Compare the Best Bad Credit Loans of 2025
Best Personal Loans for Bad Credit: A Closer Look
Best for Large Loans
Upstart
Minimum Credit Score
300
APR range
6.60% to 35.99%
Loan amounts
$1,000 to $75,000
300
6.60% to 35.99%
$1,000 to $75,000
Upstart uses an underwriting approach that reviews 1,600 data points to evaluate borrower risk and set interest rates. For example, Upstart considers factors like your education level and area of study to determine loan approval, not just your credit score.
Why We Like It
We like that Upstart has an innovative application review process that can make loans available to borrowers with limited credit. Loan funding can also happen within a business day.
Why We Don’t Like It
We don’t like that the loan origination fee is up to 12%, which is high. Plus, only two loan terms are available—36 months and 60 months—so you have limited repayment schedules.
Who It’s Best For
Upstart loans are best for borrowers who want to take out a large loan but lack a positive credit history. If you shine in other areas, like having advanced education and stable employment, these factors could tip the approval scale in your favor.
- Loans up to $50,000
- No prepayment penalty
- Low income requirement
- High origination fees
- Limited repayment terms
- Co-borrowers and co-signers not permitted
Eligibility
- Minimum credit score. 300
- Minimum annual income. $12,000
- Co-borrowers/co-signers. Not permitted
Funding Speed
Funding can happen in as little as 24 hours.
*Upstart’s minimum credit score is 300, but prequalification through Credible starts at 620.
Best for Flexible Repayment Terms
Avant
Minimum Credit Score
550
APR range
9.95% to 35.99%
Loan amounts
$2,000 to $35,000
550
9.95% to 35.99%
$2,000 to $35,000
Avant’s mission is to provide borrowing opportunities for everyday people. While Avant doesn’t have physical locations, customer service has office hours throughout the week and weekend if you want to speak with a live person about loans.
Why We Like It
We like that Avant offers multiple loan term options ranging from two to five years, depending on your state.
Why We Don’t Like It
We don’t like the high loan administrative fee of up to 9.99% of your loan amount. However, if you pay off your loan in full before the maturity date, Avant may refund the portion of the fee over 5% on a prorated basis.
Who It’s Best For
Avant loans are best for borrowers who want the flexibility to choose between multiple repayment schedules since Avant may provide applicants with numerous loan offers.
- No prepayment penalty fees
- Refundable origination fee if the loan is repaid early
- Accessible customer services hours
- High origination fees
- Co-signers and co-borrowers not permitted
Eligibility:
- Minimum credit score. 550
- Minimum annual income. $14,400
- Co-borrowers/co-signers. Not permitted
Funding Speed
Funding can happen the next business day.
Best for Same-Day Funding
OppLoans
Loan amounts
$500 to $4,000
APR range
160% to 195%
Minimum Credit Score
No minimum
$500 to $4,000
160% to 195%
No minimum
OppLoans provides short-term loans to borrowers with poor or limited credit by assessing banking history and overall financial stability during the application review process. Only a soft inquiry is performed during the application, so applying won’t cause a negative credit hit.
Why We Like It
OppLoan charges no origination fee. In comparison, most other online lenders charge borrowers an origination or administrative fee. Same-day funding may also be available.
Why We Don’t Like It
The lack of origination fees doesn’t mean loans are affordable. Interest rates on loans from OppLoans can still be very high. Therefore, it’s important to consider OppLoans as a last resort only after comparing it against other loans and financing options.
Who It’s Best For
OppLoans are best for borrowers who need to borrow a small sum for an emergency and cannot qualify for loans with more competitive rates.
- No prepayment penalty fees
- No credit score minimum
- No origination fee
- High interest rates
- Co-signers and co-borrowers not permitted
Details
Eligibility
- Minimum credit score. No minimum
- Minimum income. Not disclosed.
- Co-borrowers/co-signers. Not permitted
Funding Speed
If verification is complete and you get a final approval before 12 p.m. CT., you can have funding as soon as the same day.
Most Popular is calculated from the number of times each affiliate product was selected by Forbes users over a six month time period.
How To Compare Loans for Bad Credit
What Is a Personal Loan for Bad Credit?
Bad-credit loans are loans you may qualify for with a credit score close to or below 580.
Installment loans and payday loans (sometimes called cash advances) are types of loans that can fall into the bad-credit loan category. Installment loans offer you a lump sum often deposited into your bank account, and payments are due monthly until the loan is paid off.
On the other hand, payday loans are typically due in full by your next paycheck unless you request to roll over the loan to a new term for an additional fee.
