Finding a personal loan when you have bad credit can feel like an uphill battle. However, many lenders offer options tailored to people with less-than-perfect credit scores. Whether you’re facing a financial emergency or trying to consolidate debt, securing the right loan can provide you with the breathing room you need. In 2024, a variety of lenders are offering personal loans for individuals with bad credit, and we’ve compiled a list of the best options available to help you make an informed choice.
1. Upstart Personal Loans
Key Features:
- Loan amounts ranging from $1,000 to $50,000
- Repayment terms between 3 to 5 years
- Fast approval and funding process (sometimes within one business day)
- A non-traditional approach to lending, using factors like education and job history in addition to your credit score
Pros:
- Offers fast funding
- Flexible repayment terms
- Approvals based on alternative data, not just your credit score
Cons:
- Higher APRs compared to traditional lenders
- Charges an origination fee up to 8%
Price: APRs range from 5.4% to 35.99%
2. Avant Personal Loans
Key Features:
- Loans from $2,000 to $35,000
- Repayment terms from 24 to 60 months
- Transparent fee structure with no prepayment penalties
- Flexible credit score requirements, making it ideal for those with bad credit
Pros:
- High loan amounts available
- No prepayment penalty
- Fast approval and access to funds
Cons:
- Origination fees up to 4.75%
- Higher interest rates for borrowers with bad credit
Price: APRs range from 9.95% to 35.99%
3. OneMain Financial
Key Features:
- Secured and unsecured loan options
- Loan amounts from $1,500 to $20,000
- Flexible repayment terms from 24 to 60 months
- In-person loan process available at physical branches
Pros:
- Secured loans may come with lower rates
- Large number of physical branch locations for face-to-face customer service
- Quick access to funds, often within 1 to 2 business days
Cons:
- Only available in select states (for in-person loans)
- Origination fees of up to 5%
Price: APRs range from 18.00% to 35.99%
4. Best Egg Personal Loans
Key Features:
- Loan amounts from $2,000 to $50,000
- Repayment terms between 3 to 5 years
- No prepayment fees
- Fast online application process with quick decision-making
Pros:
- Competitive interest rates for borrowers with fair credit
- Quick access to funds (typically within 1 to 3 days)
- No prepayment penalties
Cons:
- Origination fees ranging from 0.99% to 5.99%
- Higher rates for those with poor credit
Price: APRs range from 5.99% to 29.99%
5. LendingClub Personal Loans
Key Features:
- Loan amounts from $1,000 to $40,000
- Repayment terms of 3 or 5 years
- Peer-to-peer lending platform connecting borrowers with investors
- Quick funding in as little as 4 business days
Pros:
- Lower rates available for borrowers with good to fair credit
- Transparent, low fees
- No prepayment penalties
Cons:
- Higher fees for loans with smaller amounts
- Longer approval process compared to other lenders
Price: APRs range from 6.95% to 35.89%
6. Peerform Personal Loans
Key Features:
- Loans from $4,000 to $25,000
- Fixed terms of 3 or 5 years
- Credit score requirement of 600 or higher
- Ideal for borrowers who want a peer-to-peer lending option
Pros:
- Competitive APRs for those with fair credit
- No prepayment fees
- Fast online application process
Cons:
- Higher rates for borrowers with poor credit
- Loan amounts are relatively small
Price: APRs range from 5.99% to 29.99%
7. Upgrade Personal Loans
Key Features:
- Loan amounts from $1,000 to $50,000
- Repayment terms from 36 to 60 months
- Offers credit lines in addition to personal loans
- Funds can be used for debt consolidation, home improvement, or other personal expenses
Pros:
- Provides flexible credit lines
- Quick application process
- No prepayment fees
Cons:
- Origination fees up to 6%
- Higher rates for lower credit scores
Price: APRs range from 7.99% to 35.99%
Conclusion
Securing a personal loan when you have bad credit is not impossible. With the right lender, you can access funds to help you manage your finances or consolidate debt. The options above are some of the best personal loans for bad credit in 2024, offering flexible repayment terms, fast funding, and competitive rates for borrowers with poor credit. When choosing a loan, consider factors like APR, fees, repayment terms, and loan amounts to find the best match for your needs.
