Why Personal Loans Matter — Even with Bad Credit
If you have a low credit score, getting approved for a personal loan can feel impossible.
But here’s the truth — you still have options.
Many lenders in the USA now offer personal loans for bad credit with fair interest rates, quick approval, and flexible terms.
These loans can help you:
- Consolidate debt
- Pay emergency bills
- Cover car or home repairs
- Manage unexpected expenses
The key is knowing which lenders specialize in bad-credit borrowers and how to compare offers safely.
What Counts as “Bad Credit”?
A credit score below 600 is generally considered bad.
Here’s a simple breakdown:
| Credit Score | Category | Rating |
| 750 – 850 | Excellent | Top-tier |
| 700 – 749 | Good | Strong |
| 650 – 699 | Fair | Acceptable |
| 600 – 649 | Poor | Below average |
| Below 600 | Bad Credit | High risk |
Even if you’re in the “bad credit” range, lenders will also consider your income, employment history, and existing debts.
That’s why it’s still possible to get approved — especially if you choose the right company.
Top 7 Personal Loan Companies in the USA for Bad Credit (2025)
Here are the best lenders offering personal loans to people with less-than-perfect credit. These companies are known for flexible requirements, transparent fees, and fast approval.
1. Upstart
- Best for: Borrowers with limited credit history or low scores.
- Loan range: $1,000 – $50,000
- APR range: 7.8% – 35.99%
- Minimum credit score: 580
- Highlights: Uses education and job history (not just credit score) to approve loans.
- Approval time: As fast as one business day.
Why it’s great: Upstart uses AI to look beyond your credit score, giving fair chances to people rebuilding their finances.
2. Avant
- Best for: Mid-range bad credit borrowers.
- Loan range: $2,000 – $35,000
- APR range: 9.95% – 35.99%
- Minimum credit score: 580
- Highlights: Simple online process, quick approval, and transparent fees.
Why it’s great: Avant reports payments to all three credit bureaus — helping you rebuild credit over time.
3. OneMain Financial
- Best for: Borrowers who prefer in-person service.
- Loan range: $1,500 – $20,000
- APR range: 18% – 35.99%
- Minimum credit score: No strict requirement.
- Highlights: Offers secured and unsecured loans.
Why it’s great: You can qualify even if your credit is poor, especially with a co-signer or collateral.
4. Upgrade
- Best for: Quick online approval with free credit monitoring.
- Loan range: $1,000 – $50,000
- APR range: 8.49% – 35.99%
- Minimum credit score: 560
- Highlights: Offers debt-consolidation tools and autopay discounts.
Why it’s great: Ideal for people consolidating high-interest credit card debt.
5. LendingPoint
- Best for: Fast funding for people with steady income.
- Loan range: $2,000 – $36,500
- APR range: 9.99% – 35.99%
- Minimum credit score: 580
- Highlights: Soft credit check for pre-qualification.
Why it’s great: You can see your loan offers without hurting your credit score.
6. Universal Credit
- Best for: People needing debt consolidation or credit-building help.
- Loan range: $1,000 – $50,000
- APR range: 11.69% – 35.99%
- Minimum credit score: 560
- Highlights: Offers educational tools to improve your credit over time.
Why it’s great: Flexible repayment terms and no prepayment penalties.
7. BadCreditLoans.com
- Best for: Comparing multiple offers at once.
- Loan range: $500 – $10,000
- APR range: Varies by lender
- Minimum credit score: None
- Highlights: Acts as a loan marketplace connecting you to lenders.
Why it’s great: Quick and simple — one form gives you access to several bad-credit lenders instantly.
Comparison Table: Personal Loans for Bad Credit (2025)
| Lender | Loan Range | Min. Credit Score | APR Range | Funding Speed | Special Feature |
| Upstart | $1,000–$50,000 | 580 | 7.8%–35.99% | 1 day | AI-based approval |
| Avant | $2,000–$35,000 | 580 | 9.95%–35.99% | 1–2 days | Credit-building |
| OneMain Financial | $1,500–$20,000 | None | 18%–35.99% | 1–3 days | Secured option |
| Upgrade | $1,000–$50,000 | 560 | 8.49%–35.99% | 1 day | Debt consolidation tools |
| LendingPoint | $2,000–$36,500 | 580 | 9.99%–35.99% | 1–2 days | Soft credit check |
| Universal Credit | $1,000–$50,000 | 560 | 11.69%–35.99% | 1–3 days | Education tools |
| BadCreditLoans.com | $500–$10,000 | None | Varies | 1–3 days | Loan marketplace |
How to Qualify for a Personal Loan with Bad Credit
Even with low credit, you can still boost your approval chances by following these steps:
- Check your credit report — Correct any errors before applying.
- Show stable income — Lenders want proof that you can make payments.
- Apply for pre-qualification — It gives you an idea of your rate without lowering your score.
- Add a co-signer — Someone with good credit can help secure approval.
- Borrow only what you need — Smaller loan amounts are easier to approve.
- Compare lenders — Don’t settle for the first offer; rates vary widely.
Alternatives to Personal Loans
If you’re struggling to qualify, consider:
- Credit-builder loans (through credit unions).
- Secured personal loans (backed by savings or assets).
- Payday alternative loans (PALs) from federal credit unions.
- 0% APR credit cards for short-term financing (if eligible).
Red Flags to Avoid
Watch out for:
- Lenders who guarantee approval without checking income.
- Requests for upfront fees before loan approval.
- Unrealistic promises like “No Credit Check Loans” — often scams.
Always confirm a lender is registered and licensed in your state.
Final Thoughts
Having bad credit doesn’t mean you can’t borrow money.
The best personal loan companies — like Upstart, Avant, and OneMain Financial — focus on real factors such as your income and repayment ability instead of just your credit score.
Compare several offers, read the fine print, and borrow only what you can comfortably repay.
With consistent on-time payments, you can use your new loan not only to handle expenses but also to rebuild your credit score.