Writer: Adam West
Editor: Lillian Guevara-Castro
Reviewer: Danielle Spurlin
Key Takeaways
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MoneyMutual: Best overall unsecured loan for bad credit.
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24/7 Lending Group: Best for large loan amounts of up to $35,000.
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An unsecured loan doesn’t require you to pledge a car, home, or other asset, but your credit, income, and debts can still affect your options.
You can get the money you need without risking your valuable possessions by opting for a loan that doesn’t require collateral. These are known as unsecured loans, which means you don’t have to pledge any assets for approval.
If you have bad credit, you might think accessing this type of loan is impossible. However, thanks to the growth of online lending networks, that’s no longer true.
Below, we will list our top-rated networks that specialize in no-collateral loans for bad credit.
Unsecured Personal Loans for Bad Credit
Online lending networks collaborate with numerous lenders nationwide to provide a variety of loan packages for applicants with diverse credit histories.
When you submit your loan request to each network, the form will reach the desk of all of the lenders that partner with that network. In a matter of minutes, each lender will make a loan decision. If you qualify, you could receive multiple loan offers to choose from.
After completing the loan paperwork on your chosen lender’s website, you could receive your money via electronic transfer to a linked checking account within 24 hours.
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 maintains one of the largest online networks of lenders, many of whom focus on bad credit loans. With so much competition on the network, you could find yourself with an unsecured personal signature loan offer that has a loan term, interest rate, and monthly payment that is better than you expect.
If you’re 18 or older, have a checking account, and can prove you’re employed with an income of at least $800 a month, you’re qualified. However, individual lenders might have additional requirements for approval.
- 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 |
The 24/7 Lending Group network of lenders specializes in unsecured loan options for bad credit — or any kind of credit, for that matter. If you qualify, the network could send you multiple loan offers to choose from within a few minutes after you submit your loan request.
When you apply, you will need to supply a valid state driver’s license number, your Social Security number, a home or cellphone number, checking or savings account information in your name, a home address, and employment or benefits income information. Applicants must be at least 18 years old and a U.S. citizen or permanent resident.
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 |
Since 2004, CashUSA.com has helped connect consumers with lenders willing to give them a second chance at building a solid credit history. Every lender on the network reports your payment history to at least one credit bureau, which means you can improve your credit score with responsible behavior.
To qualify, you must be at least 18 years old and a U.S. citizen or permanent resident with proof of at least $1,000 in monthly after-tax income. You must also have a checking account in your name and provide work and home phone numbers, as well as a valid email address.
- 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 lives up to its name and states that its lenders often extend loan offers to consumers who cannot find loans elsewhere. The network accepts loan requests from applicants with all types of credit and considers installment loan requests for up to $10,000.
Not everyone will qualify for a large loan. Each offer has its unique terms, interest rates, loan amounts, and finance charges. It’s crucial to carefully examine each offer before making a decision.
- Get up to $5,000 as soon as tomorrow
- Easy to use & only takes a few minutes
- Instant answers from lenders who want to work with you
- Funds deposited directly into your account
- All credit types welcome — good or bad
- See official site, terms, and details
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $100 to $5,000 | Varies | Up to 180 Months | See representative example |
LendingStore.com provides access to a wide network of lenders that work with borrowers of any credit background. You can apply in minutes and don’t need to put down any collateral to secure funding.
The company has helped people match with lenders for more than 20 years, and it understands the needs of borrowers — that’s why its lenders can deposit funds as soon as the next day. Applicants do need to be employed, have a bank account, and have an income of at least $800 per month to qualify.
6. 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 offers unsecured installment loans as small as $2,000 or as high as $35,000 to qualified applicants. Avant offers loans for home improvement, repairs, and renovations, as well as debt consolidation, emergencies, and vacations.
Unlike other companies on this list, Avant isn’t a lender network; it’s a direct loan servicer through a partnership with WebBank. Avant reports your loan to all three credit bureaus, which can enhance your credit with timely payments.
7. Upstart
- Personal loans starting at $1,000
- Find loans you prequalify for, complete your application, and close your loan
- Loans for 300+ FICO Scores
- Checking rates doesn't impact your credit score
- Powered by Credible
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $1,000 to $75,000 | 6.3% - 35.99% | 3 or 5 Years | See representative example |
Upstart offers unsecured loans of up to $50,000, but only applicants with good to excellent credit will qualify for that much. People with poor credit scores below 600 are more likely to be approved for loans closer to the lowest amount available, which is $1,000.
