How to Get a Personal Loan with Bad Credit

To get a personal loan with bad credit, you need to start by finding the right lender because most personal loan companies do not offer loans to people with credit scores below 640. After identifying banks and credit unions that offer personal loans for bad credit, compare the APRs and fees to find the best deal and apply online. The lender may make a decision the same day or up to 7 business days after you apply for the loan. Receiving the money may take a few more business days after approval.

4 Steps to Get a Personal Loan with Bad Credit

1. Check your credit score and see if you’re pre-qualified.
2. Compare offers and pick a loan.
3. Apply for the loan.
4. Wait for a decision and funding.

Following these simple steps can make this process much easier. Below is an in-depth breakdown of each step.

How to Get a Personal Loan with Bad Credit in 4 Steps

Step 1: Check your credit score and see if you’re pre-qualified.

Checking your credit score can help you understand which lenders may approve you and what loans you may qualify for. You can check your credit score for free on WalletHub.

In addition, pre-qualification is a good way to see which lenders may approve you and what rates may be available to you. To pre-qualify, you’ll need to give the lender some basic information like your name, address, date of birth and Social Security number. You can pre-qualify with multiple lenders for free on WalletHub. This won’t affect your credit score.

Step 2: Compare offers and pick a loan.

There are a lot of things you need to consider when comparing loan offers, like APRs, fees, loan amounts, payoff periods and lender-specific requirements. You’ll need to pick a loan that meets your needs but is also within your reach.

Step 3: Apply for the loan.

Depending on the lender, you can apply for a loan online through the lender’s website, over the phone with customer service or in person at a branch. Applying online is the fastest way to get a decision. You’ll need to give the lender some personal and financial information.

The personal information you’ll need to give includes your name, address and date of birth, among other things. The financial information you’ll need to provide includes things like your income, employment status and debt load.

Step 4: Wait for a decision and funding.

Lenders either make decisions instantly or they take a few days. If you’re approved, you should typically get your funds within 7 business days of applying. If you’re denied, it’s ideal to wait at least six months before submitting another application. This gives your credit score enough time to recover from the hard pull of the first application.

Best Places to Get a Personal Loan with Bad Credit

The best place to get a personal loan with bad credit is OppLoans. The company offers a wide range of loan amounts, long payoff periods and quick funding. To apply for a loan with OppLoans, you’ll need to be at least 18 years old, be a U.S. citizen or permanent resident, have a Social Security number and live in one of the 40 states where the company operates.

There are other companies that offer personal loans for people with bad credit as well. These companies offer loan amounts up to $50,000, APRs as low as 6% and loan lengths up to 60 months.

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Of the companies above, LendingPoint is the only company with a credit score requirement. You will need a credit score of at least 600 to qualify.

If you’re having trouble getting a loan with bad credit, there are other options available to you. For example, getting a no credit check personal loan or a secured credit card can help you improve your credit.

No credit check personal loans can be expensive and may only offer a few hundred to a few thousand dollars. Secured credit cards offer high approval odds, but the security deposit you use to open the account will act as your credit limit.

Tips to Get a Personal Loan with Bad Credit

• Consider multiple types of lenders. You can get a personal loan from a bank, credit union or online lender. Each has its own advantages and disadvantages, so it’s important to compare offers from all of them before deciding on a loan.
• Raise your credit and/or income. If your personal loan isn’t urgent, taking time to improve your credit score or make a little extra money can help you qualify for better loans with lower rates.
• Get pre-qualified. Pre-qualification gives you an idea of your approval odds and potential rates before you apply. Applying for a loan you’re pre-qualified for may also help speed up the process since you’re very likely to get approved.
• Apply online. Online applications generally receive the fastest decisions. And lenders that conduct all of their applications online are especially streamlined.

Upstart Disclosure: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).

The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 19.60% and a 6.90% origination fee of $690, for an APR of 23.22%. In this example, the borrower will receive $9310 and will make 60 monthly payments of $264. APR is calculated based on 5-year rates offered in March 2025. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.