Find the Best Bad Credit Loans 2025 Using our Comparison Tool

If you're facing an unexpected expense and your credit history isn’t spotless, you’re not alone. Thousands of Americans are in the same situation — dealing with financial pressure while carrying the weight of past credit mistakes.

The good news? A low credit score doesn’t automatically disqualify you from borrowing money. In fact, a growing number of lenders now specialize in bad credit loans, offering fast approvals, flexible repayment terms, and even the opportunity to rebuild your credit along the way.

In this guide, we’ll walk you through the best bad credit loan options for 2025, what you need to qualify, what pitfalls to avoid, and how to compare real loan offers without hurting your credit score.

If traditional banks have said "no", this is where your new “yes” might begin.

Top Bad Credit Loan Providers for 2025

Finding a trustworthy loan when you have bad credit isn’t easy - but it’s not impossible either. Our editorial team spent over 10 hours analyzing more than 20 lenders across the U.S. to identify which ones truly stand out for borrowers with low credit scores.

We looked at interest rates, approval speed, loan flexibility, customer satisfaction, and whether lenders are transparent about their terms.

Below, you’ll find our top picks for bad credit loans in 2025- including who each lender is best suited for, their pros and cons, and why they made the list.

Whether you’re rebuilding your credit or need fast cash without sky-high fees, these companies offer realistic solutions for real people.

​Upstart: Best Overall for Bad Credit

Chosen by over 10,800 borrowers on our website alone, Upstart stands out for its high approval rates, fast funding, and innovative approach to evaluating creditworthiness, making it our top pick for bad credit loans in 2025.

Instead of relying solely on your credit score, Upstart considers your education, job history, and earning potential, giving more people a fair shot at getting approved.

It’s especially great for those with limited credit history but strong personal or professional foundations.

Pros for Taking a Bad Credit Loan From Upstart

• Accepts lower credit scores

• Alternative approval model

• Fast funding turnaround

• Transparent fees and no prepayment penalty

Cons for Applying for a Loan From Upstart

• No option to apply with a co-borrower

• Shorter maximum loan term (5 years)

• Charges origination fees

​Upgrade: Best for Flexible Terms

Chosen by over 2,700 users on our platform, Upgrade is an excellent choice for borrowers who want more control over their loan terms. With competitive rates and repayment terms up to 7 years, it’s one of the most flexible lenders for people with bad credit in 2025.

What sets Upgrade apart is its customizable repayment structure - you can choose your payment due date, and even send payments directly to creditors if you're consolidating debt.

You’ll also get access to free credit monitoring and budgeting tools to support your long-term financial goals.

Pros for Taking a Bad Credit Loan From Upgrade

• Offers APR discounts for autopay

• Flexible loan terms (up to 84 months)

• No prepayment penalty

• Direct payment to creditors available

Cons for Applying for a Loan From Upgrade

• Charges an origination fee

• Late and failed payment fees

• No co-borrower option

​5KFunds: Best for Quick Funding

5KFunds is a top choice for borrowers who need money fast and want to compare offers without damaging their credit.

This marketplace connects you with over 100 lenders and doesn’t require a minimum credit score to apply.

Chosen over 80,000 times by Financer users, 5KFunds is a time-saving tool that puts personalized offers in front of you within minutes - no need to visit dozens of websites or fill out repetitive forms.

Pros for Taking a Bad Credit Loan From 5kFunds

• Connects you with multiple lenders

• Quick, easy, and free application process

• No minimum credit score required

• Compare multiple loan options instantly

Cons for Applying for a Loan From 5kFunds

• Not a direct lender

• Rates and terms vary by lender

• May receive promotional emails and other marketing communications

​LoansUnder36: Best for Comparing Multiple Lenders

With a strict 36% APR cap, LoansUnder36 is a great pick for borrowers who want transparency and affordability. It’s a lending platform -not a lender- which means it lets you compare real offers from several reputable companies with just one application.

