A poor credit score or no credit history can make it challenging to find a loan. Traditional lenders and banks may hesitate to approve your application due to your lack of credit. However, there are still options available to you.

In this article, we have hand-picked the top online personal loans for bad credit to help you find a loan that fits your needs. These online lenders have proven track records of working with individuals with less-than-perfect credit and can offer you various bad credit loan options to choose from.

Here is a first look at the best personal loans for bad credit:

  1. BadCreditLoans – Best Bad Credit Loans Overall
  2. Lendfy – Best for Fast Approvals
  3. CashUSA – Best for Installment Personal Loans
  4. FundingFall – Fastest Application Process
  5. LendingPoint – Best for Debt Consolidation Loans
  6. Lightstream – Best for No Origination Fees
  7. Upgrade – Best for Flexible Loan Amounts

7 Best Personal Loans for Bad Credit

Finding a personal loan that meets your needs can be difficult if you have poor credit. However, some lenders specialize in helping borrowers with poor credit secure the financial assistance they need.

This article will list seven of the best personal loans for bad credit. These loan lenders offer competitive rates and flexible terms, even for those individuals with poor credit scores.

BadCreditLoans – Best Bad Credit Loans Overall

Bad Credit Loans is exactly what it sounds like, an online loan marketplace for borrowers with bad credit. They help with personal loans, business loans, debt consolidation loans, student loans, auto loans, and mortgages.


  • Free matching service with no hidden costs
  • Multiple loan options for bad credit borrowers
  • Quick approvals


  • Extensive application form that requires your bank information upfront

Loan Amount

Personal loan amounts range from $500 to $10,000.

>> Check rates at BadCreditLoans


The APR varies depending on the lender. The average rates found through Bad Credit Loans run between 5.99% to 35.99%.

Origination Fee

The origination fees vary by lender.

Term Length

3 – 72 months on average

Loan Verification Steps

To start, you need to fill out a simple online request form. The form will ask for basic information like your name, date of birth, and the reason for the loan. After that, you’ll be asked a few more questions about your employment status and income.

Typically, Bad Credit Loans responds to the applicants shortly after they submit their applications. The bad credit loan company will then evaluate the information and match you with lenders. If you receive and accept a loan offer, the lender will send the money to your bank account within a few business days.


The fact that Bad Credit Loans is an online loan source accessible to those with poor credit or no credit is highly valued by customers. Most customer reviews highlight the platform’s ease of use and the company’s excellent customer support team.


To be eligible for a loan through Bad Credit Loans, you must meet the following conditions:

  • Be a U.S. citizen or permanent resident
  • Be 18 years of age or older
  • Have a consistent source of income
  • Have an active checking account
  • Have a working email address and phone number

Lendfy – Best for Fast Approvals

Lendfy is a lending marketplace with a wide range of loan options for those without a great credit profile.


  • Auto-payment option
  • Charges no fees
  • Fast application process


  • Not much information online

Loan Amount

Lendfy is a referral service that connects borrowers with lenders, so they cannot provide specific loan amounts to customers. However, the lenders they work with typically provide loans between $100 and $10,000 on average.

>> Check rates at Lendfy


Since Lendfy is a referral service, there is no specified APR listed on their site. Rates and fees are ultimately determined by the lender.

Origination Fee

Lendfy does not charge any fees, but your specific lender may charge an origination fee.

Term Length

The lenders at Lendfy tend to offer repayment terms between 12-60 months.

Loan Verification Steps

Lendfy is a marketplace that connects online lenders and borrowers. It is not a direct lender. With that being said, the process of obtaining a loan through Lendfy is straightforward. You will be connected with real lenders who may send you an offer. If approved, you can have your money in less than 24 hours.


There are few reviews for this service because it just started in 2022. Based on the reviews that are available, Lendfy offers fast access to funds and a simple loan application process.


Here are some of the general requirements to apply for a loan at Lendfy:

  • Be at least 18 years old 
  • Have a valid Social Security number
  • Be a U.S. citizen or permanent resident
  • Have a steady source of income
  • Have a valid bank account for deposits and repayment
  • Have a valid telephone number and email address
  • Meet the minimum income requirements

CashUSA – Best for Installment Personal Loans

CashUSA is a loan network that helps to connect bad credit borrowers struggling to find a loan elsewhere. Its many lenders offer competitive interest rates, fair repayment terms, and quick access to loan funds.


  • Available in all 50 states
  • No charges or fees when you apply for a loan
  • Fast access to loan funds once approved 


  • CashUSA is not a direct lender 

Loan Amount

Depending on the lender, loan amounts vary from $500 to $10,000.

