Upstart is the overall editorial pick because its underwriting may consider more than a traditional credit score. Upgrade may suit borrowers considering a co-signer or debt consolidation. Avant may appeal to applicants seeking accessible qualification and faster funding, while Universal Credit offers credit-building tools.
Best Egg is worth reviewing only if a borrower understands secured-loan risk. Prosper supports joint applications, and Happen Bank may fit borrowers comparing flexible loan amounts and repayment terms. Bad credit loans often carry much higher APRs than loans for strong-credit borrowers, so compare APR and total repayment instead of approval alone.
Start with a careful comparison
Review available offers, APRs, fees, and repayment costs before choosing a lender. Prequalification may use a soft credit check, but it does not guarantee final approval.
What the Top-Ranking Pages Do Well With CTAs
The supplied SERP pages are Experian, Bankrate, and BadCredit.org. Their HTML text was not included, so exact CTA labels and placements require live-page verification before publication. Their page types indicate three related strategies: trusted financial education, commercial comparison, and lender or offer discovery.
Experian
Primary goal: inform and generate leads through a trusted credit brand. The likely audience is B2C borrowers who are researching options and may also want credit education.
- Likely offer: lender comparison or rate-check journey.
- Desired action: click to review options or prequalify.
- Effective tone: reassuring, educational, and risk-aware.
- Best placement: early summary, lender list, and comparison conclusion.
Bankrate
Primary goal: commercial investigation supported by editorial guidance. The audience is a warm B2C prospect comparing APRs, fees, loan amounts, and eligibility.
- Likely offer: lender marketplace or product comparison.
- Desired action: check rates, compare offers, or visit a lender.
- Effective tone: direct but not aggressive.
- Best placement: product cards, tables, and lender reviews.
BadCredit.org
Primary goal: generate leads from borrowers with urgent or limited options. The audience may be a hotter prospect who wants a fast path to an application.
- Likely offer: online lender or lead-generation path.
- Desired action: submit information or begin prequalification.
- Effective tone: accessible, urgent, but still compliant.
- Best placement: above the fold, after product summaries, and at review endings.
Common CTA patterns in this search niche
- Rate-check buttons are more credible than “Apply now” buttons because they reduce commitment.
- Buttons often appear beside a product summary or immediately after eligibility details.
- Short CTA copy works best on mobile devices.
- Users respond better when a CTA explains whether the initial credit check is soft.
- Trust improves when drawbacks, fees, and state restrictions appear near the action.
Best Personal Loans for Bad Credit: Quick Picks
Best overall — Upstart
Alternative underwriting may consider education, income, employment, and other factors beyond a traditional credit score. Terms and availability vary.
Best with a co-signer — Upgrade
May fit borrowers comparing a co-signer option, debt consolidation, and direct creditor payment. A co-signer does not guarantee approval.
Best for fast funding — Avant
May suit borrowers seeking a relatively accessible online application and potentially quick funding after approval.
Best for credit-building tools — Universal Credit
Offers tools that may help borrowers monitor credit. On-time payments may help over time, but missed payments can hurt credit.
Best secured option — Best Egg
May offer a secured structure in some circumstances. Collateral can be at risk if the borrower does not repay.
Best joint loan — Prosper
May suit borrowers applying with a joint applicant. Both applicants should understand their contractual responsibility.
Compare before you apply
A lower monthly payment can still cost more over a longer loan term. Compare APR, origination fees, net proceeds, and total repayment.
Initial Lender Comparison
Rate information is time-sensitive. Replace every estimated figure with a current official disclosure before publication. A lender may offer different terms based on credit history, income, debt-to-income ratio, state, loan amount, and other underwriting factors.
