Best Personal Loans For Bad Credit In 2020

The most common reasons people decide to apply for a personal loan are emergency expenses or costly credit card balances that are more easily solved via consolidation. Once-in-a-lifetime events are another reason. In this article, we went over the best personal loans for bad credit and featured:

  • ✔ Our methodology
  • ✔ Reviews
  • ✔ Benefits
  • ✔ Buyer’s guide
  • ✔ FAQ


Personal Loans For Bad Credit Reviews

1. Freedom Debt Relief

Personalized financial planning

Lowering debts as much as 50%

No fees until debts have been settled

Best For Debt Settlement Overall

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If you have unsecured debts, Freedom Debt Relief can help via debt settlement. The company will come up with a unique, customized plan to help you lower the debt as much as possible, followed by great repayment terms.

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2. National Debt Relief

Debt consolidation services

Financial consultations and education

No fees until your debts have been settled

Best Debt Settlement For Private Student Loans

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National Debt Relief offers more than simple debt settlement. This company also provides debt consolidation services and the education necessary to keep you debt-free. It’s a great choice for those looking to pay off private student loans.

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3. OneMain Financial

Instant approval

Free credit scores

Large loan amounts

Best Repayment Options

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OneMain Financial is among the most reliable personal loan lenders offering fairly large loans. Their proprietary algorithm chooses eligibility in only 10 minutes, and once you’re approved, there are plenty of additional services and perks.

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4. OppLoans

Next-day payoff

Installment loans

No credit check loans

Best No Credit Check Loans

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OppLoans is among the best personal loan companies for bad credit. It offers installment loans, loans that don’t require a hard credit check, and all of it without the need for collateral.

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5. Rocket Loans

Reasonable APR

Large loan amounts

Discount on automatic withdraw

Best Loan Amount And APR

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Rocket Loans offers great personal loans for credit under 600. Large loans, decent APR, and an autopay discount make the company worth checking out.

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6. MoneyMutual

Various types of loans

No MoneyMutual fees

Marketplace with around 60 lenders

Best For Those With Low Income

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MoneyMutual is a great choice for those who need a personal loan, but don’t make a lot of money. It offers a couple of different loans, hosts around 60 lenders ready to offer you financial aid, and all that without asking for any fees.

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7. CashAdvance

Has a network of lenders

No credit score requirements

Matches you with the best lender

Best Emergency Loans

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CashAdvance connects borrowers with the best lenders and provides loans in a single business day. Anyone looking for the best emergency loans for bad credit should give it a go, as there are no credit score requirements.

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What We Reviewed - Our Methodology

We took a look at a couple of parameters in order to choose the best personal loan providers. First, we checked to see what type of lender they are and made sure to include different kinds. No matter how good the fees and repayment terms are, if the eligibility requirements are too tough, it’s not worth it. Therefore, we didn’t include companies with difficult requirements. Finally, we made sure these bad credit loans are offered by credible lenders. Here’s everything we based our list on:

✔ Eligibility requirements: Personal loan eligibility boils down to the borrower’s ability to pay off the loan. We made sure that these lenders have reasonable eligibility requirements when it comes to employment, monthly income, etc.

✔ Type of lender: Not all personal loan lenders work the same way. For the purpose of this article, we went mostly with direct lenders but added a couple of marketplaces as well. And since banks rarely approve these types of loans, we only featured non-banking financial institutions.

✔ Fees and repayment terms: The lenders on our list either have reasonable fees or are completely free. When it comes to repayment terms, they go up to five years.

✔ Credibility: Personal loans for bad credit reviews confirm the credibility of each of the lenders we chose.

At a Glance

  • No fees until debts have been settled
  • Lowering debts as much as 50%
  • Personalized financial planning
  • Restrictions for loan uses
  • Can’t help with secured loans

Rather than lending you money, Freedom Debt Relief specializes in debt settlement. If you’re thinking of paying off debt with the help of debt negotiation, this company is a great choice. Freedom Debt Relief will negotiate with creditors on your behalf to lower your initial debts by as much as 50%. Instead of getting bad credit loans, you can wave a large portion of your debt goodbye and get help paying off the remaining part. Once you have enough funds in an FDIC-insured savings account, Freedom Debt Relief can start helping you negotiate unsecured debts such as:

  • Personal loan debt
  • Credit card debt
  • Department store credit debt
  • Medical debt

If you’re deemed eligible for debt settlement, Freedom Debt Relief will provide you with a customized program to help lower your debt as much as possible. You won’t have to pay anything until your debts have been settled. And once you do pay, the fees of 15%-25% are a reasonable price for the services received.

