Best Bad Credit Loans of January 2024

A poor credit score might not stop you from obtaining an individual loan. The lenders listed on this page offer loans to those with people with bad credit. Compare several offers before settling on the most suitable one.

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The Bad Credit Loans is accessible to those with lower credit scores (generally between 550 and 629). If this is the case are eligible, you can get personal loans from a lender who can tailor its loan offerings to low-credit customers. They typically offer the ability to apply for loans in a short time and quick financing.

The lenders listed below will consider borrowers with bad credit or weak credit histories. They can fund loans within a few hours or days of approval.

The best personal loans for people with bad credit

  • Upgrade: The best overall loan for people with bad credit.
  • Upstart: Best low-cost loan for people with thin credit.
  • Universal Credit: The best bad credit loans that include credit-building tools.
  • Avant: The most affordable credit for people with bad credit scores.
  • Best Egg: The best bad credit loan to secure loans.

Poor credit: a guide for getting personal loans even with poor credit

Upgrade Best general bad credit loan

The reason it was included on this list is that Upgrade comes with an extremely low credit score and low rates at the beginning which is an uncommon combination. These loans include credit-building tools with flexible repayment terms, as well as specific features to help with the consolidation of debt and home improvement projects.

Personal loan upgrades pros and cons cons pros

  • Discounts for multiple rates discounts.Secured as well as joint loan.
  • Mobile app for managing the payment of loans.
  • Direct payment to creditors using credit consolidation loans.
  • The terms of repayment for home improvement loans.
  • Origination fee.
  • No choice to choose the payment date for the first time.

Upgrade’s borrowing needs

Minimum credit score 560.

The minimum credit score is 1 account for 2 years.

Maximum ratio of debt to income: 75%, which includes mortgages and loans the loan you’re applying to.

A minimum annual income of none.

Upstart: Top low-risk loans for those with weak credit

The reason it was on this list is: that Upstart is renowned for its sophisticated underwriting capabilities. The lender looks beyond conventional borrower data like income and credit score and also considers other information, such as the history of work and education, to assess borrowers.

Personal loans from Upstart pros and cons pros and cons

  • Accepts new borrowers with credit.Fast financing.
  • You can change the date of payment.
  • The option to pre-qualify for the help of a soft credit test.
  • Seven-day customer service availability.
  • The company may charge an origination fee.
  • No co-signing, joint or secured loans. No co-signer, joint or secured.
  • There is no mobile app for managing the loan.
  • There are only two repayment terms available.

the requirements for Upstart’s borrowing

The minimum credit score is 300, in all states.

The minimum annual income is $12,000.

Universal Credit The best low-credit loan that builds credit tools

The reason it was on it onto the list The Universal Credit borrowers can access the credit report summary as well as a credit score simulator, and specific recommendations for those looking to improve their credit. The lender is controlled by Upgrade however, borrowers with bad credit are more likely to be approved by Universal Credit.

Universal Credit personal loan pros and cons Pros and cons

  • Direct payment to creditors using credit consolidation loans.
  • Fast funding.Offers multiple rate discounts.
  • Access to credit scores for free.
  • Charges for origination fees.
  • Borrowers have the option of choosing between two repayment terms.

Universal Credit’s borrowing requirements for Universal Credit

Minimum credit score 560.

The minimum credit score is 1 credit account and 2 years.

The maximum debt-to-income ratio is 75%, which includes the mortgage that you’re applying to.

Minimum income requirement: None.

Avant: The best bad credit loan for quick financing

What made it onto the list? Avant can approve a loan application in one business day. They typically will fund loans on the same day following approval. The lender needs an average credit score of 550, and an annual net income of $1200.

Avant personal loans pros and cons are a part of funding

  • The option to pre-qualify for the help of a soft credit test.
  • Mobile app for managing the loan.
  • Many terms for repayment.
  • Seven-day customer service availability.
  • The company may charge an origination fee.
  • No co-signer, joint, or secured loans. No joint or secured.
  • No rate discounts.

Avant’s borrowing conditions

Minimum credit score Score: at least 550.

Monthly net income minimum 1200 dollars.

“Best Egg”: The best-secured loans for bad credit

What made it onto this list is: That Best Egg takes two kinds of collateral for the secured loan: a car or fixture for your home, like cabinets, shelving and built-in cabinets or lighting for bathrooms. Loans secured through a fixture in your home are more secure than a car or a home-secured one because you will not lose your entire home or car if you do not pay back.

