The Best Bad Credit Loans in 2024



Bad credit can be a significant barrier when seeking financial assistance, but various lenders offer loans specifically designed for individuals with low credit scores. These loans often come with higher interest rates and stricter terms but can provide much-needed relief for those in financial need. This guide explores the best bad credit loans, including their features, eligibility criteria, application processes, risks, and tips for choosing the right lender.

Bad credit loans are financial products designed for individuals with poor or limited credit history. These loans typically have higher interest rates and fees due to the increased risk associated with lending to individuals with bad credit. However, they offer an opportunity for borrowers to access funds and potentially improve their credit over time with responsible repayment.

Types of Bad Credit Loans

  1. Personal Installment Loans: These are fixed-term loans where borrowers receive a lump sum upfront and repay it over a set period in regular installments. They can be secured or unsecured.
  2. Payday Loans: Short-term, high-interest loans designed to be repaid on the borrower’s next payday. They are accessible but come with significant risks due to their high costs.
  3. Secured Loans: Loans backed by collateral, such as a car or savings account. These loans often have lower interest rates because the lender has a security interest in the collateral.
  4. Credit Union Loans: Loans offered by credit unions, which are member-owned financial cooperatives. Credit unions often have more flexible lending criteria and lower interest rates.
  5. Peer-to-Peer Loans: Loans funded by individual investors through online platforms. These can offer more competitive rates and terms for borrowers with bad credit.
  6. Cash Advances: Short-term loans taken against a credit card’s available credit. While convenient, they often come with high fees and interest rates.

Top Bad Credit Loan Lenders

Here is a detailed look at some of the best bad credit loan providers:



Upstart is an online lending platform that uses artificial intelligence to assess creditworthiness, considering factors beyond credit scores, such as education and employment history. Features include loan amounts from $1,000 – $50,000, APR: 6.76% – 35.99%and loan term between 3 to 5 years.


  • Considers non-traditional factors for approval
  • Quick funding
  • No prepayment penalties


  • Origination fees range from 0% to 8%
  • High maximum APR

OneMain Financial

OneMain Financial specializes in personal installment loans for individuals with bad credit, offering both secured and unsecured options. The loan amount ranges from $1,500 – $20,000, APR: 18.00% – 35.99%and a loan term from 2 to 5 years. You could get same-day funding in some cases with OneMain Financial.



  • Secured loan options available
  • Same-day funding possible
  • Physical branches for in-person support


  • High interest rates
  • Origination fees apply


Avant offers personal loans tailored to borrowers with credit scores ranging from fair to poor. They provide a streamlined online application process. The features of Avant include loan amounts from $2,000 – $35,000, APR: 9.95% – 35.99% and a loan repayment time between 2 to 5 years.


  • Quick and easy online application
  • No prepayment penalties
  • Transparent terms


  • High maximum APR
  • Administration fee up to 4.75%


LendingPoint offers personal loans to borrowers with credit scores as low as 580. They focus on near-prime borrowers who are often underserved by traditional lenders. Its features include loan amounts from $2,000 – $36,500, APR: 7.99% – 35.99%, repayment time of 2 to 5 years and a very short funding time.


  • Lower minimum credit score requirement
  • Quick approval and funding process
  • Flexible loan terms


  • Origination fee up to 6%
  • Higher APR for lower credit scores


OppLoans provides installment loans for borrowers with very poor credit, often approving applicants who might be denied by other lenders. It features loan amounts between $500 – $4000, APR: 59.00% – 160.00%, loan term ranging from 9 to 18 months and a funding time as soon as the next business day


  • High approval rates for poor credit
  • Quick funding
  • No prepayment penalties


  • Extremely high APR
  • Limited loan amounts

Eligibility Criteria

While bad credit loans are accessible to individuals with poor credit, lenders may still have certain eligibility requirements, including a minimum age limit of 18, proof of a stable income to ensure the ability to repay the loan. A valid government-issued ID and an active checking or savings account for fund disbursement and repayment.

Application Process

The application process for bad credit loans typically involves the following steps:

  1. Research Lenders: Compare various lenders to find the best terms and rates for your needs.
  2. Pre-Qualification: Some lenders offer a pre-qualification process to check your eligibility without impacting your credit score.
  3. Complete Application: Fill out the lender’s application form, providing accurate information and required documentation.
  4. Review Loan Offer: Carefully review the loan terms, including interest rate, fees, and repayment schedule.
  5. Accept Loan Terms: If satisfied with the terms, accept the loan offer.
  6. Receive Funds: Once approved, the funds are typically deposited into your bank account within one business day.

Risks and Considerations

While bad credit loans can provide crucial financial relief, they come with significant risks and considerations:

  1. High Interest Rates: Bad credit loans often have high APRs, making them expensive over time.
  2. Fees: Origination fees, late payment fees, and other charges can add to the cost of the loan.
  3. Debt Cycle: The high cost of bad credit loans can lead to a cycle of borrowing and debt if not managed responsibly.
  4. Predatory Lenders: Be wary of lenders who engage in predatory practices, such as unclear terms, excessively high fees, or aggressive collection tactics.

Tips for Choosing the Right Bad Credit Loan

  1. Compare Offers: Shop around and compare offers from multiple lenders to find the best rates and terms.
  2. Read the Fine Print: Understand all the terms and conditions before signing a loan agreement.
  3. Check for Hidden Fees: Be aware of any additional fees that may not be immediately apparent.
  4. Consider Alternatives: Explore alternative options, such as secured loans, credit union loans, or assistance from family and friends.
  5. Assess Your Repayment Ability: Ensure that you can comfortably repay the loan according to the terms to avoid further financial difficulties.

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