Best Personal Loans for Bad Credit in 2025 (US)
Finding a personal loan when you have bad credit can be challenging, but some lenders specialize in offering options for borrowers with lower credit scores. Below, we review the best personal loans for bad credit based on interest rates, loan terms, and eligibility requirements.
Top Personal Loans for Bad Credit
1. Upgrade
- Loan Amount: $1,000 – $50,000
- APR: 8.49% – 35.99%
- Minimum Credit Score: 560
- Pros: Fast funding, flexible terms, lower rates for good credit
- Cons: Origination fees, higher APR for poor credit
2. Avant
- Loan Amount: $2,000 – $35,000
- APR: 9.95% – 35.99%
- Minimum Credit Score: 580
- Pros: Available for fair and bad credit, quick approval
- Cons: High APR for lower credit scores
3. LendingPoint
- Loan Amount: $2,000 – $36,500
- APR: 7.99% – 35.99%
- Minimum Credit Score: 580
- Pros: Lower credit requirements, fast funding
- Cons: Origination fees
4. OneMain Financial
- Loan Amount: $1,500 – $20,000
- APR: 18.00% – 35.99%
- Minimum Credit Score: No strict minimum
- Pros: Accepts lower credit scores, in-person support
- Cons: Higher interest rates
How to Qualify for a Personal Loan with Bad Credit
- Check Your Credit Score – Know where you stand before applying.
- Compare Lenders – Look for ones that specialize in bad credit loans.
- Improve Your Credit (if possible) – Pay down debt, correct errors on your report.
- Consider a Co-Signer – A co-signer with good credit can help you secure a better rate.
- Look for Secured Loan Options – Some lenders allow you to use collateral for better terms.
Alternatives to Personal Loans for Bad Credit
- Credit Unions – Often offer lower rates for members.
- Secured Loans – Use collateral to improve your chances.
- Peer-to-Peer Lending – Platforms like Upstart or Prosper may provide options.
- Credit Builder Loans – Help improve your score over time.
Finding the right personal loan with bad credit requires research, but by comparing lenders and understanding your options, you can secure the best loan for your needs.
