Best Bad Credit Loans
Struggling with bad credit? Compare lenders that offer fair rates and approachable terms for borrowers with poor credit history.
| Personal Loan | Est. APR | Loan Amount | Loan Terms | Origination Fee | Apply now |
|---|---|---|---|---|---|
6.2%–35.99% | $1,000–$75,000 | 36–60 months | 0%–12% | Check Rates Won't affect credit score | |
18.00%–35.99% | $1,500–$20,000 | 24–60 months | 1%–10% or flat fee | Check Rates Won't affect credit score | |
9.95%–35.99% | $2,000–$35,000 | 12–60 months | Up to 9.99% | Check Rates Won't affect credit score | |
11.69%–35.99% | $1,000–$50,000 | 3–5 years | 5.25%–9.99% | Check Rates Won't affect credit score | |
5.99%–35.99% | $3,500–$40,000 | 24–60 months | 0%–8% | Check Rates Won't affect credit score | |
7.74%–35.99% | $1,000–$50,000 | 24–84 months | 1.85%–9.99% | Check Rates Won't affect credit score |
Funding Speed
As fast as 1 business day
Min. Credit Score
300 (AI underwriting)
Prepayment Penalty
None
Rate Check
No credit score impact
Why We Like It
- AI underwriting considers factors beyond credit score
- Very low minimum credit score requirement of 300
- Fast funding in as little as 1 business day
Where It Falls Short
- Only two repayment term options (36 or 60 months)
- Origination fee can be as high as 12%
Pro Tip
Even with bad credit, improving your score by 20–30 points before applying can unlock meaningfully better rates — paying down balances or disputing errors can help fas
Funding Speed
Same day
Collateral Options
Secured or unsecured
Credit Score Required
Not disclosed
Prepayment Penalty
None
Why We Like It
- Same-day funding available
- Accepts bad credit applicants
- Secured option may improve approval odds
Where It Falls Short
- High APRs up to 35.99%
- Origination fees up to 10%
Funding Speed
Next business day
Min. Credit Score
550
Prepayment Penalty
None
Collateral
Unsecured
Why We Like It
- Accessible to fair and bad credit borrowers
- Fast funding as soon as next business day
- No prepayment penalty
Where It Falls Short
- Origination fee up to 9.99%
- Not available in all states
Pro Tip
Adding a creditworthy co-signer to your loan application can significantly improve your approval odds and lower your interest rate.
Credit Score Required
560 minimum
Funding Speed
Fast funding
Collateral
None required
Discount Programs
None available
Why We Like It
- Accessible to fair credit borrowers
- Fast funding turnaround
- Long repayment terms up to 5 years
Where It Falls Short
- High origination fee up to 9.99%
- Higher minimum APR than some competitors
Funding Speed
1–3 business days
Credit Score Required
580 minimum
Prepayment Penalty
None
Collateral Required
None (unsecured)
Why We Like It
- Direct creditor payments simplify debt consolidation
- No prepayment penalty
- Accessible to fair credit borrowers (580+ score)
Where It Falls Short
- Origination fee up to 8% can add significant cost
- Limited to debt consolidation use cases
Pro Tip
Before taking out a bad credit loan, check if a local credit union offers alternative small-dollar loans — they're often far more affordable than online lenders and are more willing to work with borrowers rebuilding their credit.
Funding Speed
1 business day
Min. Credit Score
580
Discount Programs
Autopay, direct pay & rewards checking
Prepayment Penalty
None
Why We Like It
- Fast 1-business-day funding
- Accessible to fair-credit borrowers (580+)
- Multiple discount programs available
Where It Falls Short
- Origination fee up to 9.99%
- High APRs possible for fair-credit applicants
Finding the Best Bad Credit Loans
What Are Bad Credit Loans?
Bad credit loans are personal loans designed for borrowers with credit scores typically below 580. Standard lenders — banks and credit unions — often reject these applicants outright, so a separate market of lenders has developed to serve them. These lenders take on more risk by lending to people with poor credit histories, and they offset that risk by charging higher interest rates, sometimes ranging from 18% to 36% APR or even higher. The basic mechanics work the same as any personal loan: you borrow a fixed amount, agree to a repayment schedule, and pay back the principal plus interest over a set term, usually between 12 and 60 months. Some bad credit loans are unsecured, meaning no collateral required. Others are secured, where you pledge an asset like a car or savings account to back the loan. Secured loans tend to offer better rates because the lender has something to recover if you default. Knowing which type you're applying for matters before you sign anything.
Why Do People Use Bad Credit Loans?
Most people don't choose bad credit loans for fun — they turn to them because something urgent happened and savings weren't enough. A $1,500 car repair that threatens your job, a medical bill sent to collections, or a broken furnace in January are exactly the kinds of problems these loans are built to solve. They provide fast access to cash when other options have already been exhausted. Some borrowers also use them strategically to consolidate high-interest debt. If you're carrying credit card balances at 29% APR, even a bad credit loan at 25% represents real savings and the psychological benefit of one fixed monthly payment. Others use them to build or rebuild credit history. Making on-time payments on an installment loan can gradually improve your score over 12 to 24 months, opening doors to better financial products later. The people who benefit most are those with a clear repayment plan and a specific problem to solve, not those borrowing out of habit or without a concrete purpose.
What to Consider When Choosing Bad Credit Loans
The interest rate gets most of the attention, but the APR tells a more complete story because it includes fees. Two loans with the same stated rate can cost very different amounts once origination fees — often 1% to 8% of the loan amount — are factored in. Always calculate the total repayment amount, not just the monthly payment. A longer loan term lowers your monthly payment but increases what you pay overall. A $5,000 loan at 30% APR over 24 months costs you roughly $6,600 total; stretched to 48 months, that same loan costs closer to $7,800. Watch for prepayment penalties, which punish you for paying off the loan early. Also check whether the lender reports to all three credit bureaus — Equifax, Experian, and TransUnion — because that's what actually helps your credit score improve. Avoid lenders who guarantee approval without any credit check at all. That's almost always a sign of predatory terms or outright fraud hiding behind attractive marketing language.
How to Get the Most Out of Bad Credit Loans
Once you've been approved, your behavior with the loan matters as much as the terms themselves. Set up autopay immediately if the lender offers it — many reduce your rate by 0.25% to 0.5% for doing so, and you eliminate the risk of a missed payment damaging your already fragile credit score. If your budget allows, pay slightly more than the minimum each month. Even an extra $25 per payment can shorten your loan term meaningfully and reduce total interest paid. Check your credit score every 90 days using a free monitoring service to track the progress your payments are creating. After six to twelve months of consistent payments, you may qualify to refinance at a lower rate, which could save you hundreds over the remaining term. Keep your spending on other accounts controlled during this period — a rising credit score combined with lower credit utilization compounds the improvement faster than most people expect. Treat this loan as the beginning of a financial reset, not just a short-term fix.