Bad Credit People Can Get Personal Loans

There are many options available to you when applying for a personal loan.

If you have poor credit, it can be one of the most challenging experiences in the world. It might seem impossible to get a personal loan if you are in financial trouble or consolidate debt. This is usually false.

Your credit score may not be ideal for personal loans, but that doesn’t mean you have no options. Lenders may approve personal loans even if your credit score isn’t the best.

Bad Credit Loans in January 2022

  • Avant is the best online lender.
  • Maximum Loan Amount: First Tech Federal Credit Union
  • Navy Federal Credit Union is the best option for veterans and small loans
  • LendingPoint: The Best Personal Loan Post-Bankruptcy
  • Best In-Person Loan Experience: OneMain Financial
  • Best Credit Union: PenFed Credit Union
  • With loans, you can get quick funding: Rocket Loans
  • Best Peer-to-Peer Lending: LendingClub
  • The Best Personal Loan with a Co-signer: Upgrade


Avant provides personal loans to borrowers with poor credit ratings. You can get up to $35,000. Avant does not charge administrative fees but may offer funding rates as low as 9.5%. This rate could be lower than that of other lenders.


  • Subprime lenders may offer lower interest rates but could charge more if you have a poor credit rating.
  • There is no prepayment penalty if you pay off your loan early
  • Online soft credit inquiries are possible when you’re looking into loan options.


  • Higher credit scores may be eligible for higher interest rates.
  • A maximum of 35,000 dollars is permissible. Some lenders might offer more significant loan amounts.
  • A fee of up to 4.75% could be added to your initial loan amount.

Important information:

  • Maximum and minimum amounts that you can borrow: $2,000 – $35,000
  • The APR ranges between 9.95% and 34.99%
  • Avant may charge an administration fee of up to 4.75%. This fee is taken directly from your loan. Lenders may also charge late fees or dishonored payments fees.
  • 600 is the minimum required
  • Avant will also assess your income to determine if you are eligible for financing.
  • Repayment terms: 24-to-60 months
  • It’s time to get your funds

BEST MAXIMUM LOAN MONTH: First Tech Federal Credit Union

First Tech Federal Credit Union was founded in 1952. It is for technology-oriented companies. For $8, anyone can join the Financial Fitness Association.

Personal loans up to $50,000 can be obtained with low-interest rates of 6.70%


  • This lender can lend a greater amount than other lenders.
  • Personal loan companies offer loan terms with longer terms than other lenders, which is a higher average.
  • If you pay your loan on time, there are no prepayment penalties


  • To qualify for a lower rate of interest, a co-borrower might be required.
  • Only members have access. To become a member, however, you can apply to Financial Fitness Association.

Important information:

  • A loan can be obtained between $500 and $50,000
  • APR range: Starting at 6.7%
  • Fees
  • Minimum credit score 580 This information is not available on the website.
  • Additional requirements: You must have at least 18 years of age and be a citizen or permanent resident of the United States.
  • Repayment terms: Terms vary from 24 to 84 Months (two to seven years).
  • If funds are available, the same day.

BEST FOR SMALL LOANS & VETERANS: Navy Federal Credit Union

This credit union has some of the highest rates available for people with poor credit. This credit union is one of few institutions that offer this option. The loan amount starts from $250 To help you get a lower rate; a cosigner can be available.

You must have ties with the Department of Defense, Armed Forces, and the National Guard to be eligible for membership. Your membership eligibility depends on whether or not you are a Navy Federal member.


  • Joint applications are possible. To receive a higher rate of interest, members can apply together.
  • Low Minimum Loan Amount $250 This is the minimum amount that all lenders in our database can lend.


  • Credit union membership required
  • Soft credit is not possible. All applicants must complete an application.
  • Higher APR on specific terms: Borrowers who have at least 36 months will be charged a higher rate, starting at 14.79%.

