By Pavel Stich / COPYWRITER & SEO SPECIALIST
Last Updated: December 2025
If you have a credit score below 630, the financial landscape can feel like a minefield. You need capital—perhaps for an emergency, debt consolidation, or a major purchase—but traditional banks often slam the door shut. You are not alone. In late 2025, millions of Americans are navigating the economy with “subprime” credit scores, yet the demand for liquidity has never been higher.
Applying does NOT affect your credit score!
Here is the truth that generic financial sites won’t tell you: Your credit score is a snapshot, not a life sentence.
While the era of “cheap money” is behind us, the lending market has evolved. Fintech companies and specialized lenders now use artificial intelligence and alternative data to look beyond your FICO score. They are looking at your cash flow, your employment history, and your potential.
In this definitive guide, we have analyzed over 40 lenders to identify the 7 Best Personal Loans for Bad Credit available right now. We prioritized high approval odds, transparency, speed of funding, and reputation.
Important Note: If you are looking for a broader overview of the market, check out our comprehensive Personal Loans Guide: Best Rates & Lenders for 2025. However, if your score is under 640 and you need specific solutions, you are in the right place.
The Top 7 Personal Loans for Bad Credit: At a Glance
Before we dive into the deep analysis, here is a quick summary of the winners for December 2025.
| Lender | Best For… | Est. APR Range | Min. Credit Score | Funding Speed |
| 1. Upstart | Overall Best / Thin Credit | 7.80% – 35.99% | None (AI Model) | 1 Business Day |
| 2. Avant | Fast Funding | 9.95% – 35.95% | ~580 | As soon as next day |
| 3. Upgrade | Debt Consolidation | 8.49% – 35.99% | ~580 | 1-2 Days |
| 4. OneMain | Low Scores / Secured | 18.00% – 35.99% | None (Collateral based) | Same Day (Often) |
| 5. LendingPoint | “Fair” Credit Rebuilders | 7.99% – 35.99% | ~600 | 1 Business Day |
| 6. Universal Credit | High Approval Odds | 11.69% – 35.99% | ~560 | 1 Day |
| 7. Best Egg | Established History | 8.99% – 35.99% | ~600 | 1-3 Days |
1. Upstart: The AI-Driven Revolution
Best For: Borrowers with short credit histories or “thin files.”
Upstart continues to dominate the fintech space in 2025 by doing what traditional banks refuse to do: ignoring the FICO score as the sole source of truth. Instead of looking only at your past mistakes, Upstart utilizes artificial intelligence to analyze over 1,000 data points, including your education and job history.
Why We Chose It
If you have a low score because you are young or haven’t used credit in years, Upstart offers significantly higher approval odds than competitors. In fact, Upstart claims their model approves 44% more applicants than traditional lending models.
- Loan Amounts: $1,000 – $50,000
- Pros: High approval rates for thin credit; instant automated checking; no prepayment penalty.
- Cons: Origination fees can be high (up to 12%) for high-risk borrowers.
The Verdict
Upstart is the sophisticated choice for the modern borrower who looks good on paper (income/job) but bad in the credit bureaus.
2. Avant: The Speed Specialist
Best For: Borrowers who need money now.
When an emergency strikes—a broken transmission or a medical bill—you rarely have the luxury of waiting a week for a decision. Avant positions itself squarely in the “near-prime” to “subprime” market. They understand that a score of 580 doesn’t mean you don’t intend to pay.
Why We Chose It
Avant’s mobile app is highly rated for its transparency. Furthermore, their pre-qualification process is robust, allowing you to check your rate without hurting your credit score.
- Loan Amounts: $2,000 – $35,000
- Pros: Very fast funding (often next business day); accepts lower credit scores than most bank lenders.
- Cons: APRs can be on the higher end; administration fees apply.
The Verdict
If speed is your primary metric and your credit score is hovering around 580-600, Avant is a reliable, established option.
3. Upgrade: The Debt Consolidation Powerhouse
Best For: Turning bad debt into good habits.
Upgrade is unique because it offers a “Credit Health” focus. They are heavily focused on debt consolidation. If you take out a loan to pay off credit cards, Upgrade can often send the funds directly to your creditors. This increases your approval odds because the lender knows you aren’t just taking the cash to go on vacation.
