Online loans direct lenders for bad credit

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38 Lenders reviewed

40 Loan features considered

10 Awarded "Best of 2022"

Approximately one-third of Americans have a credit score between 300 and 669—a score that puts them into the range of poor to fair. If you’re one of the millions of people in that category, you know how difficult it can be to find a personal loan lender willing to work with you. 

Although many lenders offer loans only to those with good to excellent credit, there are lenders with loan options specifically for individuals with less-than-perfect credit. We reviewed leading lenders and identified the best loans for bad credit based on their loan amounts, annual percentage rates (APRs), fees, and repayment terms. 

Whether you need a loan for an emergency medical bill or to replace a broken appliance, these lenders can help you get the money you need fast. 

Best Loans for Bad Credit of January 2023

If youre not seeing anything in the results that are a good fit for your needs, consider warranties from these companies:

• Best Home Warranties
• Best Emergency Loans for Bad Credit
• Best Personal Loans for Bad Credit

CompanyAPRCredit Score est.Loan AmountMore DetailsBest Overall

4.3

APR With Autopay Discount

Recommended Minimum Credit Score

560

This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score.

Loan Amount

4

APR With Autopay Discount

Recommended Minimum Credit Score

Not Disclosed

This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score.

Loan Amount

3.7

APR Range

Recommended Minimum Credit Score

550

This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score.

Loan Amount

4

APR Range

Recommended Minimum Credit Score

600

This lender does not offer prequalification.

Loan Amount

3.7

APR Range

Recommended Minimum Credit Score

300

This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score.

Loan Amount

4.7

APR Range

Recommended Minimum Credit Score

650

This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score.

Loan Amount

4.1

APR Range

Recommended Minimum Credit Score

600

This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score.

Loan Amount

4.1

APR Range

Recommended Minimum Credit Score

600

This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score.

Loan Amount

2.9

APR Range

Recommended Minimum Credit Score

Not Disclosed

This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score.

Loan Amount

3.6

APR Range

Recommended Minimum Credit Score

580

This lender doesn't share a recommended credit score, but it does allow you to prequalify for a loan. That means you can see if and how much you can borrow from them, without hurting your credit score.

Loan Amount

Filter (10)

Best Loans for Bad Credit

Expand

Best Loans for Bad Credit

• Our Top Picks
• Upgrade
• Rocket Loans
• Avant
• Navy Federal Credit Union
• Upstart
• PenFed Credit Union
• First Tech Federal Credit Union
• Best Egg
• Mariner
• LendingPoint
• See More (7)
• Compare Providers

• Final Verdict

• How to Choose

• Frequently Asked Questions

• Methodology

Best Overall : Upgrade

Investopedia's Rating

4.3

• APR Range: 7.96% - 35.97%
• Time To Receive Loan: 1 day
• Loan Amount: $1,000 - $50,000

Check Rates

Pros & Cons

Pros

• Quick loan disbursement

• Secured loans available

• Allows joint applicants

Cons

• High origination fees

• Not a direct lender

• Not available in Washington, D.C.

Why We Chose It

Upgrade is the top provider of personal loans for bad credit.  It allows borrowers to take out as much as $50,000—higher than many other lenders—and offers loan terms as long as 84 months, far longer than other companies provide. 

Additionally, Upgrade allows borrowers to apply with a joint applicant which can help them get a lower rate. And for borrowers who can’t qualify for an unsecured loan, Upgrade also offers secured loans that use your vehicle title as collateral. 

Upgrade has a pre-qualification tool you can use to check your loan options without affecting your credit score. And if you take out a loan, you can take advantage of Upgrade’s Credit Health Tool to monitor your credit, get tips on improving your credit score, and receive fraud alerts. This feature is especially helpful if you have poor credit scores, as you work to better your credit and regain control of your finances. 

While securing a loan with your car or other property can improve your approval odds and help you get a lower rate, you’re at risk of losing that property if you fall behind on your payments.

Qualifications

• You must be the age of majority in your state
• You must have a checking account
• You must be a U.S. citizen or permanent resident
• You must have a credit score of 560 or higher (or have a creditworthy person to serve as a joint applicant)

Upgrade loans aren’t available to residents of Washington, D.C. It prohibits borrowers from using loans for gambling, investing, or college expenses, including tuition or room and board. 