Important information:

  • Maximum and minimum amounts you can borrow: $250-50,000.
  • APR range: 7.49%-18%
  • Origination and prepayment fees are not required.
  • Minimum Recommended Number: 580
  • Additional Qualifications: Must have a Navy Federal membership
  • Repayment terms: Maximum 60 Months
  • You have time to get money: The same day


If you are a bankruptcy filings holder, it can be challenging to obtain a personal loan. LendingPoint might be able to help you if your bankruptcy was discharged within the last 12 months.

LendingPoint provides loans to borrowers with less than 585 credit scores in 48 US states and Washington DC. LendingPoint offers loans up to $36,000 to qualified applicants. Interest rates range from 9.99% to 34.99%.


  • If you have any other qualifications, your credit score may be lower.
  • It doesn’t have to be a deal-breaker if the bankruptcy is not filed within 12 months.
  • If you wish to repay your loan sooner than the due date, there is no penalty for prepayment.


  • The maximum loan amount is lower for other lenders than it is for others.
  • Origination fees may be as high as 6%, depending on where you live.
  • Higher credit scores may be eligible for lower interest rates.

Important information:

  • Maximum and minimum amounts that you can borrow: $2,000 – $36,500
  • The APR ranges between 9.99% and 35.99%
  • LendingPoint charges origination fees up to 6%
  • Minimum Recommendation: 585
  • Additional requirements: Must be at least 18 years old, have a bank account, and provide proof of income—a minimum annual income of $35,000.
  • Repayment terms: 24- to 60-months
  • The time needed to receive funds
  • Restrictions: LendingPoint cannot provide loans to Nevadans or West Virginians.


OneMain Financial is an excellent choice for people who prefer to deal face-to-face. There are nearly 1,600 branches in 44 states. They offer unsecured personal loans for bad credit borrowers. Qualified applicants may borrow up to $2,000.


  • Many branches are available for Borrowers who wish to meet with or take up funds in person.
  • If you pay your loan off early, there is no prepayment penalty
  • Prequalified offers can be verified using soft credit.


  • Subprime lenders don’t have the same starting interest rates as high-interest rate lenders.
  • The maximum loan amount is $20,000, which is less than personal loans providers.
  • Additional fees, such as late fees or origination fees, may be added to the interest cost.

Important information:

  • Maximum and minimum amounts that you can borrow: $1500-$20,000
  • The APR ranges between 18% and 35.99%
  • Fees: Origination fees may be either a flat fee of $25 to $400 or 1%- 10% depending on the state. Late fees can vary from one state to the next. These fees may be as high as 15% as your monthly payment and can range from $30 to $35 for late payments.
  • Minimum Recommended Number: 580
  • Additional requirements: OneMain Financial will also consider your income, credit history, and collateral when applying to borrow money.
  • Repayment terms: These terms can be 24 or 36 months.
  • Direct deposit can take up to 2 business day to process.
  • Restrictions: OneMain Financial may require that you meet with a loan specialist to complete the loan application process.

BEST CREDIT UNION: PenFed Credit Union

PenFed Credit Union provides personal loans to those with a minimum credit score below 580. Rates start at 5.99%, which is very competitive.


  • If you pay your loan off early, there is no prepayment penalty
  • A co-borrower could help you get a better rate


  • Personal loans have a maximum loan amount of $35,000, which can seem small compared to other providers.
  • To receive a personal loan, you must be a member.

Important information:

  • The maximum amount you can borrow is 35,000
  • APR range: Starting at 5.99%
  • Fees
  • Minimum Recommended Number: 580
  • Additional requirements: PenFed will consider your credit history and income when you apply for a loan. This includes your borrower, if applicable.
  • Repayment terms: Terms may last up to 60 months.
  • It can take as little as one day to receive funds.
  • Restrictions: To get a personal loan, you must be at least one credit union member.


Rocket Loans, a Quicken company, offers same-day personal loans. Autopay allows applicants to decrease member their initial rate and a lower rate by signing up for it.


