Best Personal Loans for Bad Credit

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

Searching for the best personal loans for bad credit requires looking closely at the kind of loan you’re agreeing to. Personal loan interest rates, origination fees and lending terms are just a few factors you must carefully consider when choosing the best personal loan.

Use this comparison of some of the best bad credit personal loans to see which personal loan might be right for you. Whether you need money to repair your home or to cover unexpected financial emergencies, here are the best personal loans for people with bad credit:

Best Personal Loans for Bad Credit
ProviderCredit Score RequiredAPRBorrowing LimitLending PeriodFees
Lending Club6006.16%-35.89%Up to $40,00036-60 monthsLate payment fee of 5.00% of unpaid payment or $15, whichever is greater, if more than 15 days late
Avant Logo 2018AvantMost customers that receive loans have a credit score between 600 and 7009.95%-36.00%$2,000-$35,00024-60 months$25 late fee, $15 dishonored payment fee,
1.50%-4.75% administration fee range
OneMain FinancialNo minimum credit score required16.05%-35.99%$1,500-$30,00024-60 monthsVaries
PersonalLoans.com6005.99%-35.99%$1,000-$35,0006-72 months1%-5% origination fee
NetCreditVaries34.00%-155.00%$2,600-$10,0006-48 monthsVaries by state
RiseVaries36.00%-225.00%$2,600-$5,00011-26 monthsVaries
Lending Point60015.49%-34.99%$2,000-$25,00024-48 months$30 late fee, 5% origination fee
Upstart6208.92%-29.99%$1,000-$50,0003 – 5 years1%-6% origination fee, $15 late fee
Prosper6405.99%-35.99%$2,000-$35,0003-5 years1%-5% origination fee
*Rates are accurate as of June 12, 2018

Lending Club

Lending Club is a peer-to-peer online credit marketplace, meaning your lender will be another individual rather than a bank or other financial institution. Lending Club will act as a broker that puts you in contact with potential lenders. The model appears to be popular, with over 2.4 million customers borrowing more than $35 billion.

The application process can take mere minutes, and you can borrow up to $40,000 with repayment terms of three to five years at interest rates as low as 5.89% APR. But, although there’s no minimum credit score needed, lenders will likely charge a higher APR for borrowers with lower credit scores, meaning you might be pushed toward the higher end of the rate ranges if you have bad credit.

Good for:

  • People in need of large sums of cash
  • People who don’t want to borrow from a bank or other financial institution

Pros:

  • A 15-day grace period to make payments without being charged a late fee
  • Borrow up to $40,000
  • No origination fee

Cons:

  • Personal loans cannot be put toward college education expenses or to make investments
  • Online-only lender without branch infrastructure

Avant

Avant offers personal loans for poor credit, and it has already served more than 600,000 customers with some $4 billion in loans. Loans can be secured with an APR as low as 9.95 percent in just a few minutes. There is, however, an administration fee that can reach upwards of 4.75 percent.

Good for: 

  • People with a very short credit history
  • People in need of quick access to funds

Pros:

  • Fast approval
  • Funds might be available by next business day
  • No restrictions on usage

Cons:

  • Administration fee as high as 4.75 percent
  • Late and dishonored payment fees

OneMain Financial

OneMain Financial’s personal loans require no minimum credit score and include the potential to get a secured loan depending on your finances. This company also includes certain restrictions on how you can use the money — you’re not allowed to use this loan for college tuition, vocational expenses or business expenses, among other things — and the lowest APR available is 16.05 percent. You can possibly get approved in a single day with your funds available the next day.

Good for:

  • People willing to pay higher interest for fast access to funds
  • People looking for a bad-credit secured loan

Pros: 

  • No minimum credit score required
  • Fast approval and availability of funds
  • Option for secured loan in certain circumstances

Cons:

  • High minimum APR
  • Limits on how funds can be used

PersonalLoans.com

PersonalLoans.com boasts that its proprietary technology can evaluate your personal loan needs and connect you with the ideal lender for your circumstances. It offers loan terms as long as six years, the option to borrow up to $35,000 and approval within minutes for many applicants. The minimum credit score required, however, is 600, and you’ll pay a 1 to 5 percent origination fee.