Best for Fast Loans : Rocket Loans

Investopedia's Rating

4.0

• APR Range: 8.42% - 29.99%
• Time To Receive Loan: 0 days
• Loan Amount: $2,000 - $45,000

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Pros & Cons

Pros

• Same-day funding

• Autopay discount

• Flexible uses

Cons

• Origination fees as high as 7.00%

• Limited loan terms

• No co-signed or joint applications

Why We Chose It

If you have an emergency expense, you don’t have time to wait for a lender to disburse the funds; you need them right away. Rocket Loans is our pick as the best lender for fast loans because it may disburse funds as soon as the same day you apply. 

To be eligible for same-day funding, you’ll need to complete the loan process and sign the promissory note by 1 p.m. EST on a business day. Rocket Loans will send the funds to your bank account by ACH. Take note that you may not have access to the funds immediately due to any processing delays at your bank.

Rocket allows you to borrow up to $45,000, and you can have up to 60 months to repay the loan. If you sign up for automatic payments, you can qualify for an interest rate discount to help you save money. 

Rocket Loans can be used for a wide range of purposes, including medical bills, debt consolidation, solar panel installation, or home improvements. 

Qualifications

• You must be at least 18 or the age of majority in your state
• You must have proof of income
• You must live in an eligible state

Rocket Loans does not issue loans to residents of Iowa, Nevada, or West Virginia. 

It doesn’t disclose its minimum credit score or income requirement, but borrowers are evaluated based on their credit history and current debt-to-income ratio. 

Rocket’s personal loans cannot be used to repay student loans. 

Read the Full Rocket Loans Personal Loans Review

Best for Refinancing : Avant

Investopedia's Rating

3.7

• APR Range: 9.95% - 35.95%
• Time To Receive Loan: 1 day
• Loan Amount: $2,000 - $35,000

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Pros & Cons

Pros

• Allows loan refinancing

• Funds disbursed as soon as next business day

• Low credit score requirements

Cons

• No co-signers or joint applications

• No secured options

• Administration fees as high as 4.75%

Why We Chose It

If you have poor credit and take out a personal loan, you may be focused on improving your finances and bettering your credit score. As your score improves, you may be eligible for better rates on the personal loan. But many lenders prohibit you from refinancing an existing loan with them; Avant is one of the few that allows current borrowers to refinance their personal loans to potentially get a lower interest rate. 

Avant offers quick loan disbursements, and it accepts credit scores as low as 550, making it a good choice if your credit score is in the poor to fair range. 

Qualifications

• You must be the age of majority in your state
• You must have at least $1,200 in monthly income
• Your total debt-to-income ratio, inclusive of your housing payments, cannot exceed 70%

Avant’s loans aren’t available in Hawaii, Iowa, New York, Maine or West Virginia.

Read the Full Avant Personal Loans Review

Best for Military Members : Navy Federal Credit Union

Investopedia's Rating

4.0

• APR Range: 7.49% - 18.00%
• Time To Receive Loan: 0 days
• Loan Amount: $250 - $50,000

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Pros & Cons

Pros

• Secured options available

• Longer loan terms

• No origination fees

Cons

• Limited membership availability

• No loan pre-qualification option

Why We Chose It

If you are a military veteran or current servicemember and need a personal loan, Navy Federal Credit Union is hard to beat. Whether you have a small car repair or a major home renovation planned, NFCU could be a good choice: It offers loans as small as $250, but it also allows you to borrow up to $50,000.

Navy Federal offers competitive rates, and its home improvement loans have repayment term options as long as 180 months—by far the longest repayment term on our list. 

Navy Federal Credit Union doesn’t charge application or origination fees, a rarity among lenders that work with borrowers with poor credit. 

Qualifications

• You must be the age of majority in your state
• You must have a verifiable source of income
• You must be a member of Navy Federal Credit Union

To join Navy Federal Credit Union, you must belong to one of the following groups: 

• Active duty service member
• U.S. military veteran
• Family member of a qualifying service member or veteran
• Department of Defense civilian employees and retirees

Read the Full Navy Federal Credit Union Personal Loans Review

Best for Very Low Credit : Upstart

Investopedia's Rating

3.7

• APR Range: 6.50% - 35.99%
• Time To Receive Loan: 0 days
• Loan Amount: $1,000 - $50,000

Check Rates

Pros & Cons

Pros

• Low minimum credit score

• Quick loan disbursement

Cons

• High origination fee

• Not available in all states

• High APRs

Why We Chose It

If you have a credit score that’s in the “poor” range—between 300 and 579—finding a loan can be hard. Finding a loan with an APR that’s not in the high double or triple digits can be even harder. 

