1.Upgrade
4.7/5(1,034 reviews)
Customers Say
Borrowers say Upgrade's approval is fast and simple, often landing funds in their account within a day or two with little to no hassle involved.
Partner Disclosures
Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. To be offered the lowest rates, you may be required to have some of your funds sent directly to pay off existing debt(s). This rate shown includes an Autopay APR reduction of 0.5%. Autopay enrollment is optional and by enrolling, your payments will be automatically deducted from your bank account. The APR includes the yearly interest rate and a loan origination fee, which is deducted from the loan proceeds. Late payments and other fees may increase the cost of your fixed rate loan. Please refer to Upgrade's Terms of Use and Borrower Agreement for terms, conditions and requirements. Upgrade is a financial technology company, not a bank. Personal loans are issued by Upgrade's bank partners: https://www.upgrade.com/bank-partners/. † After acceptance, your funds will be sent within one (1) business day of clearing necessary verifications. Funds availability is dependent upon your bank’s transaction processing time and may take up to 2 weeks if sent directly to third party creditors.
Partner Disclosures
The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. 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. While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. There may be an option to secure your personal loan through Upstart with your vehicle, which will require a lien to be placed on the vehicle. It is important to review your promissory note for these details before accepting your loan.
Partner Disclosures
*The advertised APR is an estimate based on currently available information, is not final, and is subject to change. If approved, your actual rate will be determined and assigned based on your creditworthiness, income, application information, and other relevant factors. Applications submitted on the OppLoans platform will be originated by one of our bank partners and serviced by OppLoans. Please see the Rates and Terms for details regarding the availability of products in your state of residence. Subject to credit approval and verification. Actual approved loan amount and terms are dependent on our bank partners’ standard underwriting guidelines and credit policies. Funds may be deposited for delivery to your bank via ACH as soon as the same business day if verification is completed and final approval occurs before 12:00 PM CT on a business day. If approval occurs after 12:00 PM CT on a business day or on a non-business day, funds may be delivered as soon as the next business day. Availability of the funds is dependent on how quickly your bank processes the transaction. Installment loan amounts typically range from $500 to $5,000. Annual percentage rate (APR) ranges from 129% to 195%. Installment loan lengths range from 9 to 18 months. Example: A $2,000 installment loan repayable in 9 monthly payments with an APR of 160% would have monthly payments of $394.58. Loan amount, APR, and repayment terms may vary by state, please see https://www.opploans.com/rates-and-terms/ for additional information. Approval is not guaranteed. If approved, your actual rate will fall within the marketed range of rates, and will be determined and assigned based on your creditworthiness, income, application information, and other relevant factors. Not all applicants will qualify for the lowest available rates. This is an expensive form of credit and you should determine whether the offered product(s) meets your financial needs. OppLoans’ Bank Partners may use credit report information provided by Clarity Services and Experian as part of the application process to determine your creditworthiness. The credit inquiry will appear as a soft credit inquiry on your Experian credit report and a hard credit inquiry on your Clarity report. Therefore it will not affect your FICO credit score. OppLoans and its Bank Partners report customer payment history to the three major credit bureaus. On-time payments may improve credit score.
By:
Holly Johnson
+1 more
Edited by:
Jana Lynch
Best Bad Credit Loans
Bad credit loans are personal loans are designed for borrowers with low credit scores. They can be used for a variety of purposes, including debt consolidation, home improvements or large purchases. The best bad credit loans offer fixed interest rates, predictable monthly payments, flexible repayment terms and reasonable fees.
Be aware, however, that people with lower credit scores often do not qualify for the best loan terms, which typically means higher interest rates.
Upgrade is our top overall pick. We also cover the types of loans available for lower credit scores and how to get a loan with bad credit.
Why trust ConsumerAffairs?
- Our recommendations are based on what reviewers say.
- 4,968,218 reviews on ConsumerAffairs are verified.
- We require contact information to ensure our reviewers are real.
- We use intelligent software that helps us maintain the integrity of reviews.
- Our moderators read all reviews to verify quality and helpfulness.
Our 6 picks for the best bad credit loans
Our top picks for bad credit loans, summarized from thousands of verified customer reviews so you can compare them at a glance.
Compare Offers
2.LendingPoint
Customers Say
LendingPoint sets fixed repayment terms from 24 to 72 months with clear, upfront fees, giving fair-credit borrowers a predictable payoff timeline.
3.Credit Direct
4.7/5(81 reviews)
Customers Say
Borrowers say Credit Direct explains loan options clearly, approves small personal loans within a day and delivers funds soon afterward.
4.Rocket Loans
1.0/5(4 reviews)
Customers Say
Reviewers praise Rocket Loans for fast funding and excellent service, which stood out after slow or frustrating experiences with other lenders.
