The best personal loans for bad credit consider more than just your credit scores. They take into account other factors like your employment history and income and will let you prequalify to preview your potential rate without a hard credit inquiry.
But keep in mind that personal loans for bad credit can have very high APRs and fees. Others will require you to put up collateral like a vehicle before loaning you money. Double check your budget to make sure you can afford the additional loan payments before you sign your loan documents.
- Best for auto-secured loans: OneMain Financial personal loans
- Best for co-signers: Mariner Finance personal loans
- Best payday loan alternative: OppLoans personal loans
- Best for building credit: Credit Karma Credit Builder
- Best for quick loans: Possible Finance personal loans
- Best for no-interest loans: Earnin
- Best for buy-now, pay-later loans: Afterpay
- Best for financial resources: NetCredit personal loans
- What is a bad credit loan?
- What are the best personal loans for bad credit?
- What should I look for in a personal loan?
- When is a bad credit loan a good idea?
- What are alternatives to bad credit loans?
- FAQs about personal loans for bad credit
Best for auto-secured loans: OneMain Financial personal loans
Why a OneMain Financial personal loan stands out: Auto-secured loans from OneMain Financial typically have lower interest rates than the company’s unsecured loans. But they come with costs, including origination, late and insufficient funds fees that may increase the amount you have to repay.
Loan amounts range from $1,500 to $30,000, with repayment terms of two to five years.
Pros
- Prequalification to check potential rate without affecting your credit
- No prepayment penalty
Cons
- Charges an origination fee
- Maximum rates are high
- Charges a late payment fee
Read reviews of OneMain Financial to learn more.
Best for co-signers: Mariner Finance personal loans
Why a Mariner Finance personal loan stands out: Mariner Finance allows you to get a personal loan with a co-signer. If your co-signer has a strong credit history, applying for a personal loan with them may help you qualify or receive a lower interest rate.
Loan amounts range from $1,000 to $25,000. (Amounts and terms may differ on Credit Karma.)
Pros
- You may still be considered after bankruptcy
- Offers unsecured and secured personal loans
- Offers prequalification to check your potential rate
Cons
- Not forthcoming about loan rates
- Must apply through a branch for loans less than $1,500 or greater than $14,000
- Loans not available in all states
Read reviews of Mariner Finance to learn more.
Best payday loan alternative: Opploans personal loans
Why an Opploans personal loan stands out: Payday loans have notoriously high rates and short repayment timelines — and they don’t contribute to your credit history. With a personal loan from OppLoans, the company reports your payments to the credit bureaus.
You don’t have to repay what you borrow on your next payday — repayment terms range from nine to 18 months.
OppLoans offers loans ranging from $500 to $5,000.
Pros
- Fast same-day funding possible
- Prequalification to check your potential rate without affecting your credit
- Considers more than your credit history and credit scores
Cons
- High APRs in the triple digits
- Must receive income through direct deposit to qualify
Read reviews of OppLoans to learn more.
Best for building credit: Credit Karma Credit Builder
Why Credit Karma Credit Builder stands out: With Credit Builder, you’ll be able to save and improve your credit score without having a hard credit check. You’re able to choose how much you want to save each pay period and that payment is reported to the credit bureaus which can help build up your payment history and improve your credit score.
Pros
- No fees
- Can skip payments if you’re short on cash
- Can decide how much to save each pay period
Cons
- Can’t access the money until you’ve put $500 into the account
- Must make a payment at least every 3 months to keep the account active
- Must open a line of credit and savings account
Learn more about Credit Karma Credit Builder.
Best for quick loans: Possible Finance personal loans
Why a Possible Finance personal loan stands out: Possible offers the option to borrow up to $500 “instantly” and pay back your loan in four installments. The lender says it usually disburses funds within just minutes (but that it may take up to five days).
Pros
- Can help you build credit over time with on-time payments
- Doesn’t check credit scores to qualify
Cons
- High APRs in the triple digits
- Not available in all states
Read reviews of Possible Finance for more info.
Best for no interest: Earnin
Why Earnin stands out: Earnin is an app that provides interest- and fee-free cash advances of up to $1,000 per pay period, using your next paycheck as collateral. Using Earnin doesn’t affect your credit, but to use the app you need a steady paycheck and direct deposit into a checking account.