Why We Chose It
In 2025, credit card interest rates are punishingly high. Upgrade offers a way out. Additionally, they offer a “rate discount” if you enable auto-pay.
- Loan Amounts: $1,000 – $50,000
- Pros: Direct payment to creditors; free credit monitoring tools; discounts for auto-pay.
- Cons: Origination fees are deducted from loan proceeds.
The Verdict
Choose Upgrade if your bad credit is caused by high credit card utilization and you are ready to discipline your finances.
Applying does NOT affect your credit score!
4. OneMain Financial: The Flexible Giant
Best For: Borrowers with scores below 580 or who need a secured option.
OneMain Financial operates differently than the pure “fintech” algorithms. With branches across the US, they offer a human touch. More importantly, they offer secured personal loans. If your credit is too poor for an unsecured loan, you can use your vehicle as collateral to secure approval.
Why We Chose It
OneMain looks at your “ability to pay” (your budget) more than just your history. Consequently, they have some of the highest approval odds in the industry for deep subprime borrowers.
- Loan Amounts: $1,500 – $20,000
- Pros: Secured options available; face-to-face service if desired; very high approval odds.
- Cons: Higher interest rates; requires collateral for the best terms.
The Verdict
If you have been rejected everywhere else, OneMain is often the “Yes” you are looking for.
5. LendingPoint: The “Fair” Credit Champion
Best For: Scores in the 600-650 range (Near-Prime).
LendingPoint markets specifically to “Fair” credit. They look for an upward trend in your credit history. If you had financial trouble two years ago but have been perfect for the last 12 months, LendingPoint’s algorithm will reward you.
Why We Chose It
They offer flexible repayment terms (up to 60 months) which can make monthly payments manageable. Moreover, they allow you to pick your payment date.
- Loan Amounts: $2,000 – $36,500
- Pros: Customized loan offers; funds often available in 24 hours.
- Cons: Not available in all 50 states; origination fees up to 8%.
The Verdict
Perfect for the borrower who is recovering and needs a lender that recognizes their recent progress.
6. Universal Credit: The Streamlined Solution
Best For: Borrowers needing a simple, no-frills loan.
A subsidiary related to Upgrade, Universal Credit is designed for the lower end of the credit spectrum. They offer a simplified application process designed to give you a “Yes” or “No” instantly.
Why We Chose It
Universal Credit is willing to accept higher Debt-to-Income (DTI) ratios than many competitors. If you have a decent income but a lot of existing debt, this might be your best route.
- Loan Amounts: $1,000 – $50,000
- Pros: Accepts high DTI; fast approval; rate discounts available.
- Cons: Origination fees are standard; APRs start higher than prime lenders.
The Verdict
A solid backup option if Upgrade or Upstart turn you down.
7. Best Egg: The Reputation Leader
Ideal For: Homeowners with fair credit.
Best Egg has funded billions in loans and maintains a stellar reputation for customer service. While their minimum score is slightly stricter (usually around 600), they offer a “Secured” loan option for homeowners that leverages fixtures in your home (without placing a lien on the property in the traditional mortgage sense) to grant approval.
Why We Chose It
Their Cross-Collateralization options allow for lower rates. Furthermore, their funding speed is exceptional.
- Loan Amounts: $2,000 – $50,000
- Pros: Great customer service; fast funding; competitive rates for homeowners.
- Cons: Strict fee structure; origination fees apply.
The Verdict
If you own a home but have a rocky credit history, Best Egg should be one of your first stops.
Applying does NOT affect your credit score!
Understanding the Landscape: What is “Bad Credit” in 2025?
Before applying, it is crucial to understand where you stand. In the US, FICO scores generally fall into these buckets:
- Excellent: 800+
- Very Good: 740 – 799
- Good: 670 – 739
- Fair: 580 – 669
- Poor (Bad): Below 580
Most of the lenders listed above specialize in the 580 to 660 range. If your score is below 550, your options narrow significantly to secured loans (like OneMain) or specialized credit unions.
The “Guaranteed Approval” Myth
You will often see searches for “Guaranteed approval personal loans for bad credit.”
We must be brutally honest: No legitimate lender guarantees approval before reviewing your application.
Lenders who promise “Guaranteed Approval” without a credit check or income verification are almost always:
- Predatory Payday Lenders: Charging 400%+ APR.
