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Best loans for bad credit 2022

What is a bad credit personal loan?

When you apply for a loan, lenders will look at your credit score and credit history to determine how much of a risk it is to them to lend you money. Having bad credit is when you have a low credit score, which can be caused by things like short credit history, late payments or maxed-out credit cards.

This are the best bad credit loan lenders of 2022

  • Best loan for poor credit scores: Bad Credit Loans

Why Bad Credit Loans is the best for poor credit scores: As a loan aggregator, Bad Credit Loans refers applicants to reputable lenders that are willing to provide unsecured loans to those who have poor credit. The company says that it designs its application process to allow nearly anyone to qualify, even those who would not necessarily be approved elsewhere.

Perks: Bad Credit Loans does not charge you any fee for requesting a loan through its site.

What to watch out for: Bad Credit Loans is not a lender itself. It connects consumers to lenders and other financial service providers, meaning you will need to carefully read through the terms, the fees and all other requirements offered by each lender, as details will vary.

  • Best loan for limited credit history: Upstart

Upstart developed a reputation for offering fast and fair unsecured personal loans. APRs for Upstart loans vary by state and range from 3.50 percent to 35.99 percent. Loan amounts range from $1,000 to $50,000, and you can choose a repayment term of either three or five years.

Why Upstart is the best for limited credit history: While many loan applications are based primarily on a borrower’s credit score and years of credit, Upstart applications also factor in an individual’s education, job history and area of study.

  • Best secured loan: OneMain Financial

Why OneMain Financial is the best for a secured loan: Many lenders only offer unsecured loans. Borrowers who can’t get approved elsewhere may have a better chance of getting a secured loan with OneMain Financial.

Perks: The application and funding process with OneMain is very quick — typically two to three days from the start of the application to receipt of funds. The company also has over 1,500 branch offices for those who like to deal with a brick-and-mortar business.

  • Best loan for low rate caps: TD Bank

Why TD Bank is the best for low rate caps: While TD Bank doesn’t offer the absolute lowest rates, the cap on its personal loan rates is relatively low at 18.99 percent APR. This could make it particularly appealing for borrowers with poor credit who might otherwise be subject to rates above 30 percent.

Perks: TD Bank’s only fee is a late fee of 5 percent of the minimum payment due or $10, whichever is less. There are no monthly fees, annual fees, prepayment fees, late fees or insufficient funds fees.

What to watch out for: TD Bank’s loans are available to a very limited customer base. In order to qualify, you must reside in Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia or Washington, D.C.

  • Best for a range of repayment options: Avant

Why Avant is the best for a range of repayment options: Avant’s loans offer repayment terms of 24 to 60 months, and with no prepayment penalty, borrowers can save money on interest by paying their loans off early. Perks: For those who qualify, the loan funds can be made available as soon as the next business day after approval. What to watch out for: Avant loans come with an administration fee of as much as 4.75 percent. There’s also a $25 late fee if monthly payments are not made in full within 10 days of the due date, as well as a $15 insufficient funds fee.

  • Best for small loans: LendingPoint

Why LendingPoint is the best for small loans: Some lenders with tighter credit requirements have a $5,000 minimum for personal loans, but LendingPoint lets bad credit borrowers take out as little as $2,000.

Perks: LendingPoint provides application decisions in just a few seconds, and once the loan is approved, funds can be available as soon as the next business day.

What to watch out for: Depending on your state, you may pay an origination fee of as much as 6 percent with LendingPoint, which can be deducted from your loan proceeds. In addition, you must have a minimum annual income of $35,000 to qualify for a loan. 

  • Best loan for fast funding: Upgrade

Why Upgrade is the best for fast funding: Loan funds can be available within just one business day of going through the provider’s verification process. Perks: When applying for an Upgrade loan, you’ll get a decision within just a few seconds. What to watch out for: All personal loans include a 2.9 percent to 8 percent origination fee, which is deducted from the loan proceeds. Who Upgrade is best for: Upgrade may be a good option for people who have a big purchase but not a lot of time to find a lender. It is also good for people who want to have their lender send payments directly to creditors for a debt consolidation loan. 

  • Best loan for online experience: LendingClub

Why LendingClub is the best for an online experience: LendingClub has a robust website that features an easy application process and an extensive loans resource center. Perks: Along with the option of a co-borrower, LendingClub offers a 15-day grace period if you’re unable to make your payment on the day it’s due. What to watch out for: There’s an origination fee that ranges from 3 percent to 6 percent of the total loan cost.