It’s especially useful for borrowers with bad credit, offering loan amounts from $500 to $35,000 with terms up to 6 years. And yes, there’s no minimum credit score needed to apply.

Pros for Taking a Bad Credit Loan From LoanUnder36

• APR never exceeds 36%

• Access to multiple lender offers

• No minimum credit score required

• Flexible loan amounts and terms

Cons for Applying for a Loan From LoanUnder36

• Not a direct lender

• May receive multiple marketing communications

• Actual rates depend on individual lenders and may differ

What to Know Before Applying for a Bad Credit Loan

Before you hit "apply" to any of the offers presented above, it's important to understand what you're getting into.

Bad credit loans are designed to offer access to financing when your credit score is less than ideal - but they often come with trade-offs like higher interest rates, stricter terms, and added fees.

What Are Bad Credit Loans, Exactly?

Bad credit loans are personal loans designed for individuals with a FICO score below 630.

These loans can be unsecured or secured, and are typically offered by online lenders, credit unions, and specialty financial institutions that are more lenient with credit requirements - like the ones that we've just presented.

They’re not payday loans, and they’re not meant to trap you in endless cycles of debt. In fact, if used wisely, they can be a stepping stone toward rebuilding your credit profile.

What Makes These Loans Different?

Traditional banks often deny applicants with poor credit. That’s where alternative lenders step in, offering:

• Flexible credit requirements

• Faster approvals (sometimes same-day)

• Lower loan amounts tailored to your income and risk profile

But don’t let the convenience blind you to the cost. Bad credit loans can carry APRs as high as 35.99%, origination fees up to 8%, and strict repayment schedules.

Pros and Cons of Bad Credit Loans

Bad credit loans can open doors - but they also come with fine print. Whether you're looking for emergency funds or a way to rebuild your credit, it's essential to weigh the upsides against the potential risks.

Here’s what you need to know before moving forward:

Pros of Bad Credit Loans

• Fast access to cash – Many lenders offer same-day or next-day funding, ideal for emergencies.

• Approval beyond your credit score – Lenders may consider income, employment, and banking history.

• Fixed monthly payments – Most loans have predictable terms, making it easier to budget.

• Opportunity to rebuild your credit – On-time payments can boost your credit score over time.

• Easier qualification – Compared to traditional loans, bad credit lenders typically have more relaxed requirements.

Cons of Bad Credit Loans

• Higher interest rates – Expect significantly higher APRs than with prime loans or traditional bank financing.

• Additional fees – Origination fees, late fees, and prepayment penalties can add up.

• Lower loan amounts – Lenders often limit the amount you can borrow, especially with poor credit.

• Shorter repayment terms – Some loans require full repayment in just a few months.

• Risk of predatory lenders – Be cautious of offers that sound too good to be true. Always read the fine print.

• Credit damage if mismanaged – Missed or late payments can hurt your credit score even more.

How to Qualify for a Bad Credit Loan

While each lender has unique requirements, there are some common factors they all consider:

• Proof of Income - Lenders want to ensure you have a stable source of income, whether from a job, benefits, or self-employment.

• Credit Score - Even though these lenders cater to poor-credit borrowers, a slightly higher score (above 580) can often help you access better rates.

• Debt-to-Income Ratio - Most lenders prefer a DTI below 40–45%. You can calculate it by dividing your total monthly debt payments by your gross monthly income.

• Valid Identification - You’ll need a government-issued ID and a Social Security number or Individual Taxpayer Identification Number.

• Active Bank Account - Most online lenders require an account for direct deposit and auto-debit payments.

How to Choose the Right Bad Credit Loan

When considering a bad credit loan, it's essential to carefully weigh your options and choose a reputable lender. Here's a step-by-step guide to help you make an informed decision:

Remember, while bad credit loans can provide much-needed financial relief, they should be used responsibly. Make timely payments to improve your credit score and work towards qualifying for better loan terms in the future.

If you're unsure about any aspect of the loan or your ability to repay, consider seeking advice from a financial advisor or credit counselor before proceeding.