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Filters$20,000 loan amount and 700-749 credit score, ordered by APR

Happy Money

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Rates from (APR)

8.95-17.48%

Loan term

2 - 5 years

Loan amount

Up to $40,000

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Happy Money: Best for consolidating credit card debt

Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.

You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.

Prepayment penalty: None

Unsuccessful payment fee: None

Minimum credit score: 640

Origination fee: 2% to 5%

Check processing fee: None

Do they allow a cosigner: No

Late fee: None

Time to fund: As soon as 2 - 5 business days after verification

SoFi

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Rates from (APR)

8.99-29.99%³

Loan term

2 - 7 years

Loan amount

$5,000 - $100,000

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SoFi: Best for personal loans for excellent credit

SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.

The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.

Prepayment penalty: None

Unsuccessful payment fee: None

Minimum credit score: Does not disclose

Origination fee: 0% - 7%

Check processing fee: None

Do they allow a cosigner: No

Late fee: None

Time to fund: Typically within a few days, given approval and bank account verification

Prosper

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Rates from (APR)

8.99-35.99%

Loan term

2 - 5 years

Loan amount

Up to $50,000

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Prosper: Best for peer-to-peer lender

Prosper is the only remaining true P2P marketplace in the peer-to-peer lending space that connects borrowers with individual investors for some loans. If you apply for a loan with Prosper, the funding may come from an individual who has chosen to invest in you. Prosper offers personal loans between $2,000 and $50,000 with terms between 2 and 5 years, and funding as soon as one business day. You can use a personal loan through Prosper for a variety of purposes, including debt consolidation and home improvement. The platform has excellent customer service reviews on Trustpilot, as well.

Prepayment penalty: None

Unsuccessful payment fee: $15

Minimum credit score: 640

Origination fee: 1% to 9.99%

Check processing fee: $5 or 5% of the payment (whichever is lower)

Do they allow a cosigner: Yes

Late fee: 5% of late payment or $15 (whichever is greater)

Time to fund: 1 business day following acceptance of loan offer, completion of all necessary verification steps and final approval. One business day is also dependent on your bank’s ability to quickly process the transaction.

Rocket Loans

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Rates from (APR)

9.12-29.99%

Loan term

3, 5 years

Loan amount

Up to $45,000

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Rocket Loans: Best for fast personal loans

Rocket Loans delivers no-frills same-day personal loans with a generous autopay discount to good-credit borrowers and some borrowers with fair credit. APRs and available loan amounts are competitive — Rocket Loans offers $2,000 loans up to $45,000 loans. Plus, the company offers small business loans if you apply directly through its website. However, you’ll only have a choice between two repayment terms — 3 or 5 years — and origination fees can be as high as 9%. If you have fair credit, you may qualify, but won’t be able to add a cosigner or get a secured loan to improve your rate.

Prepayment penalty: None

Unsuccessful payment fee: None

Minimum credit score: 640

Origination fee: Up to 9%

Check processing fee: None

Do they allow a cosigner: No

Late fee: Yes

Time to fund: If approved, you may receive funds in your account as soon as the same business day

Avant

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Rates from (APR)

9.95-35.99%

Loan term

2 - 5 years

Loan amount

Up to $35,000

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Avant: Best for all credit types

Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.

Prepayment penalty: None

Unsuccessful payment fee: $15

Minimum credit score: 550

Origination fee: 0.95% to 9.99%

Check processing fee: None

Do they allow a cosigner: No

Late fee: $25

Time to fund: As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)

Upgrade

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Rates from (APR)

9.99-35.99%

Loan term

2 - 7 years

Loan amount

Up to $50,000

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Upgrade: Best for fair credit

Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.

However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.

Prepayment penalty: None

Unsuccessful payment fee: $10

Minimum credit score: 600

Origination fee: 1.85% to 9.99%

Check processing fee: None

Do they allow a cosigner: No

Late fee: $10

Time to fund: Within a day of clearing necessary verifications

Citibank

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Rates from (APR)

11.49-20.49%⁷

Loan term

1 - 5 years

Loan amount

Up to $30,000

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Citibank: Best for no fees

Citi offers no-fee personal loans to borrowers with very good credit (a FICO credit score of 740 or higher). No-fee means no origination fees and no late fees, and Citi is one of very few lenders that don’t charge either. (Origination fees are deducted from the loan upfront, reducing the amount you receive).

