You’ll typically need good to excellent credit to qualify for the best personal loans. That means your FICO score should be 670 or higher if you want the most lending options, the lowest rates, and favorable loan terms.
But you’re not without options if you have a low credit score. Some lenders offer personal loans for bad credit. And some let you apply with a cosigner, which can make you eligible for loans you otherwise wouldn’t be, or lower your rate.
Compare personal loans for bad credit
If you have a credit score below 580, your credit is considered poor, which can make it difficult to qualify for a personal loan with most lenders. However, we partner with a handful of lenders that offer personal loans for bad credit, as well as lenders who accept cosigners.
3.93.9
Credible rating
Fixed (APR)
7.80% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
620
Check Rates
on Credible’s website
View Details
Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Read full review
4.54.5
Credible rating
Fixed (APR)
8.49% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
600
Check Rates
on Credible’s website
View Details
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full review
3.93.9
Credible rating
Fixed (APR)
9.95% - 35.99%
Loan Amounts
$2000 to $35000
Min. Credit Score
550
Check Rates
on Credible’s website
View Details
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Discounts
None
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
Read full review
4.34.3
Credible rating
Fixed (APR)
11.69% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
560
Check Rates
on Credible’s website
View Details
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full review
3.93.9
Credible rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1500 to $20000
Min. Credit Score
540
Check Rates
on Credible’s website
View Details
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full review
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Important
A cosigner is someone who is responsible for repaying the loan if you fail to do so. If you make late payments or miss payments, it can damage their credit. If you stop making payments altogether, they’re on the hook for the amount owed.
Best personal loans for bad credit
Best fast personal loans for all credit types
Upstart
3.9
Credible Rating
Check Rates
on Credible’s website
Est. APR
7.80 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
620
Pros and cons
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
May charge a high origination fee
No discounts offered
More details
Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Best for fair credit
Upgrade
4.5
Credible Rating
Check Rates
on Credible’s website
Est. APR
8.49 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
600
Pros and cons
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
More details
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Best for all credit types
Avant
3.9
Credible Rating
Check Rates
on Credible’s website
Est. APR
9.95 - 35.99%
Loan Amount
$2000 to $35000
Min. Credit Score
550
Pros and cons
Borrowers with bad credit considered
Funds as soon as the next business day
1-year loan terms available on Avant's website
No discounts offered
Origination fee
Not available in HI, IA, MA, ME, NY, VT, or WV
More details
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Discounts
None
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
Best for large personal loans
BHG Money
4
Credible Rating
Check Rates
on Credible’s website
Est. APR
-
Loan Amount
$20000 to $200000
Min. Credit Score
660
Pros and cons
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
Cosigners allowed
Not available in MD or IL
No discounts
Minimum income required of $100,000 annually
More details
Overview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees
Discounts
None
Eligibility
Available in all states except Maryland and Illinois
Min. income
$100,000
Customer service
Email, phone
Soft credit check
Not on lender's site
Time to get funds
In as few as 5 days
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Best debt consolidation loans for bad credit
Universal Credit
4.3
Credible Rating
Check Rates
on Credible’s website
Est. APR
11.69 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
560
Pros and cons
Borrowers with bad credit considered
No minimum income requirement
Autopay and direct pay discounts available
Can fund in one business day
High APRs
Potentially high origination fees
Not available in Iowa
More details
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Best bad credit personal loans
OneMain Financial
3.9
Credible Rating
Check Rates
on Credible’s website
Est. APR
18.00 - 35.99%
Loan Amount
$1500 to $20000
Min. Credit Score
540
Pros and cons
Borrowers with poor credit may be eligible
Secured loans available
Allows cosigners
Can fund as soon as one business day after approval
High minimum APR
Process not 100% digital
Not available in AK, AR, CT, DC, MA, RI or VT
High maximum origination fee
More details
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
What is a personal loan?
A personal loan is an installment loan that allows you to borrow money for various purposes. Unlike funds from a mortgage or auto loan, which must be used to pay for your house or car, respectively, a personal loan can be used to finance a home renovation project, consolidate high-interest debts, or for almost any other reason.
Personal loans are typically unsecured, meaning you don’t have to secure the loan with collateral. But if you find a lender that offers secured loans, you may be able to get a lower rate. Repayment terms on personal loans typically range from two years to seven years, or more. Average personal loan rates start below 10%, but can run up to around 36% if you have bad credit. You also may be charged an origination fee upfront, which reduces the amount you receive.
Compare Rates Now
How to get a personal loan with bad credit
If you’re ready to apply for a personal loan, follow these steps:
- Check your credit: Many lenders have minimum credit score requirements, so check your credit first to see where you stand and which lenders are options. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find errors, dispute them with the appropriate credit bureaus to potentially boost your score.
- Know what you need: Determine how much you need to borrow and what monthly payment you can afford. Then, look for lenders that offer the loan amount you need and require a minimum credit score below yours. If that doesn’t turn up much, look for lenders that allow cosigners — and find a cosigner who’s willing to vouch for you on a loan.
- Prequalify with lenders: Once you’ve narrowed down a list, prequalify with those lenders to get an estimate of the annual percentage rates (APRs) and loan amounts you might qualify for, as well as whether you’ll qualify for a personal loan at all. Prequalification won’t impact your credit, but formally applying for a personal loan could lower your credit score — usually by no more than 5 points for up to a year.
