The Best Personal Loans for Bad Credit 2023

If you don’t have the best credit, you could still get a personal loan to help you cover a car repair, medical bill, home improvement, or just about any other expense. Learn more about personal loans for bad credit. Find out which poor credit personal loan is the best, read lender reviews, and fill out your application. There are personal loans available to you, even if you have bad credit or fair credit. In fact, many lenders are willing to lend to those with bad credit. Fortunately, most of them offer fast applications and quick funding.

Compare Best Personal Loans for Bad Credit

How We Picked

We gathered data from several lenders and personal loans to bring you the best ones for borrowers with fair-to-bad credit based on several factors such as low income, quick funding, loan amount, accessibility, ease of application, and more.

Our methodology

AmONE reviewed over 30 personal loan lenders to see which ones offered loans to borrowers with less than good credit. We looked deeper into the ones we found and looked at over 10 data points, including credit score requirements, fees, accessibility, flexibility, customer service, interest rates, loan amounts, loan terms, the application process, and more. We picked the best personal loans for bad credit by scoring loans based on those features. But AmONE won’t stop there. We will continue to review our list to ensure the most recent loan information is included here and update our list annually.

Top Lenders for Borrowers with Fair or Poor Credit

OneMain: Best for cosigners and secured loans

What we like: Since OneMain accepts cosigners and offers secured loans, you’ll find it easier to get approved with a lower credit score. Loan amount: $1,500 to $20,000 Availability and restrictions: Not available in Arkansas, Alaska, Connecticut, Massachusetts, Rhode Island, or Vermont. Learn More About OneMain–Read the Review

Upgrade: Best for quick funding

What we like: Upon approval, you can receive the funds in your bank account in as little as one business day. Loan amount: $1,000 to $50,000 Availability and restrictions: Not available in Iowa, West Virginia, and Washington, D.C. Learn More About Upgrade–Read the Review

LendingClub: Best for small loan amounts

What we like: LendingClub loans start at $1,000, making them ideal if you have a smaller expense to cover. Loan amount: $1,000 to $40,000 Availability and restrictions: Not available in Iowa Learn More About LendingClub–Read the Review

Avant: Best for debt consolidation

What we like: Avant offers debt consolidation loans which can help you save money on your high-interest credit card debt and pay it off sooner. Loan amount: $2,000 to $35,000 Availability and restrictions: Not available in Colorado, Iowa, West Virginia, New York, Vermont, Hawaii, and Nevada. Learn More About Avant–Read the Review

Upstart: Best for limited or no credit history

What we like: Upstart was one of the first lenders to offer loans to borrowers with no credit. Loan amount: $1,000 to $50,000 Availability and restrictions: Not available in West Virginia and Iowa Learn More About Upstart–Read the Review

How Does a Personal Loan for Bad or No Credit Work?

Prequalify

Some lenders that offer personal loans for bad or no credit will allow you to prequalify and check your offers without any impact to your credit. If you decide to move forward with an offer, you can then complete the formal application, usually online, within minutes. During this step, the lender will perform a hard credit inquiry, which will affect your credit.

What about a cosigner?

To increase your chances of approval and improve your rate and terms, you might want to apply with a cosigner. A cosigner can be a spouse, parent, or friend with good credit who is willing to repay the loan with you. Keep in mind that not all lenders allow for cosigners so you’ll have to do your research and find one that does.

Get funding

Upon approval for a bad credit personal loan, you can expect funding fairly quickly. You may receive the money the same day you apply, within 24 hours, or in a few business days.

How to Compare to Find the Best Personal Loan for Bad Credit

Not all personal loans for poor credit are created equal. That’s why it’s a good idea to shop around, compare your options, and consider these factors.

APR

The annual percentage rate or APR is the total cost you’ll pay to borrow money, expressed as a percentage. You’ll be responsible for the APR each month, in addition to your loan’s principal amount. If you don’t have the best credit, you can expect a higher APR. Fortunately, you might lower it if you apply with a cosigner with a strong credit history.

Origination fees

Most personal loans for bad credit come with origination fees, which are usually charged as a percentage of the loan amount. These fees are often between 0.5% and 1% but might be more. While some lenders will deduct the fee from your loan proceeds, others will add it to your loan balance. If you do find a lender that doesn’t charge origination fees, you might have to pay a higher interest rate to make up for it.

