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Best Bad Credit Personal Loans for July 2024

Don't stress about getting a personal loan with bad credit. We've got you covered. Whether you want to consolidate debts, pay for unexpected expenses, or get back on track financially, we'll help you find some great options. Compare bad credit personal loans now.
Betsalel CohenJul 1, 2024
Editor’s Note
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At, we strive to help you make financial decisions with confidence. While many of the products reviewed are from our Service Providers, including those with which we are affiliated and those that compensate us, our evaluations are never influenced by them.

Compare bad credit personal loans

Fast funding
upstart logo
6.5 to 35.99%. Average 5- year loan has an APR of 26.57%
$1K - $50K Varies by state
No minimum rating
Best for borrowers with poor credit
9.95% - 35.99%
$2K - $35K
600 rating
Best for small loans and low credit
OneMain Financial Logo
18% - 35.99%
$1.5K - $20K
None rating
Best for last-resort loan
NetCredit logo
34% - 155%
$1K - $10K
None rating
Best for fair to poor credit
Integra Credit Logo
149% - 199%
$500 - $3K
None rating

What is a Bad Credit Personal Loan?

A bad credit personal loan is an unsecured loan specifically designed for individuals with low credit scores. It can be a useful option for those who have struggled to get approved for traditional loans due to their credit history.

Maybe you thought lenders only offered personal loans to people with excellent credit. After all, a personal loan is based on your financial situation and your capability to repay it. Why would a lender want to offer a loan to someone with bad credit?

But what exactly is bad credit?

Let's say you pay your mortgage late or max out your credit cards. These will be recorded on your credit report and will hurt your credit score.

Bad credit typically refers to a credit score below 580 on the FICO scale of 300–850. Credit scores range from

  • Below 580: poor credit (or bad credit)
  • 580 to 669: fair credit
  • 670 to 739: good credit
  • 740 to 799: very good credit
  • 800 and above: exceptional credit

The most common reasons for bad credit are missed or late payments, high debt levels, or a lack of credit history.

Why is credit important to get a personal loan?

Lenders use credit scores to help assess their risk. Obviously, they want you to pay them back. One common way to measure the likelihood that you'll pay them back is by looking at your past credit history. They then use special models to determine a credit score.

But can you get a personal loan with bad credit?

Yes,  there are lenders who are willing to offer personal loans to individuals with bad credit. Bad credit lenders understand that a credit score doesn't always reflect a person's current financial situation. They may consider other factors, such as income and employment stability when making a lending decision.

However, because a bad credit loan is riskier, it's important to note that personal loans for bad credit may come with higher interest rates and stricter terms.

What can you use a bad credit loan for?

The most common reasons to take a personal loan are debt consolidation, paying for medical bills, making big purchases, or covering emergencies.

One of the best reasons to take a bad credit personal loan is to cover emergencies. Saving for an emergency is the best strategy, but unexpected circumstances may require quick access to funds. What should you do if you need money to pay for medical bills to allow for further treatment? Or if you need to fix your auto so that you can get to work? The high rate might be justified if it helps you get the required medical treatment or saves your job.

Many people take out personal loans to pay off their bills or debts. But if you have bad credit, the interest rates can be very high, making a personal loan a bad choice. Before you take out a personal loan, think about whether you can afford the monthly payments. Also, make sure that you'll actually save money on interest.

Should you consider a bad credit personal loan?

A personal loan for bad credit doesn't sound like a great idea. After all, if you have bad credit, you must be facing some financial hardship and can't afford to make payments.

Maybe your bad credit was caused by temporary problems or old items still on your credit report. If you now have a steady income, a balanced budget, and a good financial plan, the loan could help you get back on your feet.

Here are three benefits of taking a bad credit personal loan:

  1. Improving Your Credit Score: One of the main benefits of taking a bad credit personal loan is the potential to improve your credit score. If you make timely payments on the loan, it should help rebuild your credit history and show lenders that you are responsible with credit.
  2. Access to Funds: If you have bad credit, it can be difficult to access credit when you need it. A bad credit personal loan can provide you with the funds you need for emergencies, unexpected expenses, or to consolidate high-interest debt.
  3. An alternative to credit cards: Bad credit loans may have high interest, but they might be lower than credit card interest rates.. This means that taking out a personal loan and paying off high-interest credit card debt can save you money in the long run. Also, you won't be increasing the

Think about your financial situation carefully. Only get a loan if you can afford the monthly payments. If you're struggling financially and can't afford the payments, look at other options. Before you get a bad credit personal loan, think about other ways to get money. Then, compare different lenders and interest rates to find the best deal.

Pros and cons of a bad credit loan:

Before shopping for a bad credit personal loan, review the pros and cons of bad credit loans,

  • Quick approval and funding
  • Chance to improve credit scores
  • Fixed interest and payment
  • An alternative to credit cards

  • Higher Interest Rates and fees
  • Potential for preparatory lending
  • Lower loan amount limits
  • Debt Cycle Risk


  • Quick approval and funding: Many lenders with bad credit loans make it easier to get approved and access money fast, which can be helpful during emergencies.
  • Chance to improve credit score: Taking out and paying off a bad credit loan can help raise your credit score.
  • Fixed interest and payment: Personal loans have a fixed interest rate, meaning monthly payments stay the same, unlike credit cards and credit lines.
  • An alternative to credit cards: Bad credit loans offer a lump sum of money that can be used for various purposes without the temptation of continuously borrowing more money. This can help break the cycle of debt.


