Best Bad Credit Loans of May 2026
Getting a personal loan with bad credit is possible, but it usually comes with a higher cost.
Lenders see bad credit borrowers as higher risk, so the loan terms may be less friendly. You may face higher APRs, more fees, shorter repayment terms, or smaller loan amounts than borrowers with stronger credit.
That does not mean you should automatically avoid personal loans. A bad credit loan can help in the right situation, especially if you need funds quickly and can afford the payments.
But you need to compare carefully.
Before applying, look at the APR, monthly payment, loan term, fees, credit score requirement, and whether prequalification is available. You should also check whether improving your credit first could save you money.
Quick Verdict
Bad credit loans can be useful, but they are not cheap.
The best lender depends on your situation. Some lenders are better for thin or no credit, some offer larger loan amounts, some may provide same day funding, and some offer secured loan options.
If you are not in a rush, improving your credit before applying may help you qualify for a lower interest rate.
If you need money sooner, use prequalification first. A soft credit check can show possible rates without hurting your credit score.
| Lender | Best For | APR | Minimum Credit Score | Loan Amount | Bankrate Score |
|---|---|---|---|---|---|
| Upgrade Personal Loan | Best overall bad credit loan | 7.74% to 35.99% with AutoPay | 600 | $1,000 to $50,000 | 4.6 out of 5 |
| Upstart Personal Loan | Best for thin or no credit | 6.20% to 35.99% | 300 | $1,000 to $75,000 | 4.7 out of 5 |
| Best Egg Personal Loan | Best for secured loan options | 6.99% to 35.99% | 600 | $2,000 to $50,000 | 4.6 out of 5 |
| OneMain Personal Loan | Best for same day funding | 11.99% to 35.99% | Not disclosed | $1,500 to $30,000 | 4.3 out of 5 |
| Universal Credit Personal Loan | High autopay discount | 11.69% to 35.99% | Not disclosed | $1,000 to $50,000 | 4.5 out of 5 |
Top Bad Credit Loan Lenders
Upgrade Personal Loan: Best Overall Bad Credit Loan
Upgrade is listed as the best overall bad credit loan option.
The lender offers APRs from 7.74% to 35.99% with AutoPay. The minimum credit score shown is 600, and loan amounts range from $1,000 to $50,000.
This may be a good fit if your credit is weak but still around the lower end of fair credit.
The important thing is to check your personalized rate before applying fully. The top end of the APR range is high, so you need to know what rate you actually qualify for.
Upstart Personal Loan: Best For Thin Or No Credit
Upstart stands out because the listed minimum credit score is 300.
That makes it one of the more accessible options for borrowers with very limited credit history, thin credit files, or damaged credit.
The APR range is 6.20% to 35.99%, and loan amounts range from $1,000 to $75,000.
This may be useful if traditional lenders are not giving you options. But as with any bad credit loan, the rate you receive matters more than the advertised low end.
Best Egg Personal Loan: Best For Secured Loan Options
Best Egg may be worth considering if you want secured loan options.
Its APR range is 6.99% to 35.99%, with a minimum credit score of 600. Loan amounts range from $2,000 to $50,000.
A secured loan may help some borrowers qualify, but it can also create risk if collateral is involved. If you cannot repay as agreed, you could lose the asset used to secure the loan.
This option is better for borrowers who understand the risks and have a clear repayment plan.
OneMain Personal Loan: Best For Same Day Funding
OneMain is listed as best for same day funding.
The APR range is 11.99% to 35.99%, and loan amounts range from $1,500 to $30,000. The minimum credit score is not disclosed.
This may be useful if you need funds quickly.
However, speed should not be the only factor. If you accept a high APR loan because it is fast, the long term cost could be heavy.
Use this type of loan only if the payment fits your budget.
Universal Credit Personal Loan: High Autopay Discount
Universal Credit offers APRs from 11.69% to 35.99%, with loan amounts from $1,000 to $50,000.
The minimum credit score is not disclosed.
Its main highlighted feature is a high autopay discount.
Autopay can help in two ways: it may lower your rate, and it can help you avoid missed payments. But you still need to make sure the monthly payment is realistic.
What To Consider Before Taking A Bad Credit Loan
Cost Of Borrowing
Bad credit loans usually come with higher interest rates and more fees than other personal loans.
That is the biggest drawback.
If you improve your credit before applying, you may reduce the lender’s perception of risk. That can help you qualify for a lower rate and save money over the life of the loan.
If you are not facing an emergency, waiting and improving your credit may be the smarter move.
Loan Terms
Personal loan terms often range from one to seven years.
But if you have bad credit, lenders may offer fewer choices.
A longer term can make the monthly payment lower, but it may cost more in total interest. A shorter term can save money over time, but the monthly payment will be higher.
Choose the shortest term you can realistically afford.
Loan Amounts
Bad credit can also limit how much you are allowed to borrow.
The lower your credit score, the lower the loan amount you may be offered.
If you cannot borrow the amount you need, consider improving your financial situation first, applying with a cosigner, or using a co borrower if the lender allows it.
Do not borrow more than you need just because a lender offers it.
Common Fees
Some bad credit lenders may charge origination fees.
According to the source, bad credit lenders may charge an origination fee of up to 12% of the loan amount.
This fee is often taken from the loan funds before you receive the money.
For example, if you borrow $10,000 and a large origination fee applies, you may receive less than $10,000 but still repay the full loan amount.
Always check the fees before accepting.
How To Get A Personal Loan With Bad Credit
Check Your Credit First
Start by reviewing your credit history.
You can download your credit reports through AnnualCreditReport.com.
Look for errors and dispute anything that is incorrect. Even small fixes can sometimes improve your situation before applying.
Also monitor your score so you know where you stand.
