Best Personal Loans for Bad Credit: How To Compare Offers
Having bad credit doesn't automatically prevent you from getting a personal loan. Some lenders allow you to prequalify without a hard credit inquiry, making it easier to compare your options. Before choosing a loan, compare the monthly payment, interest rate and any fees. Here's a guide to the best personal loans for bad credit.
MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms and fees from different lenders and choose the best offer for you.
Key Takeaways
The best personal loans for bad credit come from lenders that look beyond your score. Options exist for fair and poor credit, with loan amounts ranging from a few hundred dollars up to $75,000.
Prequalifying with several lenders lets you compare rates without hurting your score. Soft credit pulls used for prequalification don't affect your credit, unlike the hard inquiry at final application.
Annual percentage rates (APRs) matter more than the interest rate alone when comparing loans. APR folds in origination fees and other mandatory charges, so it reflects your true borrowing cost.
Watch for red flags that can signal a personal loan scam. Guaranteed approval with no credit check, upfront fees before funding and pressure to act fast are warning signs.
Summary generated by AI, verified by MoneyLion editors
Best Personal Loans for Bad Credit
The best lender for you depends on how much you need to borrow, how quickly you need the funds and whether you're applying with fair or poor credit. Compare some of the top lenders below.
Lender | Best For | Loan Amount | APR Range |
|---|---|---|---|
Happen Bank | Borrowers who want a co-borrower option and higher loan amounts | Up to $75,000 | 5.96% to 35.99% |
Avant | Borrowers who need a fast lending decision | $2,000 to $35,000 | 9.95% to 35.99% |
OneMain Financial | Borrowers who want the option to secure their loan with collateral | $1,500 to $30,000 | 11.99% to 35.99% |
Personalloans.com | Borrowers who want to compare multiple lenders with one application | $250 to $35,000 | 5.99% to 35.99% |
NetCredit | Borrowers who need a smaller emergency loan | Up to $10,000 | 34.99% to 99.99% |
Rise | Borrowers who have exhausted other borrowing options | $500 to $5,000 | 60% to 299% |
LendingPoint | Borrowers who want more repayment flexibility | $1,000 to $36,500 | 7.99% to 35.99% |
Upstart | Borrowers with limited credit history seeking larger loan amounts | $1,000 to $75,000 | 6.20% to 35.99% |
Prosper | Borrowers with fair credit who want to apply with a joint borrower | $2,000 to $50,000 | 8.99% to 35.99% |
Happen Bank
Happen Bank, formerly known as LendingClub, is an online lender where the application process takes just a few minutes.
Standout feature: Co-borrower option available
Loan amount: Up to $75,000
Origination fee: 0% to 8%
Avant
Avant offers personal loans for a variety of borrowing needs.
Standout feature: Fast application decisions
Loan amount: $2,000 to $35,000
Origination fee: Up to 9.99%
OneMain Financial
OneMain Financial considers more than just your credit score during the application process.
Standout feature: Offers secured personal loans
Loan amount: $1,500 to $30,000
Origination fee: 1% to 10%
Personalloans.com
Personalloans.com boasts that its technology can evaluate your personal loan needs and connect you with the ideal lender for your circumstances.
Standout feature: Marketplace that matches borrowers with different lenders
Loan amount: $250 to $35,000
Origination fee: Varies by lender
NetCredit
NetCredit doesn't just offer personal loans for poor credit. It provides financial education tools you can use to improve your credit and create a loan that fits your needs.
Standout feature: Offers smaller emergency loan amounts
Loan amount: Up to $10,000
Origination fee: Not disclosed on website
Rise
Rise positions itself specifically as an alternative to high-interest payday loans for people with low credit and a short-term financial crunch.
Standout feature: Payday loan alternative
Loan amount: $500 to $5,000
Origination fee: None
LendingPoint
LendingPoint offers up to $36,500 and a next-day deposit on its loans in addition to the option of breaking your monthly payments up into bimonthly payments to make them more manageable.
Standout feature: Biweekly payment options
Loan amount: $1,000 to $36,500
Origination fee: Up to 10%
Upstart
Upstart claims to look at its customers as more than just a credit score, incorporating other elements like education and experience into your final rate.
