Jessica Walrack is an experienced freelance writer who has spent more than 11 years in personal finance, with expertise on loans, insurance, banking, mortgages, credit cards, budgeting, and taxes. Her work has been published by CNN, CBS MoneyWatch, U.S. News & World Report, and USA Today.
Meredith Mangan is a senior editor at Credible. She has more than 18 years of experience in finance and is an expert on personal loans.
Updated October 22, 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.”
Credible takeaways
Various types of bad-credit loans exist, including personal loans, payday alternative loans, cash advances, and more.
Bad-credit loans like payday loans can be predatory, so it’s important to carefully review their rates and terms.
Also consider alternatives like borrowing from a friend or family member, crowdfunding, or picking up side work.
If you have bad credit, you may find it difficult to get a loan. Approval for most loans hinges on two things — your credit and income. If either is lower than average, it can result in denials or undesirable annual percentage rates (APRs) and terms. However, there are a variety of loan types designed for people who have bad credit.
Bad-credit personal loans
A bad-credit personal loan refers to an installment loan that’s available to borrowers with bad credit. They tend to be unsecured, but some lenders allow applicants to pledge collateral to strengthen their applications. Upon approval, you receive a lump sum amount and repay it over a set term (often a year or more).
There are three types of bad-credit personal loans:
Unsecured loans don’t require collateral to secure the loan, which could make it difficult to qualify or get a low APR.
Secured loans require collateral, like your car or house, to secure the loan. As a result, you may be able to qualify for the loan or get a lower APR. But If you fail to make payments, the lender can seize your asset. These loans come with less risk for the lender, but more risk for you.
Cosigned loans: If you don’t want to risk your house or car, you can also get a cosigner to help you qualify or get approved for a lower APR. Typically someone with good credit, a cosigner assumes equal responsibility for the loan. In other words, if you default on your monthly payments, they're obligated to make them. This could strain your relationship with your chosen cosigner and damage their credit if you miss or make late payment. So make sure you can afford the payments.
Lenders charge interest on bad-credit loans and may charge origination fees up to 12% of your loan amount, which is typically deducted from the loan funds you receive. The average interest rate for a 24-month personal loan was 12.33% in August 2024, according to the Federal Reserve.
Nineteen states and Washignton, D.C., cap the APRs licensed non-bank lenders can charge on high-cost installment loans at 36%. However, 13 states allow APRs between 36% and 60%, three only restrict APRs that are considered “unconscionable,” and two have no caps. You can check your state’s APR caps with the National Consumer Law Center.
While personal loan amounts often range from $600 to $100,000 or more, and terms can extend up to 7 years or longer, bad-credit loans typically come with smaller loan amounts and shorter terms.
You can prequalify with a lender to see possible rates without impacting your credit score. Prequalification is not an offer of credit. The final rate you get may be different, and when you formally apply, your score may take a small hit.
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
pros
Same-day funding available
High maximum loan amount
No origination fee
cons
Good credit required
No prequalification process
Not available in Vermont
Loan amount
$5,000 to $100,000
Repayment terms
2 - 20 years, depending on loan purpose
Fees
None
Discounts
Autopay
Eligibility
Available in all states except RI and VT
Min. income
Does not disclose
Customer service
Email
Soft credit check
No
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
Secured loans available
Low minimum income requirement
Scored second in J.D. Power's Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
cons
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
cons
May charge a high origination fee
No discounts offered
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
pros
Excellent customer reviews on Trustpilot
Funding as soon as the next business day
Large loan amounts available
cons
Possible origination fee up to 7.49% (through Credible)
Other lenders may have lower starting APRs
No cosigner option
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Fees
Origination fee
Discounts
None
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Min. income
$45,000
Customer service
Live chat
Soft credit check
Yes
Time to get funds
Typically 1-3 days
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchases
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
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.
pros
Mobile app
Live chat
Low maximum APR
cons
Limited loan terms available
No discounts
Origination fees
Not available in MA or NV
Loan amount
$3,000 to $40,000
Fees
Origination fee
Discounts
None
Eligibility
Available in all states except MA, MS, NV, and OH
Min. income
None
Customer service
Phone, email, chat
Soft credit check
Yes
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
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.
pros
No fees required
Large loan amounts available
Autopay and direct pay discounts
Same day funding
Long loan terms available
cons
Good credit required
5,000 minimum loan amount
Loan amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
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.
pros
Borrowers with bad credit considered
Funds as soon as the next business day
2-year loan terms available
cons
No discounts offered
Origination fee
Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Discounts
None
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
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.
pros
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
cons
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Email
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval. Note that you can't prequalify with BHG.
pros
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
cons
Not available in IL, ND, and MT
No discounts
Minimum annual income requirement of $100,000
Funding takes at least five days
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees, other fees may apply
Discounts
None
Eligibility
Available in all states except Illinois, North Dakota, and Montana
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.