5.Avant
1.3/5(279 reviews)
Customers Say
Avant customers say the application was fast and funds arrived quickly, helping them consolidate debt without a long, complicated process.
6.Upstart
1.9/5(17 reviews)
Customers Say
Reviewers say Upstart approved them quickly after other lenders turned them down for limited credit, often offering lower rates than expected.
Customers Say summaries are AI generated by analyzing verified customer reviews over the last year.
To make our top choices, our research team evaluated 31 personal loan companies based on factors including minimum credit score required, maximum APR and repayment terms. Our picks may be Authorized Partners who compensate us. This does not affect our recommendations or evaluations.
| Company | Customer rating | Our pick for | Minimum credit score | Loan amount range | Repayment terms | Co-signers allowed | |
|---|---|---|---|---|---|---|---|
 Upgrade | Compare Offers | 4.7
1,034 reviews
1,034 reviews
| Best overall | Not disclosed | $1,000 to $50,000 | 2 to 7 years | Yes |
 LendingPoint | Learn More | No ratingView profile | Flexible loan terms | 580 | $2,000 to $36,500 | 2 to 6 years | No |
 Credit Direct | Learn More | 4.7
81 reviews
81 reviews
| Small loans | $1,000 - $47,500 | 1 to 5 years | Yes | |
 Rocket Loans | Learn More | 1.0
View profile
View profile
| Fast funding | 580 | $2,000 to $75,000 | 3 or 5 years | No |
 Avant | Learn More | 1.3
279 reviews
279 reviews
| Debt consolidation | 580 | $2,000 - $35,000 | 2 to 5 years | No |
 Upstart | Compare Offers | 1.9
17 reviews
17 reviews
| Best overall | 300 | $1,000 - $50,000 | 3 or 5 years | No |
All information accurate as of time of publication.
More details on our top choices for bad credit loans
The best bad credit loans give you a chance to borrow anywhere from $1,000 to $50,000 for any number of goals, whether you need to make a large purchase or consolidate high-interest debts.
Best overall
- Max loan amount
- $50,000
- Repayment terms
- 2 to 7 years
- Min. credit score
- Not disclosed
Disclosures
Partner Disclosures
Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. To be offered the lowest rates, you may be required to have some of your funds sent directly to pay off existing debt(s). This rate shown includes an Autopay APR reduction of 0.5%. Autopay enrollment is optional and by enrolling, your payments will be automatically deducted from your bank account. The APR includes the yearly interest rate and a loan origination fee, which is deducted from the loan proceeds. Late payments and other fees may increase the cost of your fixed rate loan. Please refer to Upgrade's Terms of Use and Borrower Agreement for terms, conditions and requirements. Upgrade is a financial technology company, not a bank. Personal loans are issued by Upgrade's bank partners: https://www.upgrade.com/bank-partners/. † After acceptance, your funds will be sent within one (1) business day of clearing necessary verifications. Funds availability is dependent upon your bank’s transaction processing time and may take up to 2 weeks if sent directly to third party creditors.
Best repayment terms and low fees
- Max loan amount
- $36,500
- Repayment terms
- 2 to 6 years
- Min. credit score
- 580
Best for small loans
- Max loan amount
- $40,000
- Repayment terms
- 1 to 5 years
- Min. credit score
- -
Best for fast funding
- Max loan amount
- $75,000
- Repayment terms
- 3 or 5 years
- Min. credit score
- 580
Best for debt consolidation
Avant
1.3
279 reviews
- Max loan amount
- $35,000
- Repayment terms
- 2 to 5 years
- Min. credit score
- 580
Best for no credit history
- Max loan amount
- $50,000
- Repayment terms
- 3 or 5 years
- Min. credit score
- 300
Disclosures
Partner Disclosures
The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. 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. While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. There may be an option to secure your personal loan through Upstart with your vehicle, which will require a lien to be placed on the vehicle. It is important to review your promissory note for these details before accepting your loan.
Bad Credit Loans Buyers Guide
Jump into our guides and start learning
In this guide
Contents
If you have bad credit, finding a loan can feel like an uphill battle. Many traditional lenders may deny your application or offer you loans with steep interest rates and unfavorable terms. Still, having bad credit doesn’t mean you’re out of options. A variety of lenders specialize in working with borrowers who have less-than-perfect credit and offer solutions tailored to their financial needs.
This guide will walk you through everything you need to know about bad credit loans. From understanding what they are and exploring the different types to evaluating pros and cons and considering safer alternatives, we’ve outlined the essentials to help you make an informed borrowing decision.
What is a bad credit loan?
A bad credit loan is a type of personal loan designed for borrowers with low credit scores or limited credit histories. These loans are typically offered by lenders who specialize in working with high-risk applicants. Because of the increased risk to the lender, bad credit loans usually come with higher interest rates and fees compared to loans offered to borrowers with good or excellent credit.