Good for:

  • People with a credit score over 600
  • People looking for a long repayment period

Pros:

  • Flexible loan terms of six to 72 months
  • Loans up to $35,000
  • Approval in minutes

Cons:

  • 1 to 5 percent origination fee
  • Minimum credit score of 600

Find Out: 10 Common Personal Loans — and Options for When You Can’t Qualify

NetCredit

NetCredit doesn’t just offer personal loans for poor credit — it provides financial tools you can use to improve your credit and create a loan that fits your needs. My CreditBuilder is designed to help you improve your bad credit score, the My RightFit Tool enables you to customize the personal loan that works best in your financial life, and the ClearCost for Me tool claims to offer up totally transparent information about repayment terms, fees and interest.

NetCredit offers some of the lower loan amounts at some of the worst terms of the options on this list, however, with a minimum APR of 34 percent — ranging up to as high as 155 percent — and a maximum loan amount of just $10,000.

Good for:

  • People interested in tools and features to help them understand their credit score
  • People looking for customizable terms

Pros:

  • Online tools to help improve credit
  • ClearCost for Me promises transparency about costs and terms
  • My ScoreSaver allows you to check eligibility without affecting credit score

Cons:

  • 34% to 155% APR
  • Maximum loan amount of $10,000

Rise

Rise positions itself specifically as an alternative to high-interest payday loans for people with low credit and short-term financial crunch. Given that it’s intended for consumers with a financial emergency, the company promises a rapid turnaround from the application process to receiving the money in question, but the terms of the loans involve a very low maximum amount you can borrow as well as very high interest rates. Of the companies listed here, none offers less money or higher rates than Rise.

Good for:

  • People in a financial emergency who need fast cash and can afford a higher interest rate

Pros:

  • Free TransUnion credit score
  • Free credit alerts
  • Can secure funds by next business day

Cons:

  • APR range of 36 to 225 percent
  • Maximum loan amount of $5,000

Lending Point

Lending Point offers up to $25,000 and a next-day deposit on its loans in addition to the option for breaking your monthly payments up into bimonthly payments to make them more manageable. Moreover, there are no restrictions on how you spend the money.

LendingPoint does, however, have a minimum credit score requirement of 600 and charges a 5 percent origination fee. It’s also only available in 32 states.

Good for:

  • People looking for more, smaller payments

Pros:

  • Next-day deposit of funds
  • Option to break up monthly payments to make them smaller
  • No restrictions on usage

Cons:

  • Minimum credit score of 600 required
  • 5 percent origination fee
  • $30 late payment fee
  • Availability limited to 32 states and Washington, D.C.

Check Out: How to Get a Home Equity Loan When You Have Bad Credit

Upstart

Upstart claims to look at its customers as more than just a credit score, incorporating other elements like education and experience into your final rate. Although that could offer options for people who might be having trouble securing a loan due to a short credit history, the company does still have a minimum credit score requirement of 620.

The maximum loan amount of $50,000 is the highest offered among the companies on this list, and the company promises the potential to receive your loan as soon as the next day, though with a 1 to 6 percent origination fee.

Good for:

  • People with income and education levels that are better than their credit score reflects
  • People looking for large loan amounts without restrictions on usage

Pros: 

  • Can borrow up to $50,000 without restrictions on usage
  • Funds available as soon as the next day after application
  • Can secure a lower rate based on factors other than your credit score

Cons:

  • 1 to 6 percent origination fee
  • $15 late fee
  • Minimum credit score of 620

Prosper

Prosper has the highest credit score requirement of this bunch — 640 — and charges a 1 to 5 percent origination fee. The company, however, also offers APRs as low as 5.99 percent, immediate approval with funds available within a few business days and a maximum loan amount of $35,000.

Good for:

  • People with credit scores over 640
  • People looking for fast access to funds at competitive rates

Pros: 

  • APR starting as low as 5.99 percent
  • Immediate approval
  • Funds available within a few business days
  • Maximum loan value of $35,000

Cons:

  • Minimum credit score of 640 required
  • 1 to 5 percent origination fee

Up Next: Best Lenders for Bad Credit Home Loans

Andrew DePietro contributed to the reporting for this article.

*Rates are accurate as of June 12, 2018.

More on Personal Loans

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.

All unsecured installment loans issued through Avant are made by WebBank, member FDIC.

Lending Club: Rates from 5.99% to 35.96%* APR. Best APR is available to borrowers with excellent credit.