Loans

TOP 10 best personal loans 2022: even for bad credit!

If you're looking for a personal loan but have a bad credit score, you might feel like your options are limited. However, there are plenty of personal loan lenders out there who are willing to work with you. If you want to know who they are and what they can offer, keep reading this article!

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by Aline Barbosa

Published on 03/08/2022

Discover the best personal loans for bad credit in 2022

What is the best personal loan for bad credit? Source: Unsplash.

Getting a personal loan when you have low or fair credit scores is not easy. Most lenders prefer to work with borrowers who have a good payment history. However, there are credit union companies out there that can help you get the money you need. And we will show you how to get the best personal loans for bad credit.

To help you choose the best deal for you, we made a list of the top ten best personal loans for customers with low credit scores. Want to see who’s in it? Keep reading and find out!

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10 best personal loans options for those with bad credit

Check out now our list with the ten best options!

Upstar

To begin our list, Upstart is the top choice for anyone with low credit or nonexistent credit history. Its main perk is the fast deposit into your bank account if the required paperwork is done by 5 pm on business days. There are also no early payoff fees. 

However, it has high late fees, and the origination fee charged is withheld from the loan before it even makes it to your bank account. You’ll also need a social security number.

APR3.09% to 35.99%.
LOAN PURPOSEMedical expenses; debt consolidation; home improvement.
LOAN AMOUNTS$1000 to $50.000.
CREDIT NEEDEDThe average score is 600 but will accept applicants with low or no credit score.
TERMS36 and 60 months.
ORIGINATION FEE0% to 8% of the target amount.
LATE FEEThe greater between 5% monthly past due amount or $15.
EARLY PAYOFF PENALTYNone.

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OneMain Financial

OneMain Financial offers easy approval for applicants with low or fair credit scores with ACH funding within one or two business days. There’s also a decent loan minimum of $1.500 for minor needs and the option to apply for a secured loan for lower rates. 

The disadvantages lie in a high origination fee and high interest rates. You can’t get an APR discount for autopay, and OneMain Financial doesn’t accept co-signers on the loan.

APR18.00% to 35.99%.
LOAN PURPOSEEmergency costs; debt consolidation; significant expenses.
LOAN AMOUNTS$1.500 to $20.000.
CREDIT NEEDEDBetween poor and fair.
TERMS24, 36, 48 or 60 months.
ORIGINATION FEEFlat fee starting at $25 to $500; orPercentage ranging from 1% to 10%).
LATE FEEUp to $30 per late payment or up to 15%.
EARLY PAYOFF PENALTYNone.

Avant Personal Loans

Learn more about the Avant personal loan. Source: Avant.

Avant Personal Loans accepts applicants with a credit score lower than 600. It also offers the possibility of a secured loan against the title of your car for lower interest rates. The funding is quick, often by the next day after signing the paperwork. And there is a 10-day grace period for late payments. 

Like most of the best personal loans for bad credit in this list, the cons are its origination fee and high interest rates (up to 35.99% in some cases). It’s also not the best solution for customers looking for debt consolidation since there is no direct payment to creditors. 

APR9.95% to 35.99%.
LOAN PURPOSEHome improvement; major expenses; emergency costs.
LOAN AMOUNTS$2.000 to $35.000.
CREDIT NEEDEDBetween poor and fair.
TERMS24 to 60 months.
ORIGINATION FEEUp to 4.75%.
LATE FEEUp to $25 per late payment after a 10-day grace period.
EARLY PAYOFF PENALTYNone.

LendingPoint Personal Loans

This personal loan agency provides a fast application with same-day approval for anyone with a minimum 580 credit score. Next-day funding is possible once the paperwork is verified and LendingPoint charges no early payoff fees. 

However, it offers no joint or co-signed loan, and this service is not available in all states. Its origination fees are high, up to 6%, and you must have a social security number to request the loan. 

APR9.99% to 35.99%.
LOAN PURPOSEWeddings, vehicle repairs, home renovations, and more.
LOAN AMOUNTS$2.000 to $36.500.
CREDIT NEEDEDBetween poor and fair.
TERMS24 to 60 months.
ORIGINATION FEEUp to 6%.
LATE FEECurrently, it doesn’t charge any late fees.
EARLY PAYOFF PENALTYNone.

TD Bank

This personal loan offers one of the lowest APRs for borrowers with bad credit. Customers can request anywhere between $2.000 and $50.000, with the money being funded as fast as one business day. TD Bank also provides the option of changing your payment dates.

