Best personal loans for bad credit in April 2024
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BLUEPRINT
Updated 1:58 p.m. UTC April 8, 2024
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A personal loan can help you cover a variety of expenses. However, it can be hard to qualify for a loan if you have bad credit. Thankfully, there are several lenders that offer personal loans for borrowers with low credit scores or thin credit histories.
In 2024, the best personal loans for bad credit provide more lenient credit score requirements, relatively competitive interest rates, a variety of loan amounts and reasonably long repayment terms. Some of the top lenders also allow borrowers to apply with a co-signer or co-borrower, which could make it easier to get approved.
Best bad credit loans
- Upgrade: Best overall.
- LendingPoint: Best for long repayment terms.
- Prosper: Best for peer-to-peer lending.
- LendingClub: Best for co-borrowers.
- Oportun: Best for small loans.
- Upstart: Best for thin credit.
- Avant: Best for fast funding.
Why trust our personal loan experts
Our team of experts evaluated hundreds of personal loan products and analyzed thousands of data points to help you find the best fit for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 22 personal loan lenders reviewed.
- 308 data points analyzed.
- 6-stage fact-checking process.
What you should know
If you have poor credit, it can be difficult to get approved for a personal loan. But with Upgrade, you could get approved for a loan ranging from $1,000 to $50,000 with a credit score as low as 580. And if you’re approved, you could get your funds within a day of clearing any necessary verifications. Repayment terms range from two to seven years.
Keep in mind that Upgrade charges an origination fee as well as fees for late and returned payments, which can increase your overall loan cost. However, you might be able to reduce your interest rate on an Upgrade loan if you sign up for autopay and use a portion of your loan proceeds to pay off debt you already have.
Pros
- Can borrow up to $50,000.
- Fast funding.
- Autopay and debt consolidation rate discounts.
Cons
- Charges an origination fee.
- Charges fees for late and returned payments.
- Doesn’t disclose information about rate discounts unless you have a registered account.
More details
- Interest rates: 8.49% to 35.99%.
- Loan amounts: $1,000 to $50,000.
- Repayment terms: 2 to 7 years.
- Discounts: Autopay and debt consolidation (amounts not disclosed).
- Fees: Origination fee (1.85% to 8.99%), late fee ($10) and returned payment fee ($10).
- Min. credit score: 580.
- Can apply with a co-signer: No (but can apply with a joint applicant).
What you should know
If you need more time to pay off your loan, LendingPoint has you covered. Borrowers with a minimum credit score of at least 600 could qualify for a loan ranging from $2,000 to $36,500 with repayment terms from two to seven years. Just keep in mind that while choosing a longer term can get you a lower monthly payment, it also means you’ll pay more in interest over time.
After applying for a LendingPoint loan, you should receive an initial decision within seconds, and you could get your funds as soon as the next business day after final approval.
Note that while LendingPoint doesn’t charge late fees, there is an origination fee of up to 8% of your loan amount. Additionally, this lender doesn’t allow co-signers or joint applicants, which means you’ll have to qualify on your own. And while LendingPoint offers the option to sign up for automatic payments, it doesn’t disclose whether you could receive a rate discount for doing so.
Pros
- Repayment terms up to 7 years.
- Free credit score tracking through mobile app.
- Fast funding.
Cons
- Charges an origination fee.
- Doesn’t allow co-signers or joint applicants.
- Doesn’t disclose information about rate discounts unless you have a registered account.
More details
- Interest rates: 7.99% to 35.99%.
- Loan amounts: $2,000 to $36,500.
- Repayment terms: 2 to 7 years.
- Discounts: Does not disclose.
- Fees: Origination fee (0% to 8%).
- Min. credit score: 590.
- Can apply with a co-signer: No.
What you should know
Unlike most of the lenders on this list, Prosper is a peer-to-peer (P2P) lender. This means that instead of borrowing from a financial institution, you’ll work directly with a private investor (or group of investors) who will fund your loan. Because this cuts out the middleman, it can be easier to qualify for a P2P loan compared to a loan from a traditional lender.
