Having bad credit doesn’t mean you’re out of options. Whether you need to consolidate debt, cover an emergency expense, or finance a large purchase, personal loans are still within reach even with a less-than-perfect credit score. In fact, many lenders now specialize in working with borrowers who have poor credit, offering flexible terms and surprisingly competitive interest rates.
In this guide, we’ll help you understand what to look for, what to avoid, and most importantly, break down the best personal loans for bad credit in the U.S. for 2025. These lenders are known for fast approval, transparent terms, and a commitment to helping borrowers rebuild their financial health.
Understanding Bad Credit Personal Loans
A personal loan for bad credit is typically an unsecured loan offered to individuals with credit scores below 580 or a limited credit history. Because the borrower is considered higher risk, these loans may come with slightly higher interest rates. However, when managed responsibly, they can be a powerful tool to improve your credit and regain financial stability.
Some key features to look for in a bad credit loan include:
- Fixed interest rates and monthly payments
- Reasonable APRs compared to payday loans
- No hidden fees or prepayment penalties
- Fast funding — often within one business day
Who Should Consider a Personal Loan for Bad Credit?
You might consider one if you:
- Are trying to consolidate high-interest credit card debt
- Need funds for a medical bill, car repair, or unexpected emergency
- Want to build or rebuild your credit history
- Prefer a structured repayment plan over revolving credit
Remember, the right loan should help solve a problem — not create more debt.
Top 5 Best Personal Loans for Bad Credit in 2025
Here are some of the most trusted personal loan options for individuals with bad credit, based on low fees, flexible qualification criteria, and customer support.
1. Upgrade – Best Overall for Bad Credit Borrowers
Minimum Credit Score: 560
Loan Amounts: $1,000 – $50,000
APR Range: ~8.5% – 35.99%
Funding Time: Within 1 business day
Upgrade is a strong choice for borrowers with credit challenges. It offers fixed-rate loans with terms from 24 to 84 months, and they’re transparent about fees. The application process is quick, and you can check your rate with no impact on your credit score.
Why it stands out:
- Accepts lower credit scores
- Offers a free credit monitoring tool
- Has flexible repayment plans
2. OneMain Financial – Best for In-Person Service
Minimum Credit Score: No minimum required
Loan Amounts: $1,500 – $20,000
APR Range: ~18% – 35.99%
Funding Time: Same day or next day
If you prefer face-to-face interactions, OneMain has over 1,500 branches nationwide. They consider more than just your credit score, and may approve you based on your income, expenses, and loan purpose. While APRs are on the higher side, the personal service and flexible underwriting make it a standout.
Why it stands out:
- Ideal for borrowers with limited or no credit history
- Local branch access and live representatives
- Joint applications and secured loan options available
3. Avant – Best for Quick Approval
Minimum Credit Score: 580
Loan Amounts: $2,000 – $35,000
APR Range: ~9.95% – 35.99%
Funding Time: As soon as the next business day
Avant is known for speed. If you need money fast, this platform offers same-day decisions and next-day funding. It’s perfect for people looking to avoid predatory payday loans. While there may be an administration fee, Avant’s transparency and speed make it a dependable choice.
Why it stands out:
- Rapid application and approval process
- Ideal for emergency expenses
- Offers mobile app and 24/7 account access
4. LendingPoint – Best for Fair Credit and Income Flexibility
Minimum Credit Score: 600
Loan Amounts: $2,000 – $36,500
APR Range: ~7.99% – 35.99%
Funding Time: Within 24 hours
LendingPoint considers more than just credit score — your job history, income, and overall financial profile are part of the approval process. That’s good news for borrowers who’ve recently improved their credit or have strong income but a low score due to past mistakes.
Why it stands out:
- No prepayment penalties
- Great for recent credit rebuilders
- Soft credit check prequalification
5. Upstart – Best for No Credit or Thin Credit Files
Minimum Credit Score: 580 (may approve below)
Loan Amounts: $1,000 – $50,000
APR Range: ~6.5% – 35.99%
Funding Time: Next-day funding available
Upstart uses AI and alternative data to evaluate applicants — such as education, job history, and income — which makes it easier for young borrowers or those with limited credit to qualify. It’s especially helpful for people with thin credit files who need an affordable, structured loan.
Why it stands out:
- AI-driven approval model
- Fast application process
- Often better rates than traditional lenders for non-prime borrowers
Tips for Getting Approved with Bad Credit
Even with a low score, you can improve your chances of loan approval by following a few smart steps:
- Check your credit report for errors and fix them before applying.
- Apply for prequalification with multiple lenders to compare offers without hurting your score.
- Reduce your existing debt as much as possible — lower utilization shows lenders you’re managing your finances better.
- Consider adding a co-signer if you have someone with good credit willing to help.
- Be honest about your income and expenses to avoid borrowing more than you can repay.
Are Personal Loans Safe for Bad Credit?
Yes — as long as you avoid predatory payday lenders and choose a reputable institution. Stick with lenders that clearly outline their APRs, repayment terms, and fees. All the lenders mentioned above are legitimate and report to major credit bureaus, meaning your on-time payments can actually help improve your credit score over time.
Final Thoughts: Bad Credit Doesn’t Mean No Options
In 2025, your credit score doesn’t define your financial future. Thanks to technology and forward-thinking lending platforms, finding the best personal loans for bad credit is easier than ever in the U.S. market.
By choosing a trustworthy lender and managing your loan responsibly, you can cover your immediate needs and rebuild your credit in the process. Always compare your options, understand the terms, and borrow only what you can realistically repay.
The road to better credit — and better financial health — starts with informed decisions. And today could be the day you take your first confident step forward.
