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Loans for bad credit

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Author
By Meredith Mangan

Written by

Meredith Mangan

Meredith Mangan is a senior editor at Credible. She has more than 18 years of experience in finance and is an expert on personal loans.

Edited by Barry Bridges
Barry Bridges

Written by

Barry Bridges

Barry Bridges is the personal loans editor at Credible. Since 2017, he’s been writing and editing personal finance content, focusing on personal loans, credit cards, and insurance.

Updated June 2, 2025

Best Bad Credit Loan Rates for June 2025

Advertiser Disclosure
The rates that appear are from companies which Credible receives compensation. This compensation does not impact how or where products appear within the table. The rates and information shown do not include all financial service providers or all of the displayed lender's available services and product offerings.
Filters$20,000 loan amount and 700-749 credit score, ordered by APR
Filters$20,000 loan amount and 700-749 credit score, ordered by APR
Lightstream
Lightstream

Rates from (APR)

6.49-25.29%4

Loan term

2 - 7 years

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Best Egg
Best Egg

Rates from (APR)

6.99-35.99%

Loan term

2 - 5 years

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Upstart
Upstart

Rates from (APR)

7.80-35.99%

Loan term

3, 5 years

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Lending club
Lending club

Rates from (APR)

7.90-35.99%5

Loan term

2 - 7 years

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Splash Financial
Splash Financial

Rates from (APR)

7.99-17.97%

Loan term

3 - 6 years

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Reach
Reach

Rates from (APR)

7.99-35.99%

Loan term

2 - 5 years

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Upgrade
Upgrade

Rates from (APR)

7.99-35.99%

Loan term

2 - 7 years

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Happy Money
Happy Money

Rates from (APR)

8.95-29.99%

Loan term

2 - 5 years

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Citibank
Citibank

Rates from (APR)

8.99-19.49%7

Loan term

1 - 5 years

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SoFi
SoFi

Rates from (APR)

8.99-35.49%3

Loan term

2 - 7 years

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Prosper
Prosper

Rates from (APR)

8.99-35.99%

Loan term

2 - 5 years

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Rocket
Rocket

Rates from (APR)

9.12-29.99%

Loan term

3, 5 years

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Avant
Avant

Rates from (APR)

9.95-35.99%

Loan term

2 - 5 years

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BHG
BHG

Rates from (APR)

9.96-23.48%6

Loan term

3 - 10 years

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RepriseFinancial
RepriseFinancial

Rates from (APR)

9.99-35.99%

Loan term

3-5 years

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Universal credit
Universal credit

Rates from (APR)

11.69-35.99%

Loan term

3, 5, or 7 years

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One main
One main

Rates from (APR)

18.00-35.99%

Loan term

2 - 5 years

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Bad credit loan interest rates

Bad credit loan rates are affected by the overall interest rate environment, including economic factors such as inflation. They’re also influenced by your credit history, income, employment record, and outstanding debts.

To determine what your personal loan rate might be if you have bad credit, you can prequalify online. Prequalifying won’t affect your credit score and is only an estimate of the rates and terms you might receive. If you move ahead with a formal application, lenders usually perform a hard credit inquiry, which could temporarily drop your credit score by a few points.

A FICO score below 580 is generally considered a bad credit score. Here are average interest rates selected by borrowers with FICO scores below 580 who prequalified on the Credible marketplace in May 2025:

  • 2-year loans: 34.37% APR
  • 3-year loans: 31.29% APR
  • 5-year loans: 30.18% APR

Related: What Credit Score Do You Need for a Personal Loan?

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Personal loan historic rate trends

Average personal loan interest rates ranged from 13.93% APR to 18.71% APR for borrowers with FICO scores of 720 or higher. If you have bad credit (a FICO score below 580) and can get approved for a personal loan, you might expect an APR near or above 30%. With good credit, your APR could be closer to the 15%-20% range. Nationally, the average FICO score is 715.

The chart below shows average interest rates over the past three years for borrowers with credit scores of 720 or higher.
 

 

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How do bad credit loans work?

