Unlike before, consumers can now apply and qualify for a bad credit loan. With a bad credit score, you may not qualify for the best rates out there. But still, interest rates for bad credit loans are lower than those imposed on payday loans, which is great news for those who might have struggled with poor credit history or had difficulty finding suitable bad credit loan companies.

Here, we have reviewed different bad credit loan options. The recommendations in our list are easy to qualify for once you meet the requirements. The interest rates are also manageable for consumers with bad credit scores.

How to find the best personal loans for bad credit

Why you should trust GreenDayOnline

GreenDayOnline advises consumers on financial matters, including finding the right bad credit loan companies. We have surveyed and compared many financial institutions for years. We aim to help you make better decisions moving forward, especially if you have a poor credit history.

Finding the best loan product for your needs will be easier with our information.

We have a trusted editorial team that ensures that no content on this site advertises a company. All our content is edited and updated for accuracy.

We have listed the lenders based on important factors like;

  • The APRs and fees charged
  • Minimum credit score requirement
  • Loan requirements
  • Loan offers
  • The maximum loan amounts.

Rates applied on bad credit loans as of January 2023

Lender Minimum credit score requirement Best for APR charged
Bad credit loans unspecified Applicants with poor credit 5.99% to 35.99%
Upstart 600 Limited or no 8.94% to 35.99%
OneMain Financial unspecified Loans backed up with collateral 18.00% to 35.99%
TD Bank unspecified Low rate caps 6.99% to 21.99%
Avant 580 A wide range of payment options 9.95%–35.99%
LendingPoint 590 Small short-term loans 9.99%–35.99%
Upgrade unspecified Instant funding 6.94%–35.97% (with autopay)
LendingClub 600 100% online experience 8.05%–35.89%

What you need to know about bad credit loans

Bad credit is sometimes referred to as low credit or limited credit history. Several things can reduce your credit score and put you in the bad credit category. The main ones include;

  • Making late payments, which impacts your payment history
  • Defaulting on loans and
  • Going above your credit usage limits on your credit cards

Bad credit loans or loans for bad credit guaranteed approval is a good choice for consumers with many negative marks on their credit reports. The loans also target consumers with a limited credit history.

You can find secured bad credit loans and loans for borrowers with less-than-perfect credit.

This means you must issue an asset (like your car, house, savings, and account) To qualify for the loans. Others are unsecured. The loans vary in interest rates, loan terms, and fees.

Different institutions offer loans for borrowers with bad credit. You can apply for bank loans, direct lenders, and credit unions.

Also, the criteria for determining your creditworthiness varies depending on the lender. There are some lenders with tight requirements compared to others.

This is why it is always advised to compare different options before deciding.

Defining a bad credit score

There are different credit scoring models used to determine consumers’ credit scores. The most common and popular one is FICO. The highest FICO score is 850, while the lowest score is 300. A FICO score of between 579 and 300 is in the low or poor credit category.

Effects of having poor credit

Poor credit will impact loan approvals and cause trouble with your credit card issuer. You might need help to rent an apartment, get employment or buy a home.

Even if you are lucky to get approved, your interest rate and fees will be higher. Luckily, there are simple things you can change in life to improve your credit score.

This can be payments on time and preventing over-borrowing on credit cards.

How to get a bad credit loan

Even with bad credit, qualifying for a personal loan is still possible. The only thing you should be aware of is that your interest rate will be a bit higher.

Below, we have explained important steps to help you apply and qualify for the loans.

Check your credit score

Start by knowing what your credit score is. You can request copies of your credit reports for free from the credit bureaus. You can get access to free credit reports once every year.

But for now, you can access your credit reports weekly until April 2023.

Consider applying for secured loans

Secured personal loans need collateral. Some online lenders provide secured personal loans. The loans are a good option for those who have poor credit scores.

This can be your car, savings account, home, or other asset. The loans come with a lower APR compared to the unsecured options.

The different types of bad credit loans available

Personal loans

If you need better credit, two main loan options are available. These include secured and unsecured personal loans. These are alternative options if you can’t qualify for affordable bank loans.

  • Secured and unsecured personal loans for bad credit
  • Personal loans are either secured or unsecured;

Secured loans

These types of loans require some form of security collateral. It can be your home, car, or jewelry, among other assets.

