Best Personal Loans for Bad Credit
To determine the best personal loans for people with bad credit, we looked at interest rates, fees, qualification requirements, and reviews.
Last Updated: December 31, 2025
Obtaining a personal loan with a low credit score can be next to impossible.
Lenders generally determine APR by looking at a potential borrower's credit history, as an indicator of their ability to repay the loan.
Since personal loans are unsecured by collateral, such as a car or house, lenders can be leery of providing them, unless you have a really good credit score.
However, some lenders do offer loans to people with bad credit, and at rates that aren't predatory, on the strength of a steady income and low debt levels.
What exactly is a bad credit score?
Your credit score is a measurement or rating of your financial reputation and reliability.
It is based on your financial history, taking into account timeliness of payments, credit inquiries, and types of accounts, among other factors.
Potential lenders use your credit score to determine whether or not you are a credit risk, what kind of interest rates they will give you, and whether or not to approve a loan, among other things.
Carrying around a bad credit score has many negative effects.
Someone with a bad credit score is unlikely to get low-interest rates on credit cards and on loans—they might not even get approved for either of those at all since the lender might consider them a credit risk.
Other bad credit score side effects include difficulty buying a car or getting approved for an apartment or house, higher insurance premiums, and difficulty getting a cell phone plan (all of these require a credit check).
So, what should your score look like?
Credit scores usually range from 300 points to 850 points, with 850 being the best possible score and 300 the worst.
Although most lenders use this same range, the specifics of what the lender considers good or bad might change.
Generally, though, a credit score between 700 and 850 is considered excellent, while a score between 680 and 699 is considered good.
An average score is somewhere between 620-679, and anything below 620 is considered a bad/low score and will probably result in potential lenders considering you a credit risk.
Where does this score even come from?
You’ve probably heard the term “FICO score.”
FICO stands for the Fair Isaac Corporation and they are the ones who calculate credit scores.
The company utilizes information from the three major credit bureaus: Experian, TransUnion, and Equifax, in order to calculate your credit score.
Fico takes certain factors into account when calculating your score.
The factor that weighs the heaviest on your score is payment history, which constitutes 35% of your score, and tracks whether you made or missed your payments.
This factor is followed by debt/amount owed, which constitutes 30% of your score, and takes into account all of your existing debt (credit cards, bills, mortgages, etc.).
Next up is the age of credit history, which consists of 15% of your score and considers when you first started building credit.
Mix of accounts/types of credit, at 10% of your score consists of how many different accounts you currently have (mortgages, credit cards, etc.).
Finally, we have new credit/inquiries, which constitutes the last 10% of your score, and which considers your recently opened accounts and any new credit inquiries.
How do you fix your credit score?
The best way to improve your credit score is to pay down your credit cards.
If 30% of your FICO score depends on how much of your available credit you’re using, and you’re using all or almost all of it, that’s bad.
Ideally, you want to be using 30% of your overall credit.
FICO also considers how much debt you have on each individual card and again, the ideal percentage is 30%.
Ideally, in these situations, you could request more credit cards, in order to increase your overall credit, and you could request a credit line increase to help with the second situation.
The problem is… if you have bad credit, you might not get approved for either of these, so what can you do?
This is where personal loans come in.
A loan can help you consolidate debt and pay off your credit cards. Most people with low credit scores go for either personal loans or “payday” loans.
Keep in mind, your credit score will always be checked when looking for a personal loan from a reputable provider.
Lenders that don’t have a credit score requirement are often predatory payday loans that can charge extremely high APRs.
PERSONAL LOANS VS PAYDAY LOANS
We will always recommend getting a personal loan over a payday loan.
People usually go for payday loans when they are desperately in need of money because these types of loans do not require a credit score check, and are available to anyone with a bank account, a steady job, and at least 18 years of age.
Payday loans are high-interest (sometimes reaching over 400% APR), short-term loans, usually for small amounts.
These loans need to be repaid by the person’s next payday (within 30 days).
This is why they’re called “payday” loans.
