Best Bad Credit Loans for 2023

Affiliate Disclosure
Close
Editor's pick
Upstart

Upstart

0 Review(s)

Call Now! (855) 438-8778

Editor's Take

Upstart offers fast loans to qualified applicants. Most borrowers receive their funds the same day, but educational loans may take up to three days. It only requires a credit score of 620, which makes it one of the more forgiving lenders on the market today. You just can’t have had a recent bankruptcy, or have had six credit inquiries on your report in the past six months. You can apply entirely online. When you do, you’ll be asked about your credit score, how much you want to borrow, your level of question, and employment status.

Qualifications

  • Loan Amount
    $1,000 – $50,000
  • Credit Score Minimum
    620
  • Origination Fee
    0%-8%

Details

  • $12,000 minimum income
  • 8.89%-35.99% APR range
  • 3-5 year repayment terms

User Reviews

Company reviews by real customers like you

Load user reviews
Prosper

Prosper

0 Review(s)

Call Now! (866) 615-6319

Editor's Take

Prosper offers personal loans that can be used for anything. Most people who receive a loan through Prosper have a good credit score and make around $89,000 a year. All loans that go through Prosper are unsecured, meaning you don’t have to put your car or house on the line to borrow money.

Qualifications

  • Loan Amount
    $2,000 – $40,000
  • Credit Score Minimum
    640-710
  • Origination Fee
    2.4%-5%

Details

  • 6.95%-35.99% APR range
  • 3-5 year repayment terms
  • 50% maximum DTI

User Reviews

Company reviews by real customers like you

Load user reviews
Avant

Avant

0 Review(s)

Call Now! (800) 712-5407

Editor's Take

Catering to borrowers with low credit scores, Avant offers low minimum credit score requirements, but generous loan amounts. As long as you make at least $20,000 a year and have a credit score of at least 580, you may qualify. Loan amounts are often as high as $35,000.

Qualifications

  • Loan Amount
    $2,000 – $35,000
  • Credit Score Minimum
    580
  • Origination Fee
    4.75%

Details

  • $20,000 minimum income
  • 2-5 year repayment terms
  • $0 prepayment fee

User Reviews

Company reviews by real customers like you

Load user reviews

When to Get a Bad Credit Loan

While you’re on the path to rebuilding your credit, you still may come across a time where you need financing through a bad credit loan. Luckily, there are reputable lenders out there who are willing to extend you a loan. You will be required pay higher interest rates to compensate for the perceived risk that comes with lending to someone with below average credit.

Because your monthly payments can end up quite expensive, it’s important to know when it’s right to get a bad credit loan and when it’s worth waiting. This is an extremely personal decision. In many cases, however, you can figure this out by asking yourself a couple of key questions.

Is it a true emergency?

Things like a beach vacation or kitchen renovation are probably not an emergency and shouldn’t be funded with a bad credit loan. But if your car is broken down and you don’t have any other way of getting to work, then you might consider applying for financing.

Sometimes there are murky gray areas and you need to be realistic with yourself in these situations. Say your refrigerator breaks – that’s pretty important to replace. But do you finance a brand new $1,800 stainless steel model with a high-interest loan or do you hop on Craigslist to buy something used but in good working condition?

Be real with yourself in determining how much you need and for what purposes.

What are your other options?

Once you’ve determined that you do need an infusion of cash, think about your other options. If you’re able to pay off a small amount with your next paycheck, you may consider charging your emergency purchase, if you can.

Hit with a medical emergency and the bills are coming in? Try negotiating a payment plan with your healthcare provider. These plans are oftentimes interest-free.

Get creative and at least compare your different options. If a bad credit loan is the best one, you can feel good knowing that you made a good plan for where you are today.

Frequently Asked Questions

What can you use a bad credit loan for?

A bad credit loan is considered a type of personal loan, which means there are few restrictions on what the funds can be used for. Check your loan agreement for details, but in most cases, there are few restrictions on how you can use your loan.

How fast can you receive your loan funds?

This depends on your lender. If you choose an online lender, you can often receive your funds within a few business days or less. When you are in a time crunch, make sure you pay close attention to your role in the loan process by signing and returning documents as soon as possible.

What’s the difference between a secured and an unsecured loan?

A secured loan is one in which you use some type of asset as collateral in case you default on the loan. An unsecured loan (or signature loan) doesn’t require any kind of collateral. A secured loan is the riskier of the two, so be sure to clarify with your lender before accepting a loan offer.

Does a bad credit loan help rebuild your credit?

If your lender reports to one or more credit bureaus, a bad credit loan could help rebuild your credit, as long as you make your payments on time each month. If you don’t, you’ll end up damaging your credit score even more. You can use this as a qualification when choosing your lender so don’t be afraid to call and ask whether or not they report to credit bureaus.

Find the Best Bad Credit Loans

Apply today to see if you qualify!

Call Now! (855) 438-8778

with our top pick Upstart

by Lauren Ward

Personal Finance Writer

Lauren Ward is a personal finance writer with nearly ten years of experience covering topics like loans, credit, and real estate. She lives in Virginia with her husband and three children.

You are the one rating companies!

If you have experience with a bad credit loan, we’d love to hear from you. Leave a review of your lender to contribute to their overall rating. Your feedback can help other loan applicants make the best choice possible when it comes to applying for a bad credit loan.

Our score:

4/5 - 1 Review(s) -

We’re happy to be a part of your journey to find the best financing products no matter what your credit score may be. And we’d love for you to give us a score on how well we’re doing providing you helpful content that gives you in-depth information on life’s biggest decisions. Drop us a review to let us know what you think because your opinion matters!