Loans for Bad Credit
Check offers in seconds
Get pre-qualified for loan offers with an easy online form
Won't impact your credit
Checking offers will not impact your credit score
Competitive payment options
Funding up to $100,000 and APRs as low as 6.24%1
Receive funds quickly
Get Bad Credit Loans Online Easily
Loans for bad credit may be hard to find or expensive, but with a little effort on your end, you should be able to secure a loan. Personal loans for bad credit are not always recommended but in some cases, you may have no choice. Expenses never go away. Sometimes it seems like just when you have finished paying for one thing, another item pops up. You may have missed some payments and now have a bad credit score or maybe you have always had a bad credit score. Whatever your situation is, individuals with bad credit may still need to borrow money.
Quick. Simple. Secure.
How To Apply For Loans for Bad Credit
Fill out an easy online form to check for pre-qualified offers with no impact to your credit score
Compare terms and payment options to select the offer that’s best for you
Complete your application on your selected lender’s website
After your loan is approved, your funds should arrive within 1-2 business days2
COMPARE RATES FROM TOP LENDERS
“The process couldn’t have been any easier. I filled out a short form that took me less than 2 minutes and within seconds I got multiple offers from lenders.”
- Mike T. (TN)
“It was important to me that I could review my offers without any impact to my credit score, before deciding on the best loan option.”
- Carol R (FL)
“I like the easy online and 100% paperless experience of Acorn Finance. I received my money two days after completing my application.”
- Bob S (WI)
Are you a contractor?
Generate more revenue with Acorn Finance.
Offer customers the ability to finance their dreams with zero dealer fees.
FREQUENTLY ASKED QUESTIONS
Learn More About Loans for Bad Credit
Bad credit is not something most lenders like to see, so can you get a loan with bad credit? What type of loan can you get? Where can you get a loan if you have bad credit? These are all great questions. Keep reading to get the answers!
Read more - FAQ
Best Personal Loans for Bad Credit 2022
Trying to obtain a personal loan when you have bad credit can sometimes be a frustrating experience. Depending on your credit score, some banks or lenders may not even consider your loan application or it would be a waste of your time to apply and it could adversely affect your credit score to do so. However, do not be discouraged. Depending on your credit score, there are still plenty of loan options available. Some lenders specialize in working with bad credit borrowers, or they have ways to help people with bad credit qualify for a personal loan. For example, some lenders may allow a borrower to add a co-signer or co-borrower or to secure a loan with collateral to increase their chances of qualifying. There are many options for bad credit loans out there, however, if you are looking for a bad credit loan through an online lender, then you may want to know which lenders provide the best opportunities for bad credit borrowers to get the money they need.
Below is a list of the online lenders that provide the best personal loans for bad credit in 2022.
Upgrade – 560 minimum credit score
Top pick for: bad credit personal loans
Qualifications Needed: Upgrade only requires a minimum credit score of 560 for personal loans that range from $1,000 to $50,000. Loan terms can span anywhere from 3 to 7-years.
Quick approval and funding
Lower credit score requirements
Higher APRs and origination fees
Why choose: Upgrade has one of the lowest minimum credit score requirements on the market. If you have bad credit, start here.
OneMain – 600 minimum credit score
Top pick for: Borrowers with less than perfect credit that need fast funding
Qualifications Needed: OneMain Financial requires a minimum credit score of 600 for personal loans that range from $1,500 to $20,000. Loan terms span anywhere from 3 to 5-years.
Lower credit score and income requirements
A high origination fee of up to 10% or $500 flat fee depending on where you live
Why choose: If you only need a small amount of money, OneMain has loans as little as $1,500
Best Egg – 600 minimum credit score
Top pick for: fair credit personal loans
Qualifications Needed: BestEgg requires a minimum credit score of 600 for 3 and 5-year loans for amounts between $2,000 to $50,000.
Fast approval and funding
Good customer experience
Charges an origination fee of up to 6.99%
Why choose: BestEgg is a good lender for people who think customer service is very important and that they deserve to have a good customer experience.
