Bad Credit Loans: 4 Online Options for 2020

While bad credit can make it harder to obtain affordable financing, that doesn’t mean you can’t qualify for a bad credit loan. You just need to look for lenders who offer financial products for people in your credit range.

We ranked and rated lenders according to the weighted averages of five data categories to find you the best personal loans for bad credit. Check them out below.

In this guide:

• 4 Best Bad Credit Personal Loan Companies
• Should You Take Out a Personal Loan if You Have Bad Credit?
• What About Payday Loans?
• Resources to Help You Improve Your Credit Score

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Find a Bad Credit Personal Loan

• Get up to $4,000 by tomorrow
• Easy online application, quick decisions, and funds as soon as the next day
• Rates ranging from 99% to 199% APR

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• Fixed rate personal loans between $2,000 to $35,000
• Checking your loan options won’t impact your credit score
• Rates from 9.95% to 35.99% APR

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• Check your eligibility for up to $10,000
• See your personalized loan options and choose the terms that work for you
• Rates from 34% to 155% APR

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4 Best Bad Credit Personal Loan Companies

The following are brief reviews of personal loan companies that offer funding to someone who has fair or bad credit. You have options for short-term and long-term repayment.

1. OneMain Financial
2. LoanMe
3. Stilt
4. Oportun

1) OneMain Financial

Editorial Rating: 5/5

Overview

OneMain Financial offers personal loans to a range of borrowers, including those who have poor credit and therefore may not qualify for a loan with another lender. Customers can start the loan application online to receive personalized rates and terms, a process that results in a soft credit check that won’t damage your score. However, to complete the process, approved applicants must visit their local branch office. You may be offered a secured or unsecured loan.

OneMain Financial uses a variety of information to determine eligibility, including income and credit history; however, they do not have a minimum credit score requirement.

Rates, Terms, & Fees

• Loan Amounts: $1,500 – $30,000
• Loan Terms: 24, 36, 48, or 60 months
• APR Range: 16.05% – 35.99%
• Origination Fee: Varies by state
• Early Repayment Fee: None
• Minimum Credit Score: None

The Verdict

Because OneMain Financial looks at a borrower’s entire financial history, not just a credit score, borrowers with bad credit may still qualify for a personal loan. Though the rates aren’t as competitive for prime borrowers, the 35.99% rate max is still lower than those associated with some subprime lenders.

2) LoanMe

Editorial Rating: 4.88/5

Overview

LoanMe offers subprime lending options to borrowers in Arizona, California, Idaho, Missouri, New Mexico, South California, and Utah. Customers can pre-qualify online through a three-step application process, which will not impact their credit score.

LoanMe does not provide a minimum score requirement for their subprime lending products. Instead bases their decisions on a variety of factors, including income, payment history, and credit score. Funds can be available in as little as 3 to 4 hours, and borrowers can use them for any purpose.

Applicants with questions can contact the lender via phone or text with a representative to inquire about products or begin the application process.

Rates, Terms, & Fees

• Loan Amounts: $2,600 – $100,000
• Loan Terms: Not disclosed
• APR Range: Not disclosed
• Origination Fee: Not disclosed
• Early Repayment Fee: None
• Minimum Credit Score: None

The Verdict

For a subprime lender, LoanMe bad credit personal loans come with hefty interest rates and fees, the likes of which can add thousands of additional dollars to the original loan amount. Further, loan amounts are limited to those offered by the lender, and in some states, subprime borrowers may only qualify for $2,600.

If you were unable to obtain a loan elsewhere, LoanMe may be a good option, especially since they don’t have a minimum credit score requirement. However, you may want to shop around first.

3) Stilt

Editorial Rating: 4.43/5

Overview

Stilt offers personal loans specifically designed for immigrants and international students, specifically those with F-1, OPT, H-1B, TN, DACA status. Applicants do not need an SSN and decisions are based on the applicant’s education, work experience, income, and overall financial behavior.

The online application is easy to complete, and approval often comes by the next business day, though some borrowers may need to participate in a brief verification call. After signing the promissory note, borrowers can expect funds within two to three business days.

Rates, Terms, & Fees

• Loan Amounts: $1,000 – $35,000
• Loan Terms: 6 – 36 months
• Fixed APR Range: 7.99% – 25.00%
• Origination Fee: Not disclosed
• Early Repayment Fee: Not disclosed
• Minimum Credit Score: None

The Verdict

If you’re just beginning your life in the United States, Stilt can offer you a path to an affordable loan. Because decisions are based on factors like your education and your existing or potential income, not simply a credit score, you may still be eligible for this loan even though you don’t have a SSN or you haven’t had the opportunity to build a U.S. credit report.

