Best Loans for Bad Credit: Top 8 Loan Lenders Online

Bad credit loans are available to borrowers with low credit scores. Based on the FICO range of 300 to 850, credit scores below 579 are generally considered low. Although having a low credit score will restrict your lending options, it will not hinder your ability to get a personal loan completely.

You may qualify for bad credit personal loans from lenders that specifically tailor their lending solutions to bad-credit borrowers. Many lenders provide unsecured loans with fast funding and a simple application process. The APR, or annual percentage rate, will vary depending on the lender and your personal loan needs.

In this article, we researched the top loan lenders online to bring you the best bad credit personal loans. We chose the best and most reliable bad-credit personal loan providers based on various factors, including the application process, loan requirements, loan amounts, interest rates, speed of funds, terms and conditions, and more.

Here is a first look at the best bad credit loans:

  1. CashUSA: Best For Bad Credit Loans

  2. Lendfy: Best For Unsecured Loans Up To $10,000

  3. Advanceafy: Best For Quick Online Loans

  4. BadCreditLoans: Best For Debt Relief And Credit Repair

  5. Upstart: Best for Limited Credit History

  6. PersonalLoans: Best For Fast Funding (Up To $35,000)

  7. ZippyLoan: Best For Simple Personal Loans

  8. Money Mutual: Best For Payday Lenders

8 Best Loans For Bad Credit

CashUSA: Best For Bad Credit Loans

CashUSA is a loan matching service that connects lenders with bad credit borrowers. With various loan options and a reliable application process, this is an excellent place to get a bad credit loan.

  • Loan Amount: $500 to $10,000

  • APR: 5.99% to 35.99%

  • Origination Fee: Not specified

  • Available Term Lengths: 3 to 72 months

Pros & Cons


  • Widespread financial support system

  • Most personal loan funds are received within a single business day

  • Simple and fast loan application process

  • Free service

  • Over 25 years in the industry


Loan Verification Steps

The application process at CashUSA is quick and easy. It should only take you a few minutes to finish. You can apply for a loan with CashUSA online by filling out a short form and providing information about yourself, your location, your financial status, and your credit score/history. Depending on how many lenders are interested in your application, you could receive loan offers in as little as a few minutes after submitting your information.


CashUSA takes the security of its users’ personal information and financial details very seriously. The website has conventional encryption and security methods to protect its users’ personal information.


  • Minimum Age: At least 18 years old

  • Employment Status: Employed for at least 90 days

  • Minimum Annual Income: Varies by lender

  • You must have a checking account

Lendfy: Best For Unsecured Loans Up To $10,000

Lendfy is a peer-to-peer lending platform that makes it easier for people to borrow money. The site works with a network of lenders offering personal loans ranging from $100 to $10,000. If you can make your monthly payments on time, a short-term loan for a small amount of money through Lendfy can be a great option.

  • Loan Amount: $100 to $10,000

  • APR: Rates vary by lender

  • Origination Fees: Not specified

  • Available Term Lengths: Repayment terms are determined by lenders

Pros & Cons



Loan Verification Steps

Lendfy provides loan assistance through a comprehensive comparison tool that breaks down results by state. This does not inform you which lenders are in a given state, but it does tell you the maximum and minimum limits for short-term loans in your state. You can start by using this helpful comparison tool. Then, you can fill out an online application to connect with qualified lenders in your state.


There is no mention of qualifications on the site, like a minimum credit score. Lender discretion governs all borrower requirements and qualifications.

Advanceafy: Best For Quick Online Loans

You can send your information to a network of lenders through Advanceafy, and the lenders will use that information to determine whether or not they can provide you with a personal loan ranging from $100 to $10,000.

Various factors, including credit score, state laws, and lender requirements, will determine the borrower’s exact loan amount, terms, and APR.

  • Loan Amount: $100 to $10,000

  • APR: Rates vary by lender

  • Origination Fees: Generally between 1% to 8% of the total amount of the loan

  • Available Term Lengths: Depend on individual lender requirements and state laws

Pros & Cons



Loan Verification Steps

You can get the money you need in as short as one business day when you use Advanceafy to speed up the lending process. To do so, fill out the simple and secure online form on the Advanceafy website. Advanceafy will then connect you with its extensive network of certified lenders.