| Lender | Best for | Estimated/current APR range | Loan amounts | Repayment terms | Origination fee | Minimum credit score where disclosed | Soft prequalification | Co-signer | Joint application | Secured loan option | Direct creditor payment | Funding speed | State availability | Primary drawback |
| Upstart | Overall comparison | Verify current terms; independent September 2026 research cited 6.60%–35.99% | $1,000–$75,000, subject to verification | Verify current terms | Varies by borrower | No stated universal minimum | Available where disclosed | Verify current availability | Verify current availability | Not a standard assumption | Verify | Varies by lender partner | Varies | Origination fee and high-end APR risk |
| Upgrade | Co-signer or debt consolidation | Verify current terms | Verify current terms | Verify current terms | 1.85%–9.99%, subject to verification | Not publicly disclosed as universal | Available where disclosed | Verify contract terms | Verify contract terms | Verify | Available for eligible debt consolidation | Varies | Varies | Fee reduces loan proceeds |
| Avant | Accessible qualification and funding | 9.95%–35.99%, verify current terms | $2,000–$35,000, verify current terms | Verify current terms | Verify current terms | Approximately 550 in cited analysis; not a guarantee | Available where disclosed | Verify | Verify | Verify | Verify | May be fast after approval | Varies | High APR risk |
| Universal Credit | Credit tools | 11.69%–35.99%, verify current terms | $1,000–$50,000, verify current terms | Verify current terms | Verify current terms | Around 560 in some methodologies; not universal | Available where disclosed | Verify | Verify | Verify | Available where eligible | Varies | Varies | Fees and high-end APR risk |
| Best Egg | Secured option | 6.99%–35.99%, verify current terms | $2,000–$50,000, verify current terms | Verify current terms | Approximately 0.99%–9.99%, verify | Not publicly disclosed as universal | Available where disclosed | Verify | Verify | Available only under applicable terms | Verify | Varies | Varies | Collateral risk |
| Prosper | Joint applications | 8.99%–35.99%, verify current terms | Up to $50,000 depending on eligibility | 2–6 years | 1%–9.99% | Subject to underwriting | Available where disclosed | Not interchangeable with joint applicant | Available where disclosed | Verify | Verify | Varies | Varies | Joint applicant shares responsibility |
| Happen Bank | Flexible amounts and terms | Verify current terms | $1,000–$75,000, verify | 2–7 years, verify | Up to approximately 8%, verify | Not publicly disclosed | Verify | Verify | Verify | Verify | Verify | Varies | Varies | Rebrand and terms require current verification |
How We Evaluated the Best Bad Credit Personal Loans
- Loan amounts and term flexibility — 10%.
- Co-signer, joint, and secured options — 5%.
- Funding speed — 5%.
- Customer experience and consumer protections — 5%.
Affordability receives more weight than easy access. A loan that is easy to obtain but extremely expensive should not automatically rank highly.
Upstart — Best Overall Personal Loan for Bad Credit
Best for
Borrowers with damaged or short credit histories who want an underwriting model that may consider more than a traditional credit score.
APR and amounts
Independent September 2026 research cited approximately 6.60%–35.99% APR and $1,000–$75,000. Verify official terms before publishing. The lowest APR is not promised to applicants with low scores.
Credit considerations and fees
Upstart operates as an AI-enabled lending marketplace or platform and works with bank and credit-union lending partners. Underwriting may consider credit history, income, education, employment, debt, loan amount, state, and other factors. An origination fee can reduce loan proceeds.
Funding and availability
Funding speed, repayment terms, secured options, and state availability depend on the lending partner and approved offer.
Pros
- May consider alternative underwriting data.
- May serve some thin-credit borrowers.
- Online rate-check path may be available.
Cons
- Origination fees may reduce proceeds.
- High APRs can create substantial interest.
- Terms vary by partner and borrower.
Bottom line
Upstart is a strong starting point for comparison, not a guarantee of approval or a low rate.
Check your Upstart rate
Review the offer details, including APR, origination fee, payment, and total repayment.
Upgrade — Best for Co-Signed Loans and Debt Consolidation
Best for
Borrowers comparing personal loans with a co-signer, direct creditor payment, and debt consolidation features.
APR, co-signer, and debt consolidation
A stronger co-signer may potentially improve qualification or pricing, but does not guarantee approval. A co-signer and a joint applicant are not always the same under the contract.
Fees
Current official disclosures state an origination fee of 1.85%–9.99%, subject to verification. The fee is deducted from proceeds. If a borrower takes a $10,000 loan with a 5% origination fee, approximately $500 may be deducted before funds are delivered.