However, if you’re looking for help with college loans, mortgages, auto loans, utility bills, taxes, or lawsuits, it’s best to look for short term personal loans instead, as Freedom Debt Relief doesn’t offer help with these.

FEES Usually, 15%-25%, but may depend on the state

At a Glance

  • Debt consolidation services
  • Financial consultations and education
  • No fees until your debts have been settled
  • Restrictions for loan uses
  • No debt consolidation loans

Our list of personal loans for bad credit features one more debt settlement company – National Debt Relief. Though the company’s debt settlement services can be used for various reasons, those with private student loans will benefit most from them. Besides helping with debt settlement, this BBB-accredited company also offers debt consolidation services. National Debt Relief can help you consolidate your debts into one low monthly payment, though it doesn’t offer debt consolidation loans. As a bonus, National Debt Relief ensures you stay debt-free by providing you with the necessary financial consultations and education.

Up until your debts are settled, you won’t have to pay a penny. And as with most debt settlement companies, once it’s time to pay, you’ll be paying a 15%-25% fee.

Those looking for the best personal loans for poor credit often end up settling their debts instead. One downside of National Debt Relief, however, is that there are many debts you can’t settle. Some of them are:

  • Mortgage Loans
  • Back Taxes
  • Auto Loans
  • NSF (Insufficient Funds) Checks
  • Child Support
  • Warranty Contracts
  • Insurance Policies
  • Current Litigation Accounts (less than 6 months)
  • Gambling Debts (though there are some exceptions in case of preapproval)
  • Bail Bonds






2-4 years





At a Glance

  • Free credit scores
  • Large loan amounts
  • Instant approval
  • Visit to the branch office required
  • Requires an average credit score of 600-650

OneMain Financial prides itself on not having a minimum credit score requirement. Instead, your eligibility is decided by its proprietary algorithm. Since the average borrower has a credit score between 600 and 650, it means OneMain Financial doesn’t just offer loans for bad credit – it provides the best personal loans for fair credit as well. Whether you’re looking for an unsecured or secured loan, OneMain Financial is a great choice, especially for those looking for good repayment terms. Other services include refinancing and even optional credit insurance. And though there are no free credit reports, OneMain Financial does offer free credit scores with VantageScore.

OneMain Financial’s personal loans for bad credit have instant approval. In general, borrowers get financial decisions in less than ten minutes.

With OneMain Financial, you can borrow as much as $20,000 and get the money in a single day. Just keep in mind that your likely annual percentage rate (APR) will be at least 18%. The good thing is, you’ll have up to five years to repay the debt. One downside is that you’ll need to visit one of the company’s branches in order to finish the business, rather than doing everything online.

LOAN AMOUNT $1,500-$20,000
APR RANGE 18%-35.99%
FUNDING TIME 1-2 business days
FEES Origination fee: either $25-$400 or loan percentage (1%-10%)

At a Glance

  • Installment loans
  • Next-day payoff
  • No credit check loans
  • High APR
  • Fees aren’t transparent

Those looking for trustworthy loan lenders should take a look at what OppLoans has to offer. With this company, borrowers can easily apply for installment loans and get a very quick decision about their eligibility. One huge benefit of choosing OppLoans is the possibility of no check loans. If you’d rather not have a hard credit check, OppLoans is the perfect choice, as it only performs soft checks. Instead of pulling your credit scores, OppLoans determines your personal loan eligibility based on information like employment status and a certain income threshold. Chosen customers can even get refinancing. Another bonus is that you don’t need collateral to get a loan.

However, the best online installment loans for bad credit (especially those without a hard credit check) come at a price. While you can get up to $4,000 as soon as the next day, be aware that OppLoans’ APR is among the highest in the industry – between 99% and 199%.

Before opting for OppLoans, make sure the company does business in your state. Currently, fewer than 40 states are covered.

LOAN AMOUNT $500-$4,000
APR RANGE 99%-199%
FUNDING TIME Next business day
FEES Depends on the state

At a Glance

  • Reasonable APR
  • Discount on automatic withdraw
  • Large loan amounts
  • Origination, late, and unsuccessful fees
  • Credit score of at least 580 necessary

If you think that the best personal loans for fair credit would better fit your situation, Rocket Loans could be just what you need. This company requires you to have a credit score of at least 580, while the minimum length of credit history is two years. Those looking for large loan amounts with a reasonable APR will love what the company has to offer. Rocket Loans has automated the application process, making a couple of things possible:

  • Preapproval with soft credit check only
  • Electronic identity verification
  • Financial decisions in just a few minutes

In general, borrowers use Rocket Loans for all kinds of needs: debt consolidation, home improvement, financing their small business, etc.

