Writer: Brittney Mayer
Editor: Lillian Guevara-Castro
Key Takeaways
Finding the right second chance starts with your borrowing needs. These are my top picks by category:
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24/7 Lending Group: Best for checking potential personal loan options.
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Milestone® Mastercard®: Best for rebuilding credit without a security deposit. See rates & fees
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Auto Credit Express: Best for finding dealerships that work with bad credit borrowers.
In a quote often misattributed to Einstein, insanity is defined as repeating the same action while expecting a different result. But some lenders recognize that consumers with less-than-stellar credit histories deserve a second chance — and sometimes, you really can get a different result.
Below, we review our picks for installment loans, short-term loans, credit cards, and auto financing to help you move past the earlier credit mistakes.
Personal | Credit Card | Auto
Best Second-Chance “Personal” Loans
One of the best ways to ensure you make the most of your second chance at financing is to diligently make on-time payments to build a positive payment history. As 35% of your FICO score, a good payment history can make a big credit score difference. For most consumers, the most affordable — and, thus, easiest to repay on time — type of personal loan is an installment loan.
Named for the series of installments (i.e., monthly payments) used to repay the loan, most personal installment loans extend anywhere from three months up to six years.
Installment loans are available in various amounts, making them a good option for most purchases, with our top-rated options offering loans up to $50,000 to qualified applicants.
- 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 |
2. 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 |
- 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 |
- 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 |
- 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 |
+See More Personal Loans for Bad Credit
It’s important to consider each loan factor when comparing quotes for personal installment loans, including the loan term, monthly payment, and APR. That’s because the loan with the lowest interest rate or monthly payment may not always be the least expensive; how many of those payments you make will also play a role in the total cost of your loan.
Here’s a simple way to look at it: interest is what you pay to borrow money. The longer you keep that money, the more interest you’ll owe. That means a longer loan term usually makes the loan more expensive overall.
So while a lower monthly payment may sound appealing, paying a bit more each month can sometimes save you money.
Best Second-Chance “Credit Card” Loans
Other than short-term loans with triple-digit APRs, credit cards are likely the easiest type of credit to obtain when you need a second chance at financing. While this means these cards will generally have higher-than-average APRs and may come with extra fees, they can be more affordable than short-term loans and, as revolving credit lines, can be used and repaid more than once.
The three main types of credit cards available to those who need a second chance are unsecured subprime cards, closed-loop store cards, and secured credit cards. Subprime and store cards usually have higher interest rates, while secured cards will require a security deposit to use. Our list of top credit cards for poor credit includes a mix of credit card options to help you compare.
- Guaranteed $700 credit limit if approved.
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
- Don’t Have Perfect Credit? No Problem!
- Join over a million consumers who are working on building their access to credit.
- Zero Fraud Liability – Peace of mind that comes with having a Mastercard.
- Get the credit you deserve, even with less-than-perfect history.
- No security deposit, and a path to better credit.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 8 minutes | See terms | Yes | 9.0/10 |
- PREMIER Bankcard credit cards are for building credit.
- Start building credit by keeping your balances low and paying all your bills on time each month.
- When you need assistance our award-winning US-based Customer Service agents are there to help.
- Credit Limit Increase Eligible after 12 months of consistent responsible account management.
- We report monthly to the Consumer Reporting Agencies to help you build your credit.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 4 minutes | See Provider Website | Yes | 9.0/10 |
- Up to $1,000 Initial Credit Limit
- See if you Pre-Qualify with No Impact to your Credit Score
- Less than perfect credit? We understand. The Surge Mastercard is ideal for people looking to rebuild their credit.
- Unsecured credit card requires No Security Deposit
- Perfect card for everyday purchases and unexpected expenses
- Monthly reporting to the three major credit bureaus
- Use your card everywhere Mastercard is accepted at millions of locations
- Enjoy peace of mind with Mastercard Zero Liability Protection for unauthorized purchases (subject to Mastercard guidelines)
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 5 minutes | 35.90% Fixed | Yes | 8.5/10 |
+See More Credit Cards for Bad Credit
One of the most important things to look for in a second-chance credit card is one that provides an interest rate grace period. The grace period gives you the time between when a charge is made and when the bill is due to pay off your balance before interest starts to accrue.
This means if you can pay off your purchases before the end of the grace period, you won’t be charged interest on those purchases. Keep in mind that grace periods only apply to new purchases; transactions considered to be balance transfers or cash advances will start accruing interest as soon as the charge posts to your account.
Best Second-Chance “Auto” Loans
While second-chance auto loans aren’t the easiest type of credit to qualify for, they may be more within reach than you expect. The reason is simple: auto loans are secured by the vehicle itself. If you don’t repay the loan, the lender can repossess and sell the car, which helps reduce the lender’s risk.
That reduced risk is what makes second-chance auto loans attainable for a range of credit scores, and is also part of the reason auto loans typically have lower APRs than other credit products for the same credit demographic. There are generally no set credit score requirements for second-chance auto loans, but you’ll need to meet basic income requirements to qualify for our expert picks.
- Network of dealer partners has closed $1 billion in bad credit auto loans
- Specializes in bad credit, no credit, bankruptcy and repossession
- In business since 1999
- Easy, 30-second pre-qualification form
- Bad credit applicants must have $1500/month income to qualify
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| 3.99% – 29.99% | 1999 | 3 minutes | 9.5/10 |
10. LendingTree
- Auto loans for purchase, refinance, and lease buyouts
- Nationwide lender network
- Get matched with up to 5 lenders that fit your financial profile
- It only takes a few minutes and is free with no obligation
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| Varies | 1998 | 4 minutes | 9.5/10 |
- Free, no-obligation application
- Specializes in auto loans for bankruptcy, bad credit, first-time buyer, and subprime
- Affordable payments and no application fees
- Connects thousands of car buyers with auto financing daily
- See application, terms, and details.
| Interest Rate | In Business Since | Application Length | Reputation Score |
|---|---|---|---|
| Varies | 1994 | 3 minutes | 9.0/10 |
+See More Auto Loans for Bad Credit
Since the vehicle itself will act as the security for the loan, most lenders will require you to provide details about the vehicle you wish to purchase during the application process, including the make, model, year, and trim style. This is so the lender can verify that the vehicle is actually worth the amount of the loan in case they need to sell it to recoup losses.
Most lenders will offer the ability to check for loan pre-qualification if you don’t have a specific vehicle in mind but still want to get an idea of what size loan you can get (and at what rate). Pre-qualification generally uses a soft credit inquiry, rather than a hard inquiry, so it won’t impact your credit score.
As with personal installment loans, be sure to look at all the factors of your auto loan when comparing offers. You may consider extending your auto loan as far as you can to secure the lowest monthly payment but that can be a costly mistake in the long run. The longer the loan, the more interest you’ll end up paying over the life of the loan.
Some Creditors Will Give You Another Chance at Financing
For second-chance lenders, offering credit lines to those with poor credit isn’t crazy, it’s sound business.
Of course, the unfortunate reality is that some second-chance borrowers will end up with the same credit-damaging results. But borrowers who can use that financing responsibly can have wonderfully different results, including a better credit score and an easier time obtaining new credit in the future.