  • Minimum Age: 18 years or older

  • Minimum Annual Income: Varies by lender

  • You can’t have an open bankruptcy case

  • You must have a checking account, a valid Social Security number, and a steady source of income

BadCreditLoans: Best For Debt Relief And Credit Repair

BadCreditLoans is a loan-connecting service for borrowers who need help with debt consolidation, debt relief, and credit score repair. This free service collaborates with an extensive network of lenders with varying interest rates, repayment periods, and other terms. You can get a direct deposit of cash into your account as soon as the following business day with BadCreditLoans.

  • Loan Amount: $500 to $10,000

  • APR: Each individual lender will determine the rate of your loan

  • Origination Fees: Generally between 1% to 8% of the total amount of the loan

  • Available Term Lengths: The terms of your loan will be determined by the lender you choose, your credit history, and the amount you want to borrow. Most BadCreditLoans have repayment periods between 3 to 36 months.

Pros & Cons



Loan Verification Steps

To apply for a loan on BadCreditLoans, you must complete a few steps that don’t cost you anything. Simply fill out the online form and see if you get a loan offer from their network of lenders.

Because this site works with numerous lenders, your chances of getting matched with one are great. But, keep in mind that not all borrowers with bad credit who apply at BadCreditLoans will be approved for a loan. If you don’t qualify for a loan through one of BCL’s network lenders, they will help you get one through a different source.


  • Minimum Age: 18 years or older

  • Income: Provide proof of regular income, either from full-time employment, self-employment, or disability benefits

  • You must have a checking account in your name, provide proof of citizenship, and give your phone number and email address

Upstart: Best for Limited Credit History

Upstart is a technology-powered lending platform that partners with credit unions and banks. Loans approved through Upstart are based on unique criteria such as employment and education. They even have faster-than-average processing and funding times compared to other bad credit loan companies.

  • Loan Amount: $1,000 to $50,000

  • APR: 5.42-35.99%

  • Origination Fee: 0% to 10% of the loan amount

  • Available Term Lengths: 3 to 5 years

Pros & Cons


  • Obtain an online personal loan in as little as one business day

  • Great option for first-time borrowers

  • Flexible payment dates.

  • A soft credit check is an option when pre-qualifying

  • Non-conventional loan qualifications


Loan Verification Steps

To apply for a loan, click “Check My Rate” on Upstart’s homepage to begin the pre-qualification process. You can then look over the available loan options and pick the one that best suits you.

Upstart is known for its innovative approach to underwriting, which sets it apart from other bad credit loan companies. Standard loan providers and financial institutions look almost solely at borrowers’ financial history, including their credit score, debts, income, and assets. Upstart borrowers are pre-qualified using AI and non-traditional data like college attendance and employment history.


Upstart evaluates more than 1,000 data points when determining loan eligibility. Here are the primary loan qualifications:

  • You must be a United States citizen

  • You must be at least 18 years or older

  • You must provide an email address

  • Social Security number, name, and birth date all need to be verified

  • You must be working full-time currently or planning to do so within the next six months

  • You must have access to a checking or savings account

PersonalLoans: Best For Fast Funding (Up To $35,000)

PersonalLoans has relationships with dozens of lenders who offer personal loans. Standard requirements for each of these loans will vary according to the lender. PersonalLoans notes that most of its lenders have a 580 minimum credit score requirement. If your credit score is lower than 580, you can still apply through the platform and try to find a lender willing to work with you.

The loan amounts available on this site range from $1,000 to $35,000. This makes PersonalLoans an excellent option for applicants with poor credit who need a substantial sum of money immediately.

  • Loan Amount: $1,000 to $35,000

  • APR: 5.99% to 35.99% (Rates will vary by lender)

  • Origination Fee: 1% to 5% of the loan amount

  • Available Term Lengths: 3 months to 72 months

Pros & Cons


  • Faster than average funding time

  • Easy credit check

  • Provides access to loans from a variety of lenders

  • The online application is easy and quick to complete


Loan Verification Steps

PersonalLoans could help if you’ve tried to get an unsecured or secured loan before without success. You have a better shot of being approved for a loan because of the company’s vast network of trustworthy lenders and other third-party loan companies.

The application process is quick and straightforward. You will be asked to provide your SSN, proof of income and steady employment, and rationale for the loan. It’s easy to fill out the application, and the website offers detailed instructions.


You must:

  • Be at least 18 years old

  • Have a valid Social Security number

  • Be a US citizen or permanent resident

  • Have a steady source of income

  • Not be more than 60 days behind on any outstanding debts

ZippyLoan: Best For Simple Personal Loans

ZippyLoan is a secure and free service that connects borrowers with lenders who offer a variety of personal loans.