With Rocket Loans, you can get approved for as much as $45,000! Not only that, but the APR is more than reasonable, starting from 7.16%. However, if you decide to get the best emergency loans for bad credit from Rocket Loans, be prepared for origination, late, and unsuccessful payment fees.

RocketLoans offers an autopay discount of 0.03%.

LOAN AMOUNT $2,000-$45,000
APR RANGE 7.16% – 29.99%
FUNDING TIME 1-3 business days

Origination fee: 1%-6% of the loan

Late fee: $15 after a 10-day grace period

Unsuccessful payment fee: $15

At a Glance

  • Various types of loans
  • No MoneyMutual fees
  • Marketplace with around 60 lenders
  • APR, repayment terms, and fees depend on the lender
  • Some loans may not be available in some states

MoneyMutual isn’t a direct digital lender, but a marketplace. It connects borrowers to different lenders who review your application and decide if you’re a good fit. This way, you have a fairly good chance of getting a loan, since various lenders will be looking at your application. Plus, you don’t have to write up a new application for every website you want to try your luck on. You just fill in one simple form (it takes up to 5 minutes) and wait while MoneyMutual works its magic. Since you only need to be making $800 a month in order to be eligible, borrowers who don’t make a lot of money consider these the best personal loans for bad credit. Thanks to the diversity of the lenders, you can get payday loans, cash advances, and installment loans.

If loans of up to $2,500 work for you, MoneyMutual is a great place to be: you can get the money on the same day. The only issue is that you can’t know what the APR or additional fees may be, as that depends on the lender. The good news is, MoneyMutual itself doesn’t have any borrower fees.

LOAN AMOUNT Up to $2,500
APR RANGE Depends on the lender
REPAYMENT TERMS Depends on the lender
FUNDING TIME As early as the same day
FEES No fees with MoneyMutual; other fees depend on lenders

At a Glance

  • No credit score requirements
  • Matches you with the best lender
  • Has a network of lenders
  • APR can get very high
  • The repayment period can be very short

We can’t talk about the best online personal loans for bad credit and not mention CashAdvance. Much like MoneyMutual, it’s not a direct lender, but instead connects lenders with borrowers in need of a cash advance. Once you fill out a relatively short questionnaire online, the company will match you with the best lender from its database. CashAdvance offers unsecured loans, but be aware – they tend to have much higher interest rates compared to secured loans. Regardless, this company gives the best emergency cash advance for bad credit, especially since it doesn’t have credit score requirements.

CashAdvance doesn’t have a fixed APR since it depends on each lender individually. However, you can expect an APR between 250% and as much as 2,350%. That said, everything is perfectly transparent; borrowers get to review the offer before accepting it, so they know exactly how much they’ll be expected to pay. The maximum loan amount is $999, with repayment terms stating you’ll likely have to return the money in 7-60 days. The good news is, CashAdvance’s loans come very quickly – you’ll have yours in a single business day.

LOAN AMOUNT $100-$999
APR RANGE 250%-2,350%
FUNDING TIME 1 business day
FEES Depends on the lender

2020's Best Personal Loans For Bad Credit

  • Freedom Debt Relief – Best for debt settlement overall
  • National Debt Relief – Best debt settlement for private student loans
  • OneMain Financial – Best repayment options
  • OppLoans – Best no credit check loans
  • Rocket Loans – Best loan amount and APR
  • MoneyMutual – Best for those with low income
  • CashAdvance – Best emergency loans
What Is A Bad Credit Loan?

A bad credit score is typically a low FICO score, calculated by the Fair Isaac Corporation (FICO), usually that of under 580. While many banks and credit unions are reluctant to approve loans to borrowers with bad credit scores, there are lenders who specialize in offering various types of loans to those with bad credit.