Types of bad credit loans
There are several types of bad credit loans available:
- Personal installment loans: Borrowers receive a lump sum of money and repay it over time in fixed monthly installments. Most bad credit loans are installment loans.
- Payday loans: Short-term, high-interest loans typically due by your next payday. These loans are easy to qualify for but can be extremely costly.
- Auto title loans: Secured loans that use your vehicle as collateral. If you default, the lender can repossess your car.
- Secured personal loans: These loans require collateral, such as a savings account or other asset, to back the loan and reduce the lender’s risk.
- Credit builder loans: Offered by some credit unions and financial institutions, these loans help build or rebuild credit by holding funds in a savings account until the loan is repaid.
How to get a loan with bad credit
Applying for a loan when you have bad credit may seem stressful and overwhelming, but the lenders that made our ranking have taken steps to make the application process simple. For example, every lender in our top picks gives you the option to check your rate before you apply. This typically requires you to submit basic information such as your name, address, income, employment details, and full or partial Social Security number (SSN).
From there, you can see what your rate will be if you apply and possibly look over available repayment terms and monthly payment options. Checking your rate with these companies will not result in a hard inquiry on your credit report, so you can take this step without affecting your credit score as you search for the best loan.
If you decide to move forward with a loan application, you'll have to submit a full application where you may be asked to provide other documentation. You will likely need to supply a government-issued ID, and you may also need to submit pay stubs or other proof of income as well as proof of your address.
If you're approved for a personal loan, you'll typically receive funding within a few business days, depending on the lender.
Pros and cons of bad credit loans
Pros
- Access to funds when traditional lenders may not approve your application
- Opportunity to rebuild your credit score with on-time payments
- Variety of loan types to fit different financial needs
Cons
- Higher interest rates and fees compared to standard loans
- Risk of falling into a cycle of debt if the loan isn't managed properly
- Limited borrowing amounts and stricter terms
Alternatives to bad credit loans
If you're concerned about the high costs or risks associated with bad credit loans, consider these alternatives:
- Credit union loans: Many credit unions offer more favorable terms and lower rates to members with less-than-perfect credit.
- Borrowing from family or friends: If you have a trusted relationship, borrowing from someone you know may be an option without high interest or strict terms.
- Secured credit cards: These require a refundable deposit and can help you build credit with responsible use.
- Buy now, pay later services: For smaller purchases, these installment payment services may offer lower or no interest.
- Peer-to-peer lending platforms: Some online platforms match borrowers with individual investors willing to fund loans at varying rates.
Local nonprofits and community assistance programs: Some offer short-term emergency loans or grants for those in financial distress.
FAQ
What is a bad credit score?
The range of credit scores considered “bad” depends on the credit scoring model you're using.
According to FICO, a “poor” credit score is any score below 580. However, a “poor” VantageScore falls between 500 and 600, and a “very poor” VantageScore is between 300 and 499.
Can I get a personal loan if I have bad credit?
Personal loans are available for people with bad credit, although they are often much more expensive over the long run. For example, bad credit loans can come with origination fees as high as 10% and interest rates well over 30%.
Are there small loans for bad credit?
You can find loans for $1,000 or less even if you have bad credit. These loans can be useful for paying off unexpected bills or other expenses.
Can I get a loan if I have bad credit and low income?
You can likely get a loan if you have bad credit and low income, although your choices will be limited. Having a co-signer or co-borrower may increase your odds of getting approved, especially for purchases like cars, so you might want to consider using a lender that allows for that option.
If you have bad credit and want to buy a home, it may be possible. There are programs available to consider, and some lenders work with homebuyers with bad credit.
Methodology
To make our choices for the top bad credit loans, we collected 26 individual data points for 31 popular personal loan lenders, including over 10,000 customer reviews and overall ratings from ConsumerAffairs readers submitted between 2020 and 2022. We then used this data to examine the factors that have the most impact on borrowers.
Since customer feedback is a critical indicator when evaluating companies, these were an important criteria when selecting our top picks. However, for those companies on our list with no ratings from ConsumerAffairs, there were other variables that made them stand out for borrowers with bad credit, which factored into our decisions.
- Minimum credit score: We considered any lender that offers loans to borrowers with a credit score of 580 or below.
- Loan ranges: We gave higher consideration to lenders offering a wide loan amount range and lower loan minimums ($2,000 or below).
- APR: We looked for lenders that have maximum APRs below 36%.
- Flexible repayment terms: We examined payment term ranges and noted which lenders offer repayment terms of at least 36 months (three years) or higher.
- Time to funding: We reviewed how quickly borrowers could receive their funds and considered those lenders with funding times of two days or less.
- Fees: We considered lenders that offer low origination fees, low or no late fees and no prepayment penalty.