Best Egg personal loan pros and cons Pros and cons

  • The option to pre-qualify for an informal credit check.
  • A wide choice of loan amounts. Secured loans are available.
  • Direct payment to creditors using credit consolidation loans.
  • No late fees.
  • Origination fee.
  • No rate discounts.
  • There is no option to select the initial payment date.
  • Mobile apps are not available to manage your loan.

The best Egg borrowing conditions

  • The minimum credit score is Minimum credit score:600.
  • Minimum credit history 2 years, 1 account.
  • A minimum annual income of $3500.
  • Minimum ratio of debt to income: 40 per cent or 65%, excluding mortgage.

How can we select the best loans for people with bad credit

We looked at over a dozen different lenders who require a credit score of at least 620 or less to find the best personal loans for those with poor credit. Only those with an APR of less than 36% were considered in this list. These are other aspects we took into consideration.

  • State availability.
  • A credit score that is the average of approved borrowing.
  • The requirements for income.
  • Offers on Hardship.
  • Flexible repayment terms.
  • Secured, co-signed or joint loans.
  • The time to fund.

What are bad credit loans?

A personal loan with bad credit is suitable for those with low credit scores or weak credit history. The lenders who offer loans for bad credit may be willing to accept applicants who have excellent or good scores (690 or more) but they also have underwriting sufficient to accommodate those with lower scores as well. The loan amounts vary from $2,000 to $50,000. Annual percentage rates are set at 36 per cent.

What are the ways that personal loans for people with bad credit work?

Like all personal loans bad credit loans come with fixed rates, and are paid with fixed monthly instalments over up to seven years. They are typically not backed by collateral – they’re not secured.

Although you might be able to get personal loans with poor credit, the rate you receive is likely to be at the upper limit of the range offered by lenders and the loan amount might be lower than what you’ve requested.

How can I compare the risk of bad credit loans?

Cost and qualification requirements are the two most important aspects to take into consideration when selecting the right personal loan. Here are some suggestions to evaluate personal loans for poor credit.

1. Check the requirements for borrowing

The lenders who consider bad credit take into account several aspects of a loan application including:

  • credit score If a loan requires the minimum requirement for credit score for applicants, you’ll need this score, and ideally, an even higher score, to be eligible.
  • Debt-to-income ratio It is a proportion of your income per month which is used to pay debt. Most lenders want to know that you can pay the cost of your monthly bills, which includes any other credit card payment and also have cash left over after you have made your personal loan instalment.
  • Co-applicant and collateral When a lender provides an unsecured or co-signed loan, the applicant or item you include in your application is an important factor in determining whether you are eligible.

2. Examine the annual percentage rate.

The APR of a loan is the interest rate, plus the fees that a lender charges. Some lenders who offer bad credit online have an origination charge and they include it in their APR. The most expensive APR a reasonable bad credit loan can have is 36% according to the majority of consumer advocacy groups.

3. Calculate the monthly payment

Check your budget and find out what a feasible monthly payment could be. Use a personal loan calculator Find out the interest rate and the repayment period you’ll need for your monthly payment.

4. Compare other features of loans

If you’re offered two or more competing bad credit loan offers, check other features of the loan, such as time to fund, whether the lender offers credit-building assistance and if you’re permitted to alter the date of payment.

Personal loans for people with bad credit

A loan with bad credit can aid you in overcoming an emergency, Pay off other high-interest debt, or Fund important home repairs. However, those with low credit scores often have the highest APRs on personal loans and costs.

Consider the positives and negatives of bad credit loans and then compare them to other methods of borrowing money.

The pros of bad credit loansCons of bad credit loans
Rates tend to be excessive. Customers who have the lowest credit scores might not be able to qualify. A co-signer or collateral may be required. In some cases, predatory lenders will seek out those with bad credit.Rates are usually higher. People with the lowest credit scores might be unable to qualify.Collateral as well as a co-signer might be required. The predatory lenders might be looking for people with bad credit.