Usually, secured personal loans come with convenient terms and rates because you have a high chance of paying the loan on time.

Secured loans are easy to qualify for if you have a poor credit score. If you do, you risk losing your valuable asset. The main types of secured loans are auto loans and home equity loans.

Unsecured loans

With unsecured personal loans, you don’t need to provide collateral. It is your creditworthiness that will determine whether you qualify for a loan.

It will also determine your loan rates. If you have poor credit, qualifying for an unsecured loan may take work. Even if you are lucky to qualify, the interest rate might be on the higher end. The main features of unsecured loans include the following;

  • High-interest rates
  • High fees
  • Lower loan amount


  • Secured personal loans are available in large amounts
  • With unsecured loans, you don’t require collateral to qualify


  • Unsecured loans have high APRs
  • Unsecured loans are difficult to qualify for
  • If you default on a secured loan, you might risk losing your asset

Payday loans

These are short-term loans offered in smaller amounts (usually not more than $500). These Online Payday loans come with high-interest rates and fees. Payday lenders offer these loans to borrowers, often without requiring a credit check, making them a popular option for people with poor credit.

On the positive side, you can get the money within one business day. You have to pay the money as soon as your paycheck arrives.


  • No credit checks
  • Easy to apply and qualify
  • You can get the money within 24 hours
  • A good option for emergencies, especially for emergency expenses
  • You can apply online from any location


  • Extremely high-interest rates (at times over 400%)
  • The loans might not be available in some states
  • The industry is full of scammers. It is thus important to conduct a deep research before applying
  • Not suitable for Social Security recipients or those with fixed incomes

Cash advances

Cash advances are also short-term loans provided by credit card companies. You can borrow the money based on your credit card balance.


  • The easiest and fastest way to get cash for short-term needs
  • Accessible for people receiving Social Security benefits


  • The interest rate is quite high for unsecured credit cards.
  • May not cover large emergency expenses

Home equity loans

Home equity loans are also offered in huge amounts. The loans are paid in fixed monthly installments. They also have a longer repayment term.

With home equity loans, it is your home that acts as collateral. So in case your default, the lender has the right to seize your home. But since it is a secured loan, you can enjoy the low-interest rates that come with it.


  • People with bad credit can apply and qualify
  • Low-interest rate
  • Manageable repayment plan


  • You are putting your home at risk
  • It may take years to pay the loan in full

Home equity lines of credit

Home equity lines of credit, or HELOCs, also use your home equity as collateral. But unlike home equity loans, HELOCs work the same way as credit cards.

You only borrow the money when needed, and the interest rate is only paid on the borrowed amount.


  • You can take the money when you need it.
  • You have full control over the cash
  • A good option is if you want to do small home improvement projects


  • You might risk losing your home

Student loans for bad credit

Student loans can help cover tuition expenses, the purchase of textbooks, and accommodation. Only some lenders offer student loans due to the high risks involved. The best place to start is with lenders offering student loans for bad credit.


Best way to pay for tuition and other related expenses


Difficult to qualify if you have bad credit

Best bad credit loan lenders

Bad Credit Loans

Best for Those with bad credit

The company connects borrowers to potential lenders willing to provide loans for bad credit. It is easy to apply for a loan through the company. It would be best if you were at the age of 18 to qualify for a loan.


  • The company doesn’t charge any fees
  • The application process makes it easier for any person to qualify
  • Best place to go if your application can’t get approved elsewhere


  • Bad Credit Loans is not a lender. The company sends your applications to hundreds of potential personal loan lenders. Therefore, it is important to compare options before applying, especially regarding the loan amount, interest rate, and fees.

Rating: 4.5

APR: Between 5.99% and 35.99%

Loan amount: Not more than $10,000

Loan term: between 3 months and six years

Fees: Vary


Best for Those with a limited or no credit history

Upstart is popularly known for offering fast and affordable personal loans. The company does not just focus on the individual’s credit history. It also considers the applicant’s level of education, area of study, and job history. In addition, Upstart connects borrowers with a variety of personal loan lenders to provide more options to choose from.

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  • The loans feature quick approval. You can get the money within 24 hours
  • There are no prepayment penalties


  • a loan origination fee is about 8% of the loan amount.
  • The company also has other charges. These returned checks and late payment fees can make the loan expensive. Remember the loan origination fee when considering the total cost.