That’s where Upstart comes in. It has the lowest minimum credit score of any lender on our list; its minimum required score is 300, which is the lowest possible score you can have. You can borrow up to $50,000, and, if approved, your loan funds can be disbursed in as little as one day. 

Qualifications

• You must have a credit score of 300 or higher
• You must be the age of majority in your state
• Your debt-to-income ratio must not exceed 45% if you live in Connecticut, Maryland, New York, or Vermont; in all other states, your debt-to-income ratio cannot exceed 50%
• You must have fewer than six inquiries on your credit reports within the last 12 months
• You must have a verifiable source of income
• You must not be a resident of either West Virginia or Iowa

Best Loan With Co-Signer : PenFed Credit Union

Investopedia's Rating

4.7

• APR Range: 7.74% - 17.99%
• Time To Receive Loan: 1 day
• Loan Amount: $600 - $50,000

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Pros & Cons

Pros

• Low loan minimum

• Co-borrowers permitted

• Credit union membership is open to the public

• Unemployment and financial hardship programs

Cons

• Maximum loan term is five years

• It can take several days to receive funds

Why We Chose It

With many personal loan companies, there isn’t the option of adding a co-signer or co-borrower to your application; you must meet the lender’s eligibility requirements entirely on your own. For borrowers with less-than-perfect credit or insufficient income, that issue can make it difficult to get a loan. 

PenFed Credit Union offers personal loans ranging from $600 to $50,000. While it has a relatively high credit score requirement compared to some others on this list—its minimum is 650—it allows borrowers to apply with a co-borrower. Adding a creditworthy co-borrower to your application may help you qualify for a loan with better rates than you’d get on your own. 

PenFed doesn’t charge origination fees, and it’s one of the few lenders that offers unemployment and financial hardship payment plans for personal loan borrowers. Although PenFed is a credit union, its membership is open to the general public. 

Qualifications

• You must be a PenFed member (You can join online by opening a savings account and depositing $5.) 
• You must be the age of majority in your state
• You must have a valid Social Security number or individual taxpayer identification number
• You must have a verifiable source of income

Read the Full PenFed Credit Union Personal Loans Review

Best Credit Union : First Tech Federal Credit Union

Investopedia's Rating

4.1

• APR Range: 8.99% - 18.00%
• Time To Receive Loan: 0 days
• Loan Amount: $500 - $50,000

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Pros & Cons

Pros

• No origination fees

• Competitive APRs

• Allows co-signers

Cons

• Must join credit union to get a loan 

• No autopay discounts

Why We Chose It

First Tech Federal Credit Union (FCU) stands out from other lenders due to its competitive interest rates, broad range of loan amounts, and multiple repayment term options. For borrowers with bad credit, it also allows applicants to apply with co-signers to improve their odds of getting a loan. 

First Tech FCU doesn’t charge origination fees or application fees, so your total loan cost may be lower with the credit union than if you used another lender. 

As a credit union, you must be a member of First Tech FCU to get a loan. However, its membership criteria aren’t as restrictive as some, so more people can join and take advantage of its loan products. 

Qualifications

To qualify for a loan from First Tech FCU, you must be a member of the credit union or sign up during the loan application process. To join, you must:

• Have a family or household member that is a member of First Tech FCU
• Work for one of the hundreds of companies on the credit union’s list of partners
• Work or live in Lane County, Oregon
• Belong to the Computer History Museum or the Financial Fitness Association (you can join online; digital memberships start at $15 per year)

You must be the age of majority in your state to be eligible for a loan, and the credit union’s minimum credit score is 600. 

Read the Full First Tech Federal Credit Union Personal Loans Review

Best for Debt Consolidation : Best Egg

Investopedia's Rating

4.1

• APR Range: 8.99% - 35.99%
• Time To Receive Loan: 1 day
• Loan Amount: $2,000 - $50,000

Check Rates

Pros & Cons

Pros

• Direct payments to creditors

• Offers both secured and unsecured loans

• Quick loan disbursement

Cons

• Does not allow co-signers or joint applications

• Charges origination fees

• Not available in all states

Why We Chose It

When you use a personal loan to consolidate high-interest debt, you have to be careful to use the loan for its intended purposes; otherwise, you risk adding to your overall debt. Best Egg makes it easier to pay off your debt by offering direct creditor payments. 