Pros
- May support debt consolidation.
- May offer direct creditor payment.
- May provide credit-related tools.
Cons
- Fees can reduce usable funds.
- Co-signer responsibility can be serious.
- Rates and terms vary by borrower.
Bottom line
Compare Upgrade with other lenders after calculating the net proceeds and total borrowing cost.
Compare Upgrade options
Check whether a co-signer or debt-consolidation feature fits your financial situation.
Avant — Best for Fast Funding and Lower-Income Borrowers
Best for
Applicants seeking an online application, relatively accessible qualification, and potentially quick funding after approval.
APR, amounts, and eligibility
NerdWallet research cited approximately 9.95%–35.99% APR, $2,000–$35,000, a 550 score used in its analysis, and approximately $1,200 in monthly net income. Verify every figure before publication. Meeting a stated figure does not mean every applicant will qualify.
Funding and fees
Funding speed, terms, origination fees, mobile features, and state availability vary. The upper end of the APR range can make a loan expensive.
Pros
- May serve some lower-income borrowers.
- Online prequalification may be available.
- May provide fast funding after approval.
Cons
- High APR risk.
- Eligibility figures are not guarantees.
- Fees and state rules vary.
Bottom line
Avant can be useful for comparison, but borrowers should test whether the monthly payment is affordable at the offered APR.
Check Avant rates
Review the full offer instead of focusing only on funding speed.
Universal Credit — Best for Credit-Building Tools
Best for
Borrowers who want credit monitoring or score tools alongside a personal loan comparison.
APR, tools, discounts, and fees
Independent data cited approximately 11.69%–35.99% APR and $1,000–$50,000. Some publisher methodologies cite a minimum score near 560. Verify official requirements. Universal Credit is related to Upgrade, but current product terms should be reviewed separately.
Autopay discounts, creditor-payment discounts, direct creditor payments, funding, and origination fees depend on current disclosures and eligibility. On-time payment history may help credit over time, while missed payments can damage credit.
Pros
- Credit monitoring may aid borrower awareness.
- May offer direct creditor payment.
- May suit thin-credit comparisons.
Cons
- Credit improvement is not guaranteed.
- APR and fees can be high.
- Product terms may change.
Bottom line
Use the credit tools as a monitoring aid, not as a reason to accept an unaffordable loan.
Review Universal Credit
Compare the APR, fees, payment, and credit-tool terms before applying.
Best Egg — Best Secured Personal Loan for Bad Credit
Best for
Borrowers who may consider secured borrowing and understand that collateral can be at risk.
Secured option, APR, and amounts
Independent data cited approximately 6.99%–35.99% APR, $2,000–$50,000, and a 0.99%–9.99% origination fee. Verify current terms. Secured and unsecured availability may differ by borrower and state.
Risks
If collateral secures the loan, failure to repay can place the pledged asset at risk. Do not choose a secured loan solely because it may appear easier to obtain. Review home-fixture collateral terms, creditor payment, repayment terms, and funding disclosures carefully.
Pros
- May provide a secured option.
- May offer larger loan amounts for eligible borrowers.
- Prequalification may be available.
Cons
- Collateral loss is a serious risk.
- Fees may reduce proceeds.
- Terms vary by applicant.
Bottom line
Consider Best Egg only after comparing an unsecured option and confirming that the payment remains affordable.
Review secured-loan terms
Read the collateral, default, fee, and repayment provisions before choosing this structure.
Prosper — Best for Joint Personal Loans
Best for
Borrowers who may apply with a joint applicant whose income and credit history could affect underwriting.
APR, joint loans, fees, and amounts
Current official disclosures state approximately 8.99%–35.99% APR, two- to six-year terms, a 1%–9.99% origination fee, and loans up to $50,000 depending on eligibility. Personal loans through Prosper are currently made by WebBank.
A joint applicant may affect underwriting, but adding another applicant does not automatically reduce the APR. Both parties should understand whether the contract makes them responsible for repayment.
Pros
- Joint application option may help some households.
