Mobile app to manage loan payments. Direct payment to creditors with debt consolidation loans. Long repayment terms on home improvement loans. Origination fee. No option to choose initial payment date. Minimum credit score: Minimum credit history: 1 account and 2 years. Minimum annual income: None.

Why it made the list: Upstart is known for its advanced underwriting capabilities. The lender looks beyond traditional borrower information like credit and income and reviews alternative data, like education and work history, to qualify borrowers.

Accepts borrowers new to credit. Fast funding. Option to change your payment date. Option to pre-qualify with a soft credit check.

Seven-day customer service availability. May charge origination fee. No joint, co-signed or secured loans. No mobile app to manage loan. Only two repayment term options. Minimum credit score: in most states. Why it made the list: Universal Credit borrowers have access to a credit report summary, credit score simulator and personalized recommendations for borrowers to build credit.

The lender is owned by Upgrade, but bad-credit borrowers may be more likely to get approved with Universal Credit. Offers multiple rate discounts. Free credit score access. Charges origination fee. Two repayment term options. Minimum income requirement: None. Why it made the list: Avant can approve a loan application within one business day and typically funds loans the day after approval.

Mobile app to manage loan. Wide range of repayment term options. May charge an origination fee. No co-signed, joint or secured loans. No rate discounts.

Why it made the list: Best Egg accepts two types of collateral on its secured loans: a vehicle or a or a home fixture, such as built-in cabinets and shelving or bathroom lighting. Wide range of loan amounts.

Secured loan options. No late fees. Minimum credit history: 2 years, 1 account. A bad credit personal loan is for borrowers with low credit scores or thin credit histories. Like all personal loans, bad credit loans have fixed rates and are repaid in fixed monthly installments over a period of one to seven years.

A bad-credit loan can help you get through an emergency, consolidate other high-interest debt or make necessary home repairs, but consumers with poor credit frequently get the highest personal loan APRs and fees.

Review the pros and cons of bad-credit loans, and compare them with other ways to borrow money. Bad credit loan pros. Bad credit loan cons. Fixed, predictable payments. On-time loan payments build credit. Rates may be lower than credit cards and other high-interest loans.

Rates are often high. Consumers with the lowest credit scores may not qualify. Collateral or a co-signer may be required. Predatory lenders may seek out bad-credit borrowers. Some lenders can approve a loan application instantly, while others may take a day or two.

Once approved, funding can happen the same day or take a couple of days. Payment history is the biggest factor that determines your credit score, so paying on time can give you a big boost.

Though a low credit score often results in high personal loan rates, your rate may still be lower on a personal loan than some credit cards and other high-interest loans. Minimum credit scores among bad-credit lenders are often between and If you fail to qualify for a personal loan, the lender may suggest you add a co-signer or get a secured loan.

More on spotting a personal loan scam below. Qualification requirements and cost are the most important features to consider when choosing a personal loan. Here are some tips to compare personal loans for bad credit.

Bad-credit lenders consider many factors on a loan application, including:. Debt-to-income ratio : This is the percentage of your monthly income that goes to debt payments. Lenders typically like to see that you can cover your monthly bills, including any other loan or credit card payments, and have money left over after your new personal loan payment.

Co-applicant and collateral: If the lender offers a co-signed or secured loan, the person or item you add to the application becomes a factor in deciding whether you qualify. Many bad-credit online lenders charge an origination fee and it is included in the APR.

Review your budget to determine what an affordable monthly payment would be. Online: Some online lenders offer personal loans specifically for bad-credit borrowers.

These lenders may consider information beyond your credit and income to qualify you, though those are still major factors in a loan decision. Credit unions: Credit unions rely more on traditional information like credit and income but may also consider your history as a member.

A member in good standing with the credit union may qualify for a personal loan despite a low credit score. The average pre-qualified personal loan rate for a bad-credit borrower was Here are the average personal loan rates for each credit score range.

Borrower credit rating. Score range. Estimated APR. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below — are unlikely to qualify.

The fee is included in your APR, but a lender may take it before sending you the funds, effectively reducing your loan amount, or add it to your monthly payment. Lenders also usually charge late payment and non-sufficient funds fees. Here are the steps to get a bad credit personal loan :.

Review your credit reports from the three major credit bureaus to ensure the information is accurate and up to date. Fixing errors on your report before applying may improve your chances of qualifying. You can get your credit reports for free through NerdWallet or at AnnualCreditReport.

Many lenders let you pre-qualify online to preview potential loan offers. You provide some information about yourself, like your income, desired loan amount and loan purpose, and the lender does a soft credit pull to determine your eligibility.

No two lenders have the same borrowing requirements, so it pays to pre-qualify with multiple lenders. Most lenders have online personal loan applications , but your local bank or credit union may require an in-person application. The lender will do a hard credit check when you apply, causing your score to temporarily drop.

The most common fee to look for with a personal loan is an origination fee. If you need cash fast, consider a lender that offers fast funding.

Some lenders can fund a loan the next day, while others could take up to a week after approval. Online lenders may disclose the timeline in an FAQ or blog section of their websites. Time to approve. Time to fund. Origination fee. Other loan types. As fast as 5 seconds.

Within a few minutes. Same or next day. OneMain Financial. Usually instant. Joint, secured. Rocket Loans. Within a day. Universal Credit. Up to a few days. Best Egg. We compared more than a dozen lenders to choose the best personal loans for emergencies.

Among the factors we considered are:. Minimum credit score requirement. Approval and funding time. The ability to add a co-applicant or collateral. Star rating. Annual percentage rate range. Loan amount. Check your credit. You can view your report for free on NerdWallet or at AnnualCreditReport.

