Best Online Loans for Bad Credit in April 2026
We’ve named Upstart’s Short-Term Relief Loan as best online loan for bad credit, thanks to a simple fee structure and friendly terms
- It’s possible to get a personal loan with bad or no credit, but rates are generally high (35.99% is a common cap for online lenders).
- Lenders look at more than credit score when making approval decisions. How much debt you currently have, your annual income and even the reason behind the loan can impact your ability to borrow.
- If you’re having trouble qualifying for an online loan, consider adding a cosigner, offering collateral and comparing offers from lenders that specialize in bad credit.
| Lender | User rating | APR | Amount | Min. credit score | |
|---|---|---|---|---|---|
|
Up to 36.00% |
$200 – $2.5k |
None | ||
|
11.99% – 35.99% |
$1.5k – $30k |
None | ||
|
Up to 35.99% |
$300 – $10k |
None | ||
|
8.99% – 35.99% |
$2k – $50k |
560 | ||
|
7.74% – 35.99% (with discounts) |
$1k – $50k |
580 |
| Lender |
|
|
|
|
|
|---|---|---|---|---|---|
| User rating | |||||
| APR | Up to 36.00% | 11.99% – 35.99% | Up to 35.99% | 8.99% – 35.99% | 7.74% – 35.99% (with discounts) |
| Amount | $200 – $2.5k | $1.5k – $30k | $300 – $10k | $2k – $50k | $1k – $50k |
| Min. credit score | None | None | None | 560 | 580 |
Read more about how we made our picks for best online loans for bad credit.
Best bad credit online loans at a glance
Best for: Overall bad credit online loans — Upstart’s Short-Term Relief Loan
- APR
- Up to 36.00%
- Can borrow as little as $200
- Don’t need perfect credit to qualify
- APR only includes origination fee (finance charge), no interest
- On-time payments unlock options for flexibility, like extra time to pay
- Not available in all states
- No co-borrowers
- Can’t contact customer service via chat (just email and phone)
We chose Upstart as the best lender for bad credit online loans because of its Short-Term Relief Loan. This online loan could be a great alternative to a payday loan due to lower annual percentage rates (APRs) and smaller loan amounts.
Payday loans typically come with fees that translate to triple-digit APRs. Full loan repayment is usually due on your next payday. If the money isn’t available, you may be able to roll your original loan into a new one, starting a cycle of debt.
With Upstart’s Short-Term Relief Loan, you’ll have 3 to 18 months to pay off what you borrowed. APRs are lower (up to 36.00%) than with a typical payday loan. This loan doesn’t have interest, so the APR consists only of an origination fee. This fee gets spread across your loan and is added to your monthly payments.
Though this loan doesn’t have interest, it’s still important to consider the total cost of borrowing. For instance, if you were to borrow $2,500 and Upstart charged an origination fee of 25%, you would pay a total of $625 in finance charges spread across your monthly payments.
If you finalize your Upstart Short-Term Relief Loan by 5 p.m. Eastern time, you could get your loan as soon as the next business day.
Upstart has transparent eligibility requirements, including:
- Age: 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 other 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: No formal minimum requirement
Upstart’s Short-Term Relief Loan is not available in Colorado, Connecticut, Georgia, Hawaii, Iowa, Maine, Maryland, Massachusetts, Nevada, New York, Vermont, Washington, D.C., West Virginia or Wisconsin.
Best for: Same-day online bad credit loans — OneMain Financial
- APR
- 11.99% – 35.99%
California residents must borrow at least $3,000
- Can get a loan an hour after finalizing paperwork
- Can use a car as collateral
- Free useful tools like bill negotiating and subscription-cancelling services
- Paying loan off early might not save much in total interest
- Customer service isn’t available through chat
You could get your money within the hour after finalizing your OneMain Financial loan. Bad credit loans often take a day or more. Sometimes, the lender needs more time to make an approval decision, but OneMain focuses on fast online loans for bad credit.
