Best Personal Loans for Bad Credit: How To Compare Offers
You can still qualify for a personal loan with bad credit. Lenders such as Happen Bank, Avant, OneMain Financial, Upstart and Prosper work with borrowers who have lower credit scores. Depending on the lender, you may be able to borrow up to $75,000, with most competitive rates falling between 6% and 36%. Read on to compare some of the best personal loans for bad credit.
MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms and fees from different lenders and choose the best offer for you.
Key Takeaways
The best personal loans for bad credit come from lenders that look beyond your score. Options exist for fair and poor credit, with loan amounts ranging from a few hundred dollars up to $75,000.
Prequalifying with several lenders lets you compare rates without hurting your score. Soft credit pulls used for prequalification don't affect your credit, unlike the hard inquiry at final application.
Annual percentage rates (APRs) matter more than the interest rate alone when comparing loans. APR folds in origination fees and other mandatory charges, so it reflects your true borrowing cost.
Watch for red flags that can signal a personal loan scam. Guaranteed approval with no credit check, upfront fees before funding and pressure to act fast are warning signs.
Summary generated by AI, verified by MoneyLion editors
What Counts as Bad Credit?
What counts as bad credit depends on the scoring model a lender uses. Both FICO and VantageScore range from 300 to 850, but each has its own credit score tiers. Here's how they compare.
FICO Score Ranges
Score Range | Rating |
|---|---|
800 to 850 | Exceptional |
740 to 799 | Very Good |
670 to 739 | Good |
580 to 669 | Fair |
300 to 579 | Poor |
VantageScore Ranges
Score Range | Rating |
|---|---|
781 to 850 | Superprime |
661 to 780 | Prime |
601 to 660 | Near prime |
300 to 600 | Subprime |
Which Model Do Lenders Use
FICO score is what most lenders use. VantageScore is gaining momentum, but isn’t used by lenders as frequently.
For mortgages, personal loans, car loans and credit card applications, lenders typically use some version of the FICO score. Although some credit card issuers and other lenders also consider VantageScore, FICO remains the scoring model used most often.
Best Personal Loans for Bad Credit
The best lender for you depends on how much you need to borrow, how quickly you need the funds and whether you're applying with fair or poor credit. Compare some of the top lenders below.
Lender | Best For | Loan Amount | APR Range |
|---|---|---|---|
Happen Bank — formerly known as LendingClub | Borrowers who want a co-borrower option and higher loan amounts | Up to $75,000 | 5.96% to 35.99% |
Avant | Borrowers who need a fast lending decision | $2,000 to $35,000 | 9.95% to 35.99% |
OneMain Financial | Borrowers who want the option to secure their loan with collateral | $1,500 to $30,000 | 11.99% to 35.99% |
Personalloans.com | Borrowers who want to compare multiple lenders with one application | $250 to $35,000 | 5.99% to 35.89% |
NetCredit | Borrowers who need a smaller emergency loan | Up to $10,000 | 34.99% to 99.99% |
Rise | Borrowers who have exhausted other borrowing options | $500 to $5,000 | 60% to 299% |
LendingPoint | Borrowers who want more repayment flexibility | $1,000 to $36,500 | 7.99% to 35.99% |
Upstart | Borrowers with limited credit history seeking larger loan amounts | $1,000 to $75,000 | 6.30% to 35.99% |
Prosper | Borrowers with fair credit who want to apply with a joint borrower | $2,000 to $50,000 | 8.99% to 35.99% |
If you’re shopping specifically to combine high-interest balances, compare these offers against debt consolidation loans for bad credit.
Happen Bank
Happen Bank, formerly known as LendingClub, is an online lender where the application process takes just a few minutes.
Standout feature: Co-borrower option available
Loan amount: Up to $75,000
Origination fee: 0% to 8%
Avant
Avant offers personal loans for a variety of borrowing needs.
Standout feature: Fast application decisions
Loan amount: $2,000 to $35,000
Origination fee: Up to 9.99%
OneMain Financial
OneMain Financial considers more than just your credit score during the application process.
Standout feature: Offers secured personal loans
Loan amount: $1,500 to $30,000
Origination fee: 1% to 10%
Personalloans.com
Personalloans.com boasts that its technology can evaluate your personal loan needs and connect you with the ideal lender for your circumstances.
Standout feature: Marketplace that matches borrowers with different lenders
Loan amount: $250 to $35,000
Origination fee: Varies by lender
NetCredit
NetCredit doesn't just offer personal loans for poor credit. It provides financial education tools you can use to improve your credit and create a loan that fits your needs.
Standout feature: Offers smaller emergency loan amounts
Loan amount: Up to $10,000
Origination fee: Not disclosed on website
Rise
Rise positions itself specifically as an alternative to high-interest payday loans for people with low credit and a short-term financial crunch.