Determine what you can afford. Review your monthly budget to determine how much you can afford to pay toward the loan each month. Pre-qualify and compare offers. Gather documents and apply.

Once you have a loan offer with affordable monthly payments, find the documents you need to apply for a personal loan. This can include W-2s, pay stubs, a government-issued ID and proof of address.

You could get an instant approval decision, but it often takes a day or two. Here are a few tips to get an emergency loan with bad credit:. Add a co-signer or co-borrower: A co-signer or co-borrower can help your chances of qualifying or getting a good rate. A co-borrower has equal access to the funds, while a co-signer does not.

Add collateral: Some lenders offer secured personal loans and consider the item used as collateral usually a bank account or vehicle when assessing an application. Adding collateral can improve your chances of qualifying, but the lender can take the collateral if you miss too many payments. Add up income streams: Your monthly income is another important factor on an application.

Most lenders want to see that you have enough to cover regular expenses, make the new loan payment and have a little leftover. Many lenders consider things like Social Security, alimony or child support as part of your income. Online lenders usually let you check your rate before applying and offer a fast application process.

But predatory lenders will try to exploit your emergency. Many banks prefer borrowers with good or excellent credit scores or higher , but there are some exceptions. Some large banks, like Wells Fargo , U.

Bank and Bank of America offer small loans that can cover emergencies. You must be an existing customer to get this type of loan, but the fees are much lower than what payday lenders charge. Credit union members may have the most affordable emergency loan option.

Some credit unions offer payday alternative loans , which are small-dollar loans with low rates that are repaid over six months to a year. Examples of emergencies you can pay for with a personal loan include:. Medical or dental bills. Home repairs. Car repairs.

Bills after a loss of income. Unexpected travel expenses. These emergency loans can be fast and easy to get, but they could do long-term financial damage. Some no-credit-check installment loans share similarities with payday and auto title loans. Repayment terms on these loans may be longer than you need or a lender may encourage you to refinance the loan multiple times, resulting in exorbitant interest costs over the lifetime of the loan.

Pawn loans require you to hand over a valuable item to a pawnshop as collateral for a small loan. You have to repay the loan, with interest, or the pawnshop will keep your item.

If repayment takes too big a bite out of your bank account, you could end up borrowing from the pawnshop again. With car title loans , a lender assesses the value of your vehicle and lends you a percentage of that amount.

If you accept, the lender holds the car title and you receive your loan. Payday loans are high-cost, short-term loans that are risky — even in an emergency.

Cheaper alternatives to borrowing aren't always fast or convenient, and sometimes they require asking for help. But NerdWallet strongly recommends exhausting alternatives first, even in an emergency. We earn a commission from affiliate partners on many offers and links. Read more about Select on CNBC and on NBC News , and click here to read our full advertiser disclosure.

Best for people without a credit history: Upstart Personal Loans Best for debt consolidation: Happy Money Best for flexible terms: OneMain Financial Personal Loans Best for quick funding: Avant Personal Loans.

Learn More. Annual Percentage Rate APR 6. Debt consolidation, credit card refinancing, wedding, moving or medical. Monday through Friday. View More. Annual Percentage Rate APR Pros Peer-to-peer lending platform makes it easy to check multiple offers Loan approval comes with Happy Money membership and customer support No early payoff fees No late fees Fast and easy application U.

Debt consolidation, major expenses, emergency costs. Cons High origination fee High interest rates No autopay APR discount No co-signers. Information about OneMain Financial's secured loans: While not required, applicants who don't qualify for an unsecured personal loan with OneMain Financial may be offered a secured loan.

OneMain Financial link provided by Even Financial. Annual Percentage Rate APR 9. Debt consolidation, major expenses, emergency costs, home improvements.

Pros Lends to applicants with scores lower credit scores No early payoff fees Can pre-qualify with a soft credit check no hard inquiry Quick funding often by the next day Late payment grace period of 10 days.

Cons Origination fee Potentially high interest caps at Shop around for the best rate. Avoid hard inquiries by knowing your credit score before you submit a formal application so you know what you might qualify for.

Many lenders will allow you to submit a prequalification form. Or consider using a lending platform such as Upstart or LendingTree to view multiple offers at once.

Decide on the best offer. Choose the loan with the best monthly payment and interest rate for your budget. Be sure to look at how much the loan will cost you over the full length of the term and decide if the cost is worth it.

Submit a formal application. Have your social security number on hand, as well as supporting documents such as bank statements and paystubs. Wait for final approval. This could take just a few minutes, an hour or up to 10 days. To facilitate a speedier approval, apply during normal business hours and submit the required documents right away.

Get your funds. Once your loan is approved, you'll be asked to input your bank account information so the funds are deposited into your account. You may also be able to request a paper check from your lender, or in the case of a consolidation loan, you may be able to have funds sent right to your creditors.

Read more. The best personal loans if you have bad credit but still need access to cash. When narrowing down and ranking the best personal loans, we focused on the following features: Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan.

With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan. No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.

Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.

Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check.

Some lenders which we noted offer the ability to pay your creditors directly. Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.

Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

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Some lenders cater to applicants with lower credit scores in the poor range (below ) to help them borrow money for emergency expenses, a medical bill, debt Bad credit lenders are more flexible with their eligibility criteria. Can help boost your credit score with on-time payments. Borrowers may MoneyMutual is a great option for those who are looking for personal loans with bad credit. They provide a simple and secure way to apply for

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