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If your credit falls in the bad or poor range according to FICO (a score of 350 to 579), qualifying for a personal loan without a co-signer becomes unlikely. However, while certain personal loans require credit scores of at least 670, there are a number of lenders, including those mentioned in this list, who are willing to lend money to individuals with scores between 580 and 600.
The interest rates for personal loans vary based on your credit score and the specific eligibility criteria you meet. Therefore, if your credit is damaged, you shouldn’t expect to secure the lowest rates or the most favorable terms.
In the case of bad credit, it’s generally more practical to focus on finding a provider that offers a loan suitable for your score, rather than striving for the best rates. If you have multiple options available, you can compare loan limits and interest rates to determine which one best suits your needs.
Selection Criteria for Bad Credit Loans
With each category, we examined various aspects such as loan amounts, repayment terms, APR ranges, and applicable fees. We also assessed factors like co-signer acceptance or joint applications and the lender’s geographical availability. Additionally, we considered customer support tools, borrower perks, and features that simplify the borrowing process, including prequalification and mobile apps.
TLDR: Best Loans for Bad Credit of 2023
- Upgrade – Best Overall Installment Loan For Bad Credit
- LendingPoint – Best For Below-Average Credit
- Universal Credit – Best For Comparing Multiple Offers
- Upstart – Best For Quick Approvals
- Avant – Best For Range Of Repayment Options
- LendingClub – Best For Online Experience
Best Bad Credit Loans of 2023
1. Upgrade
 | Best Overall Installment Loan |
| Minimum credit score for Upgrade: | 580 |
| APR Range: | 8.49% to 35.99% |
| Loan Amounts: | $1,000 to $50,000 |
Upgrade offers accessible online and mobile credit and banking services. It has provided over $3 billion in credit to more than 10 million applicants and continues to expand its online and mobile offerings. Despite higher maximum APRs compared to other online lenders, Upgrade caters to individuals with poor credit history by granting them access to loans ranging from $1,000 to $50,000 with flexible two- to seven-year terms. Although an origination fee of 1.85% to 9.99% applies and a $10 fee is charged for late or failed payments, Upgrade borrowers can repay their loans early without any penalties.
In addition to personal loans, Upgrade streamlines the lending process through its mobile app, allowing borrowers to manage their balance, make payments, and update personal information. The platform’s Credit Heath tool also enables borrowers to track their credit scores throughout the loan term, offering convenience and transparency.
Pros:
- Low minimum credit score requirement
- Borrowers can use loans to cover business expenses
- Offers direct lender payoff for debt consolidation loans
Cons:
- High APR range
- Charges fees for origination, late payment, and insufficient funds
2. LendingPoint
 | Best Loan For Below-Average Credit |
| Minimum credit score for LendingPoint: | 600 |
| APR Range: | 7.99% to 35.99% with autopay |
| Loan Amounts: | $2,000 to $36,500 |
LendingPoint is an Atlanta-based online lender that offers personal loans in 48 states and Washington D.C., excluding Nevada and West Virginia. Eligible applicants in these states can conveniently apply online and receive fast funding.
LendingPoint provides personal loans ranging from $2,000 to $36,500, with a minimum loan amount of $3,500 for Georgia residents. The repayment terms span from 24 to 60 months, equivalent to two to five years.
However, there are two notable drawbacks to consider with LendingPoint. Firstly, they have high maximum APRs. It’s important to maintain a high credit score to avoid these elevated rates. Secondly, LendingPoint charges origination fees ranging from 0% to 7%, depending on your state of residence.
Pros
- Quick funding
- Low credit score requirements
- No prepayment penalty
Cons
- Origination fees between 0% and 7%
- Co-signers or joint loans are not permitted
- Not available in Nevada and West Virginia
3. Universal Credit
 | Best Loan For Offer Comparisons |
| Minimum credit score for Universal Credit: | 580 |
| APR Range: | 11.69% to 35.99% |
| Loan Amounts: | $1,000 to $50,000 |
Universal Credit is an online lending platform offering personal loans from $1,000 to $50,000. Repayment terms range from 36 to 84 months. While accessible for those with damaged credit, it comes with higher APRs and an origination fee of 5.25% to 9.99% deducted from the loan proceeds.
