Best Bad Credit Loans in Pennsylvania of February 2025

Your credit is a major factor lenders look at when reviewing your personal loan application. Without good or excellent credit, it can be hard to qualify. While not all lenders in Pennsylvania approve bad credit borrowers, there are some that do.

Whether you live in Pittsburgh or Philly — or somewhere in between — here are the best bad credit loans in Pennsylvania.

Compare bad credit loans in Pennsylvania

Methodology

To find the best bad credit loans in Pennsylvania, Credible evaluated 31 lenders using approximately 900 data points. We excluded lenders that don't have licenses to operate in Pennsylvania, then considered interest rates, availability of same-day funding, minimum credit score and income requirements, fees, customer service, whether secured loan and cosigned loans are available, and more.

We scored lenders based on the following:

• Rates and fees: 18%
• Loan terms: 18%
• Customer experience: 17%
• Eligibility: 14%
• Customer satisfaction: 10%
• Efficiency: 10%
• Options for poor credit and no credit: 9%
• Discounts: 4%

Each data point was verified by a senior editor to make sure it was accurate and up to date. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

What is a bad credit loan?

A bad credit loan is a loan that's accessible to those with bad credit, or a FICO score below 580. These may include personal loans, payday loans, cash advances, and more. Notably, Pennsylvania has banned payday loans. The bad credit loan types available in Pennsylvania include:

• Personal loans are a type of installment loan. You receive money upfront and repay it plus interest over the course of your loan's term — often several years. These are often unsecured, but they can also be secured. Most personal loan lenders prefer good credit, but some offer personal loans for bad credit. APRs are generally capped at 36% and repayment terms often range between 1 and 7 years.
• Cash advance apps offer a short-term, small-loan funding solution. Generally limited to $750 or less, these loans are typically due in a lump sum by your next paycheck. They don't require a credit check, but can get expensive if you tack on optional tips and fast funding fees, and can encourage repeat borrowing. The Center for Responsible Lending found that the average cash advance app APR rivals payday loan APRs at 367%.
• BNPL: Buy now pay later apps (BNPL) have soared in popularity, especially among borrowers with subprime and deep subprime credit. These offer interest-free, pay-in-four (or longer) arrangements without a hard credit check for retail purchases. The average BNPL transaction amount was $142, according to a recent CFPB report.

Learn More: What Is a Bad Credit Loan?

How do bad credit loans work?

It depends on the type of loan. Here's a rundown of how common bad credit loans in Pennsylvania work.

After finding a lender that caters to your credit profile and meets your other needs, you'll apply. This may involve submitting a formal application for a longer-term/higher-amount loan like a personal loan, allowing a soft credit check for BNPL, or giving a cash advance app access to your bank account. If approved, the lender will fund your loan, often in a matter of minutes or days.

Once you receive the funds, you should plan for repayment — whether you'll need to start making monthly or biweekly payments, or if the amount will be deducted from your next paycheck. Personal loan lenders typically report payments, which can help build your credit over time, but BNPL and cash advance apps typically do not. Missing payments on any loan type could damage your credit further.

Jessica Henderson, CPA Financial Planner with South Bay Financial Partners says it's crucial to remember to only take out the minimum loan needed to meet your needs. "Loans are not free money. They will need to be repaid at some point. Thinking about needs versus wants when taking out a bad credit loan can be helpful.”

Related: How Do Personal Loans Work?

Pros and cons of bad credit personal loans

If you can get a personal loan for bad credit, it comes with significant advantages over other bad credit loan types. But be aware of the disadvantages as well.

Pros

• Consistent monthly payments: Personal loans often have fixed interest rates and monthly payments, which can make it easier to plan for repayment.
• Years-long repayment terms: Spreading monthly payments over years can make them much more affordable than a months- or weeks-long repayment term, which could save your credit from further harm and help you rebuild.
• Versatile, fast funding: You can use a bad credit personal loan for almost any purpose, and money is generally deposited into your account within days of approval.
• Can help build credit: Making consistent, on-time payments to repay your loan can help you build credit over time. This can make it easier to qualify for a loan in the future.
• Potentially lower rates: Compared to credit cards and cash advance apps, bad credit personal loans can potentially provide a lower interest rate — especially if you apply with a cosigner or with a co-borrower.
• No collateral for unsecured loans: If you take out an unsecured bad credit loan, you don't have to worry about losing assets if you can't keep up with loan payments. However, defaulting on your loan will hurt your credit.

