7 Best Personal Loans for Bad Credit

William Lipovsky headshot William Lipovsky
Updated Dec 5, 2023
Bad credit personal loan application and poor credit report

Several lending options are available for bad credit that don’t require you to put up collateral or take out a short-term, high-interest payday loan.

Below, we summarize the best options for unsecured personal loans with bad credit. Our list includes peer-to-peer lenders, banks, and credit unions, and we have information about application requirements, interest rates, fees, and more.

Note that most lenders require borrowers to have at least fair credit to be approved for a loan, which ranges from around about 580 to 669.[1]

You can typically check the rates you qualify for on lenders’ websites without harming your credit score, and you’ll usually receive a loan decision within minutes of applying.

Fund disbursement ranges anywhere from the same day to within several days of approval. Additionally, none of the lenders listed below have fees or penalties for early prepayment of the loan.

What We Recommend

For the best peer-to-peer lender of unsecured personal loans, we recommend PersonalLoans.com due to its range of loan amounts offered, minimum required credit score of around 600, competitive rates, and quick loan disbursement.

Avant offers similar terms and loan amounts to borrowers with scores ranging from around 600 to 700.

If you’d prefer to use a bank or credit union, the best option for unsecured personal loans is Navy Federal Credit Union (NFCU). It offers its competitive features like low interest rates, variable loan terms, and high caps on loan amounts.

However, since NFCU has restricted membership,[2] you may want to consider a personal loan from Wells Fargo instead.

Comparison Table

See the table below for a comparison of the personal loans from each lender, then select any lender’s name or scroll for more information.

Note that you can also sort the table using the arrows at the top of any column.

Lender Loan Amount APR Range Credit Score Requirement Origination Fee Fund Disbursement
PersonalLoans.com$1,000 to $35,000 6% to 36% 600 Specific to individual lender As soon as next business day
Avant$2,000 to $35,000 10% to 36% 600 Administration fee specific to loan As soon as next business day
Prosper$2,000 to $40,000 8% to 36% 640 2% to 5% As soon as 3 days
Lending Club$1,000 to $40,000 10% to 36% No specific minimum 2% to 6% As soon as 4 days
Peerform$4,000 to $25,000 6% to 26% 600 1% to 5% Within 3 days of approval
Navy Federal Credit Union$250 to $50,000 (max $150,000 for two co-applicants) 7% to 18% No specific minimum None Same day
Wells Fargo$3,000 to $100,000 5% to 25% No specific minimum None Within 1 business day

The List

Peer-to-Peer and Direct Lenders

1. PersonalLoans.com

Note: PersonalLoans.com is a loan network that connects borrowers who have challenged credit to different lenders, which have their own specific terms. It is not a direct lender.

  • Loan amount: $1,000 to $35,000[3]
  • Loan term: 90 days to 72 months (borrowers can pay either once or twice per month)[4]
  • Application requirements:
    • Must be at least 18 years old[5]
    • Must be a U.S. citizen or permanent resident[5]
    • Provide personal information, including age, ID, residency status, income, and bank account[6]
    • Must usually have a monthly income of at least $2,000[6]
  • Minimum credit score: Around 600[4]
  • Approval time: The approval process generally takes minutes, and you can get the funds as soon as the next business day.[3]
  • APR: Around 6% to 36%[6]
  • Fees: Origination fee charged by lender (specific to the individual lender); no penalty for early repayment[7]
  • Apply

2. Avant

  • Loan amount: $2,000 to $35,000[8]
  • Loan term: 24 to 60 months[9]
  • Application requirements:
    • Income and identity verification[8]
    • Contact information for the borrower[8]
  • Minimum credit score: Between 600 to 700[10]
  • Approval time: If approved, funds can be available as soon as the next business day.[10]
  • APR: Ranges from around 10% to 36%[8]
  • Fees: There is no penalty for early repayment.[11] Other fees vary by loan terms and state laws; may include:
    • One-time, non-refundable administration fee[12]
    • Dishonored payment fees[12]
    • Late payment fees[12]
  • Apply

3. Prosper

Note: Prosper is a loan network that connects borrowers who have challenged credit to different lenders, which have their own specific terms. It is not a direct lender.

