10 Best Loans for Borrowers with Bad Credit

Even if your credit score isn’t perfect, you don’t have to settle for risky payday loans or high-interest cards. There are many ways to borrow money with personal loan options that come at a relatively low cost — many specifically designed for people with lower scores and no credit history! This guide covers some prime possibilities so you can compare rates, amounts available, repayment times, and other criteria before deciding on the best bad credit loan option tailored precisely to what suits your needs most.

What is Considered Bad Credit?

Before we get started, it’s worth understanding what loan providers consider bad credit. Most loan companies use the FICO score range from 300 to 850 as a reference point for assessing your creditworthiness; any score under 630 is generally seen as ‘bad’ or ‘poor.’ That said, some loan offers will consider applicants with lower scores, and loan companies may use different rating systems. So it’s always important to double-check the criteria.

10 Personal Loans for Borrowers with Bad Credit

Now that we have that out of the way, let’s look at some loan options available for those with bad credit.

Happy Money:

Happy Money is an online loan company specializing in loan services to those with bad credit. Ranging from $5,000 to $40,000, this loan is designed to free you from the chains of credit card debt in 2 to 5 years. It’s flexible too! Happy Money can send you the funds or pay your creditors directly. Plus, you’ll get various payment plans to suit your needs, including options for the lowest interest, monthly payment, or shortest term. Just remember, a higher minimum credit score is necessary compared to other lenders. So, get ready to break free from debt with Happy Money!


  • No Repayment Fees
  • Loans ranging from $5,000 to $40,000
  • Can Be Used to Pay Off Credit Card Debt


Introducing SeedFi’s Borrow and Grow plan, your ticket to a financially savvy future! This brilliant initiative offers you a modest loan with minimal interest while helping you build your credit and savings. With a loan range of $500 to $4,000, you can start your journey with an immediate portion and access the saved amount upon completion of your payment plan. Bid farewell to monthly woes with convenient bi-weekly or semi-monthly payments of $40 to $160 that are tailored to match your payday schedule. Currently catered to residents of 35 states and Washington D.C., SeedFi partners with the esteemed Intuit’s Credit Karma, ensuring an even broader array of services at your fingertips.


  • Loans ranging from $300 to $4,000
  • Quick Approvals & Decision Times
  • Flexible Repayment Terms (3 to 5 Years)


Are you looking for a loan in the U.S. without a Social Security number? Look no further – Stilt has got your back! Tailored specifically for non-citizens and visa holders, Stilt offers a unique lending opportunity that doesn’t require a U.S. credit history. With just a U.S. address and bank account, you’ll be evaluated on factors like education, employment, and utility payments to get that loan you need. And don’t worry. You have two years to repay! Owned by the renowned JG Wentworth, Stilt is your supportive financial partner, making loans accessible and inclusive.


  • No SSN Required
  • Zero Repayment Penalties
  • Zero U.S. Credit History Required


Are you looking for a loan but worried about your credit score? Upstart might be the answer to your problems! This innovative platform uses artificial intelligence to help partner lenders evaluate borrowers’ creditworthiness, going beyond the typical credit check. By incorporating factors such as education and income, Upstart may approve loans even if you have a low or nonexistent credit score. As long as you meet their minimum annual income requirement of $12,000, your chances of getting a loan just got brighter!


  • Uses AI-Powered Lending
  • Loans As Low As $1,000
  • Looks at More Than Just Credit History

Universal Credit:

Universal Credit is an online loan company specializing in loan services for borrowers of all credit types. Its loan range from $3,000 to $25,000 and can be used for various purposes such as consolidating debt or paying for medical expenses. Universal Credit also offers flexible repayment options with loan terms ranging from 36 months to 84 months, so you’ll have plenty of time to get back on your feet. With loan decisions made within 24 hours and same-day funding available, Universal Credit could be the right choice when you need cash fast.


  • One Day Funding
  • Fixed Interest Rate
  • Rate Flexibility for Debt Payoff

Best Egg

Are you looking for a personal loan with fair or good credit? Best Egg has got your back! They offer a versatile loan amount from $2,000 to $50,000 (depending on your state) and provide repayment flexibility with two, three, four, or even five-year options. Say goodbye to sky-high interest rates. Best Egg’s rates can start from 7.99%, making them competitive for loans catering to bad credit. Keep in mind, though, an origination fee is charged, so the actual loan payout amount might vary.


  • Funding Within Three Days
  • Term Variety
  • Adjustable Payment Due Dates


Also known as the “people’s loan company,” Prosper is an online loan marketplace that enables borrowers to connect with individual lenders. With loan amounts ranging from $2,000 to $40,000 and loan terms between 3 and 5 years, you have more freedom in tailoring your loan to meet your needs. And if you don’t qualify for a loan? Don’t worry – there are still other financial options available. Borrowers can access free educational resources and debt management tools on their website.


  • Next-Day Funding
  • Free Debt Management Tool
  • Zero Repayment Penalties

OneMain Financial:

OneMain Financial offers personal loans to borrowers with bad, fair, or good credit scores. The minimum loan amount is $1,500, and the maximum is $25,000. The APR ranges from 18% to 35.99%, and the repayment term is 24-60 months. Borrowers must have a valid bank account and a steady source of income.