  • Quick the process of funding. Some lenders can approve loan applications in minutes however, others might take one or two days. Once the loan is approved, it can be made within the same day or in some days.
  • Fixed and predictable instalments. Unlike most credit lines and credit cards, personal loans generally come with fixed interest rates, which means you’ll pay the same monthly instalment throughout the loan’s period.
  • When you pay on time, you help build your credit. Payment history is the main factor that determines your credit score. Therefore, being punctual with your payments can give you a significant boost.
  • Rates could be lower than credit cards or other loans with high interest. Though a low credit score can result in higher personal loan rates your rate might be lower with personal loans than with certain credit cards or other loans with high interest.


  • Rates can be extremely high. Bad-credit borrowers can anticipate an annual percentage rate that is on the high portion of the range a lender can offer. Personal loan rates top out at 36% and a person who has a low credit score may be able to get a 25 percent APR or more.
  • Customers who have low credit scores might not be eligible. Minimum credit scores of lenders who accept bad credit typically range between the 550-660 mark. A score that’s in line with the minimum requirements doesn’t mean approval. Those who have scores that are below the minimum requirement will not be able to get approval.
  • A co-signer or collateral could be required. If you fail to be eligible for a personal loan application, the lending institution could suggest that you sign the co-signer, or obtain secured loans. These options can assist you in qualifying, however, in the event of late payments, you put your co-signer’s or collateral’s credit in danger.
  • Predatory lenders could target borrowers with poor credit. Predatory lenders -who employ deceitful practices to provide potentially damaging loans — might target consumers with poor credit scores who are worried that they will not be able to qualify elsewhere. (More on how to spot the signs of a scam in the following.)

What is the most reliable loan firm for people with bad credit?

A single lender is not the ideal one for all borrowers with bad credit. The most reliable bad-credit lender will offer low annual percentage rates and monthly payments that are within your budget. Certain bad-credit lenders offer special features to help you consolidate debt they offer flexible payment options or credit-building tools.

Where can I obtain a personal loan with poor credit

online: Some online lenders provide personal loans exclusively for those with poor credit. They may look at factors other than your credit history and income to determine if you are eligible but they remain the primary factors in the decision to lend.

Credit unions rely on more traditional data such as income and credit score, but take into account your history as a member. If you are a member who is in excellent standing at the Credit Union could be eligible for a private loan even with having a poor credit score.

Banking: Banks base loan decisions mostly upon your credit rating, previous history and income. Large banks are less flexible regarding qualification requirements, however maintaining a positive connection with a local bank could aid you in obtaining. Even if your credit union doesn’t offer an application process for pre-approval

Bad credit loan rates

The personal loan rate for a poor credit borrower was 22.88 In November 2023, the rate was 22.88 per cent based on aggregate information from NerdWallet’s marketplace for lending.

Here are the typical personal loan rates for every credit score range.

Rating of credit for borrowersScores rangeEstimated APR

Source Rates are calculated based on aggregated anonymous offer data from customers who were pre-qualified for NerdWallet’s lending marketplace starting in November. 1st, 2023 until November. 30 2023. Rates are only estimates and do not apply to any particular lender. The ones with the lowest credit scores generally below 500 are not likely to be eligible. This table applies only to lenders that have maximum APRs of less than 36 %.

Fees for bad credit loans

The most frequent charge for loans with bad credit is an origination charge, which ranges from 1% to 10 per cent of the loan amount. This fee is incorporated into your APR, however, lenders may decide to charge it before transferring your funds, thus reducing your amount of loan, or even adding this to the monthly payments.

A two-year loan of $10,000 that has a 20% interest rate and a five-origination charge has an annual percentage rate (APR) of 25.14 per cent. If the lender decides to take the origination charge before granting you the money, you’ll receive $9,500, while the lender will retain the $500.

They also typically charge late payment fees and fees for non-sufficient funds.

personal loans to those with people with bad credit Compare costs

LenderAPR rangeOrigination feeOther charges
Upgrade8.49% – 35.99%.1.85% to 9.99%.Fee for late fee.NSF fee.
Upstart6.40% – 35.99%.0% to 12%.late fee.The returned charge for the check.
Universal Credit11.69% – 35.99%.5.25% to 9.99%.Fee for late fee.NSF fee.
Avant9.95% – 35.99%.0% to 4.75%.Fee for late fee.NSF fee.
Best Egg8.99% – 35.99%.0.99% to 8.99%.None.