4) Oportun

Editorial Rating: 4.08/5

Overview

Oportun offers personal loans to borrowers in AZ, CA, FL, IL, ID, MO, NJ, NM, NV, TX, UT, and WI. As a lender, Oportun prides itself on offering affordable financing options for borrowers with poor or no credit, and their primary goal is to help borrowers build credit while making fixed bi-weekly payments on their loan. And with terms starting at just 6 months, this may be a good option for those seeking a short-term loan.

Customers can apply for a loan online, by phone, or by visiting their local branch. Funds are typically available the same day of approval. 

Rates, Terms, & Fees

• Loan Amounts: $300 – $9,000
• Loan Terms: 6 – 46 months
• APR Range: Not disclosed
• Origination Fee: Varies by state
• Early Repayment Fee: None
• Minimum Credit Score: None

The Verdict

Oportun personal loans are specifically designed for borrowers who have bad credit or non-existent credit. Interest rates are quite high when compared to other lenders, and loan limits and terms lack the flexibility of other lending products. However, this bad credit loan may be a good option for those who are not eligible for other lending products, prefer manageable bi-weekly payments, and want to build their credit.

>> Read more: How to Get a Loan With No Credit Check

How We Chose the Best Bad Credit Personal Loans

To find the best bad credit personal loans, our Editorial Team analyzed each product by BBB rating (10%), fixed rate APR (20%), loan amounts (10%), term lengths (15%), deposit time (15%), origination fee (15%), initial soft-credit pull (10%), and customer support (5%).

Learn more about our ratings and methodology here.

Should You Take Out a Personal Loan if You Have Bad Credit?

If you have bad credit and are considering a personal loan, the most important thing you can do is to consider why you need the loan. If you’re paying off high-interest debt or have a pressing emergency, a personal loan can be a reasonable financing option.

However, because personal loans for bad credit often come with extremely high interest rates and fees, the total cost of the loan rarely merits unnecessary purchases. As such, you may want to consider other options before you use a personal loan to purchase a car, remodel your home, or go on vacation.

If you have time, your best bet is to work on improving your credit score before you apply for a personal loan.

If, however, you do need to take out a personal loan with bad credit, then it’s imperative that you make sure your budget can accommodate repayment obligations for the life of the loan.

By making regular payments, you may find that a personal loan can help build your credit; however, failure to make timely payments can have an adverse effect, leaving your score even lower than it was.

>> Read more: Where to Find Small Personal Loans

What About Payday Loans?

Though a payday loan may be an attractive option for those with bad credit, they typically represent one of the most dangerous lending products on the market today. Payday lenders offer immediate cash in exchange for automatic payment (via postdated check or auto deduction agreement). Repayment, however, includes the loan amount as well as a significant amount of interest, often in the realm of 400%.

Unforunately, these loans often make it even harder to get out of debt and can be detrimental to your financial future.

>> Read More: Alternatives to Get Out of the Payday Loan Cycle 

Resources to Help You Improve Your Credit Score

If you have bad credit, it’s not the end of the world. You can still qualify for loans from some lenders, but you might decide to wait and improve your credit if you are rejected for a loan or want better interest rates. There are a lot of ways that you can improve your credit, but not all of them are quick fixes. The best way to improve your credit is to borrow responsibly and repay your debt over time.

Here are some helpful articles to get started on raising your credit score:

• 8 ways to rebuild credit
• How to build good credit
• How to check your credit score for free

Bottom Line: Finding the Right Bad Credit Loan

Though bad credit can make it harder for you to secure a personal loan, it’s not impossible. There are several lenders who specialize in subprime lending and are eager to work with consumers who have poor or non-existent credit. However, keep in mind that these bad credit loans typically come with high interest rates and limited terms. As such, it’s best to consider your reason for the loan, and if possible, work on improving your credit score before apply.

If the lenders above don’t fit your needs, you can check out one of the bad credit personal loan companies listed below:

• Balance Credit Review
• CashCall Review
• Elastic Loans Review
• MoneyKey Review
• OppLoans Review
• Rise Credit Review
• Backed Review
• Jora Credit Review
• Lift Review
• LendUp Review