But, there’s no collateral, cosigner, or co-applicant required, and the process of applying is quick and easy. Loan funds can be deposited as soon as today and cleared through your bank by tomorrow.
- 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 |
Loan for Personal has lenders in its network that specialize in loans for bad credit borrowers. That means you don’t have to have a sterling credit score or any collateral to apply.
With one application, you can receive multiple loan offers quickly, and you can decide if the interest rate and terms are right for you. And just because you receive an offer doesn’t mean you have to accept it.
- Personal loans up to $5,000
- Access to a network of lenders
- Funds could be yours in as little as one business day
- Quick, easy online application
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| Up to $5,000 | Varies | Varies | See representative example |
One Loan Stop is a straightforward network that connects borrowers with lenders that can offer up to $5,000 in funding. Fill out one fast application, and lenders in the network will respond with offers.
Loan funds can be deposited as soon as tomorrow, and lenders in the network have plenty of experience working with consumers who have credit issues, so you can leave the collateral at home.
What is a No-Collateral Loan for Bad Credit?
A no-collateral loan is also known as an unsecured loan. This means that you do not have to provide any items of value as a security deposit for loan approval.
| Secured loan | No-collateral (unsecured) loan | |
|---|---|---|
| What backs the loan? | An asset, such as a vehicle or home | No asset is pledged |
| Examples | Auto loans, mortgages, pawnshop loans, and title loans | Unsecured personal loans |
| If you don’t repay | The lender may repossess or foreclose on the pledged asset | The debt may go to collections, and the lender may take legal action |
How long a creditor can sue over an unpaid debt depends on state law and the type of debt.
Having a collection account on your credit record can make it tough to find another personal loan offer. You’ll need to demonstrate responsibility with handling a loan before you can qualify again.
An unsecured loan may not put your valuables at risk if you can’t repay it, but it can still damage your financial reputation, which can be every bit as valuable as jewelry or a vehicle.
How Do I Get a No-Collateral Loan for Bad Credit?
Most lenders try to take on as little risk as possible. A secured personal loan with added collateral gives them the peace of mind that they can at least sell the collateral to recover any money lost if the borrower does not repay the debt.
But that doesn’t mean a no-collateral loan is out of reach. With the lending networks mentioned above, you can find no-collateral personal loan options even with bad credit or no credit at all.
The fierce competition among online lenders makes it almost impossible to demand collateral for every loan. To stay in business, lenders must offer loans, which translates into more affordable terms and relaxed standards for you.
Instead of requiring collateral, lenders might include an origination fee, a higher interest rate, or other charges to make the loan worthwhile.
As with most things in life, money talks. If a lender can make more money off your loan by looking past your credit score, chances are it will.
With the lending networks listed above, you can submit a single loan request through each network. That request is shared with every lender in the network. Each one will use an automated underwriting system to make a near-instant decision on your request.
Within minutes of submitting your request, the lending network could respond with an email that contains one or more loan offers. If you find an offer that you like, you can accept the terms, and the network will forward you to the lender’s website.
You’ll wrap up the loan paperwork on that site, and then the lender will send your borrowed funds to a linked checking or savings account by the following business day.
A lending network is typically free to use. The network receives a referral fee from lenders for every loan they approve through the network.
Once you accept a loan offer, your interaction with the network usually ends there. From that point on, you’ll make monthly or bi-monthly payments directly to the lender until the balance is paid off.
What Credit Score is Needed for an Unsecured Loan?
Lenders don’t publish minimum score requirements for loan approval for several reasons. The biggest reason is that your credit score isn’t the only factor that determines your eligibility. As a result, lenders don’t want applicants to think that meeting a certain credit score requirement will guarantee approval.
Even if you have a good credit score, you might still face rejection when applying for a loan. Some online lender networks only permit one active loan at a time. So, if you try to apply for another loan, you won’t qualify.
You might encounter someone with good credit but lacking enough verifiable income to qualify for a loan. That same person might also have a recent late payment or unusual account activity that deters a lender.
That said, your credit score still plays a major role in determining your eligibility. PersonalLoans.com states that you must have a score of at least 580 to qualify. Other networks, including BadCreditLoans.com, state that they often accept loan applications from consumers who cannot find loan offers elsewhere.