Its main drawback is that the loan comes with a couple of restrictions, and the borrower cannot use it for business or education purposes. 

APR6.99% to 18,99%.
LOAN PURPOSEDebt consolidation; home improvements; medical expenses.
LOAN AMOUNTS$2.000 to $50.000
CREDIT NEEDEDNot disclosed.
TERMS36 to 60 months.
ORIGINATION FEENot disclosed.
LATE FEE5% of the minimum payment or $10
EARLY PAYOFF PENALTYNot disclosed.

Upgrade

Learn more about the Upgrade personal loan. Source: Upgrade.

The purpose of requesting an Upgrade personal loan can be from debt consolidation to home improvements. It also offers a modest $1000 loan for smaller purchases, and the money is available for funding within the next day of approval. 

The many requirements make this loan a little hard to get for people who don’t have a 75 percent or less debt-to-income ratio or a minimum of 560 credit score. Its high origination fees might also be a deal-breaker for some. 

APR5.94% to 35.97%.
LOAN PURPOSEMajor purchases; debt consolidation.
LOAN AMOUNTS$1.000 to $50.000.
CREDIT NEEDEDMinimum 560.
TERMS36 to 60 months.
ORIGINATION FEE2.9% to 8%.
LATE FEEUp to $10.
EARLY PAYOFF PENALTYNot disclosed.

Lending Club

Lending Club allows you to increase your chances of approval by having a co-signer. Borrowers with fair credit are eligible for this loan, but anyone with less than a 600 credit score might want to look elsewhere for better rates. 

This loan charges an origination fee of up to 6%, and there is no autopay discount. 

APR7.04% to 35.89%.
LOAN PURPOSEHome renovations; major expenses, medical bills.
LOAN AMOUNTS$1.000 to $40.000
CREDIT NEEDEDMinimum 600.
TERMS36 to 60 months.
ORIGINATION FEE3% to 6%.
LATE FEE5% or $15, whichever is more.
EARLY PAYOFF PENALTYNot disclosed.

Universal Credit

Universal Credit personal loans require a minimum 560 credit score and at least two accounts on credit history. There is a rate discount with payments directly to creditors on debt conciliation. You can also get a 0.5% discount for autopay, and it is possible to change your payment date.

However, it has a high origination fee, and there are no joint, co-signed, or secured options available. 

APR8.93% to 35.93%.
LOAN PURPOSEMajor expenses; debt conciliation; home improvements.
LOAN AMOUNTS$1.000 to $50.000.
CREDIT NEEDEDMinimum of 560.
TERMS36 to 60 months.
ORIGINATION FEE4.25% to 8%.
LATE FEENot disclosed.
EARLY PAYOFF PENALTYNone.

Best Egg

Learn more about the Best Egg personal loan. Source: Best Egg.

Best Egg requires a minimum 600 credit score for a personal loan, with a borrower average of 700. Customers with fair or lower credit scores can apply, but in case of approval, the APR is higher. Homeowners are eligible for secured loans. 

The downside is that there’s no discount for autopay. And, like most of the best personal loans for bad credit suggestions so far, it also charges an origination fee. 

APR4.99% to 35.99%.
LOAN PURPOSEDebt consolidation; home improvement.
LOAN AMOUNTS$2.000 to $50.000.
CREDIT NEEDEDMinimum of 600.
TERMS24 to 60 months.
ORIGINATION FEE0.99% to 5.99%.
LATE FEENot disclosed.
EARLY PAYOFF PENALTYNot declared.

Prosper Borrowers

Prosper Borrowers require a few qualifications before considering the borrower’s request. The minimum 640 credit score makes this a hard-to-get loan for most people with fair or bad credit. However, you can still apply and take advantage of a joint loan if it’s approved. 

There is no rate discount for autopay, but the customer has the option to change their payment date if they need to.

APR7.95% to 35.99%.
LOAN PURPOSEHome improvements; weddings; medical expenses.
LOAN AMOUNTS$2.000 to $40.000
CREDIT NEEDEDMinimum of 640.
TERMS36 to 60 months.
ORIGINATION FEE2.41% to 5%
LATE FEENot disclosed.
EARLY PAYOFF PENALTYNot announced.

And if you want to learn more about finances, check out our guide below, where we’ll explain to you the different types of fees when you apply for a loan!

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Three types of fees: a guide for beginners

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About the author

Aline Barbosa

Aline Barbosa is an editor, writer and learning-enthusiast. Passionate about music, books and human behavior. Curious about the unknown. Believer that learning is a life-long process.

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