Securing a personal loan with bad credit can feel like an uphill battle. Traditional lenders often rely heavily on credit scores to assess a borrower’s eligibility, leaving individuals with poor credit scores struggling to access much-needed funds. However, the good news is that some personal loan companies specialize in helping borrowers with bad credit secure loans. These lenders often consider other factors beyond credit scores, providing a lifeline when you need it most.
This guide highlights the best personal loan companies for bad credit in 2025. We’ll examine their key features, loan terms, interest rates, and benefits to help you make an informed financial decision. Plus, we’ll share tips on improving your credit score and managing loans responsibly.
Why Finding the Right Lender Matters
When you have bad credit, finding a reputable lender is crucial. Predatory lenders often target those in financial distress, offering loans with sky-high interest rates and unfavorable terms. Choosing a trustworthy lender ensures you’re accessing funds responsibly and setting yourself up for financial recovery rather than falling deeper into debt.
The good news is that several lenders offer personal loans tailored for bad credit borrowers, focusing on affordability, transparency, and flexibility.
Top 5 Personal Loan Companies for Bad Credit in 2025
1. Upgrade
Upgrade is a popular choice for borrowers with bad credit due to their flexible options and focus on financial education.
- Loan Amounts: $1,000 – $50,000
- APR (Annual Percentage Rate): 8.49% – 35.97%
- Loan Terms: 24 to 84 months
- Key Features:
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- Accepts applicants with credit scores as low as 560.
- Offers free credit monitoring and educational tools.
- No prepayment penalties, allowing you to pay off the loan early and save on interest.
Upgrade is an excellent option if you’re rebuilding your credit, as they provide resources to help you improve your financial standing.
2. OneMain Financial
OneMain Financial specializes in working with borrowers who may not qualify for traditional loans due to poor credit.
- Loan Amounts: $1,500 – $20,000
- APR: 18.00% – 35.99%
- Loan Terms: 24 to 60 months
- Key Features:
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- No minimum credit score required, making it accessible for borrowers with poor or no credit.
- Offers secured and unsecured loan options, giving flexibility to those who can provide collateral.
- Personalized support through in-person branch locations.
OneMain Financial is a great choice if you need a lender who takes a more personalized approach and values factors beyond just your credit score.
3. LendingPoint
LendingPoint is a top option for bad credit borrowers thanks to their fast approval process and reasonable APRs.
- Loan Amounts: $2,000 – $36,500
- APR: 7.99% – 35.99%
- Loan Terms: 24 to 72 months
- Key Features:
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- Minimum credit score of 585, making it a bit more accessible.
- Quick approval, with funds typically available within 24 hours.
- Offers flexible payment schedules tailored to your financial situations.
If speed and flexibility are what you’re looking for, LendingPoint is an ideal partner for your loan needs.
4. Avant
Avant is specifically designed for borrowers with fair to bad credit, offering quick fund disbursement and an accessible application process.
- Loan Amounts: $2,000 – $35,000
- APR: 9.95% – 35.99%
- Loan Terms: 12 to 60 months
- Key Features:
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- Minimum credit score of 580.
- Approval is based on factors like income and borrowing history in addition to credit scores.
- Low administrative fees compared to others in the bad credit loan market.
Avant’s straightforward approach and competitive rates make it a solid choice for borrowers rebuilding their credit.
5. BadCreditLoans.com
BadCreditLoans.com isn’t a direct lender but a platform that connects you with reputable lenders willing to work with bad credit borrowers.
- Loan Amounts: $500 – $10,000
- APR: 5.99% – 35.99%
- Loan Terms: 3 to 36 months
- Key Features:
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- No minimum credit score required.
- Simplified application process with fast lender matches.
- Offers educational resources to improve financial literacy.
If you’re uncertain about where to start, BadCreditLoans.com gives you access to multiple options while educating you on responsible borrowing practices.
Tips for Managing Loans with Bad Credit
Once you secure a loan, managing it responsibly is key to improving your financial health. Here are a few tips:
- Borrow Only What You Need
It may be tempting to take out a higher loan amount, but borrowing more than you need or can afford to repay can worsen your financial situation.
- Balance Monthly Payments with Your Budget
Choose a loan term that ensures manageable monthly payments while minimizing the interest paid over the life of the loan.
- Prioritize Timely Payments
Late payments can further damage your credit score and incur hefty penalties. Consider setting up automatic payments to avoid missing due dates.
- Monitor Your Credit Score
Regularly review your credit score to track improvements and address errors that could negatively impact your rating.
- Pay More Than the Minimum If Possible
Making extra payments or paying more than the minimum can help you save on interest and pay off your loan faster.
How to Improve Your Credit Over Time
If bad credit loans are just a step in your financial recovery, you’ll want to focus on improving your credit going forward. Here are some practical ways to raise your credit score:
- Pay Bills on Time: Even one late payment can significantly lower your score.
- Reduce Credit Card Balances: Aim to keep your credit utilization ratio below 30%.
- Avoid Opening Multiple Accounts: Hard inquiries can lower your score temporarily.
- Dispute Credit Report Errors: Incorrect information could drag down your credit unfairly.
- Build a Positive Credit History: Using a secured credit card responsibly can gradually improve your credit.
Improving your credit score takes time, but the consistent effort will pay off in the form of better loan terms and lower interest rates in the future.
Final Thoughts
Finding the right personal loan company when you have bad credit can be life-changing. Reliable lenders like Upgrade, OneMain Financial, LendingPoint, Avant, and BadCreditLoans.com offer options tailored to your circumstances, helping you secure financing while working toward a stronger financial future.
Remember, the key is to do your research, compare options, and choose a loan you can comfortably repay. Coupled with actions to improve your credit score, you’ll be on the right track to better financial health in no time.