Prosper – 600 minimum credit score
Top pick for: peer-to-peer loans $40,000 and below
Qualifications Needed: Prosper offers 3 and 5-year loans for amounts between $2,000 and $40,000, for borrowers with a credit score of 600 or above.
Loan amounts of up to $40,000 available
Longer approval and funding times than other lenders
Why choose: Prosper may be a good site to check out for borrowers who want to support the peer-to-peer lending market.
LendingPoint – 600 minimum credit score
Top pick for: fair credit personal loans with fast funding
Qualifications Needed: LendingPoint requires a minimum credit score of 600 and a minimum income of $30,000/year to qualify for 2 to 4-year loans for amounts between $2,000 and $25,000.
Perfect lender for smaller two-year loans
Lower credit score requirements
Fast approval and funding
Charges an origination fee of up to 6%
Why choose: If you are looking for a quick 2-year loan for a small amount of money, LendingPoint offers fast approval and funding and they may be the best lender for you.
How do you apply for a bad credit loan?
A bad credit loan is typically a shorter-term loan for a smaller amount that may give a bad credit borrower access to some much-needed financial relief to hopefully help them pay off some debts, cover an emergency expense, and ideally, build up their credit score in the process. Any time you take on a new line of credit, you may see some dip in your credit score, however, as you continue to make your payments on time and in full each month, you can hopefully start to see that credit score increase over time. So, how does one apply for a bad credit loan?
The first thing you need to do is decide where you are going to try to obtain a bad credit loan and what loan method you are going to pursue. Some options for places to get a bad credit loan may include a credit union, from a friend or family member, a peer-to-peer or micro-lender, an online lender, your personal bank, or a cash advance from your credit card company. Some of the loan methods you may want to consider include a personal loan with or without a cosigner or co-borrower, a home equity loan or a home equity line of credit, a cash advance, a 401k loan, a payday loan, or a title loan. If you have some personal property that has some significant value, like gold, silver, diamonds, jewelry, collectibles, etc. you may even consider using a local pawn shop. Some options and places may be better than others, however, it is important to know that if you have bad credit and you need money, there are still plenty of options available to you.
Once you decide where and how you want to apply for a bad credit loan, you need to research how the loan process works for your method of choice. It may also be helpful to check out a few different options so you can compare and contrast both the advantages and disadvantages of each choice. We are not going to break down every option available for a bad credit loan, however, let us just take a quick look at a couple of options.
Personal loans: Personal loans are a bad credit loan option available to bad credit borrowers depending on the lender and how bad a person’s credit score actually is. Some lenders offer personal loans to borrowers with credit scores as low as 560, however, most lenders require at least a minimum credit score of 600 or more. If you have a credit score below 560, then you may be able to find a lender who will let you add a co-borrower or a co-signer onto the loan to help you qualify. Personal loans are offered through banks, credit unions, and online lenders. If you have bad credit, you may want to check with your bank or credit union that may offer small personal installment loans if you have direct deposit. They may be able to loan you a small amount of money with the promise of taking a certain percentage of your payroll direct deposit. If not, then online lenders tend to be a little more forgiving when it comes to providing bad credit loans to borrowers in need. Just understand that bad credit loans come with some of the highest interest rates available on the lending market. If you are looking for a bad credit loan through an online lender, the best thing you can do is to prequalify. Once you prequalify, you can see how much you may be able to borrow and how much you are going to have to pay in order to have access to those funds. At Acorn Finance you can check personal loan offers from top national lenders without impacting your credit score.
Home equity loan or HELOC: Depending on how bad your credit is, you could still qualify for a home equity loan or HELOC if you have a substantial amount of equity built up into your home. If you have a crazy amount of equity in your home, some lenders may be able to be more forgiving when it comes to a credit score since you are using your equity and your home as collateral to secure the loan.
Credit card cash advance: Credit card cash advances tend to be expensive, however, if you have bad credit and you need a quick cash infusion, then a credit card cash advance may be worth the cost. Especially if you plan on paying off the entire amount within 30 or 60-days. The reason being is that you do not need to re-qualify for a credit card cash advance. The credit limit is already there for you to use, and if you have enough left, you can get a cash advance to cover any emergency expenses you need with no impact on your credit score.