- Clear term comparison is possible.
- Soft prequalification may be available.
Cons
- Joint responsibility can affect both applicants.
- Origination fees reduce proceeds.
- Rates depend on underwriting.
Bottom line
Prosper may fit a joint-loan comparison, but applicants should discuss repayment responsibility before submitting an application.
Check Prosper options
Review joint-loan responsibility, APR, fees, and total repayment together.
Happen Bank — Best for Flexible Loan Amounts and Terms
Best for
Borrowers comparing a broad range of loan amounts and repayment terms.
Amounts, terms, fees, and creditor payment
Independent September 2026 research reports approximately $1,000–$75,000, two- to seven-year repayment terms, and an origination fee up to approximately 8%. Verify current official disclosures. Happen Bank is the current brand name following LendingClub’s 2026 rebrand where relevant; do not rely on outdated LendingClub product pages.
APR, soft prequalification, direct creditor payment, rate discounts, joint applications, funding, and state availability require current verification. A longer term can reduce the monthly payment while increasing total interest.
Pros
- Broad amount and term range may aid comparison.
- Debt-consolidation features may be available.
- Online application path may be available.
Cons
- Terms and brand information are time-sensitive.
- Origination fees may reduce funds.
- Long terms can increase interest.
Bottom line
Happen Bank may fit borrowers who need flexibility, but compare total repayment across several terms.
Compare Happen Bank terms
Check the current APR, fee, amount, term, and net proceeds before accepting an offer.
Upstart vs Upgrade vs Avant vs Universal Credit vs Best Egg vs Prosper vs Happen Bank
| Lender | Credit profile | Soft inquiry | Co-signer or joint option | Secured option | Direct creditor payment | Best use case | Main drawback |
| Upstart | Alternative or thin-credit underwriting may be considered | Verify current process | Verify | Verify | Verify | Broad initial comparison | Fees and high APR risk |
| Upgrade | Poor to fair credit comparison | Available where disclosed | Co-signer option may be available | Verify | May be available | Debt consolidation | Origination fee |
| Avant | Some lower-score applicants may be considered | Available where disclosed | Verify | Verify | Verify | Potentially faster funding | High APR |
| Universal Credit | Poor or thin credit comparison | Available where disclosed | Verify | Verify | May be available | Credit tools | No guaranteed credit improvement |
| Best Egg | Subject to underwriting | Available where disclosed | Verify | May be available | Verify | Secured comparison | Collateral risk |
| Prosper | Joint underwriting may be considered | Available where disclosed | Joint loan | Verify | Verify | Joint application | Shared responsibility |
| Happen Bank | Subject to current underwriting | Verify | Verify | Verify | Verify | Flexible amount and term | Time-sensitive brand disclosures |
Compare bad-credit loan offers
Use the table to narrow your options, then compare the complete contract and total borrowing cost.
What Is a Personal Loan for Bad Credit?
A personal loan for bad credit is generally a loan marketed or made available to consumers whose credit profile makes traditional prime lending harder. It is not a special legal loan category. An unsecured loan does not require collateral, while a secured loan is backed by an asset.
What counts as bad credit?
Definitions differ by lender and scoring model. Some consumer-finance publishers commonly use a FICO score below approximately 630 as an editorial reference point, but no single number is a universal legal definition.
Lenders may use FICO, VantageScore, proprietary underwriting, income data, alternative data, credit history, employment stability, existing debt, loan amount, state, and debt-to-income ratio. Thin credit and no credit history personal loans may be evaluated differently from damaged credit.
Fixed APR and repayment
Many personal loans have a fixed annual percentage rate, fixed monthly payment, and defined loan term. Read the contract for late fees, returned payment fees, prepayment rules, and the exact repayment schedule.
How Much Does a Bad Credit Personal Loan Cost?
