5 lenders that offer bad credit personal loans

09th November, 2021

To apply for a loan, you have to furnish an application, providing personal and professional details. Further, you must agree to a credit check for loan approval. Typically, lenders choose customers who have a proven background of clearing their dues in time. So, it is necessary that you have good credit.

According to the FICO scale, a good credit score begins at 670. Anything over 740 is believed to be very good, and over 800 is regarded as excellent. So, a credit score below 670 can hamper your chances of loan approval. But, certain lenders provide personal loans to borrowers with poor credit scores as well.

However, the catch here is that you may have to pay an origination fee, late fee, early pay-off penalty, or a higher interest rate. Hence, if your credit score is low, it is necessary to do your homework before signing any loan approval documents.

To help you, here are the five best personal loans for bad credits.


Personify can be your go-to pick when you seek a personal loan amounting to more than a few hundred dollars. You can get loans in the range of 500-15000 USD, depending on your geographical location. When granting personal loans, Personify considers several factors beyond credit scores. So, if you have bad credit, your chances of getting a loan with Personify are relatively high. The good thing about Personify is that they do not charge any prepayment fee. However, there might be an origination fee, depending on the state of residence. Typically, this fee is 5% of the loan amount. The interest rates might be high, ranging from 35% to 180%. Personify’s personal loan is available in only 27 American states – Indiana, Alabama, Florida, Arizona, Alaska, Hawaii, Kentucky, Minnesota, Delaware, Michigan, Missouri, Georgia, Nebraska, Oklahoma, Tennessee, Mississippi, Louisiana, North Carolina, Idaho, New Mexico, South Carolina, Washington state, Texas, Montana, Utah, Kansas, and Ohio. Lastly, Personify will report your repayment to credit bureaus. So, if you make your repayments in time, it can help rebuild your credit score.


For someone with bad credit, Avant can also be an excellent option to get a personal loan. Anyone who qualifies can avail of a loan amount of up to 35000 USD. Moreover, the interest rates are also decent, starting at 9.95% and can go up to 35.99%. But, you will have to bear an administrative fee of up to 4.75%. However, this might be lower compared to what’s charged by most other lenders. However, the fee might be taken directly from your loan amount before disbursement. Another pro associated with Avant is that there is no prepayment fee. So, if you want, you can pay your loan early. You can borrow somewhere between 2000 USD and 35000 USD from Avant. This is a decent loan amount. But, surely, there are many lenders in the market offering higher loan amounts. It would help if you had a minimum credit score of 600 to get a loan from Avant. Avant will also check your income statement to ensure that you qualify for the loan. Accordingly, they will assess the amount of loan you can get.


It is an online marketplace wherein your loan will be funded by one or more investors and not any traditional lender, credit union, or bank. Although unfortunately, it has not offered a disclosure on the minimum credit requirement, P2P marketplaces are one of the best lending options for lower-credit borrowers. Alternatively, you can also opt for secured loans. You can get a loan amount ranging from 1000 USD to 40,000 USD at an interest rate, between 8.05% and 35.89%. The loan term may be between three and five years. The loan amount is disbursed within six days. Fortunately for borrowers, LendingClub has a grace period of 15-days after the repayment term is over. You can repay the remainder of your loan amount during this time to avoid penalties. There is no late fee charged during the period. You can also apply for a joint loan with your spouse. However, you will have to bear an origination fee, which can be between 3% and 6% of the loan amount.


Upgrade is another one of the best personal loan providers for people with bad credit. With Upgrade, you can get a loan between 1000 USD and 50,000 USD at an APR, ranging from 5.94% to 35.97%. The loan term varies from two to seven years, and you need a minimum credit score of 620 to be eligible for a loan from Upgrade. Even though the minimum APR from Upgrade is one of the lowest, you might end up paying a higher rate if you have a poor credit score. Further, an origination fee is also applicable, typically in the range of 2.9-8%, taken upfront from the loan amount. They also charge you for late repayment, but thankfully, there are no penalties for prepayment. After your loan is approved, you might receive the funds the following day.


To qualify for a personal loan from Upstart, you must have a minimum credit score of 600. They provide a loan amount between 1000 USD and 50,000 USD at an APR ranging from 5.55% to 35.99%. The loan repayment term can range from three to five years. You can choose a term at your convenience. However, a significant pro associated with Upstart is that the loan amount is disbursed within one business day, which can be a big relief during emergencies. Also, there is no prepayment penalty. So, you can repay the loan early if your finances allow you to do so.