Best 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.

Our choice for the best overall lender for borrowers with bad credit is Upgrade. It offers a range of financial products that include personal loans. These loans are offered in amounts from $1,000 to $50,000, with repayment terms that last from 24 to 84 months.

Upgrade lets applicants check their rates without impacting their credit, and the majority of its loans are unsecured, with no collateral required. This lender also lets people apply online within minutes, then choose a repayment term and monthly payment that fits their budget. Annual percentage rates (APRs) for personal loans from Upgrade range from 7.46% to 35.97% at the time of publishing. Origination fees fall between 1.85% to 8% of the loan amount.

Read our Upgrade profile for more information on this lender.

Borrowers needing a personal loan with flexible repayment terms and low fees might want to consider LendingPoint. LendingPoint offers loans ranging from $2,000 to $36,500, and applicants can check their rates online without affecting their credit. From there, they can see if they qualify and how much they can borrow. Borrowers also get the option to choose their repayment terms (anywhere from 24 to 72 months) and monthly payments before receiving loan funds as soon as the next business day.

Rates for LendingPoint loans range from 7.99% to 35.99% APR at the time of publishing. LendingPoint loans may have origination fees of up to 7% of the loan amount, but it’s also possible to have no origination fee at all. There are no prepayment fees, either.

LendingPoint doesn’t disclose a minimum credit score requirement, but it states that it’s able to serve 85% of the FICO population. LendingPoint does list a minimum income requirement of $35,000 for applicants, though, and loans are not available in West Virginia or Nevada.

Read our LendingPoint profile to learn more about this company.

If you need a small loan, Credit Direct offers personal loans starting at $1,000. Borrowers get to check their rates without hurting their credit, and funding can be sent within 24 hours of signing loan documents. Repayment terms can last from 12 to 60 months, with rates from 4.99% to 29.99% APR, and these loans don't come with any administration fees.

Credit Direct allows co-signers and joint applicants on its loans, and all its loan options are unsecured. While this company offers some of the best bad credit loans available today, they are only available in 11 states at this time — Alabama, Arizona, Arkansas, California, Florida, Louisiana, Maryland, North Carolina, Oklahoma, Pennsylvania and Texas.

The minimum credit score you’ll need for a Credit Direct loan is not disclosed.

Read our Credit Direct profile for more information.

If you’re looking for quick, same-day funding, consider Rocket Loans.

Rocket Loans is the personal loan arm of Rocket Companies, which also includes Rocket Mortgage (one of the best mortgage lenders in the United States). Its personal loans are offered in amounts ranging from $2,000 to $45,000, and repayment terms can be for either 36 or 60 months. Rates can range from 8.416% (with an autopay discount) to 29.99% APR.

Borrowers should also be aware that there is an origination fee of up to 7% for each loan, and late fees and insufficient funds fees are $15 for each instance. There is no prepayment penalty, though.

Rocket Loans are available in 47 states (excluding Iowa, West Virginia and Nevada).

Avant offers several financial products, including personal loans that range from $2,000 to $35,000. Borrowers can use these funds to pay for medical bills, home projects and unexpected expenses, and loans can be funded as soon as the next business day after an application is approved.

Borrowers can check rates and compare options without affecting their credit, and rates range from 9.95% to 35.95% APR. Repayment terms can last from 12 to 60 months. Be aware that an administration fee of up to 4.75% applies to each loan, though.

Read our Avant profile to find out more about this lender and how to apply for its loans.

Borrowers should consider Upstart if they have extremely low credit scores or no credit histories at all. Its personal loans are available for $1,000 to $50,000, with rates ranging from 5.6% to 35.99% APR. Applicants can also check their rates with no effect on their credit.

Minimum loan amounts may be different depending on where you live, however. According to Upstart, these states have higher minimums: Georgia ($3,100), Hawaii ($2,100), Massachusetts ($7,000), New Mexico ($5,100) and Ohio ($6,000).

While starting rates from this lender are lower than what many competitors offer, it's worth noting that its best rates are for consumers with good or excellent credit. Also, an origination fee of up to 10% of the loan amount can apply. Late fees equal 5% of the past due amount or $15, whichever is greater, and other fees may apply, including an unsuccessful payment fee. Additionally, loan terms are limited to either 36 or 60 months.

Read our Upstart profile for more information on this lender and its personal loans.

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.

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.