Pros
- Low balance alerts
- No credit checks to qualify
- Early paycheck access
Cons
- Charges a fee for faster access to paycheck advances
- Must use direct deposit to qualify
Read our full review of Earnin to learn more.
Best for buy-now, pay-later loans: Afterpay
Why Afterpay stands out: Afterpay is a buy-now, pay-later app that lets you buy items in stores and online and pay for them in four interest-free installments over six weeks.
The app doesn’t charge interest when you select the pay-in-four option, and there are no fees if you pay on time.
Pros
- Soft credit check won’t affect your credit scores
- Finance in-store and online purchases
- Amount you can borrow may increase over time
Cons
- Loan approval isn’t guaranteed at purchase time
- Late fee of up to 25% of the order value
Read our full review of Afterpay to learn more.
Best for financial resources: NetCredit personal loans
Why a NetCredit personal loan stands out: NetCredit provides a variety of resources to help you take control of your personal finances and reach your financial goals. For instance, it partners with SpringFour to connect customers with local resources for items such as food assistance, job search help and guidance to save money on utilities and other bills. It also partners with EverFi to provide financial education.
Pros
- Small personal loans available up to $10,000 depending on where you live
- Potentially fast funding by the next business day
- Flexible repayment term lengths
Cons
- High rates
- Not available in all states
Read reviews of NetCredit to learn more.
What is a bad credit loan?
If you need money for an emergency expense or other use, you can find lenders that offer personal loans for bad credit. Keep in mind that each lender has its own approval criteria, but FICO defines a “poor” credit score as anything below 580 and VantageScore defines it as anything below 600.
And be careful: In some cases, personal loans marketing to people with bad credit can have annual percentage rates, or APRs, that are much higher than the average personal loan, so you’ll want to be selective and compare multiple lenders whenever feasible.
Before you accept a personal loan, it’s important to compare offers for their APRs, fees, loan terms and monthly payments as well as for transparency.
What are the best personal loans for bad credit?
The best personal loan for bad credit depends on your financial situation and the lender’s offer. Secured personal loans may be easier to get with bad credit than unsecured loans because they use collateral, and paycheck advances often don’t require a credit check.
If you’re looking for an unsecured loan, first prequalify with lenders that consider factors besides your credit scores. These lenders often look at employment history and income in addition to credit scores when evaluating applicants. Keep in mind that interest rates may be higher with these lenders because they are designed for people with bad credit, but they likely won’t be as high as payday loans.
Before you take out a personal loan, make sure you can afford the payments. On-time payment history is one of the biggest factors in your credit scores, so building a positive history will help you improve your credit over time.
Here are a few types of loans to consider if you have bad credit:
- Secured loan — If an unsecured loan is out of reach with bad credit, a secured loan may be an option. Some lenders accept savings or your vehicle as collateral. Just be sure to make your payments on time to avoid losing your property.
- Paycheck advance — Getting a paycheck advance through an app like Earnin or Dave may be a good option if you only need a small amount to tide you over until your next paycheck. These companies don’t typically check your credit, but you must meet the eligibility requirements to use the apps.
- Buy now, pay later loans — If you qualify, you can use a BNPL loan to purchase items you need and pay for them over time. Since you’re taking on additional debt, it’s best to use these apps only for must-have purchases.
- Payday loans — Payday loans may be tempting because lenders don’t check your credit history, but they’re expensive. A typical payday loan has an APR of 400%, and the short repayment timeline often traps borrowers in a cycle of debt that’s difficult to escape.
What should I look for in a personal loan?
If you have bad credit, a personal loan may cost you more because lenders may see you as a greater credit risk. Since personal loans for people with bad credit can be more expensive, it’s especially important to compare loan terms to find the best deal. Here are a few terms to pay attention to.
- Annual percentage rate: APR is the total cost you pay each year to borrow the money, including interest and certain fees. A lower APR means the loan will typically cost you less. A personal loan for someone with bad credit will likely have a higher APR.
- Loan repayment terms: Your loan repayment period is the time frame in which you’ll have to repay the loan. Most personal loans require you to make fixed monthly payments for a set period of time. The longer the repayment period, the more interest you’ll likely pay, and the more the loan is likely to cost you.
- Monthly payments: Monthly payments are largely determined by the amount you borrow, your interest rate and your loan term. Make sure the payments are affordable for your budget.