Though Citi requires a relatively high credit score to qualify, its minimum income requirement is low. The company also offers a generous 0.50 percentage point autopay discount and makes same day funding available to current Citi customers.

Citi offers relatively small loans, as low as $2,000. But the maximum amount you can borrow is capped at $30,000, which is less than most of its competitors. Another drawback is that the minimum APR is relatively high. Just keep in mind that even with excellent credit, you may not qualify for a lender’s lowest advertised rate, which is one reason it’s good to prequalify with multiple lenders before applying.

Citi personal loans are available nationwide.

Prepayment penalty: None

Unsuccessful payment fee: None

Minimum credit score: 740

Origination fee: None

Check processing fee: None

Do they allow a cosigner: No

Late fee: None

Time to fund: Same day with an existing Citi account, or within 2 business days with a non-Citi account

Universal Credit

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Rates from (APR)

11.69-35.99%

Loan term

3, 5, or 7 years

Loan amount

Up to $50,000

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Universal Credit: Best for debt consolidation loans for bad credit

Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.

Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.

Prepayment penalty: None

Unsuccessful payment fee: $10

Minimum credit score: 560

Origination fee: 5.25% - 9.99%

Check processing fee: None

Do they allow a cosigner: No

Late fee: $10

Time to fund: As soon as 1 business day after acceptance

Zable

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Rates from (APR)

12.95-30.00%

Loan term

1 - 5 years

Loan amount

Up to $35,000

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Zable: Best for short-term loans and same day funding

Zable offers relatively small loan amounts — ranging from $1,000 to $25,000 — that can be deposited in your account as soon as the same day you are approved, if it is by the lender's deadline. It’s an option for fair-credit borrowers, with a minimum credit score of 600, as well as those with lower incomes.

Its origination fees range from 5% to 9%, however, and it does not offer discounts, secured loans, nor the option to add a cosigner to your application. Zable also currently does not offer loans in 21 states.

Prepayment penalty: None

Unsuccessful payment fee: None

Minimum credit score: 600

Origination fee: 5% to 9%

Check processing fee: None

Do they allow a cosigner: No

Late fee: None

Time to fund: As soon as the same business day if approved by 3:30pm Eastern Time

LendingUSA

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Rates from (APR)

13.00-29.99%

Loan term

3, 4, or 5 years

Loan amount

Up to $50,000

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LendingUSA: Best for interest-free merchant financing

Lending USA offers funding for a wide array of products and services, and sometimes offers six-month interest-free promotions on loans made through its merchant partners. Loans made through Credible are available for debt consolidation, credit card refinancing, and home improvement, and are best for borrowers with good credit or fair credit.

Just note that you may be charged an origination fee, and loans aren’t available nationwide. If applying via Credible, you should have a minimum FICO score of 660 to qualify.

Prepayment penalty: None

Unsuccessful payment fee: Yes

Minimum credit score: 640

Origination fee: 5%

Check processing fee: None

Do they allow a cosigner: No

Late fee: Yes

Time to fund: 1-3 business days

Reach Financial

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Rates from (APR)

14.30-35.99%

Loan term

2 - 5 years

Loan amount

Up to $40,000

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Reach Financial: Best for fast funding and fair credit

Reach is an option if you have fair credit, especially if you need money fast. According to the company, 90% of Reach personal loans are funded within one day of approval.

It's a good choice for debt consolidation and credit card refinancing, but borrowers with excellent credit may not find the lowest rates with Reach. The company also charges more fees than some of its competitors and doesn't offer direct pay or autopay discounts. If you need a 7-year term loan, you'll need to look elsewhere. Reach personal loans are not available in all states.

Prepayment penalty: None

Unsuccessful payment fee: $25

Minimum credit score: 640

Origination fee: 4% to 8%

Check processing fee: None

Do they allow a cosigner: No

Late fee: $15

Time to fund: 90% funded within a day

Bad credit loan interest rates

Bad credit loan rates are affected by the overall interest rate environment, including economic factors such as inflation. They’re also influenced by your credit history, income, employment record, and outstanding debts.

