The Best Personal Loans for Bad Credit of 2023

Americans like personal loans: personal loan originations grew faster than any other form of credit from 2017 to 2019[1]. These loans are popular for debt consolidation, medical costs, large purchases, vacations, and other uses. If you want to get a personal loan with bad credit, though, your options will be limited.

Let’s face it, a credit score between 300 and 579 is bad. It is difficult to find a lender who will give you a personal loan if your credit score is at this level. If you do find a loan, you may find yourself paying very high interest rates and substantial fees. You may find yourself dealing with lenders that are not entirely reputable.

You may be tempted to try payday loans, title loans, or other forms of “courtesy loans“. These loans don’t require a credit check, but they are almost never a good option. They carry devastating interest rates, often higher than 300% annually. Fees are often high.

Don’t give up, though. It is possible to get a personal loan with bad credit. Some lenders do not have a minimum credit score, though you may have to prove that you’re employed and you have enough income to pay the loan. You won’t get the best terms, but they will be better than what you’d get from payday lenders.

Looking for a personal loan with bad credit is not going to be a picnic, but you probably knew that already. Here’s what’s in store.

None of that is something you want to face, but that’s the reality of bad credit. Preparation can make things easier.

Getting a personal loan with bad credit will be easier if you consider these factors.

Now that we’ve reviewed the process, let’s look at some of the best lenders you can consider.

It’s not easy to get a personal loan with bad credit. You’ll have to try several lenders, and there’s no guarantee that any will approve your application.

Many borrowers overlook this possibility. If you’re a regular customer at a local credit union or bank you may be able to get a loan even with bad credit. They have your financial information and they are in a position to assess your cash flow. You can often have a face-to-face conversation with someone who can make a decision.

Some local banks and credit unions have loan products specifically designed to help customers avoid using payday loans. It’s always worth asking.

Your credit score will close you out of most online lending options, but there are still a few possibilities.

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OneMain Financial makes personal loans of $20,000 and below. Instead of a credit check, they use an “ability to pay evaluation” which considers income, employment history, and other factors.

Possible Finance makes small loans, up to $500, without a credit check. They advertise these as an alternative to payday loans. Loan terms are longer than payday lenders offer and your payments are reported to credit bureaus, helping you improve your credit score.

It’s also worth checking your area for local and regional lenders who are willing to work with borrowers who have bad credit.

Loan matching services do not lend money. They are brokers that pass your details on to multiple lenders to see what offers you can get. There are a number of loan matching services that serve borrowers with bad credit.

Most of these companies have online complaints, ranging from reports of numerous calls and emails from lenders to customer service issues to claims that personal information was not properly secured. Check the service carefully and be alert for signs of trouble.

Some loan matching services to consider:

Bankrate can help you match with lenders whose rates are no greater than 36.00% APR* with terms from 6 to 84 months.

PersonalLoans.com is both a loan matching company and a peer-to-peer lending platform. There’s no stated minimum credit score.

Upstart is a highly rated loan marketplace handling loans up to $50,000. The minimum credit score is 300. They consider education and other non-traditional data in lending decisions, so they are a great choice if you have a thin credit file.

AmOne will lend as much as $50,000. Interest rates range from 3.99% to 35.99%*. AmOne says they will lend to borrowers with any credit score.

LendingClub used to be a peer-to-peer loan service. It is now a loan matching service. Interest rates may reach 36.00%*, with origination fees up to 6%. The maximum loan is $40,000. Their website does not list a minimum credit score.

Check rates via Credible.com

CashUSA does not have a minimum credit score. Borrowers must earn a minimum of $1000/month post-tax and have an active checking account. Loans are up to $10,000, rates are up to 35.99*%.

BadCreditLoans.com handles loans up to to $10,000. Rates are up to 35.99%*. They do not list a minimum credit score but they require evidence of a steady income.

These services specialize in bad credit loans. They will still have other criteria, and you cannot be certain that they will approve your application. They are still a good place to start!

Hopefully, that list will help you solve your immediate problem and find a personal loan for bad credit. Once you’re past that hurdle you’ll probably want to consider another challenge: improving your credit so you have more options next time you need to borrow.

That may sound like an insurmountable problem, but part of the solution is right in front of you. Start by making the payments on your new personal loan on time, every time. That will move your score in the right direction.

That’s step one. For other practical ways to improve your credit, check out our guide on how to rebuild credit.

Personal loans for bad credit are not easy to get. It will take effort, it will be expensive, and you may deal with lenders you’d rather avoid. Those are the penalties we pay for having bad credit, and there’s no way to get around them. You may still be able to get the loan you need, and the experience can motivate you to change your credit for the better!

* Annual Percentage Rates (APR), loan term, and monthly payments are estimated based on analysis of information provided by you, data provided by lenders, and publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers’ credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term, and credit history. All loans are subject to credit review and approval. When evaluating offers, please review the lender’s Terms and Conditions for additional details.

Here are the factors that we looked at when choosing the best personal loans for bad credit for 2023.

Not all of these factors matter to all borrowers, so you’ll want to focus on the ones that are important to you.