Pros:
- Flexible qualification requirements
- Next-day funding
- No prepayment penalty
Cons
- High APRs
- All personal loans charge a 5.25% to 9.99% origination fee
4. Upstart
 | Best Loan For Quick Approvals |
| Minimum credit score for Upstart: | 600 |
| APR Range: | 4.60% to 35.99% |
| Loan Amounts: | $1,000 to $50,000 |
Upstart stands out in the personal loan market with its AI and machine learning-based borrower qualification process, approving 27% more borrowers compared to traditional models. While it offers competitive APRs, it may not be the best choice for borrowers eligible for more favorable rates. However, with a minimum credit score requirement of 600, it remains accessible for those with fair credit.
Upstart provides flexibility with loan options, starting from $1,000 to avoid unnecessary borrowing. Though its loan limit is $50,000 (lower than some lenders), it suffices for many borrowers. While its three- and five-year terms are less flexible, it compensates for individuals who may struggle to secure approval through traditional lending channels. Additionally, it operates in all states except West Virginia and Iowa, making it widely available.
Pros:
- Accessible to borrowers with fair credit
- Offers prequalification with a soft credit check
- Ability to choose a custom payment date
Cons:
- Charges an origination fee of up to 8% of the loan amount
- No secured or co-signer option
- Loans are only available for three- or five-year terms
5. Avant
 | Best Loan For Repayment Options |
| Minimum credit score for Avant: | 580 |
| APR Range: | 9.95% to 35.99% |
| Loan Amounts: | $2,000 to $35,000 |
Avant, established in 2012 and headquartered in Chicago, is a consumer lending platform that offers secured and unsecured personal loans through WebBank. Unsecured loans are available in all states except Hawaii, Iowa, New York, Vermont, West Virginia, and Maine. Avant specializes in middle-income borrowers with fair to good credit, requiring a minimum score of 580 to qualify.
While maximum loan amounts are relatively low, the accessible minimum amount and flexible repayment terms of two to five years make Avant a viable option. However, personal loans from Avant come with costs. They charge an administrative fee of up to 4.75% of the loan amount, and the APR range of 9.95% to 35.99% is on the higher side for applicants with good to excellent credit, with no autopay discount. Nonetheless, Avant is highly regarded for providing quick access to funds for borrowers with less-than-stellar credit.
It’s worth noting that Avant settled a $3.85 million case with the FTC in 2019. The lawsuit alleged improper practices, including charging unnecessary fees and collecting unauthorized payments. While the response from Avant regarding adjusted practices is unavailable, the platform holds a high Trustpilot rating of 4.7 stars.
Pros:
- Secured and unsecured loan options are available
- Low credit score requirement (580)
- Loan terms available for up to 60 months
Cons:
- Charges an upfront administrative fee
- High starting APR for prime borrowers
- Co-signers and co-applicants are not allowed
6. LendingClub
 | Best Loan For Online Experience |
| Minimum credit score for LendingClub: | 600 |
| APR Range: | 9.57% to 36% |
| Loan Amounts: | $1,000 to $40,000 |
LendingClub, founded in 2007, is the largest online peer-to-peer lender, serving over 3 million customers and funding over $55 billion in loans. It operates nationwide, excluding Iowa and U.S. territories.
While LendingClub has high APRs and no autopay discount, borrowers have the flexibility to choose loans starting from $1,000, ensuring they don’t borrow more than needed. The loan limit of $40,000 is higher than some other lenders. However, the loan terms are limited to three or five years, which is less flexible. An origination fee of 2% to 6% is charged, deducted from the loan proceeds.
LendingClub simplifies debt consolidation through balance transfer loans, enabling direct payments to over 1,700 creditors. Borrowers can specify how much of the new loan amount they want LendingClub to allocate toward each creditor, streamlining the process.
Pros:
- Will directly pay off third-party creditors as part of balance transfer loan
- Co-applicants permitted
- Available to borrowers with fair to excellent credit
Cons:
- Origination and late fees
- Limited loan term availability
- High APR range
The above personal loan rates and details are accurate as of June 1, 2023. While this information is updated regularly, the annual percentage rates (APRs) and loan details may have changed since the page was last updated. Keep in mind, some lenders make specific rates and terms available only for certain loan purposes. Be sure to confirm available APR ranges and loan details, based on your desired loan purpose, with your lender before applying.