Payday loan, title loan, pawnshop: These three finance options may be considered undesirable and you should avoid them if at all possible, however, they do provide cash in hand on the spot and they can be an option of a bad credit borrower that has exhausted all their other options. Keep in mind that you are going to pay incredibly high-interest rates and fees, and if you miss your payment due date, there are severe financial consequences.
Aside from the options listed above, there are still a good number of other ways to obtain a bad credit loan. Whether it’s taking a loan against your 401k or working with a credit counselor/micro-lender, you do not have to feel like your back is against the wall if you need money and you have a bad credit score.
What are the advantages of loans for bad credit?
The main advantage of getting a personal loan when you have bad credit is having the opportunity to improve your credit score. Although you may take an immediate hit to your credit score for taking on more overall debt and by having a new hard inquiry on your report, once you are approved for the loan and you start to make on time payments on the loan, you could see your credit score start to slowly increase. Keep in mind that the opposite is true as well. Any late or missed payments could jeopardize an already weak credit score.
What are the disadvantages of loans for bad credit?
There is no nice way of saying this. Bad credit loans come with a lot more downside than upside. Some of the disadvantages of loans for bad credit include some of the following. First off, you should prepare yourself for paying some of the highest interest rates that the lending market has to offer. Currently, interest rates for borrowers with the lowest qualifiable credit scores can reach as high as 36%, depending on the lender. Aside from higher interest rates, a bad credit borrower may have fewer options when it comes to lenders, and the chances that they will need to choose a lender that charges additional fees along with higher interest rates can be pretty high.
What are the best personal loan rates for bad credit?
There are many factors that lenders use to determine what kind of interest rate a potential borrower may have to pay in order to obtain a loan. If you have bad credit, it is safe to assume that when you look at the range of average APRs that a specific lender is currently offering, your APR may be on the higher end of that spectrum. How high your APR is on that spectrum depends on how bad your credit score actually is, what your debt-to-income ratio is, and if you have a co-borrower, co-signer, or collateral to help bring down that APR. Let us take a look at the average APR ranges for the top lenders for bad credit loans in 2022.
- BestEgg: 5.99% to 29.99%
- Prosper: 7.95% to 35.99%
- Upgrade: 6.94% to 35.97%
- OneMain Financial: 8.98% to 36%
- LendingPoint: 15.19% to 35.49%
All of these lenders may be accessible to a borrower depending on how bad their credit score is, and again, if you do qualify for a personal loan with bad credit, you may want to prepare yourself for locking in an APR that is on the higher end of the APR spectrum for each of these different lenders.
What FICO score range is considered bad credit?
A credit score can have a large impact on your chances to qualify for a loan or credit card, your ability to rent a home or apartment, and in some industries, having a poor credit score may disqualify you from getting a job. When it comes to the FICO credit score range, there are two ways of looking at what score would be considered bad credit. First, there is being part of the actual bad credit score category which would be a score anywhere from 300 to 579. Second, even a fair credit score that falls into the 580 to 669 category may be considered bad to some lenders because any score below a 670 is considered subprime. Subprime borrowers are subject to higher interest rates and fees and may not qualify for larger loans when compared to borrowers with credit scores above 670.
Will getting a personal loan hurt my credit score?
Yes, getting a personal loan may impact your credit score in both positive and negative ways. When you take on a new line of credit, you increase your overall debt as well as increase your credit utilization ratio. These two factors plus the newly added hard inquiry credit score check can bring down your credit score quite a bit. Once you start making monthly payments on the loan, if you happen to be late or miss any payments, then your credit score can go down even more. Payment history accounts for 35% of an individual’s credit score. Because of this, every late or missed payment can have a large negative impact on a credit score. That being said, if you never miss a payment and you pay off the loan in a timely manner, then your credit score may increase a good amount. For any of this to be true, you may want to make sure your personal loan lender reports all payment information to all three main credit bureaus. Some lenders may only report to one or two credit bureaus, so it is important to find a lender who reports to all three if you are using a bad credit loan to improve your credit score.