>> Check rates at CashUSA


Since CashUSA is an online lending marketplace and not a direct lender, APRs are determined by the lender. On average, rates range from 5.99-35.99%. 

Origination Fee

Similar to the loan amount and APR, each lender has a different loan origination fee.

Term Length

The loan repayment terms on CashUSA range from 90 days to 72 months. 

Loan Verification Steps

To apply for a personal loan on CashUSA, you need to submit an online application on their website. You will answer questions about how you want to use the loan and provide information about your financial background. Most lenders on CashUSA perform a soft credit check during the application process. You may receive an offer if you meet their minimum credit score threshold.


CashUSA has received a lot of positive feedback. The majority of CashUSA customers highlight the platform’s ease of use. Customers also love CashUSA’s extensive lender network for poor credit borrowers. 


To submit a personal loan request on CashUSA, a prospective borrower must meet the following qualifications:

  1. Be a U.S. citizen or permanent resident
  2. Be at least 18 years old
  3. Show proof of employment for the last 90 days 
  4. Meet the minimum annual income requirements 
  5. Have an active checking account 
  6. Have an email address and phone number

FundingFall – Fastest Application Process

FundingFall is an excellent source for personal loans, with an extensive network of bad credit lenders and a straightforward application process. 


  • Extensive network of lenders
  • Simple application process
  • Fast approvals
  • Great customer service


  • Not available in all 50 states

Loan Amount

The site states that loans may be available between $100 to $10,000. The exact amount will depend on the lender’s assessment of your financial situation.

>> Check rates at FundingFall


APRs at FundingFall start at 9%. Your exact rate will be determined by the lender based on various criteria, such as your credit score and state regulations. 

Origination Fee

The lender determines fees, including the origination fee and prepayment penalty.

Term Length

One advantage of working with FundingFall is that you may receive offers from multiple lenders, each of which may offer different term lengths and repayment terms. This allows you to select the most favorable deal.

Loan Verification Steps

FundingFall has a simple application process that should only take you a few minutes to complete. You may need to provide proof of income and employment status. After that, FundingFall will match you with reputable lenders. Once approved, your lender will deposit the funds into your account ASAP. 


FundingFall is known to have a smooth and efficient online loan application process. Plus, the platform is secure with top-notch encryption technology and the customer service team is very helpful. 


To submit a request on FundingFall, ensure that you meet the following requirements:

  • Be at least 18 years old or older
  • Legally live and work in the United States
  • Have a steady source of income
  • Have a bank account in your name
  • Have a valid telephone number and email address
  • Meet the minimum income requirements
  • No active or recent bankruptcies
  • No records of late payments within the last 60 days 

LendingPoint – Best for Debt Consolidation Loans

LendingPoint helps borrowers with fair to poor credit find personal loans. They offer fast funding, flexible payment dates, and a mobile app to manage the loan. 


  • Available in 48 states and Washington D.C
  • No prepayment penalties
  • Quick funding
  • Has a mobile app


  • Does not offer large loan amounts 

Loan Amount

LendingPoint provides unsecured personal loans ranging from $2,000 to $36,500.

>> Check rates at LendingPoint


Rates can range anywhere from 7.99% to 35.99%.

Origination Fee

For the origination fee, Lending Point charges up to 8% of the loan amount.

Term Length

Repayment terms range from 24 to 60 months.

Loan Verification Steps

To start, you need to get pre-qualified on LendingPoint by providing some basic information about your financial situation and the type of loan you want. Next, you will be presented a list of loan offers that you can choose from. Once you have selected the loan that best fits your needs, you can complete the application process by providing additional documentation and information about yourself. If your application is accepted, you will have access to the money within a few business days. 


According to customer reviews, LendingPoint has an excellent customer service team that provides assistance and advice throughout the entire loan applications process. Many reviewers have also noted the speed of funding, with some stating that they received their money within just a few days of applying.


You may be approved by LendingPoint even if you have a limited credit history and have been denied by other lenders. To be considered, you will need to meet the following qualifications:

  • Be at least 18 years old
  • Have photo ID issued by a federal, state or local government
  • Have a valid Social Security number
  • Have a verifiable personal bank account
  • Have a minimum credit score of at least 600

LightStream – Best for No Origination Fees

LightStream offers competitive interest rates and zero fees, making it one of the best lenders for a bad credit loan. 


  • Low interest rates and no fees
  • Easy online application
  • Fast loan approval and funding


  • High minimum loan amount

Loan Amount

Depending on your needs, LightStream offers personal loans ranging from $5,000 to $100,000.


