Best Online Loans for Bad or Poor Credit [Personanl and Payday]

Finding a reliable lender with favorable repayment terms is the hardest part of getting a bad credit loan. So that you can save a few hours and choose the financial institution with the best offers in the market, we have compiled a list of 9 companies that provide the best bad credit loans.

In this list, we have included organizations that provide personal, payday, and student loans. Your task is to read all the descriptions and choose the type of loan and company that suits you best. If you read this article, you won’t ask yourself how to get a loan with bad credit again.


Company Loan Types Offered Loan Amount Range APR Range Origination Fee Late Payment Fee Additional Information
Upgrade Personal & Payday Loans $1,000 – $50,000 7.96% – 35.97% 2.9% – 8% $10 Fast funding, credit monitoring, minimum credit score 560
Upstart Personal & Payday Loans $1,000 – $50,000 5.42% – 35.99% 0% – 10% 5% or $15 No minimum credit score, quick turnaround
LendingClub Personal & Payday Loans $1,000 – $40,000 7.04% – 35.89% 1% – 6% 5% or $15 Longer funding time, suitable for co-signers
SoFi Personal & Payday Loans $5,000 – $100,000 7.99% – 23.43% None None High loan amounts, low APR, no fees
Universal Credit Personal & Payday Loans $1,000 – $50,000 11.69% – 35.93% 5.25% – 8.99% $10 Debt consolidation focus, higher origination fees
College Ave Undergraduate & Refinancing Loans $1,000 – $150,000 2.99% – 14.96% None $25 No origination or prepayment fees, flexible repayment
Ascent Funding Undergraduate & Outcomes-Based Loans $2,000 – $200,000 9.05% – 16.43% N/A N/A Suitable for international students, credit not the focus
Edly Income-Based Loans Up to $20,000/semester Up to 23% None Variable based on income Payment depends on future earnings, deferment option




Upgrade is one of the most well-known online lenders that operates in almost every state except Iowa, West Virginia, and Washington. This financial institution provides personal loans to borrowers with a credit score greater than 560 points.

You will be able to borrow money from Upgrade on the following terms:

  • The company provides loans ranging from $1,000 to $50,000 for 2-7 years.
  • Its APR range is 7.96% to 35.97% (you can sign up for automatic payments and get 0.5% off the APR).
  • An origination fee of 2.9% and 8% of the loan will be deducted from your loan amount.
  •  If you miss monthly payments for over 15 days, you must pay a $10 late penalty.

Among the main advantages of this option is that users note the ability to get a loan quickly, as the company promises to transfer funds to their account within one business day. In addition, credit monitoring programs are available in the Upgrade app to help you improve your VantageScore and educational courses.

To qualify for a bad credit loan in Upgrade, you must have at least $1,000 in free cash flow each month and a DTI of up to 40%. Remember, your score must be at least 560 points to qualify for an unsecured loan.

The main disadvantage of Upgrade is the high origination fees, up to 8%. However, in all other aspects, it is the best option for those who want to get an unsecured small personal loan in one business day.


Upstart is one of the few online lenders willing to lend money to borrowers without a credit history. The company does not set a minimum credit score as a primary requirement but looks at other metrics when deciding on a loan.

If you need money for any legitimate personal purpose, you can get it here under the following conditions:

  • The loan amount is from $1,000 to $50,000.
  • APR range is from 5.42 to 35.99%.
  •  The repayment period is 3 or 5 years.
  • The origination fee is 0% to 10%, and the late fee is 5% of the monthly payment or $15.

The main advantage of this company is its availability in all states except Iowa and its fast turnaround of 1 day for all loans. In addition, it is essential to note the availability of loans to all borrowers, as Upstart conducts soft credit checks and lends funds even to those with no credit history. There are also free educational programs on the company’s website for those who want to learn how to manage their finances better.

From the disadvantages of this option, we can note the following:

  •  Borrowers can choose only one of two loan repayment terms.
  •  The company charges a hefty origination fee of up to 10%.
  • Upstart doesn’t have an app, just a website.
  • To borrow money from this financial institution, you must be formally employed (a full-time job or an offer starting in 6 months or sooner) and have an annual income of over $12,000.

Upstart is the best option for those just starting to build their credit history.


LendingClub is another personal bad credit loan lender. People with poor credit scores above 600 can borrow money here under the following conditions:

  • The maximum loan amount is $40,000, and the minimum is $1,000.
  • You can borrow money for a period of 3 or 5 years.
  • The company has a relatively low origination fee of 1% – 6%.
  • For each late monthly payment, you will need to pay a penalty of 5% of the payment amount (minimum $15).
  • The APR range for personal loans is 7.04% – 35.89%.

We can highlight the low origination fee of 1% – 6% from the company’s advantages. On the other hand, the main disadvantage of this option is the long time it takes to receive funds, from 4 to 11 working days.

