Best Loans for Bad Credit in April 2026
LendingTree users with credit scores under 580 who qualify receive an average of 13 offers
- You could qualify for a loan with bad credit, or a FICO Score below 580.
- It typically takes anywhere from the same day to five business days to get your loan money.
- Upstart, OneMain Financial, Avant and Upgrade rank as the best overall personal loan lenders for bad credit right now based on LendingTree’s objective methodology.
How bad credit loans work
Yes, it’s possible to get a personal loan with bad credit — over 80,000 people with bad credit found a loan through LendingTree just last year. Here’s how it works.
- What credit score do I actually need to get a loan? Some bad credit lenders don’t have a minimum credit requirement, while others want to see a score of at least 500. The higher your score, the more offers you’ll likely get.
- How fast can I get money? Some lenders offer same- or next-day funding, but getting your money can take up to five business days. Lenders sometimes take longer to consider your application when you have bad credit.
- Will a loan hurt my credit? Lenders pull your credit when you apply, which can cause a small dip in your credit score (usually around five to 10 points). Scores return to baseline when you make payments on time, and the impact on your credit will be gone within a year.
- What do lenders consider? Beyond your credit score, lenders look at your income, housing payment, employment, how much debt you have compared to your income and whether you make payments on time.
- What improves approval odds? Regular employment, high income, low debt and small housing payments improve your odds of getting a loan, even with bad credit.
Borrowing money safely when you have bad credit
Understanding personal loan rates, loan terms and warning signs for scams can set you up for a safe, affordable loan. Here’s what you need to know.
Spot scams for bad credit loans
Rule of thumb: If a loan seems too good to be true, it probably is. Avoid lenders without an online footprint that reach out to you with promises of low rates or guaranteed approval.
To avoid scams and loans you can’t afford, watch for these signs:
- Pressure to act. It’s a red flag when a lender pressures you to make a decision in a short timeframe. Reputable lenders give you time to think about your options.
- No physical address. A legitimate lender will list its physical address on its website. You’ll be able to confirm the location with Google Maps.
- Negative lender reviews. Read online personal loan reviews for your potential lender, paying attention to the rating and common customer complaints.
- They contact you. If a lender contacts you but you haven’t applied or done business with them before, don’t respond — it could be a scam. Legitimate lenders won’t cold call and ask for your personal information.
- Guarantees and promises. A reputable lender won’t guarantee approval before checking your credit score and report.
- High APRs and expensive fees. Expensive loans aren’t scams, but they can leave you worse off. Take control by shopping around for lower rates and avoid offers with APRs above 36%.
Contact law enforcement and file a police report. There may not be much the police can do, but it’s important to document the crime. You should also report the scam to the FTC fraud site to potentially prevent others from being scammed in the future.
Choose the right loan term
Rule of thumb: Choose the shortest loan term that comes with monthly payments you can afford. This will save you money on interest.
Your loan term (how long you make monthly payments) directly affects how much you pay.
Short loans come with higher (more expensive) monthly payments, but cost less money in total interest.
Long loans come with lower (cheaper) monthly payments, but cost more money in total interest.
Understand rates
Rule of thumb: Look for loans with APRs below 36% and avoid triple-digit APRs entirely.
Some bad credit loans are much more expensive than others. You’ll pay higher rates with bad credit, but there’s a big difference between average bad credit rates and predatory rates.
See how much you’d pay if you borrowed $5,000 over 48 months:
Cost comparison: Average vs. predatory APRs
| APR | Monthly payment | Total interest | |
|---|---|---|---|
| Average APR for bad credit on LendingTree* | 30.25% | $180.76 | $3,676.37 |
| Predatory (very high) APR | 105% | $445.45 | $16,381.45 |
In this comparison, the predatory APR makes monthly payments cost over twice as much and total interest costs nearly five times more than the loan with the average APR for bad credit. You’d pay three times more than you borrowed in interest alone with the predatory rate.
See how much your loan could cost in dollars
The average APR for LendingTree users with bad credit is 30.25%, assuming typical loan amounts ($5,000 – $54,999) and repayment terms (36 to 83 months).
See how much your loan could cost in dollars by plugging 30.25% into the calculator below with the amount you want to borrow and your ideal repayment term.
