Credit scores are the main criteria lenders use to decide whether to approve a personal loan. Getting a loan with bad credit can be difficult, but there are lenders who can help.
CNBC Select has chosen the best personal loan lenders for borrowers with bad credit, looking at approval requirements, funding speeds, loan amounts and other factors. To see how we made our selections, read our methodology.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
6.20% - 35.99%
$1,000 to $75,000
9.95% to 35.99%
$2,000 to $35,000
Best for fast funding: Avant
Who's this for? Avant considers applicants with credit scores as low as 550. If you're approved by 5:30 p.m. ET, you may be able to get your loan funded the next business day.
Standout benefits: If you're experiencing financial hardship, Avant may be willing to temporarily lower your interest rate for three to 12 months.
Lends to applicants with poor credit and offers next-day funding.
- Lends to applicants with poor credit
- No early payoff fee
- Can prequalify with a soft credit check
- Funding often available next day
- Late-payment grace period of 10 days
- Origination fee
- Potentially high interest
- No autopay discount
- No direct payments to creditors for debt consolidation
- No co-signers
Best for speedy approvals: LendingPoint
Who's this for? LendingPoint uses an AI-powered underwriting platform to evaluate applications in about four seconds. While it works with borrowers with 580 FICO Scores, LendingPoint says traditional credit scores only account for about 5% of its approval decision.
Standout benefits: After six months of on-time payments, you may be eligible for a rate review.
LendingPoint Personal Loans
Annual percentage rate (APR)
7.99% to 35.99%
Loan amounts
$1,000 to $36,500
Terms
24 to 72 months
Credit needed
Poor/fair
Origination fee
Up to 10% , depending on the state
Early payoff penalty
No
Late fee
LendingPoint does not currently assess a late fee but reserves the right to charge one of up to $30, depending on the state.
Terms apply.
Pros
- Next-day funding available
- Approves applicants with 620 credit score
- No early payoff fee
Cons
- Origination fee of up to 10%
- No joint loans or co-signers
- Not available in Nevada or West Virginia
Who's eligible to apply for a LendingPoint loan:
- You must be at least 18 years of age.
- You must be able to provide a U.S. federal, state or local government issued photo ID.
- You must have a social security number.
- You must have a minimum annual income of $40,000 (from employment, retirement or some other source).
- You must have a verifiable personal bank account in your name.
- You must live in one of the states where LendingPoint does business (excludes Nevada and West Virginia).
Best for small loans: Oportun
Who's this for? While most lenders require you to borrow at least $1,000, Oportun approves loans for as little as $300. It accepts low-income and no-credit borrowers, and considers applicants who have faced bankruptcy.
Standout benefits: Secured loans and joint/co-signed loans are available in some states.
Open to borrowers with no credit history, especially if needing only a small loan.
- Open to borrowers with no credit history
- No early payoff fee
- Same-day funding available
- Loan amounts as small as $300
- May charge an administrative fee of up to 10% of the principal
- Not available in all states
Best for borrowers with no credit history: Upstart
Who's this for? Upstart approves applicants with a 300 FICO Score, the lowest possible, but it also works with customers with an insufficient credit history, looking at their education, income, employment history and other factors.
Standout benefits: Borrowers can use their vehicle as collateral. Loan amounts range from $1,000 to $75,000, one of the broadest ranges we've seen.
Upstart offers accessible personal loans for people with fair or average credit.
- Accept applicants with low or no credit
- No early payoff fees
- Most loans funded the next business day
- High late fees
- Origination fee of 0% to 10% of the target amount
- $10 fee for paper copies of loan agreement
Best for debt consolidation: Universal Credit
Who's this for? If you're approved for a debt consolidation loan, Universal Credit will send the funds directly to your creditors — and you may even get a rate discount for choosing direct payment.
Standout benefits: Universal Credit is one of the few lenders that approve personal loans for business purposes.
We like that Universal Credit's flexible credit requirements and that personal loans can be used for business purposes. It does charge an origination fee, which means you get less of your loan money.