Although payday loans are supposed to be repaid within 30 days, some lenders offer rollovers, letting borrowers who can’t pay on the due date delay the payment for a fee that has to be paid on the due date.
But remember, these types of loans come with extremely high-interest rates (some exceeding 400%) and hefty fees for missed payments.
Again, we will always recommend a personal loan over a payday loan, but we especially advise you not to go for a payday loan if you are not 100% sure you will be able to pay it back in full by the original due date.
Personal loans usually come from more reputable lenders. Banks generally do not require borrowers to use their assets (home, cars, etc.) as collateral, but they do run a check on your credit score, when applying for a personal loan.
Yes, you will have to provide more documents and more information for a personal loan than for a payday loan, but the security that comes from working with a reputable lender that doesn’t use extremely high-interest rates and other predatory tactics to take advantage of your financial situation is worth the extra effort.
Banks will require borrowers present information and documents regarding credit score and credit history, income, and bank accounts, among other things.
Getting a personal loan from a reputable lender takes longer than a payday loan because the lender has to verify your credit score and look into your accounts and financial history, but these types of loans are safer, more reliable, and come with a much lower interest rate than what’s available through a payday loan.
Personal loans usually involve a larger amount of money as well, which means the repayment terms are longer, but you have a lot more time to pay off your debt than you would with a payday loan.
WHAT KIND OF PERSONAL LOAN?
Some online personal loan providers will work with consumers who have bad/low credit scores as long as they meet certain requirements.
These online lenders will verify that you have an income, the length of your credit history, and how long you’ve been employed.
You can also get personal loans from national banks, regional banks, and other financial institutions (like online lenders).
APRs for personal loans typically range between 4.99% and 35.99% and the amounts offered can range from relatively small amounts up to $1 million.
Even if you get a relatively high APR with your personal loan, keep in mind that it might still be worth it, since you can use this loan to consolidate many payments into one and it might still be a lower APR than the one you’re currently paying on your credit card bills (which are usually tied to high-interest rates) and which in turn would help bring your FICO score up by clearing up credit card debt.
Top 4 Personal Loans for Bad Credit
#1
Our Partner
Even Financial is free service with extensive connections to every major alternative finance lender. Through their platform, they can match borrowers with the right loan at the best rate, no matter how high or low their credit score, as their options range from excellent (760 or more), good (700-759), fair (640-699), or poor (less than 640). After inputting some basic information, Even Financial quickly shows borrowers the top results for the lenders that can match the type, size, and requirements. In the eventuality that they can't get the borrowers pre-approved instantly through their lenders, they still try to provide them with another product that may be useful, such as a debt consolidation program or a free credit report.
#2
Our Partner
LoanStart isn't a lending site in and of itself, but they do match borrowers with a vast network of reliable affiliate lenders. Their streamlines, online process makes it quick and easy to get paired with a loan provider. You are then redirected to the provider's site to finalize the details of your loan and finalize the agreement. Every individual lender has different credit score requirements, interest rates, applicable fees, and timeframe for repayment; but none asks for collateral. LoanStart is a virtual one-stop shop in which various lenders compete to offer the best rates to borrowers, which is not only convenient, but can also result in obtaining better loan terms than otherwise possible.
#3
Our Partner
Discover lends to borrowers with fair to good credit scores. One of their best features, if the personal loan is being taken out to consolidate debt, is that Discover will pay creditors off directly. They also provide free tools to help manage debt and estimate monthly payments. Their minimum income requirement is also quite reasonable, starting at just $25,000 per year. They're also among the small number of online lenders that don't charge an origination or prepayment fee, and allow payment flexibility. Finally, Discover personal loans are consumer-friendly, with a very short time to funding.
#4
Our Partner
Guide to Lenders makes lenders compete for your business, but also provides educational resources, via their valuable guides and information, as well as no-strings attached, free access to your credit. They help borrowers make informed decisions through their articles, calculators, glossary, and more. After filling out a short form, Guide to Lenders puts you in contact with flexible borrowers, some of which offer loans to people with poor credit scores of less than 599.
