Having a bad credit score doesn’t mean you’re out of options when it comes to borrowing money. Whether you need funds for an emergency, debt consolidation, or a big purchase, several personal loan providers in the U.S. specialize in offering loans to individuals with poor or fair credit. In this guide, we’ll explore the best personal loan providers for bad credit in the USA in 2025, including their features, eligibility requirements, and what makes them stand out.
1. What Is Considered Bad Credit?
In most cases, a credit score below 580 is considered bad by FICO standards. A score between 580–669 is considered fair. Many traditional banks deny loans to individuals in these categories, but several online and alternative lenders are more flexible.
2. Best Personal Loan Providers for Bad Credit (2025)
1. Upgrade
Best for: Debt consolidation & fast approval
Upgrade offers personal loans to borrowers with credit scores as low as 560. Loan amounts range from $1,000 to $50,000, with repayment terms between 2–7 years. They provide fast funding and even allow joint applications to improve approval chances.
2. Upstart
Best for: Borrowers with limited credit history
Upstart uses AI-based approval models, which look beyond your credit score. If you have a low score but good education or job potential, you may qualify. Minimum credit score required is 300, and funds are available within one business day.
3. Avant
Best for: Small loan amounts
Avant is tailored to borrowers with scores starting at 550. Loan amounts range from $2,000 to $35,000 with repayment terms of 1–5 years. While interest rates can be high, Avant offers flexible payment dates and good customer support.
4. OneMain Financial
Best for: In-person service and secured loan options
OneMain is one of the few lenders offering secured personal loans, making it easier for bad-credit borrowers to qualify. They have over 1,400 physical branches, which is ideal for those who prefer face-to-face service.
5. LendingPoint
Best for: Fair credit borrowers (600+)
LendingPoint caters to borrowers with scores as low as 600. Loan amounts range from $2,000 to $36,500, and approval is often quick. Their loans come with fixed rates and no prepayment penalties.
6. NetCredit
Best for: Flexible eligibility and repayment options
NetCredit offers personal loans and lines of credit for borrowers with poor credit histories. While APRs can be high, they are transparent and offer a financial assistance program if you’re struggling to repay.
3. Tips for Getting Approved with Bad Credit
Even with poor credit, you can improve your loan approval chances by:
-
Applying with a co-signer or co-borrower
-
Providing proof of stable income
-
Choosing a secured personal loan
-
Requesting a lower loan amount
-
Improving your debt-to-income ratio
4. What to Watch Out For
When applying for personal loans with bad credit, be cautious of:
-
High APRs (often 20%–35% or higher)
-
Origination fees or hidden charges
-
Scam lenders that guarantee approval with no credit check
-
Short repayment periods that increase your monthly burden
5. Alternatives to Personal Loans
If you don’t qualify or want to avoid high interest rates, consider:
-
Credit unions (usually offer lower rates to members)
-
Borrowing from family or friends
-
0% APR credit card offers (for short-term borrowing)
-
Payday alternative loans (PALs) from federal credit unions
Conclusion
Getting a personal loan with bad credit in the USA is possible — you just need to choose the right lender. Providers like Upgrade, Upstart, and Avant offer fast and accessible options tailored for people with less-than-perfect credit. Always compare APRs, fees, and terms before signing, and focus on improving your credit for better rates in the future.