OneMain Financial has branches throughout the country, but it also offers online loans. It can make approval decisions in minutes, and you could get your loan within an hour after closing. Bad credit loans can typically take longer, but because OneMain Financial specializes in these types of loans, it can do them faster.
OneMain Financial uses precomputed interest on its personal loans. With precomputed interest, the total interest is calculated up front based on the full loan term. This may not matter if you plan to make all scheduled payments, but it can reduce potential interest savings if you pay the loan off early.
If your funds are deposited into the checking account linked to your debit card, you could receive your money as soon as one hour after final approval.
OneMain Financial isn’t transparent about its personal loan eligibility requirements, but it doesn’t have a minimum credit score requirement. Before closing on a loan, you may need to provide:
- Government-issued ID (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, Massachusetts, Rhode Island, Vermont, Washington, D.C., or in U.S. territories.
Best for: Online loans for building or rebuilding credit — Oportun
- APR
- Up to 35.99%
- Uses an “ability to pay” model rather than credit alone to determine eligibility
- No minimum income requirements
- Hardship options and due date changes available if experiencing financial difficulty
- Can contact customer service via chat seven days a week
- Offers secured loans, but only in a few states
Oportun uses alternative underwriting criteria when reviewing loan applications. Instead of putting emphasis on a specific credit score or length of credit history, Oportun bases its decision on your ability to pay your loan, based on your current budget.
Oportun is a Community Development Financial Institution (CDFI). CDFIs hold a common mission to serve underserved communities, including those with lower incomes, shorter credit histories or less-than-perfect credit.
Unsecured Oportun loans are available in every state, but secured options are limited. You can use your car as collateral to qualify for a bigger loan or longer loan term, but only in a few states .
With Oportun, loan funding may be available through instant debit card. Loans sent by direct deposit (ACH) are typically available as soon as the next business day.
Oportun does not have a minimum credit score requirement, but it will review your credit history to determine whether you can get a loan. If it approves you, here’s what you’ll need to provide to complete the process:
- Government-issued ID
- Proof of address, like an electric bill
- Proof of income, such as a pay stub
- List of recurring debt payments
- Vehicle title and registration for secured loans
Oportun unsecured loans are available nationwide. However, secured loans are available only in Arizona, California, Florida, Illinois, Nevada, New Jersey, Texas and Utah.
Best for: Peer-to-peer online loans for bad credit — Prosper
- APR
- 8.99% – 35.99%
- May qualify for a peer-to-peer loan if you’ve been turned down elsewhere
- No minimum length of credit history required
- Free FICO Scores via mobile app
- Individual investors must fund your loan after Prosper approves you
- Must borrow at least $2,000
- No live chat for customer service
Peer-to-peer loans can be a good option for bad credit borrowers, as these types of loans often use alternative underwriting data — not just credit history — to determine loan eligibility. This is true of peer-to-peer lender Prosper. With a peer-to-peer loan, individual investors fund the loan rather than a bank or financial institution.
Prosper is a peer-to-peer lending platform that connects people looking for loans with investors looking to fund loans. Prosper uses machine learning technology to determine loan eligibility, helping more people qualify. It doesn’t require a set length of credit history and has a lower credit score requirement.
If Prosper approves you, you’ll have to wait for investors to fund your loan request. If your loan isn’t at least 70% funded after 14 days, Prosper will cancel your loan request and you’ll have to try again.
Most loans are fully funded within one to three days after Prosper approval. Once the loan is funded, you could have money in as little as one business day.
To get a loan with Prosper, you must meet the following requirements:
- Age: 18 or older
- Administrative: Have a U.S. bank account and Social Security number
- Residency: Live in an eligible U.S. state (Prosper operates in most states, with only a small number of states excluded)
- Credit score: 560+
Best for: Using collateral for better online loan approval odds — Upgrade
- APR (with discounts)
- 7.74% – 35.99%
- Accepts two types of collateral on its secured personal loans
- Discounts for autopay and direct pay for debt consolidation
- Customer service available via chat
- Might not qualify with an exceptionally low score
While collateral is not required, Upgrade accepts two forms of it: cars and permanent household fixtures, such as cabinetry and ceiling fans. Collateral can help you get approval, lower rates or larger loan amounts.
