Best Loans for Bad Credit in August 2025

Worried you won’t qualify? LendingTree users with a credit score of 580 or lower receive 19 personal loan offers on average

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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Best for:
Overall loans for bad credit
Upstart logo
(17,366)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

Best for:
Same-day loans for bad credit
OneMain Financial logo
(8,684)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

Best for:
Live support seven days a week
Avant logo
(2,682)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

Best for:
Spreading out payments
Upgrade logo
(2,317)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

Best for:
Boosting approval odds with collateral
Best Egg logo
(2,728)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

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More Options

Upstart: Best overall loans for bad credit

(17,366)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(17,366)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

6.60% - 35.99%

36 or 60 months

$1,000 to $75,000

300

0.00% - 12.00%

Pros
  • Lowest minimum credit score requirement on our list
  • 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
Cons
  • Can’t boost your approval odds with a co-borrower 
  • Could keep some of your loan (0.00% - 12.00%) for itself as an origination fee
  • No current delinquencies or recent bankruptcies

Our writer’s experience applying

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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

What to know

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Upstart uses an AI algorithm that evaluates factors outside of credit history (such as education and employment) to approve more people, including people with bad or no credit. Plus, Upstart’s credit score requirement is one of the lowest on the market — you could qualify with a score as low as 300.

Loans through Upstart’s network come with only two repayment terms — 36 or 60 months — and can have higher origination fees than many other lenders.

Quick stats:

  • 99% of LendingTree users who borrowed from Upstart’s platform recommend them
  • Upstart funded 20,000+ personal loans to LendingTree users in 2024

Upstart lets you boost your approval odds with:

 Collateral
 Smaller loans
 Factors like your education and employment history

How to qualify

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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: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)

OneMain Financial: Best for same-day loans for bad credit

(8,684)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(8,684)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

18.00% - 35.99%

$1,500 - $20,000

24 to 60 months

500

$25 to $500, or 1.00% - 10.00%

Pros
  • Can get your loan within an hour as long as you have a debit card
  • Can use your car as collateral for a bigger loan or easier approval
  • Accepts bad credit — credit score requirement is on the low end compared to other lenders
Cons
  • Charges an upfront origination fee on every loan
  • You may get lower rates elsewhere if you have close to fair credit
  • Paying off your loan faster might not save you money 

Our writer’s experience applying

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I shopped for personal loans with OneMain 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

What to know

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OneMain has some of the quickest loans on the market — you could get your money in just an hour. All you have to do is 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 stops you from saving much (or any) interest if you pay your loan off early.

Quick stats:

  • 94% of LendingTree users who borrowed from OneMain recommend them
  • OneMain funded 51,000+ personal loans to LendingTree users in 2024

OneMain lets you boost your approval odds with:

 Collateral
 Smaller loans
 Cosigners/co-borrowers

How to qualify

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OneMain Financial isn’t very transparent about its personal loan eligibility requirements, but it’s possible to qualify even with a credit score as low as 500. 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.

Avant: Best for live support seven days a week

9.95% - 35.99%

24 to 60 months

$2,000 - $35,000

550

Up to 9.99%

Pros
  • Offers live application support seven days a week
  • Accepts bad credit — minimum credit score is on the low end for personal loan lenders
  • Get money as soon as the next business day
Cons
  • Takes up to Up to 9.99% from your loan as an upfront origination fee
  • Can’t boost your odds with a secured loan or a co-borrower

Our writer’s experience applying

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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.

What to know

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If you need someone to walk you through your loan application, you can contact Avant application support by phone 13 hours a day, 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.

Quick stats:

  • 95% of LendingTree users who borrowed from Avant recommend them
  • Avant funded 6000+ personal loans to LendingTree users in 2024

Avant lets you boost your approval odds with:

 Smaller loans

How to qualify

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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: 550+

Upgrade: Best for spreading out payments

(2,317)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(2,317)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

7.99% - 35.99% (with discounts)

24 to 84 months

$1,000 to $50,000

580

1.85% - 9.99%

Pros
  • Get lower monthly payments with an extended 84-month loan term
  • Discounts for autopay and paying your creditors directly
  • May accept your car as collateral (not all lenders will)
Cons
  • Takes between 1.85% - 9.99% from all loans as an origination fee

Our writer’s experience applying

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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

What to know

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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. Not only does Upgrade charge an origination fee (ranging from 1.85% - 9.99%), but expect fees for late or failed payments if you miss your due date.

