Best Loans for Bad Credit in 2024

Enter your ZIP code to get started

Shield

Free. Simple. Secure.

Happy Money provides the best bad credit loans, earning a MoneyGeek score of 94 out of 100 for its excellent reputation, transparency, broad range of repayment terms and good customer service. Achieve is the runner-up with a MoneyGeek score of 93 out of 100, offering a transparent loan process and flexible loan terms.

Key Takeaways

blueCheck icon

A low credit score, which is often a FICO score below 670 or a VantageScore under 661, isn’t the end of the world. What’s considered bad credit can vary from person to person.

blueCheck icon

Before getting a personal loan for bad credit, check your credit report, compare interest rates and understand the lender’s eligibility requirements.

blueCheck icon

Watch out for lenders that advertise no credit checks or those with upfront fees or vague terms and conditions to avoid bad credit loan scams.

Best Overall Loan for Bad Credit

Company logo for Happy Money
Happy Money
MoneyGeek Score:
94/ of 100

Minimum Credit Score640
APR Range11.72% to 17.99%
Loan Amount Range$5,000 to $40,000
Repayment Terms24 to 60 months
Time to Receive Funds3 to 6 Business Days
PROS
  • No late, prepayment, bounced check or failed ACH fees
  • Option to pay creditors directly
  • Requires a minimum credit score of 640
CONS
  • Offers debt consolidation loans only
  • 1.5% to 5.5% origination fee
  • $40,000 maximum loan amount

Runner-Up Best Loan for Bad Credit

Company logo for Achieve
Achieve
MoneyGeek Score:
93/ of 100

Minimum Credit Score620
APR Range8.99% to 35.99%
Loan Amount Range$5,000 to $50,000
Repayment Terms24 to 60 months
Time to Receive FundsSame Day
PROS
  • No prepayment penalties
  • Has co-borrower, retirement asset and direct pay discounts
  • Requires a credit score of at least 620
CONS
  • 1.99% to 6.99% origination fee
  • High minimum loan amount
  • $50,000 maximum loan amount

Other Options for Bad Credit Loans

Company logo for Avant
Avant
MoneyGeek Score:
92/ of 100

Minimum Credit Score580
APR Range9.95% to 35.99%
Loan Amount Range$2,000 to $35,000
Repayment Terms24 to 60 months
Time to Receive FundsNext Day
PROS
  • Minimum credit score requirement of 580
  • No prepayment penalties
  • Next-day funding
CONS
  • 9.9% administration fee
  • Late and dishonored payment fees
  • $35,000 maximum loan amount
Company logo for Prosper
Prosper
MoneyGeek Score:
92/ of 100

Minimum Credit Score600
APR Range8.99% to 35.99%
Loan Amount Range$2,000 to $50,000
Repayment Terms24 to 60 months
Time to Receive FundsNext Day
PROS
  • No prepayment penalties
  • Allows joint applications
  • Does soft credit inquiries
CONS
  • 1% to 9.99% origination fee
  • Charges check payment, late and insufficient funds fees
  • $50,000 maximum loan amount

Calculate Your Monthly Loan Payment

Knowing how much you need to pay for a personal loan monthly is helpful if you have a less-than-perfect credit history. To help estimate your costs before taking out a loan, use our personal loan calculator by entering your loan amount, loan term and interest rate.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 24, 2024

5 Years
Bar Chart Icon

Next Steps

Get personalized loan rates.

Shield Insurance

Why You Can Trust MoneyGeek

Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.

How to Repair Bad Credit

Improving a low credit score takes time. Alvin Yam, CFP, shares some strategies to repair your credit gradually:

  1. 1

    Check your credit reports (1 to 2 weeks)

    Get your free annual credit reports from the three major bureaus: Experian, Equifax and TransUnion. Review them for errors, missed payments or fraudulent accounts that could drag down your scores. Dispute any inaccuracies through the credit bureaus' dispute processes.

  2. 2

    Pay bills on time (2 to 6 months of good payment history)

    Payment history is the most significant factor impacting your scores. Get current on any past-due accounts and commit to paying all future bills on time, every time. This positive payment history will start offsetting previous delinquencies within a few months.