  • Loan amount: $2,000 to $40,000[13]
  • Loan term: 36 to 60 months[14]
  • Application requirements: Prosper can retrieve most of the necessary information by checking your credit history, including:
    • Documents to prove your identity, address, and sources of income, such as pay stubs or 1099 forms[15]
    • Place of work[15]
  • Minimum credit score: About 640[15]
  • Approval time: You receive money in as little as three days once you agree to loan terms.[16]
  • APR: Around 8% to 36%[15]
  • Fees:
    • Origination fee from 2% to 5% of the loan amount[17]
    • Late and failed payment fees, which vary by loan[17]
  • Apply

4. LendingClub

Note: LendingClub is a loan network that connects borrowers who have challenged credit to different lenders, which have their own specific terms. It is not a direct lender.

  • Loan amount: $1,000 to $40,000[18]
  • Loan term: 36 to 60 months[19]
  • Application requirements:
    • Must be a U.S. citizen or permanent resident and at least 18 years old[20]
    • Must have a verifiable bank account[20]
    • Must have documents to verify income, such as pay stubs, 1099 forms, or documents proving other forms of income[20]
    • Must have documents to verify your identity and address, such as government-issued photo ID, rental contract or mortgage statements, and utility bills[21]
  • Minimum credit score: None specified; loan decisions are based on each applicant’s ability to repay.[22]
  • Approval time: Borrowers receive funds in as little as four days.[23]
  • APR: Around 10% to 36%;[24] applicants who qualify for the lowest rates generally have a high credit score, a low debt-to-income ratio, and a history of successful credit lines.[20]
  • Fees:
    • One-time origination fee between 2% to 6% charged when your loan is funded[17]
    • Late fees of 5% of the unpaid payment or $15, whichever is greater[17]
  • Apply

5. Peerform

Note: Peerform is a loan network that connects borrowers who have challenged credit to different lenders, which have their own specific terms. It is not a direct lender.

  • Loan amount: $4,000 to $25,000[25]
  • Loan term: 36 to 48 months[26]
  • Application requirements: Must provide identity and income verification[27]
  • APR: Ranges from 6% to 26%;[25] depends on the loan grade that Peerform gives the loan, ranging from AAA (best grade) to DDD (lowest grade)[28].
  • Fees:
    • Origination fee of 1% to 5%[25]
    • Unsuccessful payment fee of around $15 for each unsuccessful automatic debit payment attempt (varies by state law)[28]
    • Late payment fee of 5% of the unpaid installment or $15, whichever is greater after a payment is more than 15 days late; only one late fee is charged for each late payment.[28]
    • Check processing fee of $15 per payment, if the borrower chooses to make monthly payments via check[28]
  • Apply

Banks and Credit Unions

6. Wells Fargo

  • Loan amount: $3,000 to $100,000[29]
  • Loan term: 12 to 36 months for loans under $5,000; 12 to 84 months for loans of $5,000 or more[30]
  • Application requirements:
    • Personal contact info[31]
    • Employment and income verification[31]
    • Reason for loan[31]
  • Minimum credit score: No minimum credit score or range; Wells Fargo considers an applicant’s complete credit profile, including debt to income ratio.[32]
  • Approval time: Borrowers usually receive a decision in as little as a few minutes, and the funds are typically disbursed within one business day.[30]
  • APR: Ranges from around 5% to 25%;[33] if you’re already a Wells Fargo customer, you can get a discount of 0.25% to 0.50% off the loan interest rate.[30]
  • Fees: No origination or early repayment fees; late fees may apply[30]
  • Apply