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Best Overall
Our Partner
Even Financial is free service with extensive connections to every major alternative finance lender. Through their platform, they can match borrowers with the right loan at the best rate, no matter how high or low their credit score, as their options range from excellent (760 or more), good (700-759), fair (640-699), or poor (less than 640). After inputting some basic information, Even Financial quickly shows borrowers the top results for the lenders that can match the type, size, and requirements. In the eventuality that they can't get the borrowers pre-approved instantly through their lenders, they still try to provide them with another product that may be useful, such as a debt consolidation program or a free credit report.
Partner Disclaimers & Disclosures:
SoFi's Disclosures:
1Fixed rates from 8.74% APR to 35.49% APR reflects the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount.
SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 11/03/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
SoFi Plus Discount: SoFi Plus members are eligible for an interest rate reduction of 0.25% on a Personal Loan. To be eligible for the discount, you must meet the SoFi Plus eligibility criteria within 31 days of the funding of your loan. For complete SoFi Plus eligibility, please see the SoFi Plus terms. When you enroll in SoFi Plus, the
discount will lower the interest rate that applies to your loan only during periods in which you are enrolled in SoFi Plus. The discount will be removed during periods in which SoFi determines you are not enrolled in SoFi Plus. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest
rate that was in place. SoFi reserves the right to change or terminate this offer for unenrolled participants at any time. You are not required to enroll in SoFi Plus to be eligible for Loan approval.
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2024 was around $33K. Information current as of 11/03/25. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.
2 Same-Day Personal Loan Funding: Same Day Funding means that most borrowers receive funds the same day when loan is approved and the loan agreement is signed by 5:30 PM ET on a business day. SoFi does not guarantee this, and delays may occur outside of our control, such as if inaccurate information is submitted, the receiving bank declines the transfer. Your bank may have rules on when the funds become available. Does not include personal loans originated with a SoFi partner bank.
3 To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Credible's Disclosures:
¹ Rates for personal loans provided by lenders on the Credible platform range between 6.49% - 35.99% APR with terms from 12 to 120 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 12%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 10.43%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32, assuming your lender deducts the origination fee from the offered loan amount. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 3, 2022, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.
Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Lowest rate advertised is not available for all loan sizes, types, or purposes, and assumes a very well qualified borrower with an excellent credit profile.
Rocket Loans' Disclosures:
All loans are made by Cross River Bank, a New Jersey state chartered commercial bank, Member FDIC, Equal Housing Lender. All loans are unsecured, fully amortizing personal loans. Eligibility for a loan is not guaranteed. This is not a deposit product. Please refer to the Disclosures and Licenses page for state-required disclosures, licenses, and lending restrictions.
¹ Qualified clients using Rocket Loans will see loan options for a 36 or 60 month term, and APR ranges from a minimum of 8.966% (rate with autopay discount) to a maximum of 29.99% (rate without autopay discount) depending upon their credit profile. An origination fee of up to 9% is charged for each loan. This fee is deducted from the balance before funds are disbursed to the client. For example, a 5-year $16,000 loan with a 14.55% interest rate and a 6.95% ($1,112) origination fee would have 59 scheduled monthly payments of approximately $376.83 and 1 final monthly payment of approximately $399.09 for an APR of 17.90%. Borrower must be a U.S. citizen or permanent U.S. resident at least 18 years of age. All loan applications are subject to credit review and approval and offered loan terms depend upon credit score, requested amount, requested loan term, credit usage, credit history and other factors. Not all borrowers receive the lowest interest rate. To qualify for the lowest rate, you must have excellent credit, meet certain conditions, and select autopay. Rates and Terms are subject to change at any time without notice.
Ohio Residents: All loans to Ohio residents must be greater than $5,001. The Ohio laws against discrimination require that all creditors make credit equally available to all credit worthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil Rights Commission administers compliance with this law.
Married applicants may apply for a separate account.