A bad credit loan is a type of installment loan, which means you pay back the borrowed amount in regular installments, usually monthly. Both the payments and interest rate are typically fixed, which means they stay the same every month.

Cost of borrowing (APR)

Personal loans typically use annual percentage rates (APRs), which account for both interest rates and upfront lender fees, to measure the cost of borrowing. Personal loan APRs can range from 6.49% to 35.99%. 

Bad credit loans tend to have higher APRs, in some cases 30% or more, because lenders view borrowers with bad credit as more of a risk. On the other hand, lenders may consider certain factors that could lower your APR, such as:

Repayment terms

You usually have multiple options for repayment terms. Depending on the lender and the loan you choose, terms could vary from around two to seven years, with some lenders offering longer terms for specific loan purposes like home improvement.

Loan amounts

The amount you can borrow with a bad credit loan typically ranges from $1,000 to $50,000. You might even be able to borrow up to $100,000 or more with certain lenders. If you have bad credit, some of the factors that could lower your APR (including income, collateral, and co-signed or joint loans) could also increase the amount you can borrow. 

Fees

Many lenders charge origination fees to cover the cost of underwriting personal loans, and these fees tend to be higher for bad credit loans. Origination fees are typically deducted upfront from your loan proceeds and can range as high as 12%. Some lenders also charge fees for late payments, returned checks and insufficient funds (not reflected in the APR).

Funding times

The time it takes to get your loan funds varies from lender to lender. Some lenders can deposit your money the same day you’re approved, while others can take several business days.

Related: How Do Personal Loans Work? 

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How to compare personal loans for bad credit

Here are some important factors to consider when you're deciding between lenders or multiple loan options from the same lender.

  • APR: Compare APRs between loan options. The APR indicates the cost of the loan, and lower means less expensive. 
  • Monthly payment: Find a loan with a payment you can afford to make, on-time, for the duration of the loan's term. A personal loan can be an opportunity to improve your credit score, which can help you qualify for financing (and low interest rates) in the future.
  • Fees: Reputable lenders are transparent about disclosing upfront fees, such as origination fees, and incidental fees, such as late fees. Look for lenders with limited and low fees. 
  • Funding time: Although a few lenders can fund your loan as soon as the same day, the typical wait time is a few business days. If you need the money urgently, prioritize lenders that offer fast emergency loans.
  • Discounts: Some lenders offer interest rate discounts. Common examples include discounts for setting up automatic loan payments or, with debt consolidation loans, authorizing direct payment to your creditors.
  • Lender reputation: Check customer reviews on Trustpilot, the Better Business Bureau website, and Google Reviews to see what kind of experiences other borrowers have had.

Related: How To Choose the Best Bad Credit Loan Lender

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Personal loan interest rates and loan purposes for bad credit

What are some common APRs and loan purposes for borrowers with bad credit? Here are the average rates on closed loans on the Credible personal loan marketplace for borrowers with FICO scores of less than 580 from April 2024 to March 2025, along with some of the most common loan purposes: 

  • Debt consolidation: 34.01% APR
  • Credit card refinancing: 33.26% APR
  • Bills or rent: 34.29% APR
  • Home improvement: 29.83% APR
  • Other: 29.95% APR
  • Major purchase: 33.78% APR
  • Medical expenses: 32.78% APR
  • Car repair: 30.90% APR
  • Moving relocation: 34.97% APR
  • Vacation: 35.20% APR
  • Car financing: 35.21% APR
  • Taxes: 30.10% APR
  • Wedding: 33.63% APR
  • Special occasion: 32.81% APR

Read More: What Are Personal Loans Used For?

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How to avoid a personal loans scam

Unfortunately, there are predatory lenders out there who try to take advantage of people with bad credit by promising quick funding and no-credit-check loans. However, many legitimate lenders may also offer these things.