Applicants with lower credit scores often receive APRs toward the upper end of a lender’s range. The examples below are hypothetical and use a $5,000 loan over 36 months with no origination fee.
| Hypothetical APR | Monthly payment | Total interest | Total repayment |
| 15% | Approximately $173 | Approximately $1,227 | Approximately $6,227 |
| 25% | Approximately $199 | Approximately $2,162 | Approximately $7,162 |
| 35% | Approximately $227 | Approximately $3,183 | Approximately $8,183 |
APR versus interest rate
The interest rate measures borrowing interest, while APR can also reflect certain fees. APR is usually the better comparison tool when origination fees are present, but review the disclosure for included costs.
Fees to watch
Common charges include origination fees, late fees, returned payment fees, and possible prepayment penalties. A $10,000 approved amount with an 8% origination fee produces net proceeds of approximately $9,200, while repayment obligations are based on the contractual loan amount.
Can You Check Bad Credit Loan Rates Without Hurting Your Credit?
Prequalification commonly uses a soft credit inquiry, which generally does not affect a credit score. A formal application may use a hard credit inquiry. Confirm the lender’s process before submitting information.
Prequalification is not final approval. The lender may verify income, employment, debt, identity, credit history, requested loan amount, state, and other information before making a final offer.
What credit score do you need?
Some borrowers with scores below 580 may find options, while others with scores from 580 to 629 may receive different offers. Fair credit, thin credit, and no traditional score can also lead to different underwriting decisions. No score guarantees qualification.
How DTI affects an offer
Debt-to-income ratio compares monthly debt obligations with gross monthly income. A higher DTI may affect approval, loan amount, or APR, but lenders do not share one universal maximum.
Secured vs Unsecured Loans for Bad Credit
Unsecured loan
No pledged asset is normally required. Qualification may depend more heavily on credit history, income, debt, and underwriting. APR can be higher for poor-credit borrowers.
Secured loan
An asset supports the loan. Collateral may affect qualification or pricing, but failure to repay can place the asset at risk.
Borrower protection
Review default rights, fees, payment timing, collateral terms, and state disclosures. Do not choose secured borrowing only because approval appears easier.
Co-signer versus joint applicant
A co-signer generally supports the borrower’s application and may become responsible if the borrower fails to pay. A co-borrower or joint applicant usually applies for the loan and may share responsibility from the beginning. The contract controls, so do not treat these terms as interchangeable.
Can You Consolidate Debt With Bad Credit?
Debt consolidation may make sense when the new APR and total cost are lower than the debt being replaced after fees. A longer term can reduce the monthly payment but increase total interest.
Compare the proposed loan with these best debt consolidation loans and confirm whether the lender pays creditors directly. Do not consolidate if the new loan costs more than the existing debt without another clear benefit.
Emergency expenses
Before considering expensive emergency loans for bad credit, check emergency savings, a medical billing plan, a payment plan, family assistance, a credit-union small-dollar loan, or employer assistance where available.
Personal Loans vs Payday Loans
Payday loans can carry extremely high effective borrowing costs and short repayment periods. A borrower may face a cycle of renewed borrowing if the payment cannot be made from the next paycheck.
Title loans
Title loans use a vehicle as collateral. Failure to repay can lead to vehicle repossession. They should not be treated as a normal solution for bad credit.
Credit union alternatives
Credit unions may offer smaller loans, relationship underwriting, and PALs where applicable. Federal credit unions have applicable APR caps for PAL products. Membership may be required, and no credit union guarantees approval.
How to Improve Approval Odds Safely
- Check credit reports with each major credit bureau for errors.
- Request only the amount you actually need.
- Estimate a payment that fits after rent, food, utilities, and existing debt.
- Compare multiple lenders using prequalification where available.
- Show verifiable income and stable employment or income sources.
- Consider a qualified co-applicant only after discussing shared responsibility.
- Consider secured borrowing only after understanding collateral risk.
How to Compare Personal Loans With Bad Credit
- APR and interest rate.
- Origination fee and other fees.
- Net loan proceeds after fees.
- Monthly payment and total repayment.
- Loan term and total interest.
- Soft prequalification and hard credit inquiry rules.
- Secured versus unsecured structure.
- Co-signer or joint-loan requirements.
- Funding timing and state availability.
How to Apply for a Personal Loan With Bad Credit
- Check your credit reports.