Check Lender Eligibility
Before applying, look at lender requirements.
Check minimum credit score rules, income requirements, debt to income expectations, and other criteria.
This helps you avoid wasting time on lenders that are unlikely to approve you.
Review Your Budget
A loan is not just about approval.
You need to know whether the monthly payment fits your budget.
If the payment is too high, you may need to reduce expenses, increase income, borrow less, or wait before applying.
A personal loan calculator can help estimate the monthly payment before you commit.
Gather Documents
Applying is easier when you already have your documents ready.
You may need personal information, proof of income, bank details, employment information, and identification.
Having these ready can speed up the process.
Use Prequalification
Many lenders let you prequalify with a soft credit check.
This is useful because it lets you compare possible rates without hurting your credit score.
Prequalification is not a final approval, but it gives you a better idea of what may be available.
Submit A Full Application
Once you compare offers, choose the best lender and submit the full application.
This is usually where the hard credit check happens.
Make sure you are comfortable with the lender, APR, fees, loan amount, and repayment term before moving forward.
Review The Final Offer
Do not sign until you review the final loan agreement.
Check the APR, loan term, monthly payment, origination fee, extra fees, and funding details.
Make sure the final offer matches what you expected.
Start Payments Carefully
After approval, funds may be sent to your bank account and may be available within a day or two.
Once repayment begins, consider setting up autopay.
Missing payments can damage your credit further, so the first few months matter.
Requirements For A Bad Credit Personal Loan
Credit
Credit is one of the main factors lenders use.
If your credit is weak, you may need to make up for it in other areas, such as income, lower debt, a cosigner, or collateral.
Income
Lenders rarely publish a specific income requirement, but higher income can improve your chances.
More income may show that you are better prepared to repay the loan.
If possible, increasing your income through a raise, extra work, or side income may help.
Debt To Income Ratio
Your debt to income ratio compares your monthly debt payments with your income.
The source says a DTI below 50% may be required, while closer to 36% could help unlock a lower APR.
Paying down debt can improve your DTI and make you look less risky to lenders.
Co Applicant
If you cannot qualify alone, a cosigner or co borrower may help.
This person should have stronger credit and be willing to share repayment responsibility.
This is serious. If you miss payments, their credit can also be affected.
Collateral
Some lenders offer secured loans.
Collateral may include personal property, vehicles, or other assets.
This can help approval, but it creates risk. If you fail to repay, the lender may be able to seize the collateral.
Only use collateral if you are confident you can repay.
Risks Of Bad Credit Loans
Bad credit loans can help in some cases, but they carry real risks.
The biggest risk is cost.
Some bad credit loans can charge interest rates up to 35.99%. That can make repayment difficult, especially if the loan term is long or the monthly payment is high.
A high interest loan may eat up a large part of your budget. Instead of improving your finances, it can trap you in a debt cycle.
Before borrowing, ask yourself:
- Do I truly need this loan?
- Can I afford the monthly payment?
- Is the APR reasonable for my situation?
- Are there fees I do not fully understand?
- Can I improve my credit first?
- Would a cosigner help me qualify for better terms?
Borrow only what you need and what you can realistically repay.
How To Borrow More Safely With Bad Credit
Improve Credit If You Can Wait
If the need is not urgent, spend time improving your credit first.
Even a modest credit improvement may help you qualify for a better APR or lower fees.
Compare Multiple Lenders
Do not accept the first offer.
Use prequalification to compare rates, terms, and monthly payments across lenders.
The difference between offers can be large.
Avoid Too Much Debt
Borrow the smallest amount that solves the problem.
A bigger loan may feel useful today, but it can become harder to repay later.
Choose A Payment You Can Afford
The monthly payment should fit your real budget, not your ideal budget.
Leave room for rent, food, utilities, transportation, insurance, and emergencies.
Use Autopay Carefully
Autopay can help avoid missed payments.
But make sure your account has enough money before the payment date. Otherwise, you could face overdraft issues or failed payments.
Frequently Asked Questions
Can You Get A Personal Loan With Bad Credit?
Yes, some lenders offer personal loans for borrowers with bad credit.
However, the APR and fees may be higher than loans for borrowers with stronger credit.
What Is The Best Bad Credit Loan?
The best bad credit loan depends on your credit score, income, debt, loan amount, and repayment ability.
Upgrade, Upstart, Best Egg, OneMain, and Universal Credit are among the lenders highlighted in the source.
Does Prequalification Hurt Your Credit?
No, prequalification usually uses a soft credit check.
A full application typically requires a hard credit check.
What APR Should You Expect With Bad Credit?
Bad credit loan APRs can be high.
Some lenders listed in the source go up to 35.99%.
Your exact rate depends on your credit profile, income, debt, lender, and loan terms.
What Is An Origination Fee?
An origination fee is a fee some lenders charge to process the loan.
It may be taken out of your loan funds before you receive the money.
The source says some bad credit lenders may charge up to 12% of the loan amount.
Is A Secured Loan Better For Bad Credit?
A secured loan may help you qualify or get better terms, but it also adds risk.
If you fail to repay, you could lose the collateral.
Should You Use A Cosigner?
A cosigner may help you qualify or get a better rate.
But they share responsibility for the loan. If you miss payments, their credit can be harmed too.
Final Verdict
Bad credit personal loans can be helpful, but they should be used carefully.
They can provide fast funding and structured repayment, but the cost can be high. APRs may reach 35.99%, origination fees may apply, and monthly payments can strain your budget.
If you need a loan, compare multiple lenders, use prequalification, read the final agreement carefully, and borrow only what you need.
If you are not in a rush, improving your credit before applying may be the best move.
A bad credit loan should solve a problem, not create a bigger one.
