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40 Loan features considered 10 Awarded "Best of 2022" Approximately one-third of Americans have a credit score between 300 and 669—a score that puts them into the range of poor to fair. If you’re one of the millions of people in that category, you know how difficult it can be to find a personal loan lender willing to work with you. Although many lenders offer loans only to those with good to excellent credit, there are lenders with loan options specifically for individuals with less-than-perfect credit. We reviewed leading lenders and identified the best loans for bad credit based on their loan amounts, annual percentage rates (APRs), fees, and repayment terms. Whether you need a loan for an emergency medical bill or to replace a broken appliance, these lenders can help you get the money you need fast. Best Loans for Bad Credit of January 2023If youre not seeing anything in the results that are a good fit for your needs, consider warranties from these companies:
CompanyAPRCredit Score est.Loan AmountMore DetailsBest Overall 4.3 APR With Autopay Discount 7.96% - 35.97%Recommended Minimum Credit Score 560 This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score. Loan Amount $1,000 - $50,000See Details Check RatesBest for Fast Loans4 APR With Autopay Discount 8.42% - 29.99%Recommended Minimum Credit Score Not Disclosed This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score. Loan Amount $2,000 - $45,000See Details Check RatesBest for Refinancing3.7 APR Range 9.95% - 35.95%Recommended Minimum Credit Score 550 This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score. Loan Amount $2,000 - $35,000See Details Check RatesBest for Military Members4 APR Range 7.49% - 18.00%Recommended Minimum Credit Score 600 This lender does not offer prequalification. Loan Amount $250 - $50,000See Details Check RatesBest for Very Low Credit3.7 APR Range 6.50% - 35.99%Recommended Minimum Credit Score 300 This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score. Loan Amount $1,000 - $50,000See Details Check RatesBest Loan With Co-Signer4.7 APR Range 7.74% - 17.99%Recommended Minimum Credit Score 650 This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score. Loan Amount $600 - $50,000See Details Check RatesBest Credit Union4.1 APR Range 8.99% - 18.00%Recommended Minimum Credit Score 600 This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score. Loan Amount $500 - $50,000See Details Check RatesBest for Debt Consolidation4.1 APR Range 8.99% - 35.99%Recommended Minimum Credit Score 600 This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score. Loan Amount $2,000 - $50,000See Details Check RatesBest for Secured Loans2.9 APR Range 14.99% - 35.99%Recommended Minimum Credit Score Not Disclosed This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score. Loan Amount $1,000 - $25,000See Details Check RatesFor Long Loan Terms3.6 APR Range 7.99% - 35.99%Recommended Minimum Credit Score 580 This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score. Loan Amount $2,000 - $36,500See Details Check RatesFilter (10) Best Loans for Bad Credit Expand Best Loans for Bad Credit
Best Overall : UpgradeInvestopedia's Rating 4.3
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Why We Chose It Upgrade is the top provider of personal loans for bad credit. It allows borrowers to take out as much as $50,000—higher than many other lenders—and offers loan terms as long as 84 months, far longer than other companies provide. Additionally, Upgrade allows borrowers to apply with a joint applicant which can help them get a lower rate. And for borrowers who can’t qualify for an unsecured loan, Upgrade also offers secured loans that use your vehicle title as collateral. Upgrade has a pre-qualification tool you can use to check your loan options without affecting your credit score. And if you take out a loan, you can take advantage of Upgrade’s Credit Health Tool to monitor your credit, get tips on improving your credit score, and receive fraud alerts. This feature is especially helpful if you have poor credit scores, as you work to better your credit and regain control of your finances. While securing a loan with your car or other property can improve your approval odds and help you get a lower rate, you’re at risk of losing that property if you fall behind on your payments. Qualifications
Upgrade loans aren’t available to residents of Washington, D.C. It prohibits borrowers from using loans for gambling, investing, or college expenses, including tuition or room and board. Best for Fast Loans : Rocket LoansInvestopedia's Rating 4.0
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Why We Chose It If you have an emergency expense, you don’t have time to wait for a lender to disburse the funds; you need them right away. Rocket Loans is our pick as the best lender for fast loans because it may disburse funds as soon as the same day you apply. To be eligible for same-day funding, you’ll need to complete the loan process and sign the promissory note by 1 p.m. EST on a business day. Rocket Loans will send the funds to your bank account by ACH. Take note that you may not have access to the funds immediately due to any processing delays at your bank. Rocket allows you to borrow up to $45,000, and you can have up to 60 months to repay the loan. If you sign up for automatic payments, you can qualify for an interest rate discount to help you save money. Rocket Loans can be used for a wide range of purposes, including medical bills, debt consolidation, solar panel installation, or home improvements. Qualifications