- Determine how much you actually need.
- Estimate an affordable payment.
- Prequalify with multiple lenders.
- Compare APR and fees.
- Review secured or joint options carefully.
- Choose the lowest-total-cost appropriate offer.
- Complete the formal application.
- Review the contract.
- Accept only if payments are affordable.
Compare personal loan rates
A rate check is only a starting point. Read the final disclosure before accepting any offer.
How to Spot Bad Credit Loan Scams
- Guaranteed approval or guaranteed lowest rates.
- Upfront fees before loan funding.
- Requests for gift cards or wire transfers to unlock a loan.
- Pressure to decide immediately.
- Unlicensed lenders or fake lender websites.
- Requests for account passwords or unnecessary security codes.
Legitimate lenders may charge origination fees, but those fees are generally disclosed and taken from loan proceeds rather than paid upfront before approval or funding. Verify the lender’s website, license information, privacy policy, and contact details.
When a Bad Credit Loan May Not Make Sense
Do not borrow when the APR approaches an extreme level, the monthly payment is unaffordable, the loan funds discretionary spending, fees substantially reduce proceeds, or the alternative is a payday or title loan. Borrowing can also be risky when you already cannot meet basic obligations.
If debt problems are structural, consider nonprofit credit counseling. A counselor may help review a budget and repayment options without directing you toward a high-cost loan.
Bad Credit Personal Loan FAQ
What is the best personal loan for bad credit?
Upstart is the overall editorial pick because alternative underwriting may consider more than a traditional credit score. It is not best for every borrower, and APR, fees, and approval depend on underwriting.
Can I get a personal loan with a 500 credit score?
Possibly, but no lender guarantees approval at a 500 score. Income, credit history, debt-to-income ratio, state, loan amount, and other factors also matter.
Can I get a loan with a credit score under 580?
Some lenders may consider applications below 580, while others may not. Meeting a published score guideline does not guarantee approval or a specific APR.
What is the easiest personal loan to get with bad credit?
There is no universally easiest loan. A lender may be accessible but expensive, so compare total borrowing cost and affordability.
What APR should I expect with bad credit?
Bad-credit borrowers often receive APRs toward the upper end of a lender’s range. Your offer may depend on credit history, income, debt, state, and loan amount.
Can I prequalify without hurting my credit?
Many lenders use a soft credit check for prequalification, which generally does not affect a score. Confirm the process before applying.
Can a co-signer help me qualify?
A qualified co-signer may affect underwriting or pricing, but does not guarantee approval. The co-signer may become responsible if the borrower does not pay.
Are secured personal loans easier to get?
Collateral may affect underwriting, but it does not guarantee approval. Failure to repay can place the pledged asset at risk.
Can I consolidate debt with bad credit?
Possibly. Consolidation is generally useful only when the new APR and total cost are lower than the debts replaced after fees.
Are bad credit loans safe?
Some legitimate lenders offer loans to borrowers with poor credit, but high APRs and fees can create risk. Check licensing, disclosures, payment affordability, and collateral terms.
How can I avoid bad credit loan scams?
Avoid guaranteed approval claims, upfront payment requests, gift-card demands, pressure tactics, fake websites, and password requests. Verify the lender independently.
What should I do if no lender approves me?
Pause new applications, review credit reports, ask a credit union about small-dollar options, consider nonprofit counseling, and avoid payday or title loans.
Editorial Disclosure and Final Comparison Framework
This guide is an independent comparison. If affiliate or lead-generation links are used, disclose that relationship near the first commercial CTA. Editorial rankings should not depend on compensation.
Before accepting any offer, compare APR, origination fee, net proceeds, monthly payment, total repayment, loan term, soft and hard inquiry rules, secured versus unsecured structure, co-signer or joint responsibility, funding, and state availability.
Make the lowest-cost appropriate choice
Check your rate, compare multiple lenders, and accept a loan only when the payment and total borrowing cost fit your budget.
For related research, see best personal loans. Future guides can cover best emergency loans, best secured personal loans, best credit-builder loans, how to improve credit score, best credit cards for bad credit, and credit union personal loans.