Best Personal Loans for Bad Credit: How To Compare Offers
You can qualify for a personal loan with bad credit: Lenders such as Avant, OneMain Financial and Upstart may consider borrowers with lower credit scores. Approval depends on factors such as income, credit history and existing debt.
Bad-credit personal loans can come with higher borrowing costs: Annual percentage rates (APRs) and origination fees vary widely, and some lenders charge triple-digit APRs. Compare total repayment costs and monthly payments before choosing a loan.
Prequalification can help you compare lenders without affecting your credit score: Look for lenders that offer soft credit checks, review repayment terms and consider lower-cost alternatives before accepting an offer. Prequalification doesn't guarantee final approval.
You can still qualify for a personal loan with bad credit. Some lenders, such as Happen Bank, Avant, OneMain Financial, Upstart and Prosper, may consider borrowers who have lower credit scores. The best option depends on the amount you need, the APR you qualify for and whether the monthly payment fits your budget.
Read on to compare some of the best personal loans for bad credit and find an option that fits your borrowing needs.
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.
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.
Provider | Best for | Loan amount | APR range |
|---|---|---|---|
Happen Bank — formerly known as LendingClub | Borrowers who want a co-borrower option and higher loan amounts | $1,000 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 have explored other options and need a smaller emergency loan | Up to $10,000 | 34.99% to 99.99% |
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 | 6.10% 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% |
Keep in mind that some lenders on this list charge significantly higher APRs than others. NetCredit, for example, may offer loans to borrowers with limited options, but their high borrowing costs make it especially important to compare lower-cost alternatives first.
If you’re shopping specifically to combine high-interest balances, compare these offers against debt consolidation loans for bad credit.
Happen Bank: Best for Joint Applications
Happen Bank 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: Best for Fast Application Decisions
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: Best for Secured Loan Options
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: Best for Comparing Multiple Lenders
PersonalLoans.com is a loan marketplace, not a direct lender. Its platform connects borrowers with potential lenders based on their borrowing needs and financial information, allowing them to compare available offers.
Standout feature: Marketplace that matches borrowers with different lenders
Loan amount: $250 to $35,000
Origination fee: Varies by lender
NetCredit: Best for Smaller Loan Amounts
NetCredit doesn't just offer personal loans for poor credit. It also provides financial education tools to help borrowers better manage their finances.
However, with advertised APRs reaching 99.99%, NetCredit can be an expensive borrowing option. Compare lower-cost loans and alternatives before applying.
Standout feature: Offers small loan amounts
Loan amount: Up to $10,000
Origination fee: Not disclosed on website
LendingPoint: Best for Flexible Repayment Options
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: Best for Limited Credit History
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: Best for Joint Borrowers
Prosper offers APRs as low as 8.99%, fast 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%
Which Lender Best Fits Your Needs?
The right lender depends on what matters most to you, whether that's funding speed, loan amount or ability to apply with someone else. Here's a quick way to narrow your options.
Choose Happen Bank: If you want to apply with a co-borrower and need access to a larger loan amount.
Choose Avant: If getting a fast application decision is a priority.
Choose OneMain Financial: If you want the option to secure your loan with collateral.
Choose PersonalLoans.com: If you want to compare potential offers from multiple lenders through one marketplace.
Choose NetCredit: If you need a smaller loan and have compared its high APRs with lower-cost alternatives.
Choose LendingPoint: If you value repayment flexibility, including options for biweekly payments.
Choose Upstart: If you have a limited credit history and want a lender that considers factors beyond credit scores.
Choose Prosper: If you want the option to apply with a joint borrower.
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 scores are widely used by lenders. 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.
What To Look For in a Bad Credit Personal Loan
Getting approved is important, but finding a loan you can afford matters just as much. Before applying, compare lenders based on their APRs, fees, repayment terms and eligibility requirements.
How To Compare Bad Credit Personal Loan Offers
You 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. A lower DTI ratio will give you 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.
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 • After the loan is paid, you receive the funds | Borrowers who want to establish or rebuild credit | Low | |
Payday loan | • Short-term loan • Full repayment is due on your next pay date | Borrowers with no other borrowing options | Very high |
Credit card 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 |
Some borrowers also consider no-credit-check loans, but these products deserve a close look because the terms can be less favorable.
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.
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?
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.
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 |
If you need to borrow for an urgent expense, review emergency loan options for bad credit and compare the full cost before applying.
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.
Sources
Consumer Financial Protection Bureau: Do personal installment loans have fees?
Consumer Financial Protection Bureau: What is a FICO score?
Consumer Financial Protection Bureau: What is the difference between a loan interest rate and the APR?
Consumer Financial Protection Bureau: What is a credit inquiry?
myFICO: What is a Credit Score?
VantageScore: The Complete Guide to Your VantageScore 4.0 Credit Score
Joel Anderson contributed to the reporting for this article.
Data is accurate as of Nov. 4, 2026, and is subject to change.
Photo Credit: Izabela Habur / Getty Images
Parts of this article were created with AI assistance. MoneyLion editors reviewed, fact-checked and edited the final version and are responsible for its accuracy.
FAQs
There's no universal minimum, but many bad-credit lenders work with lower scores, while the best rates usually go to higher-scoring borrowers.
Since the lender will run a hard credit check when you apply for a personal loan, your credit score may dip by a few points after a hard inquiry.
Rates for bad-credit borrowers often run from 20% to well over 100%, depending on the lender and loan type.
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.
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.
On this page
Disclosures
MoneyLion does not provide, own, control or guarantee third-party products or services accessible through its Marketplace (collectively, “Third-Party Products”). The Third-Party Products are owned, controlled or made available by third parties (the "Third-Party Providers"). Should you choose to purchase any Third-Party Products, the Third-Party Providers’ terms and privacy policies apply to your purchase, so you must agree to and understand those terms. The display on the MoneyLion website, app, or platform of any of a Third-Party Product or Third-Party Provider does not-in any way-imply, suggest, or constitute a recommendation by MoneyLion of that Third-Party Product or Third-Party Financial Provider. MoneyLion may receive compensation from third parties for referring you to the third party, their products or to their website.
This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, MoneyLion does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information. For more information about MoneyLion, please visit https://www.moneylion.com/terms-and-conditions/.