Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
What Are the Best Personal Loan Options for Bad Credit?
Moneymagpie Team
12th Aug 2025
Managing your money better is possible, even with a less-than-perfect credit score. The demand for alternative lending options is rising as traditional banks tighten lending standards. Discover practical, trustworthy loan providers and tips for getting approved.
- The Importance of Credit
- 7 Best Personal Loan Companies for Bad Credit
- Comparing the Top Personal Loan Options for Bad Credit
- Tips for Applying and Improving Approval Odds
- Go Forward With Personal Loan Options for Bad Credit
The Importance of Credit
Credit scores estimate how likely someone is to repay a loan and make timely payments. Those with lower scores or “bad credit” are likely to pay higher interest rates on credit they receive and have higher insurance premiums.
If you have bad credit, you are not alone. According to the most recent study by a major U.S. credit bureau, about 30% of Americans have subprime credit scores, meaning a FICO score below 670. Someone with bad credit may take out a loan if they’re facing an emergency, consolidating their debts or trying to build their credit.
7 Best Personal Loan Companies for Bad Credit
Financial health requires careful consideration of loan terms and responsible borrowing practices. This list of reliable loan options was compiled with APR ranges, fees, transparency, customer reviews and accessibility for borrowers with bad credit in mind. Here are the top picks for the best personal loan options for bad credit.
1. Atlas Credit
Atlas Credit is known for friendly customer service and quick applications. It’s an excellent choice for personal loans in Texas, Oklahoma and Virginia. Borrowers with bad credit appreciate Atlas Credit because it doesn’t solely rely on traditional credit scores for loan approval and offers longer repayment terms. You don’t even need a checking account to apply.
Customer testimony: “I highly recommend Atlas Credit if you are looking for a quick and easy loan! Great staff and great customer service. In the past, I have been to several other places, and nothing compares to the excellent service that they provide!” – Zack
2. LendingPoint
LendingPoint offers straightforward loan access to borrowers in California, Wisconsin and Ohio. Notable features for applicants with bad credit include low minimum credit requirements, a wide range of loan purposes and flexible repayment terms.
Customer testimony: “My agent, Ronald Barber, was kind, professional, very helpful and quick! I appreciated that the process was fast and easy and the turnaround time to receive the funds is short. I recommend using LendingPoint to anyone considering a loan.” – Heather
3. Upstart
Upstart serves all U.S. states and provides personal loans without hidden fees. Many borrowers are approved and receive loans with minimum downtime. In addition to borrowers’ financial backgrounds, Upstart uses alternative data — such as education and employment history — for approvals.
Customer testimony: “Needed to consolidate some credit cards and was blown away at how fast Upstart funded my loan request. Easy to use platform without a ton of questions with information to hunt down. Done in less than 15 minutes!!” – Misty
4. OneMain Financial
Serving borrowers across 44 states, OneMain Financial offers loans that fit diverse budgets. It provides secured and unsecured loan options. Personal loans can be used for many purposes and are built to suit your needs. As a bonus, there are no prepayment penalties.
Customer testimony: “The staff is always friendly and willing to help . . . the application process is simple, and the whole process is fast and efficient.” – Raymond
5. Avant
Avant helps its customers move forward financially. The company works with middle-income consumers in mind and streamlines the online borrowing process. It is licensed in 43 states. Subprime borrowers can enjoy respectful customer service, a straightforward application process and fast funds.
Customer testimony: “Overall, great company. My loan had fast approval, even though I have horrible credit. I loved the fact that I had a low monthly payment. I have had two loans with this company and will use it in the future if needed. I even have a credit card with them.” – Delicia
6. Upgrade
Upgrade lets its loan applicants choose their monthly payment rate and terms that fit their timeline. It serves borrowers in all 50 states and Washington, D.C., and it provides tools for credit monitoring and financial education. The fixed interest never changes, helping you avoid surprises.
Customer testimony: “The process was very streamlined. Instructions were clear, and the communication was prompt. They responded to questions very quickly.” – Ian
7. OppLoans
With OppLoans, you can receive money on the same business day. It supports people who want to strengthen their financial health and have been turned away by mainstream options. The platform works with lending partners in most states, excluding Colorado, Connecticut, Georgia, Iowa, Maryland, Massachusetts, New York, South Dakota, Vermont and West Virginia.
Customer testimony: “From my experience, OppLoans has been amazing! From paying off early to support when things get tough. OppLoans, I gratefully appreciate you!” – Nichole
Comparing the Top Personal Loan Options for Bad Credit
Evaluating personal loan providers for customers with bad credit is easier if you consider key factors across the top lenders.
| Personal Loan Amounts | Personal Loan Annual Percentage Rates | Personal Loan Terms | |
| Atlas Credit | Up to $1,760 | Varies based on the principal loan amount | Five to 12 months |
| LendingPoint | $1,000 to $36,500 | 7.99% to 35.99% | 24 to 72 months |
| Upstart | $1,000 to $50,000 | 6.6% to 35.99% | Three or five years |
| OneMain Financial | $1,500 to $20,000 | 18.00% to 35.99% | 24 to 60 months |
| Avant | $2,000 to $35,000 | 9.95% to 35.99% | 24 to 60 months |
| Upgrade | Up to $50,000 | 7.99% to 35.99% | Two to seven years |
| OppLoans | $500 to $5,000 | 160% to 195% | Nine to 18 months |
Tips for Applying and Improving Approval Odds
Improving your credit score, even slightly, can unlock better rates. To apply for a personal loan, you must be over 18 years old and not currently filing for bankruptcy relief. You should be realistic about how much money you truly need to borrow and will have the ability to pay back. While requirements may vary across lenders and states, many lenders ask for the following:
- Proof of identity and address
- Verifiable source of employment and income
- Bank account information
- Completed loan application
Along with checking your current credit score and gathering your documents, you might want to consider a co-signer. The person you choose should have good credit and financial stability, as they would become legally responsible for the debt if you fail to make payments. A co-signer can increase your chance of approval and earn you better loan terms.
For the sake of a co-signer and yourself, remember to borrow responsibly as you seek out the best personal loan options for bad credit. You must identify and avoid loan red flags, including advance-fee scams, unlicensed lenders or unclear terms.
Go Forward With Personal Loan Options for Bad Credit
Don’t let your low credit score stand in the way of achieving your financial goals. With these personal loan options for bad credit, you can improve your financial health and receive the funds you need. Compare loan options thoroughly to find your ideal fit, and always borrow responsibly to improve your credit over time.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
Subscribe
Login
0 Comments