- Scammers: Looking to steal your identity or an “upfront fee.”
The lenders we reviewed above offer High Approval Odds, which is the legitimate alternative. They want to lend to you, but they verify your ability to pay to ensure you don’t fall into a debt trap.
How to Increase Your Approval Odds (Step-by-Step)
If you are worried about rejection, do not just apply blindly. Follow this sophisticated strategy to maximize your chances:
1. Prequalify Without Impacting Your Score
Never submit a full application without checking your rate first. All 7 lenders listed above offer a Soft Credit Pull feature. This allows you to see your potential APR and loan amount without a “Hard Inquiry” appearing on your credit report.
- Tip: Check rates with at least 3 lenders. It costs you nothing but time.
2. Check Your DTI Ratio
Lenders love the Debt-to-Income ratio. If your monthly debt payments consume more than 40% of your gross income, approval becomes difficult.
- Action: If possible, pay down a small credit card balance before applying to lower your utilization.
3. Consider a Co-Signer
If your score is truly in the “Poor” range (sub-550), adding a co-signer with good credit (like a spouse or parent) can drop your interest rate by double digits. Lenders like Upgrade and OneMain are often amenable to co-signed applications.
4. Gather Documentation Early
In 2025, speed is everything. Have these ready in digital PDF format:
- Two recent pay stubs.
- W-2 forms from last year.
- Government ID.
- Proof of address (utility bill).
Secured vs. Unsecured Bad Credit Loans
Understanding this distinction is vital for optimizing your loan terms.
Unsecured Loans
These are standard personal loans. They require no collateral.
- Risk: The lender takes all the risk.
- Consequence: Interest rates are higher (18% – 35.99%).
- Best for: Renters or those who don’t want to risk assets.
Secured Loans
These require an asset (car, savings account, fixtures).
- Risk: You risk losing your asset if you default.
- Reward: Much higher approval odds and significantly lower APRs.
- Best for: Borrowers with scores under 580.
Best personal loans for bad credit: Frequently Asked Questions (FAQ)
To further assist you in your financial journey, here are the most common questions we receive regarding bad credit loans.
1. Can I get a personal loan with a 500 credit score?
Yes, but it is challenging. Unsecured loans are rare at this score level. You will likely need to look at Secured Personal Loans (like OneMain Financial) or Credit Union “Payday Alternative Loans” (PALs). Avoid traditional payday loans at all costs.
2. How fast can I get the money?
Online lenders have optimized for speed. Most of the lenders on our list (like Avant and Upstart) can fund your loan within 24 to 48 hours after approval. However, ensure you respond to any document requests immediately to prevent delays.
3. Will checking my rate hurt my credit score?
No. Using the “Check Your Rate” or “Pre-qualify” tool on a lender’s website performs a soft inquiry. This is visible only to you, not to other lenders, and does not impact your FICO score. A hard inquiry only happens when you accept the offer and sign the final agreement.
4. What is a “good” interest rate for bad credit?
In the current 2025 economic climate, if your score is below 640, an APR between 18% and 25% is considered standard. Anything below 15% for bad credit is exceptional. Anything above 36% is considered predatory and should generally be avoided.
5. Can I use a personal loan for debt consolidation?
Absolutely. In fact, this is the smartest way to use a bad credit loan. If you have credit cards charging 29% interest, taking a personal loan at 20% interest not only saves you money but also gives you a fixed end date for your debt.
Final Thoughts: Navigating Your Financial Future
Securing a personal loan with bad credit is not just about getting cash; it is about strategic financial management. The lenders listed above—Upstart, Avant, Upgrade, OneMain, LendingPoint, Universal Credit, and Best Egg—represent the safest, most transparent options in the US market today.
Remember, this loan is a tool. If managed correctly, with on-time payments, it becomes the catalyst that moves your credit score from “Bad” to “Fair,” and eventually to “Good.”
Ready to explore more options?
If you want to compare these against prime lenders or learn more about how interest rates are determined, visit our main hub: Personal Loans Guide: Best Rates & Lenders.
Applying does NOT affect your credit score!
Disclaimer: Cashlendy.com is an independent review site. Interest rates and terms are subject to change based on the lender’s discretion and market conditions. Always read the fine print before signing any loan agreement.