Rocket Loans does not issue loans to residents of Iowa, Nevada, or West Virginia. It doesn’t disclose its minimum credit score or income requirement, but borrowers are evaluated based on their credit history and current debt-to-income ratio. Rocket’s personal loans cannot be used to repay student loans. Read the Full Rocket Loans Personal Loans Review Best for Refinancing : AvantInvestopedia's Rating 3.7
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Why We Chose It If you have poor credit and take out a personal loan, you may be focused on improving your finances and bettering your credit score. As your score improves, you may be eligible for better rates on the personal loan. But many lenders prohibit you from refinancing an existing loan with them; Avant is one of the few that allows current borrowers to refinance their personal loans to potentially get a lower interest rate. Avant offers quick loan disbursements, and it accepts credit scores as low as 550, making it a good choice if your credit score is in the poor to fair range. Qualifications
Avant’s loans aren’t available in Hawaii, Iowa, New York, Maine or West Virginia. Read the Full Avant Personal Loans Review Best for Military Members : Navy Federal Credit UnionInvestopedia's Rating 4.0
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Why We Chose It If you are a military veteran or current servicemember and need a personal loan, Navy Federal Credit Union is hard to beat. Whether you have a small car repair or a major home renovation planned, NFCU could be a good choice: It offers loans as small as $250, but it also allows you to borrow up to $50,000. Navy Federal offers competitive rates, and its home improvement loans have repayment term options as long as 180 months—by far the longest repayment term on our list. Navy Federal Credit Union doesn’t charge application or origination fees, a rarity among lenders that work with borrowers with poor credit. Qualifications
To join Navy Federal Credit Union, you must belong to one of the following groups:
Read the Full Navy Federal Credit Union Personal Loans Review Best for Very Low Credit : UpstartInvestopedia's Rating 3.7
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Why We Chose It If you have a credit score that’s in the “poor” range—between 300 and 579—finding a loan can be hard. Finding a loan with an APR that’s not in the high double or triple digits can be even harder. That’s where Upstart comes in. It has the lowest minimum credit score of any lender on our list; its minimum required score is 300, which is the lowest possible score you can have. You can borrow up to $50,000, and, if approved, your loan funds can be disbursed in as little as one day. Qualifications
Best Loan With Co-Signer : PenFed Credit UnionInvestopedia's Rating 4.7
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Why We Chose It With many personal loan companies, there isn’t the option of adding a co-signer or co-borrower to your application; you must meet the lender’s eligibility requirements entirely on your own. For borrowers with less-than-perfect credit or insufficient income, that issue can make it difficult to get a loan. PenFed Credit Union offers personal loans ranging from $600 to $50,000. While it has a relatively high credit score requirement compared to some others on this list—its minimum is 650—it allows borrowers to apply with a co-borrower. Adding a creditworthy co-borrower to your application may help you qualify for a loan with better rates than you’d get on your own. PenFed doesn’t charge origination fees, and it’s one of the few lenders that offers unemployment and financial hardship payment plans for personal loan borrowers. Although PenFed is a credit union, its membership is open to the general public. Qualifications
Read the Full PenFed Credit Union Personal Loans Review Best Credit Union : First Tech Federal Credit UnionInvestopedia's Rating 4.1
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Why We Chose It First Tech Federal Credit Union (FCU) stands out from other lenders due to its competitive interest rates, broad range of loan amounts, and multiple repayment term options. For borrowers with bad credit, it also allows applicants to apply with co-signers to improve their odds of getting a loan. First Tech FCU doesn’t charge origination fees or application fees, so your total loan cost may be lower with the credit union than if you used another lender. As a credit union, you must be a member of First Tech FCU to get a loan. However, its membership criteria aren’t as restrictive as some, so more people can join and take advantage of its loan products. Qualifications To qualify for a loan from First Tech FCU, you must be a member of the credit union or sign up during the loan application process. To join, you must:
You must be the age of majority in your state to be eligible for a loan, and the credit union’s minimum credit score is 600. Read the Full First Tech Federal Credit Union Personal Loans Review Best for Debt Consolidation : Best EggInvestopedia's Rating 4.1
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Why We Chose It When you use a personal loan to consolidate high-interest debt, you have to be careful to use the loan for its intended purposes; otherwise, you risk adding to your overall debt. Best Egg makes it easier to pay off your debt by offering direct creditor payments. When you are approved for a debt consolidation loan, Best Egg will send the loan funds to pay off your credit cards or medical bills on your behalf. That way, the money never hits your account, so there’s no risk of spending it on other uses. Best Egg disburses funds in as little as one day, and it also has a secured loan option for borrowers who don’t qualify for unsecured loans. Qualifications To qualify for a loan from Best Egg, you must meet the following criteria:
Best Egg doesn’t disclose its income or credit score requirements online, but a spokesperson told us that the minimum recommended score is 600. Read the Full Best Egg Personal Loans Review Best for Secured Loans : MarinerInvestopedia's Rating 2.9
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Why We Chose It Most personal loans are unsecured, so lenders determine your eligibility for a loan and your interest rates based on your credit and income. For borrowers with less-than-perfect credit, qualifying for an unsecured loan can be difficult, if not outright impossible. Mariner Finance could be a useful option because it offers both unsecured and secured loans. Depending on your credit, Mariner Finance may give you the option of taking out a secured loan with your car or other property as collateral. Opting for a secured loan can improve your chances of qualifying, and you may be able to borrow more at better rates than you would with an unsecured loan. Mariner Finance also allows borrowers to apply with co-signers, which can make it easier to qualify for a loan. Although you can apply for a loan online, you can only apply for loans of $1,500 to $15,000 through the lender’s site. For other loan amounts, you must visit a branch in person. Qualifications
For Long Loan Terms : LendingPointInvestopedia's Rating 3.6
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Why We Chose It Loans for borrowers with bad credit tend to have limited repayment term options; with many, the maximum is 60 months or less. But with Lending Point, you can choose up to 72 months to repay the loan. And while some lenders with longer terms are credit unions with limited memberships, Lending Point is available to the general public. With a longer term, you’ll pay more in interest over time, but you’ll get a more affordable monthly payment. When money is tight and you have an emergency expense, being able to spread out the cost over a longer period to get smaller payments can be worth the tradeoff. Unlike some of the other lenders on our list, Lending Point doesn’t allow co-signers or joint applications, but it has relatively low requirements for income and credit, and it disburses funds as soon as the next day after approval. Before applying for a loan, check your credit report to make sure all of the information on it is correct; otherwise, it could affect your eligibility for a loan. Learn how to check your annual credit reports for free. Qualifications
Compare the Best Loans for Bad Credit of January 2023Overall RatingBest ForAPR Range Average Origination Fee Late Fee Time To Receive Loan Loan Amount Latest Repayment Reset All Upgrade4.3 Best Overall7.96% - 35.97%1.85%–8.99%$10.001 day$1,000 - $50,00084 monthsCheck RatesHide, not for me Rocket Loans4.0 Best for Fast Loans8.42% - 29.99%1.00% - 7.00%$15.000 days$2,000 - $45,00060 monthsCheck RatesHide, not for me Avant3.7 Hide, not for me Navy Federal Credit Union4.0 Best for Military Members7.49% - 18.00%0.00%$29.000 days$250 - $50,000180 monthsCheck RatesHide, not for me Upstart3.7 Best for Very Low Credit6.50% - 35.99%0.00%–10.00%5% of the late payment amount or $15, whichever is greater0 days$1,000 - $50,00060 monthsCheck RatesHide, not for me PenFed Credit Union4.7 Best Loan With Co-Signer7.74% - 17.99%0.00%$29.001 day$600 - $50,00060 monthsCheck RatesHide, not for me First Tech Federal Credit Union4.1 Best Credit Union8.99% - 18.00%0.00%$0.000 days$500 - $50,00084 monthsCheck RatesHide, not for me Best Egg4.1 Best for Debt Consolidation8.99% - 35.99%0.99% - 8.99%$0.001 day$2,000 - $50,00060 monthsCheck RatesHide, not for me Mariner2.9 Best for Secured Loans14.99% - 35.99%Varies by StateVaries by State1 day$1,000 - $25,00036 monthsCheck RatesHide, not for me LendingPoint3.6 For Long Loan Terms7.99% - 35.99%0.00% - 8.00%$0.00 - $30.001 day$2,000 - $36,50072 monthsCheck RatesHide, not for me *APR ranges for some companies include a discount for automatic payments or existing bank customers.Final VerdictAlthough it can be harder to get a personal loan if you have less-than-perfect credit, there are many lenders that work with borrowers with poor to fair credit scores. Some companies, such as Upstart, offer unsecured loans with lower score requirements, while others like PenFed Credit Union and Mariner Finance allow borrowers to apply with co-signers or offer the option of applying for a secured loan. Out of the best personal loans for bad credit, Upgrade stands out as the overall top choice due to its low credit score requirements, repayment term options, and quick loan disbursements. Whether you are looking to consolidate high-interest credit card debt or need to fix your hot water heater, Upgrade can help you get the money you need quickly. Guide for Choosing the Best Personal Loans for Bad CreditWhat Are Loans for Bad Credit?Bad credit loans are loans for individuals with low credit scores, usually 579 or less. Although there are many types, the most common are unsecured personal loans. There’s no collateral, you’ll have a fixed interest rate and fixed monthly payments and, like other loans, these will show up on your credit reports and affect your credit score. Unsecured personal loans for bad credit are just like any other unsecured personal loan, but they typically come with more fees and higher APRs than loans extended to people with better credit. Do You Qualify for a Personal Loan for Bad Credit?To qualify for a personal loan with bad credit, you’ll likely need to meet certain criteria. Some of the most important factors are:
Comparing Personal Loan Lenders for Bad CreditWhen shopping for a personal loan for bad credit, these are the most important things to consider when comparing lenders:
Applying for a Personal Loan with Bad CreditApplying for a personal loan with bad credit is similar to what’s required for any other type of loan, and it's a fairly simple process. You'll need to fill out an application, review the loan offers, accept the terms, and receive funding. You might need to set up an online account, depending on the lender you choose. You might be required to provide documentation such as a driver's license or other government-issued ID or proof of address or financial details such as your income or monthly housing payment. Most lenders will perform a soft credit check, which doesn't affect your credit score, to see if you prequalify for a loan. Once all of that is complete and your application is approved, you'll receive the terms and conditions of the loan. Make sure you review those carefully so you know exactly what's required, including monthly payments, what the loan can and can't be used for, and your interest rate. Frequently Asked QuestionsIs It Easy to Get a Personal Loan with Bad Credit?Getting a loan with bad credit tends to be harder than getting a loan with excellent credit, but there are still many lenders offering bad credit loans. Even if you have bad credit, it could be relatively easy to get a personal loan as long as you can afford the payment and you’re not currently delinquent on your existing debt. However, if you have active credit issues, like delinquent loans or accounts in collections, you may need to work on getting these problems fixed before you can qualify for a personal loan. There are many places you can go to get help resolving credit issues; credit counseling is a good place to start. What Are the Types of Loans for Bad Credit?The most common types of loans and similar products for bad credit include:
What Interest Rate Can I Expect If I Have Bad Credit?When you have a FICO score under 670, you're considered a subprime borrower. If your FICO score is less than 580, your credit falls into the "Poor" range. Every lender sets its own criteria (including credit score thresholds) for loan approval and pricing. That makes it difficult to predict precisely what APR you'll be offered for a personal loan if you have bad credit. Interest rates on personal loans can range from roughly 4.99% to 36%. If your credit rating is poor, you’ll probably be offered rates on the higher end of that scale. Where Can I Get a Personal Loan With Bad Credit?Getting a personal loan with bad credit can be a challenge. Still, you may find multiple lenders willing to do business with you (albeit at a higher interest rate than if you had good credit). There are two primary loan sources to consider:
Can I Get a Personal Loan with Guaranteed Approval?While there are no guarantees you'll get approved for a personal loan, especially if you have bad credit, there are a few steps you can take to increase your odds. First, pick a lender that's friendlier towards borrowers with bad credit (and if you don't know your credit score, you can check it for free). If your score is low, you can work to improve it before getting a loan, but if you need funding immediately, try to find a co-signer who has good credit. A co-signer is someone who promises to pay back the loan if you can't, and it might make you less of a risk in the eyes of the lender. And finally, consider applying with multiple lenders. The more lenders you try, the greater chance you have of finding one who'll approve you. Just make sure they do a soft rather than a hard credit check as the latter may decrease your credit score even more. MethodologyInvestopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. To rate providers, we collected hundreds of data points across more than 40 lenders, including interest rates, fees, loan amounts, and repayment terms, to ensure that our reviews help users make informed decisions for their borrowing needs. What's the easiest loan to get with bad credit?A no-credit-check loan is the easiest type of loan to get with bad credit, but it's bound to be a lot more expensive than loans from lenders that do a credit check.. Work on credit improvement. ... . Watch out for expensive lenders. ... . Consider credit unions. ... . Get pre-qualified.. Whats the biggest loan I can get with bad credit?While the network for consumers who have good credit offers larger loan amounts, you may still qualify for as much as $10,000 with bad credit. Not every consumer will qualify for the largest loan amounts.
Can I get a loan with credit score of 500?If conventional loans are more for experienced borrowers with credit scores in the Good range, FHA loans are aimed more at first-time homebuyers, especially borrowers with credit scores in the Poor to Fair FICO Score range. Anyone with a minimum credit score of 500 can apply for an FHA loan.
What company is the easiest to get a personal loan?The easiest banks to get a personal loan from are USAA and Wells Fargo. USAA does not disclose a minimum credit score requirement, but their website indicates that they consider people with scores below the fair credit range (below 640). So even people with bad credit may be able to qualify.
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