The best online loans are from SoFi and Upgrade on account of low rates, fast funding, and available discounts.
Personal loans represent about 10% of non-revolving consumer credit in the U.S. and serve a variety of purposes from consolidating credit cards to funding large purchases like vacations and weddings. You used to need to go into a bank or credit union and fill out a bunch of paperwork to get a personal loan. Now, you can go online and apply for one in a matter of minutes.
You can apply for online personal loans with a number of banks, credit unions, online institutions, and fintechs. But some online lenders offer other types of loans that may be predatory in nature, such as payday loans. Make sure you compare APRs before applying. Non-predatory loans typically have APRs below 36%.
Warning:
Loans that don’t require a credit check and are due within weeks are likely to be predatory in nature.
Where to find the best online personal loans
Loan Amount
$5,000 - $100,000
Min. Credit Score
Does not disclose
Large loan amounts available
Autopay and direct pay discounts
Same day funding
Long loan terms available
Not transparent about minimum credit score requirements
5,000 minimum loan amount
Overview
SoFi personal loans feature high loan amounts, competitive interest rates, same-day funding, and long loan terms, plus discounts for autopay and direct pay. Plus, SoFi offers live chat, a prequalification process that doesn't require your Social Security number, and free financial advice for customers. Unlike many other online lenders, SoFi is an FDIC-insured bank.
To qualify for an unsecured loan you may need to have good credit, but unlike other lenders, SoFi doesn't specify a credit score minimum. Minimum loan amounts start at $5,000.
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Loan Amount
$1,000 to $50,000
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Best for no origination fees (and low rates)
Loan Amount
$2,500 to $40,000
Low minimum APR
May fund the next business day
Long loan terms available
Direct pay to creditors
No origination fee
No discounts offered
Secured loans not available
Overview
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Eligibility
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Best quick loans for good credit
Loan Amount
$5,000 to $35,000
Excellent customer reviews on Trustpilot
Funding as soon as the next business day
Large loan amounts available
Possible origination fee up to 7.49% (through Credible)
Other lenders may have lower starting APRs
No cosigner option
Overview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchases
Best debt consolidation loans for bad credit
Loan Amount
$1,000 to $50,000
Borrowers with bad credit considered
$25,000 annual income requirement
Autopay and direct pay discounts available
Can fund in one business day
High APRs
Potentially high origination fees
Not available in Iowa
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Loan Amount
$1,000 to $40,000
Mobile app
Low minimum income requirement
High close rate on loans made through Credible
Available in all states
Origination fee
No discounts
Funding not as fast as some competitors
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
Best bad credit personal loans
Loan Amount
$1,500 to $20,000
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
Availability
Origination fees
High starting APR
Low maximum loan amount
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Best for all credit types
Loan Amount
$2,000 to $35,000
Borrowers with bad credit considered
Funds as soon as the next business day
2-year loan terms available
No discounts offered
Origination fee
Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Best for consolidating credit card debt
Loan Amount
$5,000 to $40,000
Mobile app
Live chat
Low maximum APR
Limited loan terms available
No discounts
Origination fees
Not available in MA or NV
Overview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Eligibility
Available in all states except MA and NV
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Why you can trust Credible
The Credible editorial team is independent and unbiased, which means that partners do not influence our editorial content. Using data-driven methodologies, we analyzed over 800 personal loan data points across 30 lenders and scored criteria that are important to you. This approach allows us to objectively rank personal loans. To learn more, read our methodology below.
Methodology
Credible evaluated the best online loans based on factors including the online customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible’s team of experts gathered information from each lender’s website, customer service department, in-house resources, and via email support. Each data point was verified by a senior editor for accuracy. Check out our Personal Loans Lender Rating Methodology for more detail.
How to compare online loans
When comparing personal loans and other loans online, check the following:
- Eligibility: Do you meet minimum income and credit score requirements? Will the lender let you spend the money the way you want? (Some lenders only allow specific loan purposes, such as debt consolidation.)
- Loan amounts: Make sure the lender offers the amount of money you need to borrow. Personal loan amounts are often available between $1,000 and $50,000. But what you qualify for will depend on your income, credit, and existing debt.
- Funding time: Personal loans are typically funded within days of your loan’s approval, but some lenders offer same- or next-day funding. If you need money fast, choose a lender with fast approvals and same-day funding.
- APRs: Look at the annual percentage rate (APR), which accounts for the interest rate and any upfront fees, such as origination fees. Note that lenders of short-term loans, like payday loans, often charge fees instead of interest, which can equate to triple-digit APRs. Most legitimate lenders charge APRs up to 36%.
- Repayment terms: Repayment terms often range from around 1 to 7 years or more, depending on the lender and loan purpose. The longer your loan’s term, the lower your monthly payment is, in most cases. Use a personal loan calculator to see how monthly payments can vary based on loan term.
