Best Personal Loans for Bad Credit in 2025: Top Picks & Rates
Bad credit? No problem—2025 brings more flexible lenders, faster approvals, and smart ways to secure a personal loan with a rate you can afford.

Why Personal Loans Still Make Sense for Bad Credit in 2025

Even if your credit score isn’t great, a personal loan can be a smart financial tool.

Why?

Because it offers flexibility.

You can use a personal loan to consolidate high-interest credit card debt, cover emergency expenses, or even invest in something that improves your income—like a car to get to work or a course to learn a new skill.

Plus, when managed responsibly, a personal loan can help rebuild your credit over time.

On-time payments are reported to the credit bureaus, which gives your score a chance to bounce back.

But here’s the thing: not all loans are created equal.

And if you have bad credit, the wrong loan can cost you big time in fees and interest.

That’s why this list of top picks is designed specifically with you in mind.

Best Personal Loans for Bad Credit in 2025

We evaluated dozens of lenders and focused on those that:

• Accept low credit scores (typically under 600)
  
• Offer transparent terms
  
• Provide fair interest rates compared to payday loans
  
• Have flexible repayment options
  
• Are trusted by borrowers with solid reviews
  

Here are our top picks:

1. Upgrade – Best Overall for Bad Credit Borrowers

Why it stands out:
Upgrade is one of the most consistent lenders for borrowers with credit scores as low as 560.

They offer personal loans from $1,000 to $50,000 with fixed APRs between 8.49% and 35.99%.

Perks include:

• No prepayment penalties
  
• Quick funding (often within one business day)
  
• Free credit monitoring tools
  

Watch out for:
Origination fees between 1.85% and 9.99% depending on your credit profile.

Still, this is a solid choice for people rebuilding their financial lives.

2. OneMain Financial – Best for In-Person Help

Why it stands out:
If you prefer face-to-face service, OneMain has over 1,400 branches nationwide.

They don’t have a minimum credit score requirement, which is a big plus.

Loan amounts range from $1,500 to $20,000, and you can use a co-applicant or collateral to strengthen your application.

Perks include:

• Same-day funding possible
  
• Great for people with limited credit history
  
• Flexible terms
  

Watch out for:
Higher APRs, typically between 18% and 35.99%.

But the human touch and accessibility make it worthwhile for many borrowers.

3. LendingPoint – Best for Fast Approvals

Why it stands out:
Need money quickly? LendingPoint is known for rapid approvals—even for credit scores in the low 600s.

Their loans range from $2,000 to $36,500, and you can get funded as soon as the next business day.

Perks include:

• Soft credit pull for prequalification
  
• Clear repayment terms
  
• Easy online application
  

Watch out for:
Origination fees up to 8% and the fact that they don’t lend in every state.

Still, their speed and convenience are unmatched.

4. Avant – Best for Emergency Loans

Why it stands out:
Avant is a solid pick for smaller loan amounts (as low as $2,000) and borrowers with scores starting around 580.

If you’re facing an unexpected bill or emergency, they offer fast funding and simple applications.

Perks include:

• Mobile app for easy management
  
• Prequalification without hurting your credit
  
• Late fee forgiveness programs
  

Watch out for:
APR can climb to 35.99%, so compare options if you qualify for better rates elsewhere.

5. OppLoans – Best Alternative to Payday Loans

Why it stands out:
If your credit score is very low or non-existent, OppLoans offers a safer alternative to payday lenders.

It’s not the cheapest option, but it’s way better than falling into a payday trap.

Perks include:

• No credit check
  
• Educational resources to improve financial health
  
• Reports to all three credit bureaus
  

Watch out for:
APR is high (typically around 160%)—but that’s still much lower than the 300%+ payday lenders charge.

Only consider this if you’ve exhausted other personal loan options.

What to Look for When Choosing a Loan with Bad Credit

Getting a personal loan with bad credit doesn’t mean you have to settle for the worst deal out there.

Here’s what to focus on:

1. APR (Annual Percentage Rate)

This is the true cost of the loan.

Don’t just look at the monthly payment—check the APR, which includes interest and any fees.

Lower APR = lower total cost.

2. Loan Terms

Shorter terms mean higher monthly payments but less interest overall.

Longer terms can give you room to breathe, but you’ll pay more in the long run.

Match the term to your monthly budget.

3. Prepayment Penalties

Some lenders charge you if you pay off the loan early.

Always check for this before signing.

You want the freedom to clear your debt faster if you’re able to.

4. Funding Speed

If your need is urgent, go with a lender known for quick approval and funding—some can deposit money the same day you apply.

5. Customer Support

Don’t underestimate this.

If you run into trouble or have questions, you want a lender that answers calls, responds to emails, and treats you with respect.

Tips to Boost Your Approval Odds

Even if your credit isn’t great, you can take a few steps to increase your chances of getting approved—and scoring a better rate.

• Check your credit report for errors. Fixing them could raise your score.
  
• Apply with a co-signer who has better credit.
  
• Offer collateral if the lender allows it (like a car or savings account).
  
• Compare multiple lenders before choosing. Prequalification won’t hurt your credit, so take advantage of it.
  
• Avoid applying for several loans at once. Too many hard inquiries can lower your score even more.
  

Find Your Personal Loan in 2025: Rebuild with Confidence

Bad credit doesn’t mean you’re out of options—it means it’s time to make smarter moves.

In 2025, lenders are more flexible, online platforms are faster, and personal loans are more accessible than ever before.

Whether you’re consolidating debt, covering an unexpected bill, or looking for a fresh start, there’s a loan out there that fits your needs.

But the best results don’t come from jumping at the first offer.

Take your time. Compare lenders. Understand the terms.

Look for transparency, fair rates, and lenders who care about helping you move forward—not trapping you in more debt.

This is your moment to take back control.

With the right strategy, your loan can be the first step toward better credit, less stress, and a brighter financial future.

You’ve got this—and the right loan is waiting.