Special features

Even though rates and fees should be your priority when you shop for a bad credit personal loan, you should also explore other features that can make poor credit personal loans more attractive. These might include mobile apps you can use to manage your loan, free credit score monitoring, and hardship assistance programs.

Repayment period and terms

Repayment options vary greatly from lender to lender. Sometimes, you can find terms as little as two years and as many as 10 years. While a longer repayment period will lead to lower monthly payments, it will cost you more in interest in the long run. This can be problematic, especially if you already have a high rate to begin with.

Funding time

If you can’t wait weeks or months for funds, rest assured any lenders will distribute them as soon as the same day you get approved or the next business day. Still, depending on the lender, you might have to wait several business days, especially if you’re borrowing a larger sum of money. If you have an emergency expense, lenders who offer fast funding should be at the top of your list.

How to Get a Personal Loan with Poor Credit

Follow these steps to help improve your chances of getting a loan with bad credit and to make the process easier on yourself.

Step 1: Research and compare your options

Do the heavy lifting and find several personal loans for bad credit. Be sure to compare their rates, terms, fees, and other features so you can choose the ideal option for your unique situation. You might also want to check online ratings and read customer reviews to ensure you choose a reputable lender.

Step 2: Check your credit score

Your credit score is based on factors like your payment history, debt-to-income ratio, and the diversity of your credit accounts. It’s important to check your credit score before you apply for a loan so you know where you stand. If your credit is even lower than you thought, you may still get approved for a personal loan from a lender with lenient requirements.

Step 3: Look for the best rates

Personal loan interest rates can be anywhere from 4.49% to about 35.99%. Your credit score, income, and employment situation may all influence your rate. Since the best personal loan rates are reserved for borrowers with good credit, you may have to accept a higher rate than you’d like if you have no credit or bad credit.

Step 4: Increase your chances of getting approved

Since there’s no guarantee you’ll get approved, you may want to take some steps to improve your chances of getting approved for a personal loan. You can pay down your debt, cancel newer credit cards with small limits that you rarely use, and increase your income. Another option is to apply for secured loans or secured options.

Step 5: Get preapproved

A personal loan preapproval is when a lender determines your eligibility for a personal loan. Once you provide some basic personal and financial information, the lender will perform a soft credit check, which won’t impact your credit. Then, they’ll show you any offers you might be eligible for. To accept an offer, you’ll need to fill out a formal application.

Step 6: Get organized

You’ll need a few documents to apply for a loan. These include government-issued IDs like driver’s licenses or passports as well as financial documents, such as pay stubs, bank statements, and tax returns. Make sure you have your documents on hand before you begin the application process.

Step 7: Apply

Most lenders will allow you to complete a loan application online. You might also be able to apply via phone or in person at a local branch. When you apply, make sure you answer each question accurately and submit all the required documents. Double-check your work to avoid delays with approval and funding.

Step 8: Reach out if you need help during the process

AmONE personal loan representatives are here to assist you with your bad credit personal loan. If you need help with your application, have concerns about credit inquiries, or would like further information on a specific lender, don’t hesitate to call 888-401-0330.

Step 9: Make payments on time

If you make timely loan payments, you’ll build or improve your credit. You might also want to pay off your loan early so you can save on interest and reduce your debt. If you do go this route, however, make sure there’s no prepayment penalty. In the event you can’t make a payment for any reason, reach out to the lender as soon as possible to discuss your options.

If you’re declined

If a lender denies your application for a personal loan, know you’re not alone. This happens often, even to borrowers with good credit. You may want to apply for a new personal loan with more lenient requirements or focus on improving your credit. Don’t give up because you will get approved eventually.

How AmONE Can Help You Find a Personal Loan with Bad Credit

Since there is no shortage of personal loans on the market, it can be difficult to find the right loan for your particular needs. That’s where AmONE comes in. You can use our free service to get matched to the best option for your unique situation. Browse loan options on your own or let us do the legwork so you can focus on other tasks. Our friendly, knowledgeable personal loan representatives are well versed in poor credit personal loans. We’ve helped many people with bad credit secure the financing they need and look forward to hearing from you!

Personal Loans for Bad Credit Pros and Cons

While personal loans for poor credit offer several benefits, they’re not perfect and do come with some challenges. Keep these pros and cons in mind when deciding whether a bad credit personal loan is right for you.

Frequently Asked Questions