APRs vary depending on the type of loan you get and the lender you work with. With that being said, the average APR on LightStream is currently:

  • Personal Loans: 5.99% to 23.99%
  • Car Loans: 5.99% to 13.74%
  • Car Refinancing Loans: 6.49% to 14.24%
  • Solar Loans: 6.99%-20.74%

Origination Fee

LightStream does not charge any origination fees, prepayment penalties, or late fees.

Term Length

LightStream’s personal loans typically range from 24 to 84 months. 

Loan Verification Steps

Light Stream doesn’t have a typical pre-qualification process. Because of this, potential borrowers must submit a formal application and undergo a hard credit check to know whether they qualify and at what rate. 


According to borrowers, the application process on LightStream is swift and simple. Many customers also love the various loan options and long repayment terms. 


To qualify for a personal loan on LightStream, you must meet the following requirements:

  • Have a minimum credit score of 660
  • Have a long credit history with various kinds of accounts, such as credit cards, car title loans, home equity loans, and mortgages
  • Have a steady source of income
  • Have verifiable identification forms

Upgrade – Best for Flexible Loan Amounts

Upgrade offers personal loans at varying amounts, which is good for consolidating debt and building credit. 


  • Offers flexible loan amounts
  • Has longer loan terms
  • Provides direct payment to third-party creditors


  • $50,000 borrowing limit

Loan Amount

Upgrade’s personal loans often vary from $1,000 to $50,000. 


Personal loans from Upgrade are offered with APRs ranging from 7.96% to 35.97%.

Origination Fee

Upgrade charges an origination fee, which may be between 1.85% and 8.99%.


Upgrade provides loan repayment periods ranging from 24 to 84 months.

Loan Verification Steps

The whole application process at Upgrade can be completed online. Candidates can get approved and receive their funds within 1-4 business days. All you have to do is compare rates, select the loan offer you want, and confirm your identity and income. 


Due to its simple application process and accessibility for borrowers with poor credit scores, Upgrade has great consumer feedback.


While Upgrade’s website doesn’t specifically mention what criteria a borrower must meet in order to be eligible for a personal loan, it does consider things like your credit history, credit score, and credit utilization ratio. Applicants must also meet the following requirements to qualify for a personal loan through Upgrade:

  1. Be a US citizen or permanent resident
  2. Be 18 years old or older
  3. Have a working email address 
  4. Have a personal bank account
  5. Have a minimum credit score of 560

What Is A Personal Loan?

A personal loan is a type of loan available offered by many banks, credit unions, and online lenders. Personal loans can be used for various purposes, like paying for home improvements or covering emergency expenses. These loans typically have fixed interest rates and monthly payments.

Ranking Criteria for Personal Loans with Bad Credit

Before choosing the best bad credit personal loan, you must consider various factors:

Lender Requirements

Lenders have different requirements for approving personal loans. Most will consider your credit score and history, debt-to-income ratio, and source of employment. Since these factors will play a big role in whether the lender approves or rejects you, make sure you meet all requirements before submitting your loan application.

Loan Amount 

Your credit score and history, employment status, and a variety of other factors significantly influence your borrowing capability. The lender reviews your application and financial information and decides what loan amount you qualify for.

Repayment Terms

Every loan comes with different terms, which should be addressed with the lender before accepting the loan. The length of the loan repayment period can affect the overall cost of the loan, making this an important factor to think about.

Interest Rate

The interest rate will have the biggest impact on the cost of a personal loan. Compare different lenders and choose a low-rate loan to save money on interest.

Speed of Funds

Quick access to funds can be an important factor for borrowers, especially if they have pressing financial needs or emergencies.

Application Process

When searching for a loan, it’s important to find a lender with an easy application process to save time and make the process as smooth as possible. This can help you get a quick decision on your loan request. An easy application process can be especially useful if you have pressing financial needs or are short on time and can help reduce stress and frustration when applying for a loan.

Steps for Getting a Personal Loan for Bad Credit

Even if you have bad credit, you can still get approved for a personal loan.

Follow the steps below to get a personal loan for bad credit:

  1. Check Your Credit Score: Check your credit score and credit history before applying for a personal loan. These vital factors will determine whether you’ll be approved for a loan and at what interest rate.
  2. Compare Your Loan Options: It’s important to shop around and compare different lenders to get the best loan offer possible. Several loan types are available as well, some of which are better suited to applicants with low credit scores. Unsecured loans and payday loans are examples of loans designed for bad credit borrowers.
  3. Get Pre-Qualified: When applying for a personal loan with bad credit, getting pre-qualified with various lenders is an essential step in the process. By comparing rates and loan terms once pre-qualified, you will have a clearer idea of what you are eligible for.
  4. Find a Cosigner: A cosigner is another option to boost your chances of getting approved for a personal loan. It’s important to look for someone who has strong credit on their own and someone you get along with and can trust. Your cosigner will be liable for making the payments if you default on the loan or fall behind.
  5. Apply for Bad Credit Personal Loans: Lenders will ask for personal and financial information when applying for a personal loan. This may include your name, date of birth, and Social Security number, as well as proof of income, employment, and residency.