  • Possibility to receive loan proceeds on the same day
  • Check the initial rate of soft credit
  • No prepayment penalties


  • Lenders may charge origination fees that are deducted from the final loan amount.
  • No cosigners
  • Fees for late or insufficient payments

Important information:

  • Maximum/minimum amount that you can borrow: $2,000 – $45,000
  • Autopay: APR range from 5.97% up to 29.99%
  • Fees: Borrowers must pay an origination fee of between 1% to 6%. This fee is added to the final loan amount. Late payments are $15
  • Minimum Recommended Score: 580
  • Additional requirements: Applicants must be at least 18 years old in their state. They must be permanent residents or citizens of the United States.
  • Payment terms: 36- to 60-months
  • The time required to receive funds can take hours.
  • Restrictions apply only to individual applications.


LendingClub, a peer-to-peer lending company trusted by thousands of people, has helped facilitate personal loans totaling more than $60 billion. LendingClub offers pre-qualification for applicants. They can then look at their rates and not have to affect their credit score. Rates start at 8.5%


  • For those with a smaller borrowing needs capacity, personal loans starting at $1,000 may be an option.
  • LendingClub allows you to apply for joint loans to receive higher approval rates.
  • Prepayments in cash advance are exempted from penalties


  • Nationally, loans are not possible
  • LendingClub takes longer to receive funds than other online lenders. Sometimes, it can take several days before funds are available.
  • Borrowers have to pay origination fees.

Important information:

  • Maximum/minimum amount that you can borrow: $1,000 – $40,000
  • The APR ranges between 8.05% and 34.99%
  • Fees: Charges include 3 to 66% origination fees, a $15 late fee, or 5% of the unpaid balance (whichever comes first).
  • 600 is the recommended minimum
  • Payment loan term: 36- to 60-months
  • The time it takes to receive funds: This will vary depending on what type of payment you made.
  • Restrictions: Only residents of the United States are eligible for loans. Territories and Iowa


Upgrade, a San Francisco-based business founded in 2017, offers individuals with poor credit the opportunity to borrow a personal loan. Some lenders might require cosigners or offer higher rates. The rate of upgrade is 5.94%.


  • Applicants can adjust rates without impacting credit scores
  • Funding is available as quickly as possible
  • Ability to apply with a cosigner


  • The lender charges origination fees
  • Borrowers who do not pay within the grace period will be subject to late $10 penalties

Important information:

  • Maximum/minimum amount that you can borrow: $1,000 to $50,000
  • Autopay Discount: APR Range: 5.94% – 35.97%
  • Fees: From 2.9% to 8.8% origination fee, plus a $10 late fee
  • Minimum Recommended Score: 602.
  • Additional qualifications: Credit history, debt to income ratio, and credit history of the applicant may also be considered
  • Repayment terms: 36-60 months
  • It’s time to get your funds
  • Restrictions: Credit Borrowers must sign up for autopay to receive the lowest rates.


Payday alternative loans (PALs) are a good option for those with bad credit and who need emergency funds. Some federally insured credit unions offer PALs. makes finding credit unions near you easy.

A PAL cannot be used for more than $1,000. PALs have a 28% interest rate, making them more affordable than payday loans for those with poor credit or online personal loans.


  • Payday loans can be more affordable than personal loans online and have lower interest rates.
  • With a $20 application fee, the maximum national limit can be reached at $20.


  • A small loan limit of $1,000 may not be sufficient to meet your borrowing process needs.
  • Depending on how the lender joins the credit union, a minimum membership period might be necessary.

Important information:

  • Maximum/minimum amount that you can borrow
  • The current maximum APR is 28%
  • The application fee shouldn’t exceed $20
  • Credit unions don’t require a credit check.
  • Other qualifications: These requirements may vary depending on the lender, but they could include direct deposit participation and on-time payment history of other loans at a credit cooperative.
  • Repayment terms: 1 – 6 Months
  • Restrictions: Ask your credit union about PALs and other conditions.


What is bad credit?