In general, you should only consider LendingClub if you can’t get a loan from the financial institutions described above. They have better offers for people with the same credit rating and a faster repayment period. LendingClub is also suitable for borrowers who want to borrow money with a co-signer.


SoFi is an online lender with some of the best terms on the market. So, even with bad or poor credit, you can apply on the company’s website to prequalify and find out the available terms.

What you need to know about loans in SoFi:

  • The minimum amount you can get is $5,000, and the maximum is $100,000.
  • This company has a lower APR than its competitors, ranging from 7.99% to 23.43%.
  • SoFi does not ask for origination or late fees.
  • You will receive a discount on your APR if you connect automatic monthly payments.
  • The repayment period can be from 2 to 7 years.

Why do borrowers love SoFi so much? Because you can get an outstanding bad credit loan of up to $100,000 at a low APR of up to 23.43% on this app. In addition, users praise this financial institution very much for its lack of fees, availability of special programs for borrowers in need, and the ability to borrow money with any credit rating.

The only drawback to this option is the high minimum loan amount of $5,000. Otherwise, SoFi is an excellent choice for someone who wants to borrow money quickly and get it into their account on the same business day.

OneMain Financial

OneMain Financial is another bad credit loan lender that works with borrowers with low credit scores and income. It does not conduct standard hard credit checks but instead evaluates many other indicators to determine the reliability of borrowers.

See if the company’s terms are best for you:

  • The maximum loan amount you can get from OneMain Financial is $20,000.
  • You can get the money online in 1-2 business days or offline in 44 states at one of the company’s branches immediately after signing the agreement.
  • The company lends money to borrowers for 2 to 5 years.
  • APR on personal loans starts at 18.00% and goes up to 35.99%.
  • The origination fee equals 1% to 10% of your loan amount.
  • Late payment fee ranges from $5 to $30.

The main advantage of this company is that it allows you to get a cash loan in a few hours if you go to one of its branches in 44 states. OneMain Financial also works with borrowers who have poor credit and low income.

However, it is essential to note that its APR rate is relatively high compared to its competitors. So, if you have more than 600 FICO points, you should try to prequalify on the websites of other lenders to see what terms and conditions are available for you.

Universal Credit

Universal Credit is one of the lenders that specialize in debt consolidation loans. You can take advantage of the offers of this company if your credit score is above 560 points and you are suitable for its terms and conditions:

  • The minimum loan amount is $1,000, and the maximum is $50,000.
  •  The exact APR will depend on your credit history, income level, and other indicators, ranging from 11.69% to 35.93%.
  • The late fee is $10, and the origination fee is from 5.25% to 8.99%.
  • The company has two loan repayment options: 3 and 5 years.
  • If you choose a debt consolidation loan and agree to have Universal Credit pay your debts directly, you can get a 1% to 5% APR discount. You can also get a 0.5% APR discount for connecting automatic monthly payments.

The main disadvantage of this option is a very high origination fee of 5.25% to 8.99%. That said, it is one of the few financial institutions that provide bad credit loans in Iowa, which is a big plus for Universal Credit. In addition, users praise the company for its speed, as most of them get the borrowed funds into their accounts within one day.

To be eligible for a Universal Credit personal loan, you must be at least 18 years old, have a minimum of 2 years of credit history, and have a debt-to-income ratio of less than 75%. The company has no minimum income or formal employment requirements, so this option is best for people without full-time jobs.

College Ave Private Student Loan

College Ave Student Loans is one of the best companies providing loans with virtually no fees. Here, you can choose from various repayment plans available to anyone whose credit score is above 600 or who has a co-signer with good or excellent credit.

What services does the company provide?

Undergraduate student loans

You can borrow with the company from $1,000 for 5 to 15 years at a fixed APR of 3.99% to 14.96% or a variable APR of 2.99% to 14.86%. It is important to note that you will not have to pay origination or prepayment fees, only late penalties of $25 if you miss monthly payments.

College Ave Student Loans allows you to choose any convenient way to repay your borrowed money. For example, you can pay back your loan in fixed payments from the first month you receive your money, or you can make interest-only payments while attending college or university. Borrowers also have the option of flat fees ($25 each month while you’re enrolled and full payments after graduation) and deferred ones (you’ll repay the loan only after graduation).

Refinancing loans

You can apply to the company to refinance your old student loan from $5,000 to $150,000. This offer is available for undergraduate or graduate loans.

In this case, the company’s main advantage is that there are 11 repayment term options, among which you can choose the one that suits you best. Usually, the term in which you have to repay the borrowed amount is up to 15 years.

Refinance loans have more favorable interest rates than the previous option – fixed rates range from 4.49% to 7.99% APR, while variable rates range from 3.69% to 7.99%. All other terms and conditions, including fees, are the same as the student loans described above.

Users of College Ave Student Loans say that the company’s main advantages are finding precise terms after a soft credit check and choosing one of 11 repayment options. In addition, students with poor credit or no credit history respond positively to the opportunity to get a loan from this financial institution with a co-signer, which is not available at all private companies.