- Compare lenders: Along with credit requirements, consider APRs, repayment terms, and fees charged by the lender. After you’ve compared personal loans, choose the option you like best.
- Complete the application: Once you’ve picked a lender, you’ll need to fill out an application and submit required documentation, such as tax returns and pay stubs.
- Review the loan agreement: If approved, review the loan agreement and sign if the terms are acceptable — check the APR, fees, and repayment period, and when the first payment is due.
- Await your funds: Some lenders offer same-day funding after loan approval, but it’s more likely that your loan will be funded the next business day after or within a few business days of your loan approval.
Tip
If you’re still struggling to qualify, consider a credit-builder loan, which is easier to qualify for and can improve your credit score so you can later apply (and ideally be approved) for a personal loan.
Learn More: APR vs. Interest Rate on a Personal Loan
How credit scores affect loan rates
Your credit score plays a major role in determining the APR you qualify for when you apply for a personal loan. In general, the lower your credit score, the higher the rate you’ll likely pay.
For example, here’s how your credit score could affect how much you’d pay on a $10,000 personal loan with a three-year term. Note that some borrowers with fair credit might pay almost $1,300 less in interest relative to borrowers with poor credit.
Average APRs are based on the personal loan interest rates borrowers received when they applied for a personal loan through Credible in September 2023.
You can estimate how much you’ll pay for a loan using a personal loan calculator.
Compare Rates Now
Pros and cons of bad-credit loans
As with any financial product, consider the benefits and downsides of personal loans for bad credit before you apply.
Pros
- Flexible financing: You can use personal loan funds for virtually any purpose, from covering a large unexpected expense to financing a kitchen remodel.
- Fast funding: Banks and credit unions typically fund loans within 1 to 5 days. Even better, many online lenders can disburse funds as soon as the same day you apply.
- Build your credit: You can build your credit by making consistent on-time payments on a personal loan. Remember, your payment history makes up 35% of your FICO credit score.
Cons
- High APRs: Lenders typically reserve their best interest rates for borrowers with solid credit. If your score isn’t great, you may receive interest rates from lenders ranging up to 36%, depending on your credit and other factors.
- High fees: Lenders offering personal loans for borrowers with bad credit reduce their risk by charging higher fees and interest rates, which ultimately results in higher APRs. Fees may include an origination fee to process the loan and an early repayment penalty.
- May require collateral: While most personal loans are unsecured, your lender may want you to provide collateral to secure your loan. Be aware that the lender can seize your collateral if you fail to make your payments as agreed.
- Potential credit harm: Just as making your payments on time can build your credit, late or missed payments can negatively affect your credit.
How to improve your credit score
Taking steps to improve your credit score can help you qualify for a personal loan and with better rates. Here’s how:
- Consistently pay bills on time: Payment history is the most important factor in calculating your FICO credit score. Help ensure you’re never late by setting up automatic payments for recurring bills like car payments, credit cards, and personal loans. If a number of your bills are due around the same time each month, reach out to your creditors to change due dates for more breathing room.
- Pay down debt: Your credit utilization ratio makes up 30% of your FICO score. Credit utilization is the percentage of your available revolving credit you’re currently using. Lenders consider borrowers with high credit utilization ratios high-risk. As such, paying down your debt can positively impact your credit and your ability to qualify for a personal loan.
- Don’t close credit card accounts: Closing old credit card accounts with a zero balance may seem like a good idea, but it can drastically increase your credit utilization ratio, which can hurt your credit. Keeping accounts open once you’ve paid off balances can be a good way to keep your credit utilization ratio low and improve your score.
- Avoid hard inquiries: A hard inquiry is when a lender pulls your credit for a loan or other financial product application. The inquiry will appear on your credit report and could cause your score to temporarily dip. A lender may see you as a risk if you seek to borrow money multiple times from different sources. Applications for new credit make up 10% of your credit score.
Alternatives to personal loans
Personal loans come with many advantages, but they’re not for everyone. Consider these alternatives, especially if you have bad credit:
- Borrow from friends or family: No matter the terms, put your agreement in writing, including the loan amount, interest or collateral, repayment period, and due dates.
- Use a credit card: If you have available credit on a card, consider using it instead of a personal loan. The interest rate on your card may not be as high as what you’d get with a bad-credit personal loan. Prequalify with a few personal loan lenders to see how the rate on your card compares.
- Consider a debt management plan: If you’re drowning in debt, seek help from a nonprofit credit counseling agency. A certified credit counselor can help you create a debt management plan that could lower your interest rates and help you pay debt off sooner.
- Use a fee-free cash advance app: If you need a small amount of cash, consider a cash advance app without fees. Just remember that while some apps don’t have mandatory fees, most charge a fast-funding fee, which can make these loans very expensive.
Related: Personal Loan vs. 0% APR Credit Card
Dori Zinn has contributed to the reporting of this article
Related Articles:
- Types of Bad-Credit Loans
- Best Hardship Loans for Bad Credit
- Best Installment Loans for Bad Credit
- 500 Credit Score Loan
- No-Credit-Check Loans
- No-Credit-History Loans
- Low-Income Personal Loans
Meet the expert:
Tim Maxwell
Tim Maxwell is a financial writer with over two decades of experience. Tim’s work has appeared in USA Today, Washington Post, Bankrate, LendingTree, Fox Business, Credible and more. He also publishes Incomist, a personal finance site that focuses on paying off debt by earning extra income in creative ways.