What to know about bad credit loans
How to improve your chances of getting approved
Getting a loan if you have bad credit can be hard, but certainly not impossible. Finding a friend or family member willing to be a cosigner or co-borrower can significantly boost your approval chances, especially if that other person has a longer and better credit history than you.
But you’re more than a credit score, and that isn’t the only thing lenders consider. Your income, employment history and even education level can be green flags, too. Finding stable employment and boosting your income could give you an ‘in’ with some lenders.
Application timeline and checklist
1. Check your rates
You can fill out individual forms on lender websites or use the LendingTree marketplace to compare offers from up to five lenders at once.
- Basic personal info (name, birth date, contact information, Social Security number)
- Employment information
- Loan amount, purpose and term
- Income
- Housing payment
2. Compare offers
Once you have a few offers, you can compare monthly payments and total loan cost to decide which option is right for you.
3. Formally apply
You’ll submit a formal loan application to the lender you choose. Lenders often require additional information and documents at this step, and they may ask you for proof of your income, address and identity with documents like pay stubs or W-2s, a utility bill or a government ID.
4. Sign your offer
Read your loan offer carefully to make sure you understand the terms and conditions. Ask questions if you’re unsure about anything at this step. Reputable lenders have customer service representatives to walk you through any questions you have.
5. Get your money
Lenders typically send your money by depositing it directly into your bank account. It can take anywhere from the same day to five business days from the day you sign to get your money.
Learn more about how to apply for a personal loan and how long it takes to get your money.
How to choose a loan when you have bad credit
| Situation | Strategy | Next steps |
|---|---|---|
| You have several offers from different lenders | Choose the loan with the lowest total interest that has monthly payments you can afford. | Use a personal loan calculator to compare monthly payments and total interest. |
| You only have a couple of options, and they’re expensive | See if you can manage the payments, and if not, choose an alternative. | See if the monthly payments fit in your budget. If you can’t afford them, use our expert strategies to get better rates. |
| You don’t qualify | Choose a strategy to improve your odds when you apply again. | Evaluate strategies and consider alternatives like family loans and payday alternative loans. |
What happens if you can’t repay
Most personal loans are unsecured, meaning they’re backed by your promise to repay. So what happens when you can’t afford payments?
- Damage to credit score and report. Your credit score can drop by more than 100 points when you stop making payments for 90 days. The negative mark from the defaulted loan will stay on your credit report for seven years.
- Harder to get credit and housing. Missing loan payments can make bad credit even worse, making it harder to qualify for new loans or even rent an apartment.
- Loan goes to collections. Lenders typically send your debt to a collections agency after 90 to 180 days. Debt collectors will then contact you to collect payment.
- Can be sued. If you still don’t make payments, your lender or debt collector can sue you. If they win, they can ask to garnish your wages, freeze your money or put a lien on your property to make you pay.
Estimate your monthly payment and compare it to your budget to see if you can afford a loan. Still not sure if you can afford it? Look into other ways to borrow money. Taking out a loan you can’t afford can lead to an even worse financial situation with chronic debt.
More guides to bad credit personal loans
Find the right type of loan for your situation — whether you need cash fast, want to avoid fees or are consolidating debt.
Compare loan offers from trusted lenders — even with bad credit
You’d shop around for flights. Why not your loan? LendingTree makes it easy. Fill out one form and get lenders from the country’s largest network to compete for your business.
Tell us what you need
Take two minutes to tell us who you are and how much money you need. It’s free, simple and secure.
Shop your offers
LendingTree users with bad credit who get at least one offer receive 13 personal loan offers on average. Compare your offers side by side to get the best deal.
Get your money
Pick a lender and sign your loan paperwork. You could see money in your account in as soon as 24 hours.
Best bad credit loans with the lowest rates
| Lender | User rating | APR | Amount | Min. credit score | |
|---|---|---|---|---|---|
|
6.20% – 35.99% |
$1k – $75k |
None | ||
|
11.99% – 35.99% |
$1.5k – $30k |
None | ||
|
9.95% – 35.99% |
$2k – $35k |
580 | ||
|
7.74% – 35.99% (with discounts) |
$1k – $50k |
580 |
Read more about how we made our picks for the best bad credit loans.
