Loans (US)

The 10 best personal loans for bad credit 2021

Meeting your basic needs can be a struggle, and may make you ask for credit. If you have bad credit, there is loan options for you too!

by Thais Daou

08/20/2021 | Updated on 11/01/2022

Discover everything about the best personal loans for bad credit

Discover the world of the best personal loans for bad credit. Source: Unsplash

Personal loans can be used if you are finding it difficult to support common family needs, are needing to do some home repair projects, have some wedding expenses ahead, are going on vacation, or even are thinking of purchasing land for a specific objective. There are many situations in which you could find a loan helpful, even if you have bad credit. So, check out a list of the best personal loans for bad credit.

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The 10 best options of personal loans for bad credit

Don't worry! There is loans for everyone. Source: Unsplash — Don’t worry! There is loans for everyone. Source: Unsplash

Upstart

APR	6.76% – 35.99%
LOAN PURPOSE	It is best for limited credit history
LOAN AMOUNTS	From $1,000 to $50,000
CREDIT NEEDED	580 / 600
TERMS	You can repay Upstart either in three years or five years
ORIGINATION FEE	A one-time origination fee of 0% – 8% of the target amount
LATE FEE	The greater of 5% of monthly past due amount or $15, per occurrence
EARLY PAYOFF PENALTY	There is no prepayment fee or penalty for early or additional payments

OneMain Financial

APR	18% – 35.99%
LOAN PURPOSE	It is best for secured loans
LOAN AMOUNTS	From $1,500 to $20,000
CREDIT NEEDED	None
TERMS	Your loan conditions will vary based on personal information, such as credit history, income, expenses, debts, and available collateral
ORIGINATION FEE	A one-time origination fee of 1% – 10% of the target amount
LATE FEE	Up to $30 / 15% of the delinquent payment
EARLY PAYOFF PENALTY	There is no prepayment fee charge

LendingPoint

APR	9.99% – 35.99%
LOAN PURPOSE	It is best for small loans
LOAN AMOUNTS	From $2,000 to $36,500
CREDIT NEEDED	590 / 600
TERMS	LendingPoint’s limited options are over two, three, or four years
ORIGINATION FEE	Varies from 0% to 6%, depending on the state
LATE FEE	$30, after 15 days of late payment
EARLY PAYOFF PENALTY	There are no prepayment penalties

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LendingClub

APR	8.05% – 35.89%
LOAN PURPOSE	It is best for online experiences
LOAN AMOUNTS	From $1,000 to $40,000
CREDIT NEEDED	600
TERMS	36 – 60 months
ORIGINATION FEE	Origination fees range from 3% to 6% of the target amount
LATE FEE	LendingClub’s borrowers have to pay an origination fee of 3% to 6% of the target amount
EARLY PAYOFF PENALTY	LendingClub does not charge prepayment penalties

Avant

APR	9.95% – 35.99%
LOAN PURPOSE	It is best for a range of options for repayment
LOAN AMOUNTS	From $2,000 to $35,000
CREDIT NEEDED	580
TERMS	From two to five years
ORIGINATION FEE	0.95% – 4.75%
LATE FEE	Although the amount and time of the late fee vary by state, Avant charges a $25 late payment fee
EARLY PAYOFF PENALTY	There are no prepayment penalties

Upgrade

APR	7.46% – 35.97%. based on creditworthiness. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors.
LOAN PURPOSE	The loan is best because: It requires a low minimum credit score If you are a business owner, you can use it to cover business expenses and It gives its lenders payoff for debt consolidation loans
LOAN AMOUNTS	Credit lines from $1,000 to $50,000
CREDIT NEEDED	560 credit score and household income of $25,000
TERMS	24 – 84 months.
ORIGINATION FEE	Between 1.85% – 8.99%, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly.
LATE FEE	up to $10, charged after 15 calendar days
EARLY PAYOFF PENALTY	Loans obtained through Upgrade do not have any prepayment fees

Wells Fargo

APR	5.99% – 24.49%
LOAN PURPOSE	It is best because: You can receive funds by the next business day You get a 0.25% discount when you enroll in autopay
LOAN AMOUNTS	From $3,000 to $100,000
CREDIT NEEDED	There are no requirements However, a score of 670 will be seen as positive
TERMS	The repayment terms range from 12 to 84 months
ORIGINATION FEE	There are no origination fees
LATE FEE	The company may charge a fee if you miss a payment or make a late payment, according to your loan agreement
EARLY PAYOFF PENALTY	There are no prepayment penalties

Universal Credit

APR	8.93% – 35.93%
LOAN PURPOSE	It is best because you can get: An easy online process Fixed rates and terms that never change and A clear pay-off date that you can circle on your calendar
LOAN AMOUNTS	Loan amounts from $1,000 to $50,000
CREDIT NEEDED	580
TERMS	Their loans include repayment terms of 3 to 5 years
ORIGINATION FEE	The company’s personal loans have an origination fee that ranges from 4.25% to 8%
LATE FEE	Subsequent charges and fees or late payments can increase the cost of the borrower’s fixed-rate loan
EARLY PAYOFF PENALTY	There is no prepayment penalty or fee

Personify

APR	35.00% – 179.99%
LOAN PURPOSE	It is best for when you need small emergency loans
LOAN AMOUNTS	From $500 and up to $15,000
CREDIT NEEDED	It was not specified
TERMS	They range from 9 to 48 months, depending on the borrower’s loan amount and creditworthiness
ORIGINATION FEE	In some states, their loan’s origination fee is up to 5% of the loan amount
LATE FEE	Personify can charge a late fee and a fee if there is not enough money in your bank account to repay them
EARLY PAYOFF PENALTY	A $0 prepayment penalty is charged

SoFi

APR	5.99% – 18.85%
LOAN PURPOSE	It is best because there is: Soft credit check prequalification Funding in as little as 1-2 days Lengthy terms and high loan amounts
LOAN AMOUNTS	From $5,000 up to $100,000
CREDIT NEEDED	A minimum score of 680 The majority of successful applicants, however, have a score of 700+.
TERMS	From 2 to 7 years, depending on the agreement
ORIGINATION FEE	No origination fee charged
LATE FEE	No late fee charged
EARLY PAYOFF PENALTY	No prepayment penalty charged

Some final thoughts on personal loans for bad credit

Asking for a loan can be helpful if you have a family to take care of. Source: Unsplash

As it was possible to see, most of the best personal loans for bad credit have the benefit of offering a zero early payoff penalty. This may be because the majority of lenders know that the borrower’s credit profile is probably fragile.

In addition, the borrowed amounts are usually available on the next business day. So, they make the borrowing process very easy for you. It is important to choose a loan that offers good perks. Therefore, do a lot of searching!

If you would like to know more, go read more of our posts.

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About the author

Thais Daou

Thais Daou holds an undergraduate degree in Languages — Translating and Interpreting from the São Judas Tadeu University. She has been translating, proofreading, and transcribing financial documents, as well as documents from other fields, for five years. And now she begins a new chapter in her career, writing about financial solutions in a simplified way, with a desire to spread this knowledge, which is so important.

Reviewed by

Aline Barbosa

Senior Editor