  • Higher interest rates and fees: Lenders typically charge higher interest rates on bad credit loans due to the perceived higher risk associated with lending to individuals with poor credit histories.
  • Potential for predatory lending: Some lenders may exploit borrowers' situations by imposing unfair terms and conditions, leading to predatory lending practices.
  • Lower loan amount limits: Bad credit loans often limit the amount that can be borrowed, which may not fully cover the borrower's financial needs.
  • Debt cycle risk: If not handled well, getting bad credit loans with high interest and fees can lead to a tough debt cycle to escape.

Types of personal loans available for individuals with bad credit

The most common type of personal loan for bad credit is an unsecured personal loan, which is a loan you get against your signature. You don't have to provide any collateral or security.

However, there are other types of bad credit personal loans:

Personal loan with a co-signer or co-borrower:

If you have a family member or friend who has a good credit score, they may be willing to co-sign or co-borrow with you. This could potentially result in a personal loan with more favorable conditions and lower interest rates. However, keep in mind that a co-signer/borrower assumes equal responsibility for the loan and their credit could be negatively affected if you fail to make payments.

Secured personal loan:

A secured personal loan requires collateral, such as a car or savings account, to secure the loan. This can be a good option for those with bad credit, as the lender has something to fall back on if the borrower fails to make payments.

Payday loans:

Payday loans are meant for emergencies, giving you money until your next paycheck. They can be expensive and lead to more debt, earning the name debt traps.

What are the typical terms for a bad credit personal loan?

The terms of a bad credit personal loan may vary depending on the lender and the borrower's individual circumstances. However, some common terms that may apply to these loans include:

  • Smaller loan amounts between $1,000–$10,000
  • Higher interest rates with an APR closer to 25%-35%
  • Shorter repayment terms between 1–3 years
  • Higher fees between 3%-6%
  • No minimum credit score or a very low minimum credit score like 560.

Remember that those are ballpark figures, and it's important to check with the lender for a personalized offer.

Here's a hypothetical example of terms for a $3,000 loan using four lenders. All of them offer personal loans to bad-credit borrowers.

LenderAPRTerm (months)Est. monthly payment
OneMain Financial22.74%36$115.73

Source: and EvenFinancial rate table March 2024.

The proposed sample rates are for March 2024. The rates provided are solely for illustrative purposes and do not represent actual loan offers. The monthly payment is calculated based on the APR; however, the actual interest rate and associated fees may vary, thereby impacting the monthly payment amount.

5 shopping tips for a bad credit loan

Not all lenders offer loans to people with bad credit. Comparison shopping is the key to getting the best deal available. Here are 5 tips to help you shop:

  1. Get pre-approved. If a lender rejects your application, then ask them why. If you keep hearing the same answer, it gives you an idea of the steps you need to take to improve your chances of getting your application approved.
  2. Compare terms: Interest rates and fees can vary widely from lender to lender. The difference in interest rates you may be offered can be gigantic. A higher interest rate means a higher payment on a loan for the same amount with the same number of payments.
  3. Make sure you can afford the monthly payment. Lenders look at your ability to make timely monthly payments. However, it's possible to be approved for a loan that makes it hard to pay all your other bills.
  4. Add a co-borrower or co-signer: If you are having trouble getting approved, consider adding a co-borrower. This can help you get approved and get a better interest rate.
  5. Keep tabs on your credit
  6. It's important to check your credit reports periodically and make sure that all reported items are accurate. Any negative account will hurt your credit and make it more difficult to qualify for a personal loan.

A few alternatives to bad credit personal loans

Only take out a new loan if you have a plan to pay it back. Making on-time payments will help improve your credit score. If you're struggling financially and can't afford the monthly payments, consider other options first.

You may want to explore other options before taking a bad credit personal loan, such as:

  • Credit counseling to better manage your money
  • Debt settlement program to deal with your debts.
  • Borrowing from a 401(k) retirement plan
  • Asking creditors for hardship programs

Before taking out a bad credit personal loan, explore all your alternatives. Then, compare different lenders and interest rates to find the best deal.

>>For more help: Get a free debt relief consultation now.

Frequently Asked Questions

What credit score does a cosigner need for a personal loan?


The credit score a cosigner needs for a personal loan will typically depend on the lender. Generally, cosigners need to have a good credit score to get approved. A good FICO score is a score of 670 or higher. 

What if I can’t qualify for a hardship loan?


If you are not eligible for a standard hardship loan, ponder several alternatives, such as taking a hardship withdrawal from your 401(k) account, borrowing funds from a friend or relative, pursuing a home equity loan or home-equity line of credit, applying for a secured, personal loan, bad-credit loan, joint personal loan, payday loan, or a credit card cash advance. 

Can I get an unsecured debt consolidation loan with bad credit?


The short answer: Yes, it is possible to get a bad credit debt consolidation loan. However, you need to ask yourself if that is the best solution.

If you have bad credit, then expect to pay higher interest rates than borrowers with excellent credit. An unsecured loan allows you to pay off high-interest rate credit cards, create an affordable monthly fixed payment, and set you on the road to debt freedom.

However, if you run up debt again, then you didn't improve your situation. It is common for people overwhelmed with debt to think that if they could borrow enough to pay everything off they would have a fresh start and be able to take control of their finances.

If you do not qualify for a bad credit personal loan, then look for other debt solutions.