Quick stats:

  • 97% of LendingTree users who borrowed from Upgrade’s platform recommend them
  • Upgrade funded 5,000+ personal loans to LendingTree users in 2024

Upgrade lets you boost your approval odds with:

 Collateral
 Smaller loans
 Cosigners/co-borrowers

How to qualify

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To qualify for a loan through Upgrade’s network, 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+

Best Egg: Best for boosting approval odds with collateral

(2,728)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(2,728)
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Ratings and reviews are from real consumers who have used the lending partner’s services.

7.99% - 29.99%

$2,000 - $50,000

36 to 84 months

580

0.99% - 8.99%

Pros
  • Better approval odds with collateral
  • Best Egg secured loans only put your home fixtures at risk, not your home itself
  • Accepts collateral but doesn’t require it
Cons
  • Takes between 0.99% - 8.99% from your loan as an origination fee
  • Could lose home fixtures if you stop making payments
  • Must own your home for secured loans
  • Home may be harder to sell until you’ve paid off your loan

Our writer’s experience applying

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I shopped for personal loans with Best Egg using my real information. Here’s what I found:

  • Application experience: Best Egg asks more questions than the average lender, but its application is clear and easy to complete. Once you have offers, you can quickly click through to a loan agreement that outlines next steps and how much you’ll pay.
  • Unusual questions to prepare for: Annual income for other people in your household, other types of accounts held (e.g., savings, retirement and investments), car payment, number of cash advances taken in past six months

What to know

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You can boost your odds of approval using Best Egg’s unique secured personal loans. Instead of putting up your entire home as collateral, you’ll use your home’s permanent fixtures like cabinets. You can also get an unsecured loan from Best Egg with APRs from 6.99% to 35.99%.

But you have to own your home in order to qualify, and you can’t sell your home without paying off the loan in full. This can make moving or even refinancing your home more complicated.

Quick stats:

  • 98% of LendingTree users who borrowed from Best Egg recommend them
  • Best Egg funded nearly 24,000 personal loans to LendingTree users in 2024

Best Egg lets you boost your approval odds with:

 Collateral
 Smaller loans

How to qualify

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Best Egg uses your home’s permanent fixtures as collateral, but no appraisal is needed. Instead, Best Egg will review your credit history and home equity to see if you qualify.

You must also meet the requirements below to qualify for a Best Egg loan:

  • Citizenship: Be a U.S. citizen or permanent resident living in the U.S.
  • Administrative: Have a personal checking account, email address and physical address
  • Residency: Not live in the District of Columbia, Iowa, Vermont, West Virginia or U.S. territories
  • Credit score: 580+

What are bad credit loans?

Key takeaways

  • Bad credit loans are designed for borrowers with credit scores below 580.
  • Bad credit loans are expensive, and annual percentage rates (APRs) above 35.99% are generally considered predatory.
  • Strategies like adding a co-borrower or asking for a smaller loan can help you get approved.

According to FICO, a bad credit score is anything below 580. It can be hard to get a loan when you have bad credit but if you shop with the right lenders, you could still qualify. For instance, you might get a bad credit loan from Upstart as long as your score is at least 300.

Although it’s possible to get a loan with bad credit, expect high interest rates and origination fees. Lenders usually deduct these fees from your loan amount (so you don’t pay out of pocket), but they increase the cost of borrowing.

A bad credit loan could be worth it if you’re in a bind, but it’s important to shop and compare offers to get the best deal.

Types of loans for 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.

