Best Personal Loans For Bad Credit of 2024

Racheal Vazquez

Finding a personal loan with bad credit is not easy. You may already be in debt, so you want to avoid borrowing further. In most cases, a person may apply for a personal loan to make a purchase that is too expensive to pay upfront.

Today, many banks and financial companies with online lending platforms can cater to all credit profiles. To help you choose a lender that provides personal loans for bad credit, we have compiled a comprehensive guide to get you started with the process.

Upstart Personal Loans

5.40% - 35.99%

Est. APR


Min. Credit Score

$1,000 - $50,000

Loan Amount


Upstart uses leading artificial intelligence techniques to make lending decisions based on additional variables such as income, education, and employment.

What we like

  • Loan disbursement within one business day
  • Fast application process
  • Rate check with a soft credit inquiry
  • Low minimum credit score requirement
  • No prepayment fees

What we don't

  • Limited loan terms
  • Origination fee
  • Late payment fee
  • Co-signer not allowed

Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000), NM ($5,100), OH ($6,000).

The full range of available rates varies by state. The average 5-year loan offered across all lenders using the Upstart platform will have an APR of 24.74% and 60 monthly payments of $26.35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $15,808 including a $591 origination fee. APR is calculated based on 5-year rates offered in April 2022. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. It is important to review your promissory note for these details before accepting your loan.

Although educational information is collected as part of Upstart’s rate check process, neither Upstart nor its bank partners have a minimum educational attainment requirement in order to be eligible for a loan.

If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.

SoFi Personal Loans

7.99% - 22.73%

Est. APR


Min. Credit Score

$5,000 - $100,000

Loan Amount


SoFi offers online personal loans that are ideal for people who want to borrow money at a low cost. You can use the loan for personal, family or household needs. Borrowers can't use the loan for real estate, business purposes, investments, purchase of securities, postsecondary education, or short-term bridge financing.

What we like

  • No prepayment fees, no origination fees, no late fees
  • High loan limits
  • Offers co-sign and joint loan options
  • Offers unemployment protection
  • Free career coaching and financing advice

What we don't

  • No borrowing below $5,000
  • No refinancing option
  • No secured loan option

Fixed rates from 7.99% APR to 22.73% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 8/1/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

Upgrade Personal Loans

6.95% - 35.97%

Est. APR


Min. Credit Score

$1,000 - $50,000

Loan Amount


Upgrade personal loan features include minimal fees and multiple usages, including refinancing credit cards, debt consolidation, home improvement, and major purchases. However, you can’t use it for post-secondary education expenses, investment gambling, or illegal activities.

What we like

  • Flexible loan amount between $1,000 - $50,000
  • Faster funding compared to banks
  • Min. credit score of 620
  • Allows secured, co-signed, and joint loans

What we don't

  • Origination fees
  • Only two loan terms, 3 or 5 years

* Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.46%-35.97%. All personal loans have a 1.85% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at

What are bad credit personal loans?

Bad credit personal loans are typically offered to customers with a credit score of 580 or less. These loans are usually intended for people who have experienced financial setbacks and need some extra cash to get back on their feet.

Bad credit personal loans are unsecure like any other personal loans but they will often come with higher APRs (annual percentage rate). Additionally, lenders tend to charge higher interest rates than they would on more traditional forms of financing like mortgages or auto loans. The APR is charged on the loan and includes both interest and fees paid by the borrower over the course of one year.

If you are looking for a way to improve your financial situation, one of the best ways to do so is by taking out a bad credit personal loan. These loans can help you rebuild your credit score over time and make it easier for you to get approved for other types of loans in the future.

Do you qualify for a personal loan for bad credit?

The following list can help you determine if you meet the criteria to apply for this type of loan:

  • A stable income: By earning a regular income, most lenders will see this as a plus because you will have funds to repay the loan. Lenders will also compare your debt-to-income ratio when they are deciding to provide you with a new loan. To prevent any financial setbacks, review your budget to ensure you are able to make your monthly loan payments without concern.
  • Your credit history has improved: Lenders will look at what where your current credit history stands and overlook a bad credit score knowing you have worked to resolve past issues. Any outstanding debts, bankruptcies, or tax liens should be resolved prior to committing to a new loan. By ensuring any old concerns will not interfere with payments on your new personal loan, a lender will be pleased.
  • Your financial status will improve: In some circumstances, a new personal loan can help with improving your financial situation. Lenders will take this into consideration, especially if it can help improve your credit. An example of this is getting a loan to consolidate any existing debt into a single fixed-rate loan. If the new loan has a lower interest rate, it could help you pay off your balance faster while also improving your credit along the way.