  • Loan Amount: $100 to $15,000

  • APR: Rates vary by lender

  • Origination Fee: No origination fee

  • Available Term Lengths: Loan periods up to 60 months

Pros & Cons


  • Simple and fast personal loans

  • Loan amounts up to $15,000

  • 5-minute online application


Loan Verification Steps

ZippyLoan welcomes applications from people with a wide range of credit scores. The site has a 5-minute online form where you must specify the amount of cash needed and provide your zip code and email address.


The following items are required from applicants before they are considered:

  • Individual checking or savings account in good standing at the time of application

  • Bank statements from within the last few months

  • Proof of citizenship or US residency

  • Proof of steady income

MoneyMutual: Best For Payday Lenders

MoneyMutual connects borrowers with lenders offering short-term payday loans and cash advances.

MoneyMutual is a marketplace, not a direct lender. The website has a vast network of lending partners. You can find out if you qualify for a loan by filling out the online form and then waiting for lenders to contact you.

  • Loan Amount: Up to $5,000

  • APR: Rates vary by lender

  • Origination Fee: Not specified

  • Available Term Lengths: Between 3-60 months

Pros & Cons


  • Various short-term loan options

  • Reliable lender network

  • Fast funding, often within 24 hours

  • Quick and easy online form

  • More than 2 million previous customers


Loan Verification Steps

MoneyMutual only asks for the essential details to determine if you qualify for a loan. Once you submit the online application for a loan, a lender will analyze your information and decide whether to extend a loan offer within minutes. You can get up to $5,000 in funding. If the interest rate and other loan details meet your needs, you can accept them. You will then proceed directly with the lender (not MoneyMutual).


You need to meet these requirements to get prequalified on MoneyMutual:

  • Have a valid government-issued photo ID

  • Be at least 18 years old

  • Be a U.S. citizen or permanent resident

  • Maintain a consistent monthly income of $800

  • Provide your Social Security number

  • Have a personal checking account

  • Provide your phone number and email

What Is A Bad Credit Loan?

A bad credit loan is for someone with a low credit score (often below 579) and does not meet the minimum credit score requirement from a traditional bank or credit union. Bad credit loans work the same as any other loan. You will borrow money from a lender and pay fixed monthly payments based on the loan amount, the length of the loan term, and the interest rate.

There are many types of bad credit loans, such as payday loans, unsecured loans, and debt consolidation loans. Unsecured personal loans are the most common. With an unsecured loan, you won’t need to put up any collateral, so the interest rate given by the lender may be higher. The loan amount may also be lower compared to more traditional loan types.

If you need money quickly and have a low credit score, bad credit personal loans may be your only option.

Ranking Criteria For Loans With Bad Credit

Here are the main factors we considered when choosing the best loans for bad credit:

Lender Reputation

The credibility of the lending institution is essential. To check for lender reputation, we looked at government resources like the Financial Protection Bureau, the Consumer Complaint Database, and review sites for customer feedback. Choosing a trustworthy lender is essential, so this type of research is also necessary.


Another important consideration is the requirements of the lender. Most require a minimum credit score, a certain debt-to-income ratio, a steady source of income, and other financial qualifications. Depending on the lender, you may also need to meet additional criteria before applying. Almost all require you to be at least 18 years old and a US citizen or permanent resident. You must also have a checking bank account, a working phone number, and an active email address. But, every financial institution and lender has its own criteria for evaluating potential borrowers. Hopefully, you meet all the requirements to apply.

Loan Amount

When evaluating different lenders and loan companies, we carefully considered both the maximum and minimum loan amounts provided. The minimum loan amounts from most internet lenders range from $500 to $2,000, while the highest loan amounts are between $5,000 to $50,000 on average. Your credit score, financial history, and existing debt will be significant deciding factors in determining the loan terms, amount, and interest rate offered to you. When deciding on a lender, check to see if they provide the loan amount you want.

Loan Terms

Loan terms broadly describe the details of the loan. The terms and conditions often outline the repayment terms, the interest rate, fees associated with the loan (i.e., origination fee and prepayment penalties), and any other special conditions that apply. Always review the loan terms carefully and understand your obligations to pay back the owed money.