All of our top picks offer loans to borrowers with credit scores in the “poor” range, have maximum APRs below 36%, offer a range of loan amounts and repayment terms, and fund loans within one day following approval.
Guide Sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Experian, “ What Is a Good Credit Score?” Accessed April 1, 2026.
- myFICO, “ What is a FICO® Score?” Accessed April 1, 2026.
- Oportun, “ What documentation do you need for a personal loan?” Accessed April 1, 2026.
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Read bad credit loan reviews
| Company | Customer rating | About | Learn More |
|---|---|---|---|
NetCredit
| 4.8
2,434 reviews
| Fast funding for personal loans up to $10,000. Lines of credit available up to $4,500. Rates range from 34% to 99.99%. Not available in all states. Cash advance fee and statement balance fees may apply. | Read Reviews |
|
Upgrade
| 4.7
1,034 reviews
| Loan amounts from $1,000 to $50,000, Payback terms of 24 to 84 months. APR from 7.74% APR to 35.99% APR. Origination fee can be up to 9.99%. 1% to 2% rewards on checking account purchases. 4.14% APY on savings accounts with $1,000+. | Compare Offers |
Credit Direct
| 4.7
81 reviews
| Loan amounts from $1,000 to $47,500. Select from terms between 12 and 60 months. APR is from 4.99% to 29.99%. No minimum credit score. No administration fee and no prepayment penalty. Limited availability. | Read Reviews |
Balance Credit
| 4.4
625 reviews
| Installment loans from $100 to $5,000 or credit services for loans up to $2,500. Maximum APRs vary by state. Specializes in personal loans for bad credit and programs to build or improve credit. | Read Reviews |
LoanMe
| 4.3
535 reviews
| Personal loans from $600 to $20,000. Maximum APRs vary by state. Includes a seven-day “no worry guarantee” to return any amount. No prepayment penalty. Small business loans also available. | Read Reviews |
Next Day Personal Loan
| 4.0
263 reviews
| Connects borrowers with nationwide lenders. Find personal loans from $100 to $40,000. APRs up to up to 35.99% or higher. Get funds as soon as the next business day. | Read Reviews |
Fast Access Financial
| 3.7
7 reviews
| Personal, mortgage, car title and closing costs loans. No repayment penalties. Annual percentage rates start at 9.9%. 12- to 36-month terms. Online application. Funds released in 24 to 48 hours. | Read Reviews |
MoneyMutual
| 2.7
39 reviews
| Online loan marketplace. Offers payday, installment and bad-credit loans. Easy online application takes five minutes. Free to use. Get paired with lenders that meet your criteria. | Read Reviews |
|
Upstart
| 1.9
17 reviews
| Loan amounts from $1,000 to $75,000. Select a 36- or 60-month term. Estimated rates range from 6.20% to 35.99% APR. Minimum credit score varies by lending partner. Origination fees may apply. No prepayment penalty. | Compare Offers |
Avant
| 1.3
279 reviews
| Loans from $2,000 to $35,000. Select from 12- to 60-month terms. APR ranges from 9.95% to 35.99%. Most customers have credit score of 600 to 700. No prepayment penalty. Administration fee up to 4.75%. | Read Reviews |
Republic Finance
| 1.4
118 reviews
| Secured loans up to $25,000 when you apply in branch. Get pre-qualified online. Payment protection insurance available. Operates 220 locations in eight states. Maximum APRs vary by state. | Read Reviews |
|
Rocket Loans
| 1.0
View profile
| Offers personal loans from $2,000 to $45,000, with repayment terms of 36 and 60 months. APRs range from 7.727% to 29.99% at publishing. Origination fee from 1% to 6%. Check your loan options without affecting your credit. | Read Reviews |
RISE
| 1.0
View profile
| Installment loans range from $500 to $5,000. Six- to 36-month terms. No prepayment penalty. Reports to a credit bureau. Offers financial education tools. Quick application process. Loan terms displayed by state. | Read Reviews |
|
LendingPoint
| No reviews | Loan amounts from $2,000 to $36,500. Select from terms between 24 and 60 months. APR from 9.99% to 35.99%. Flexible credit score requirements. Origination fee up to 6%. No prepayment penalty. | |
OppLoans
| 1.2
208 reviews
| Offers bad credit loans and installment loans. Payday loan APRs up to 160% to 179%. Loan amounts range from $500 to $4,000. No minimum credit score required to apply. Same-day deposit available upon approval. | Get Pricing |
Discover Personal Loans
| 1.0
42 reviews
| Offers personal loans from $2,500 to $35,000, with repayment terms of 36 to 84 months. Rates range from 6.99% to 24.99% APR at publishing. No origination fees. Check your loan options without affecting your credit. | Read Reviews |
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