- Customer experience: Look at customer reviews on third-party websites like Trustpilot and the Better Business Bureau (BBB). In particular, check if different reviewers are reporting similar issues.
- Discounts and perks: Some lenders offer rate discounts for autopay or direct pay, while others don’t. Or you might get same-day funding if you’re already a customer with the lender. Review lender websites and third-party reviews to find out what a lender is willing to do to get and keep your business.
- Customer service: Ensure you’ll be able to reach the lender at a time that is convenient for you in case there are any issues with your loan.
Prequalify:
Before applying for a loan, most lenders let you prequalify to estimate the rate you might get. Compare prequalification rates, loan amounts, and repayment terms across lenders.
How do online loans work?
Online loans can be any type of loan you get online, but generally refer to personal loans. They’re issued by traditional and online banks, credit unions, and fintech lenders. With online loans, you’ll complete the entire application process online, and your funds are typically transmitted electronically to your bank account or directly to your creditors (in the case of a debt consolidation loan).
Loan uses
Personal loans can be used for a wide range of expenses. The most popular personal loan uses are credit card refinancing and debt consolidation, followed by home improvement loans. But some lenders restrict what you can use a personal loan for, and you need to declare the loan’s purpose when you apply.
Underwriting
Many times, underwriting (the process of verifying your financial information to qualify you for a loan) takes place electronically in a matter of minutes. Lenders typically run a hard credit check when you apply for an online loan, which can ding your score by a few points for up to a year.
Good to know:
Prequalification only requires a soft pull which won’t hurt your credit.
Average personal loan interest rates
The average interest rate on personal loans is currently just shy of 15% for three-year loans. Those with excellent credit qualified for rates at 12.43%, on average. Average credit card APRs were 21.76%, according to the Federal Reserve.
Pros and cons of online loans
Pros
- Quick application process
- Approval can happen within minutes
- Funds can be available the same or next day
- Usually no collateral is needed
- Prequalification has no credit impact
Cons
- Fair and bad credit borrowers may see high APRs
- ew onlines lenders have in-person customer service
How to apply for a personal loan online
Take the following steps to apply for a personal loan online.
- Compare lenders: Research lenders’ eligibility criteria, reputation, and any other factors that may be important to you, such as flexible repayment terms.
- Prequalify: Once you’ve narrowed down your options, go through the prequalification process, which allows you to check your rate without hurting your credit. Once you formally apply for a loan, the lender will conduct a hard credit pull which could hurt your score by a few points, temporarily. Note that prequalified rates are estimates and not an offer of credit.
- Pick a loan option: Compare rates and terms to choose the loan option that best meets your needs.
- Complete the application: Once you choose to proceed with the application, the lender will run a hard credit inquiry, which may decrease your credit score slightly. Provide additional documentation as necessary to complete the application.
- Review the loan agreement: If the lender’s final offered rate still works for you, read your loan documents carefully and sign to accept your loan offer.
- Get the funds: Wait for the funds to be deposited into your bank account. You can spend the money as soon as you receive it, but make sure to budget for repayment.
Learn More: How To Get a Personal Loan
Online loans for bad credit
If you’re looking for a loan for bad credit (a FICO score below 580), you’ll have fewer options available. Getting approved may be difficult and if you can get approved for a loan, your rate will likely be around or higher than 30% APR.
Some online lenders use alternative underwriting data to approve more borrowers with bad and fair credit. You can prequalify with bad credit lenders, like Upstart or Universal Credit, both Credible partners. You can also try the following:
Secure the loan: Some online lenders offer secured personal loans, which may be easier to qualify for and may offer a rate discount. For example, Best Egg offers online loans secured by your home fixtures, and Upgrade offers online loans secured by your vehicle. Best Egg and Upgrade are both Credible partners.
Apply with a cosigner or co-borrower: Applying with a co-borrower or cosigner who has good or excellent credit can improve your chances of getting an online loan. A co-borrower will have access to the funds and joint responsibility for repayment, while a cosigner will only be responsible for repayment if you fail to repay.
Improve your credit: Making on-time payments, paying down debt, and limiting applications for new credit can positively impact your score. These measures can take time. However, you may be able to get an quicker boost to your credit score by using a tool like Experian Boost.
Advertiser DisclosureOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
- Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Reprise may be an excellent option if you need a loan with bad credit. The lender says it will consider applicants with FICO scores as low as 560, and offers secured loans as well as some cosigned loans to help you qualify. Loan funds can be available the next business day once you’re approved. Plus, the company has a 4.7 Trustpilot rating — indicating generally satisfied customers.
