Best personal loans for bad credit

Do you want to know about the best personal loans you can apply for with a bad credit score? Responsible Economy showcases the key features of personal loans available in the United States for individuals with a low credit score.

Best Loans with Bad Credit Score

Upgrade

In our selection of top contenders, Upgrade presents an enticingly low minimum APR. However, if your credit isn’t in stellar shape, you might face a higher interest rate. For individuals with a poor credit history, the APR could approach 35.99%. Notably, Upgrade sets a lower entry point for loan amounts, starting at $1,000, which is notably lower than the offerings of many comparable lenders.

When opting for Upgrade, you should expect an origination fee ranging from 1.85% to 9.99%, which will be deducted from your loan proceeds. While Upstart could levy a late fee of up to $10, this lender doesn’t impose prepayment penalties. Upon accepting your loan offer, your funds could be disbursed as soon as the following day.

Avant

Avant distinguishes itself by offering a more lenient qualification process. While its minimum credit score requirement serves as a guideline rather than a strict prerequisite, most Avant borrowers generally possess credit scores ranging from 600 to 700. Promptly funded loans are a hallmark of Avant’s service, often reflecting in account deposits by the subsequent business day if your loan is approved by 4:30 p.m. CT Monday through Friday.

Avant further impresses with its extensive customer service hours, keeping its phone lines open for at least 13 hours each day throughout the week. Additionally, the lender boasts a robust mobile app.

Upstart

Upstart’s minimum credit score threshold stands at 600, but a lower score may lead to a higher APR. Nonetheless, Upstart goes beyond credit scores, also evaluating employment history and educational background—such as school attended and field of study—to inform lending decisions. This approach can potentially benefit borrowers whose credit scores alone may not secure a loan.

Upstart extends loan repayment options within a relatively limited scope—select between three-year and five-year terms. On the plus side, the company often expedites loan disbursements, usually within a single business day, making it a suitable choice for those seeking rapid access to funds. Notably, there are no prepayment penalties with this lender.

OneMain Financial

While OneMain Financial exhibits a higher minimum APR compared to other top choices, it doesn’t impose a minimum credit score requirement for application. Consequently, if your credit is less than optimal, qualifying for a loan with this lender may be more achievable. Expedited funding on the same day of application submission is also a distinct possibility.

OneMain sets itself apart by offering both secured and unsecured personal loans, a feature rarely found among personal loan lenders. This inclusion of secured loans, backed by collateral such as a home or vehicle, provides borrowers with versatile options.

LendingClub

LendingClub introduces flexibility by enabling the addition of a co-borrower to your loan application. This option proves advantageous for those concerned about qualification or avoiding higher interest rates. However, note that the disbursement process may take two to four business days, slightly longer than many other lenders.

Furthermore, LendingClub mandates a late fee equivalent to 5% of the minimum payment amount or $15 (whichever is greater), calculated based on your total loan amount.

LendingPoint

LendingPoint stands out with the lowest minimum credit score requirement among our top choices, making it an attractive option for individuals with limited credit scores. The application process with LendingPoint is swift, and approval can often be granted on the same day you apply. Upon approval, funds can typically be accessible on the next business day.

However, bear in mind that LendingPoint is unavailable for residents of Nevada or West Virginia. Additionally, potential origination fees may apply, contingent on your state of residence.

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Updated the day 1 September, 2023 by Alfredo Barandiarán

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