Interest Rate

The interest rate is the most crucial factor to consider. It’s what a lender charges for the amount loaned. The annual percentage rate, or APR, is a measure of the cost of a loan over a year. Unlike the interest rate, however, it includes other charges and fees. Therefore, the APR should be prioritized over the interest rate when evaluating personal loan providers.

Speed of Funds

In the event of a sudden and unforeseen financial crisis, the speed of funds is critical. That’s why we checked how long it took for each online lender to issue the money. Most take around 1-3 business days in total. If you need cash ASAP, use a lender that can fund your loan the following business day. Some lenders even offer same-day funding. Remember, however, that funding timeframes are not guaranteed and may vary depending on your personal circumstances.

Application Process

There are a variety of online loan applications available nowadays that can be completed in a matter of minutes. Some can even tell you if you are pre-qualified for a loan instantly. Ultimately, the application process for an online loan is simple and requires basic details such as your name, income, address, and other relevant information.

Steps For Getting A Loan For Bad Credit

It’s easy to apply for a personal loan, even with low credit. Below are the steps for getting a loan for bad credit:

  1. Choose Your Loan Type: Consider your options and determine which type of loan best suits your financial situation. Many loans are available to bad credit borrowers, such as debt consolidation loans, payday loans, and more.

  2. Start The Application Process: The bad credit loan services mentioned in this article offer the entire loan application process online. Every service is different in terms of what information is required on the application, but you’ll likely need to provide your full name, contact information, and income and financial information.

  3. Browse Loan Rates: Take your time and shop around for the best interest rate possible. One online lender may offer you a better rate than another.

  4. Pick Your Lender: After evaluating different loan rates, pick the lender that gives you the best offer.

  5. Accept The Loan Offer: Finally, you can accept the terms and sign the loan documents. You should then get the funds deposited into your bank account within a few business days.

Rates And Fees For Bad Credit Loans

The rates and fees for bad credit loans vary depending on the borrower’s financial details. Every lender establishes specific criteria for loan approval, which may include a minimum credit score requirement. Because of this, it is difficult to anticipate precisely what annual percentage rate (APR) you will be granted for a personal loan if you have poor credit. Your credit score is typically considered poor if your FICO score is lower than 579. You will likely be offered higher rates and fees if that’s you.

Main Requirements For Getting A Payday Loan

Below are the main requirements for getting a payday loan:

Bank Account

Lenders are more likely to overlook a low credit score if the borrower can demonstrate that they have taken steps to improve their financial situation. This usually indicates that you have no outstanding debt, no judgments (such as tax liens), and no pending or settled bankruptcies. It also helps if you have a checking or savings account. The point is to ensure that your current financial situation will make it possible for you to repay the new loan.

Steady Income

Before approving your application for a new loan, most financial institutions and online lenders want to ensure that you have sufficient income to repay the loan. They will do this by checking whether you have a steady source of employment and income. Before moving forward with the application process, it is recommended that you examine your finances and determine whether you can afford the loan and make the required monthly payments without difficulty.

ID Verification & Personal Information

When applying for a personal loan online, lenders will not only ask to see proof that you are a responsible borrower and can afford to repay the loan amount but also that you provide proper identification and other personal information. Gathering the necessary application information ahead of time will help to speed up the application process for loans for bad credit. The most commonly required documents and personal information is:

  • Your name and date of birth

  • Your contact information

  • Your Social Security number (SSN) or proof of permanent residence

  • The name of your current employer and their contact information

  • Proof of steady income (pay stubs, tax returns, etc.)

  • Details about outstanding loans and current debt

What To Avoid When Getting A Loan For Bad Credit

Below are the main things to avoid when applying for a bad credit loan:

Credit Score & Credit History

Most personal loan lenders will look at your credit score and history as part of the loan application process. This indicates the likelihood that you will pay off the debt in the future. Even if you have a low credit score or no credit history, checking your credit report before applying for a loan is a good idea. Then, you will know whether you will be considered a risky borrower in the eyes of lenders and can try to improve your credit before taking out the loan.

Additional Debt

Racking up outstanding debt before applying for a bad credit loan is not a good idea. Your debt-to-income ratio (how much debt you’re paying off vs. how much money you make) is a significant factor that lenders consider when reviewing your loan application.

Existing Bills & Expenses

If you have a bad credit score, one of the worst things you can do is fall behind on your current bills. Doing so could lower your score even further. Plus, if you’re a bad credit borrower and your payment history shows that you pay your bills on time, lenders may be more likely to extend an offer.