How do you compare the best personal loans for bad credit?
If you have bad credit, the easiest way to compare personalized loan offers is to complete an online prequalification application. By entering in some details about you and your finances, you could be preapproved for your desired loan amount within a few minutes. Once you are prequalified, you can then begin to review loan offers from various lenders located all throughout the United States. When you seek a personal loan through a bank or credit union, your options are a bit more limited based on geography. That being said, when you use an online lender and you prequalify in advance, you have access to lending companies from all over the country. By not being limited by geography, you can have more options, and if you have bad credit, the more options you have, the better. Once you begin to see loan offers from various lenders for the amount you wish to borrow, you can then compare those offers side-by-side and all at once. Take a look at APRs, available loan repayment periods, additional fees, and if they offer any special programs like free financial advice or unemployment protections.
How do you choose the best personal loans for bad credit?
Choosing the best personal loan for bad credit involves taking a hard look at your current circumstances. You may want to consider how bad your credit score actually is, if you have an asset that you can use as collateral, or if you may have a co-borrower or co-signer who is willing to sign onto a loan with you. Yes, you do want the best personal loan possible, however, if you have bad credit, your options may be a little more limited. The first thing you should do is check your credit report. What is your credit score? Is there anything you can do to quickly boost your credit score? If not, take a look at the score and compare that with the minimum credit score requirements that lenders have. Determine which lenders are going to be willing to work with you based on your credit score. If you are below the minimum credit score but still within reach, find a lender who may accept a co-signer or co-borrower on the loan or a lender who offers secured loan options. After that, you will want to compare what kinds of interest rates and loan repayment periods the different lenders offer if they charge any fees, and what kinds of incentives they offer to their customers. Ultimately, the best personal loan for a borrower with bad credit is a loan that sets them up for future financial success. You will want to make sure that your monthly payments are manageable, that your interest rates are the best that they can be and that all of your on-time payments are being reported to all three credit reporting agencies.
What should you consider before choosing a personal loan with bad credit?
If you do not need the money immediately, like if you are wanting to complete a home improvement project, then you may want to consider waiting some time before obtaining a personal loan.
How can you improve your bad credit score?
If you have a bad credit score, one of the best financial decisions you can make is to get serious about improving your credit score. By making some sacrifices when it comes to your spending, and by taking a proactive approach to paying down debt and taking care of any delinquent debts, you can start the process of improving your bad credit score. If you are serious about improving your credit score, one of the first things you should do is create a monthly budget. Take a look at your finances and see where you can cut back. Do you spend hundreds of dollars each month going to restaurants or ordering UberEats and DoorDash? Try to limit your spending on dining out to maybe once or twice a month and spend the rest of the time cooking cheaper meals at home. Any money saved should be devoted to improving your credit score. Also, take a look at your subscription services. Do you have Netflix, HBO Max, Disney+, and Hulu? Consider dropping a few subscription services for a bit and use the extra money to pay off debts. This may also be a good time to take a look at your living situation. Does your rent take up a large portion of your monthly income? You may want to consider moving to a smaller apartment or to a place a little further out of the city center where rent prices may be a bit lower to save some additional money each month. If you do not feel like cutting back and making different lifestyle choices, then you may need to consider an additional part-time job. Whatever you decide to do, something is going to have to change in order to free up the money you will need to pay down debts and to improve your credit score.
