Writer: Eric Bank
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
Key Takeaways
Our editors have vetted subprime lending networks to find the most reputable options available.
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MoneyMutual is our top personal loan network for bad credit.
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24/7 Lending Group is best for large loan amounts of up to $35,000.
In this era of smoke and mirrors, it can be tough to spot legit personal loans for bad credit. After all, social media seems to push 20 questionable options for every real answer.
Moreover, folks with subprime credit already face challenges finding loans that won’t saddle them with high costs or worse.
BadCredit.org strives to provide honest reviews of trustworthy products and services specifically geared to consumers with credit challenges. Here is our roundup of reliable personal loan networks that deliver valuable services without a fee or harm to your credit score.
Legitimate Personal Loan Providers For Bad Credit
These seven companies can connect you to direct providers of personal loans. All have withstood the test of time, delivering thousands of loans each year to folks with no, limited, or poor credit. Loan amounts range from $100 all the way up to $50,000.
1. MoneyMutual
- Short-term loans up to $5,000
- Online marketplace of lenders
- Funds available in as few as 24 hours
- Simple online form takes less than 5 minutes
- Trusted by more than 2 million customers
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $5,000 | Varies | Varies | See representative example |
MoneyMutual remains the best personal loan network for consumers with poor credit. It can prequalify your loan request in seconds and immediately connect you to a suitable personal loan offer. You must meet age, residency, income ($800/month), and bank account requirements.
- Personal loans from $500 to $35,000
- All credit types are considered and welcome
- Simple, no credit impact form
- Helping consumers since 2001
- 4.7 out of 5 Trustpilot rating with 2,000+ reviews!
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $35,000 | 5.99% – 35.99% | 60 Days to 72 Months | See representative example |
24/7 Lending Group can get you multiple personal loan quotes when you need to borrow between $500 and $35,000. This bad credit loan matching service has helped consumers with all types of credit since 2001. Once you receive loan approval, you can collect your money within 24 hours or less.
3. CashUSA.com
- Loans from $500 to $10,000
- Receive a loan decision in minutes
- Get funds directly to your bank account
- Use the loan for any purpose
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% – 35.99% | 3 to 72 Months | See representative example |
CashUSA.com can quickly prequalify you for a personal loan of a moderate amount even if your credit is poor. You must be 18 or older, a US resident, and earn at least $1,000/month after taxes. You also need an active checking account in your name, a valid email address, and a working phone number.
4. Avant
- Personal loans of $2,000 to $35,000
- Compare rates in 3 minutes without affecting your credit
- 550 minimum credit score required
- One form taps into 22 lenders at once
- Powered by Credible
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $1,000 to $35,000 | 9.99% – 35.99% | 24 to 60 Months | See representative example |
Avant lets you check your loan options without affecting your credit score. Personal loans range from $2,000 to $35,000, with fixed rates and repayment terms of 24 to 60 months. If approved, funds are generally delivered the next business day, although the decision process may take longer if additional documents are required.
- Personal loans of up to $50,000
- All credit types welcome
- Receive funds in as little as 24 hours
- Fast approval decision
- Safe and secure application
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $50,000 | As low as 6.40% | Varies | See representative example |
The Loan for Personal lending network can instantly prequalify you for a personal loan offer despite your low credit score. The application only takes a few minutes to complete, after which you’ll be redirected to the best lender based on the information you provided. There’s never any obligation to accept the loan offer.
- Loans from $500 to $10,000
- Get connected with a lender
- Simple form & quick funding
- Get your money as soon as the next business day, if approved
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% – 35.99% | 3 to 60 Months | See representative example |
BadCreditLoans.com serves consumers with poor credit who need a personal loan. To prequalify, you must demonstrate enough income to afford the monthly payments. You can also apply for a revolving line of credit for extra flexibility.
- Loans from $250 to $35,000
- Large lender network
- Fast loan decision
- Use the loan for any purpose
- Funding as soon as one business day, if approved
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $250 to $35,000 | 5.99% – 35.99% | 3 to 72 Months | See representative example |
PersonalLoans.com is the best personal loan network for large loans. It can quickly prequalify you for an unsecured personal loan amount as high as $35,000. To qualify, you must earn at least $2,000 per month and own an active bank account in your name. PersonalLoans.com can also point you to other financial services, including credit monitoring, debt settlement, and credit repair.
What Is Bad Credit?
Your credit score is an assessment of your creditworthiness based on information in your credit reports. FICO, the predominant consumer credit scoring system, defines scores below 580 (on a range of 300 to 850) as “very poor.” VantageScore calls scores below 600 “poor” or “very poor.”
A low score can narrow your personal loan options and lead to higher interest rates and fees. Lenders may also consider factors not included in your score, such as your income and debt-to-income (DTI) ratio, when reviewing your application.