Your FICO score can range from 300 to 850. A poor credit score is anything at or below 580, but there is a wide gap between 300 and 580. While you may find loan offers if you’re in the 550 range, you will struggle to find anything if your score is in the 400s.
| What lenders consider | Why it matters |
|---|---|
| Credit score and history | Help lenders assess how you’ve handled past borrowing |
| Income | Shows whether you have money coming in to repay the loan |
| Existing debts | Affect how much room you have in your budget for another payment |
| Loan amount and term | Influence the monthly payment and the lender’s risk |
A lower score may limit your options or lead to a higher APR, but lenders also consider the other factors above.
What is the Average Interest Rate of a Bad Credit Loan?
Interest rates can change quickly due to the current economic climate, shifts in the volume of loan applications received by banks, credit unions, or other lenders, or changes in the Federal Reserve’s base interest rates.
If your credit is poor, expect your interest rate to be much higher than average. The estimated APR can increase significantly for those with the lowest FICO Scores.
| Credit score | Average offered APR |
|---|---|
| Excellent (800+) | 15.34% |
| Very good (740–799) | 17.46% |
| Good (670–739) | 22.70% |
| Fair (580–669) | 27.52% |
| Poor (under 580) | 30.51% |
The cost of an unsecured loan depends on the lender, your credit and income, the loan amount, and the repayment term. When comparing offers, look at the APR, any origination fee, the monthly payment, and the total amount you’ll repay. A low monthly payment can still make for an expensive loan if it stretches repayment over several years.
Payday advance centers, found in nearly every city and town across America, offer very short-term loan options that typically last between two weeks and a month. These lenders rarely conduct a credit check or concern themselves with your credit score.
Instead, if you can show that you have the income to pay the loan back in full (and with interest) between 15 and 30 days, you are likely to be approved.
But that isn’t necessarily a good thing. The average interest rate on a cash advance loan is above 300% APR — and if you cannot pay the loan in full within the agreed-upon time frame, the rate can climb into the four digits. This has led to many payday loan horror stories over the last decade.
You can use our tool to help see what a loan might cost you:
What’s the Easiest Loan to Get with Bad Credit?
Remember, easier isn’t always better. Research thoroughly and choose a loan you can comfortably manage. If not, you could end up with more issues than solutions in the long run.
- Loans through an online lending network: The networks listed above let you submit one loan request that may connect you with a lender willing to consider bad credit. If you receive an offer you like, you’ll finish the paperwork with the lender. Funding may be available as soon as the next business day, depending on the lender and when you’re approved.
- Unsecured loans from a direct lender: Instead of submitting a request through a network, you can apply with an online lender or credit union directly. You’ll receive that lender’s decision and, if approved, one offer to evaluate. Compare its APR, fees, and monthly payment with other options before accepting.
- Payday loans: These often have fewer credit requirements, and some lenders don’t use a traditional credit check. But in return for the convenience, you may pay substantial fees. Payday-loan fees can range from $10 to $30 for every $100 borrowed, depending on state law, but $15 per $100 is common. If you can’t repay on time, a rollover, where permitted, adds another fee while leaving the original balance due.
A low credit score won’t automatically disqualify you from every unsecured loan. The easiest offer to obtain, though, may not be the most affordable, so compare the total repayment cost before you commit.
How Can a Personal Loan Help Build My Credit Score?
Most consumers do not realize that they actually have multiple credit scores under their name. You have multiple FICO scores as well as scores from each of the three major credit reporting bureaus — TransUnion, Equifax, and Experian.
Your credit scores are shaped by the information that lenders provide to the credit bureaus. This includes details from any loans you have, such as auto loans, mortgages, personal loans, or student loans, with lenders reporting your monthly payment history to one or all of the bureaus.
That data is recorded in your credit profile and used to calculate your credit score.
This means that your payments for a personal loan will either help or hurt your credit score. If you make on-time payments, that positive reporting will push older, negative data further down your credit history. As you continue to record positive information, your credit score will improve.
Depending on how bad your credit score is — and how many recent negative items you have on your credit file — you may see quick improvement. On the flip side, you can also further damage your credit score if you miss payments or default on your personal loan.
Consider this: a single loan payment that’s 30 days late can drop your credit score by as much as 100 points. Moreover, this late payment can stay on your credit record for up to seven years.
Other activity tied to your personal loan, such as charge-offs, hard inquiries, and late payments, can also lower your credit score.
But do not let these potential negatives deter you from looking for the personal loan you need. As long as you make the minimum loan payment and always make on-time payments, you will only work to improve your credit score.
With a better credit rating, you could qualify for more affordable loans down the road —including auto loans, student loans, or mortgage loans.
Can You Get a Personal Loan with a Credit Score of 550?
