Having bad credit doesn’t mean you’re out of options when it comes to borrowing money. Whether you’re dealing with past financial mistakes, medical bills, or unexpected emergencies, there are lenders willing to work with you. The key is knowing where to look.
Personal loans for bad credit are designed to help borrowers with low credit scores access the funds they need—without falling into predatory traps like payday loans. These loans can offer flexible terms, fixed interest rates, and a path to rebuilding your credit.
The U.S. lending market includes several reputable institutions and online platforms that cater to borrowers with credit scores under 600. Below, we’ll explore the best lenders for personal loans for bad credit and what makes each one worth considering.
What to Look for in a Lender for Bad Credit
Not all lenders are created equal—especially when your credit is less than perfect. Some prey on vulnerable borrowers by offering sky-high interest rates, hidden fees, or unfair repayment terms. That’s why it’s essential to evaluate lenders based on transparency and trust.
Good lenders will offer clear loan terms, reasonable interest rates (for the risk level), and no prepayment penalties. They may also report your payments to credit bureaus, which can help you improve your credit score over time.
You should also prioritize lenders that allow prequalification. This lets you see your estimated interest rate and loan terms without impacting your credit score. It’s a risk-free way to shop around and compare offers before making a decision.
OneMain Financial: Best for In-Person Support
OneMain Financial is one of the oldest and most established lenders in the U.S., with branches nationwide. They specialize in working with borrowers who have poor or fair credit and even offer secured loan options if you need help qualifying.
Loan amounts range from $1,500 to $20,000, with repayment terms between 24 and 60 months. Interest rates tend to be higher than average—often starting around 18%—but approvals are more accessible than with traditional banks.
OneMain is ideal for people who want a human touch during the loan process. If you prefer face-to-face service or need help understanding the terms, visiting a local branch can provide peace of mind.
Upstart: Best for Limited Credit History
Upstart is an online lender that uses artificial intelligence to assess borrowers, making it an excellent choice if you have a short credit history or low score but strong income or education. It looks beyond FICO scores and considers your potential.
Loan amounts range from $1,000 to $50,000, with APRs between 6.5% and 35.99%. The application process is quick, and funds can be deposited in as little as one business day after approval.
Upstart is especially good for young professionals or gig workers with limited credit but strong earning potential. It’s one of the most innovative platforms for non-traditional borrowers looking to get back on track.
Avant: Best for Fast Funding and Flexible Criteria
Avant focuses specifically on borrowers with poor to average credit scores, typically between 580 and 700. They offer unsecured loans from $2,000 to $35,000, with repayment terms from 12 to 60 months.
While interest rates can range from 9.95% to 35.99%, Avant has a strong reputation for fast processing, with next-day funding available. Their website is simple to use, and they’re known for solid customer service.
Avant is ideal if you need quick access to funds and want to work with a lender that understands the unique challenges of bad credit. Plus, they report to all three major credit bureaus, helping you rebuild credit.
LendingPoint: Best for Fair Credit and Mid-Range Loans
If your credit score is climbing into the 600+ range, LendingPoint could be a great option. They serve borrowers with credit scores as low as 580 and place emphasis on income and employment history instead of just credit metrics.
LendingPoint offers loans from $2,000 to $36,500, with repayment terms of 24 to 72 months. Their interest rates range from 7.99% to 35.99%, depending on your financial profile and the state you live in.
The prequalification process is soft-pull and takes just minutes. LendingPoint also stands out for its fast funding—often within one business day—and a reputation for transparency and reliability.
Upgrade: Best for Debt Consolidation
Upgrade is an online lending platform geared toward personal loan borrowers looking to consolidate high-interest debt. It offers fixed-rate personal loans ranging from $1,000 to $50,000, even to those with lower credit scores.
Borrowers need a minimum score of around 580 to qualify, and APRs typically fall between 8.49% and 35.99%. One great feature is that Upgrade allows direct payment to creditors, simplifying the debt consolidation process.
This makes Upgrade an excellent choice for borrowers seeking to get a handle on credit card debt or multiple outstanding loans. Their intuitive platform, fast approvals, and robust mobile app enhance the borrowing experience.
OppLoans: Best for No Credit Check
OppLoans is a short-term lender that works with people who have very poor credit or no credit history at all. Instead of doing a hard credit check, they verify your income, employment, and bank activity.
Loan amounts range from $500 to $4,000 with repayment terms of up to 18 months. While the APR can be high—often above 100%—it’s still significantly better than payday loans and offers a clear path to repayment.
OppLoans should be a last-resort option for people who are truly shut out of traditional lending. If used responsibly, it can provide temporary relief and may help build credit, as payments are reported to the bureaus.
Tips for Getting Approved with Bad Credit
To improve your chances of loan approval with bad credit, focus on reducing your debt-to-income ratio. Pay off small debts, avoid applying for multiple loans at once, and gather all your income documentation before applying.
If possible, consider a secured personal loan. By offering collateral, such as a car or savings account, you reduce the lender’s risk and may qualify for better terms even with a low credit score.
You can also look into applying with a co-signer. A co-signer with good credit can help you qualify for a lower rate. Just be aware that if you miss payments, their credit will be affected too.
What to Avoid
Be cautious of payday lenders or cash advance apps with vague terms. These may trap you in a cycle of high-interest borrowing. Always check for hidden fees, origination charges, and whether the lender reports to credit bureaus.
Never agree to a loan without reading the fine print. If a lender doesn’t disclose the APR, total repayment amount, or payment schedule clearly, it’s a red flag. Stick to lenders with strong reviews, licenses, and clear policies.
Also, avoid borrowing more than you need. Larger loan amounts may seem tempting but can lead to unmanageable payments—especially at higher interest rates.
Conclusion
Bad credit doesn’t have to mean no credit. Many trustworthy lenders in the U.S. specialize in personal loans for people with less-than-perfect scores, and they can offer real help during financial emergencies or for consolidating debt.
The key is to choose a lender with transparent terms, reasonable rates, and a track record of working with borrowers like you. Whether you opt for Avant, LendingPoint, Upstart, or another reputable provider, always borrow with a clear repayment plan.
With responsible use, a personal loan for bad credit can be more than just a financial lifeline—it can be your first step toward rebuilding your credit and achieving long-term stability.