With Prosper, you can borrow $2,000 to $50,000 with terms from two to five years, and you could get approved with a credit score as low as 600. Prosper also accepts joint applications, which can further increase your chances of qualifying. If you’re approved, you could get your funds as soon as the next business day.
Keep in mind that this lender charges an origination fee as well as fees for check payments, late payments and insufficient funds — all of which can increase your overall borrowing costs. Personal loans from Prosper also aren’t available in Iowa and West Virginia.
Pros
- Offers P2P loans.
- Fast funding.
- Permits joint applications.
Cons
- Charges an origination fee.
- Charges fees for check payments, late payments and insufficient funds.
- Not available in all states.
More details
- Interest rates: 8.99% to 35.99%.
- Loan amounts: $2,000 to $50,000.
- Repayment terms: 2 to 5 years.
- Fees: Origination fee (1% to 7.99%), check payment fee ($5 or 5% of your payment, whichever is less), late fee ($15 or 5% of the unpaid amount, whichever is greater) and insufficient funds fee ($15).
- Min. credit score: 600.
- Can apply with a co-signer: No (but can apply with a joint applicant).
What you should know
LendingClub allows borrowers to apply for a personal loan with a co-borrower, which could make it a good option if you’re struggling to get approved on your own. Even if you don’t need a joint applicant to qualify, having one could get you a lower interest rate or higher loan amount than you’d get alone. Just keep in mind that unlike a co-signer who is responsible for a loan if the primary borrower doesn’t keep up with the payments, a co-borrower will be equally liable for the loan as soon as it’s finalized.
With LendingClub, you can borrow $1,000 to $40,000 with terms from three to five years. Unlike most lenders, LendingClub has no specific minimum credit score requirement, which could make it even easier to get approved. However, the lender does charge origination fees and late payment fees. Funding might also take longer compared to some lenders.
Pros
- Accepts joint applications.
- No specific minimum credit score requirement.
- Can borrow as little as $1,000.
Cons
- Charges an origination fee and late fees.
- Limited repayment term options.
- Funding can take longer compared to some lenders.
More details
- Interest rates: 8.98% to 35.99%.
- Loan amounts: $1,000 to $40,000.
- Loan terms: 3 to 5 years.
- Discounts: None.
- Fees: Origination fee (3% to 8%), late fee (5% of outstanding payment amount or $15, whichever is greater) and insufficient funds fee ($15).
- Min. credit score: No minimum.
- Can apply with a co-signer: No (but can apply with a joint applicant).
What you should know
If you’re only looking to borrow a small amount, Oportun — the only lender designated as a Community Development Financial Institution on this list — might be a good option. You can borrow as little as $300 up to $8,000 with an unsecured loan (actual amounts could vary depending on your state). This is much lower than many competitors, meaning you can borrow only what you need without paying more interest than necessary. Repayment terms and fees will depend on your location. Oportun also has no specific minimum credit score requirement.
Additionally, if you live in Arizona, California, Florida, New Jersey or Texas and own an eligible vehicle, you might be able to borrow up to $18,500 (actual amounts could vary depending on your state) if you provide your car title as collateral. However, this means you risk losing your vehicle if you can’t make your payments. Also note that Oportun loans aren’t available in Colorado, Connecticut, Maine, Maryland, Massachusetts, Nevada, New York, West Virginia or Washington, D.C.
Pros
- Can borrow as little as $300.
- Might be able to apply with a co-signer in some situations.
- No specific minimum credit score.
Cons
- Higher maximum APR compared to some lenders.
- Risk of losing your car if you don’t make payments on a secured loan.
- Charges an origination fee as well as fees for late and returned payments.
More details
- Interest rates: 34.95% to 35.99% (depending on your state and loan type).