Cons

• May get stuck with a high rate: With bad credit, it can be tough to qualify for a low interest rate.
• Long-term financial commitment: Taking out any kind of personal loan is a big financial commitment. Once you do so, you're on the hook for monthly payments throughout your loan's term - if you fall behind, your credit score could drop.
• Limited options: With bad credit, you have fewer options than those with good or excellent credit. This not only limits the lenders you can choose but also restricts the available terms and loan amounts.

Learn More: Pros and Cons of Bad Credit Personal Loans

What are current bad credit loan rates?

Bad credit loan rates vary by lender. Generally, they're higher than rates offered to borrowers with good credit.

According to current Credible data, bad credit personal loan rates averaged around 32% APR for borrowers who prequalified with FICO scores below 580.

Learn More: What Are Current Personal Loan Interest Rates?

How to apply for a bad credit loan in Pennsylvania

Apply for a bad credit loan in Pennsylvania with the following steps:

1. Check your credit report: Go to annualcreditreport.com to get free copies of your credit reports. Check for mistakes that could be damaging your score, and dispute any errors you find.
2. Compare lenders: Knowing your credit score, look for lenders that work with borrowers in the same credit range. Then compare interest rates, find out if you can add a cosigner or get a secured loan, and check customer reviews.
3. Prequalify: When lenders allow it, prequalify with those you're interested in working with. This can give you a better estimate of what you'll pay in interest, though it doesn't guarantee your actual interest rate or whether you'll be approved.
4. Complete the application: If you want to move forward with a lender, submit the formal application, which will usually initiate a hard credit pull. You'll also need to provide supporting documentation, like proof of income, address, and identification. If you're applying with a cosigner, they'll need to submit their own information, too.
5. Review the loan offer: Before accepting a loan, carefully review the terms, including the APR, upfront fees, late fees, and repayment schedule. If anything looks amiss, reach out to rectify it with the lender before signing.
6. Wait for funding: If you've agreed to the loan's terms, wait to receive your money. Many lenders deliver funds via direct deposit in a matter of days. If you're using a loan to consolidate debt, you can check to see if your lender can send payments directly to your creditors. Some even offer a discount for doing so.

Learn More: How To Apply for a Personal Loan

Alternatives to bad credit loans

If you can't qualify for a bad credit loan — or if it's going to be too expensive — there are alternatives. Weigh the following options with bad credit loans:

• Peer-to-peer (P2P) lending: P2P lending platforms may be more accessible to bad credit borrowers since they don't involve traditional lenders. Instead, P2P lending connects borrowers with investors.
• Assistance programs: "For some, taking out a loan becomes unavoidable to cover basic living expenses," says Gomez. "In such situations, turning to organizations or institutions that provide support can be a lifeline." If this sounds like you, see if you qualify for one of Pennsylvania's cash assistance programs. Alternatively, you can look for help through the United Way of Pennsylvania at pa211.org.
• Family loans: Sometimes the best source of funding is family or friends. Loans may have lower interest rates and fewer fees. Plus approval will not require a hard credit check. Just be sure to clarify the loan's terms, including interest rate, fees, monthly payment amounts, due dates, and a repayment schedule in writing. If borrowing more than $10,000, check IRS rules to make sure your lender is charging a sufficient interest rate.

Learn More: 9 Personal Loan Alternatives

Read More:

• Where Can I Get a Bad Credit Loan?
• How to Choose the Best Bad Credit Loan Lender
• Co-applicant vs. Cosigner: What's the Difference?
• How and Where To Get a 500 Credit Score Loan
• Personal Loan With a 550 Credit Score: Can I Get One?
• Ways to Get an Emergency Loan with Bad Credit
• Best Personal Loans for Bad Credit
• Best Personal Loans for Fair Credit