FICO Score Factors
- Payment history
- Amounts owed
- Credit history length
- New credit
- Credit mix
FICO scores are primarily based on your payment history, amounts owed, length of credit history, credit mix, and recent credit applications. Paying bills on time carries the most weight, while high credit utilization and repeated hard credit inquiries can work against you.
You can improve your credit over time by paying bills on time, keeping debt levels low, and limiting unnecessary credit applications. It’s also smart to review your reports for inaccurate negative information before applying for a loan.
You can get free reports from all three major credit bureaus at AnnualCreditReport.com and dispute any errors you find.
How Does a Personal Loan Work?
Personal loans, or signature loans, usually do not require collateral — just your pledge to repay the loan according to the terms of the agreement. These are a type of installment loan in which your payments stretch over months or years.
Even with bad credit, you can still borrow small to midsize amounts from an online personal loan lender. Some lenders operate through networks, while others lend directly to you.
You can use the proceeds from a personal loan any way you want. One popular choice is to consolidate your debt by paying off existing loans and credit cards, leaving just one manageable monthly payment.
Personal loans generally have a repayment term that ranges from three months to eight years. You can control your monthly repayment amount by selecting the loan term — longer-term loans cost less per month, but the total cost is higher because you’ll pay more in interest charges over the life of the loan.
You may occasionally come across secured personal loans that require you to post collateral.
| Feature | Unsecured Personal Loan | Secured Personal Loan |
|---|---|---|
| Collateral required | No | Yes |
| Examples of collateral | None | Savings, a vehicle, or other eligible property |
| What affects approval | Credit, income, existing debt, and payment history | Credit and income, plus the value of the collateral |
| Potential advantage | You don’t risk losing an asset | Collateral may improve your approval chances or loan terms |
| Primary risk | Rates and fees may be higher, particularly with bad credit | The lender may take the collateral if you don’t repay |
| Availability | Most personal loans are unsecured | Offered by fewer lenders |
The APRs for subprime personal loans usually top out at 36%. Don't be surprised if the lender slaps on an origination fee of 5% or more.
How Do I Apply For a Personal Loan?
The easiest way to get a bad credit personal loan is to use a loan network that specializes in helping subprime consumers find willing direct lenders. We reviewed seven such networks earlier.
Using a lending network starts by completing a loan request form with information about yourself, your income, and your housing costs. The lender matching service will quickly decide whether to prequalify you for a personal loan. To be eligible, you must:
- Be a US citizen or permanent resident
- Be age 18 or older
- Have a specified amount of monthly income, either from a job or government benefits
- Have a checking account in your name
- Have a valid email address and phone number
If you successfully prequalify, the service will match you to one or more direct lenders willing to take your loan application. The service is free, does not perform a hard credit check, and imposes no obligation to apply for or accept a loan.
Once prequalified, you can proceed by applying for a personal loan from a recommended lender. You may have to provide additional information and documentation with your application.
Most direct lenders will pull your credit when reviewing your loan application. Network lenders are accustomed to working with any type of subprime borrower, so a bad credit score will not necessarily prevent you from getting a loan.
If the direct lender approves your loan, you can e-sign the agreement and receive the proceeds in your checking account within a day or two. Typically, the lender will electronically collect your monthly payments from your checking account.
How Can I Tell Whether a Lender Is Legit?
One of the best ways to gauge a lender's legitimacy is through reviews such as this one. We only review lenders we believe to be trustworthy and have a track record long enough to instill confidence.
We recommend checking out any lender on your own before you move forward. First, make sure the site is secure (in other words, the URL should show a padlock). You can also check the domain registration date, and be extra careful with brand-new sites that don't have an established history.
The lender should have a physical address, not just a P.O. Box number. You should also check whether it belongs to the Better Business Bureau and has a positive rating. A Google search on the company should find (hopefully constructive) reviews and customer comments.
Another helpful source of information is your state's attorney general's office. Contact it to see whether the company is registered and has had any legal problems.
You'll also want to be alert to loan scams. Some common tactics include:
- Requiring an upfront payment before accepting your application
- Not performing a credit check
- Pressuring you for a fast decision
- Ask for untraceable payments, such as cash or gift cards
If a potential lender exhibits these behaviors, walk away and find a more suitable loan provider.
What Is the Easiest Loan to Get With Bad Credit?
There are surprisingly many loan options available to subprime borrowers. However, some come with high interest rates, so make sure to research thoroughly before moving forward.
Payday Loans
If you receive a regular paycheck, you may qualify for a payday loan without a credit check. These loans are available at brick-and-mortar storefronts and online websites. We regard a payday loan as a short-term emergency loan, requiring you to repay the entire loan amount plus interest on your next pay date.
Payday loans are costly and commonly carry triple-digit APRs. For example, the Consumer Financial Protection Bureau says a typical fee of $15 for every $100 borrowed on a two-week payday loan equates to an APR of nearly 400%.