  3. 3

    Reduce credit balances (3 to 12 months)

    Your credit utilization ratio, or the amount of revolving debt you carry compared to total credit limits, comprises about 30% of your score. Focus on paying down credit card balances to below 30% of the limits. Incremental improvements in this ratio can boost your score.

  4. 4

    Avoid new credit applications (6 to 12 months)

    Too many hard inquiries from applying for new credit can hurt your scores. Take a break from new applications until your credit improves. Each inquiry stays on your report for about one year.

  5. 5

    Build positive credit history (12 to 24 months)

    Consider a credit-builder loan or a secured credit card to build positive payment references over time. These show your ability to manage new credit responsibly.

  6. 6

    Be patient (18 to 36 months)

    Improving a low credit score takes time. Consistent debt payments, limited credit use and avoiding new delinquencies can gradually raise your score over a few months. Most negative marks typically disappear from your report after seven years.

How to Find the Best Bad Credit Loan for You

To find the best bad credit loan that fits your needs and circumstances, follow these steps when comparing personal loan providers:

  1. 1

    Determine your maximum budget

    Before considering a loan, identify how much you can afford in monthly payments without straining your finances. This will help you narrow down options to loans within your budget.

  2. 2

    Check your credit report

    Review your credit report to understand where your credit stands and address any errors. Knowing your credit score can also give you a realistic sense of the loan terms you may qualify for.

  3. 3

    Compare interest rates

    Research and compare rates from different lenders, as interest rates can vary widely for borrowers with bad credit. Choosing the lowest available rate can save you money over the life of the loan.

  4. 4

    Look out for fees

    Late fees, origination fees and prepayment penalties add to the total loan cost. Understanding these personal loan fees upfront helps you avoid unnecessary expenses.

  5. 5

    Understand eligibility requirements

    Each lender has unique eligibility criteria, such as income minimums or specific credit score requirements. Make sure you meet these requirements to avoid rejections and focus on lenders that are more likely to approve your application.

How to Identify Bad Credit Loan Scams

To steer clear of bad credit loan scams, watch out for these red flags:

    noCredit icon

    No credit check claims

    Legitimate lenders constantly review your credit history, so "no credit check" claims are often a scam.

    money icon

    Upfront fees

    If a lender asks for fees before you receive any money, it's likely not legitimate, as most reputable lenders deduct costs from the loan amount.

    dollarBadge icon

    Too-good-to-be-true offers

    Offers that seem too favorable compared to other lenders may be a lure to scam you.

    laptop icon

    Unsecured website

    A secure website starts with "https," indicating that your information is encrypted; an unsecured one is a red flag.

    lenderTransparency icon

    Vague terms and conditions

    Legitimate lenders provide clear and detailed loan terms; ambiguity here is a sign of trouble.

    uninsured icon

    Unsolicited offers

    If you receive a loan offer without applying, especially via phone or email, be wary — scammers often use this tactic.

    noResults icon

    No physical address

    A legitimate lender will have a physical office address; the absence of one is a clear warning sign.

    coverage icon

    Pressure tactics

    Scammers often pressure you to act quickly; reputable lenders allow you to take your time and read the fine print.

FAQ: Loans for Bad Credit Scores

We compiled answers to some common questions about loans for low credit scores to provide valuable insights and help you make well-informed decisions.

What is the highest interest rate for bad credit loans?

How quickly can you receive funds for a personal loan with a low credit score?

Can you use a loan to pay off credit card debt with a low credit score?

What’s the difference between a payday loan and a personal loan for low credit scores?

Can a co-signer help you get a better loan offer?

What should you do if you can’t make a loan payment?

How does applying for a loan with bad credit impact your credit score?

Can you use a loan for business purposes with a low credit score?

What happens if you default on a personal loan?

Loading...

MoneyGeek ranked bad credit lenders differently at the national versus state levels. Our personal loan scoring system analyzed each lender's performance in areas that matter most to borrowers, assigning scores based on whether specific features were present or absent across key categories.

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.


sources
Shield Insurance

The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.