pros
Borrowers with bad credit considered
$25,000 annual income requirement
Autopay and direct pay discounts available
Can fund in one business day
cons
High APRs
Potentially high origination fees
Not available in Iowa
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
$25,000 annually
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
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.
pros
Fast funding
Can improve credit
Fair-credit borrowers may be eligible
cons
Limited use
No direct pay discount
Origination fee
Limited availability: Not available in CO, CT, ME, NV, NH, TN, VT, WV, or WY
Loan amount
$3,500 to $40,000
Fees
Origination Fee, $15 Late Fee, $25 NSF Fee
Discounts
None
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Min. income
$1,000 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
Funds typically deposited into your account in 1 business day13
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
cons
Availability
Origination fees
High starting APR
Low maximum loan amount
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
pros
Same-day funding available
High maximum loan amount
No origination fee
cons
Good credit required
No prequalification process
Not available in Vermont
Loan amount
$5,000 to $100,000
Repayment terms
2 - 20 years, depending on loan purpose
Fees
None
Discounts
Autopay
Eligibility
Available in all states except RI and VT
Min. income
Does not disclose
Customer service
Email
Soft credit check
No
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
Secured loans available
Low minimum income requirement
Scored second in J.D. Power's Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
cons
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
cons
May charge a high origination fee
No discounts offered
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
pros
Excellent customer reviews on Trustpilot
Funding as soon as the next business day
Large loan amounts available
cons
Possible origination fee up to 7.49% (through Credible)
Other lenders may have lower starting APRs
No cosigner option
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Fees
Origination fee
Discounts
None
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Min. income
$45,000
Customer service
Live chat
Soft credit check
Yes
Time to get funds
Typically 1-3 days
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchases
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
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.
pros
Mobile app
Live chat
Low maximum APR
cons
Limited loan terms available
No discounts
Origination fees
Not available in MA or NV
Loan amount
$3,000 to $40,000
Fees
Origination fee
Discounts
None
Eligibility
Available in all states except MA, MS, NV, and OH
Min. income
None
Customer service
Phone, email, chat
Soft credit check
Yes
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
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.
pros
No fees required
Large loan amounts available
Autopay and direct pay discounts
Same day funding
Long loan terms available
cons
Good credit required
5,000 minimum loan amount
Loan amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
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.
pros
Borrowers with bad credit considered
Funds as soon as the next business day
2-year loan terms available
cons
No discounts offered
Origination fee
Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Discounts
None
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
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.
pros
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
cons
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Email
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
BHG Financial stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval. Note that you can't prequalify with BHG.
pros
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
cons
Not available in IL, ND, and MT
No discounts
Minimum annual income requirement of $100,000
Funding takes at least five days
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees, other fees may apply
Discounts
None
Eligibility
Available in all states except Illinois, North Dakota, and Montana
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.
pros
Borrowers with bad credit considered
$25,000 annual income requirement
Autopay and direct pay discounts available
Can fund in one business day
cons
High APRs
Potentially high origination fees
Not available in Iowa
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
$25,000 annually
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
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.
pros
Fast funding
Can improve credit
Fair-credit borrowers may be eligible
cons
Limited use
No direct pay discount
Origination fee
Limited availability: Not available in CO, CT, ME, NV, NH, TN, VT, WV, or WY
Loan amount
$3,500 to $40,000
Fees
Origination Fee, $15 Late Fee, $25 NSF Fee
Discounts
None
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Min. income
$1,000 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
Funds typically deposited into your account in 1 business day13
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
cons
Availability
Origination fees
High starting APR
Low maximum loan amount
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Payday loans are small loans of around $500 that you can borrow until your next paycheck. The typical cost for a two-week payday loan is $15 per every $100 borrowed, which equates to an APR of about 400%. Due to their high costs and short repayment periods, several states have deemed payday loans predatory and prohibited or restricted them. You can check out the National Conference of State Legislatures for more info on the status of payday loans in your state.
Additionally, while these loans are designed to be paid off by your next paycheck, some states permit payday lenders to roll over or renew these loans for a fee to extend the due date. It becomes very easy to get trapped in a cycle of debt this way.
Where legal, they can be found from both online and brick-and-mortar lenders. A soft credit check is usually required when applying online, but may not be required in-store. In either case, you’ll need to provide proof of income.
The National Credit Union Administration allows federal credit unions to offer payday alternative loans, which are designed to be an affordable alternative to traditional payday loans.
There are two types of PALs:
PALs I have a minimum loan term between 1 month and 6 months, with loan amounts between $200 and $1,000. For these loans, you need to be a member of a credit union for at least a month.
PALs II offer loan terms from 1 month up to a maximum of 12. There is no minimum to borrow, but the maximum you can take out is $2,000. As soon as you become a member of a credit union, these loans are immediately available.
