Having bad credit doesn’t mean you’re out of options. Whether you’re dealing with unexpected expenses, consolidating debt, or funding a big purchase, personal loans for bad credit can provide the financial support you need—without judgment.
In this 2025 guide, we’ll explore the best lenders that offer personal loans to individuals with poor credit, how to improve your chances of approval, and what to avoid during the process.
💡 What Is Considered Bad Credit?
Credit scores range from 300 to 850. A FICO score below 580 is generally considered poor credit. While many traditional banks reject applicants in this range, online lenders and credit unions often provide more flexible options.
🏆 Best Personal Loan Providers for Bad Credit (2025)
1. Upstart
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Min. Credit Score: 300+
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Loan Amount: $1,000 – $50,000
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APR Range: 6.5% – 35.99%
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Funding Time: As fast as 1 business day
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Why It’s Great: Uses alternative data (like education and work history) to approve applicants, not just credit scores.
2. Avant
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Min. Credit Score: 550+
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Loan Amount: $2,000 – $35,000
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APR Range: 9.95% – 35.99%
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Funding Time: Next business day
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Why It’s Great: Reliable lender with transparent fees and fast decisions. Great for people rebuilding credit.
3. OneMain Financial
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Min. Credit Score: No minimum
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Loan Amount: $1,500 – $20,000
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APR Range: 18.00% – 35.99%
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Funding Time: Same-day possible
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Why It’s Great: Physical branches and in-person service for people who prefer face-to-face help.
4. LendingPoint
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Min. Credit Score: 600+
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Loan Amount: $2,000 – $36,500
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APR Range: 7.99% – 35.99%
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Funding Time: Within 1–2 days
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Why It’s Great: Fast approval and easy application; ideal for fair credit and upward mobility.
📋 What to Watch Out For
| ⚠️ Risk | Details |
|---|---|
| High APRs | Bad credit loans often come with higher interest—compare multiple offers. |
| Hidden Fees | Avoid lenders with prepayment penalties, origination fees, or monthly charges. |
| Scam Lenders | Always verify legitimacy. Trusted lenders don’t ask for upfront payments or gift card deposits. |
✅ How to Increase Approval Chances
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Check Your Credit Report: Correct any errors before applying.
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Add a Co-Signer: A trusted co-signer with good credit improves your odds and lowers the interest rate.
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Borrow Only What You Need: Smaller amounts = easier approval.
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Show Proof of Income: Steady income reassures lenders even if your credit score is low.
💳 Alternatives to Personal Loans for Bad Credit
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Secured loans (use your car or savings as collateral)
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Credit builder loans (build credit while saving)
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Payday alternative loans (PALs) from credit unions
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0% APR credit card intro offers (if you qualify)
✍️ Final Thoughts
Getting a personal loan with bad credit in 2025 is absolutely possible. Online lenders like Upstart, Avant, and LendingPoint offer fair and fast solutions tailored for your financial situation. Just be sure to compare offers, read the fine print, and borrow responsibly.
Bad credit is not forever. With the right loan and smart repayment, you can rebuild your credit score and move forward financially.