Standout feature: Considers other details beyond credit for approval
Loan amount: $1,000 to $75,000
Origination fee: Up to 12%
Prosper
Prosper offers APRs as low as 8.99%, immediate approval with funds available within a few business days and a maximum loan amount of $50,000.
Standout feature: Joint borrower applications
Loan amount: $2,000 to $50,000
Origination fee: 1% to 9.99%
What To Look for in a Bad Credit Personal Loan
Many may focus solely on the interest rate when considering a loan, but that isn’t the only factor. Here’s a checklist of what to look for:
Origination fee: Many lenders will charge an upfront processing fee. This amount will be deducted from your loan balance.
Prepayment penalties: Check if your lender will charge you for paying off your loan early. If there is, you may want to go with another lender.
APR: This is a key number that not only includes your interest but also any mandatory fees.
Soft prequalification: Find out if the lender offers a way for a soft pull on your credit.
Repayment flexibility: Make sure that the repayment plan is flexible and affordable for you.
Lender legitimacy: Verify that the lender is licensed and has a verifiable address.
How To Apply for a Bad Credit Personal Loan
Applying for a bad credit personal loan takes just a few steps. Here's how the process typically works.
Check your credit reports: It’s best to know your credit score ahead of time and also to double-check if there are errors that you need to correct.
Prequalify with multiple lenders: Prequalifying doesn’t hurt your credit and so it’s a good idea to see your estimated rates and terms with multiple lenders.
Gather your documentation: You’ll need a government ID, proof of income and address, as well as your Social Security number.
Compare your APRs: Don’t just compare your monthly payment, but also review your APR so you’re aware of your total costs.
Submit the loan application: Apply online or in person to get approval.
Review the terms before signing: Once you get approval, make sure you review the terms before signing the documentation.
Types of Bad Credit Personal Loans
Not every bad credit personal loan works the same way. Compare the options below to understand how each one works and who it's best for.
Loan Type | How It Works | Best For | Risk Level |
|---|---|---|---|
Unsecured personal loan | • Approval based primarily on your credit • No collateral needed • Higher interest rates | Borrowers with limited assets who need funding | Medium |
Secured personal loan | • Collateral required • Lower interest rates | Borrowers with collateral who want better approval odds | Medium |
• Loan funds are held in a locked account • When loan is paid, you receive the funds | Borrowers who want to establish or rebuild credit | Low | |
Payday loan | • Full repayment is due on your next pay date | Borrowers with no other borrowing options | Very high |
Cash advance | • Borrow against your available credit card limit • Interest usually begins immediately | Borrowers who need short-term emergency funds | High |
Peer-to-peer (P2P) loan | • Loan funded through an online lending platform • Approval may consider more than your credit score | Borrowers with stable income who don't qualify through traditional banks | Medium |
Co-signed personal loan | • A co-signer shares responsibility for the loan • May improve your approval odds | Borrowers with limited credit who have a qualified co-signer | Medium |
Watch Out for These Red Flags
Not every loan offer is a good one. Watch for these warning signs before you borrow.
You receive guaranteed approval without a credit check.
You pay upfront fees without receiving funds.
There is no verifiable address information.
There is pressure to act immediately.
There are missing loan terms.
Alternatives If You Can't Qualify for a Bad Credit Personal Loan
Before getting a bad credit personal loan, consider whether one of these alternatives better fits your borrowing needs.
Option | How It Works | Best For |
|---|---|---|
Credit union loans | Member-owned institutions that typically offer lower rates and more flexible underwriting than banks | Borrowers with fair or poor credit who qualify for membership |
0% intro APR credit card | Eligible purchases or balance transfers carry no interest during the promotional period | Borrowers who can repay the balance before the promotional rate ends |
Buy now, pay later (BNPL) | Splits a purchase into installments, often with no interest for short terms | Borrowers financing a specific purchase |
Borrowing from family or friends | You request money from friends and family | Borrowers with a trusted friend or family member |
Nonprofit credit counseling or debt management plan (DMP) | A certified counselor negotiates with creditors to consolidate debt payments into one monthly plan | Borrowers managing multiple high-interest debts |
Employer paycheck advance | Employers may allow you to access earned wages through HR or a third-party app | Borrowers facing a short-term cash shortage |
Local assistance programs | Government agencies, charities and nonprofits may help cover essential expenses such as rent, utilities or medical bills | Borrowers facing a specific financial hardship |
Next Steps
As you navigate the next steps to get your personal loan, here’s what you want to keep in mind:
Pull your credit report first: Find and correct errors before applying.
