At Experian, one of our priorities is consumer credit and finance education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our Editorial Policy.
In this article:
Many personal loan lending partners offer loans to borrowers who have bad credit. You might not receive a lending partner's lowest-advertised interest rate without great credit, but comparing lending partners and loan offers can help you find the best available option for your situation.
Lending partners may also define "bad credit" differently, and some may be more or less willing to work with borrowers who have low credit scores and negative marks in their credit histories.
In general, for the FICO and VantageScore credit scores that range from 300 to 850, any score below the mid-600s could be considered "subprime." More specifically, a score in the low- to mid-600s might be considered fair credit, while a score under in the 500s or lower may be called poor or very poor.
Here are five Experian partners that are top personal loan lending partners for borrowers with poor and fair credit scores.
Best Personal Loans for Bad Credit
Avant
Avant is an online lending partner that offers unsecured personal loans with 12- to 36-month repayment terms and loan amounts as high as $35,000. Most Avant borrowers have a credit score of 600 to 699. However, even if you have a lower score, it could be worth checking your eligibility online. It's fast, free and won't impact your credit score.
If you're approved for a loan, you may be able to get the funds sent to your bank account by the next business day. However, Avant's unsecured loans have an upfront administration fee as high as 4.75% that will be taken out of your loan disbursement.
LendingPoint
Est. APR
Term
Amount
Available loan amounts: $2,000 to $30,000
Est. monthly payment: $90 to $1,756
Grace period: 0 days
Application fee: $0
Loan Details
- Loans from $2,000 to $36,500 and no prepayment penalties
- Rates from 7.99% to 35.99% APR
- Check your rate without impacting your credit score
- Simple online application
- Funds available as soon as the next business day upon approval
- LendingPoint's innovative technology allows them to understand the individual creditworthiness of every applicant
- Terms from 24 - 72 months
- Fixed monthly payment and simple interest
- LendingPoint has thousands of five-star reviews on Trustpilot
- LendingPoint has an A+ rating from the Better Business Bureau
LendingPoint offers online personal loans for up to $36,500 with repayment terms ranging from two to six years. You can check your offers online without impacting your credit, and you could get your loan within one business day of approval. LendingPoint's loans may have an origination fee of 0% to 8% depending on your creditworthiness and state of residence.
Upgrade
Est. APR
Term
Amount
Available loan amounts: $1,000 to $50,000
Est. monthly payment: $30 to $2,206
Grace period: 15 days
Application fee: $0
Loan Details
- Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties
- Quick online application -- get pre-approved in just minutes
- Checking your rate won't impact your credit score
- Review multiple loan options so you can pick the amount and term that fits your budget and timeline
- With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free
Upgrade is an online lending partner that offers personal loans and a card that's linked to a personal line of credit. You can see if you qualify for either option with a soft credit check. The personal loans range from $1,000 to $50,000 with an origination fee of 1.85% to 9.99%, which is deducted from the loan proceeds.
Upgrade's loans have repayment terms of 24 to 84 months; the longer term could be a good option if you want a lower monthly payment, though a shorter term can help you pay less interest overall.
Upstart
Est. APR
Term
Amount
Available loan amounts: $1,000 to $50,000
Est. monthly payment: $31 to $2,262
Grace period: 15 days
Application fee: $0
Loan Details
- Loan amounts from $1,000 - $50,000
- APRs from 7.8% - 35.99% with loan terms of 3 or 5 years
- Won't affect your credit score
- You can have funds in as fast as 1 day
- You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.
Upstart is an online lending platform that stands out for its use of alternative data in underwriting new loans. While Upstart focuses on borrowers who have at least fair credit, it also offers loans to people who aren't scoreable at all.
The loan amounts can range from $1,000 to $50,000, with repayment terms of three or five years and a 0% to 10% origination fee. You can check to see if you qualify and review your loan offers without impacting your credit score. If you apply and are approved, the funds will be sent within one business day of when you sign your loan agreement.
OneMain Financial
Est. APR
Term
Amount
Available loan amounts: $1,500 to $20,000
Est. monthly payment: $54 to $905
Grace period: 7 days
Application fee: $0
Loan Details
- A+ from BBB, 4.8 Trust Pilot (64,000 reviews)
- 100+ years responsible lending
- Affordable, simple fixed terms, no prepayment penalty
- Complete our online application in minutes
- Money as fast as 1 hour after loan closing (see details below)
- We're here online or in person at more than 1,300 community branches across 44 states
OneMain Financial offers unsecured personal loans and auto title loans for up to $20,000. You can check your loan offers online, but you may need to visit a OneMain Financial branch to complete the loan application.
If you're approved for a loan, you may be able to choose repayment terms ranging from two to five years. The loans may be expensive because even the low end of the loans' interest rate range is high compared with what other lending partners offer. There could also be a large origination fee—up to 10% in some states—and you may be offered several types of credit insurance, which could increase your cost.
How Personal Loans Work
Personal loans are often installment loans with fixed interest rates. With an unsecured personal loan, you won't need to use a vehicle, home or other property as collateral for the loan. But that's also why it can be more difficult—and expensive—to get a personal loan when you have bad credit.
It may be easier to get a secured personal loan and you may qualify for more favorable terms if you offer collateral, but you also risk losing your property if you can't afford the payments.
When you take out a personal loan, you'll receive the entire loan right away—often via a direct transfer into your bank account. Some lending partners charge an upfront fee that's taken out of the loan proceeds, but you repay the entire loan amount, generally with monthly payments.
You can find personal loans from different types of lending partners, including traditional banks and online-only lending partners. Some lending partners may focus on lending to specific types of borrowers (such as those with bad credit) and also may offer personal loans for specific reasons, including consolidating credit card debt.
How to Choose a Personal Loan Lending Partner
There are a few considerations to keep in mind as you try to identify a good lending parter and get a personal loan:
- Review minimum requirements. Your creditworthiness can impact your eligibility, rates and loan amount, but lending partners also often have minimum requirements you'll have to meet to be considered at all. For example, some lending partners might not offer loans in your state—you can rule these out right away. Regardless of your credit score, you also might need to have a minimum debt-to-income ratio and a verifiable bank account.
- Learn about the fees. Lending partners may charge upfront origination or administration fees that are taken out of your loan amount. Consider how the fee will impact how much you have to borrow and your total cost of borrowing. The fee will be incorporated in your loan offers' annual percentage rates (APRs), which makes it easier to compare offers.
- Check loan offers. Many personal loan lending partners let you check your estimated loan offers with a soft credit inquiry—the type that doesn't impact your credit scores. Start with these lending partners to see if you're likely to qualify and to determine which lending partner may offer you the best loan.
Once you've gotten several loan offers, you can complete an application with the lending partner that gives you the most favorable terms. Generally, you'll need to agree to a hard credit check at this point. You may also need to share verification documents, such as copies of a government-issued ID and pay stubs.
Quickly Compare Multiple Lending Partners and Offers
Rather than going lending partner by lending partner to compare loan terms yourself, Experian's CreditMatch™ personal loan marketplace lets you quickly compare lending partners and loan offers. You can sort the results by lowest interest rate, monthly payment and repayment term.
If you create an account and log in, you may also be able to submit a single soft credit prequalification request. Experian will then show you personalized loan offers from multiple lending partners. You'll have up to 30 days to compare these offers and choose the best fit.