While you are creating a budget and examining your finances, you should also request a free copy of your credit report from each of the three credit bureaus. As a consumer in the US, you are entitled to one free copy of your credit report from each of the three credit reporting agencies every 12-months. The easiest way to access these free copies is through a free online credit monitoring service like annualcreditreport.com or experian.com. Once you have your credit reports, take a look to make sure that all three contain the same information and that there are no errors. If you notice any errors, make sure you reach out to the credit bureau and have them fix it immediately. If there are no errors, take a close look at your credit report and take note of what is dragging down your credit score. If you have any credit accounts that are delinquent or sitting in collections, you may want to tackle those first. You can call a collection agency and make an offer to settle the debt. If they accept your offer, make sure you get everything in writing and that the documents explicitly state that they will notify the three main credit bureaus about the debt being settled. If you have any accounts past due, try to get current as quickly as possible. If you have a large amount of credit card debt, use any extra money you earn or that you free up through spending cuts to pay down those credit cards. Is there a loan that is close to being paid off? If there is no early payoff penalty, then you may want to see if you can pay the loan off in full. This process can take months before you see any significant changes, however, any effort may go a long way to helping improve your credit score.
If you have more time and you want to make the most significant impact on your credit score, then you may want to consider a debt consolidation loan. A debt consolidation loan may hurt your credit at first, but it can help you get organized, and if you continue to make the monthly payments on time and in full, then you could see your credit score gradually increase until the loan is paid off in full. Debt consolidation loans could be for 12 or 24-months, and once you are done paying on the loan, you may see a dramatic difference from where you started to where you ended when it comes to your credit score.
What are alternative loan options for bad credit?
Some alternatives to bad credit loans include reaching out to a friend or family member for a loan, selling some jewelry or other valuable possessions, and/or getting a second part-time job.
What are the best for small loans for bad credit?
LendingPoint may be the best lender for smaller loans for borrowers with bad credit. They only require a minimum credit score of 600 and they offer loans as small as $2,000. Other lenders may have a smaller minimum loan amount, however, they potentially come with much higher origination fees.
What are the best bad credit loans with fast funding?
Upgrade extends loans to borrowers with a minimum credit score of 560, and once an application is submitted, it is often approved the same day and the funds hit the specified account the next business day.
What Is a Bad Credit Loan?
A bad credit loan is usually no different than a good credit loan. However, the terms may be much different or you may have to submit more documentation. In some cases, you may even be required to provide collateral. If you have bad credit, you may want to consider a personal loan. Bad credit loans advance a loan amount that must be paid back at a prescribed interest rate in monthly installments. The rate is generally much higher, sometimes as high as 35.99%. There may be fees that you have to pay, like an origination fee or prepayment fees if you pay it off early. Often, the amount you can borrow is less than what you can borrow if you have good credit. Finally, the amortization period might be shorter.
What Types of Loans Can You Get With Bad Credit?
People usually get personal loans for bad credit. Sometimes they are unsecured, meaning the lender has not taken any collateral from the borrower. The borrower promises to repay the loan in monthly installments until it is paid off. Other lenders may grant a secured loan. In this case, the lender will take security from you, the borrower. It could be a title loan, meaning they take the title of your vehicle as security. It could be an asset like cash in a savings account or valuables like art or jewelry. Once you have paid back the loan, the lender will release the security back to you. If you don’t repay the loan, the lender keeps the asset and uses it to settle the debt.
Two other types of loans are payday loans and payday alternative loans (PAL). Payday lenders will lend you a small amount of money, but you have to give them a postdated check for the amount and any fees. The idea is that you repay the loan the next time you get paid. Interest costs can be as high as 400% per year for borrowers who fail to repay on time. A PAL is a loan you get from a credit union. You have to be a member of the credit union to get a PAL. A PAL lets you pay the loan back over a few months, and the rate is capped at 28%.
How much money can you borrow with bad credit?
The amount you can borrow with bad credit depends on several factors. The first is how bad your credit is. Some lenders have a credit score cut off of 550. OneMain can lend up to $20,000 to individuals with a poor to fair credit score, while LendingPoint can lend up to $36,500 to individuals with a poor to fair credit score. The amount you can borrow also depends on what you can afford. Your income can determine how much of a loan payment you can afford. Other things lenders look at are if you have collateral and if you have a cosigner. Having something to secure the loan can increase the amount you will be able to borrow. Having a cosigner gives the lender another borrower to pay the loan, so you may be able to borrow more.
Can you get a loan with no credit check?
You can get a loan with no credit check, but you need to be careful of what you are signing up for. Some loans that don’t require a check credit charge rates as high as 400%. The cost of these loans can put people into a cycle of never-ending debt repayment.