Best Overall Option for Bad Credit Loan – Upgrade
Upgrade is considered the best overall option for bad credit loans due to its combination of key factors. With a minimum credit score requirement of 580, Upgrade opens doors to borrowers with lower credit scores. The loan amounts range from $1,000 to $50,000 and flexible repayment terms of 36 to 60 months provide borrowers with options that suit their needs.
Additionally, Upgrade offers competitive interest rates, ensuring borrowers with bad credit can access reasonable rates. The streamlined online application process makes it convenient and efficient for borrowers to apply and receive funds quickly.
Furthermore, Upgrade provides additional features like the Credit Health tool, enabling borrowers to monitor and improve their credit scores over time. These features, coupled with Upgrade’s commitment to customer support, make it the top choice for individuals seeking bad credit loans.
How to Qualify for Loans with Bad Credit
Qualifying for a loan with bad credit can be challenging, but not impossible. Here’s how you can Increase your chances of approval:
- Check your credit: Review your credit reports for errors and dispute them. Know your credit score to identify potential lenders.
- Assess urgency: If possible, wait and work on improving your credit before applying for a loan.
- Compare rates and get preapproved: Shop around and get preapproved from multiple lenders to understand loan options and costs.
- Use Collateral: Using collateral like a car or savings account can improve your approval odds, but it’s risky and needs to be approved.
- Consider credit unions: Local credit unions often offer better rates and approval prospects for individuals with bad credit.
Tips for Comparing Personal Loans for Bad Credit
When comparing personal loans for bad credit, keep these tips in mind:
- Compare the highest interest rates: With bad credit, you’re likely to receive a rate at the upper end of the range. So, when evaluating personal loans for individuals with bad credit, focus on comparing the maximum interest rate offered.
- Prequalify with providers: Many lenders offer prequalification for personal loans. By providing details such as income, loan purpose, and housing situation, you can learn about potential loan limits, rates, and repayment options. Prequalification involves a soft credit check, which doesn’t impact your credit score, allowing you to find the best rates safely.
- Check for additional fees: Some personal loan providers don’t charge origination fees, late payment fees, or prepayment penalties. However, others may impose some or all of these fees. When comparing personal loans for bad credit, examine the fee structure beyond the potential interest rate to get a comprehensive view.
- Assess the lender’s customer support options: Before finalizing a loan agreement, consider the lender’s customer support resources. While it may seem insignificant initially, good customer support can make a significant difference if you encounter payment issues or face financial hardships during the repayment period. Review the lender’s customer service options and read reviews to ensure they are a suitable choice.
Frequently Asked Questions (FAQs)
Can you get a personal loan with a credit score of 550?
While there aren’t many lenders accepting applications from borrowers with a credit score of 550, some lenders allow for a co-signer, which can help you qualify for a loan. It’s advisable to improve your credit before applying for a personal loan if you know you have damaged credit.
How much money can you borrow with bad credit?
Typically, your loan limit is determined by your creditworthiness and income. With bad credit, you can expect to receive a loan offer near the minimum limit by the lender. If you need to borrow more, consider improving your credit score beforehand.
How do you fix bad credit to get a better loan?
You should try to improve your credit score before applying for a loan and focus on paying off existing debts. By reducing overall credit usage, disputing any errors on your credit report, and avoiding multiple new credit applications in a short period, you can fix bad credit to get a better loan.
Can you get a loan with no credit check?
While most loans require a credit check, some loans qualify applicants based on their ability to repay, without conducting a credit check. However, lenders may require collateral in such cases. No-credit-check loans can be obtained through payday loan stores, auto title lenders, online lenders, and pawn shops.
Which loan company is best for bad credit?
Upgrade tops our list of best lenders for bad credit, requiring a minimum credit score of 580. Interest rates range from 7.99% to 35.97%, and borrowers with bad credit can expect rates towards the higher end.
Is there risk in bad credit loans?
Obtaining a bad credit personal loan comes with some level of risk. While most personal loans are unsecured, failure to meet repayment terms can still harm your credit score. It’s important to ensure timely monthly payments.
What is the easiest type of loan to get with bad credit?
No-credit-check loans, such as payday, title, and pawnshop loans, are often the easiest to obtain with bad credit. However, these loans come with excessive fees and are generally not recommended. Personal loans for bad credit, like those on the list, are a better option. Some lenders offer loans to applicants with credit scores as low as 550.