Try to prequalify with at least three lenders: You want to compare your rate with multiple lenders to have a good idea of where you’ll get the lowest rate.
Calculate your cost: Consider the origination fee and the APR to calculate the total cost.
Review the full agreement: Read all the fine print before signing the loan.
Bad-Credit Personal Loan FAQs
Still sorting out how you can borrow when your credit needs some work? Here are answers to the questions people ask most before they apply.
What credit score do I need to get a personal loan?
There's no universal minimum, but many bad-credit lenders work with lower scores, while the best rates usually go to higher-scoring borrowers.
Does applying for a personal loan hurt my credit score?
Applying for a personal loan can temporarily hurt your credit score due to a hard inquiry being run.
What's a good APR for a bad credit personal loan?
Rates for bad-credit borrowers often run from 20% to well over 100%, depending on the lender and loan type.
Can I get a personal loan with a 500 credit score?
You may be able to get a personal loan with a 500 credit score, but the options are limited. You might consider a bad credit specialty lender or a credit union to secure a loan.
What's the difference between a secured and unsecured personal loan?
A secured loan requires collateral in case you default. You’ll likely get a lower interest rate.
An unsecured loan doesn’t require collateral but you’ll likely pay a higher interest rate.
How do I know if I'm being scammed by a fake lender?
Some red flags include requiring upfront fees before receiving funds, no verifiable address information, approval without a credit check and the pressure to act immediately.
Key Terms
APR: The yearly cost of a loan including interest plus mandatory fees, which makes it the best single number for comparing offers.
Origination fee: An upfront charge some lenders deduct from your loan proceeds to process the loan.
Hard inquiry: A lender's credit check when you formally apply, which can temporarily lower your score.
Soft inquiry: A credit check used for prequalification or prescreening that doesn't affect your score.
Prequalification: A lender's early estimate of the rate and terms you may receive, usually based on a soft pull that doesn't hurt your credit.
Secured personal loan: A loan backed by collateral such as a car or savings, which can improve approval odds but puts the asset at risk if you default.
Credit-builder loan: A loan whose funds are held in a locked account and released after you finish paying, helping you establish or rebuild credit.
Summary generated by AI, verified by MoneyLion editors
Sources
Consumer Financial Protection Bureau. 2024. "Do personal installment loans have fees?"
Consumer Financial Protection Bureau. 2025. "What is a FICO score?"
Consumer Financial Protection Bureau. 2024. "What is the difference between a loan interest rate and the APR?"
Consumer Financial Protection Bureau. 2025. "What is a credit inquiry?"
Joel Anderson contributed to the reporting for this article.
Data is accurate as of July 14, 2026, and is subject to change.
Photo Credit: Izabela Habur / Getty Images
Similar Posts
Disclosures
MoneyLion does not provide, own, control or guarantee third-party products or services accessible through its Marketplace (collectively, “Third-Party Products”). The Third-Party Products are owned, controlled or made available by third parties (the "Third-Party Providers"). Should you choose to purchase any Third-Party Products, the Third-Party Providers’ terms and privacy policies apply to your purchase, so you must agree to and understand those terms. The display on the MoneyLion website, app, or platform of any of a Third-Party Product or Third-Party Provider does not-in any way-imply, suggest, or constitute a recommendation by MoneyLion of that Third-Party Product or Third-Party Financial Provider. MoneyLion may receive compensation from third parties for referring you to the third party, their products or to their website.
This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, MoneyLion does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information. For more information about MoneyLion, please visit https://www.moneylion.com/terms-and-conditions/.