If you have a low credit score, securing a personal loan can be difficult, but it's not impossible. With the right lender, you can still access a loan, even with bad credit. This guide explores the best personal loan lenders for individuals with low credit scores in the USA in 2025.
Whether you need to consolidate debt, cover unexpected expenses, or finance a large purchase, these loan options will help you find the right fit.
What is Considered a "Bad Credit" Score?
A credit score below 580 is generally considered bad. The score is determined by various factors like payment history, credit usage, and length of your credit history. Scores between 300 and 579 are seen as poor and may make it more difficult to get approved for traditional loans.
How Bad Credit Impacts Loan Approval
A low credit score typically indicates to lenders that you may be a higher-risk borrower. As a result, you might face higher interest rates, fewer loan options, or even outright rejections. However, certain lenders specialize in helping individuals with bad credit, though the terms might not be as favorable as those offered to borrowers with better credit.
Top 6 Personal Loan Lenders for Bad Credit in the USA (2025)
Below are some of the top personal loan providers for individuals with bad credit in the USA for 2025:
1. Upstart
Best for: Fast approval and considering non-traditional credit factors
Upstart is unique because it evaluates applicants using not just credit scores but also alternative data such as education and employment history. This is especially helpful for individuals with bad credit or limited credit history.
- Loan Amounts: $1,000 to $50,000
- APR Range: 5.4% to 35.99%
- Repayment Terms: 3 to 5 years
Pros: Quick approval and funding, and use of alternative credit data.
Cons: Higher interest rates for borrowers with poor credit.
2. OneMain Financial
Best for: Both secured and unsecured loans
OneMain Financial offers both secured loans (backed by collateral) and unsecured loans, providing more flexibility. If you have an asset like a car or home, a secured loan could help you secure a better interest rate.
- Loan Amounts: $1,500 to $20,000
- APR Range: 18% to 35.99%
- Repayment Terms: 2 to 5 years
Pros: Secured loans offer lower interest rates, with the option for in-person service.
Cons: Higher rates for unsecured loans.
3. Avant
Best for: Quick loan access
Avant is known for its fast approval process, making it ideal for individuals who need quick access to funds. They cater to borrowers with fair to bad credit and provide a simple, fast application process.
- Loan Amounts: $2,000 to $35,000
- APR Range: 9.95% to 35.99%
- Repayment Terms: 2 to 5 years
Pros: Fast approval and easy online application.
Cons: Higher APRs for those with poor credit.
4. LendingClub
Best for: Peer-to-peer lending and flexible eligibility
LendingClub operates as a peer-to-peer lending platform, allowing borrowers to get funds from individual investors. This flexibility in eligibility criteria makes it a good option for those with less-than-perfect credit.
- Loan Amounts: $1,000 to $40,000
- APR Range: 6.34% to 35.89%
- Repayment Terms: 3 to 5 years
Pros: Peer-to-peer lending model, potentially lower rates, flexible loan terms.
Cons: High origination fees (up to 6%).
5. Prosper
Best for: Competitive interest rates and transparency
Prosper is another peer-to-peer lending platform offering personal loans with relatively low starting APRs, even for borrowers with bad credit. Their process is transparent and straightforward, ideal for debt consolidation or major purchases.
- Loan Amounts: $2,000 to $40,000
- APR Range: 7.95% to 35.99%
- Repayment Terms: 3 to 5 years
Pros: Competitive rates and quick application process.
Cons: Charges origination fees, and approval time can be longer.
6. NetCredit
Best for: Quick access to funds for borrowers with very bad credit
NetCredit offers personal loans and lines of credit to people with bad credit. Though the APRs can be very high, it’s an option for those who may not qualify for traditional loans. The approval process is fast and straightforward.
- Loan Amounts: $1,000 to $10,000
- APR Range: 34% to 155% (varies by state and credit profile)
- Repayment Terms: 6 to 60 months
Pros: Fast approval process with flexible terms.
Cons: Extremely high APRs, especially for those with poor credit.
Key Factors to Consider When Choosing a Lender
When applying for a personal loan, especially with bad credit, consider these factors:
- APR: The annual percentage rate will determine how much interest you'll pay over the life of the loan.
- Loan Terms: Loan terms (repayment length) affect your monthly payment and total interest paid.
- Fees: Look out for origination fees, prepayment penalties, and other costs associated with the loan.
- Approval Time: Some lenders offer fast approval and funding, which may be important in an emergency.
Explore the best personal loan options for individuals with bad credit in the USA. Ensure to choose a loan that fits your financial needs and helps you get back on track.
Finding the best personal loan lender for your situation in 2025 can be a challenge, but it's possible with the right approach. By comparing interest rates, loan terms, and lender reputation, you can find an option that meets your needs. Even with bad credit, there are lenders that can provide the financial relief you require, but it’s essential to understand the terms and consider alternatives like credit unions or secured loans if necessary.
Make sure to review your credit score and apply only to lenders that offer favorable terms for your financial situation. With the right loan, you can start rebuilding your credit and achieving financial stability.