Today, many customers may find the current economic environment difficult to deal with. Rates of interest are also high even though inflation is slowing. Moreover, nationwide layoffs are increasing. Due to this, some people are using credit cards to pay their bills, which has increased credit card debt (balances are up nearly 6% from a year ago).
Unfortunately, in addition to other financial errors, having large credit card debt and a spotty payment history can negatively impact your credit, which will ultimately limit your future financial options.
However, there are still ways to borrow money. If you need money but you are afraid that your credit score will stop you from getting it. You don’t need to worry about your credit score. These are the best credit loans to be considered for your need of money.
| Lender | User ratings | Best for… | Minimum credit score | APR range | Loan amounts |
|---|---|---|---|---|---|
 |
★★★★★ (16,679) | Overall loans for bad credit | 300 | 7.80% – 35.99% | $1,000 to $50,000 |
|
★★★★☆ (2,237) | Spreading out payments | 580 | 9.99% – 35.99% (with discounts) | $1,000 to $50,000 |
|
★★★★☆ (2,682) | Quick loans for bad credit | 580 | 9.95% – 35.99% | $2,000 to $35,000 |
|
★★★★☆ (2,593) | Getting lower rates with collateral | 600 | 7.99% – 35.99% | $2,000 – $50,000 |
|
★★★★☆ (7,056) | Getting lower rates with a co-borrower | 600 | 8.98% – 35.99% | $1,000 to $40,000 |
|
★★★★☆ (153) | Consolidating debt | 640 | 11.72% – 17.99% | $5,000 to $40,000 |
Best Bad Credit Loans of October 2024
Here are some best bad credit personal loans you can get for the urgent need of money or whatever:
Upstart: Best overall loans for bad credit
4.8 ★★★★★ (16,489 User Ratings & Reviews)
APR range: 7.80% – 35.99%
Loan amounts: $1,000 to $50,000
Loan terms: 36 or 60 months
Origination fee: 0.00% – 12.00%
Minimum credit score: 300
PROS
- Lowest minimum credit score requirement on our list
- Can receive funds in one business day
- Loans can be used toward education-related expenses
CONS
- No option to apply with a co-borrower
- There are just two options for repayment: 36 or 60 months.
- May need to pay origination fee
Why we like it
Upstart stands out as the top choice for personal loans if you have bad credit. It has the lowest minimum credit score requirement. FinanceProsper users recommend Upstart 99% of the time.
In 2023, the startup provided over 13,000 personal loans to FinanceProsper users.
Overview
Unlike many other traditional lenders, Upstart provides larger personal loans for bad credit to borrowers with flexible loan amounts. Since this lender takes into account factors other than your credit score when making lending decisions, such as employment history and education, some customers with thin credit histories may find it easier to qualify through its application process.
In comparison to some other lenders, Upstart loans have significantly higher origination fees and are only available with two repayment terms: 36 or 60 months..
How to qualify
- Be a U.S. citizen or a permanent resident
- Be at least 18 years old
- Provide an email address
- Provide their name, date of birth and Social Security number
- Have a full-time job or an offer to start within six months (or some form of regular income)
- Have a personal bank account
Upgrade: Best for spreading out payments
4.7 ★★★★★ (2,388 User Ratings & Reviews)
APR range: 9.99% – 35.99% (with discounts)
Loan amounts: $1,000 to $50,000
Loan terms: 24 to 84 months
Origination fee: 1.85% – 9.99%
Minimum credit score: 580
PROS
- offers one of the longest maximum payback periods on our list.
- Offers APR discounts
- Offers auto secured loans
CONS
- Charges an origination fee
- Fees $10 late fees and $10 fees for unsuccessful payments
- Can’t use loan for college expenses
Why we like it
Upgrade provides APR breaks for applying autopay, applying a portion of the loan toward existing debt, and securing a secured loan with your car as collateral.
Upgrade funded nearly 14,000 personal loans to FinanceProsper users in 2023.
Overview
Customers can select from various loan terms offered by this online lender. After being approved, borrowers can get their loans within one business day. Additionally, if you set up autopay and pay off some of your existing debts in full, you may be eligible for a rate reduction.
However, not only does Upgrade charge an origination fee (ranging from 1.85% – 9.99%), but if borrowers are unable to keep up with their payments, this online lender also charges late and failed payment attempt fees.
How to qualify
- Have at least a 580 credit score
- Be at least 18 years old
- Be a U.S. citizen, long-term resident, or visitor with a valid visa
- Have a verifiable bank account
- Have a valid email address
Avant: Best for fast loans with poor credit
4.5 ★★★★★ (2,682 User Ratings & Reviews)
APR range: 9.95% – 35.99%
Loan amounts: $2,000 to $35,000
Loan terms: 24 to 60 months
Origination fee: Up to 9.99%
Minimum credit score: 580
PROS
- No prepayment penalties
- As early as the next working day, money could be received.
- May take into account household income as opposed to just individual income
CONS
- Charges late and dishonored payment fees
- Charges an origination fee
- Can only borrow up to $35,000
Why we like it
If Avant accepts your application for a personal loan, the funds could be transferred into your bank account as soon as the next business day.
Overview
Although Avant offers higher interest rates than some other lenders, you might get your loan sooner than rivals. Your funds might be sent to you in a single business day after approval. If you are unable to make payments on time, this online lender also provides a 10-day grace period without late fees.
Avant does charge an origination fee. State-specific minimum loan amounts may differ.
How to qualify
Regarding the requirements for its personal loans, Avant doesn’t give much information. Candidates cannot reside in any of the following states and must have a minimum credit score of 580.