  • Zero Minimum Credit Score
  • Interest Rates Ranging From 18%-35.99%
  • Secured Loans


Avant offers personal loans to borrowers with bad or no credit scores between 600 and 700+. The minimum loan amount is $2,000, and the maximum is $35,000. The APR ranges from 9.95% to 35.99%, depending on individual qualifications and other factors such as term length and loan size requested. Repayment terms are 24-60 months, and Avant requires proof of income or assets when applying for a loan.


  • Next-Day Funding
  • Minimum Credit Score of 580
  • Unavailable in N.Y.

Types of Loans for Bad Credit:

When looking for loans specifically designed with bad credit borrowers in mind, here are the loan types to consider.

  • Unsecured Loans: These loans don’t require any collateral and typically have higher loan amounts than secured loans. This makes them a good option if you’re looking for a loan with more significant loan amounts but do not want to pledge property or assets as security.
  • Secured Loans: These loan types require some form of collateral, such as an item of value that the lender can repossess if you fail to repay your loan on time and in full. Secured loans typically have lower interest rates and may be easier to qualify for due to the guarantee of the asset held as collateral.
  • Peer-to-Peer Loans: A peer loan is a loan between two people, usually connected via an online marketplace or loan network. This type of loan has become increasingly popular in recent years due to its ability to provide borrowers with bad credit the opportunity for lower interest rates and flexible repayment terms.
  • Debt Consolidation Loans: These loans are designed to consolidate your existing debt into one loan with a single monthly payment. This can be helpful if you’re looking to pay off high-interest debts such as credit cards at lower rates or simplify the loan repayment process by consolidating multiple payments into one.
  • Payday Alternative Loans (PALs): If you’re looking for a loan option with short-term loan amounts, then payday alternative loans (PALs) might be the right loan type for you. These loan types are offered by select Credit Unions and provide borrowers with bad credit access to loan amounts of up to $2,000 – plus incredibly low-interest rates.

Possible Loan Risks

Dipping into the world of personal loans can be a risky business, so buckle up and acquaint yourself with the potential pitfalls! You’ll mainly be looking at two core concerns: cost to your wallet and impact on your credit score.

  • APR: The Annual Percentage Rate (APR) is the cost of borrowing money, and it’s essential to look closely when comparing loan offers. The APR includes both interest rates and any associated fees.
  • Late Fees: Loan companies can charge hefty fees if you miss a payment. These are often in addition to the loan’s APR, so it pays to double-check the loan details before signing on the dotted line.
  • Origination Fees: Many loan companies — even those advertising loan products for bad credit borrowers, charge an origination fee. An origination fee is a one-off cost associated with taking out the loan, and it’s set as a percentage of the loan amount.
  • Prepayment Penalties: If your loan allows for early repayment, ensure there aren’t any prepayment penalties that could increase the loan cost.

Personal loans can typically affect your credit score in these ways:

  • Credit Application: Every loan application you submit is viewed as a “hard” inquiry on your credit. Too many hard questions can negatively impact your score, so it pays to be selective when choosing loan products.
  • Payment History: Your loan repayment history and payments also appear on your credit report. If you make repayments in full and on time, then this will boost your score. If you default or pay late, this could hurt your credit rating.
  • Debt-to-Income Ratio: Your loan payments must be lower than your income, and loan companies will assess this to ensure you can afford the loan. If your loan payments are too high for your income, it could negatively affect your credit score.

Can Anyone with Bad Credit Take Out a Loan?

Although having a low credit score can sometimes limit your loan options, lenders will also review other aspects when considering applicants with bad credit. One factor is the length of time that you have had activity on your Credit Report. Typically, this must be at least three years. Additionally, they check if you can make regular payments by ensuring there’s enough room in their Debt-to-Income ratio calculations so that another debt payment will stay within a reasonable amount of time each month.

Other factors lenders will consider are education and bill payment history. They also review your employment history and the type of loan you are applying for. If lenders feel that the loan is manageable, bad credit borrowers can still be considered for a loan.

How to Get a Personal Loan with Bad Credit

If you’re looking to get a loan with bad credit, then take your time and research loan products from multiple lenders. Start by checking out loan details such as the loan amount, loan terms, repayment schedule, and loan cost. Make sure you read the loan agreement before signing.

Remember, even if you have bad credit history doesn’t mean that it has to be an obstacle preventing you from obtaining a loan. By reviewing their financial situation and researching loan offers, borrowers can find personal loans tailored specifically to their needs – no matter how low their credit score is.

The Bottom Line

Embarking on the journey to secure a personal loan with poor or no credit can seem daunting, but fear not! With a plethora of opportunities at your disposal, the key lies in conducting thorough research to find the ideal lender and product tailored to your financial needs. By comparing lenders and examining elements such as interest rates, repayment structures, and potential down payment stipulations, you can successfully navigate the alternative assessment criteria to secure a bad credit personal loan. Remember, patience and diligence are your allies in exploring the diverse options available. Wishing you the best in your financial endeavors!


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