Loans for bad creditBest if...What are they?Pros and cons
Secured loansYou have collateral you can loseLoans backed by collateral like a car, home or savings accountPros: Easier to get, lower rates
Cons: Risk losing your collateral if you can’t make payments
No-credit-check loansYou need a smaller loan that you can pay off fastPersonal loans with no credit check and/or apps that allow you to borrow moneyPros: No credit check, can get online
Cons: High rates/fees, apps can lead to overborrowing
Joint personal loansYou have a supportive family member/friend willing to back your loanLoans you get with another person who is equally responsible for repaymentPros: Easier to get, lower rates
Cons: Missing or late payments will hurt both of your credit scores
Cash advancesYou have a financial emergency and need fast cashSmall, short-term loans that you can get by withdrawing cash directly from your credit cardPros: No credit checks, fast cash
Cons: Potential fees and high rates
Payday loansYou can afford high fees and can pay it off fastSmall, expensive loans that you pay back in two to four weeksPros: No credit checks, fast cash
Cons: APRs up to 400% could trap you in a cycle of debt
Pawnshop loansYou have something of value to offer the pawnshop that you can loseSmall, short-term loans offered by pawnshops and backed by collateralPros: No credit checks, fast cash
Cons: Chance to lose collateral, high fees
Car title loansYou understand the risk of using your car as collateral and have no other optionsShort-term loans that are backed by your carPros: No credit check, fast cash
Cons: Rates are high, could lose your car

Where to find bad credit loans

Finding a lender to work with when you have bad credit can be frustrating. Knowing where to start can help.

  • Loan comparison sites: If you’re having a hard time getting approved, consider a loan comparison site like LendingTree. You won’t have to apply lender by lender. Instead, you fill out one form and get access to a wide network of lenders. This can help you quickly see which lenders you are likely to qualify for and which you don’t.
  • Banks: Many traditional and online banks offer personal loans, but you might not qualify. You usually need at least good credit to qualify for a bank loan. Still, if you have a good relationship with your bank, it might be worth a try.
  • Credit unions: Credit unions are owned by their members and are usually non-profit. Many have services and products built for members with bad credit, like payday alternative loans. You’ll have to join to be eligible, but it could be worth it.
  • Online lenders: Online lenders accept credit scores of all kinds. On this list, we’ve highlighted some of the best online bad credit loans. All of the lenders here have a minimum credit score requirement of 580 or less.

Why use LendingTree?

$6.4M in funding

In 2024 alone, LendingTree helped find funding for over $6.4 million in personal loans for people with credit scores of 580 or lower.

$1,659 in savings

Lendingtree users save $1,659 on average just by shopping and comparing personal loan rates.

309,000 loans

In 2024, LendingTree helped find funding for over 309,000 personal loans.

When banks compete, you win

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

Our users get 18 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.

What LendingTree users are saying

What to watch out for with bad credit loans

  1. High APRs and expensive fees. It’s an unfortunate reality that loans are more expensive for people with bad credit. But you can take control by shopping around for lower rates. Avoid predatory lending by skipping APRs above 36%. Also, check your offer for origination fees and prepayment penalties.
  2. Negative lender reviews. Before you sign, read online personal loan reviews for your potential lender. Pay attention to recurring complaints from current customers. These patterns can help you avoid similar frustrations or decide to pass on the lender altogether.
  3. The wrong repayment term. Some bad credit loans give you an extremely short amount of time to pay back what you borrowed. If you don’t have the money on your due date, you might have to borrow more to cover your first loan. This is a common way people get trapped in the debt cycle.

How to improve your chances of getting approved

If you keep getting denied for a personal loan, consider boosting approval odds with some of the strategies below.

  • Get a joint loan: Adding a co-borrower to your loan can help you get approved, especially if they have stellar credit. They will be putting their credit score on the line, however, so make all of your payments on time.
  • Apply for a smaller loan: A smaller loan is a smaller risk for the lender, so it may be more willing to work with you. Note that many small-dollar loans are predatory (like payday loans), so read your loan agreement carefully.
  • Offer collateral: You could offer collateral, either on a secured personal loan, pawnshop loan or car title loan. The second two typically come with high rates. Offering collateral can be risky, especially when it’s something as important as your car.
  • Improve your credit: Improving your credit score is the best way to improve your chances of approval. It’s not an overnight fix, but it’s something that you should always be working toward.