When you are approved for a debt consolidation loan, Best Egg will send the loan funds to pay off your credit cards or medical bills on your behalf. That way, the money never hits your account, so there’s no risk of spending it on other uses. 

Best Egg disburses funds in as little as one day, and it also has a secured loan option for borrowers who don’t qualify for unsecured loans. 

Qualifications

To qualify for a loan from Best Egg, you must meet the following criteria: 

• You must live in an eligible state; Best Egg loans are not available to residents of Iowa, Vermont, West Virginia, or Washington, D.C. 
• You must be the age of majority in your state
• You must have a personal checking account and a physical mailing address

Best Egg doesn’t disclose its income or credit score requirements online, but a spokesperson told us that the minimum recommended score is 600. 

Read the Full Best Egg Personal Loans Review

Best for Secured Loans : Mariner

Investopedia's Rating

2.9

• APR Range: 14.99% - 35.99%
• Time To Receive Loan: 1 day
• Loan Amount: $1,000 - $25,000

Check Rates

Pros & Cons

Pros

• Accepts borrowers that filed bankruptcy

• Offers secured loans

• Allows co-signers

Cons

• Limited loan range available online

• Not available in all states

• Short repayment terms

Why We Chose It

Most personal loans are unsecured, so lenders determine your eligibility for a loan and your interest rates based on your credit and income. For borrowers with less-than-perfect credit, qualifying for an unsecured loan can be difficult, if not outright impossible. 

Mariner Finance could be a useful option because it offers both unsecured and secured loans. Depending on your credit, Mariner Finance may give you the option of taking out a secured loan with your car or other property as collateral. Opting for a secured loan can improve your chances of qualifying, and you may be able to borrow more at better rates than you would with an unsecured loan. 

Mariner Finance also allows borrowers to apply with co-signers, which can make it easier to qualify for a loan.

Although you can apply for a loan online, you can only apply for loans of $1,500 to $15,000 through the lender’s site. For other loan amounts, you must visit a branch in person. 

Qualifications

• Live in a state where Mariner Finance is licensed to issue personal loans
• Be the age of majority in your state
• Meet credit and income requirements (or have a creditworthy co-signer)
• Loans cannot be used for post-secondary education expenses, business expenses, investments, or gambling

For Long Loan Terms : LendingPoint

Investopedia's Rating

3.6

• APR Range: 7.99% - 35.99%
• Time To Receive Loan: 1 day
• Loan Amount: $2,000 - $36,500

Check Rates

Pros & Cons

Pros

• Funds disbursed as soon as next day

• Long loan terms available

Cons

• Not available in all states

• Origination fees as high as 8.00%

• Does not allow co-signers or joint applications

Why We Chose It

Loans for borrowers with bad credit tend to have limited repayment term options; with many, the maximum is 60 months or less. But with Lending Point, you can choose up to 72 months to repay the loan. And while some lenders with longer terms are credit unions with limited memberships, Lending Point is available to the general public. 

With a longer term, you’ll pay more in interest over time, but you’ll get a more affordable monthly payment. When money is tight and you have an emergency expense, being able to spread out the cost over a longer period to get smaller payments can be worth the tradeoff.

Unlike some of the other lenders on our list, Lending Point doesn’t allow co-signers or joint applications, but it has relatively low requirements for income and credit, and it disburses funds as soon as the next day after approval. 

Before applying for a loan, check your credit report to make sure all of the information on it is correct; otherwise, it could affect your eligibility for a loan. Learn how to check your annual credit reports for free.

Qualifications

• You must be the age of majority in your state
• You must live in an eligible state; Lending Point doesn’t offer loans in Nevada or West Virginia
• You must have a valid Social Security number
• You must earn at least $35,000 per year
• You must meet the lender’s credit requirements 

Compare the Best Loans for Bad Credit of January 2023

APR Range

Average Origination Fee

Late Fee

Time To Receive Loan

Loan Amount

Latest Repayment

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4.3

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4.0

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3.7

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4.0

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3.7

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4.7

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4.1

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4.1

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2.9

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3.6

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Final Verdict

Although it can be harder to get a personal loan if you have less-than-perfect credit, there are many lenders that work with borrowers with poor to fair credit scores. Some companies, such as Upstart, offer unsecured loans with lower score requirements, while others like PenFed Credit Union and Mariner Finance allow borrowers to apply with co-signers or offer the option of applying for a secured loan. 