The latest comparable analysis found typical APRs ranging from 140% in Oregon to 662% in Texas for states offering this type of single-payment loan.
| State | Typical APR | State | Typical APR |
|---|---|---|---|
| Alabama | 456% | Missouri | 652% |
| Alaska | 424% | Nevada | 548% |
| California | 460% | North Dakota | 521% |
| Delaware | 639% | Oklahoma | 424% |
| Florida | 293% | Oregon | 140% |
| Idaho | 475% | Rhode Island* | 261% |
| Indiana | 372% | South Carolina | 391% |
| Iowa | 247% | Tennessee | 460% |
| Kansas | 391% | Texas | 662% |
| Kentucky | 450% | Utah | 543% |
| Louisiana | 410% | Washington | 391% |
| Maine | 228% | Wisconsin | 537% |
| Michigan | 356% | Wyoming | 316% |
| Mississippi | 572% |
These are the latest comparable state figures for a $400 single-payment payday loan, generally due in 14 days. California, Louisiana, Mississippi, Oregon, and some states using regulator averages involve different loan amounts or terms.
Many payday borrowers can't repay on time and must roll their loans over multiple times, which causes the cost of the loan to skyrocket. It's entirely possible to fall into a debt spiral that ends in bankruptcy court.
We recommend using payday loans only for true emergencies, and paying them back as fast as you can. If possible, look into another borrowing option first.
Pawnshop Loans
Pawnshop loans are about as easy to get as possible. Just bring some personal items (e.g., a camera, watch, musical instrument, jewelry, etc.) to the pawnshop and walk out 10 minutes later with cash. In most cases, you need only a state ID card, although some items may require additional documentation.
These loans are very expensive. You will face stiff fees and receive only 30% to 50% of your property's value. If you don't repay the loan by the due date, the pawnbroker will keep your property and attempt to sell it.
Title Loans
You can use your vehicle to generate fast cash through a title loan. As its name suggests, this loan uses your car as collateral. If you don't repay on time, the lender will seize the title, repossess the vehicle, and attempt to sell it.
Only cars with clear titles (i.e., with no outstanding loans) are eligible. APRs can exceed 300%, and there's a 20% chance that you'll lose your vehicle by defaulting on the loan. You can usually arrange a title loan in a few hours, assuming you have all the necessary documentation.
Credit Union Loans
If you need to borrow a small amount, but payday loans terrify you, consider a payday alternative loan (PAL) from a credit union. Two versions are available with slightly different characteristics.
You must belong to the credit union to be eligible for this type of loan, but at least with a PAL II, you don't have to wait once you join.
Secured Personal Loans
Some lenders provide secured personal loans to folks who don't qualify for an unsecured loan. You must pledge collateral to get a secured personal loan. Types of collateral for secured loans may include cash, personal property, and securities
As with their unsecured loan cousins, you repay a personal secured loan in monthly installments. The interest rate on secured loans should be below that of unsecured loans because the collateral reduces the lender's risk of loss.
Can I Get a Legit Personal Loan With a 500 Credit Score?
Yes, the lender-matching websites reviewed above welcome folks with any credit score. While they can't guarantee to find you a willing direct lender, their networks contain many personal loan providers who are comfortable working with subprime borrowers.
Network lenders often look for alternative ways to approve loans. For example, you may qualify for a personal loan despite your bad credit if your income comfortably exceeds your expenses. A cosigner can also enable you to obtain a personal loan.
What Should I Do If I Suspect a Lender Is Not Legit?
Trust your instincts: Don't do business with any company that seems questionable. You have several legitimate lenders to choose from, so it's best to move on from any option that gives you pause.
If you fall for a loan scam despite your best precautions, collect all the evidence and documents, including emails, agreements, and bank account statements. File reports with your local police department, the Federal Trade Commission, your state attorney general, and the BBB.
If a lender gives you pause, walk away. You have other legitimate options, and no loan is worth risking your money or personal information.
You should also review your credit report for signs of identity theft, especially if you shared personal details with the lender, such as bank account information or your Social Security number. Look for unfamiliar accounts and charges you didn't authorize.
Can I Rebuild Credit With a Personal Loan?
The typical personal loan lender reports your payments to at least one major credit bureau. Pay your loan and other debt obligations on time, and your credit score should improve, although it may take up to a year to see significant progress.
Payday loans do NOT report payments and won't help you increase your credit score. Neither do pawnshop loans. It's another reason to avoid these unless you need an emergency loan and have no other alternatives.
Borrow Only From Legitimate Lenders
We've identified several legit personal loans for bad credit that are safe choices for anyone worried about fraudulent online lenders. And you have every right to worry, as cybercrime costs Americans billions each year.
The advice we've provided about recognizing, avoiding, and reporting loan scams will hopefully help you avoid fraudsters waiting to pounce. Please share this information with family members, especially seniors, whom you feel may be vulnerable to online scams. Safe borrowing should be everyone's concern.
