Best personal loans for bad credit of August 2023

If you have poor credit, it can be difficult to get approved for a personal loan. But with Upgrade, you could get approved for a loan ranging from $1,000 to $50,000 with a credit score as low as 580. And if you’re approved, you could get your funds within a day of clearing any necessary verifications. Repayment terms range from two to seven years.

Keep in mind that Upgrade charges an origination fee as well as fees for late and returned payments, which can increase your overall loan cost. However, you might be able to reduce your interest rate on an Upgrade loan if you sign up for autopay and use a portion of your loan proceeds to pay off debt you already have.

• Interest rates: 8.49% to 35.99%.
• Loan amounts: $1,000 to $50,000.
• Repayment terms: 2 to 7 years.
• Discounts: Autopay and debt consolidation (amounts not disclosed).
• Fees: Origination fee (1.85% to 8.99%), late fee ($10) and returned payment fee ($10).
• Min. credit score: 580.
• Can apply with a co-signer: No (but can apply with a joint applicant).

If you need more time to pay off your loan, LendingPoint has you covered. Borrowers with a minimum credit score of at least 600 could qualify for a loan ranging from $2,000 to $36,500 with repayment terms from two to seven years. Just keep in mind that while choosing a longer term can get you a lower monthly payment, it also means you’ll pay more in interest over time.

After applying for a LendingPoint loan, you should receive an initial decision within seconds, and you could get your funds as soon as the next business day after final approval.

Note that while LendingPoint doesn’t charge late fees, there is an origination fee of up to 8% of your loan amount. Additionally, this lender doesn’t allow co-signers or joint applicants, which means you’ll have to qualify on your own. And while LendingPoint offers the option to sign up for automatic payments, it doesn’t disclose whether you could receive a rate discount for doing so.

• Interest rates: 7.99% to 35.99%.
• Loan amounts: $2,000 to $36,500.
• Repayment terms: 2 to 7 years.
• Discounts: Does not disclose.
• Fees: Origination fee (0% to 8%).
• Min. credit score: 590.
• Can apply with a co-signer: No.

Unlike most of the lenders on this list, Prosper is a peer-to-peer (P2P) lender. This means that instead of borrowing from a financial institution, you’ll work directly with a private investor (or group of investors) who will fund your loan. Because this cuts out the middleman, it can be easier to qualify for a P2P loan compared to a loan from a traditional lender.

With Prosper, you can borrow $2,000 to $50,000 with terms from two to five years, and you could get approved with a credit score as low as 600. Prosper also accepts joint applications, which can further increase your chances of qualifying. If you’re approved, you could get your funds as soon as the next business day.

Keep in mind that this lender charges an origination fee as well as fees for check payments, late payments and insufficient funds — all of which can increase your overall borrowing costs. Personal loans from Prosper also aren’t available in Iowa and West Virginia.

• Interest rates: 6.99% to 35.99%.
• Loan amounts: $2,000 to $50,000.
• Repayment terms: 2 to 5 years.
• Fees: Origination fee (1% to 5%), check payment fee ($5 or 5% of your payment, whichever is less), late fee ($15 or 5% of the unpaid amount, whichever is greater) and insufficient funds fee ($15).
• Min. credit score: 600.
• Can apply with a co-signer: No (but can apply with a joint applicant).

LendingClub allows borrowers to apply for a personal loan with a co-borrower, which could make it a good option if you’re struggling to get approved on your own. Even if you don’t need a joint applicant to qualify, having one could get you a lower interest rate or higher loan amount than you’d get alone. Just keep in mind that unlike a co-signer who is responsible for a loan if the primary borrower doesn’t keep up with the payments, a co-borrower will be equally liable for the loan as soon as it’s finalized.

With LendingClub, you can borrow $1,000 to $40,000 with terms from three to five years. Unlike most lenders, LendingClub has no specific minimum credit score requirement, which could make it even easier to get approved. However, the lender does charge origination fees and late payment fees. Funding might also take longer compared to some lenders.

• Interest rates: 9.57% to 35.99%.
• Loan amounts: $1,000 to $40,000.
• Loan terms: 3 to 5 years.
• Discounts: None.
• Fees: Origination fee (2% to 6%), late fee (5% of outstanding payment amount or $15, whichever is greater) and insufficient funds fee ($15).
• Min. credit score: No minimum.
• Can apply with a co-signer: No (but can apply with a joint applicant).

If you’re only looking to borrow a small amount, Oportun — the only lender designated as a Community Development Financial Institution on this list — might be a good option. You can borrow as little as $300 up to $8,000 with an unsecured loan (actual amounts could vary depending on your state). This is much lower than many competitors, meaning you can borrow only what you need without paying more interest than necessary. Repayment terms and fees will depend on your location. Oportun also has no specific minimum credit score requirement.

Additionally, if you live in Arizona, California, Florida, New Jersey or Texas and own an eligible vehicle, you might be able to borrow up to $18,500 (actual amounts could vary depending on your state) if you provide your car title as collateral. However, this means you risk losing your vehicle if you can’t make your payments. Also note that Oportun loans aren’t available in Colorado, Connecticut, Maine, Maryland, Massachusetts, Nevada, New York, West Virginia or Washington, D.C.

• Interest rates: 12.49% to 35.99% (depending on your state and loan type).
• Loan amounts: $300 to $18,500 (depending on your state; larger loan amounts require collateral).
• Repayment terms: 1 to 4.08 years for unsecured loans or 2 to 5.33 months for secured loans (term options will depend on your location).
• Discounts: None.
• Fees: Origination fee, late fee and returned payment fee (fee amounts will depend on your location).
• Min. credit score requirements: No minimum.
• Can apply with a co-signer: Yes (in some cases).

While Upstart has a minimum credit score requirement of 300, it also works with borrowers who don’t have enough of a credit history to generate a credit score — often referred to as thin credit. This is because the platform makes credit decisions using artificial intelligence, which also considers factors like your education and employment history.

Upstart personal loan amounts range from $1,000 to $50,000, with three- or five-year repayment terms. Note that Upstart charges an origination fee as well as fees for late and returned payments, which could increase your overall costs. This lender also doesn’t allow co-signers or joint applicants.

• Interest rates: 4.6% to 35.99%.
• Loan amounts: $1,000 to $50,000.
• Loan terms: 3 or 5 years.
• Discounts: None.
• Fees: Origination fee (0% to 10%), late fee (5% of past-due amount or $15, whichever is greater) and returned payment fee ($15).
• Min. credit score: 300.
• Can apply with a co-signer: No.

With Avant, you could get your funds as soon as the next business day after approval, which could make it a great option if you need access to cash quickly. You can borrow $2,000 to $35,000 with terms from one to five years.

Note that Avant charges an origination fee as well as fees for late and dishonored payments that could drive up your loan costs. This lender also doesn’t allow co-signers or joint applicants.

• Interest rates: 9.95% to 35.99%.
• Loan amounts: $2,000 to $35,000.
• Loan terms: 1 to 5 years.
• Discounts: None.
• Fees: Origination fee (up to 4.75%), late fee ($25) and dishonored payment fee ($15).
• Credit score requirements: 580.
• Can apply with a co-signer: No.