² Same Day Funding available for clients completing the loan process and signing the Promissory Note by 1:00PM ET on a business day. Also note, the ACH credit will be submitted to your bank the same business day. This may result in same day funding, but results may vary and your bank may have rules that limit Rocket Loan's ability to credit your account. They are not responsible for delays which may occur due to incorrect routing number, account number, or errors of your financial institution.
Please refer to Rocket Loans Terms of Use for additional terms and conditions, and to Rocket Loans' Privacy Notice and Cross River's Privacy Notice to learn more about what they do with your personal information.
For California residents, please see the California Financial Privacy Opt-Out Form.
NMLS #1399530. Go here for Rocket Loans' NMLS consumer access page.
Upstart's Disclosures:
¹ Rates for personal loans provided by lenders on the Credible platform range between 6.94% - 35.99% APR with terms from 12 to 120 months. Credible also works with network Partners like MoneyLion and AmONE, who offer loan and other products with different rates and terms than described here. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 12%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 10.43%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32, assuming your lender deducts the origination fee from the offered loan amount. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 3, 2022, none of the lenders on this platform require a down payment nor do they charge any prepayment penalties.
Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Lowest rate advertised is not available for all loan sizes, types, or purposes, and assumes a very well qualified borrower with an excellent credit profile.
² To check the rates and terms you may prequalify for, Credible conducts a soft credit pull that will not affect your credit score. If you choose a lender and continue with your application, the lender will usually conduct a hard credit pull that may impact your credit score.
Upgrade's Disclosures:
¹ Upgrade is a financial technology company, not a bank. Checking accounts provided by Cross River Bank, Member FDIC. Upgrade VISA® Debit Cards issued by Cross River Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early.
Your pre-approved offer is not guaranteed and is subject to Upgrade's verification and review process.
LendingClub's Disclosures:
Checking a rate through us generates a soft inquiry on a person’s credit report, which does not impact that person’s credit score. A hard credit inquiry, which may affect that person’s credit score, only appears on the person’s credit report if and when a loan is issued to the person.
Reducing debt and maintaining low credit balances may contribute to an improvement in credit score, but results are not guaranteed by LendingClub Bank. Individual results vary based on multiple factors, including but not limited to payment history and credit utilization.
Between Jan 2025 to June 2025, 55% of LendingClub Personal Loans that were approved for funding (which is after your loan application is approved) on a given business day were disbursed within 24 hours. Actual availability of funds may vary and is dependent on multiple factors, including, but not limited to your receiving bank’s processing times and policies. A business day is defined as Monday through Friday and excludes the weekend and bank holidays.
A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $24,046 for a term of 36 months, with an interest rate of 12.99% and a 6.00% origination fee of $1,443 or an APR of 17.37%. In this example, the borrower will receive $22,603 and will make 36 monthly payments of $810. Loan amounts range from $1,000 to $60,000 and loan term lengths range from 24 months to 84 months. Some amounts, rates, and term lengths may be unavailable in certain states.
For Personal Loans, APR ranges from 6.53% to 35.99% and origination fee ranges from 0.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. The lowest APR may be available to borrowers with excellent credit subject to additional factors including, but not limited to, loan amount, loan term, and sufficient investor commitment. Advertised rates and fees are valid as of November 7, 2025 and are subject to change without notice.
Loans are made by LendingClub Bank, N.A., Equal Housing Lender ("LendingClub Bank"), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Credit eligibility is not guaranteed. Loans are subject to credit approval and may be subject to sufficient investor commitment. Credit union membership may be require "LendingClub" and the "LC" symbol are trademarks of LendingClub Bank.
Savings are not guaranteed and depend upon various factors, including but not limited to interest rates, fees, term length, and making payments as agreed."
LendingClub Bank is not an affiliate of Consumers Advocate, which is an unrelated third party ("third party"). LendingClub Bank is not responsible for any products and services provided by this third party, which may receive compensation if you visit the LendingClub Bank’s websites or use any of its products or services. Certain information that LendingClub Bank subsequently obtains as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that your request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan. Loan closing is contingent on accepting all required agreements and disclosures.