- Hawaii
- Iowa
- Maine
- Massachusetts
- New York
- Vermont
- West Virginia
Best Egg: Best way to use collateral to get lower rates
4.8 ★★★★★ (2,595 User Ratings & Reviews)
APR range: 7.99% – 35.99%
Loan amounts: $2,000 – $50,000
Loan terms: 36 to 84 months
Origination fee: 0.99% – 9.99%
Minimum credit score: 600
PROS
- Fixtures inside the house, not the house itself, serve as collateral for secured loans.
- Flexible repayment terms
- In addition to secured loans, offers unsecured loans
CONS
- Charges origination fees
- Could lose home fixtures if you default on payments
- Must own your home for secured loans
- It may be more difficult to sell your home if Best Egg still has a lien against your fixtures.
Why we like it
Customers with poor credit can apply for cheaper rates on secured loans from Best Egg by pledging their household fixtures as collateral.
In 2023, Best Egg provided funding for almost 23,000 personal loans to FinanceProsper users.
Overview
Most lenders don’t offer secured personal loans, but Best Egg does. You can get lower rates even with less-than-perfect credit by using your home’s permanent fixtures as collateral. If you prefer, Best Egg also offers unsecured loans with APRs from 7.99% to 35.99%.
You must be a homeowner in order to be eligible for a secured loan from Best Egg. If you don’t make your loan payments, you might also lose any collateral you put on the loan.
How to qualify
- Be a U.S. citizen or permanent resident living in the U.S.
- Reach the state’s majority age
- Possess a physical address, email address, and personal checking account.
- Not live in the District of Columbia, Iowa, Vermont, West Virginia, or U.S. Territories
To be eligible for a Best Egg secured loan, you can use long-term home fixtures like bathroom vanities and built-in cabinets. It’s not necessary for Best Egg to assess your fixtures. Nevertheless, Best Egg will verify your eligibility by looking into your home equity and credit history.
LendingClub: Best for getting lower rates with a co-borrower
4.5 ★★★★☆ (7,056 User Ratings & Reviews)
APR range: 8.98% – 35.99%
Loan amounts: $1,000 to $40,000
Loan terms: 24 to 60 months
Origination fee: 3.00% – 8.00%
Minimum credit score: 600
PROS
- 15-day of grace if payments are delayed
- Permits you to obtain a loan from someone else
- Choice to make direct payments to creditors if money is being used to combine debt
CONS
- Charges an origination fee between 3.00% – 8.00%
- Can’t use loan for expenses related to education after high school
- Charges late fees
Why we like it
Unlike some of its competitors, applicants can apply for a personal loan jointly with a co-borrower through LendingClub.
Overview
On the internet marketplace LendingClub, you may borrow up to $40,000. With LendingClub, you can also modify the due date. However, before making any changes, make sure to understand how they might impact your interest rates.
Joint personal loans are another benefit that LendingClub provides to borrowers with bad credit. Some applicants with bad credit may find it easier to be approved for a personal loan if they have the option to add a co-borrower, and LendingClub claims that its lowest rates are reserved for borrowers with excellent credit.
How to qualify
- Have a 600 minimum credit score
- Be a U.S. citizen or permanent resident
- Be at least 18 years old
- Have a verifiable bank account
Happy Money: Best for Consolidating High-Interest Credit Card Debt
4.0 ★★★☆☆ (1,200 User Ratings & Reviews)
APR range: 11.72% – 17.99%
Loan amounts: $5,000 to $40,000
Loan terms: 24 to 60 months
Origination fee: 1.50% – 5.50%
Minimum credit score: 640
PROS
- No application or late fees
- No prepayment penalties
- Possibly have interest rates that are lower than credit cards.
CONS
- Can’t apply with a co-borrower
- The only purpose of loans is to settle credit card debt.
- Funding timeline can be slow
Why we like it
Happy Money specializes in helping you consolidate high-interest credit card debt into a potentially lower-rate loan.
Overview
Happy Money provides personal loans specifically designed to pay off credit card debt. If approved, funds are typically deposited within three to six business days, which is slower than some competitors.
How to qualify
- Minimum credit score of 640
- No recent payment delinquencies
- Cannot reside in Massachusetts or Nevada
The Bottom line
It’s very important to compare several lender options when you are getting a loan. This is particularly true if you don’t have good credit because interest rates differ greatly between lenders.
To obtain multiple quotes at once, you can also use an online loan marketplace. Just be sure you’re comparing apples to apples and that you take into consideration external factors such as customer feedback, funding duration, repayment options, and other relevant non-financial details.
FAQs
Which loan is the easiest to get even with poor credit?
Upstart is the best for personal loans with bad credit because it needs the lowest credit score. Almost everyone who used it on FinanceProsper recommends it, and they gave over 13,000 loans in 2023.
If my credit score is 500, can I still get a loan?
If you have a low credit score, you have fewer loan options. With a 500 credit score, you might still get approved for some loans, like installment loans that are made for people with bad credit. There may be no hard credit check required for these loans.
How can someone with such bad credit get a loan?
For poor credit, you can get personal loans but with higher interest and lower amounts, or secured loans where you use something valuable as a guarantee.
Can someone with poor credit get a $5000 personal loan?
Many lenders approve loans for people with bad credit, but these loans usually have higher interest rates and fees.
What is the fastest way to borrow the money?
You can get money quickly in different ways:
- Cash-advance apps: These apps let you borrow money before your next paycheck.
- Credit cards: Some credit cards let you borrow money without interest for a short time.
- Payday loans: These loans give you money fast but charge high interest.