A credit score of 550 falls firmly in bad credit territory — but that does not mean that you are disqualified from a loan.
While your FICO score can range between 300 and 850, any score at or below 580 is considered bad credit. While some lenders won’t consider an application from someone who is below 580, many lenders will.
From our list of online lender networks above, only PersonalLoans.com states that it requires a credit score of 580 or greater for eligibility. Other networks state that they will consider a loan request from consumers with all kinds of credit, with BadCreditLoans.com and CashUSA.com, even going so far as to say that they will consider your request even if you have a bankruptcy on your credit file.
Even if your bad credit score leaves you unable to find a loan through traditional lenders, you can consider a short-term loan through a cash advance that will not disqualify you based on your credit history.
These loans should be a last resort because they come with extremely high interest rates and finance charges. However, most merchant cash advance lenders overlook the credit check entirely and will approve your loan if you can prove you have the income to repay the debt within 15 to 30 days.
This is technically not a personal loan, though. A personal loan — also referred to as a signature loan — is typically an installment loan that allows you to pay off your debt through a series of payments (or installments).
You will not make payments with a cash advance. Instead, you will repay your lender in one lump sum — with interest included — in one month or less. This is typically seen as an emergency loan or a bridge between paydays.
If you need a larger sum of money and more time to repay the debt, you should consider a bad credit personal loan from one of the lending networks listed above. Even with a score of 550, the competition between lenders on these networks could lead to you receiving one or more loan offers in a matter of minutes.
If that fails, you can consider getting a cosigner who is willing to vouch for your ability to repay the loan. Just remember that a cosigner will also take the credit score hit if you miss a payment or default on your loan. That is a level of responsibility that you should not take lightly.
What are the Eligibility Requirements for a Bad Credit Personal Loan?
When most people think about applying for a loan, they tend to wonder if their credit score is good enough. But the truth is that several other factors aside from your credit score could derail your hopes of getting a loan.
Each of the lending networks listed above has different requirements for loan application consideration. While there may be slight differences in these requirements, some are standard. They include:
- You must be 18 or older (19 in some states)
- You must be a U.S. citizen or legal resident
- You must have an active checking or savings account in your name
- You must provide some sort of identification (driver’s license number, Social Security number, or other ID)
- You must have a valid current address
- You must provide some sort of contact information (home phone number, cell phone number, work phone number, and/or an email address)
- You must have verifiable income that meets the lending network’s requirements.
The income requirement varies greatly among the networks. For example, MoneyMutual requires that you have at least $800 in verifiable monthly income. CashUSA.com requires at least $1,000 per month after taxes. CashAdvance.com only requires that you have enough income to cover the cost of your loan.
Remember that the source of income is not limited to a job. Most lending networks will consider the money you receive from a structured settlement, government benefits, Social Security, a retirement account, student aid, child support, or other predictable, ongoing monthly payments.
When you’re ready to apply for a loan, be sure to list every source of monthly income on your application. The more income you can document, the stronger your application may appear to lenders.
Have all your necessary information ready when you apply. This includes the data required from the list above. Doing so will streamline the application process, allowing you to complete the paperwork faster and receive your funds sooner.
What Are My Options if I’m Denied a Loan?
You could be denied a loan for several reasons. To decide your next step, you need to know why you were declined. If a lender denies your application, it generally must provide an adverse-action notice stating the reasons or telling you how to request them. Review that notice before deciding what to do next.
- Correct an application error. Your application may have been rejected because of something small, such as a misspelling. If you decide to resubmit it, that may be easy to fix.
- Address a larger qualification issue. A low credit score, too much existing debt, or insufficient income may require you to regroup before reapplying. You could use that time to improve your credit or pay down debt.
- Consider a different lender or network. Lending standards vary, so you may have options elsewhere. Check whether you can review potential offers without a hard credit inquiry before submitting another application.
Whatever path you take, avoid immediately applying to numerous lenders. Multiple hard credit inquiries could affect your score, while the reason for the original denial may still need to be addressed.
Compare No-Collateral Loans for Bad Credit Online
Many people assume their credit score disqualifies them from no-collateral loans for bad credit, but that simply isn’t true.
With the explosion of online loan options, including online lending networks, it has never been easier to find a personal loan despite having a bad credit score. In fact, the networks above can help you receive multiple loan offers to choose from.
After you receive your loan, make sure you repay the debt in full and on time. Doing so will help you build, or rebuild, your credit so you can find more affordable loans in the future.