Standout feature: Payday loan alternative
Loan amount: $500 to $5,000
Origination fee: None
LendingPoint
LendingPoint offers up to $36,500 and a next-day deposit on its loans in addition to the option of breaking your monthly payments up into bimonthly payments to make them more manageable.
Standout feature: Biweekly payment options
Loan amount: $1,000 to $36,500
Origination fee: Up to 10%
Upstart
Upstart claims to look at its customers as more than just a credit score, incorporating other elements like education and experience into your final rate.
Standout feature: Considers other details beyond credit for approval
Loan amount: $1,000 to $75,000
Origination fee: Up to 12%
Prosper
Prosper offers APRs as low as 8.99%, immediate approval with funds available within a few business days and a maximum loan amount of $50,000.
Standout feature: Joint borrower applications
Loan amount: $2,000 to $50,000
Origination fee: 1% to 9.99%
How To Compare Bad Credit Personal Loan Offers
Many may focus solely on the interest rate when considering a loan, but that isn’t the only factor. Here’s a checklist of what to look for:
Origination fee: Many lenders will charge an upfront processing fee. This amount will be deducted from your loan balance.
Prepayment penalties: Check if your lender will charge you for paying off your loan early. If there is a fee, you may want to go with another lender.
APR: This is a key number that not only includes your interest but also any mandatory fees.
Soft prequalification: Find out if the lender offers a way for a soft pull on your credit.
Repayment flexibility: Make sure that the repayment plan is flexible and affordable for you.
Lender legitimacy: Verify that the lender is licensed and has a verifiable address.
What Else Lenders Look at Besides Your Score
Lenders not only look at your score, but also other factors including:
Income: Consistent and stable income can improve your chances of securing a loan.
Debt-to-income (DTI) ratio: The lender will look at your income and monthly debt payments. DTI ratios below 36% will have better approval chances.
Co-signers: Your odds for approval increase if you’ve got a co-signer who has good to excellent credit and stable income.
Collateral: A secured loan backed by collateral may make it easier to qualify. Keep in mind that the lender can take the asset if you fail to repay the loan.
Pro Tip
Adding a co-signer can improve your chances of approval if you don't qualify on your own. A co-signer with stable income and good credit may help you qualify for better loan terms. Just remember that they're equally responsible for the loan if you fail to make your payments.
How To Apply for a Bad Credit Personal Loan
Applying for a bad credit personal loan takes just a few steps. Here's how the process typically works.
Check your credit reports: It’s best to know your credit score ahead of time and also to double-check if there are errors that you need to correct.
Prequalify with multiple lenders: Prequalifying doesn’t hurt your credit and so it’s a good idea to see your estimated rates and terms with multiple lenders.
Gather your documentation: You’ll need a government ID, proof of income and address, as well as your Social Security number.
Compare your APRs: Don’t just compare your monthly payment, but also review your APR so you’re aware of your total costs.
Submit the loan application: Apply online or in person to get approval.
Review the terms before signing: Once you get approval, make sure you review the terms before signing the documentation.
How Much More Does Bad Credit Cost You?
A higher APR can add thousands of dollars to the total cost of your loan. That's why comparing APRs usually tells you more than comparing monthly payments alone.
Here's a quick example of a $10,000 loan over five years:
APR | Estimated Monthly Payment | Estimated Total Interest Paid |
|---|---|---|
10% | $212 | $2,748 |
20% | $265 | $5,879 |
30% | $323 | $9,382 |
A lower monthly payment isn't always the better deal. A loan with a longer repayment term may reduce your monthly payment while increasing the total interest you pay.
Once the total cost climbs, it’s fair to ask whether personal loans are bad for your situation or just the wrong tool at the wrong price. Compare the APR, repayment term and total borrowing cost before choosing a loan.
Types of Bad Credit Personal Loans
Not every bad credit personal loan works the same way. Compare the options below to understand how each one works and who it's best for.
Loan Type | How It Works | Best For | Risk Level |
|---|---|---|---|
Unsecured personal loan | • Approval based primarily on your credit • No collateral needed • Higher interest rates | Borrowers with limited assets who need funding | Medium |
Secured personal loan | • Collateral required • Lower interest rates | Borrowers with collateral who want better approval odds | Medium |
• Loan funds are held in a locked account • When loan is paid, you receive the funds | Borrowers who want to establish or rebuild credit | Low | |
Payday loan | • Full repayment is due on your next pay date | Borrowers with no other borrowing options | Very high |
Cash advance | • Borrow against your available credit card limit • Interest usually begins immediately | Borrowers who need short-term emergency funds | High |
Peer-to-peer (P2P) loan | • Loan funded through an online lending platform • Approval may consider more than your credit score | Borrowers with stable income who don't qualify through traditional banks | Medium |
Co-signed personal loan | • A co-signer shares responsibility for the loan • May improve your approval odds | Borrowers with limited credit who have a qualified co-signer | Medium |
Watch Out for These Red Flags
Not every loan offer is a good one. Watch for these warning signs before you borrow.
