Best Bad Credit Loans

Our choice for the best overall lender for borrowers with bad credit is Upgrade. It offers a range of financial products that include personal loans. These loans are offered in amounts from $1,000 to $50,000, with repayment terms that last from 24 to 84 months.

Upgrade lets applicants check their rates without impacting their credit, and the majority of its loans are unsecured, with no collateral required. This lender also lets people apply online within minutes, then choose a repayment term and monthly payment that fits their budget. Annual percentage rates (APRs) for personal loans from Upgrade range from 7.46% to 35.97% at the time of publishing. Origination fees fall between 1.85% to 8% of the loan amount.

Read our Upgrade profile for more information on this lender.

• No application fees
• Competitive interest rate range compared to other lenders
• Longer repayment terms available than with many other lenders
• Joint applications are allowed

• Origination fees equal 1.85% to 8% of the loan amount
• Interest rates for bad credit can be high (up to 35.97%)

ConsumerAffairs readers who have used the company overwhelmingly report positive experiences overall.

Its best reviews tend to center around the easy application process and speedy loan funding. One reviewer, Melanie from Huntington Station, NY, stated, “When my loan was approved the larger portion of the loan was paid to my credit card to pay it down. The lesser amount was deposited into my checking account. All of this was done within 2-3 business days so it was fast. I found the entire process to be easy and convenient and I appreciate it.”

However, some reviewers complained about high origination fees and poor customer service after receiving their money.

Borrowers needing a personal loan with flexible repayment terms and low fees might want to consider LendingPoint. LendingPoint offers loans ranging from $2,000 to $36,500, and applicants can check their rates online without affecting their credit. From there, they can see if they qualify and how much they can borrow. Borrowers also get the option to choose their repayment terms (anywhere from 24 to 72 months) and monthly payments before receiving loan funds as soon as the next business day.

Rates for LendingPoint loans range from 7.99% to 35.99% APR at the time of publishing. LendingPoint loans may have origination fees of up to 7% of the loan amount, but it’s also possible to have no origination fee at all. There are no prepayment fees, either.

LendingPoint doesn’t disclose a minimum credit score requirement, but it states that it’s able to serve 85% of the FICO population. LendingPoint does list a minimum income requirement of $35,000 for applicants, though, and loans are not available in West Virginia or Nevada.

Read our LendingPoint profile to learn more about this company.

• Origination fees can be as low as 0%
• Available in 48 states and Washington, D.C.
• Funds loans as soon as the next business day after approval
• Lets applicants check their rates with no impact on their credit

• No option for joint applications
• Lower maximum loan limit than some other lenders
• Minimum income requirement of $35,000
• Interest rates for bad credit can be high (up to 35.99%)

There are no ConsumerAffairs reader reviews available for LendingPoint at the time of publishing.

If you need a small loan, Credit Direct offers personal loans starting at $1,000. Borrowers get to check their rates without hurting their credit, and funding can be sent within 24 hours of signing loan documents. Repayment terms can last from 12 to 60 months, with rates from 4.99% to 29.99% APR, and these loans don't come with any administration fees.

Credit Direct allows co-signers and joint applicants on its loans, and all its loan options are unsecured. While this company offers some of the best bad credit loans available today, they are only available in 11 states at this time — Alabama, Arizona, Arkansas, California, Florida, Louisiana, Maryland, North Carolina, Oklahoma, Pennsylvania and Texas.

The minimum credit score you’ll need for a Credit Direct loan is not disclosed.

Read our Credit Direct profile for more information.

• No hidden fees
• Co-signers and joint applications are allowed
• Lower interest rate range than many other bad credit lenders
• Borrowers can check their rates with no impact on their credit

• Only available in 11 states
• Some loans may be funded through partners of Credit Direct
• Funding usually takes 48 to 72 hours, though it’s sometimes faster

Credit Direct has mostly positive reviews from ConsumerAffairs readers. Customers praise the lender's fast and easy application process as well as its courteous and professional customer service reps. Sandra of Mechanicsburg, PA, had this to say about their experience: “Once the application was sent in, I was contacted immediately. I was able to say what I needed and the payment I would need to get the loan. They worked with me to get what I needed. Was very fast and efficient. I was very happy with how it was handled and how quick.”

