Best Personal Loans for Bad Credit in 2025: Compare Top Lenders

How We Chose the Top Lenders

To create this comparison, we analyzed lenders that specialize in personal loans for borrowers with bad credit or thin credit files. We looked at data from LendingTree, CNBC Select, Experian, and Bankrate, as well as the lenders' own disclosures. Our goal was to identify lenders with transparent terms, reasonable rate ranges, and flexible eligibility criteria.

We focused on lenders that publicly advertise their APR ranges, loan amounts, terms, and fees. We also prioritized lenders that offer prequalification with no impact on your credit score, which lets you shop around without hurting your credit.

• Clear rate and fee disclosures
• Minimum credit score requirements that accommodate bad credit (often no minimum or 580–600)
• Loan amounts that cover common borrowing needs
• Funding speed and availability
• Use of non-traditional factors, such as education and employment history, in approval decisions

Sources: LendingTree, CNBC Select, Experian

Key Criteria to Compare Bad Credit Lenders

When comparing personal loans for bad credit, you should evaluate several factors beyond the interest rate. The following criteria are essential for making an apples-to-apples comparison.

• APR range: The annual percentage rate includes interest and certain fees, giving you the true cost of borrowing. Ranges vary by lender and your credit profile.
• Loan amount range: How much you can borrow, from minimum to maximum.
• Origination fee: A one-time fee deducted from your loan proceeds. Some lenders charge up to 10%, which can significantly increase your effective cost.
• Loan term: The repayment period, typically ranging from 24 to 84 months. Longer terms mean lower monthly payments but more interest over time.
• Minimum credit score: Some lenders have no minimum, while others require 580 or 600. Even with no minimum, your rate will depend on your credit history.
• Time to funding: How quickly you can receive the funds after approval, which is important for urgent needs.

Sources: LendingTree, CNBC Select

Top Bad Credit Lenders: Overview

We selected four lenders that consistently appear in the top rankings for bad-credit personal loans: Upstart, Avant, OneMain Financial, and Upgrade. Each has distinct features that may appeal to different borrowers. However, the available data for Upgrade is less comprehensive than for the others, so we focus on what is well-supported.

• Upstart: Known for its AI-based approval model that considers education and employment history, not just credit score. No minimum credit score requirement.
• Avant: A straightforward online lender with a moderate minimum credit score of 580 and a wide range of loan terms.
• OneMain Financial: Offers both online and in-person service, with no minimum credit score and fast funding—even as soon as one hour after closing.
• Upgrade: An online lender with competitive starting rates and long loan terms (up to 84 months) and an optional credit-builder tool.

Sources: LendingTree, CNBC Select, Experian, NerdWallet, Upstart

Comparison Table: APRs, Fees, Loan Amounts, and More

The table below compares the key features of three lenders with reliable data: Upstart, Avant, and OneMain Financial. Rates and terms are as of August 2026 and may vary based on your state and creditworthiness.

Sources: LendingTree, CNBC Select, Experian, NerdWallet, Upstart

Detailed Lender Reviews

Here's a deeper look at each lender, including what makes them stand out and who might benefit most. We focus on Upstart, Avant, and OneMain Financial, for which we have reliable data. Upgrade is omitted from detailed reviews because its available information is limited in our sources.

• Upstart: With an APR range of 6.20%–35.99% and loan amounts up to $75,000, Upstart is a top pick for borrowers with limited credit history. It uses non-traditional factors like your education and employment history in its AI-based approval model, which can help you get approved even with no credit score. Funding can arrive in as little as one business day.
• Avant: Avant offers a lower maximum APR (9.95%–35.99%) and loan amounts up to $35,000. It requires a minimum credit score of 580, but it may be a good option for those with a moderate credit score who want a manageable origination fee (up to 9.99%) and quick funding—often by the next business day.
• OneMain Financial: If you prefer a face-to-face experience, OneMain Financial has physical branches. It has no minimum credit score requirement, but its APR starts higher at 11.99% and goes up to 35.99%. Loan amounts range from $1,500 to $30,000. OneMain charges an origination fee of $25–$500 or 1%–10%. The standout feature is speed: you may get funds as soon as one hour after closing.

Sources: LendingTree, CNBC Select

How to Apply for Each Lender

Applying for a personal loan with Upstart, Avant, or OneMain Financial involves a similar overall process, but each lender has its own specific steps and requirements. Here is a general guide that applies to all three, with lender-specific notes where relevant.

1. Check your credit score and review your credit report for errors. Even if a lender has no minimum, your score affects your rate.
2. Use each lender's prequalification tool if available. Prequalification usually involves a soft credit check, which won't affect your score.
3. Compare your personalized offers: note the APR, loan amount, term, origination fee, and monthly payment.
4. Choose the lender that best fits your needs and complete the full application, which will require a hard credit check.
5. Provide necessary documentation, such as income verification and identity details.
6. Review the loan agreement carefully, including fees and repayment terms, before signing.

Sources: LendingTree, CNBC Select

Factors to Consider Beyond the Rate

While the APR is a crucial factor, other aspects can significantly affect your experience and the total cost of the loan. Understanding these can help you make a more informed decision.

• Fees: Beyond the origination fee, check for prepayment penalties, late fees, or check processing fees.
• Customer service: Some borrowers prefer a lender with physical branches, like OneMain Financial, which can be helpful if you value in-person support.
• Funding speed: If you need money quickly, OneMain's ability to fund as soon as one hour after closing may be a deciding factor. Upstart and Avant typically fund within one business day.
• Flexibility in loan terms: Longer terms can reduce monthly payments but increase total interest. For example, Upstart offers 36 or 60 months, while Avant and OneMain offer 24 to 60 months.
• State availability: Not all lenders operate in every state. Check each lender's website to confirm availability in your state.

Sources: LendingTree, CNBC Select

Alternatives to Consider

If these lenders don't meet your needs, you have other options for borrowing with bad credit. Credit unions often offer lower rates to their members, and some online lenders specialize in bad-credit loans with no origination fee. Additionally, you might consider a secured loan, which uses collateral and could offer better rates. Always compare multiple offers and understand the full cost before committing.

• Credit union personal loans: Often have more favorable rates and terms for members with poor credit.
• Secured loans: Using collateral, such as a vehicle or savings account, can lower your risk to the lender and may result in a lower APR.
• Borrowing from family or friends: This may be an option, but it should be formalized with a written agreement.
• Debt management programs: If you're struggling with debt, a nonprofit credit counselor can help you explore options.

Sources: Bankrate