- Low 560 credit score requirement
- Funds may be available as early as the next business day
- Discount for having debt consolidation loan payments sent directly to creditors
- High starting APR
- The origination fee can be high
Best for secured loans: OneMain Financial
Who's this for? OneMain Financial allows borrowers to use a vehicle as collateral for a secured personal loan, provided OneMain has the first lien. In addition to cars, trucks and motorcycles, it considers other titled vehicles, including boats, RVs and trailers. You can also improve your odds of approval with a co-applicant.
Standout benefits: In some cases, funds may be available within one hour of loan signing. Borrowers can choose their due date. OneMain has over 1,300 branches across 44 states.
We like that OneMain accepts borrowers with bad credit and offers secured loans and fast funding. However, its minimum APR is on the high side and the $30,000 financing maximum may be too low if you need a larger loan.
- Approves applicants with bad/fair credit
- Same-day funding available
- Can apply with collateral
- Co-applicants allowed
- High origination fee
- High minimum interest rate
- No autopay discount
- Co-signers not allowed
*You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant's state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.
Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant's name with valid insurance. APRs are generally higher on loans not secured by a vehicle.
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount.
For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees.
Current OneMain Customers: Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.
Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans.Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Time to Fund Loans: Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.
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What's considered a bad credit score?
There are two main firms that provide credit scoring models, FICO and Vantagescore. Here's how they classify credit scores:
FICO
According to FICO, anything from 300 to 579 is considered a "poor" score.
- Excellent: 800 to 850
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 300 to 579
VantageScore
VantageScore has a slightly different scale, with poor (or "subprime") considered anything 600 or below.
- Excellent/Superprime: 781 to 850
- Good/Prime: 661 to 780
- Fair/Near Prime: 601 to 660
- Poor/Subprime: 300 to 600
While you'll need a score in the range of 670 to qualify for the best rates, there are lenders who focus on borrowers with credit scores in the high 500s and low 600s.
How to qualify for a loan with bad credit
Getting approved for a personal loan if you have bad credit may be difficult, but you can take steps to improve your chances of approval:
- Check your credit score: Knowing your score can help you weed out lenders whose requirements you aren't likely to meet. Plus, it might uncover errors or even fraud.
- Get prequalified: Determine whether you're likely to be approved for a loan without damaging your credit score and see your estimated loan terms.
- Use a co-signer or co-borrower: If a family member or friend has good credit, you can ask them to be a co-signer or co-borrower on your loan. Co-signers agree to repay the loan if the borrower fails to make payments, but they have no access to funds or payment information. Co-borrowers, on the other hand, can.
- Add collateral: You can secure your personal loan by adding collateral, like a car or money in your savings account. If you fail to repay the loan, the lender has the right to take your asset. This makes secured personal loans more accessible but also more risky.
- Include additional income: Many lenders allow you to add non-employment income on your application, such as Social Security payments, alimony or child support. Higher income can improve your chances of approval.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
7.99%–35.99%
Up to $50,000
9.95% to 35.99%
$2,000 to $35,000
How to choose a personal loan with bad credit
When choosing a lender for a personal loan, consider these factors:
- APR: The annual percentage rate represents the yearly cost of borrowing, expressed as a percentage. Because it also factors in fees and other additional charges, it's a truer picture than just an interest rate. Choosing the lender that gives you the lowest APR for your credit score will save you money over the life of the loan.
- Fees: Many lenders charge a flat-rate application fee to process your request and, if you're approved, a percentage-based origination fee for processing and underwriting. Your loan may also have a late payment fee or a prepayment penalty. Select a loan with as few fees as possible.
- Loan terms: A longer loan term usually means smaller monthly payments, which are easier to fit into your budget. But it also means you'll pay more in interest over the life of the loan. Try to choose the shortest loan term you can reasonably make monthly payments on.
- Disbursement timeline: Many lenders deposit funds within three to five business days but, if time is of the essence, look for lenders offering same- or next-day funding.