Types Of Short-Term Loans For Bad Credit

There are several types of short-term personal loans for bad credit rating, such as:

  • Secured and unsecured personal loans: When it comes to bad credit, many lenders specialize in unsecured loans. However, some offer secured loans as well, meaning you can have collateral and pay a lower interest.
  • Payday loans:  In cases when you just need help until your next paycheck, the best short term loans for bad credit are payday loans. It’s an advance the lenders usually expect you to repay on the next payday.
  • Cash advance loans: When they’re provided by credit card companies, cash advance loans allow you to keep withdrawing money from your credit card against your card limit. When other lenders provide these loans, it’s virtually another name for a payday loan.
  • Installment loans:  These are the loans you pay off in small monthly installments.
  • Emergency loans: In case there is a medical or some other sort of emergency you weren’t financially prepared for, you can apply to get the best emergency cash for bad credit.
  • Debt consolidation loans:  If you have multiple debts, they can be consolidated and paid off in monthly installments altogether. This makes the process simpler and more transparent.
  • Bank loans: Loans from financial institutions work the same way as with any lender. However, a loan officer at the bank will be more reluctant to give a bad credit loan compared to lenders who specialize in it.

How To Choose A Bad Credit Loan Lender - Guide

✔ Check out the fees: There are a couple of fees you can expect to see while looking for the best online personal loans for bad credit. Some of them are the origination fee, the processing fee, and the application fee. Look for lenders that either don’t have them or contrast them with a lower APR.

✔ Look out for scams: If a lender promises you guaranteed approval, it’s likely a scam. You should also beware of those not asking for your credit history, or asking you to provide cash or a prepaid debit card upfront. Also, check if the company has a physical address and a secure website.

✔ Repayment terms: While some top-rated personal loans for bad credit can be paid off in five years, other companies offer a much shorter repayment period. Make sure you choose the lender whose terms you are comfortable with.

✔ Types of interests: Check to see if the lender offers fixed or variable interest rates. With fixed rates, you know exactly how much you’ll be paying until the loan is paid off. With a variable rate, you may be able to save some money as the rate changes (usually based on an index). However, it can be risky, so think it over before going for this option.

✔ Penalties: Some of the best lenders for personal loans with bad credit are very strict when it comes to repayment, which is why they have late fees or even occasionally prepayment fees.

✔ Restrictions: While many lenders don’t care what you do with the money once the loan is approved, some will only lend you money for a specific purpose, preventing you from spending it elsewhere.

✔ Benefits: Finally, look for benefits like unemployment protection or an autopay discount.

How To Get A Loan With A Bad Credit Score?

Getting a loan with a bad credit score can be tricky. To save yourself time while still searching for the best personal loan sites for bad credit, follow these personal loan stages:

  • Determine how much you need: Whether you need $1,000 until your next paycheck or $10,000 for medical expenses will affect your choice of a lender, since not all lenders offer the same loan amounts.
  • Check your credit score: Many lenders have minimum credit requirements, so check yours right away.
  • Compare lenders and make sure you comply with the lenders’ requirements: Check to see which lenders are likely to find you eligible, and find those you’d like to go with.
  • Pick a lender and apply: Once you’ve made the final choice, applying for bad credit loans can usually be done online by providing the necessary information.
  • Provide the required documentation and complete the approval process: Personal identification is a must, it’s also likely you’ll need to provide pay stubs, and if you’re a business owner you’ll probably have to show tax documents as well. The lender may do a soft pull and let you know during the prequalification phase whether you’re eligible for a loan and how much you can get.

Wrap Up and FAQs

Finding a personal loan for bad credit is not as easy as with fair or excellent credit. Interest rates are higher, the loan amounts lower, and it can be a frustrating experience. While it’s possible that your bank offers personal loans for bad credit, chances are you’ll have to rely on non-banking financial institutions to get the money you need. Whether it’s an emergency or a once-in-a-lifetime event, the principle is the same: make sure the lender is legit, look closely into what it offers, know what you’re comfortable with, and choose wisely!


What is a bad credit loan?

A bad credit loan is a loan you get when your FICO score is low. Many banks and other lenders see such loans as a risk, so getting one can be tricky.

How do personal loans work?

It’s fairly easy – you apply, the lender decides whether you’re eligible for the loan, and if you are, you get the money. With bad credit, however, some lenders have restrictions regarding what you can spend the loan on.

Can you get a personal loan with a credit score of 550?

Absolutely. Plenty of lenders specialize in providing loans to those with bad credit scores, so you’ll definitely be able to get it even with a score of 550.

Which bank has the easiest personal loan approval?

The short answer is – USAA and Wells Fargo. The long answer? Loan institutions like banks are seldom ready to give loans to those with low credit scores, which is why this article focuses on non-banking financial institutions.

Which loan company is best for bad credit?

What constitutes the best personal loans for bad credit for you depends on your specific situation – what you need the loan for, how much you need, how soon, etc. To see which of the companies we’ve reviewed is best for what purpose scroll up!