However, it is essential to note that College Ave Student Loans are unsuitable for those who want to get a loan before starting school. However, it may be the best option for undergraduate or graduate students.

Ascent Independent Student Loan

Ascent Funding is one of the few financial institutions where you can get a student loan without a co-signer, even if you do not have a good credit history. Also, it is the best option for students from other countries, as to be eligible, one doesn’t need U. S. citizenship.

What terms and conditions does Ascent Funding offer?

  • Undergraduate and graduate students in all 50 states may apply for credit.
  • Credit-based student loans of $2,000 to $200,000 are available to those with good credit history and stable income for 5 to 15 years. Interest rates range from 9.83% to 16.43% (fixed) or 9.05% to 15.32% (variable), with a grace period of nine months after graduation.
  • The outcomes-based loans of $2,000 to $20,000 per academic year are available to full-time college juniors and seniors for terms of 7 to 15 years. The APR range of this offer is 12.73% to 14.01% (fixed) or 11.91% to 13.87% (variable). The grace period will also be nine months.

The main advantage of this company is that you can get a loan without a high credit score and a co-signer, even if you are an international student. However, its main disadvantage is that you must be enrolled at one of the educational institutions that partner with Ascent Funding to take advantage of the offer.

Edly Private Student Loan

Edly is a financial institution where you can get a loan even with a poor credit history and pay it back after graduation from your income. The company focuses not on credit scores but on the potential of its borrowers and the prospect of their post-graduation earnings.

How does it work?

Edly sets floating payments, the amount of which always depends on the amount of your income. The more you earn, the more payments towards your loan will be. If you cannot repay the loan because your income has dropped below $30,000 for the year, the loan will go into deferment for up to 12 months until you can repay it again.

The main disadvantage of this option is that it is not available to all students but only to those who are enrolled in potentially lucrative majors and have high academic performance.

However, this company also has many advantages, including the absence of any up-front fees, the ability to get a loan even with a poor credit history without a co-signer, and the availability of a so-named grace period of up to 12 months for those with low income.

The terms and conditions for loans at Edly are as follows:

  • Loan amounts cannot exceed $20,000 per semester.
  • You can repay the borrowed funds over 2-10 years or 5-20 years if you borrow the entire amount for tuition at once (up to $200,000).
  • The exact APR will depend on your situation, but it will be, at most, 23%.

This is an excellent option for those confident about their future profession. If you cannot repay a loan while studying because you want to devote yourself fully to your studies and achieve the best results in this field, investors with Edly may be your best choice.

How to Avoid Bad Credit Loan Scams

Because bad credit loans are intended for the least well-off people, many scammers take advantage of this and present themselves as financial institutions. They copy the names of actual companies and the design of their websites, offer to lend money even over the phone and try to find your bank account information by any means possible.

To avoid falling into the hands of scammers, remember these basic flags that indicate someone is trying to scam you:

The company offers loans with guaranteed approval before you apply and provides your personal information. Remember, no reputable lender can secure a loan for you, as it is crucial for them to ensure that you are a good borrower first.

  • Scammers will usually ask you to pay fees upfront. For example, they may ask you to pay an application fee, which genuine financial institutions do not.
  • If a company calls you on the phone and offers you a loan, you should not accept it, as it could be a scammer. You cannot verify who is calling you, so never give out personal information over the phone.
  • To avoid scammers, turn to lenders with many reviews on independent platforms.

What to Consider When Taking Out a Loan With Bad Credit

Before you take out a loan, you should consider the following points:

  • First, will you be able to pay your monthly bills on time? If you aren’t pressed for time, you might try saving the same amount from your salary for a month or two to see if you can afford it.
  • You take out a loan for several years. Are you sure you can pay it off during that time? If you don’t have a Plan B and C in case you lose your job or temporarily lose your ability to repay the loan, you may find yourself in a situation where fees and penalties will drive you into debt.
  • Will the amount you can borrow be enough for your purpose? Carefully calculate how much money you need so you don’t seek another loan.
  • What will happen to your credit score after you take out another loan? Remember that you should always try to keep your score as high as possible so banks can lend you money on good terms in an emergency.

FAQ on Bad Credit Loans

You can use various apps that connect investors and borrowers if you have a bad credit score. They usually do not conduct credit checks and help 95% of applicants to get money by taking installment payday loans. However, remember that the lower your score, the worse the loan terms will be.

You can get a loan with any FICO score because many financial institutions do not conduct credit checks. However, remember that it will most likely be a payday loan with a very high APR and a short repayment period or a secured loan requiring you to pledge property as collateral.

Lenders typically allow you to get up to $100,000 if your credit score exceeds at least 560 FICO points. However, the more precise amount depends on whether you provide your property as collateral, your income level, and whether you have formal employment.