You receive guaranteed approval without a credit check.
You pay upfront fees without receiving funds.
There is no verifiable address information.
There is pressure to act immediately.
There are missing loan terms.
Alternatives If You Can't Qualify for a Bad Credit Personal Loan
Before getting a bad credit personal loan, consider whether one of these alternatives better fits your borrowing needs.
Option | How It Works | Best For |
|---|---|---|
Credit union loans | Member-owned institutions that typically offer lower rates and more flexible underwriting than banks | Borrowers with fair or poor credit who qualify for membership |
0% intro APR credit card | Eligible purchases or balance transfers carry no interest during the promotional period | Borrowers who can repay the balance before the promotional rate ends |
Buy now, pay later (BNPL) | Splits a purchase into installments, often with no interest for short terms | Borrowers financing a specific purchase |
Borrowing from family or friends | You request money from friends and family | Borrowers with a trusted friend or family member |
Nonprofit credit counseling or debt management plan (DMP) | A certified counselor negotiates with creditors to consolidate debt payments into one monthly plan | Borrowers managing multiple high-interest debts |
Employer paycheck advance | Employers may allow you to access earned wages through HR or a third-party app | Borrowers facing a short-term cash shortage |
Local assistance programs | Government agencies, charities and nonprofits may help cover essential expenses such as rent, utilities or medical bills | Borrowers facing a specific financial hardship |
Next Steps
As you navigate the next steps to get your personal loan, here’s what you want to keep in mind:
Pull your credit report first: Find and correct errors before applying.
Try to prequalify with at least three lenders: You want to compare your rate with multiple lenders to have a good idea of where you’ll get the lowest rate.
Calculate your cost: Consider the origination fee and the APR to calculate the total cost.
Review the full agreement: Read all the fine print before signing the loan.
Bad-Credit Personal Loan FAQs
Still sorting out how you can borrow when your credit needs some work? Here are answers to the questions people ask most before they apply.
What credit score do I need to get a personal loan?
There's no universal minimum, but many bad-credit lenders work with lower scores, while the best rates usually go to higher-scoring borrowers.
Does applying for a personal loan hurt my credit score?
Since the lender will run a hard credit check when you apply for a personal loan, your credit score may dip between 10 and 20 points.
What's a good APR for a bad credit personal loan?
Rates for bad-credit borrowers often run from 20% to well over 100%, depending on the lender and loan type.
Can I get a personal loan with a 500 credit score?
You may be able to get a personal loan with a 500 credit score, but the options are limited. You might consider a bad credit specialty lender or a credit union to secure a loan.
What's the difference between a secured and unsecured personal loan?
A secured loan requires collateral in case you default. You’ll likely get a lower interest rate.
An unsecured loan doesn’t require collateral but you’ll likely pay a higher interest rate.
If you’re still sorting out borrowing basics, it may also help to compare installment loans vs. revolving credit.
How do I know if I'm being scammed by a fake lender?
Some red flags include requiring upfront fees before receiving funds, no verifiable address information, approval without a credit check and the pressure to act immediately.
Can I get a loan with no credit check?
You can get a no credit check loan. Title loans and payday loans are examples of no credit check loans. Beware of high APYs and stricter terms with a no credit check loan.
Should I use a personal loan to buy a computer?
Usually only if you’ve run out of cheaper options. If you’re comparing purchase-specific financing, it may help to look at a computer loan before taking on a broader personal loan.
Key Terms
APR: The yearly cost of a loan including interest plus mandatory fees, which makes it the best single number for comparing offers.
Origination fee: An upfront charge some lenders deduct from your loan proceeds to process the loan.
Hard inquiry: A lender's credit check when you formally apply, which can temporarily lower your score.
Soft inquiry: A credit check used for prequalification or prescreening that doesn't affect your score.
Prequalification: A lender's early estimate of the rate and terms you may receive, usually based on a soft pull that doesn't hurt your credit.
Secured personal loan: A loan backed by collateral such as a car or savings, which can improve approval odds but puts the asset at risk if you default.
Credit-builder loan: A loan whose funds are held in a locked account and released after you finish paying, helping you establish or rebuild credit.
Summary generated by AI, verified by MoneyLion editors
Sources
Consumer Financial Protection Bureau. 2024. "Do personal installment loans have fees?"
Consumer Financial Protection Bureau. 2025. "What is a FICO score?"
Consumer Financial Protection Bureau. 2024. "What is the difference between a loan interest rate and the APR?"
Consumer Financial Protection Bureau. 2025. "What is a credit inquiry?"
myFICO. "What is a Credit Score?"
VantageScore. 2025. "The Complete Guide to Your VantageScore 4.0 Credit Score."
Joel Anderson contributed to the reporting for this article.
Data is accurate as of Aug. 5, 2026, and is subject to change.
Photo Credit: Izabela Habur / Getty Images
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