Lenders will use credit scores between 300 and 850. Experian says that subprime refers to a FICO score less than 670. This means you are a subprime borrower who has a “fair” credit rating. Experian, a credit reporting company, rates FICO scores lower than 580 as “very low.”
A bad credit loan can be costly. Your credit score can impact your interest rates. They can reach up to 30%. You may be eligible to receive lower loan amounts and shorter repayment terms if you have poor credit. We’ve compared more than a dozen personal loan options to help you decide the best one for you. We also compared interest rates and fees, as well as requirements for qualifications.

What is the best way to determine your credit score range?

Excellent Credit: 800 – 850
Very Good Credit: 740-799
670-739 – Good credit
Fair Credit: 580 – 669
Credit score below 580

What interest rate can I expect for my bad credit score?

A FICO score below 670 is considered subprime. A credit score below 580 is considered “very poor.”

Each lender has its pricing and approval criteria. Personal loan APRs can be difficult to predict if you have poor credit. Personal loan interest rates can range from 5.5% up to 36%. Personal loan rates may be higher if your credit score is low.

Lenders may offer personal loans to those with bad credit, and they might even guarantee approval. These promises should alarm. According to the Federal Trade Commission, these promises are not made by legitimate lenders. Before you submit your application, you may be told you are likely to be approved.

What are the best places to get a personal loan with bad credit?

It can be difficult to get a personal loan if you have bad credit. Many lenders will work with you even if their interest rates are higher. There are two options for personal loans with bad credit.

Online personal loans are available for people with bad credit. Online lending platforms accept loan applications and can connect you to lenders who might be willing to approve them. You can submit one application and receive multiple offers from different lenders.

Direct lenders offer personal loans to people with bad credit. These loans are directly provided by the financial institution where your application has been approved. These lenders could be local banks, credit unions, or online banks. It is best to apply to direct lenders that are open to working with credit-challenged applicants if you have poor credit.

This guide will assist you in finding the best personal loan for bad credit.

Another high-interest loan are title loans, which provides financing the same day you apply. It’s usually for a little sum of money (similar to an online payday loan). A title loan, on the other hand, allows you to utilize your own assets as collateral to get the financing you need.

Personal loans vs. payday loans

Payday loans for people with poor credit are possible. These loans can be costly. According to the CFPB, the average APR for a $100 payday loan was nearly 400%.

You may be eligible for a personal loan even if you have poor credit. A personal loan can be repaid much faster than a payday loan. Personal loans with interest rates up to 36%, the highest range for personal loans, are much cheaper than payday lender’s fees.

Many credit unions offer PALs or payday alternative loans (PALs) to their members. These loans can be an excellent option for people with poor credit to get short-term financing that’s less costly. A PAL has a maximum interest rate of 28%

Personal Loans vs. Personal Installment Loans

A personal loan and an installment loan are often the same things. You can get a personal loan and a line of credit. LOCs do not allow you to open a bank account (savings account or checking account). Financial professionals do not consider a LOC a personal loan. A LOC may not be available to you if your credit rating is poor.

Installment loans are similar to personal loans in that they work in the same way as personal loans. Lenders will lend you money for a set amount. You then pay the loan back, plus any interest or fees, in fixed monthly payments. A personal loan reported by the lender is typically reported to credit bureaus as an installment loan account.

Personal loans vs. peer-to-peer loans

Peer-to-peer loans are another way to borrow money. These loans are very similar to personal installment loans. You can borrow money from a P2P lender without the need to repay a bank. The funds can be lent to one person or a group. Your account can be reported to credit bureaus by P2P lenders, just like personal loans. You may need to have a minimum credit score of 600+ to be approved. Each P2P investor or network has its approval requirements.

You will need to fill out an online application to apply for a P2P Loan. This website connects potential investors and lenders. Do your research before you submit an application form or make any commitments. Do your research to compare the terms, fees, and rates of P2P loans with other options. While P2P loans are more flexible than traditional bank loans and loans, they can still have higher interest rates or fees.

The bottom line

If you have poor credit, you don’t need to resort to a predatory payday lender for emergency cash. You should consider all options, even if you don’t have a perfect credit history. There might be a better solution.