To determine what your personal loan rate might be if you have bad credit, you can prequalify online. Prequalifying won’t affect your credit score and is only an estimate of the rates and terms you might receive. If you move ahead with a formal application, lenders usually perform a hard credit inquiry, which could temporarily drop your credit score by a few points.

Because lenders tend to offer their lowest rates to borrowers with excellent credit, rates for bad credit loans tend to be higher than average personal loan rates. Below is a breakdown of average personal loan rates by credit score, according to Credible loan data.

Current personal loan interest rates by credit score

How do bad credit loans work?

A bad credit loan is a type of installment loan, which means you pay back the borrowed amount in regular installments, usually monthly. Both the payments and interest rate are typically fixed, which means they stay the same every month.

Repayment terms: You usually have multiple options for repayment terms. Depending on the lender and the loan you choose, terms could vary from around two to seven years, with some lenders offering longer terms for specific loan purposes like home improvement.
Loan amounts: The amount you can borrow with a bad credit loan typically ranges from $1,000 to $50,000. You might even be able to borrow up to $100,000 or more with certain lenders. But you would need strong compensating factors to qualify for a large loan with bad credit.
Interest rates: Interest rates for bad credit loans are higher than they are for good credit. If you have bad credit, your interest rate could be 30% or more, which could negate the purpose of getting a loan entirely.
Fees: Many bad credit loans charge origination fees, which are upfront fees that are deducted from your loan proceeds. The annual percentage rate (APR) of a bad credit loan accounts for the origination fee, making it easier to compare the overall yearly cost from one lender to another. Some lenders also charge fees for late payments, returned checks and insufficient funds (not reflected in the APR).
Funding times: The time it takes to get your loan funds vary from lender to lender. Some lenders can deposit your money the same day you’re approved, while others can take several business days.

Related: How Do Personal Loans Work?

How to avoid a personal loans scam

Unfortunately, there are predatory lenders out there that try to take advantage of people with bad credit by promising quick funding and no-credit-check loans. However, many legitimate lenders may also offer these things.

To avoid a bad credit loan scam, look out for lenders that:

Request a fee in advance: A lender that asks for a processing fee or application fee before you apply or are approved is a scam. This is different from an origination fee, which is taken from the amount you borrow, not from your bank account.
Ask for payment using methods that can’t be traced: Never agree to make loan payments in cash or by wire, as those methods have no paper trail that can be traced. Same with “lenders” that ask you to send payment via courier.
Guarantee you’ll be approved no matter what: A lender that promises to loan money to you is not reputable.
Ask for the title on your car: This is a sign of a title loan, which is a predatory type of loan with exceptionally high fees. If you default on the loan, you can lose your car.
Promise “insurance” on a loan: Loans don’t require insurance, though they may be an option for some types of loans. If a lender requires money for insurance on a loan, that’s a sign of a scam.
Ask for your bank login information: A lender doesn’t need login credentials for your bank account. That’s a sign a criminal is about to clear out your savings.

Learn More: How to Check If a Personal Loan Company Is Legitimate

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Benefits of taking out a personal loan

Lower rates

Getting rid of high-interest debt can save you money on interest payments.

Improve your credit

Making on-time payments on a loan can boost your credit score.

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Most personal loans don’t require collateral, so you won’t need to use your home or vehicle to secure it.

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Get a personal loan for all your financial needs

Our lender partners support personal loans for many different loan purposes. They offer low interest rates and a variety of loan amounts and loan terms to help you meet your personal and financial goals.

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Personal Loans FAQs

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By Meredith Mangan

Written by

Meredith Mangan

Senior editor

Meredith Mangan is a senior editor and expert on personal loans.

Reviewed by Kelly Larsen

Written by

Kelly Larsen

Editor

Kelly Larsen has been in finance for more 10 years with bylines at Auto Trends Magazine and Buy Side from WSJ.

Updated Dec 9, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

What are bad-credit loans?

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A bad-credit loan is any type of loan that is approved for a borrower who has bad credit. Bad credit, or poor credit, is defined as a FICO score below 580.

Many lenders do not offer bad-credit personal loans unless the applicant has a cosigner with good credit, a co-borrower with good credit, or offers collateral to secure the loan, such as a car or the fixtures in your home. If you get approved for a bad-credit loan, expect to pay a relatively high interest rate and fees.

Explore: Types of Bad Credit Loans

How can I get a personal loan with bad credit?

