Best Personal Loan for Bad Credit – Lenders

Writer and editor - Joseph Smith | Updated on 2023-03-05
Disclosure: Our goal is to help you find a lender even if you have a bad credit score. To maintain this site we may receive compensation from the products listed here. See our Advertiser Disclosure. Thanks for understanding.

Where to Get the Best Personal Loan for Bad Credit – Lenders

There are financial institutions designed to lend money to people with bad credit. While each company is unique, they typically have higher-than-average interest rates, simplified applications, and lower requirement standards. The goal is to make getting a personal loan as close to a guarantee as possible.

The qualifications for bad credit personal loan lenders vary based on consumers’ needs and preferences. For instance, there are lenders today that don’t have a minimum credit score for its applicant. While that doesn’t guarantee approval, it can be an opportunity for people with questionable financial history. Some other notable lenders include:

Best Personal Loan for Bad Credit Alternatives

Loans Amount Loan term / Interest Benefits
Personal Loans (Personal loan) Ranges from: $500
To: $35,000
3 Month to 6 Years
APR: 5.99 - 36%
Bad Credit: Accepted
Creditscore: At least 580
Minimum Income: $2000 per month
Type of service ?
RubikLoan (Personal loan) Ranges from: $100
To: $5,000
Up to 1 year
Show loan fees ?
Bad Credit: Accepted
Minimum Income: $1000 per month
Type of service ?
QuickLoanLink (Personal loan) Ranges from: $300
To: $35,000
2 Month to 7 Years
APR: 6.90 - 530%
Bad Credit: Accepted
Creditscore: At least 550
Type of service ?
LifeLoans (Personal loan) Ranges from: $500
To: $40,000
2 Month to 5 Years
APR: 5.99 - 36%
Bad Credit: Accepted
Creditscore: At least 580
Type of service ?

Requirements – Personal Loan for Bad Credit

Each lender has distinct requirements when it comes to approving applicants for a loan. Payday lenders have lax standards, which makes it possible for everyone to get a loan. The opposite is true if someone wants to get a personal loan for their small business.

Companies use several different criteria to evaluate candidates. These factors will indicate how trustworthy applicants are with money and whether or not they will pay back the sum. Of those components, credit history is arguably the most important.

Credit history is a comprehensive overview of people’s finances over the past decade. That includes what types of loans they have taken out, the value of the loans, and any negative marks, such as bankruptcy or delinquency. It provides lenders a snapshot of who applicants are when dealing with loans.

Each component of the credit score is not equal. For instance, payment history makes up 35% of the value. Put another way, people should make a concerted effort to pay their bills on time.

The remaining score includes:

  • 30% for the credit utilization ratio
  • 15% for credit’s age
  • 10% for credit diversity
  • 10% for credit inquiries

The credit utilization ratio is a measurement of a person’s credit card balance over their total credit limit. If someone spends $1,500 in a month with credit cards and has a $10,000 line of credit, their credit utilization ratio would be 15%. As a rule of thumb, lenders like to see rates at 30% or less.

How to Choose the Right Personal Loan

The right personal loan will depend on the needs of the applicant. Each loan has commonalities, though the precise terms and conditions will vary. Some of the crucial things to look for include:

Interest rates

If there were a single factor to determine a loan’s quality, it would be the interest rates. They reflect the actual amount borrowers will have to pay to receive the money. Interest rates range from 5% to 36% and vary based on credit history and lending practices.


Lenders have no shortage of ways to charge borrowers more for their loans. For instance, origination fees, which cover the loan application and disbursement, can range from 1% to 8%. Other forms of fees include processing and late payment fees, as well as early payment penalties.

Loan amount

Personal loans typically go up to $50,000 in value with repayment terms from one to seven years. People that opt for a shorter loan have less interest, but higher monthly payments. Conversely, people who want a long-term option will have higher interest, but lower monthly payments.

Common amounts to borrow

Can I Check My Credit Score?

There are three credit bureaus in the United States: TransUnion, Equifax, and Experian. They collect data about people’s credit scores and provide it to lenders and creditors as a credit report. The purpose is to ensure financial institutions can make discerning loans based on borrower’s credit history.

All consumers are entitled to one free copy of their credit report per bureau per year. People may also see it if they are on welfare or unemployed. Other exceptions include having an inaccurate credit report or being denied credit within the last 60 days.

To gain access to a credit report, people can visit There is a red icon at the bottom that says, “Request your free credit reports,” and requires users to fill out some basic information. Alternatively, people can call toll-free at 1-(877)-322-8228.

Pros and Cons

Pro #1: The Versatility

The limits for personal loans are only in the imagination. Unlike auto loans or mortgages, people can use them for almost any purpose. That can include paying off medical debt, taking a vacation, or starting a business. This versatility also makes personal loans excellent for debt consolidation.

Pro #2: Fast Approval

A lender will approve a loan in a matter of days, if not within 24 hours. That way, borrowers can get the money they need in their bank account sooner rather than later. Mortgages, however, can take more than a month to get lender approval.

Pro #3: Competitive Interest Rates

Interest rates will vary based on credit scores. For instance, people with a score in the 500s can expect to pay about 15%, while someone in the 600s floats around 10%. Personal loans have favorable interest compared to the average credit card and users do not have to put up collateral for approval.

Con #1: Potential Fees

The worst-case scenario for a personal loan is that it traps someone in an endless cycle of debt. One way predatory lenders lure people into this snare is by advertising attractive terms and filling the fine details with extra fees. For instance, some lenders will charge borrowers if they pay off their loan before the term expires.

Con #2: Potential Scams

There are scammers wherever there is an opportunity to make money. Be cautious of shady lending practices when pursuing alone. This can include lenders hassling someone to sign paperwork or guaranteeing approval for a loan. In addition to knowing the signs of a scam, people should also consult the Better Business Bureau to see if past customers have filed complaints about the lender.

Joseph Smith

Joseph Smith
Writer and editor

Joseph Smith is an experienced freelance writer with over 11 years of experience. His area of expertise includes finance, loans and lending. His work has been featured on various large websites including this one.
Read more about us »

Write a comment

All fields are required


Main menu