- Loan minimum and maximum: Lenders usually establish a minimum amount and maximum amount they’re willing to lend. A lender may not be a good fit for you if it won’t loan you enough money or if it will require you to borrow more than you want.
- Loan fees: See if the lender charges a loan origination fee to process the loan, a prepayment penalty or a late payment fee.
Also consider the lender’s reputation, especially if you’ll be borrowing from a lender that’s marketing loans for bad credit.
The Better Business Bureau has information about many lenders, and you can check the consumer complaint database maintained by the Consumer Financial Protection Bureau to find out if people have filed complaints against a lender you’re considering.
After you narrow down lenders, compare offers side by side — even a small loan can have very different monthly payments depending on factors like your credit score range and the duration of the loan.
Average monthly payments for a $3,000 unsecured personal loan by term and credit score range
Source: Aggregate TransUnion credit report data from Credit Karma members with active personal loans. Data was pulled on Oct. 22, 2026. Amounts shown are estimated monthly payments in USD.
Longer loan terms typically mean lower estimated monthly payments, but payments for the same loan duration can still vary significantly by credit score range — with “poor” or bad credit often resulting in higher payments.
1–12 months
- Excellent: $273.27
- Good: $291.23
- Average: $331.17
- Poor: $406.04
13–24 months
- Excellent: $151.14
- Good: $166.63
- Average: $208.55
- Poor: $275.31
25–36 months
- Excellent: $104.15
- Good: $112.71
- Average: $125.53
- Poor: $151.24
37–48 months
- Excellent: $92.32
- Good: $99.69
- Average: $109.13
- Poor: $119.44
When is a bad credit loan a good idea?
While qualifying for a personal loan can be challenging and expensive for someone with bad credit, borrowing may make sense in certain situations.
A key question is whether the loan option will not only help you now — but won’t hurt you financially in the long term. This can depend upon the loan terms and the loan amount, as well as what you’ll use the loan for. For example, a personal loan for someone with bad credit could be helpful if …
- You have high-interest credit card debt. You could use a personal loan to pay it off. If the personal loan can help you reduce the amount of interest you’ll pay on the debt, it could save you money in the long run. Plus, it could consolidate multiple payments from different credit card issuers into a simpler single payment to one lender.
- You have unforeseen expenses. A personal loan could be a less expensive way to borrow compared to a credit card or payday loan.
In each case, the cost of borrowing can determine whether a personal loan makes sense. With a high-interest personal loan, consolidating may not be worth it if the loan doesn’t actually provide any savings.
Should you take out a loan to pay off credit card debt?Should you consider a payday loan?
If you need money right away, need a small loan or have been denied a personal loan because of your credit, you may be tempted to try a payday loan.
A payday loan is a short-term loan for a small amount, usually $100 to $500. With payday loans, you typically give the lender a post-dated check or electronic access to automatically withdraw money from your bank account. And the loan is usually due on your next pay date, along with fees.
Depending on the state, payday lenders may charge from $10 to $30 per $100 you borrow.
A payday lender won’t necessarily perform a credit check with the major credit bureaus when you apply for a loan. While that may make it easier to get a payday loan when you have bad credit, the high cost could make it difficult to repay.
High-cost payday lending is prohibited in some states. Other states set limits on how much payday lenders can loan, maximum loan terms and finance charges.
What can you do if you’re denied a personal loan?
If you’re denied a personal loan with bad credit, you have some options.
- Look for borrowing alternatives. If a national bank has denied you, an online lender or credit union may be willing to offer you financing. If you can qualify for a credit card, look for a card with low promotional rates.
- Build your credit. Your scores can go up over time if you pay at least the minimum on your monthly bills on time, establish a positive payment history and pay down your debts so that your credit utilization rate improves. You should also check your credit reports for potential errors since a mistake on your credit reports could affect your scores.
If you’re denied credit because of information in your credit reports, you should receive what’s called an adverse action notice from the lender, giving you an explanation. This can help you understand why you were denied and inspire you to comb through your credit reports and see where your credit stands.
What kind of personal loan can you get with bad credit?
Getting a personal loan when you have bad credit is possible, but you may have fewer options and receive less favorable terms than someone with good credit. So, it’s essential to weigh your choices carefully.