What Interest Rate Can I Expect If I Have Bad Credit?
If you need to get a loan with bad credit, your rate can range from 4.99%- 35.99%. It will depend on what your credit score is and if you can secure the loan with an asset. If you have bad credit, you may want to consider rebuilding your credit before applying for a loan.
Where Can I Get a Personal Loan with Bad Credit?
Having bad credit might leave you wondering, “where can I get a loan with bad credit?” You can apply for a loan with lenders like LendingPoint and OneMain. You can look at bad credit loans online too. Sometimes online lenders are more flexible in their lending criteria. To simplify the process of finding lenders and comparing offers, you should visit Acorn Finance. At Acorn Finance, you can check personal loan offers without impacting your credit score. Most of the Acorn Finance lending partners have a FICO cutoff of 600 or above.
Can bad credit make it hard for you to borrow money?
Poor credit does make it harder for you to borrow money. Lenders look at your credit score and see that you have had problems repaying your debts in the past. These issues make lenders reluctant to lend to people with bad credit. As a result, you can expect to pay a higher rate. You may need to secure the loan or get a cosigner; you may qualify for less and have to pay it off over a shorter time than if you had good credit.
How can I get a $3000 loan with bad credit?
If you need a small loan, there are some lenders who can fund them. Your best bet will probably be to use an online lender. You should start by checking your credit score. Once you know your credit score, you can research minimum requirements for different lenders. If your credit score is 600 or above, you should check offers at Acorn Finance. If your credit score is below 600, you should seriously consider rebuilding it before applying for a loan.
Can you get a loan with a 500 credit score?
It’s possible to get a loan or secured credit card with a credit score of 500. A secured credit card or auto loan is often easier to get for a borrower with a 500 credit score. The reason is that the lender can reduce their risk when they have an asset securing the loan. Be aware, though, that the cost of borrowing will be high. You may require a downpayment if you are not providing security, and there may be fees associated with the loan.
What are the best bad credit loan companies?
The best bad credit loan company for you will be the one that can lend you the amount you need at the best rate and with favorable repayment terms. While that may be a lot to ask for, the best thing you can do is figure out what is most important to you and go from there. In some cases, borrowing a certain amount of money may be most important. In some other cases, getting a certain monthly payment might be most important. LendingClub, Upstart, OneMain, and Universal, rate highly for bad credit loans.
Getting a personal loan with bad credit can be challenging. You may not qualify for the amount you need, have to pay higher rates and fees, or secure the loan with collateral. If you don’t need to borrow money right away, consider taking some time to work on improving your credit score. If that’s not possible, try checking offers at Acorn Finance.
Do you qualify for a bad credit personal loan? Check offers now!
ONE HOME, ENDLESS POSSIBILITIES
More home improvement financing options
Your home is a work in progress. Whether you wish to redo, repair or redecorate your home, we can make it all happen with the most effortless financing options.
Trending home improvement projects
Barn Financing Options
Personal loan information
Loans by amount
$1k Personal Loans
$2k Personal Loans
$3k Personal Loans
$4k Personal Loans
$5k Personal Loans
$6k Personal Loans
$8k Personal Loans
$10k Personal Loans
$20k Personal Loans
$25k Personal Loans
$30k Personal Loans
$35k Personal Loans
$40k Personal Loans
$50k Personal Loans
$60k Personal Loans
$75k Personal Loans
$80k Personal Loans
$100k Personal Loans
Learn about personal loans
How To Finance Home Renovations Easily
How To Get a Home Improvement Loan
How Do Home Improvement Loans Work?
How To Finance a Second Home
Contractor Costs To Build a Home
Average Home Improvement Loan Rates
Credit Card Consolidation Loans
Personal Loans for Debt Consolidation
What Are Secured Personal Loans?
Best Financing Options for Home Improvement
$100k Home Improvement Loans
Home Financing Tips for 2021
Personal Loan Refinancing Guide
Secured vs Unsecured Loans
Personal Loan to Pay Off Debt