If you’re struggling with bad credit, securing a personal loan might feel out of reach. But the good news is that several lenders are stepping up to help. Whether you’re consolidating debt, covering emergency expenses, or financing a major purchase, finding the right personal loan doesn’t have to be impossible.
This guide highlights the best personal loans for bad credit in April 2025. We’ll walk you through top lender choices and their terms to help you make an informed decision.
Why Consider Personal Loans for Bad Credit?
Most traditional loans favor borrowers with excellent credit scores. But for individuals with a credit score below 670, options may seem limited. Bad credit personal loans are designed specifically for borrowers with lower scores, offering access to funds when they’re needed most.
These loans often come with customized terms, allowing borrowers to prove their financial resilience and, in some cases, improve their credit scores by repaying on time.
Top Bad Credit Personal Loans of April 2025
1. OneMain Financial – Best for Flexible Terms
APR: 18.00% to 35.99%
Loan Amounts: $1,500 to $20,000
Repayment Terms: 24 to 60 months
OneMain Financial is a strong option for borrowers looking for customized repayment terms. They offer both secured and unsecured loans to give flexibility based on your financial needs and credit profile.
Key Benefits:
- No early repayment fees
- Allows co-applicants for improved loan offers
- Same-day or next-day funding available
Potential Drawbacks:
- High origination fees (up to 10%)
- Higher APR compared to other lenders
Learn more about OneMain Financial here.
2. Avant – Best for Quick Funding
APR: 9.95% to 35.99%
Loan Amounts: $2,000 to $35,000
Repayment Terms: 24 to 60 months
Avant is ideal for borrowers who need cash quickly. They cater to people with credit scores as low as 600 and offer a fast application process with potential next-day funding.
Key Benefits:
- Quick approval and next-day disbursement
- Pre-qualification options with no impact on credit
- Grace period for late payments
Potential Drawbacks:
- Origination fees up to 9.99%
- No direct payments to creditors for debt consolidation
Learn more about Avant here.
3. LendingPoint – Best for Fast Approval
APR: 7.99% to 35.99%
Loan Amounts: $1,000 to $36,500
Repayment Terms: 24 to 72 months
LendingPoint enables borrowers to secure loans with a quick application process and same-day approval in most cases. They evaluate your financial health holistically, which can benefit those who don’t have stellar credit scores.
Key Benefits:
- Straightforward and fast approval process
- Lower APRs starting at 7.99%
- No early repayment fees
Potential Drawbacks:
- Origination fees of up to 10%
- Not available in Nevada or West Virginia
Learn more about LendingPoint here.
4. Upstart – Best for Limited Credit History
APR: 6.70% to 35.99%
Loan Amounts: $1,000 to $50,000
Repayment Terms: 36 to 60 months
Upstart sets itself apart by evaluating factors beyond your credit score, such as education and employment history. It’s one of the few lenders accepting borrowers with insufficient credit history, making it an excellent choice for first-time applicants.
Key Benefits:
- Accepts applicants with no credit history
- Low starting APRs at 6.70%
- Next-day funding (after completing the application before 5 p.m. EST)
Potential Drawbacks:
- High origination fees (0%-12%)
- Charging late fees starting at $15
Learn more about Upstart here.
Tips to Secure a Bad Credit Loan
Getting approved for a personal loan with bad credit is possible. Here are some steps to increase your chances of success:
- Check your credit score and report for errors. Correcting inaccuracies can improve your chances of approval.
- Pre-qualify with multiple lenders to compare offers without affecting your credit score.
- Consider a co-signer with strong credit to enhance your loan terms.
- Explore secured loan options using collateral to reduce your APR.
Bad Credit Loan FAQs
1. Do personal loans build credit?
Yes! Consistently making on-time payments can improve your credit score over time.
2. Can I qualify for a loan with a 500 credit score?
Certain lenders, like Upstart or LendingPoint, may approve loans for borrowers with credit scores as low as 500 or even lower. Expect a higher interest rate.
3. Can I pre-qualify without affecting my credit?
Most lenders offer pre-qualification through soft credit checks, allowing you to explore terms risk-free.
Financial Freedom is Possible!
Bad credit doesn’t have to stand between you and the financing you need. The personal loans featured here are tailored to help borrowers like you access funds and build a path toward financial stability.
Need help choosing the right lender? Explore your options with free comparisons to find the bad credit loan that’s perfect for your needs!