Keep in mind
Borrowers can only borrow three PALs within a six-month period, application fees are limited to a maximum of $20, and the maximum allowable interest rate is 28%.
Credit card cash advances
Cash advances are a feature on credit cards that allow you to pull a percentage of your credit line out of an ATM in cash. Credit card issuers assign each cardholder a cash advance limit, fee amount, and APR. You can find them on a card’s rates and terms sheet.
Cash advance fees tend to be in the ballpark of 3% to 5% of the advance amount, and cash advance APRs are often a few percentage points higher than a card’s purchase APR. For reference, the average credit card APR currently sits at 21.86%, according to the Federal Reserve.
Unlike regular purchases, interest begins to accrue immediately on a credit card cash advance, whereas there's typically a grace period before the interest on credit card purchases begins to accrue.
Cash advance apps
A new type of cash advance is also available for bad-credit borrowers, and it’s gaining popularity. Cash advances of about $500 to $750 are now offered through various cash advance apps like Dave, EarnIn, and MoneyLion. Many of these apps don’t require credit checks. Instead, they review your bank account activity to determine the amount they'll advance.
As for the costs, most cash advance apps offer free advances if you’re willing to wait a few business days for the standard processing time. However, if you need the money faster, you’ll have to pay an expedited transfer fee. Expedited transfer fees increase with the amount advanced and can translate to triple-digit APRs (like payday loans), in some cases.
Repayment is based on when your next paycheck is coming, which is typically within two weeks. Cash apps also sometimes request tips, which are optional and can quickly increase your cost of borrowing.
Car title loans
Car title loans are short-term, high-cost loans that require you to pledge a vehicle title as collateral. In most cases, you have to own the vehicle free and clear, but some lenders allow vehicles that are almost paid off.
Once you pledge an eligible title, you can borrow a percentage of your vehicle’s value — often 25% to 50%. You then repay the loan, plus interest and fees, over a set term. Common car title loan terms range from 15 to 30 days, while common finance fees are 25% of the loan amount. For example, if your car is worth $10,000, a lender may offer a $2,500, 30-day loan and charge you a $625 finance fee.
Once the loan is paid off, you get your vehicle title back. However, if you default, the company can take ownership of your vehicle and sell it to recover the amount you owe. In fact, in 2016 the Consumer Financial Protection Bureau found that 1 in 5 borrowers had their cars repossessed after taking out a title loan.
Bad credit alternatives
What if the above bad-credit loans don’t work for you? You can also try the following:
Ask a friend or family member: Consider asking a friend or family member if you can borrow the amount you need. Communicate when you’ll be able to pay it back and follow through to preserve the relationship.
Crowdfund: Crowdfunding platforms like GoFundMe let you create a campaign page and ask others to help you reach a financial goal. This route can work well if you need funds for a specific purpose, like medical treatment, a funeral, or a veterinarian bill.
Sell your belongings: Take inventory of items you own that you don’t need, such as clothing, electronics, kitchen appliances, and outdoor gear. Consider selling them offline by holding a yard sale or online through sites like Craigslist, Facebook Marketplace, eBay, and Poshmark.
Pawn items: You can also take items of value to a pawn shop. The store may offer you an amount of money in exchange for your item. If you repay the amount by the given deadline, you can get your item back. However, a personal loan may be a better option, as pawn shop loans generally have high costs and fees, with some pawn shops charging over 200% APR.
Pick up side work: Look for ways to earn a bit of quick cash on the side from gigs like babysitting, delivering groceries or takeout, or offering to help people in your community with everyday tasks.
To improve your credit score, make all of your payments on time and keep your revolving credit balances low. It also helps to have a mix of installment and revolving credit account types, keep accounts open, and limit new credit applications that require hard inquiries.
If you have negative marks hurting your score, they’ll hold less weight over time and usually drop off after seven years.
A secured credit card can be helpful if you have bad credit because it can help you get back on the credit horse. While you’ll have to put down a cash deposit to gain access to a credit line, if you make on-time payments and the card issuer reports to the credit bureaus, you can build a positive credit record.
If you miss any payments or default, the credit card issuer can use your deposit for reimbursement. For the best results, pay off your balance in full each month before the end of your billing cycle.
What type of loan is easiest to get with bad credit?
Open
The easiest types of loans to get with bad credit are personal loans, cash advances, and PALs. All are accessible to people with less-than-perfect credit who need cash fast. In many cases, you can request funds online and have them in your account as soon as the same day.
Jessica Walrack is an experienced freelance writer who has spent more than 11 years in personal finance, with expertise on loans, insurance, banking, mortgages, credit cards, budgeting, and taxes. Her work has been published by CNN, CBS MoneyWatch, U.S. News & World Report, and USA Today.
