A personal loan for bad credit is the same as a regular personal loan, but it gives people with credit scores under 580 more options. Most of these loans are unsecured, which means they don’t need any collateral. Some lenders may also offer secured loans, though.
You should look at more than just the credit score requirement when choosing a lender. The best ones have clear pricing, including interest rates and fees, fast funding and approval times, different ways to pay back the loan, and loans that can be used for more than one thing.
Upgrade
Upgrade is our top pick because it has a low minimum credit score requirement, a $1,000 minimum loan amount, and full disbursement in as little as one business day. These features make it easy for people with bad credit to get a loan. It is also easy to get, since loans are available to people all over the US.
Upgrade lets you borrow as little as $1,000 even if your credit score is only 550, and if you’re approved with a co-applicant, you might get a lower rate. The online application process is easy, and you can get a pre-qualification without hurting your credit.
Rocket Loans
Rocket Loans is one of the few companies that can give you money the same day you get a loan. But keep in mind that not everyone will get the money that quickly. Rocket Loans has to electronically verify your identity and bank information, and your bank has to process the deposit. It’s best to assume it could take a few business days, but if you’re lucky, you could get your loan money in record time.
Rocket Loans offers loans for consolidating debt, making home improvements, getting auto repairs, and “Other.” Other than college tuition and illegal activities, “Other” could be almost anything. Interest rates are usually low, but it’s common for people with bad credit to pay a higher rate. You have 36 or 60 months to pay off your loan, which is a bit unusual. But there is no fee if you pay it off early, so you can do that.
Rocket Loans can give you up to $45,000 as soon as the same day you apply for a loan, if you need money quickly. But how long it takes to get your money will depend on how quickly your bank and Rocket Loans can check your information.
Avant
Avant can give you a quick loan to consolidate your debts as soon as the next day after you’re approved. If your credit score has gone up since you first took on the debt, you may be able to consolidate it with Avant at a lower APR. Depending on how much you owe and your rates, this could save you hundreds of dollars over the life of the loan. It’s simple to apply online.
The terms are pretty standard, but the most you can borrow is a little low. You can borrow between $2,000 and $35,000. Each state may have different minimum loan amounts. You can choose how long you want to pay it back, from 12 to 60 months. Avant, unlike many lenders, lets qualified borrowers refinance their unsecured loans, which could mean lower APRs and longer terms for paying back the loan. You can even refinance a loan that has already been refinanced, but only once.
If you are having trouble paying off multiple debts, Avant can help by putting them all into one monthly payment.
Navy Federal
Navy Federal is our pick for best credit union because it has low-cost loans with no origination fees that can be given out quickly—for qualified borrowers, as soon as the same day. But you can only join NFCU if you are in or have been in the military, work for the Department of Defense, or are a family member of someone who does. Members get many benefits, such as lower rates, no fees, and bonuses on financial products.
Members of the military and their families can only join Navy Federal, but if you are eligible, you can take advantage of great loan terms, fast funding, and great customer service.
Lending Point
We chose LendingPoint as the best lender in this category because it has low origination fees and doesn’t charge extra fees for paying off the loan early. LendingPoint may also give out personal loans to people with credit scores as low as 580.
LendingPoint charges an average origination fee of 3.5%, which isn’t too high, and borrowers don’t have to pay any fees or penalties for paying off their loans early.
Upstart
Upstart is one of the few lenders on our list that doesn’t require a high credit score. It requires a low credit score and has a low minimum APR of 5.60%.
Still, Upstart could be a good choice for people with bad credit who need money quickly. Upstart lets you check your rate without affecting your credit score, just like many other lenders. It also has a fairly quick funding time. Borrowers can get the money from their loan as soon as the next business day.
Upstart works with people who have credit scores as low as 300. This is different from some lenders who require higher credit scores to get a personal loan.
Final Verdict
If you have bad credit, you don’t have a lot of loan options. But that doesn’t mean you have to settle for a lender who charges too much or isn’t trustworthy. Upgrade is the best overall personal lender for people with bad credit because people with lower credit scores can get approved for loans as small as $1,000 and can get the money as soon as the next day.
Upgrade is easy to get all over the country, and its current range of APRs, from 5.94% to 35.97%, is competitive. You may get a rate at the lower end of the range if you get approved with a co-applicant who has excellent credit, sign up for auto-pay, and use the money to pay off existing debt.