Some options include personal installment loans, cash advances, payday loans and buy-now, pay-later apps. But many factors affect the type of loan you qualify for, including your credit score, income, employment history, outstanding debt, collateral, loan purpose and loan term.
Because different lenders have different eligibility requirements, the only way to know what type of loan you can qualify for is to apply.
How can I get a quick loan?
If you have an emergency expense to cover, a quick loan may put cash in your pocket fast. Keep in mind that the most affordable loans generally go to people with good credit and reliable income.
But bad credit doesn’t mean you’re out of options. Before applying for a loan, consider these steps …
- Set your budget — Understand what you can realistically afford to repay every month, since falling behind on payments can hurt your credit.
- Compare rates and terms — A lower interest rate means a cheaper total cost of your loan. Get prequalified with a few lenders to gauge your potential rate — and remember the rate could still change once you apply officially.
- Review fees — Getting your funds faster sometimes means paying an extra fee, and other lenders also charge an origination fee that can eat into your loan funds. Compare potential fees among all your options before you sign a loan contract.
- Make a repayment plan — Automatic payments reduce your risk of missing one. Once things feel more stable, put money aside for an emergency fund for the future.
What are alternatives to bad credit loans?
- Seek out a payment plan: If you need help paying medical bills, you might be able to arrange a payment plan with your healthcare provider, negotiate the owed amount or qualify for a financial assistance program. If you’ve fallen behind on payments for your credit card, you may be able to negotiate debt with your credit card company, too.
- Early paycheck access: If you need a little bit of cash before your next payday, you may want to consider signing up for a bank account that offers early paycheck access. Another option may be exploring an option like Earnin that lets you advance part of your paycheck before payday.
- Payday alternative loans: A payday alternative loan is a short-term small loan offered by some federal credit unions. These usually have much lower fees and APRs compared to traditional payday loans. But you may have to be a credit union member for at least a month before you can apply for a PAL.
Our methodology: How we pick the best personal loans
Credit Karma’s editors evaluate the best personal loans by reviewing key features of dozens of popular lenders. Those features fall into three important categories:
- Affordability: We start by checking if a lender’s rates are competitive: are they higher than average or are they lower than many competitors? From there, we analyze if fees — particularly an origination fee — may make your loan more unaffordable. Last, we’ll check if the lender offers rate discounts for items such as automatic payments that may reduce your rate.
- Customer-friendly features: Taking out a personal loan is a big financial commitment, so we prioritize lenders that make things easier for you. For instance, do they offer a wide range of loan amounts for people with different borrowing needs? Do they offer at least several loan terms to give you more flexibility with your monthly payment? And, crucially, can they fund your loan quickly? A lender will also get bonus points for offering direct payments for debt consolidation or other customer-friendly features.
- Transparency: We believe personal loan terms should be easy to find and decipher. Prequalification, which lets you check what rate you may qualify for without a hard credit inquiry, is particularly important. We also check to see if a lender has been recently penalized by regulators.
Estimate personal loan costs
To better understand the total cost of any personal loans you’re considering, use an online calculator like Credit Karma’s simple loan calculator. A loan calculator can help you estimate your monthly payment and how much you’d pay in interest versus principal over the length of the loan.
FAQs about personal loans for bad credit
Generally, it’s easier for people with higher credit scores to qualify for a loan. But you may be able to get a personal loan even if you have bad credit. Applying with a co-signer who has good credit or a lender that markets to people with bad credit may improve your chances of qualifying.
A personal loan can temporarily lower your credit scores because of a hard credit inquiry. If you’ve applied for and taken out multiple other loans or credit in a short period of time, adding another loan can negatively impact your scores as well. Personal loans can also help improve your credit scores in the long run if you consistently make your payments on time.
A paycheck advance app can help you borrow a small amount of money against your paycheck with limited fees and no credit check. Payday loans may be tempting because they don’t typically have credit checks either, but the interest rates can be in the triple digits making it much harder to pay off on time.
Lenders that consider factors outside of just your credit scores may be a good idea for people with bad credit. These lenders tend to look at employment history and income in addition to credit scores when evaluating applicants. Interest rates may be higher than other loans, but they likely won’t be as high as payday loans. Secured personal loans or paycheck advance apps may also be easier to be approved for with bad credit.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.