7. Navy Federal Credit Union

  • Loan amount: $250 to $50,000 for one applicant and up to $150,000 for two co-applicants;[34] minimum of $25,000 for home improvement loans[34]
  • Loan term: 36 to 60 months; 180 months for home improvement loans[34]
  • Application requirements:
    • Income and identity verification[35]
    • Borrower contact information[35]
    • Must qualify for a Navy Federal account[2]
  • Minimum credit score: None; NFCU considers the applicant’s credit history, which it pulls from Equifax.[36]
  • APR: Around 7% to 18%, depending on creditworthiness and term length of the loan[34]
  • Fees: No origination or early repayment fees; $29 late fee[37]
  • Apply
  1. https://www.experian.com/blogs/ask-experian/what-is-a-fair-credit-score/[↩]
  2. https://www.navyfederal.org/membership/become-a-member/[↩][↩]
  3. https://personalloans.com/faq[↩][↩]
  4. https://personalloans.com/rates[↩][↩]
  5. PersonalLoans.com customer service (800) 772-2274[↩][↩]
  6. https://personalloans.com/how-it-works[↩][↩][↩]
  7. https://personalloans.com/[↩]
  8. https://www.avant.com/[↩][↩][↩][↩]
  9. https://www.avant.com/personal-loans/[↩]
  10. https://support.avant.com/article/14-avant-credit-quality[↩][↩]
  11. https://support.avant.com/article/244-can-i-make-additional-payments[↩]
  12. https://support.avant.com/article/17-fees[↩][↩][↩]
  13. https://www.prosper.com[↩]
  14. https://www.prosper.com/[↩]
  15. Prosper customer service (866) 213-6663[↩][↩][↩][↩]
  16. https://www.prosper.com/loans/[↩]
  17. https://www.prosper.com/loans/rates-and-fees/?refac=CANMB&refmc=6YRANV&refd=prosperblog[↩][↩][↩][↩]
  18. https://help.lendingclub.com/hc/en-us/articles/213706198-Amounts-for-personal-loans[↩]
  19. https://www.lendingclub.com/investing/investor-education/what-are-the-terms-of-the-loans[↩]
  20. https://help.lendingclub.com/hc/en-us/articles/213706208-Qualifying-for-a-personal-loan[↩][↩][↩][↩]
  21. https://help.lendingclub.com/hc/en-us/articles/214502877-Documents-you-may-be-asked-to-submit[↩]
  22. LendingClub customer service (888) 596-3157[↩]
  23. https://www.lendingclub.com/loans/personal-loans[↩]
  24. https://www.lendingclub.com/loans/personal-loans/rates-fees[↩]
  25. https://www.peerform.com/[↩][↩][↩]
  26. Peerform customer service (800) 338-8049[↩]
  27. Peerform customer service (800) 338-8049)
  28. Minimum credit score: No set minimum, but Peerform prefers applicants who have a credit score of at least 600((Peerform customer service (800) 338-8049)
  29. Approval time: Funds disbursed to applicants within three days of approval((https://www.peerform.com/[↩]
  30. https://www.peerform.com/get-a-loan/rate-and-fees/[↩][↩][↩][↩]
  31. https://www.wellsfargo.com/personal-credit/products/[↩]
  32. https://www.wellsfargo.com/help/loans-and-lines/personal-credit-faqs/[↩][↩][↩][↩]
  33. https://www.wellsfargo.com/personal-credit/checklist/[↩][↩][↩]
  34. Wells Fargo customer service (877) 526-6332[↩]
  35. https://www.wellsfargo.com/personal-credit/rates/[↩]
  36. https://www.navyfederal.org/loans-cards/personal-loans/#[↩][↩][↩][↩]
  37. NFCU customer service (888) 842-6328[↩][↩]
  38. NFCU customer service (888) 842-6328)
  39. Approval time: The loan application process takes about 15 minutes, and a loan decision takes a maximum of 24 hours. A check can be made available to the borrower on the same day for pickup at a local branch.((NFCU customer service (888) 842-6328[↩]
  40. https://www.navyfederal.org/membership/fees-and-charges.php#equity-accord-3[↩]

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