What can you use the personal loan for?

Whether you have bad credit or need to improve your score, there are many reasons why you might consider taking this loan. Here are some of the most common uses for a bad credit personal loan:

  • Debt consolidation: A bad credit personal loan is a great way to consolidate your debt. If you have multiple loans, focusing on one at a time may be helpful. Once you pay off the loan, saving your money in the long run will be easier.
  • Home improvement projects: If you have been putting off home improvements, a bad credit personal loan could be used to make these projects happen sooner rather than later. Whether you want to redo your kitchen or make some upgrades to your bathroom, there are plenty of ways that a bad credit personal loan can help you achieve this goal.
  • Vehicle repairs or replacement: If you need to get your car repaired, a bad credit personal loan can be a useful way to get the money you need. You can use it to fix your car if it breaks down on the side of the road or even if you have an accident and need to pay for repairs.
  • Medical expenses: Suppose you have an unexpected illness or injury that requires immediate medical attention. A bad credit personal loan is a great way to get the funds you need for your medical treatment(s).

Types of loans for bad credit

The following are some of the most common types of bad credit loans:

  • Unsecured personal loans: The most common type for people with bad credit is an unsecured personal loan. These loans don’t require collateral so they can be used for almost anything. You can use an unsecured personal loan to consolidate debt, pay off other debts, medical bills or student loans.
  • Secured personal loans: A secured personal loan is similar to an unsecured one, except that you put up collateral to secure the loan. The lender might ask you to put up a car title as collateral or pledge some other valuable property as security for your debt if you want a lower interest rate on your loan.
  • Home equity loans or HELOCs: A home equity loan (HEL) is a second mortgage that allows you to borrow against the value of your home. It can be an excellent way to get a lower interest rate and more funds than a home equity line of credit. You will still have the first mortgage on your property, but you’ll have access to additional money through the loan.
  • Car title loans: Car title loans are short-term, small dollar loans based on the value of your car. If you default on the loan, you risk losing your car—even if you make payments on time. You may also have trouble getting another car loan if lenders see that you have had a car repossessed in the past few years.
  • Payday loans: These are short-term loans that have high-interest rates. The borrower gets money for a few weeks and then has to repay the loan with interest. If you’re looking for a payday loan, read the fine print — some companies incredibly high fees or interest rates than state limits allow.

What is considered a bad credit score?

The most common credit scoring model, FICO, uses a 300-850 range. The higher your score, the better your credit history, and the more likely you will repay your debts.

FICO considers a credit score to be poor if it falls below 580. This is because people with scores in this range are more likely to miss payments and it costs lenders more money in losses from defaults and delinquencies.

A credit score of 680 or higher indicates that you have excellent credit and you can expect better interest rates when you apply for loans or other types of credit such as mortgages or car loans.

How to choose the best personal loans for bad credit

Here’s how to choose the best personal loans for bad credit:

  • Evaluate the interest rates: Interest rates are one of the most critical factors you should consider when choosing a personal loan for bad credit. The higher the interest rates, the more money you will have to pay back over time. So finding a lender that offers low-interest rates on their loans is essential.
  • Consider the eligibility criteria: Personal loans for bad credit are designed for borrowers who traditional lenders have turned down because of their poor credit history. However, some things to consider before applying for one of these loans, such as your income and debt-to-income ratio (DTI). The DTI ratio measures how much debt you have compared to your monthly income. If your DTI is too high, it may harm your chances of getting approved for a personal loan with bad credit history.
  • Ensure repayment flexibility: The best personal loans for bad credit offer flexible repayment terms and conditions so that you can repay them according to your budget. You should only consider applying for a loan if you have a sufficient monthly income to pay back what you owe. This can prevent you from going into further debt or having to make sacrifices in other areas of your life.
  • Check the documentation requirements: You can check the documentation requirements for a personal loan online or by calling your lender. This will tell you whether you’ll need to provide tax returns, pay stubs, bank statements, or any other documents to support your income and credit history.
  • Enquire about additional fees: Personal loans come with all sorts of fees, including application fees, origination fees, late payment penalties, and more. You should always ask what these fees are before applying and ensure they’re something you’re willing to pay. Some lenders have no application fee, while others charge up to $100 just to apply for their loan.