Best for: Overall bad credit loans – Upstart
- APR
- 6.20% – 35.99%
- Get money as soon as one business day
- Considers factors beyond your credit score
- May be able to use your paid-off car as collateral for better odds
- 99% approval rating from LendingTree users who borrow from Upstart
- Can’t boost your approval odds with a co-borrower
- Could keep some of your loan as an origination fee
I shopped for personal loans with Upstart using my real personal information to better understand the application process. Here’s what I found:
- Application experience: Upstart’s application is straightforward and clear. It has more questions than the average loan application, but these questions are tied to its AI algorithm designed to improve users’ chances of approval.
- Unusual questions to prepare for: Amounts in checking, savings and investment accounts; car payment; miles on car
Upstart uses an AI algorithm that evaluates factors outside of credit history (such as education and employment) to approve more people, including those with bad or no credit.
Loans through Upstart’s network come with only two repayment terms — 36 to 60 months. Origination fees (fees taken from your loan before you receive it) vary by lender.
Upstart lets you boost your approval odds with:
- Collateral
- Smaller loans
- Factors like your education and employment history
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Income: Have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score: None
Best for: Same-day loans for bad credit – OneMain Financial
- APR
- 11.99% – 35.99%
California residents must borrow at least $3,000
- Get your loan in as soon as an hour using your debit card
- Use your car as collateral for a bigger loan or easier approval
- 94% approval rating from LendingTree users who borrow from OneMain
- Charges an upfront origination fee on every loan
- Paying off your loan faster might not save you money
I shopped for personal loans with OneMain Financial using my real information. Here’s what I found:
- Application experience: OneMain’s application is fast and easy to navigate, especially if you’ve prepared for additional questions about your income and employment (see below).
- Unusual questions to prepare for: Monthly take-home pay (most lenders ask for annual income), employer phone number, car payment
OneMain Financial has some of the quickest loans on the market — you could get your money in just an hour. You can use your debit card number to get your money directly deposited into your bank account.
But OneMain loans aren’t cheap — they come with high rates and fees. OneMain also calculates interest in a way that may limit how much (or whether) you save on interest if you pay your loan off early.
OneMain lets you boost your approval odds with:
- Collateral
- Smaller loans
- Cosigners/co-borrowers
OneMain Financial isn’t very transparent about its personal loan eligibility requirements, but it has no minimum credit score requirements. Before closing on a loan, you must provide:
- Government-issued identification (such as a driver’s license or passport)
- Proof of residence (such as a rental agreement or utility bill)
- Proof of income (such as pay stubs or tax returns)
OneMain loans are not available in Alaska, Arkansas, Connecticut, District of Columbia, Massachusetts, Rhode Island, Vermont or in U.S. territories.
Best for: Live support seven days a week – Avant
- APR
- 9.95% – 35.99%
- Live application support seven days a week
- Get money as soon as the next business day
- 95% approval rating from LendingTree users who borrow from Avant
- Up to 9.99% of your loan taken as an upfront origination fee
- Can’t boost your odds with a secured loan or a co-borrower
I shopped for personal loans with Avant using my real personal information to better understand the application process. Here’s what I found:
- Application experience: Avant’s application is straightforward and fast — easily one of the best application experiences I tested.
If you need someone to walk you through your loan application, you can contact Avant application support by phone or email seven days a week. Other lenders offer more limited hours, and some are closed on weekends altogether.
Unlike other lenders on this list, Avant doesn’t allow you to put up collateral or apply with a co-borrower to improve your odds of getting a loan.
Avant lets you boost your approval odds with smaller loans.
To get a loan with Avant, you’ll need to meet the following minimum requirements:
- Residency: Not available to residents of Hawaii, Iowa, Maine, Massachusetts, New York, Vermont, Washington and West Virginia.
- Administrative: Must have a bank account. May need to submit bank statements, pay stubs or tax documents to prove your income. Avant may also call your employer to verify your employment.
- Credit score: 580+
Best for: Spreading out payments – Upgrade
- APR
- 7.74% – 35.99%
- Discounts for autopay and paying your creditors directly
- Use your car or home fixtures as collateral for better odds
- Get lower monthly payments with a long loan term
- 97% approval rating from LendingTree users who borrow from Upgrade
- Takes between 1.85% – 9.99% from all loans as an origination fee
I shopped for personal loans with Upgrade using my real information. Here’s what I found:
- Application experience: Upgrade’s application is very quick with few questions, and it’s easy to apply with a co-borrower — you can add their information on the first page.
