Introduction
Navigating the world of personal loans can be challenging, especially if you have bad credit. While a less-than-perfect credit score might limit your options, it doesn’t mean you’re out of luck. In 2024, several lenders are offering personal loans specifically tailored for individuals with bad credit. These loans can help you cover unexpected expenses, consolidate debt, or even build your credit over time.
In this blog, we’ll explore the best personal loans for bad credit in 2024, highlighting key features, eligibility requirements, and tips for choosing the right loan for your needs.
1. Upgrade
Overview: Upgrade is known for offering personal loans to individuals with lower credit scores, with a focus on providing an easy application process and quick funding.
Key Features:
- Loan Amounts: $1,000 – $50,000
- APR: 8.24% – 35.97%
- Term Lengths: 24 – 84 months
- Credit Score Requirement: 560+
Why It’s Great: Upgrade offers a variety of tools to help borrowers manage their finances, including a credit monitoring service. They also have a strong reputation for customer service, making them a good option for those new to personal loans.
2. Avant
Overview: Avant is another top lender for borrowers with bad credit, offering flexible loan options and a fast approval process.
Key Features:
- Loan Amounts: $2,000 – $35,000
- APR: 9.95% – 35.99%
- Term Lengths: 24 – 60 months
- Credit Score Requirement: 580+
Why It’s Great: Avant is known for its user-friendly online platform and mobile app, allowing borrowers to manage their loans easily. They also offer a variety of repayment options to fit different budgets.
3. LendingPoint
Overview: LendingPoint specializes in personal loans for individuals with credit scores as low as 580. They focus on transparency and providing a clear understanding of loan terms.
Key Features:
- Loan Amounts: $2,000 – $36,500
- APR: 7.99% – 35.99%
- Term Lengths: 24 – 60 months
- Credit Score Requirement: 580+
Why It’s Great: LendingPoint’s flexible loan options and straightforward application process make it a solid choice for those looking to rebuild their credit while securing necessary funds.
4. OneMain Financial
Overview: OneMain Financial has been a trusted lender for over a century, offering personal loans to borrowers with a wide range of credit scores, including those with bad credit.
Key Features:
- Loan Amounts: $1,500 – $20,000
- APR: 18.00% – 35.99%
- Term Lengths: 24 – 60 months
- Credit Score Requirement: No minimum
Why It’s Great: OneMain Financial offers secured and unsecured loans, allowing you to choose the option that best suits your needs. Their in-person branches also provide a more personalized loan experience.
5. Upstart
Overview: Upstart uses a unique underwriting model that considers factors beyond your credit score, such as education and job history, making it easier for those with bad credit to qualify.
Key Features:
- Loan Amounts: $1,000 – $50,000
- APR: 5.42% – 35.99%
- Term Lengths: 36 or 60 months
- Credit Score Requirement: 600+
Why It’s Great: Upstart’s AI-driven platform can offer fast approval and funding, often within one business day. This makes it an excellent choice for those who need money quickly.
6. BadCreditLoans.com
Overview: BadCreditLoans.com is a loan aggregator that connects borrowers with a network of lenders who specialize in bad credit loans.
Key Features:
- Loan Amounts: $500 – $10,000
- APR: Varies by lender (typically 5.99% – 35.99%)
- Term Lengths: 3 – 60 months
- Credit Score Requirement: No minimum
Why It’s Great: By working with multiple lenders, BadCreditLoans.com increases your chances of finding a loan that suits your needs. The platform also offers educational resources to help borrowers make informed decisions.
7. OppLoans
Overview: OppLoans is a direct lender known for offering fast funding to borrowers with poor credit. While their interest rates are higher, they provide a lifeline for those in urgent need of cash.
Key Features:
- Loan Amounts: $500 – $4,000
- APR: 59% – 160% (varies by state)
- Term Lengths: 9 – 18 months
- Credit Score Requirement: No minimum
Why It’s Great: OppLoans offers a much faster approval process, with funds typically available the next business day. Their high approval rate makes them a viable option when other lenders have turned you down.
8. SeedFi
Overview: SeedFi offers a unique product called the “Credit Builder Plan,” which is designed to help borrowers with bad credit build savings and improve their credit simultaneously.
Key Features:
- Loan Amounts: $500 – $4,000
- APR: 4.03% – 5.26%
- Term Lengths: 7 – 27 months
- Credit Score Requirement: 600+
Why It’s Great: SeedFi’s Credit Builder Plan allows you to borrow money, build your credit, and save simultaneously. This is a great option for those who are looking to improve their financial standing long-term.
9. Peerform
Overview: Peerform is a peer-to-peer lending platform that offers personal loans to borrowers with credit scores as low as 600. The platform connects borrowers with individual investors.
Key Features:
- Loan Amounts: $4,000 – $25,000
- APR: 5.99% – 29.99%
- Term Lengths: 36 or 60 months
- Credit Score Requirement: 600+
Why It’s Great: Peerform’s platform can offer lower interest rates than traditional lenders, and the peer-to-peer model may be more flexible in terms of approval criteria.
10. Prosper
Overview: Prosper is another peer-to-peer lending platform that considers factors beyond your credit score when assessing loan applications.
Key Features:
- Loan Amounts: $2,000 – $40,000
- APR: 6.95% – 35.99%
- Term Lengths: 36 or 60 months
- Credit Score Requirement: 640+
Why It’s Great: Prosper offers competitive rates and a straightforward application process. Borrowers can also benefit from a quick funding timeline, with many loans funded within a few days.
Tips for Choosing the Right Personal Loan
- Compare Interest Rates: While some lenders specialize in bad credit loans, the interest rates can vary widely. Be sure to compare offers to find the most affordable option.
- Check Fees: Look out for origination fees, late payment fees, and prepayment penalties. These can add up and make your loan more expensive than it initially appears.
- Consider the Loan Term: A longer loan term may result in lower monthly payments but could cost you more in interest over time. Choose a term that balances affordability with overall cost.
- Read Reviews: Customer reviews can provide insight into a lender’s customer service, loan terms, and transparency. This can help you avoid predatory lenders.
- Look for Flexible Repayment Options: Some lenders offer benefits like the ability to change your payment due date or skip a payment in case of financial hardship. These features can be helpful if you’re on a tight budget.
Conclusion
Finding a personal loan with bad credit might seem daunting, but there are plenty of options available in 2024. By carefully comparing loan offers and considering factors like interest rates, fees, and repayment terms, you can find a loan that meets your needs and helps you improve your financial situation.
Remember, a personal loan should be used as a tool to help you achieve your financial goals. Whether you’re consolidating debt, covering an emergency expense, or making a big purchase, choose a loan that fits your budget and contributes to your long-term financial health.
