Bad Credit Loans 2024: Compare Loans for Bad Credit

Best Bad Credit Loans for April 2024

Important

Please note that loan amounts, interest rates and other loan terms may vary according to your state and credit profile.

Our Commitment to Transparency

At Financer.com, we're committed to helping you with your finances. All our content abides by our Editorial Guidelines. We are open about how we review products and services in our Review Process and how we make money in our Advertiser Disclosure.

Best Bad Credit Loans

Best for Bad Credit: Upstart
Runner Up: PersonalLoans.com
Worth Considering: 5K Funds

As seen in

How to Find the Best Bad Credit Loans

Save money by comparing loans with us first.

Choose your loan amount

Select how much you would like to borrow.

Compare available loan offers

Filter the results based on your criteria and compare the best loan rates.

Choose the best offer

Find the best bad credit loan for your needs.

Complete the application

Click Get Started to fill in your loan application.

What is a Bad Credit Loan?

A bad credit loan is a personal loan designed for borrowers with low credit scores. Most lenders use the FICO model to determine the creditworthiness of a prospective borrower. Scores under 580 are deemed poor.

Since bad credit loans are usually considered risky, they often come with higher interest rates and fees. Besides that, they work just like other personal loans - they have fixed rates and you have to make monthly payments.

Apply for a loan now >

What Credit Score Do I Need For a Bad Credit Loan?

According to the FICO model for credit scoring, you have poor credit if you have a credit score under 580. Bad credit loans are usually targeted at people with credit scores under 580.

Here’s how credit scores are classified based on the model:

Poor: 300 - 579
Fair: 580-669
Good: 670-739
Very Good: 740-799
Exceptional: 800-850

See if you qualify >

How to Compare Bad Credit Loans

Here’s how to compare bad credit loans:

Compare their APRs, total repayment, and monthly repayment.
Pick a deal that provides the best combination of APRs, term lengths, and monthly payments.
Fill out your application and wait for approval.

Compare loan offers >

Pros and Cons of Bad Credit Loans

Pros	Cons
Consistent timely payments can help you improve your credit score.	You can damage your credit further if you default on repayments
Loans can be used across a wide range of purposes.	High-interest rates
With successful applications, funds are usually disbursed quickly.	Risk of repossession on defaulting loans.
Great option for people who can’t qualify for a traditional loan due to their credit status.	Higher interest rates and fees

Compare bad credit loans >

Where to Get a Bad Credit Loan

Here are the best places to get a bad credit loan:

Apply for a loan now >

Types of Bad Credit Loans

Unsecured Loans: As the name suggests, “unsecured” loans do not require collateral. However, they usually come with relatively higher rates (compared to secured loans).
Secured Loans: Secured loans require you to put up an asset (such as a house or car) as collateral for the loan. The collateral “secures” the loan. They usually come with lower interest rates since the lender bears lower risk.
No-credit-check loans: As the name suggests, these are personal loans with no credit check. As you may have probably guessed, these type of loans come with high-interest rates and fees since the lenders bears more risk.

Car Title Loans: A car title loan is a type of secured loan backed by a car. When you take out a car title loan, you surrender your vehicle's title to the lender. The lender can take your vehicle if you default on the loan.
Payday Loans: Payday loan lenders offer small loans, typically $500 or less, that must be repaid by your next payday.
Home Equity Line of Credit: You can take out a Home Equity Loan or HELOC if you own a house and have enough equity in it. A HELOC operates like a secured personal loan except you borrow against the equity in your home

How To Spot a Personal Loan Scam

If you have bad credit then you know how challenging it can be to get a loan. This can make you susceptible to loan scams. Here are some signs you may be dealing with a fraudulent actor:

Lender makes an offer without proper documentation: Fraudulent lenders will usually make you an offer without proper documentation or going through a defined approval process. They may even promise guaranteed approval upfront - before checking your creditworthiness. If a lender makes guarantees before assessing your creditworthiness, you may be dealing with a scammer.
The Lender is not concerned with your credit history: Your creditworthiness - the ability to follow through on your credit obligation - is the most important concern to a legitimate lender. The reason isn't farfetched: it allows a lender to weigh the risk of giving you a loan. This is why borrowers with excellent credit have higher approval odds and get better rates. If a lender isn’t bothered with your credit profile, then you might be dealing with a fraudulent actor.
The lender is not registered in your state: Lenders are required by law to register in each state they operate in. Ensure you confirm the legal status of a lender before you take a loan. You can check with the financial regulation department of your state to confirm.
Asking for a wire transfer or payment to an individual: Legitimate lenders will not request direct payments to an individual. Scammers, however, will demand upfront payments to cover various fees. If a lender insists on advance payment for loan processing, you might be dealing with a scammer. Do not make upfront payments for a loan.