Rating: 4.5 out of 5

Minimum credit score: 600

APR: Between 8.94 and 35.99

Loan amount: Between 00 and,000

Loan term: 3 to 5 years

Fees: Late payment fee 5%, origination fee up to 8% (loan origination fee), paper copies fee 10%


Best for Secured loans

The company provides both secured and secured loans for bad credit. With secured loans, you must provide collateral, mainly your vehicle.

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  • The fast and easy application process
  • You can receive the funds within three days of applying
  • There are more than 15 branches for those who prefer in-store applications


  • The company charges an origination fee that differs based on your state. It can be a flat amount of between $25 and $400. At times, it can be a percentage of the principal amount. The percentage may range from one to ten percent.
  • late payment fees are also charged depending on your state. The fee falls between $30/ In some states, it can be up to 15% every time you submit your payments late.

Rating: 3.8

APR: 18% to 35%

Loan amount: From $1500 to $20000

Loan term: 24 to 60 months

Fees: Origination fee up to $400 or 15%, insufficient funds fee up to


Best for Low rate caps

TD Bank offers both secured and unsecured personal loans. The loan amount ranges from $2,000 to,000. The company does not offer the lowest rates around. However, it has a 21.99% cap on its loan rates, making the loan attractive to those with a poor credit score whose interest can be over 30% elsewhere.

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  • Only a late fee is charged, which is usually $10 or 5%
  • No annual fees, monthly fees, insufficient funds fees, or prepayment fee


  • The loans are only available in some states. Only those who live in the following states can apply;
  • Delaware
  • Connecticut
  • Maine
  • New Jersey
  • Virginia
  • Massachusetts
  • Rhode Island
  • New Hampshire
  • North Carolina
  • Maryland
  • South Carolina
  • New York
  • Washington, D.C
  • Pennsylvania
  • Florida
  • Vermont

Rating: 4.9

Loan amount: From $2000 to $50,000

APR: 6.99% to 21.99%

Loan term: From 36 to 60 months

Fees: Only late payment fee, which is 10 or 5%, whichever less


Best for: A wide range of repayment options

Avant approves unsecured loans for bad credit from $2000 to $35,000. The repayment term ranges from 24 to 60 months.

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  • You can get the money as soon as the next business day


  • Many fee charges; administration fee, insufficient funds fee, and late payment fee

Rating: 4.5

Minimum credit score: 550 Vintage, 580 FICO

Loan amount: $2000 to $35,000

Interest rate: 9.95% to 35.99%

Fees: Late fee of $25, an administration fee of 4.745%, insufficient funds fee of $15


Best for Small loans

LendingPoint offers its services in 49 states as a lending platform. It offers unsecured loans to borrowers with credit scores of as low as 590. The payment term varies from 24 to 60 months, depending on different factors.

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  • Get an instant decision
  • Once approved, the money is sent to your bank account within 24 hours


  • The loan attracts an origination fee of up to 6%, depending on your state
  • You must earn at least $35,000 per year to qualify

Rating: 4.4

Minimum credit score: 590

APR: Between 9.99% and 35.99%

Loan term: 24 to 60 months

Minimum yearly income: $35000

Fees: Up to 6% origination fee


Best for Fast funding

The upgrade is a popular lending platform for providing personal loans for bad credit. You can use the loan for the following;

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  • Get an instant decision
  • Get the money within 24 hours


  • An origination fee of between 2.9 and 8%

Rating: 4.8

APR: 6.94% to 35.97%

Loan term: 36 to 60 months

Fees: Late payment fee, the origination fee


With a poor credit score, qualifying for a loan may not be a walk in the park. With LendingClub, you can qualify for a bad credit loan if you have a co-signer. It is easy to apply for a loan, and the process can take as little as 5 minutes.

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  • 15 days grace period if you can’t make payment on time


  • An origination fee of 3 to 6%

Rating: 4.3

Minimum credit score: 600

Loan amount: $1000 to $40,000

APR: 8.05% to 35.89%

Fees: Late payment fee, the origination fee

Jason Rathman

Jason Rathman


Jason writes about all financial topics such as loans, debt solutions, and bankruptcy. He is an expert when it comes to subjects like APR, loan fine print, debt collection laws within the United States. With his in-depth knowledge of all things financial, he is a great asset to Greendayonline.