Rates & Fees of Personal Loans for Bad Credit 

There are several rates and fees to consider when applying for bad credit personal loans. These include:

  • APR: The Annual Percentage Rate (APR) is the yearly interest imposed on a loan.
  • Interest Rate: The cost of borrowing money (expressed as a percentage of the loan amount).
  • Origination Fee: Some lenders charge an origination fee to cover the cost of processing the loan. This is usually a percentage of the loan amount that is deducted from the loan proceeds.
  • Late Fees: If you make a payment after the due date or miss it altogether, you may be charged a late fee.
  • Prepayment Penalty: Some lenders will charge a prepayment penalty if you pay off the loan early. Be sure to check for any prepayment penalties before taking out a loan.

Main Requirements for Getting a Personal Loan

The specific requirements for getting a personal loan will vary based on the lender, but here are some general qualifications that you may need to meet:

  • Credit Score and History: Most lenders will review your credit score and credit history when evaluating your personal loan application. Credit scores, which vary from 300 to 850, are determined by variables like payment history, outstanding debt, and credit utilization. Generally speaking, the higher your credit score, the better your chances of getting approved for a personal loan and the more favorable the terms will be (i.e., interest rate, loan amount, and repayment terms). Some lenders may lend to applicants with a low credit score or no credit history at all.
  • Income and Employment Criteria: To ensure that bad credit borrowers have the resources to repay a new loan, lenders have income and employment requirements. Most will want to see proof of steady employment and income. This may include pay stubs, tax returns, or other financial documents.
  • Debt-to-Income Ratio: Many lenders will also look at your debt-to-income ratio, which is a measure of how much debt you have compared to your income. It is calculated by dividing your total monthly debt payments by your total monthly income. If you have a lower debt-to-income ratio, it may improve your chances of getting a personal loan – even if you have a fair to low credit score. 
  • ID & Personal Information: Your lender may ask for a number of documents to verify your identity. You may need to provide a government-issued ID, such as a driver’s license or passport, when it’s time to formally apply for a personal loan. Additionally, you will likely need to provide your Social Security number in order to get a personal loan. This proves that you are a U.S. citizen or have permanent residency in the U.S. 
  • Age: To qualify for a personal loan, most states require you to be at least 18 years old. 
  • Active Bank Account: Most lenders will require you to have an active checking or savings account. That way, you can easily receive the loan proceeds and make your payments on time. 
  • Proof of Address: Many lenders also want to verify that you are a resident of the state where you are applying for a personal loan. In order to do this, you may need to present evidence of your residence. This can be done with a utility bill, copy of your lease, rental loan agreement, or other documentation that includes your address.
  • Collateral: Secured personal loans may require collateral, such as a car or savings account, in order to get the loan. Unsecured personal loans do not require any collateral. 

Things to Avoid When Getting a Personal Loan for Bad Credit

Before choosing a lender and accepting an offer, there are a number of factors to take into consideration. Here are some common things to avoid when getting a personal loan for bad credit: 

  • Payments: Different lenders have different repayment terms, which ultimately determine your monthly payments. Select the option that best fits your budget, whether that’s a longer or shorter repayment term. Long repayment terms have lower monthly payments and seem more attractive at first glance, but they can ultimately cost more in the long run due to the added interest charges. If you can afford a shorter repayment term, go for that instead.
  • High Rates & Fees: Personal loans for bad credit may come with higher fees and interest rates. Be sure to compare the Annual Percentage Rate (APR) and fees across many different lenders to find the best one. 
  • Terms & Conditions: Do not ignore the fine print before accepting a personal loan. Your interest rate, loan amount, and repayment period will all be stated in the loan terms. Be sure to read them carefully and understand the terms and conditions completely. This will help you avoid any surprise fees or charges later down the road. 
  • Multiple Lenders: When searching for a loan, it’s important to shop around and compare offers from multiple lenders to find the best deal. Different lenders may have different interest rates, fees, and loan terms, so it’s important to consider all of your options before making a decision. By finding multiple lenders and comparing their offers, you may be able to save money on interest and fees. 
  • Company Reputation & License: It is important to choose a loan lender that is reputable and operates legally. Some lenders may have a history of unethical lending practices, which can be harmful for borrowers. Always work with a lender that is licensed and regulated to minimize risk. By doing sufficient research and only working with reputable and licensed lenders, borrowers can better protect themselves from potential financial harm.
  • Suspicious Activity: When searching for a loan, it’s important to be vigilant and take note of any suspicious activity when it comes to a lender. Pay attention to red flags and be cautious of any lender who asks for money before approving a loan. Some common signs of suspicious activity include unsolicited offers, requests for upfront fees, or pressure to make a decision quickly. If you have any doubts or concerns about the legitimacy of a loan offer, it’s always a good idea to do your own research and seek advice from trusted sources before making a decision.
  • Poor Credit Cosigners: If you need a cosigner to get approved for a personal loan, be sure to choose an individual who has a good credit score. A cosigner with poor credit could hurt your chances of getting approved or result in a higher interest rate. 

