Having bad credit doesn’t have to lock you out of getting a personal loan when you need one. Taking out a personal loan can be a good way to get out of high-interest credit card debt, fund a project, or pay for emergency bills or other pressing financial needs.
In fact, a bad-credit loan might be exactly what you need to get through a financial struggle and improve your credit score. You probably won’t qualify for a lender’s lowest rates, but many lenders still give loans to people with bad credit. Making on-time loan payments can help build up your credit, improving your financial situation for the future.
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Loans for Bad Credit Rate Summary
Here’s a quick overview of today’s personal loan rates for those with poor or fair credit.
Disclosure: The offers that appear below are from companies from whom Club Thrifty receives compensation. This may affect the order and manner in which they appear. Club Thrifty does not include or review all companies or available offers.
Our Top Picks for Bad Credit Loans
Here’s our list of top lenders for personal loans if you have bad credit.
Prosper offers personal loans to people with fair credit. Its loans are available for $2,000 to $40,000 to use for debt consolidation, home improvement projects, medical expenses, and more. Prosper has fixed-rate loans starting at 7.95% APR when you have good credit. Loan terms are for either three or five years.
Borrowers are subject to a credit check through TransUnion to evaluate eligibility. Although there is no published credit score requirement, other minimum requirements to qualify for a loan include:
- A debt‐to‐income ratio below 50%
- Income greater than $0
- No bankruptcies within the last 12 months
- Fewer than five credit inquiries within the past six months
- At least three open accounts on your credit report
There are fees associated with loans through Prosper, including an origination fee between 2.4% and 5%, as well as check processing fees, late fees, and insufficient-funds fees. You can quickly check your rates online without affecting your credit score.
Payoff personal loans are focused on paying off debt and boosting your credit score. If you have existing credit card debt, you can consolidate those high-interest balances into a Payoff loan with one monthly payment. Customers can take out loans anywhere from $5,000 to $35,000.
Loan terms are between two and five years, with fixed interest rates starting at 5.99% APR for good credit. The minimum credit score needed to qualify for a loan through Payoff is 640, which is considered fair credit.
Payoff does charge an origination fee, which is between 0% and 5% of the loan total. It doesn’t charge other common fees, though, such as late fees, application fees, or early or extra payment fees. Payoff gives you an opportunity to check rates without affecting your credit score.
Avant lets you borrow between $2,000 and $35,000 to use for a variety of reasons. It offers fast funding and options to use autopay or pay through its mobile app. Customers can easily check available rates without affecting their credit score.
Fixed loan rates start at 9.95% APR with available terms from 24 months to 60 months.
Avant charges an administration fee of up to 4.75% on all of its personal loans. Other fees include late fees and dishonored payment fees.
Factors such as credit score and income determine eligibility for a personal loan through Avant. Avant borrowers typically have a credit score between 600 and 700.
Upstart offers personal loans for amounts ranging from $1,000 to $50,000 with low rates and no prepayment penalties. Borrowers can check rates in advance on their website without affecting their credit score. Upstart offers quick funding, with 99% of approved loans funded within one business day.
Upstart personal loans are perfect for:
- Debt consolidations
- Wedding costs
- Medical bills
- Home improvement
Terms for Upstart loans are either three or five years, with rates starting at 6.27% APR. Applicants need a FICO or Vantage score of at least 620 to qualify for a personal loan. Upstart also looks at credit history, debt-to-income ratio, and any bankruptcies, among other factors in determining eligibility.
LendingClub is a peer-to-peer lending platform that pairs borrowers with investors. Personal loans are available for up to $40,000, with fixed rates starting at 10.68% APR. LendingClub offers terms of three or five years. If approved for the loan, you’ll be charged an origination fee of 2% to 6% based on your credit rating.
LendingClub looks at several factors to determine eligibility, including (but not limited to):
- Credit score
- Debt-to-income ratio
- Application information
If you don’t qualify for a LendingClub loan on your own, there’s an option to add a cosigner to help you qualify.
Applying for a loan takes just a few minutes on LendingClub’s website. You can also quickly check rates without negatively affecting your credit score.
LendingPoint is an online lender with loans available for people with bad credit. Customers can borrow between $2,000 and $25,000 for various financial needs, with rates starting at 15.49% APR for credit scores of 585 and higher. LendingPoint offers terms ranging from 24 to 48 months. Personal loans carry an origination fee of up to 6%, depending on the state of residence. LendingPoint considers several factors beyond just your credit score to determine borrower eligibility, including:
- Credit history
- Financial history
- Job history
Loan decisions often take just minutes with funding as early as the next business day. Unfortunately, LendingPoint doesn’t offer a way to prequalify for rates before applying.
7) OneMain Financial
OneMain Financial offers personal loans from $1,500 to $20,000 to use for a variety of reasons, such as:
- Debt consolidation
- Home projects
- Medical bills
Borrowers can quickly check rates through OneMain Financial’s website without negatively affecting their credit score. OneMain Financial has four term options available to fit your needs: 24, 36, 48, or 60 months. Loan rates start at 18.00% APR.
Creditworthiness is a significant factor in qualifying for a personal loan through OneMain Financial. Other determining factors include the borrower’s state of residence and the loan’s purpose. You can apply for a OneMainFinancial loan online or at one of its 1,500+ locations across 44 states.
How to Get a Loan When You Have Bad Credit
Access to loans isn’t limited to just people with perfect credit. Loans are still available if you have bad credit, too. You might not score the lowest rates, but you should still find some personal loan options available if you find yourself in need of one.
Lenders have their own sets of criteria for approving borrowers, as well as for assigning interest rates and terms. There’s no guarantee that you’ll be approved, but there are a few steps you can take before applying to see where you stand and give you the best chance of getting approved.
Check Your Credit: Before applying for a loan, do yourself a favor and get a copy of your credit report. Look over the report for any errors or discrepancies that might be negatively affecting your credit score. Understanding your credit history and credit score will give you a better idea of what lenders are looking at and factors that might keep you from qualifying for a loan, especially if there is an error you can get corrected before applying. You can get a free copy of your credit report at AnnualCreditReport.com.
Check Your Rates: Most online lenders give potential customers a chance to prequalify for a loan or at least check available rates. The process only takes a few minutes, but it provides insight as to whether you’ll qualify for a loan and what type of rate you’ll receive.
Shop Around: Just because your credit isn’t perfect doesn’t mean you should settle for the first lender that offers you a loan. Take your time, be thorough, and look at all your available options. Using a company such as Credible allows you to compare several lenders at once.