- Loan amounts: $300 to $18,500 (depending on your state; larger loan amounts require collateral).
- Repayment terms: 1 to 4.08 years for unsecured loans or 2 to 5.33 months for secured loans (term options will depend on your location).
- Discounts: None.
- Fees: Origination fee, late fee and returned payment fee (fee amounts will depend on your location).
- Min. credit score requirements: No minimum.
- Can apply with a co-signer: Yes (in some cases).
What you should know
While Upstart has a minimum credit score requirement of 300, it also works with borrowers who don’t have enough of a credit history to generate a credit score — often referred to as thin credit. This is because the platform makes credit decisions using artificial intelligence, which also considers factors like your education and employment history.
Upstart personal loan amounts range from $1,000 to $50,000, with three- or five-year repayment terms. Note that Upstart charges an origination fee as well as fees for late and returned payments, which could increase your overall costs. This lender also doesn’t allow co-signers or joint applicants.
Pros
- Accepts thin credit and considers alternative eligibility requirements.
- Can borrow as little as $1,000.
- Fast funding.
Cons
- Limited repayment term options.
- Charges an origination fee.
- Charges late and returned payment fees.
More details
- Interest rates: 7.8% to 35.99%.
- Loan amounts: $1,000 to $50,000.
- Loan terms: 3 or 5 years.
- Discounts: None.
- Fees: Origination fee (0% to 12%), late fee (5% of past-due amount or $15, whichever is greater) and returned payment fee ($15).
- Min. credit score: 300.
- Can apply with a co-signer: No.
What you should know
With Avant, you could get your funds as soon as the next business day after approval, which could make it a great option if you need access to cash quickly. You can borrow $2,000 to $35,000 with terms from one to five years.
Note that Avant charges an origination fee as well as fees for late and dishonored payments that could drive up your loan costs. This lender also doesn’t allow co-signers or joint applicants.
Pros
- Quick approval decisions.
- Fast funding.
- No prepayment penalty.
Cons
- Charges an origination fee.
- Charges fees for late and dishonored payments.
- Doesn’t allow co-signers or joint applicants.
More details
- Interest rates: 9.95% to 35.99%.
- Loan amounts: $2,000 to $35,000.
- Loan terms: 1 to 5 years.
- Discounts: None.
- Fees: Origination fee (up to 4.75%), late fee ($25) and dishonored payment fee ($15).
- Credit score requirements: 580.
- Can apply with a co-signer: No.
Compare the best bad credit loans
| INTEREST RATES | LOAN AMOUNTS | LOAN TERMS (YEARS) | MIN. CREDIT SCORE | CAN APPLY WITH CO-SIGNER OR CO-BORROWER? | |
|---|---|---|---|---|---|
Upgrade
| 8.49% to 35.99%
| $1,000 to $50,000
| 2 to 7
| 580 | Yes
|
LendingPoint
| 7.99% to 35.99%
| $2,000 to $36,500
| 2 to 7
| 590 | No
|
Prosper
| 8.99% to 35.99%
| $2,000 to $50,000
| 2 to 5
| 600 | Yes
|
Oportun
| 34.95% to 35.99% (depending on your state and loan type)
| $300 to $18,500 (larger loans require collateral)
| 1 to 5.33 (longer terms require collateral)
| No minimum
| Yes (in some cases)
|
LendingClub
| 8.98% to 35.99%
| $1,000 to $40,000
| 3 to 5
| No minimum
| Yes
|
Upstart
| 7.8% to 35.99%
| $1,000 to $50,000
| 3 or 5
| 300 | No
|
Avant
| 9.95% to 35.99%
| $2,000 to $35,000
| 1 to 5
| 580 | No
|
All rates include discounts as applicable where noted by the lender and are accurate as of April 8, 2024.