Types of Loans For Bad Credit

There are several different personal loan options to consider when taking out a loan with bad credit. Not all of these options are personal loans designed for bad credit borrowers. The types of loans available to you may depend on your credit score and other factors, such as your income and debt-to-income ratio. 

Please note that personal loans for bad credit may have higher interest rates and fees compared to loans for people with good credit. It’s important to carefully compare the terms and conditions of different loans to find the one that best meets your needs and budget. 

It’s also a good idea to improve your credit score before taking out a loan, as this makes it easier to qualify for favorable terms. I you need money right away, below are different loan types for bad credit borrowers: 

Unsecured Loans:

You are not required to use any collateral to back an unsecured personal loan. This means that the lender doesn’t have security to help cover the loss if you don’t pay back the loan. Since an unsecured loan takes on greater risk, lenders frequently have stricter loan conditions and higher interest rates for these types of loans. 

Secured Loans:

A secured loan is a type of loan that is secured by an asset that you offer as collateral. With a secured loan, the lender may lawfully seize the asset if you fail to make your payments. For people with bad credit, a secured loan is harder to get approved for. 

Payday Loans:

A payday loan is a type of short-term, high-interest loan that is typically due by your next payday. When applying for a payday loan, you will likely need to provide a pay stub, as the amount you’re eligible to borrow largely depends on your income. Payday loans are one of the most costly borrowing options due to their high APRs and strict terms.

Installment Loans:

An installment loan lender gives you the money all at once, and you repay the loan over the course of the specified repayment terms. You will pay the same set amount each month until the debt is repaid in full. Each monthly payment goes toward the loan principal and the amount of interest owed. 

Cosigned Loans:

Some lenders may approve a loan to someone with a bad credit score provided another person with better credit or higher income can cosign the loan. If the principal borrower defaults on the loan, the cosigner is legally obligated to pay it back. A cosigned loan often has a lower interest rate than one taken out by a single borrower with bad credit.

Best Personal Loans for Bad Credit FAQs

Here are some of the most frequently asked questions for bad credit personal loans.

How Are Loans For Bad Credit Mainly Used?

Personal loans for bad credit can be used in many ways. For example, a borrower may take out a loan for debt consolidation, home repairs/improvements, emergency bills, small business costs, wedding expenses, etc. 

Is There A Way To Borrow an Instant Personal Loan With a Bad Credit Score?

Yes, there is a way to borrow an instant personal loan with a bad credit score. While it may be more difficult to find lenders willing to offer loans to bad credit borrowers, it’s definitely possible. In fact, some lenders specialize in helping borrowers with bad credit secure loans, and it may be possible to find an instant personal loan with these lenders.

What Is Supposed To Be A Bad Credit Score?

A credit score of 600 or lower is typically considered a bad score, while a score of 700 or above is considered good. Even if you have a low credit score or no credit history, you may be able to get a personal loan with an online lender. 

What Is The Best Way To Get A Small Personal Loan?

The best way to get a small personal loan is to shop around and compare different lenders. The online lending marketplaces mentioned in this article are all great places to get started. They work with multiple lenders, helping you find the best loan offer with the most favorable terms. 

Is It Possible To Get An Online Loan For Bad Credit Without A Credit Check?

While most lenders require a credit check, getting an online loan for bad credit is possible without a credit check. Remember that no credit check loans tend to come with high-interest rates and fees.

What Items Can Be Offered as Collateral for a Personal Loan?

A vehicle, jewelry, savings account, investment account, and owned property can be offered as collateral for a personal loan.

Disclaimer: Please note that this article is for informational purposes only and should not be considered financial, legal, or professional advice. Do your own research and due diligence before making any decisions related to personal loans. Additionally, the information provided is intended for individuals 18 years of age or older.