In today’s financial landscape, securing a personal loan with bad credit can be challenging, but it’s not impossible. Several lenders in the USA specialize in offering personal loans to individuals with less-than-perfect credit scores. This guide provides an overview of some of the best options available in 2025, along with insights into improving your chances of approval and securing favorable terms.
Understanding Bad Credit
A credit score is a numerical representation of your creditworthiness, typically ranging from 300 to 850. Scores below 670 are generally considered fair or poor, with anything under 580 classified as bad credit. Factors contributing to a low credit score include missed payments, high credit card balances, bankruptcies, or a limited credit history.
Top Personal Loan Options for Bad Credit in 2025
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LendingPoint
LendingPoint is a financial technology platform that offers personal loans to consumers with credit scores between 500 and 850. Founded in 2014, LendingPoint considers various factors beyond traditional credit scores, such as employment history and earning potential, to determine creditworthiness. This approach provides more affordable loan options for individuals with lower credit scores.
- Loan Amounts: $2,000 to $36,500
- APR Range: 9.99% to 35.99%
- Loan Terms: 24 to 60 months
- Minimum Credit Score: 600
LendingPoint’s flexible credit criteria and quick funding process make it a viable option for borrowers seeking personal loans despite having bad credit.
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Peerform
Peerform is a peer-to-peer lending platform that connects borrowers with investors. Founded in 2010, Peerform caters to individuals with credit scores as low as 600, focusing on various factors to assess creditworthiness beyond just the FICO score.
- Loan Amounts: $4,000 to $25,000
- APR Range: 5.99% to 29.99%
- Loan Terms: 36 or 60 months
- Minimum Credit Score: 600
Peerform’s unique algorithm evaluates multiple aspects of a borrower’s financial profile, offering competitive rates for those with less-than-perfect credit.
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Prosper
Prosper Marketplace is America’s first peer-to-peer lending marketplace, facilitating personal loans since 2006. Prosper connects borrowers with investors, offering loans to individuals with varying credit profiles.
- Loan Amounts: $2,000 to $50,000
- APR Range: 7.95% to 35.99%
- Loan Terms: 36 or 60 months
- Minimum Credit Score: 640
Prosper’s platform allows borrowers to present their loan requests to a broad network of investors, increasing the chances of securing a loan even with a lower credit score.
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OneMain Financial
OneMain Financial specializes in offering personal loans to individuals with bad credit. They consider factors beyond credit scores, such as income and financial history, to assess loan applications.
- Loan Amounts: $1,500 to $20,000
- APR Range: 18.00% to 35.99%
- Loan Terms: 24 to 60 months
- Minimum Credit Score: Not specified
OneMain Financial’s personalized approach and willingness to consider various financial factors make it a suitable option for borrowers with bad credit.
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Avant
Avant is an online lending platform that offers personal loans to individuals with credit scores as low as 580. They provide a quick application process and fast funding, catering to those needing immediate financial assistance.
- Loan Amounts: $2,000 to $35,000
- APR Range: 9.95% to 35.99%
- Loan Terms: 24 to 60 months
- Minimum Credit Score: 580
Avant’s accessible credit requirements and swift processing times make it a popular choice among borrowers with bad credit.
Alternative Options
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Share-Secured Loans: These loans are secured by funds in your bank or credit union account, making them easier to obtain for individuals with limited credit histories. They often come with lower interest rates due to reduced lender risk. However, defaulting on the loan could result in losing your collateral.
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Credit Unions: Local credit unions often offer more flexible lending criteria and may provide personal loans to members with bad credit. Building a relationship with a credit union can improve your chances of loan approval.
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Online Lenders: Some online lenders specialize in bad credit loans, offering quick approval processes. However, it’s essential to research and ensure the lender is reputable to avoid predatory lending practices.
Tips to Improve Loan Approval Chances
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Check Your Credit Report: Obtain a copy of your credit report and check for inaccuracies that may be negatively affecting your score. Disputing and correcting errors can improve your credit profile.
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Demonstrate Stable Income: Lenders are more likely to approve loans for individuals with a stable and sufficient income. Providing proof of consistent employment or income can strengthen your application.
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Consider a Co-Signer: Having a co-signer with good credit can increase your chances of loan approval and may result in more favorable terms. Ensure that both parties understand the responsibilities involved.