- Unusual step to prepare for: Must create an account to see your rates
Upgrade lets you spread out payments across an extra-long loan term, which can help you get affordable monthly payments. Plus, you can get discounts for letting Upgrade pay your creditors directly and for signing up for autopay. Keep in mind that longer loan terms mean that you’ll pay more in interest overall.
But you’ll have to watch out for fees. Upgrade keeps between 1.85% – 9.99% of every loan as an origination fee (a fee deducted before you receive your money), and the worse your credit, the higher this fee typically is.
Upgrade lets you boost your approval odds with:
- Collateral
- Smaller loans
- Cosigners/co-borrowers
To qualify for a loan through Upgrade, you must meet the requirements below:
- Age: Be at least 18 years old (19 in some states)
- Citizenship: Be a U.S. citizen, permanent resident or live in the U.S. with a valid visa
- Administrative: Have a valid bank account and email address
- Credit score: 580+
Why use LendingTree?
$200M+ in funding
In 2025 alone, LendingTree helped find funding for over $200 million in personal loans for people with credit scores below 580.
$1,659 in savings
LendingTree users save $1,659 on average just by shopping and comparing personal loan rates.
360,000+ loans
In 2025, LendingTree helped find funding for over 360,000 personal loans.
Other ways to get money with bad credit
This article focuses on unsecured personal loans for bad credit, but there are other options that may be a better fit for you.
| Ways to borrow | Best if… | What are they? | Pros and cons |
|---|---|---|---|
| Secured loans | You have collateral you can lose | Loans backed by collateral like a car, home or savings account | Pros: Easier to get, lower rates Cons: Risk losing your collateral if you can’t make payments |
| No-credit-check loans | You need a smaller loan that you can pay off fast | Personal loans with no credit check and/or apps that allow you to borrow money | Pros: No credit check, can get online Cons: High rates/fees, apps can lead to overborrowing |
| Joint personal loans | You have a supportive family member/friend willing to back your loan | Loans you get with another person who is equally responsible for repayment | Pros: Easier to get, lower rates Cons: Missing or late payments will hurt both of your credit scores |
| Payday loans | You can afford high fees and can pay it off fast | Small, expensive loans that you pay back in two to four weeks | Pros: No credit check, fast cash Cons: APRs up to 400% could trap you in a cycle of debt |
| Pawnshop loans | You have something of value to offer the pawnshop that you can lose | Small, short-term loans offered by pawnshops and backed by collateral | Pros: No credit checks, fast cash Cons: Risk losing collateral, high fees |
| Car title loans | You understand the risk of using your car as collateral and have no other options | Short-term loans backed by your car | Pros: No credit check, fast cash Cons: High rates, risk losing your car |
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How we chose the best personal loans for bad credit
LendingTree’s team of expert writers and editors reviewed more than 40 lenders and loan marketplaces — and shopped directly with 15 of them — to find the best personal loans for bad credit. To make our list, lenders must advertise a minimum credit score of 580 or lower and cap their annual percentage rates (APRs) at 36%.
From there, we assessed each lender across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our systematic rating and review process, the best personal loans for bad credit come from Upstart, Upgrade, Avant and OneMain Financial. LendingTree reviews and fact-checks our top lender picks on a monthly basis.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Why trust LendingTree’s methodology?
LendingTree’s writers and editors diligently vet dozens of lenders to narrow down which ones offer the most affordable rates and a customer-centered experience. We have ongoing conversations with loan companies to ensure accuracy and collect first-person feedback to understand the holistic process of getting and repaying a loan.
Using my financial health counseling certification, I’m here to walk you through the important — and sometimes stressful — process of understanding your personal finances and credit.
Amanda’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
Upstart is our top expert pick for the best loan for bad credit. Its credit score minimum is one of the lowest on the market, and it caps its rates at 35.99%, which is reasonable for a bad credit loan.
Yes, it’s possible to get a personal loan with a 500 credit score — two lenders on our list (Upstart and OneMain Financial) offer loans to borrowers with that score.
Check out our expert tips on how to improve your chances of approval. Here’s the short version: Apply with a co-borrower, take out less money, use collateral or take the time to improve your credit.
Yes, your credit score will drop when the lender pulls your credit. As long as you make payments on time, any drop will likely be temporary and small.