Out of the best personal loans for bad credit, Upgrade stands out as the overall top choice due to its low credit score requirements, repayment term options, and quick loan disbursements. Whether you are looking to consolidate high-interest credit card debt or need to fix your hot water heater, Upgrade can help you get the money you need quickly. 

Guide for Choosing the Best Personal Loans for Bad Credit

What Are Loans for Bad Credit?

Bad credit loans are loans for individuals with low credit scores, usually 579 or less. Although there are many types, the most common are unsecured personal loans. There’s no collateral, you’ll have a fixed interest rate and fixed monthly payments and, like other loans, these will show up on your credit reports and affect your credit score.

Unsecured personal loans for bad credit are just like any other unsecured personal loan, but they typically come with more fees and higher APRs than loans extended to people with better credit.

Do You Qualify for a Personal Loan for Bad Credit? 

To qualify for a personal loan with bad credit, you’ll likely need to meet certain criteria. Some of the most important factors are:

• Your current credit history shows your problems are resolved: Lenders are more willing to overlook a bad credit score if your current credit history shows you’ve fixed the problems. This usually means that you don’t have any currently delinquent debt, any judgments are paid (e.g., tax liens), and bankruptcies are resolved. The goal is to ensure your old issues won’t prohibit you from repaying the new loan.
• You have enough income to comfortably repay the debt: Before you can get a new loan, most lenders will want to make sure you have enough income to repay it. They’ll determine this by looking at your debt-to-income ratio. It’s also a good idea to review your budget to see if you can comfortably make the monthly payment before you proceed.
• Loan funds will help improve your overall financial situation: The other thing that lenders consider is whether the loan may help improve your credit. For example, getting a loan to consolidate existing debt into a single fixed-rate loan with a lower interest rate could improve your credit and help you pay off your balance quicker. Plus, you’ll save money on interest charges.

Comparing Personal Loan Lenders for Bad Credit

When shopping for a personal loan for bad credit, these are the most important things to consider when comparing lenders:

• APR range: Loans come at a cost, which includes the interest rate and any fees, like origination fees. The yearly cost of a loan is reflected in its APR, or annual percentage rate. This means it’s typically more important to evaluate the APR than the interest rate or origination fee when comparing personal loan lenders.
• Loan amounts: Make sure the lender you choose offers a loan amount that’s big or small enough for your needs. Some lenders only offer loans of $5,000 or more, which could be a problem if you only need $500. In contrast, if you have a lot of debt to consolidate, you may need a lender that offers bigger loans.
• Repayment term length: In addition to the APR, the next biggest factor affecting the size of your loan payment is the repayment term. You’ll have the lowest overall borrowing costs if you choose the shortest possible repayment term since you’ll pay less interest over the life of the loan. However, this results in a larger monthly payment. Be sure to select a lender offering a repayment term that works with your budget and needs.
• Ease of application: Many lenders offer online applications that take mere minutes to complete, and let you know if you pre-qualify without hurting your credit.
• Funding speed: If you want to get your money fast, look for a lender with next-day funding (some even offer same-day funding). But take note that funding times aren’t guaranteed, and will depend in part on your own bank.
• Lender’s reputation: Make sure the lender you choose has a good reputation. Check consumer review sites for customer feedback, and look at government sources like the Consumer Financial Protection Bureau’s Consumer Complaint Database. Doing your due diligence will help you choose a reputable lender. 

Applying for a Personal Loan with Bad Credit

Applying for a personal loan with bad credit is similar to what’s required for any other type of loan, and it's a fairly simple process. You'll need to fill out an application, review the loan offers, accept the terms, and receive funding. You might need to set up an online account, depending on the lender you choose.

You might be required to provide documentation such as a driver's license or other government-issued ID or proof of address or financial details such as your income or monthly housing payment. Most lenders will perform a soft credit check, which doesn't affect your credit score, to see if you prequalify for a loan. Once all of that is complete and your application is approved, you'll receive the terms and conditions of the loan.

