Best bad credit loans

In today's complex economic landscape, many people are feeling the financial squeeze. While inflation has cooled significantly over the last several months, high consumer goods prices are still the norm, and while the Fed recently slashed its benchmark rate by 50 basis points, interest rates are still elevated overall. These factors have led some people to rely on credit cards for essential expenses, resulting in a significant uptick in credit card debt. Recent data shows that outstanding balances have increased by nearly 6% compared to last year.

Unfortunately, accumulating substantial credit card debt and failing to make timely payments, along with other financial missteps, can severely impact your credit score. This, in turn, can restrict your financial flexibility in the future.

However, it's important to note that borrowing options still exist, even for those with less-than-ideal credit scores. If you find yourself in need of funds but are concerned about how your low credit score might affect your ability to secure a loan, there are specific credit products designed for situations like yours. Let's explore some of the most suitable loan options available for those with bad credit scores.

Find out more about your top personal loan options online now.

Best bad credit loans

Here are some of the best bad credit personal loans to get, broken down into six categories.

• Best overall: Upgrade
• Best for low rates: Upstart
• Best for fast funding: One Main Financial
• Best for secured loans: Oportun
• Best for unsecured loans: Avant
• Best for low (or no) fees: PenFed

Best overall: Upgrade

Upgrade is a good option for personal loans all around. There are both secured and unsecured options, the interest rates are fixed, and there are even several rate discounts available. 

Upgrade's loan amounts go up to $50,000, and you can often get your funds within a day of closing. Loan terms range from 24 months to 84 months. 

Best for low rates: Upstart

According to Upstart, its rates are 38% lower than traditional lenders, as it considers alternative factors like education and employment when setting a borrower's rates. The lender's loan amounts go up to $50,000 and have three- or five-year terms. 

Currently, its rates start at just 7.8% — the lowest of all the lenders we looked at.

Learn more about Upstart here.

Best for fast funding: One Main Financial

If you're looking for fast access to cash, One Main Financial is a great option. For some borrowers, funding happens as quickly as just one hour after closing.

Loan amounts go up to $20,000, and there are both secured and unsecured options available. Terms range from two to five years.  

Best for secured loans: Oportun

If you're comfortable with a secured loan, Oportun is a smart choice. You can get up to $18,500 when using your car title as collateral, and you'll see costs that are two to four times less than traditional title and payday loans, according to the lender. You can choose between loan terms of two years and 53 months. 

Best for unsecured loans: Avant

Avant only offers unsecured loans, so if you don't want to risk any of your hard-earned assets like your car or home, then this may be the lender for you. You can borrow up to $35,000, and terms range from one to five years. Avant offers lending decisions within minutes, and you'll typically get your funds within one business day of closing.

Best for no (or low) fees: PenFed

PenFed is a good option if you're looking to minimize the fees you'll pay on your loan. There's no origination fee (some competitors charge as high as 10%), and there are no early payoff fees or balance transfer fees, either. You also won't pay any fees for appraisals, closing or title search, though there are late fees for failing to make your payment on time.

Learn more about PenFed's personal loan options here.

The bottom line

When you're getting a loan, it's important to always compare at least several lender options. This is especially true if you have bad credit, as interest rates can vary widely from one lender to another. 

You can also use an online loan marketplace to get several quotes at once. Just make sure you're comparing apples to apples and that you look at outside factors — like customer reviews, funding time, repayment options and other non-cost-related details that matter, too.