Finding a personal loan when you have bad credit can feel like an uphill battle. Traditional banks often set high credit score requirements, but many online lenders specialize in helping borrowers with less-than-perfect credit. Whether you’re consolidating debt, covering emergency expenses, or financing a big purchase, you still have options.
In this guide, we explore the best personal loans for bad credit in 2025, what to expect, and how to improve your chances of approval.
🔍 What Is Considered Bad Credit?
Credit scores range from 300 to 850, and anything below 580 is usually considered bad credit by lenders. Here’s a quick breakdown:
| Credit Score Range | Rating |
|---|---|
| 800 – 850 | Excellent |
| 740 – 799 | Very Good |
| 670 – 739 | Good |
| 580 – 669 | Fair |
| 300 – 579 | Poor (Bad Credit) |
A low score doesn’t mean you’re out of options—it just means you may need to work with specialized lenders and expect slightly higher interest rates.
✅ Top Personal Loan Providers for Bad Credit (2025)
Here are some of the best lenders known for working with borrowers who have bad credit:
1. Upstart
- Minimum Credit Score: 300
- Loan Amount: $1,000 – $50,000
- APR Range: 6.4% – 35.99%
- Loan Terms: 3 or 5 years
- Funding Time: 1–2 business days
Why it’s good: Upstart uses AI to assess loan applications, meaning your education, job history, and other factors can help you get approved even with a low score.
2. Avant
- Minimum Credit Score: 550
- Loan Amount: $2,000 – $35,000
- APR Range: 9.95% – 35.99%
- Loan Terms: 2 to 5 years
- Funding Time: As soon as the next business day
Why it’s good: Avant caters specifically to borrowers with fair or bad credit and provides fast access to funds.
3. LendingPoint
- Minimum Credit Score: 580
- Loan Amount: $2,000 – $36,500
- APR Range: 7.99% – 35.99%
- Loan Terms: 2 to 5 years
- Funding Time: 1 business day
Why it’s good: LendingPoint is flexible with income verification and has a user-friendly online platform.
4. OneMain Financial
- Minimum Credit Score: No minimum
- Loan Amount: $1,500 – $20,000
- APR Range: 18% – 35.99%
- Loan Terms: 2 to 5 years
- Funding Time: Same day possible
Why it’s good: Offers in-person customer support and doesn’t require a minimum credit score. Great for those who prefer a more traditional lender feel.
5. NetCredit
- Minimum Credit Score: None
- Loan Amount: $1,000 – $10,000
- APR Range: 34% – 155%
- Loan Terms: Up to 5 years
- Funding Time: 1–2 business days
Why it’s good: NetCredit offers small personal loans for extremely poor credit profiles, though rates can be high.
📝 Comparison Table – Best Personal Loans for Bad Credit
| Lender | Min. Credit Score | Loan Amount | APR Range | Funding Time |
|---|---|---|---|---|
| Upstart | 300 | $1,000 – $50,000 | 6.4% – 35.99% | 1–2 business days |
| Avant | 550 | $2,000 – $35,000 | 9.95% – 35.99% | Next business day |
| LendingPoint | 580 | $2,000 – $36,500 | 7.99% – 35.99% | 1 business day |
| OneMain Financial | None | $1,500 – $20,000 | 18% – 35.99% | Same day possible |
| NetCredit | None | $1,000 – $10,000 | 34% – 155% | 1–2 business days |
🧠 Tips for Getting Approved with Bad Credit
Getting approved for a personal loan with bad credit is possible if you approach it strategically. Here are some proven tips:
1. Check Your Credit Report
Before applying, get a free copy of your credit report from AnnualCreditReport.com. Look for errors or outdated information that could be hurting your score.
2. Apply with a Co-Signer
Adding a co-signer with good credit can increase your chances of approval and potentially lower your interest rate.
3. Offer Collateral (If Possible)
Some lenders provide secured personal loans, where you offer a car, savings account, or other assets as collateral. These loans are easier to get with bad credit.
4. Borrow Only What You Need
Smaller loan amounts are easier to get approved for. Don’t borrow more than necessary, especially if your credit is low.
5. Compare Pre-Qualification Offers
Use pre-qualification tools to compare offers without affecting your credit score. This lets you shop for the best rates risk-free.
💰 What to Expect: Interest Rates and Fees
Interest rates on bad credit personal loans can be significantly higher than average. Here’s what you should expect:
| Credit Score Range | Typical APR Range |
|---|---|
| 580 – 669 (Fair) | 15% – 25% |
| Below 580 (Poor) | 25% – 36%+ |
Watch for fees, including:
- Origination Fees (0% – 10%)
- Late Payment Fees
- Prepayment Penalties (rare, but possible)
Always read the fine print and compare Annual Percentage Rate (APR) instead of just the interest rate to get the full cost picture.
📈 How to Improve Your Chances Over Time
Even if you get approved with high interest today, your goal should be to build your credit so you can refinance later or qualify for better rates. Here’s how:
- Pay all bills on time – Timely payments are the #1 factor in your credit score.
- Reduce credit card balances – Keep your credit utilization below 30%.
- Avoid opening too many accounts – Multiple hard inquiries can lower your score.
- Use credit-builder loans or secured cards – These are designed to help rebuild credit.
⚖️ Should You Get a Bad Credit Personal Loan?
Pros:
- Quick access to cash
- Build or improve credit history
- Flexible use of funds
Cons:
- Higher interest rates
- Lower loan amounts
- Risk of getting trapped in a debt cycle
Bottom line: A personal loan for bad credit can be a lifeline if used responsibly. Make sure it aligns with your financial goals and repayment ability.
🛑 Red Flags: Avoid Predatory Lenders
Not all lenders have your best interest in mind. Watch out for:
- No credit check required but extremely high fees
- Unclear repayment terms
- Pressure to sign immediately
- Upfront fees before loan approval
Stick with reputable lenders, read reviews, and ensure the company is licensed in your state.
📚 Final Thoughts
While having bad credit can limit your options, it doesn’t mean you’re stuck. There are plenty of reputable lenders willing to work with borrowers with lower scores—just be prepared to shop around and understand the true cost of borrowing.
By following the tips in this guide, using comparison tools, and taking steps to rebuild your credit, you can make a bad credit personal loan work for you—not against you.
🔗 FAQs – Best Personal Loans for Bad Credit
Q1: Can I get a personal loan with a credit score of 500?
Yes, lenders like OneMain Financial and NetCredit accept applicants with scores below 580.
Q2: Will applying hurt my credit?
Using pre-qualification tools does not affect your credit. A formal application results in a hard inquiry, which may slightly lower your score temporarily.
Q3: Can I pay off a bad credit loan early?
Most lenders allow early payoff without penalties. Check with your lender beforehand.
Q4: What’s the easiest loan to get with bad credit?
Secured personal loans or loans from lenders like Avant and Upstart are among the easiest to qualify for.