A personal loan for bad credit is a way to pay for debt or finance major purchases. When comparing lenders, check their minimum and maximum loan amounts, as well as fees like origination and prepayment charges.

Some lenders have minimum credit score requirements, and some require a co-signer or collateral. Others rely on factors other than credit and income to approve borrowers.

1. NetCredit

NetCredit is an online lender that specializes in arranging personal loans for borrowers with bad credit. It does not have a minimum credit score requirement and considers a borrower’s broader financial picture when making an offer. It also offers pre-qualifications that do not impact your credit score.

While NetCredit is a good option for some people, it has been accused of predatory tactics by consumer advocates and state regulators. Its how to apply for a loan at finchoice high interest rates put it on the National Consumer Law Center’s high-cost rent-a-bank list and have led to complaints from borrowers who had trouble with their repayment terms.

Additionally, NetCredit does not report loan payment information to the credit bureaus, which can hamper a borrower’s ability to improve their credit score. Lastly, the lender does not offer products in all states. Residents of Colorado, Connecticut, Iowa, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Hampshire, New York, North Carolina, Pennsylvania and Vermont won’t be able to obtain a NetCredit personal loan. Instead, they should look at Oportun and OppLoans as alternatives. These lenders have similar terms to NetCredit but report on-time payments to the credit bureaus.

2. Lending Club

Lending Club is one of the biggest online lenders, offering loans to consumers with fair and good credit as well as bad credit. It has been in business since 2007 and is a certified BBB lender with an A rating. The company offers personal loans and debt consolidation, as well as cash-back checking accounts. Its customers rate the company highly on Trustpilot and other online sites.

Borrowers can apply for a personal loan on their own or with a co-borrower, who shares the equal obligation to pay the debt. Co-borrowers with better financial standing may be able to qualify for a loan with lower interest rates.

Like many lenders, Lending Club uses a borrower’s credit score to determine their approval and interest rate. The company also considers income and other factors when deciding on the terms of a personal loan. Borrowers can check their rates with a soft credit inquiry to see what they would likely qualify for. Other fees, such as prepayment penalties and origination fees, should be considered, too.

3. Lending Tree

LendingTree is an online lending marketplace that allows borrowers to prequalify for a personal loan with multiple lenders at once. The lender network includes both direct lenders and fintech partners, with each provider offering unique terms and rates. Borrowers use personal loans for a variety of reasons, including debt consolidation, home improvement projects and unexpected expenses.

To get started, borrowers must fill out an online questionnaire on the LendingTree website and provide basic personal information. The site then runs a soft credit check to assess your creditworthiness without affecting your score. You can then preview loan offers and select one that fits your budget.

A personal loan is a type of unsecured debt that doesn’t require collateral such as a savings account or vehicle to secure it against nonpayment. However, borrowers with bad credit may face more difficulty getting approved for a personal loan and could be subject to higher interest rates than those with excellent credit. Consumers who are considering applying for a personal loan should first understand how their credit scores will be affected and what they can do to improve their standing.

4. LendingClub Express

Many lenders set a minimum credit score for borrowers seeking personal loans. Other factors they consider include income, debt-to-income ratio and the details of a loan application, such as an annual percentage rate (APR), interest rate, loan amount and payback terms. Borrowers should shop around and compare rates to ensure they are getting the best deal. They also should understand how their lender sets credit standards and other fees before signing a contract.

LendingClub Express is a legitimate online lender that provides personal loans to borrowers with bad credit, based on their creditworthiness. The lender is accredited by the Better Business Bureau and has an A+ rating. Its customer reviews on its website and Trustpilot are good, but some borrowers complain about high-pressure sales tactics or long wait times to receive approval or funds.

5. Universal Credit

Universal Credit has no minimum credit score requirement if you apply directly on its website, but the lender requires a credit score of 560 or higher if you submit an application through Credible. Like many online lenders, Universal Credit charges an origination fee that reduces the loan amount you receive.

This fee, which ranges from 5.25% to 9.99%, is deducted from your funding amount before the money is transferred to your bank account. Lenders generally don’t disclose the exact amount of the fee, but they do say it will reduce the total cost of your loan.

Unlike some online personal loan lenders, Universal Credit doesn’t charge a prepayment penalty. This is great if you’re looking to pay off your loan early to save on interest costs.

Universal Credit loans are funded through its banking partners, Cross River Bank and Blue Ridge Bank, which are FDIC-insured. Universal Credit is also backed by its parent company, Upgrade, and operates out of San Francisco, California. Universal Credit has been operating since 2020 and offers loans in all 50 states. Its services include free credit monitoring through its sister company, Credit Health. The company also provides direct payment to creditors when you use your loans for debt consolidation.