You can use bad-credit loans for many reasons, whether you need to consolidate debt, make home improvements or cover an unexpected bill.
Here are the important features of a bad credit loan:
Interest Rates and Fees
A major pitfall of bad credit loans is high interest rates. Interest rates are what lenders charge you to borrow money. Since the annual percentage rate (APR) is a rate percentage that includes extra fees, it gives you a more complete picture of how much a loan costs. Some bad credit loans can have high rates of 100% to 400% APR.
Average Interest Rates by Credit Score
In comparison, below are average loan rates for borrowers who have fair credit or better based on data from Credible. Keep in mind that rates may vary from one borrower to the next.
Amounts
Generally, installment loan amounts start at $500 to $1,000. However, payday loans and cash advances may limit loan amounts to less than $500.
Ultimately, how much you qualify for will depend on application factors, such as your income. Some lenders that offer installment loans provide loans of up to $50,000; however, the higher amounts are usually for borrowers with stronger credit profiles.
Terms
Bad-credit loans may have shorter terms. When shopping around, you might run into lenders offering terms up to 84 months, but the longest terms are usually unavailable to borrowers with bad credit.
How To Get a Loan With Bad Credit
Guaranteed Loans
Guaranteed loans are a type of bad credit loan in which approval is nearly guaranteed without a credit check, as long as you meet the application requirements.
Like other loans for bad credit, guaranteed loans tend to have higher interest rates and fees, so it’s essential to understand the total costs before committing to the loan.
How To Get a Personal Loan With Bad Credit
If you need a loan with bad credit, the steps below can help you get approved.
- Get together proof of income. The higher and more consistent your income, the greater your chances of approval. Lenders may accept multiple sources of income on the application, such as alimony or child support.
- Look for a co-signer. If you feel comfortable, ask someone you know to cosign your loan. This gives you a shot at securing a better rate, which can result in interest savings.
- Prequalify if you can. Many lenders allow you to check loan interest rates by prequalifying online with just a soft credit inquiry.
- Weigh multiple options. Since credit requirements, terms and rates vary, contact several lenders to review options before accepting the first offer.
Alternatives to Bad Credit Loans
Methodology
We reviewed 35 popular lenders based on 19 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose lenders that have a minimum credit score requirement of 580 or lower and ranked them based on the weighting assigned to each category:
- Loan cost. 32%
- Eligibility and accessibility. 21%
- Loan details. 20%
- Customer experience. 16%
- Application process. 11%
Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Personal Loans Rating & Review Methodology.
Frequently Asked Questions (FAQs)
What is the easiest type of loan to get with bad credit?
The easiest types of loans to get with bad credit are typically no-credit-check loans, including payday, title and pawnshop loans. However, these debts come with excessive fees, and we recommend avoiding them. Instead, lean into personal loans for bad credit, like those on this list. Some lenders make loans available to applicants with credit scores as low as 550.
Can you get a personal loan with a credit score of 550?
There aren’t many lenders that accept applications from borrowers with credit scores of 550. However, there are lenders who allow for a co-signer—someone who agrees to repay the loan if the primary borrower cannot—which can help you qualify for a loan with a score of 550. If you know you have damaged credit, look to improve your credit before applying for a personal loan.
Can you get a loan with no credit check?
While most loans require a credit check, there are some loans that don’t. Instead, lenders qualify applications based on the applicant’s ability to repay the loan. Lenders will likely also require collateral—a personal asset used to secure a loan and one the lender can repossess if the repayment terms are not met. You can get no-credit-check loans through payday loan stores, auto title lenders, online lenders and pawn shops.
How much money can you borrow with bad credit?
A lender typically determines your loan limit based on your creditworthiness and income. The largest limits are reserved for high-qualified borrowers. If you have bad credit, you can expect to receive near the minimum loan limit your lender offers. If you need to borrow more money, consider improving your credit score prior to applying.
Is there risk in bad credit loans?
Whenever you get a bad credit personal loan, you take on some level of risk. While most personal loans are unsecured, meaning you don’t need to provide collateral to secure the loan (and therefore avoid losing a personal asset if you fail to meet the repayment terms), you still risk damaging your credit score if you don’t keep up with your monthly payments.
How do you fix bad credit to get a better loan?
If you know you have bad credit and are preparing to apply for a loan, take time to improve your credit score. Some common ways to do that include paying off your existing debts, reducing your overall credit usage, disputing any errors on your credit report and reducing the number of new credit applications made in a short period of time.