Upgrade offers secured and unsecured loans — most personal loans are unsecured. A secured personal loan is one that requires collateral (usually your car). With lending platform Upgrade, you can use your car or your permanent household fixtures, giving you options.
Still, offering collateral is a risk. Upgrade can repossess your collateral if you don’t pay back your loan. Not all borrowers are eligible to use all types of collateral, either. For instance, you must be a homeowner with adequate equity to secure your loan using your house’s permanent fixtures.
Upgrade loans are typically funded as soon as one business day after approval.
Average online loan rates on LendingTree
Below are average online personal loan APRs users are offered through the LendingTree personal finance marketplace. Rates vary by credit profile and lender, but credit score and income typically have the greatest impact on the APR you’re offered.
Use this data along with a personal loan calculator to get an idea of how much it may cost you to borrow.
| Credit tier | Average APR |
|---|---|
| Excellent (800 and above) | 15.75% |
| Very good (740-799) | 17.89% |
| Good (670-739) | 23.27% |
| Fair (580-669) | 27.79% |
| Poor (under 580) | 30.25% |
Compare bad credit online loan offers with LendingTree
Based on LendingTree data, borrowers who compare at least six personal loan offers and choose the one with the lowest rate can save about $2,731 on average in total interest over a three-year term.
Bad credit can make it easier to run into high-cost or predatory loans. Comparing offers side by side helps you see APRs, fees and terms before you choose.
Share what you’re looking for
Tell us how much you want to borrow and why so we can match you with lenders that fit.
Compare offers side by side
If you’re matched with offers, you can compare APRs, monthly payments, terms and fees in one place.
Choose a lender and finish the process
Move forward only with the offer you want. The lender will confirm details and, if approved, send your funds.
Want more details on how online loan marketplaces work?
This guide explains how to compare personal loan offers on LendingTree and what can affect rates and approval.
How online lenders evaluate bad credit borrowers
According to FICO, a credit score below 580 is technically bad credit, but a credit score is only one of the many factors that personal loan lenders look at when they review a loan application.
Every lender has its own underwriting guidelines and loan requirements. Often, lenders consider many of their specific metrics a trade secret. Generally, “bad credit” could also mean:
- Lack of credit history: Unless specifically marketed toward borrowers with no credit, most lenders require a certain amount of credit history to qualify.
- Unstable income: Lenders want reassurance that you can pay your loan on time. Consistent, adequate and easy-to-prove income helps.
- Negative bank account history: Some lenders review recent bank account activity to assess cash flow stability. They may look at income deposits, account balance trends, overdrafts and returned payments when evaluating eligibility.
- Poor payment history: Payment history is the biggest factor (35%) in your FICO Score — but lenders don’t look exclusively at your score; they can also use late payments, collections or charge-offs as part of their approval decision.
- High debt-to-income ratio (DTI): DTI measures how much debt you have compared to your income. Divide your monthly debt and rent/mortgage payments by your monthly income before taxes. This is your DTI ratio. Generally, the lower your DTI, the better. Lenders often consider a DTI of 35% or less to be “good.”
- Higher-risk loan purpose: Some loan purposes are easier to qualify for than others. Lenders may view discretionary spending (like vacations) as higher risk than debt consolidation, which can signal you’re trying to simplify payments and manage existing debt.
According to LendingTree marketplace data, borrowers who raise their credit score from fair (580-669) to very good (740-799) may save an average of $1,804 in total interest over the life of their loan, assuming a three-year repayment term.
What bad credit borrowers should expect from online loans
- Higher rates: Many financial experts agree that a loan with a rate above 36% can be considered high-interest. Some online bad credit loans have APRs much higher than that.
- Origination fees: Some lenders charge origination fees, usually by deducting a percentage of the loan amount before sending it to you. Origination fees are more common when you have bad credit, especially with online loans.
- Smaller loan amounts: Lenders may not be willing to lend a large amount of money to a borrower with bad credit, as the lender stands to lose more money if the borrower doesn’t repay their loan.