Make sure you review those carefully so you know exactly what's required, including monthly payments, what the loan can and can't be used for, and your interest rate.

Frequently Asked Questions

Is It Easy to Get a Personal Loan with Bad Credit?

Getting a loan with bad credit tends to be harder than getting a loan with excellent credit, but there are still many lenders offering bad credit loans. Even if you have bad credit, it could be relatively easy to get a personal loan as long as you can afford the payment and you’re not currently delinquent on your existing debt. 

However, if you have active credit issues, like delinquent loans or accounts in collections, you may need to work on getting these problems fixed before you can qualify for a personal loan. There are many places you can go to get help resolving credit issues; credit counseling is a good place to start.

What Are the Types of Loans for Bad Credit?

The most common types of loans and similar products for bad credit include:

• Unsecured loans: Lenders offering unsecured personal loans for bad credit include banks, credit unions, and alternative online lenders. You won’t need to provide any collateral (e.g., your car or home), and the repayment terms are usually two to seven years. 
• Secured loans: There are many kinds of secured loans for bad credit, including mortgages, auto loans, home equity loans, and home equity lines of credit. A secured loan is appropriate if you’ll use the money to buy a car or a house, or if you want to repair or improve your home. 
• Credit cards: Quite a few banks provide credit cards for bad credit, and some offer features to help you rebuild your credit. Although credit cards are useful and secure payment options, and they can help improve your credit if you use them responsibly, the APR is usually very high. Make sure you do your best to repay the balance as quickly as possible to avoid high borrowing costs.
• Cash advances: Many credit card issuers offer cash advances, and banks and alternative online lenders also sometimes offer short-term cash advance loans. But cash advances are more expensive than secured or unsecured personal loans and often carry very high interest rates, so we recommend avoiding them. 
• Payday loans: Although they’re easily available, keep in mind that payday loans come with extremely high interest rates. They’re risky debts that are difficult to repay, and it’s easy to get caught up in a cycle of repeatedly using payday loans. For these reasons, it’s best to avoid payday loans completely and seek another funding option.

What Interest Rate Can I Expect If I Have Bad Credit?

When you have a FICO score under 670, you're considered a subprime borrower. If your FICO score is less than 580, your credit falls into the "Poor" range.

Every lender sets its own criteria (including credit score thresholds) for loan approval and pricing. That makes it difficult to predict precisely what APR you'll be offered for a personal loan if you have bad credit. Interest rates on personal loans can range from roughly 4.99% to 36%. If your credit rating is poor, you’ll probably be offered rates on the higher end of that scale.

Where Can I Get a Personal Loan With Bad Credit?

Getting a personal loan with bad credit can be a challenge. Still, you may find multiple lenders willing to do business with you (albeit at a higher interest rate than if you had good credit). There are two primary loan sources to consider:

• Online personal loans: Online lending networks take your loan application and connect you with lenders who may be willing to approve you for a personal loan. You can often submit one initial form and compare offers from multiple lenders.
• Direct lenders: Direct personal loans come straight from the financial institution where you’re approved. These may include local banks and credit unions, online banks, and online direct lenders. If you have bad credit, it’s generally best to apply only with direct lenders that are willing to do business with credit-challenged borrowers.
• Local lenders. If you use a local bank branch or credit union, you might be able to find a loan officer willing to work with you. Your personal relationship could influence the criteria they use to assess your application, including not factoring in your credit score as heavily. They might also offer you better terms, interest rates, and lower fees even if you have bad credit.
  

Can I Get a Personal Loan with Guaranteed Approval?

While there are no guarantees you'll get approved for a personal loan, especially if you have bad credit, there are a few steps you can take to increase your odds.

First, pick a lender that's friendlier towards borrowers with bad credit (and if you don't know your credit score, you can check it for free). If your score is low, you can work to improve it before getting a loan, but if you need funding immediately, try to find a co-signer who has good credit. A co-signer is someone who promises to pay back the loan if you can't, and it might make you less of a risk in the eyes of the lender.

And finally, consider applying with multiple lenders. The more lenders you try, the greater chance you have of finding one who'll approve you. Just make sure they do a soft rather than a hard credit check as the latter may decrease your credit score even more.

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. To rate providers, we collected hundreds of data points across more than 40 lenders, including interest rates, fees, loan amounts, and repayment terms, to ensure that our reviews help users make informed decisions for their borrowing needs.

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