Lender Reputation & License

In order to borrow money legally, a bad credit loan company needs to be registered in your state. Not some of the most reputable lenders are not licensed in every state, which makes it that much more important to check the lender’s license and reputation. Additionally, make sure the lender is legally allowed to do business by the major credit bureaus (Equifax, Experian, and TransUnion) before applying.

Terms & Conditions

Read the loan terms and conditions carefully before signing on the dotted line. Ensure the repayment period, interest rate, loan amount, and applicable fees (prepayment penalties) are all correct. If something is incorrect or you want to renegotiate the terms of the loan, don’t be afraid to re-address the terms and conditions of the loan contract.

Types of Loans For Bad Credit

There are many different types of personal loans for bad credit, such as:

Unsecured Loans

An unsecured loan refers to any loan that does not require collateral by a lien or assets of the borrower. Many credit unions and non-traditional online lenders offer unsecured personal loans to those with low credit scores. Because a lender takes on more risk when a borrower has poor credit, and the loan isn’t backed by collateral, they might charge a higher interest rate.

Secured Loans

On the other hand, a secured loan is backed by an asset (or multiple assets) you own as collateral for the loan. Mortgages, home equity loans, auto loans, and home equity lines of credit are all examples of secured loans. These loans are often harder for borrowers with poor credit to obtain, though not impossible.

Credit Cards

Most financial institutions now offer credit cards. For those with poor credit, some cards even have tools built in to assist with credit repair and improvement. Credit cards are a convenient and safe method of borrowing, and they can help you build credit if you use them wisely. But, the annual percentage rate (APR) is typically relatively high. To avoid paying interest, you can pay off the credit card debt before the monthly bill is due.

Cash Advances

A credit card cash advance is an advance of cash from your credit card account. Basically, you’re borrowing money from your credit card to get cash quickly. Credit card cash advances are offered by most financial institutions, as well as by some banks and alternative online lenders. Cash advances often have higher fees and interest rates than secured personal loans and lower fees and rates than bad credit and payday loans.

Payday Loans

A payday loan refers to a short-term, unsecured loan that often has a high-interest rate. The loan amount is generally only $500 or less, and as the name suggests, it’s supposed to be repaid by your next payday. Despite their widespread availability, payday loans are not an excellent financial choice because of their high-interest rates. It’s strongly recommended that you look elsewhere for financial assistance rather than rely on payday loans.

Best Loans For Bad Credit FAQs

How Are Loans For Bad Credit Mainly Used?

Bad credit loans are mainly used by borrowers with poor credit to help with emergency expenses and unforeseen bills, as well as debt consolidation and credit repair. However, you can use borrowed money for anything you want. Loan applications may or may not require you to explain how you intend to use the money.

Is There A Way To Get An Instant Loan With A Bad Credit Score?

Yes, there is a way to get an instant loan with a bad credit score. Although it may be more challenging to obtain a loan with poor credit than with good credit, a large number of lenders will service borrowers with less-than-perfect scores. As long as you have a stable income and aren’t behind on any other bills, getting a personal loan shouldn’t be too difficult (even if you have low credit). However, you may need to fix outstanding credit and financial issues, such as loan defaults or collections, before applying for a personal loan. Doing so will also help to lower your interest rate for the loan.

What Is A Bad Credit Score?

According to FICO, a bad credit score ranges from 300-579, a fair credit score ranges from 580-669, a good credit score ranges from 670-739, a very good credit score ranges from 740-799, and an exceptional credit score ranges from 800-850. If you have bad credit, you may be given lower loan amounts and credit limits, higher interest rates, and stricter repayment terms.

Is It Possible To Get An Online Loan For Bad Credit Without A Credit Check?

It is only possible to get an online loan for bad credit with a soft credit check, at the very least. A soft credit check, also known as a soft inquiry or credit pull, occurs when you authorize someone like an online lender or credit card issuer to check your credit report. Luckily, soft checks will not impact your credit score at all.

Bottom Line

If you meet the minimum requirements, you can apply for a bad credit loan with any of the services mentioned in this article. A bad credit loan provides a financial opportunity to borrowers with a poor credit score or no credit history.

And if your credit score isn’t where you would like it to be, there are simple steps you can take to improve it and see results quickly.

Disclaimer: This article does not give financial advice. Speak with a financial advisor if you need financial assistance.

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