- Shorter loan terms: The longer the loan term, the more opportunity the borrower has to fall behind on payments. Lenders are generally more likely to approve a shorter loan term than a longer one.
- More verification: Bad credit could trigger a lender to request proof of income or residency. This is especially true if your information is mismatched across platforms, like on your driver’s license and bank account, for instance.
- Slower funding, in some cases: Bad credit tends to mean more activity for the lender to scrutinize on a credit report. This can mean slower approval decisions.
No-credit-check loans: Are they worth it?
No-credit-check loans are loans that don’t require a hard credit inquiry. Instead, the lender may run a soft credit check and/or review alternative underwriting factors like bank account history.
If you’re considering a no-credit-check loan, it’s essential to have a solid payoff plan due to high rates and fees. Try to pay the loan off early to save on interest, as long as the loan doesn’t have a prepayment penalty
Prepayment penalties are not common on personal loans. If your loan offer comes with a prepayment penalty, you may want to reconsider signing as a personal loan prepayment penalty is often the sign of a predatory lender.
Looking specifically for no-credit-check options? See our guide to personal loans with no credit check.
How to reduce the cost of borrowing with bad credit
- Get a joint loan: Adding a co-borrower and getting a joint loan can help you get a lower rate or better approval odds, especially if your co-borrower has excellent credit.
- Consider a secured loan: Secured loans require collateral. In the case of personal loans, the collateral is often your vehicle or permanent household fixtures. Collateral helps the lender see you as less of a risk, sometimes leading to lower rates and/or larger loans.
- Ask for a different amount or term: You might get a lower rate by asking for less money or promising to pay it off in a shorter amount of time.
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How we chose the best online loans for bad credit
We reviewed more than 40 lenders and loan marketplaces to determine the overall best five bad credit online loans. To make this list, the company must accept credit scores of 580 and below, or have no minimum credit score requirement. Borrowers must also be able to complete the loan process entirely online.
From there, we assessed each lender or marketplace 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 online loans come from Upstart, OneMain Financial, Oportun, Prosper and Upgrade.
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
Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a LendingTree Editorial Content Director and Certified Financial Education Instructor, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.
Frequently asked questions
Minimum credit score requirements for bad credit online loans tend to start in the 500s, but requirements vary by lender. Some don’t have a minimum credit score requirement at all and instead review alternative factors like your income and current outflow of cash, or your ability to pay.
Your odds of personal loan approval also typically depend on debt-to-income ratio, income stability and the length of your credit history.
It’s possible to get an online loan with a 500 credit score, but options may be limited and rates are typically higher. You may want to consider getting a joint loan with a co-borrower or offering collateral to improve your approval odds and/or APR.
Checking and comparing offers with LendingTree doesn’t hurt your credit score. Requesting offers only requires a soft credit inquiry.
If you decide to move forward with a loan, that lender will likely run a hard credit check. According to FICO, a hard credit check typically results in a credit score drop of about five points.
Borrowers with bad credit often see higher APRs than those with good or excellent credit, though exact rates vary by lender. Your rate depends on factors like your credit score, income, debt-to-income ratio and loan term.
Comparing multiple offers can help you see the range of rates available to you — and potentially choose the lowest-cost option for your situation.
Online bad credit loans can be safe if you work with legitimate, reputable lenders.
Look for lenders that clearly disclose APRs, fees and repayment terms. Always avoid lenders that require up-front payment before funding. Comparing multiple offers in one place can make it easier to review terms side by side and avoid lenders that don’t meet your standards.
Yes, an online personal loan is typically better than a payday loan.
An online personal loan typically has repayment terms of months or years, depending on the lender and loan amount. Payday loans generally require full repayment by your next paycheck. If the money isn’t available, you may be able to roll over or “refinance” your payday loan into a new one, causing a debt cycle.
Because payday loans often come with extremely high fees and short repayment timelines, many borrowers prefer installment loans that spread payments out over time. Comparing options can help you understand total costs before borrowing.