Best Bad Credit Loans in 2022: Online Options
While bad credit can make it harder to get affordable financing, it doesn’t mean you can’t qualify for a bad credit loan. All you have to do is look for lenders that offer financial products for people in your credit field.
We’ve ranked and rated our partner lenders to help you find the best personal loans for bad credit.
Note that we do not recommend lenders that offer loans with an APR of over 36%. Before you turn to these loans, you should check if you qualify for the lenders on this page, other loans with rates below 36%, or the alternatives highlighted below.
In this guide:
Best personal loan companies with bad credit
Bad credit personal loan options
- prices from 7.99% APR
- You can check prices without hurting your credit score
- Fast financing
- prices from 8.13% Effective interest rate1
- Low minimum loan amount
- 10-day grace period for late payments
Below are brief reviews of our personal lending partners who offer loans to people with bad credit.
7.99% – 35.97%
$1,000 – $35,000
Upgrading is a great option for borrowers at the higher end of the bad credit spectrum, as well as those who need smaller loans.
One benefit of upgrading is that you can verify your eligibility and rates without affecting your credit score. Also, eligibility is more based on free cash flow compared to other lenders, so you may qualify for a lower interest rate with Upgrade compared to other lenders with bad credit.
- Soft credit withdrawal to check rates: Yes
- Deposit time: Already the next day
- Incorporation fee: 2.9% – 8%
- Late Fee: $10
- Refund Terms: 36 or 60 months
6.27% – 35.99%1
$5,000 – $30,0002
Upstart is another good option for borrowers with poor credit ratings, as they offer competitive interest rates, a wide range of loan amounts, and 1-business-day financing3.
You can review your rates without hurting your credit score4 and use the funds for almost all expenses. Note that the Upstart minimum credit rating varies by state in which you live.
- Soft credit withdrawal to check rates: Yes
- Deposit time: As fast as one business day
- Incorporation fee: 0% – 10%
- Late Fee: $5 or 15% of payment (whichever is higher)
- Refund Terms: 36 months or 60 months
>> Read more: How to get a loan without a credit check
How we selected the best loans for bad credit
To find the best bad credit personal loans, our editorial team has analyzed each of our lender partners for BBB Rating, Trustpilot Rating, Interest Rates, Loan Amounts, Term, Deposit Duration, Processing Fees, Late Fees, Miscellaneous Fees, Initial Soft Credit Pull Availability, Benefits and more. Learn more about our ratings and methodology here.
If you want to see other options, check out these reviews:
Should You Get a Personal Loan If You Have Bad Credit?
what do you need it for
If you have bad credit and are considering a personal loan, the most important thing you can do is consider why you need the loan. If you’re paying off high-interest debt or are in dire need, a personal loan can be a useful financing option.
However, because personal loans for bad credit often come with extremely high interest rates and fees, the overall cost of the loan rarely justifies unnecessary purchases. Therefore, you should consider other options before using a personal loan to buy a car, remodel your home, or go on vacation.
Can you improve your credit score first?
If you have bad credit, it’s not the end of the world. You can still qualify for credit from some lenders, but you might choose to wait and improve your credit score if you are turned down for a loan or want better interest rates.
There are many ways you can improve your credit score, but not all are quick fixes. The best way to improve your credit score is to borrow responsibly and pay off your debts over time.
If you can increase your score by even 20 points, you may be eligible for different lenders and better interest rates. This can have a big impact on how much your loan ends up costing you.
Be prepared for repayment when you take out a loan
When you need to take out a bad credit personal loan, it’s important to make sure your budget can accommodate the repayment obligations for the life of the loan.
If you make regular payments, you may find that a personal loan can help build your credit. However, if you don’t make payments on time, it can have a negative impact and make your score even lower than before.
>> Read more: Where to find small personal loans
What about payday loans?
Although payday loans may seem like an attractive option for people with bad credit, they typically represent one of the most dangerous loan products on the market today.
Payday lenders offer instant cash in exchange for automatic payment (via post-dated check or automatic withholding agreement). However, the repayment includes the loan amount plus a significant amount of interest, often in the 400% range.
These loans often make it even more difficult to get out of debt and can be detrimental to your financial future.
>> Read more: Alternatives to get out of the payday loan cycle
Alternatives to bad credit personal loans
Before you take out a bad credit bureau loan, it’s important to consider whether there are cheaper alternatives you can turn to instead. The biggest driver of the overall cost of your loan (and most financial products) is the interest rate and the fees associated with it.
Here are some guides to other financial products you may want to explore before taking out a bad credit personal loan:
Conclusion: find the right loan for bad credit
Although bad credit can make it difficult for you to get a personal loan, it is not impossible. There are several lenders who specialize in subprime lending and are happy to work with consumers who have poor or nonexistent credit.
Note, however, that these bad credit loans usually come with high interest rates and limited terms. Therefore, it is best to consider the reason for the loan and, if possible, work on improving your credit score before applying.
1 The full range of available fares varies by state. The average 3-year loan offered to all lenders using the Upstart platform has an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan is $12,646, including a $626 processing fee. The APR is calculated based on the 3-year rates offered over the last 1 month. There is no down payment and no prepayment penalty. Your APR is determined based on your creditworthiness, income and certain other information provided in your loan application.
2 Your loan amount is determined based on your credit history, income, and certain other information in your loan application. Not all applicants will receive the full amount. Credit is not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100.
3 If you accept your loan by 5pm EST (excluding weekends or holidays), you will receive your money the next business day. Loans used to fund education-related expenses are subject to a 3-business day waiting period between loan acceptance and funding under federal law.
4 When you review your rate, we review your credit report. This initial (soft) request does not affect your credit score. If you accept your interest rate and proceed with your application, we will carry out another (hard) credit request, which will affect your credit score. When you take out a loan, repayment information is reported to the credit bureaus.