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To get a personal loan with bad credit, you should ideally have a reliable and sufficient income to make loan payments, as well as a low debt-to-income ratio (DTI).

Since lenders are hesitant to make bad-credit loans, you may also need collateral for a secured loan or a cosigner with good credit to get approved. Not all lenders allow cosigners or offer secured loans — research those that do before applying. If you don’t need money immediately, you could get a credit-builder loan.

Related: How To Get a Personal Loan

What is a bad credit score?

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A bad credit score is a FICO score that’s below 580. With a bad credit score, it can be hard — but not impossible — to get approved for new credit, as there are few lenders that offer bad-credit loans.

It’s easier to get approved with a fair credit score, which is a FICO score between 580 and 669. Making timely debt payments and decreasing your credit utilization can help improve your score.

How to qualify for a personal loan with bad credit

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Having bad credit can make it difficult to qualify for a personal loan, but not impossible. Try the following tactics:

Apply for a personal loan with a cosigner
Apply with a co-borrower
Apply for a secured loan
Apply for a smaller loan amount
Improve your credit first
Apply for a credit-builder loan
Apply for a payday alternative loan (PAL)

What are the pros and cons of bad-credit loans?

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Pros:

Can get much-needed funds
Can pay for emergencies
Easy approval on payday loans and cash advance apps
Quick funding
Some loan types can build credit

Cons:

High fees, and APRs can be in the triple digits, depending on loan type
Approval for bad-credit personal loans can be difficult
Payday loans and cash advance apps won’t build credit
May lead to a cycle of debt

Where can I get a bad-credit loan?

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Bad-credit loans are available from some online lenders, very few banks, credit unions, payday loan lenders, and via online cash advance apps. If you have a cosigner with good credit who’s willing to share responsibility for the loan, you’re more likely to be approved.

But not all lenders allow cosigners. If you need a small emergency loan, consider a payday alternative loan (PAL) from a credit union — approval is relatively easy and the maximum APR is 28% (much lower than payday loans and most cash advance apps).

How does a bad credit loan affect your credit score?

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A bad-credit loan will affect your credit score just like any loan would — it can improve your score if you make timely payments and pay the loan off in full. It can also hurt your score further if you miss payments or default on the loan. What’s worse, if you have a cosigner or a co-borrower on the loan, you could hurt their credit as well.

Note that no-credit check loans, such as payday loans and cash advance apps, rarely report your payments to a credit bureau, which means you generally can’t build your credit with these loans. But if you don’t pay a payday loan, it could be sent to collections and appear as a derogatory mark on your credit report.

What are the alternatives to bad-credit loans?

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Bad-credit loans can be a bad idea, especially if you’re considering a payday loan or a cash advance app where APRs can be well over 100%. Alternatives include:

Payday alternative loans (PALs)
Credit-builder loans
Home equity loans
Home equity lines of credit (HELOCs)
Credit cards
Cash-out refinance (home or car)
Cash-value life insurance loan
401(k) loans
Money from friends and family

The best choice will depend on what you can qualify for and what’s available to you. But if you’re having trouble paying bills or making ends meet, consider talking to a credit counselor about options. You should also avoid tapping retirement funds if you think you might file for bankruptcy.

Related: Personal Loan Alternatives

Can I refinance a bad-credit loan?

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Yes, you can refinance a bad-credit loan. If you’ve improved your credit score, it’s probably one of the first things you want to look into doing. For example, if you’ve made the jump from bad credit to fair credit (a FICO score above 580), you could reduce the interest rate on a personal loan by 3 percentage points, considering current personal loan interest rates.

If you have good credit (a FICO score above 669), you could reduce your rate by 10 percentage points. If you’re paying off one or more payday loans and have a willing cosigner with good credit, it could be worth it to try to consolidate payday loans even with bad credit.

Check Out: Refinancing a Personal Loan: Can It Be Done?

¹Personal Loans Rate and Terms Disclosure: 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. 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.

²To 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.

Debt consolidation and credit card refinancing involve using a new loan to pay off your existing balance. This does not eliminate debt, but replaces one debt with another. While personal loan rates generally are lower than credit card interest rates, you may pay more in origination fees and interest over the life of the loan depending on other loan terms. Please consult a financial advisor to determine if refinancing or consolidating is right for you.

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