH return fee

Prepayment Penalties: None

When Funds Are Available: Depends on the volume of applications

Pros: Use up to five sponsors to get the best personal loan rates.

Cons: Vouch doesn’t accept collateral to secure your loan, and personal loans can’t be used for education purposes.

Keep Reading: How to Apply for a Personal Loan With a Cosigner

GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack, Inc., an online marketing company serving top-tier banks, credit unions, and other financial services organizations. Some companies mentioned in this article might be clients of ConsumerTrack, Inc., which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved, or otherwise endorsed by the companies included in the article.

GOBankingRates sourced information from the companies’ websites and through the companies’ customer service representatives.