How to spot scams for bad credit loans

Some bad credit loans really are too good to be true. To avoid being scammed by a shady lender, be on the lookout for the signs below.

The lender demands you pay fees up front.

A legitimate lending institution won’t ask for payment before you’ve been approved and receive your loan. While some trustworthy lenders may require that you pay an application fee or a credit report fee, these are typically taken out of the loan you borrowed.

The lender requires that you act immediately.

If a lender is pressuring you to make a decision within a small window of time, that may be a red flag. A proper lender won’t corner you and understands that the decision to take out a loan may require some time to think over.

The lender has no physical address.

A reputable lender will have the company’s physical address listed on its website (not a post office box), and you’ll be able to confirm it by using Google Maps or a similar app.

The lender is not registered in your state.

A lender must be registered in your state before it can do business, according to the Federal Trade Commission (FTC). Lenders should note which states they are or aren’t registered with. If you’re suspicious of a scam, you can reach out to your state attorney general’s office to find out if that lender is registered where you live.

The lender contacts you first.

If a lender contacts you but you haven’t applied or completed a form with them before, it’s safer not to respond. It could be a scam to steal your financial information. Legitimate lenders won’t cold call and ask for your personal details.

The lender doesn’t have a secure website.

Some scammers may attempt to steal your information through their website. When researching bad credit loans, be sure to check that a website’s URL has the letter “s” following “http,” as well as a padlock icon on pages that ask you for your financial information.

The lender doesn’t check your payment history.

A reputable lender won’t guarantee your approval for a loan. Legitimate lending institutions will first want to see your payment history, your credit and DTI ratio and other financial information.

What to do if you’ve been scammed

If you find out you’ve been scammed, the first step is to contact law enforcement and file a police report. Unfortunately, there may not be much they can do, but you’ll want to document the crime as much as possible.

Once you’ve filed a police report, you should also report the scam to the FTC Internet Crime Complaint Center. By reporting it, you could potentially prevent others from being scammed in the future.

How we chose the best personal loans for bad credit

If your credit needs work, finding a trustworthy personal loan can feel impossible. LendingTree’s team of expert writers and editors reviewed more than 30 lenders and lending platforms — and applied directly with 14 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 elevate lenders based on the following factors:

  • Accessibility: We favor lenders that are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment and customer experience: Our picks report your payments to all three major credit bureaus, which can help if you’re trying to rebuild credit. They also offer frequent customer service and may include extras like free credit monitoring.
  • Trust and reputation: We investigate each lender’s track record for context on how they work. This includes LendingTree user reviews and personal experiences shared in sources like Trustpilot, the Consumer Financial Protection Bureau (CFPB) complaint database and Reddit.

According to our systematic rating and review process, the best personal loans for bad credit come from Upstart, OneMain Financial, Avant, Upgrade and Best Egg.

On a monthly basis, LendingTree experts evaluate and fact-check our top lender picks.

Frequently asked questions

The easiest loans to get with bad credit are typically payday loans or pawn shop loans because they don’t require credit checks. These loans are often predatory and extremely expensive, so check your rates with reputable lenders that specialize in bad credit instead.

Yes, it’s possible to get a personal loan with a 550 credit score. Three lenders on our list (Upstart, OneMain Financial and Avant) offer personal loans to borrowers with a credit score of 550 or lower.

LendingTree users with credit scores from 560 to 579 borrowed an average of $2,755 in the first quarter of 2025, the most recent data available. Those with scores under 560 borrowed an average of $1,883.
 
How much money you’ll be able to borrow with a bad credit loan will vary from lender to lender, but you’re more likely to get approved for a smaller loan.

You’ll pay higher rates with bad credit, which can make it more challenging to get out of debt, particularly if you’re already struggling financially. If you find yourself buried in debt, you can consider other options, such as bankruptcy or debt relief.