When lenders receive applications for personal loans, they typically take your credit score and overall creditworthiness into heavy consideration. Often, they require minimum credit scores to qualify — which can make it difficult for borrowers with poor credit to access these loans. Some lenders, however, offer personal loans for bad credit, meaning you can still qualify for a loan even if you have poor credit.
Unfortunately, those with unpolished credit scores often get saddled with higher interest rates and other less-than-ideal terms when applying for a loan. If you have bad credit, it’s typically difficult to qualify for a loan.
Bad credit loans generally come with fixed rates and are offered by lenders willing to loan you funds despite your limiting credit rating. These types of loans can help you build credit so you can eventually become eligible for better loan terms and other financial opportunities.
Avant: Best for quick funding
Avant has higher interest rates than some lenders, but you may receive your loan faster than their competitors. This online lender also allows borrowers to change their loan due date up to the day before the deadline. Plus, Avant offers secured loans for those who don’t qualify for an unsecured loan. Getting a secured loan may also help you to get lower rates, though you stand to risk losing any collateral you put down, so be sure you’re able to repay your loan. Minimum loan amounts may vary by state.
Happy Money: Best for few fees
Happy Money bad credit loans are specifically available to help borrowers eliminate their credit card debt. While you may not be eligible for Happy Money’s lowest interest rates, their personal loan rates may be lower than those on your current credit card. If you’re approved by this lender, you can typically expect to see your lump sum deposited into your account within three to six business days, which can be much slower than other lenders on this list.
LendingClub: Best for using a co-borrower
LendingClub is a peer-to-peer lending marketplace through which you can borrow up to $40,000 and get funds in as little as 24 hours. You may also change your due date with LendingClub — either as a one-time occurrence or permanently — but be sure to check how changing your payment deadlines could affect your interest rates. You’ll need to be current on your payments in order to change your due date. As an added bonus for borrowers with low credit scores, LendingClub also offers joint personal loans. The option to add a co-borrower may make it easier for some applicants with poor credit to qualify for a personal loan.
OneMain Financial: Best for secured loans
OneMain Financial has the lowest loan amount cap ($20,000) on our bad credit loans lender list, so this company may be best for those searching for smaller-sized bad credit loans. While OneMain Financial’s interest rates are fairly high, they may be lower than what you may find with other bad credit loan companies and predatory lenders. OneMain Financial charges late fees either ranging from $5 to $30, or as a percentage of your entire monthly payment charge (or the late portion of your monthly payment), which can range from 1.5% to 15%.
Upgrade: Best for flexible loan amounts
This online lender not only offers a wide range of loan amounts that consumers can choose from, but borrowers can also receive their loans as quickly as one business day after verifications are cleared. Furthermore, you could get a discount on your rates — though the lowest rates require borrowers to sign up for autopay, and they would also have to repay some of their current debts directly. However, not only does Upgrade charge an origination fee (ranging from (1.85% – 9.99%), but if borrowers are unable to keep up with their payments, this online lender also charges late and failed payment attempt fees.