To avoid a bad credit loan scam, look out for lenders that:

  • Request a fee in advance: A lender that asks for a processing fee or application fee before you apply or are approved is a scam. This is different from an origination fee, which is taken from the amount you borrow, not from your bank account.
  • Ask for payment using methods that can’t be traced: Never agree to make loan payments in cash or by wire, as those methods have no paper trail that can be traced. Same with “lenders” that ask you to send payment via courier. 
  • Guarantee you’ll be approved no matter what: A lender that promises to loan money to you is not reputable.
    Ask for the title on your car: This is a sign of a title loan, which is a predatory type of loan with exceptionally high fees. If you default on the loan, you can lose your car. 
  • Promise “insurance” on a loan: Loans don’t require insurance, though they may be an option for some types of loans. If a lender requires money for insurance on a loan, that’s a sign of a scam.
  • Ask for your bank login information: A lender doesn’t need login credentials for your bank account. That’s a sign a criminal is about to clear out your savings.

Learn More: How to Check If a Personal Loan Company Is Legitimate

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over $43 million

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Calculate your savings with Credible

Use our debt consolidation calculator to see how different terms and interest rates can change what you pay over time.

1. Enter your current loan details

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2. Choose a rate to compare

Our lender rates vary from 6.49% to 35.99% APR1

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3. Check the results

With an interest rate of 12.00% over 5 years, you will pay per month and in interest over the lifetime of your loan.

Total interest:

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Checking rates won’t affect your credit score. Calculator results are for illustrative purposes only.

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Whether you want to consolidate debt or cover an unexpected expense, Credible makes it easy to find a personal loan that works best for you.

It’s your data, your decision

Checking rates on Credible is 100% free. We earn money by helping you find the best product — not by selling your data.

We’re unbiased and transparent

We don’t get paid to rank products higher, and we don’t hide fees. You’ll know exactly what your cost breakdown is before selecting a lender.

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How to get a loan with bad credit online with Credible

  • One simple form

    We’ll ask questions to narrow down your lender and rate eligibility. Receive real rates, not estimates.

  • Compare rates

    Shop from lenders like LendingClub, LightStream, Upstart, SoFi, and more. Choose your lender, interest rates, and term.

  • Close your loan and fund your goal

    If you’re approved, you’ll just need to sign your documents — then relax as the funds make their way to you.

Checking rates won't affect your credit score

Why Trust Credible

Through its marketplace, Credible helps you shop around for personal loans without cost or commitment. We earn money when we help you find the best product, not by selling your data. The blog content we create is deeply researched to help you make an informed decision that’s right for you — our partner lenders have no editorial control over the articles we publish. 

Benefits of taking out a personal loan

Benefit

Lower rates

Getting rid of high-interest debt can save you money on interest payments.

Benefit

Improve your credit

Making on-time payments on a loan can boost your credit score.

Benefit

No collateral

Most personal loans don’t require collateral, so you won’t need to use your home or vehicle to secure it.

For all your goals

Get a personal loan for all your financial needs

Our lender partners support personal loans for many different loan purposes. They offer low interest rates and a variety of loan amounts and loan terms to help you meet your personal and financial goals.

Loan goals

Debt Consolidation

Pay off high-interest debt by combining it all into a single loan and payment at a lower interest rate.
Debt Consolidation Loans
Loan goals

Home Improvement

Finance a home improvement project from major repairs to a remodel or addition.
Home Improvement Loans
Loan goals

Credit Card Refinancing

Refinance high-interest credit debt by combining it all into one loan and payment at a lower interest rate.
Credit Card Refinancing Loans
Loan goals

Bad Credit Loans

Loans for those who may have credit difficulties (like poor credit or a thin credit history).
Bad Credit Loans

Just need money? Get started now.

Checking rates won’t affect your credit score

FAQ

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

What are bad-credit loans?

How can I get a personal loan with bad credit?

What is a bad credit score?

How to qualify for a personal loan with bad credit

What are the pros and cons of bad-credit loans?

Where can I get a bad-credit loan?

How does a bad credit loan affect your credit score?

What are the alternatives to bad-credit loans?

Can I refinance a bad-credit loan?

What types of loans can I get with bad credit?

Can I get a loan with no credit check?

Disclosure: Some lending partners that participate in Credible’s comparison marketplace offer loans to borrowers with scores as low as 550. Borrowers with low scores will have fewer lending options than borrowers with higher credit scores.