How do I obtain a personal loan with poor credit

These are the steps needed to obtain a personal loan:

1. Verify your credit score

Examine your credit report from the three main credit bureaus to make sure the information is up to the current. Correcting any errors in your report before applying could increase the chances of obtaining credit. You can get your credit reports for free at

2. Pre-qualify to assess deals

Some lenders let you pre-qualify online and preview possible loans. You are required to provide information about yourself, including your income, the desired amount of loan and the reason for borrowing and then the lender conducts an informal credit check to determine your ability to qualify. Each lender has the same requirements for borrowing and therefore it is important to be pre-qualified with several lenders.

3. Submit an application

When you’ve found the ideal lender, collect the required documents, such as evidence of employment and income along with a government-issued ID as well as bank statements. The majority of lenders offer an online application for personal loans. However, your local credit union or bank might require a personal application. The lender will investigate your credit history at the time you submit your application, which causes your score to fall temporarily. You can expect a decision in several days.

4. Incorporate the loan’s new amount into your spending plan

In time loan payments can strengthen your credit. Incorporate loan payments into your budget for the month and automate payments to avoid being late with any.

How to get the loan with bad credit

Creditors with poor credit may have to do more work to lower their interest rates or increase their chances of being approved. Here are some tips to improve the loan applications.

  • Include collateral. Some lenders offer secured personal loans that require collateral to obtain the loan at a lower interest rate than a traditional loan require. Most online lenders will take a car as collateral, whereas institutions like credit unions can accept accounts for savings or investments. If you default on payments, lenders can accept the collateral.
  • Add an applicant who is a co-applicant. Co-signed and joint personal loans allow you to add a person with a better credit score and income to your loan application to be approved, or to lower the cost. Co-signers or co-borrowers agree to pay back the loan in case you are unable to, however the co-borrower is able to access the loan’s funds, whereas co-signers don’t. The co-applicant has to make loan payments in the event that you fail to.
  • Include all your earnings. Many lenders accept the income of alimony, employment retirement, child support, and social security benefits. The ability to prove to lenders that you earn enough to pay the loan is vital to getting approval, so make certain to mention the sources you receive income from when applying.
  • Don’t request more than you really need. Asking for a smaller loan will not guarantee approval However, the greater the loan you request is, the more risky it will appear to the lender. A loan amount that you are able to repay comfortably goes an extremely long way to an institution.

Are you able to get a personal loan even if you have bad credit?

The lack of credit does not be a reason to deny you a personal loan, however you’re most likely to be charged an interest rate that is high.

Be aware that even though credit is the most important element in the determination of your eligibility and rate but this isn’t the sole thing that lenders look at when they review an application.

What is a poor credit score?

A low credit score generally between 300 and 629, though the lenders of each individual may determine bad credit in different ways. Most lenders use the credit scoring firm FICO which defines bad credit as less than 580. Some lenders utilize FICO’s competition, VantageScore, which puts “subprime” scores between 300 and 600.

The bad credit loans are designed for borrowers who have scores on the upper range of “bad” (think 560 and above). The scores with the lowest score (below 500) are not likely to be eligible.

How to improve your credit

If your credit score prevents you from getting an individual loan or obtaining the rate you’d like Here are three ways to increase your credit score quickly.

  1. Pay off credit cards or other debts. There are two advantages of paying off debt You’ll create an outstanding payment history which is responsible for 35 percent on your FICO score as well as lowering credit utilization.
  2. Request a greater amount of credit. Requesting a higher credit limit can also help to decrease the amount of credit you use. It’s usually done via the internet or over the phone and it’s an excellent idea to inquire if your limit can be increased without a credit check and, in the meantime, reduce your score by several points.
  3. You can become an authorized user on a credit card. Being an authorized user on a friend’s or relative’s credit card grants you access to the person’s payment record. This is a great option if you’re enrolled on an account with a substantial credit limit and a track record of punctual payments.

