Best Bad Credit Loans in 2025: Top Options for Borrowers
For individuals with bad credit, finding a loan that suits your needs and offers fair terms can be challenging. However, there are several lenders in the market who specialize in offering bad credit loans with flexible terms. In 2025, these are the best options available to help you secure a loan, whether for debt consolidation, emergency expenses, or personal use.
1. Upstart
Best for Personal Loans with Bad Credit
Upstart is an online lender that uses artificial intelligence to determine loan eligibility, making it a great option for those with limited credit histories or poor credit. With a focus on your education and employment history rather than just your credit score, Upstart offers personal loans with competitive rates, even for those with bad credit.
- Loan Amounts: $1,000 to $50,000
- APR Range: 5.80% – 35.99%
- Terms: 3 to 5 years
- Pros: Fast approval, lower starting rates, and no prepayment penalties.
- Cons: Fees for late payments or failed payments.
2. LendingClub
Best for Debt Consolidation Loans
LendingClub is a peer-to-peer lending platform that offers personal loans to individuals with bad credit. It’s a great choice for debt consolidation, as it allows you to combine multiple debts into a single loan with one monthly payment. The platform also has flexible repayment terms and does not charge prepayment fees.
- Loan Amounts: $1,000 to $40,000
- APR Range: 6.34% – 35.89%
- Terms: 3 to 5 years
- Pros: Low minimum credit score requirement, flexible loan uses.
- Cons: High fees for late payments, and longer approval times compared to other lenders.
3. Avant
Best for Quick Access to Funds
Avant specializes in offering personal loans to individuals with bad credit. It’s an excellent option for those looking for a fast and straightforward way to access funds. With an easy online application process, Avant offers loans for a variety of purposes, including debt consolidation, home improvement, and medical expenses.
- Loan Amounts: $2,000 to $35,000
- APR Range: 9.95% – 35.99%
- Terms: 2 to 5 years
- Pros: Quick approval process, flexible terms.
- Cons: Higher interest rates for bad credit borrowers.
4. OneMain Financial
Best for Secured Loans with Bad Credit
OneMain Financial is a great option for borrowers with bad credit who may have assets to use as collateral. This lender offers both secured and unsecured personal loans, making it easier for individuals with bad credit to qualify for funding. With the option to use a vehicle, property, or other assets as collateral, OneMain Financial may approve larger loan amounts than unsecured lenders.
- Loan Amounts: $1,500 to $20,000
- APR Range: 18.00% – 35.99%
- Terms: 2 to 5 years
- Pros: Fast approval, collateral option may result in better loan terms.
- Cons: Higher APR for unsecured loans, collateral required for some loans.
5. Best Egg
Best for Fast Personal Loans
Best Egg is an online lender that offers personal loans to individuals with bad credit, with a simple application process and fast funding. The lender uses your credit profile and personal financial situation to determine your loan eligibility, with loans available for debt consolidation, home improvement, or other major expenses.
- Loan Amounts: $2,000 to $50,000
- APR Range: 5.99% – 35.99%
- Terms: 3 to 5 years
- Pros: Fast approval, and competitive interest rates.
- Cons: Higher rates for bad credit borrowers, are not available in all states.
6. Prosper
Best Peer-to-Peer Lending for Bad Credit
Prosper is another peer-to-peer lending platform that provides personal loans for people with bad credit. Prosper allows borrowers to access funding from individual investors, often offering better rates than traditional banks. The platform is ideal for debt consolidation or major life expenses, with fixed-rate loans and flexible repayment terms.
- Loan Amounts: $2,000 to $40,000
- APR Range: 6.95% – 35.99%
- Terms: 3 to 5 years
- Pros: The peer-to-peer lending model can provide lower rates.
- Cons: Fees for missed payments, limited customer service availability.
7. PersonalLoans.com
Best for Matching You with Lenders
PersonalLoans.com is not a direct lender but a loan marketplace that matches you with lenders who offer personal loans for bad credit. Whether you’re looking for unsecured or secured loans, PersonalLoans.com allows you to shop around for the best loan option based on your credit situation and needs.
- Loan Amounts: $1,000 to $35,000
- APR Range: 5.99% – 35.99%
- Terms: 3 to 5 years
- Pros: Easy online application, that compares multiple loan options.
- Cons: Loan offers are based on lender availability, not all states are supported.
Conclusion
Bad credit doesn’t have to stand in the way of securing a loan. While interest rates may be higher for those with poor credit, many lenders now offer flexible terms, fast approvals, and options for both unsecured and secured loans. Consider the loan amount, APR, repayment terms, and fees when choosing the best loan for your needs. As always, ensure you can comfortably repay the loan to avoid further damage to your credit score.