However, some reviewers claim this lender can be overly aggressive when it comes to following up with loan inquiries via phone and email.

If you’re looking for quick, same-day funding, consider Rocket Loans.

Rocket Loans is the personal loan arm of Rocket Companies, which also includes Rocket Mortgage (one of the best mortgage lenders in the United States). Its personal loans are offered in amounts ranging from $2,000 to $45,000, and repayment terms can be for either 36 or 60 months. Rates can range from 8.416% (with an autopay discount) to 29.99% APR.

Borrowers should also be aware that there is an origination fee of up to 7% for each loan, and late fees and insufficient funds fees are $15 for each instance. There is no prepayment penalty, though.

Rocket Loans are available in 47 states (excluding Iowa, West Virginia and Nevada).

• Same-day funding available
• Completely online process
• Borrowers can check their rates with no impact on their credit

• Only two repayment terms available — 36 or 60 months
• Origination fees of up to 7%

There are no reviews for Rocket Loans from ConsumerAffairs readers at the time of publishing.

Avant offers several financial products, including personal loans that range from $2,000 to $35,000. Borrowers can use these funds to pay for medical bills, home projects and unexpected expenses, and loans can be funded as soon as the next business day after an application is approved.

Borrowers can check rates and compare options without affecting their credit, and rates range from 9.95% to 35.95% APR. Repayment terms can last from 12 to 60 months. Be aware that an administration fee of up to 4.75% applies to each loan, though.

Read our Avant profile to find out more about this lender and how to apply for its loans.

• Online application process
• Potential for funding as soon as the next business day
• Checking your rate won’t affect your credit

• Lower maximum loan amount than our other top picks
• Most successful borrowers have credit scores between 600 and 700
• High interest rates for bad credit (up to 35.95%)

Some ConsumerAffairs reviewers complain about payments being slow to post their Avant accounts or incorrectly applied to their balances.

However, many of the company’s positive reviews focus on its easy application process and good customer service. For instance, Atha of Hiram, GA, said: “The application process was easy and quick. They rushed to assist my needs and the payments were just right. They are the best in professional quality service and do their best to answer each/any questions you may ask easily. I enjoyed working with their company!”

Borrowers should consider Upstart if they have extremely low credit scores or no credit histories at all. Its personal loans are available for $1,000 to $50,000, with rates ranging from 5.6% to 35.99% APR. Applicants can also check their rates with no effect on their credit.

Minimum loan amounts may be different depending on where you live, however. According to Upstart, these states have higher minimums: Georgia ($3,100), Hawaii ($2,100), Massachusetts ($7,000), New Mexico ($5,100) and Ohio ($6,000).

While starting rates from this lender are lower than what many competitors offer, it's worth noting that its best rates are for consumers with good or excellent credit. Also, an origination fee of up to 10% of the loan amount can apply. Late fees equal 5% of the past due amount or $15, whichever is greater, and other fees may apply, including an unsuccessful payment fee. Additionally, loan terms are limited to either 36 or 60 months.

Read our Upstart profile for more information on this lender and its personal loans.

• Accepts applicants with minimal credit histories
• Its lowest interest rates are better than many other lenders’ minimums
• Borrowers can check their rates without hurting their credit
• Funding can take as little as one business day

• Origination fee can be as high as 10% of the loan amount
• Bad credit borrowers face high interest rates (up to 35.99% APR)
• Only two repayment terms offered — 36 or 60 months

At the time of publishing, there aren’t enough reader reviews for Upstart on ConsumerAffairs for us to draw a fair conclusion.