Getting approved for a personal loan with bad credit can feel like hitting a brick wall. Many traditional lenders turn you away or offer loans with sky-high interest rates. But even if your credit score is below 600, you still have options. Some lenders specialize in working with bad credit borrowers and offer flexible requirements — and in some cases, almost guaranteed approval.
In this guide, we’ll explore the best personal loan providers for bad credit, what “guaranteed approval” really means, and how you can increase your chances of getting the funds you need.
What Is a Personal Loan for Bad Credit?
A personal loan for bad credit is a type of unsecured loan designed for people with poor or limited credit histories. These loans typically have:
- Higher interest rates due to increased risk for the lender
- Lower borrowing limits
- More flexible credit requirements
- Faster approval times
They’re often used for emergency expenses, debt consolidation, car repairs, or medical bills.
What Does “Guaranteed Approval” Really Mean?
It’s important to understand that no loan is truly guaranteed — especially if it’s unsecured. But some lenders advertise “near-guaranteed” approval by minimizing credit checks or focusing on other factors like:
- Your income
- Employment status
- Bank account activity
- Existing debts
These lenders often approve applicants with credit scores as low as 500, or even no score at all.
Top 7 Lenders Offering Personal Loans for Bad Credit in 2025
1. Upstart
- Minimum credit score: 300
- Loan amount: $1,000 – $50,000
- APR: 6.4% – 35.99%
- Best for: Borrowers with limited credit history
- Approval factors: Education, job history, and income, not just credit score
2. OneMain Financial
- Minimum credit score: No minimum
- Loan amount: $1,500 – $20,000
- APR: 18.00% – 35.99%
- Best for: In-person service with flexible credit requirements
- Special note: Offers secured loan options if you have collateral
3. LendingPoint
- Minimum credit score: 580
- Loan amount: $2,000 – $36,500
- APR: 7.99% – 35.99%
- Best for: Fast funding and poor credit borrowers with stable income
4. NetCredit
- Minimum credit score: Varies by state
- Loan amount: $1,000 – $10,000
- APR: Can exceed 35%
- Best for: Emergency borrowing with low barriers to approval
5. Avant
- Minimum credit score: 550
- Loan amount: $2,000 – $35,000
- APR: 9.95% – 35.99%
- Best for: Mid-range bad credit borrowers needing fast cash
6. OppLoans
- Minimum credit score: No credit check
- Loan amount: $500 – $4,000
- APR: 59% – 160%
- Best for: Quick cash without a credit pull — but very high interest rates
7. MoneyMutual (Loan Marketplace)
- Minimum credit score: None required
- Loan amount: $250 – $5,000
- APR: Varies by lender
- Best for: Connecting to multiple lenders for a quick decision
How to Improve Your Chances of Approval
1. Check Your Credit Report for Errors
Sometimes your score is lower than it should be. Dispute errors on your report with Equifax, TransUnion, or Experian to improve your credit fast.
2. Apply with a Co-Signer
A co-signer with good credit can help you qualify for better loan terms or approval when your score is too low.
3. Show Stable Income
Lenders want to see that you can repay the loan. Steady employment or consistent freelance/gig income can boost your application.
4. Start Small
Requesting a smaller loan amount increases your chances of approval. Prove your repayment ability and build credit over time.
5. Consider a Secured Loan
If you have a car, savings, or other assets, using them as collateral can reduce risk for the lender and improve your odds.
Red Flags: What to Avoid When Searching for Bad Credit Loans
1. Advance Fee Loan Scams
Never pay upfront fees to get a loan. Legitimate lenders only charge fees after loan approval or deduct them from the loan amount.
2. No-Check “Guaranteed” Loans from Unknown Sources
If it sounds too good to be true, it probably is. Always verify lender credentials and look for reviews.
3. Loans with 100%+ APR
Some short-term loans, especially payday loans or tribal loans, can charge triple-digit APRs that trap you in a cycle of debt.
Can a Personal Loan Help Improve Your Credit?
Yes — if managed responsibly. Here’s how a loan can help rebuild your credit:
- On-time payments improve your payment history (35% of your score)
- Credit mix gets better when you add installment loans
- Credit utilization may improve if you use the funds to pay down credit cards
Just make sure you can comfortably afford the payments.
Alternatives to Personal Loans for Bad Credit
1. Credit Builder Loans
These work in reverse — you pay into the loan, and the lender releases the funds at the end. A great tool for rebuilding credit.
2. Secured Credit Cards
Require a deposit but work like a regular credit card. Good for improving your credit score with responsible use.
3. Borrowing from Friends or Family
If trust and communication are strong, this can be a lower-cost option — but always put terms in writing.
4. Payday Alternative Loans (PALs)
Offered by federal credit unions, PALs are capped at 28% APR and are a safer short-term borrowing option.
Frequently Asked Questions
What credit score is considered bad?
A FICO score below 580 is generally considered poor credit. Scores between 580–669 are considered fair.
Can I get a personal loan with no credit check?
Yes, some lenders like OppLoans or MoneyMutual connect you to lenders that don’t run traditional credit checks, but interest rates can be high.
How fast can I get the funds?
Many online lenders deposit money within 24–48 hours after approval.
What’s the catch with guaranteed approval loans?
They often come with higher APRs and shorter terms. Always read the fine print.
Will applying hurt my credit score?
A soft credit check won’t impact your score, but a hard inquiry (after you accept a loan offer) may lower it slightly.
Final Thoughts: Borrow Smart Even with Bad Credit
You don’t need perfect credit to get a personal loan. By choosing reputable lenders, understanding your terms, and avoiding predatory loans, you can borrow safely and even use the opportunity to rebuild your credit over time. Be realistic, compare offers, and always read the fine print.