Methodology
Our expert writers and editors have reviewed and researched multiple lenders to help you find the best bad credit loan. Out of all the lenders considered, the seven that made our list excelled in areas across the following categories (with weightings): loan details (15%), loan cost (25%), eligibility and accessibility (35%), customer service (15%) and ease of application (10%).
Within each major category, we considered several characteristics, including APR ranges, loan amounts, maximum terms, minimum credit score requirements, late fees and co-signer acceptance. We also evaluated each provider’s state availability, customer support options and customer reviews.
Why some lenders didn’t make the cut
Of the personal loan lenders that we reviewed, only a fraction made the cut. The lenders that didn’t have high enough scores to be included received lower ratings due to having higher credit score requirements. Some also scored lower based on poor customer reviews.
How to qualify for a bad credit loan
To qualify for a personal loan, lenders typically want to see that you have good to excellent credit. But many lenders, like the ones in this article, offer loans for bad credit.
Even if you qualify with a lower credit score though, your interest rate will likely be much higher. It might be more beneficial, in that case, to work on improving your credit before you apply or consider applying with a creditworthy co-signer or joint applicant who can help you secure that lower rate.
Here are the average personal loan rates offered to borrowers based on their credit scores:
| CREDIT SCORE | AVERAGE APR |
|---|---|
720-850
| 10.73% to 12.5%
|
690-719
| 13.5% to 15.5%
|
630-689
| 17.8% to 19.9%
|
300-629
| 28.5% to 32%
|
Alternatives to personal loans for bad credit
If you have bad credit, there are other options to get money outside of traditional personal loans, including payday loans, pawn shop loans and car title loans. These sorts of alternatives can be tempting because they often accept poor credit or don’t require a credit check at all.
But be careful. These types of short-term loans are often predatory in nature and can come with astronomically high rates and fees. For example, the APRs on payday loans often extend up to 400% while pawn shop loans and car title loans can go up to 240% or 300%, respectively. Plus, if you’re unable to pay off the loan within the short repayment term, you could find yourself stuck in a cycle of debt while amassing continual fees. And in the case of pawn shop loans and car title loans, you risk losing your property or vehicle if you don’t keep up with your payments.
Because of these major risks, getting a traditional personal loan with a legitimate lender that accepts bad credit is generally the safer option. If you’re struggling to get approved on your own, you might consider applying with a creditworthy co-signer to improve your chances. You could also think about getting a secured personal loan or secured credit card; while these require collateral (such as a vehicle or deposit), they can be easier to qualify for compared to a traditional loan.
Frequently asked questions (FAQs)
Generally, the easiest loan to get approved for with bad credit is a payday loan, pawn shop loan or car title loan. But because of the risks involved with these sorts of loans, it’s usually much safer to stick with the next-easiest option—a personal loan from a lender that accepts lower credit scores.
In many cases, you’ll have the best luck finding this type of loan from online lenders, as they tend to be more accessible than traditional bank loans. Some online lenders also consider alternative eligibility criteria, such as education, employment and general financial circumstances.
“Online lenders that are willing to accept bad credit history loan applications generally require a few items,” says Jeffrey Stouffer, a Certified Financial Planner. “One is an active checking account, another is regular employment that pays via direct deposit.”
Lenders might also consider bank statements and the frequency with which the applicant receives payment deposits.
You might be able to get a personal loan with a 500 credit score from some lenders. For example, Upstart accepts credit scores as low as 300 but is also willing to work with borrowers with little to no credit. You could also consider applying with a lender that accepts co-signers or joint applicants to help you qualify for a loan.
The amount you’ll be able to borrow will mainly depend on the lender. While personal loans can typically range anywhere from $300 to $100,000, borrowers with bad credit likely won’t qualify for the largest amounts. However, some lenders that accept low credit scores offer loans ranging up to $50,000.
Before applying for a loan, be sure to shop around and compare your options with as many lenders as possible to find the right loan for you. Consider not only interest rates and loan amounts but also repayment terms, fees and eligibility requirements.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
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