Types of bad credit loans

Type of bad credit loanSummaryWhen to use
Unsecured personal loanAn unsecured loan doesn’t require collateral. Instead, a lender determines whether you qualify based on factors like your credit score, income and cash flow.To make large purchases, debt consolidation and home improvement projects.If you get a low rate.
Secured personal loanA secured loan requires you to pledge collateral — usually a vehicle or bank account — to borrow money.The rate is lower than with an unsecured loan.Pledging collateral is worth the risk.
Co-signed personal loanA co-signed loan requires someone to vouch for your ability to repay the loan.Necessary purchases that will otherwise stretch your budget. You have a plan to make the payments.
“Buy now, pay later” is an at-checkout financing option that lets you split a purchase into smaller instalments.A joint loan is one you get with another person, meaning they share responsibility for payments and can access the funds.The rate is lower than without the co-signer. The co-signer understands the risk.
Buy now, pay laterYou get a lower rate than without a co-borrower. You and the co-borrower need equal access to the funds.A cash advance app gives you an advance of up to a few hundred dollars and withdraws repayment — plus any tips and fees — on your next payday.
Cash advance appsThe rate is lower than with an unsecured loan. Pledging collateral is worth the risk.To bridge a temporary income gap. You don’t regularly spend more than you earn. You can cover regular expenses when the advance is taken from your next paycheck.

Alternatives to personal loans for bad credit

A personal loan might not be the best choice in the event of poor credit. If you’re approved, you’re likely to pay a high APR. Take a look at these alternatives before borrowing.

Family loan

You can borrow money from a relative or friend. It can be helpful to have a plan of the terms of repayment, interest rate and the frequency of payments in mind when you apply for the loan. You and the lender will be able to formalize the terms of the family loan agreement.

Plan of payment for charges

If you’re struggling to pay the cost of utilities, rent or credit card charges you might consider applying for an extension or enrolling in the program for hardship. The credit card company mortgage lender, or the website of your utility company may offer an application online for assistance in the event of a hardship. help, however, you could be required to speak with the landlord directly.

Local Financial Assistance Programs

To help meet basic needs, you can consider the community food pantry a religious group or a non-profit. Some organizations offer clothing, food or bus tickets. This database, which is maintained by NerdWallet’s local assistance program provides options in every state.

Assistance with medical bills

Negotiators for medical bills, credit cards, or an arrangement with your service provider can aid in taking some anxiety and stress out of paying an expensive medical bill. They may also come with costs or charges which is why you must compare options for paying medical bills to determine the cheapest one.

How to spot a bad credit loan scam

The lenders listed on this page provide legitimate personal loans. There are some cautions to look into in the event you’re looking at obtaining a personal loan with people with bad credit.

  • No credit check is required or guarantee of acceptance. Reputable lenders dig into your financial records such as your credit and income, to determine if you’re able to pay back the loan. If a lender doesn’t do this could charge you astronomical rates which could lead you into the trap of debt.
  • There is no state-issued license. The Federal Trade Commission requires lenders to be registered in the states where they conduct business. A lot of lenders have states on their websites.
  • A request for a credit card. No legitimate lender will ask for an exchange of a gift card for a loan. If you’re required to give the gift card – perhaps even by somebody who claims they’re working for a well-known lender, you should beware of scams.
  • No fee disclosures. It is a requirement of the Truth in Lending Act that requires lenders to provide the APR of the loan, the total interest, and the total amount of repayment before signing a loan contract. Request to know this information before signing the agreement and then walk away when the lender doesn’t provide it.


NerdWallet’s review process reviews and rates personal loans offered by more than 35 technological firms as well as financial institutions. We gather over 50 data points for every lender and cross-check their website’s earnings reports, company websites as well as other public documents to verify the details of the product. We can also review the process of pre-qualification for lenders and contact representatives from the company. NerdWallet editors and writers conduct thorough fact-checks and updates every year. They will also update all through the year if.

Our stars provide points to lenders who offer features for consumers that are easy to use, like soft credit checks to help you qualify for competitive interest rates, no fees, transparent rates and conditions and various payment choices, quick processing times, dependable customer support, and reporting of all payments to credit bureaus, and financial education. Our ratings give fewer points to those who employ practices that could make loans difficult to pay off in time, for example, offering high annual percentage rates (above 36 per cent) and underwriting that fails to accurately assess the ability of consumers to repay, and lack of assistance with building credit. We also take into account legal actions that are filed by agencies such as that of the Consumer Financial Protection Bureau. We assess these elements according to our evaluation of which ones are the most important for consumers, and how significantly they impact the consumer experience.

NerdWallet does not earn compensation for our top ratings. Learn More about how we rate methodology for personal loans, as well as the editorial policies we follow. For a recap of our choices…

NerdWallet’s Best Bad Credit Loans of January 2024

  • Improve: Best for All bad credit loans
  • Upstart: Great for thin credit
  • Avant: Great for Quick funding
  • Universal Credit is the best for credit-building tools
  • Best Egg: Great for Secured Loans