How to improve your credit score
1. Pay your bills on time and in full: How well you make on-time payments is the biggest factor in your credit score.
2. Lower your credit utilization ratio: Your credit utilization ratio is the amount you owe across your accounts compared to your total available credit. Paying down your bills is the best way to lower your ratio, but you can also ask your credit card company for a limit increase.
3. Avoid applying for too many cards at once: Each application requires the issuer to conduct a hard credit inquiry, which can temporarily lower your score by several points. If you're approved, it will lower the average age of your credit accounts.
4. Check your credit report: Review your credit reports with all three credit bureaus for any errors that could be negatively impacting you. Disputing errors takes more time, but it's worth it.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Credit Saint offers a 90-day money-back guarantee and has received an A rating from the Better Business Bureau.
The Credit People's Credit Report Repair service is more affordable than many competitors and even the standard package includes unlimited challenges to all three credit bureaus. The premium package includes escalated disputes and monthly credit score reports.
FAQs
What is considered bad credit?
According to FICO, the credit-modeling company used in 90% of lending decisions, a FICO Score of 579 or below. VantageScore sets poor, or subprime, credit at 600 or below.
What is the difference between a secured and unsecured personal loan?
A secured loan is backed by collateral, such as a vehicle, home or savings account. While a secured loan can help an applicant with weak credit get approval or a more favorable rate, it puts their assets at risk.
An unsecured loan isn't tied to collateral, so approval is mainly based on your credit score and debt-to-income ratio. For this reason, unsecured loans usually have higher interest rates.
What credit score is needed for a personal loan?
There is no universal minimum credit score for every personal loan, although most lenders want to see a FICO Score of at least 580 for approval. Scores in the 700s are typically needed for the most favorable rates and terms.
Does applying for a personal loan hurt my credit score?
When you formally submit a loan application, most lenders will run a hard inquiry on your credit history, which will temporarily lower your score a few points. If you're approved and start making regular, on-time payments, however, it should tick back up. To avoid too much damage to your score, try to get prequalified and only apply for the one loan you want.
Can I get a personal loan without a credit check?
It's difficult to get a personal loan with no credit check at all. However, some lenders, including LendingPoint and Upstart, consider factors beyond your credit history, including income, education and employment history. Federal credit unions often offer payday alternative loans, which can provide a lower-cost alternative to payday loans, with flexible credit requirements. Payday loans, car title loans and pawnshop loans generally don't use traditional credit reports or scores, but can have exorbitant fees and rates.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every personal loan list is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Our methodology
To determine the best personal loans for bad credit, CNBC Select analyzed offerings from more than two dozen banks, credit unions and online lenders.
When narrowing down our list, we focused on the following features:
- Credit score requirements: We considered the FICO Score range — and, when possible, the specific credit score — needed for loan approval. Lenders that allow co-signers or collateral were given more weight.
- APR: We considered the interest rate and overall cost of borrowing for each lender, including origination fees, application fee, late fees and returned-payment fees. None of the lenders on this list charge a prepayment penalty.
- Repayment terms: We gave more weight to lenders with a variety of repayment terms.
- Loan amounts: We considered the minimum and maximum loan amounts borrowers could borrow from each lender we reviewed.
- Funding: We prioritized lenders who made funding available the same or next business day. For debt consolidation loans, we also considered whether lenders paid creditors directly
- Discounts: We considered whether lenders had rate reductions for autopay, existing customers or for other categories.
- Rate and terms transparency: We considered whether rates, fees, eligibility requirements, and loan terms are clearly disclosed on the lender's website.
- Customer experience: We weighted lenders with evening and weekend customer service hours more heavily, as well as those with robust, easy-to-navigate mobile and web interfaces.
- Reputation: We reviewed lenders' Better Business Bureau ratings and third-party reviews from sites like TrustPilot. We also considered any lawsuits or regulatory actions
- Availability: We gave more weight to lenders that operate in all or most U.S. states.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
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