But Reprise is not for everyone. Available loan amounts are relatively low at $25,000, and the minimum repayment term is relatively high at three years. The lender also charges origination fees, does not offer discounts, does not consider income from self-employment, and is not available nationwide.
pros
- Loans for bad credit
- 4.7 Trustpilot rating
- Secured loans available
- Cosigners considered
- Next-day funding available
- Easy to contact
cons
- Does not accept self-employment income
- Minimum 3-year loan term
- Relatively low maximum loan amount ($25,000)
- Origination fees up to 6%
- Not available nationwide
- No mobile app
- No discounts for autopay or direct pay
Fees
$15 late fee except where the state has a different limit (ie. NM), return payment Fees - $20 except where state has a different limit (ie – NM), and no prepayment penalty
Eligibility
Unavailable in CO, CT, HI, IA, ME, MD, MA, NV, NJ, NY, SD, VT, WA, and WV
Min. income
Sufficient disposal income
Time to get funds
1-7 business days depending on loan security type
Loan uses
Credit card refinancing, debt consolidation, emergencies, major purchases, medical and dental expenses, moving expenses, special occasions, unexpected expenses, vacation and travel
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
- Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Reprise may be an excellent option if you need a loan with bad credit. The lender says it will consider applicants with FICO scores as low as 560, and offers secured loans as well as some cosigned loans to help you qualify. Loan funds can be available the next business day once you’re approved. Plus, the company has a 4.7 Trustpilot rating — indicating generally satisfied customers.
But Reprise is not for everyone. Available loan amounts are relatively low at $25,000, and the minimum repayment term is relatively high at three years. The lender also charges origination fees, does not offer discounts, does not consider income from self-employment, and is not available nationwide.
pros
- Loans for bad credit
- 4.7 Trustpilot rating
- Secured loans available
- Cosigners considered
- Next-day funding available
- Easy to contact
cons
- Does not accept self-employment income
- Minimum 3-year loan term
- Relatively low maximum loan amount ($25,000)
- Origination fees up to 6%
- Not available nationwide
- No mobile app
- No discounts for autopay or direct pay
Fees
$15 late fee except where the state has a different limit (ie. NM), return payment Fees - $20 except where state has a different limit (ie – NM), and no prepayment penalty
Eligibility
Unavailable in CO, CT, HI, IA, ME, MD, MA, NV, NJ, NY, SD, VT, WA, and WV
Min. income
Sufficient disposal income
Time to get funds
1-7 business days depending on loan security type
Loan uses
Credit card refinancing, debt consolidation, emergencies, major purchases, medical and dental expenses, moving expenses, special occasions, unexpected expenses, vacation and travel
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
How to avoid predatory lending
If you feel pressured to make a decision about a loan right now, that’s a red flag. The same goes for “guaranteed low rates” that are good as long as you sign up today.
Check out the rates and terms of multiple lenders before you commit to a loan, and make sure you’re comparing APRs. If one lender has a rate that seems out of line with the others and too good to be true, it probably is. On the other hand, lenders that charge fees instead of interest rates could have very high APRs. Use a payday loan calculator to find the APR on a loan that charges fees instead of interest.
Also, look for ratings or reviews from the lender’s customers on sites like Trustpilot and the Better Business Bureau (BBB).
Important:
Carefully read all loan documents the lender provides before you sign them.
FAQ
Are online loans safe?
Open
There are numerous safe, legitimate online lenders for personal loans, but there are some scams out there too. Legitimate lenders will typically have their own domain name (i.e., www.wellsfargo.com) and display a padlock next to it to indicate that it’s secure.
What is the easiest loan to get online?
Open
The easiest online loan to get would probably be a payday loan. Payday lenders often don’t require a credit check or collateral—just proof of employment, a Social Security number, a phone number and an active bank account.
Although these loans are often for small amounts (usually below $500), they often charge extremely high interest rates — over 100% APR, in most cases.
What can you use a personal loan for?
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You can use a personal loan for most expenses, including debt consolidation, home improvement, vacations, moving expenses, medical bills, and more. However, there are certain purposes that lenders won’t approve a personal loan for, including secondary education, a down payment on a house, business purposes, and investing.
How to get a fast loan online
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To get an online loan safely and quickly, research online lenders that offer emergency personal loans. Personal loans come with lower rates and longer repayment terms than other types of fast loans, like payday and title loans, which can be risky. You can get an online personal loan as soon as the next business day, depending on the lender.
What are some legit online payday loans?
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Online payday loans come at a high cost, with APRs reaching nearly 400%, and most payday loans are renewed or rolled over, according to the Consumer Financial Protection Bureau. A payday loan can trap you in a cycle of debt. If you need a fast online loan and you have bad credit, you’re better off applying for an online installment loan or payday loan alternative.
Where can I get a loan online?
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You can get a personal loan online from an online lender or a bank or credit union that offers online loans. You can also get an online installment loan from a no-credit-check lender or apply for a cash advance on your paycheck from a cash advance app.
Meet the expert:
Jennifer Sisson
Jennifer Sisson has over five years of finance experience and is an expert in investing, mortgages, real estate, and budgeting. Her work has been featured by Business Insider and FinanceBuzz.
