MoneyGeek’s Picks for 2022

Best Bad Credit Personal Loans of 2022

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Last Updated: 10/3/2022
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There are various reasons why a person may want to get a personal loan. Typically, individuals take out personal loans to recover from a financial crisis, consolidate debts, finance a large purchase or cover emergency expenses. Depending on the terms, you’ll have to pay back the total amount borrowed plus interest.

Before getting a loan, there are various factors you need to consider. One of these is your credit score. Lenders typically check a borrower’s credit report to determine creditworthiness. MoneyGeek evaluated lenders to determine the best options for personal loans for borrowers with bad credit.

Best Bad Credit Loans for 2022

A personal loan refers to borrowed money that you have to pay back with interest. Depending on several factors — including your credit score — the interest rate may vary.

Most lenders use FICO credit scores or VantageScores to determine your interest rate. These refer to three-digit scores ranging from 300 to 850. Both are used to determine the borrower’s credit risk. A bad FICO score is typically anything below 580. Meanwhile, scores from 300 to 600 are considered bad VantageScore credit scores.

MoneyGeek created this guide and determined the best personal loans for bad credit using collected information for more than 30 personal loan lenders. We used 35+ data points across key categories, including loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

MoneyGeek’s Top Pick for Bad Credit: Upstart

  • Upstart

    • 3.22% to 35.99%APR Range
    • 300Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds

    on Upstart Website

Runner-Up: Upgrade

  • Upgrade

    • 5.94% to 35.47%APR Range
    • 560Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Same DayTime to Receive Funds

    on Upgrade Website

Other Loan Options to Consider

  • Lender
    Minimum Credit Score
    Loan Amounts
    APR Range
    Ready To Apply?
  • Sofi




  • Lightstream




  • Truist




  • American Express




  • Rocket Loans




Where to Start: Choosing the Best Bad Credit Loan if You Have Bad Credit

Taking out a personal loan is not the best option for everyone. There are various factors you need to consider, such as your current debts, income and credit score. It is also important to compare your options. Determine where you plan on using the money — debt consolidation, financing a huge expense or making a large purchase.

MoneyGeek created this guide to help with your search for the best personal loans for bad credit.


Ask Yourself the Important Questions

Determine whether a personal loan is the right option for you. Then, look for lenders offering loans suitable for your needs. Knowing what questions to ask can help. You can start with the following:

  • How much funding do I need?
  • What is my credit score?
  • Can I afford the monthly payment?
  • How much debt do I already have?

Do Your Research

Taking out a personal loan is a commitment. You will have to repay the money within a certain period, two to six years on average.

That is why research is important. Before you apply, make sure you understand your options well. Find out the requirements. You should also check out the review process of the lenders. For example, some lenders conduct a hard credit check. This type of inquiry can have an impact on your credit score.

It would also help to compare rates from different lenders. This way, you can find the best deal for your needs. MoneyGeek’s guide provides the necessary information to help you through the process. However, these recommendations may not be ideal for all borrowers. It would be beneficial for you to explore other options and compare them to find the right loan for you.



Do not apply for the first loan that you find. Personal loans require commitment. You will have to pay back the amount borrowed for a number of years. That is why it is important to be 100% sure about it.

After researching your options, wait for a day or two before applying. Think your decision over and determine whether getting a personal loan is the best solution for your needs.


Read the Fine Print

Lenders have different terms, conditions and requirements. That is why it is important to always read the fine print.

Some borrowers make the mistake of overlooking some details about their loans. While some information may seem minor, looking into every aspect can help prevent any mistakes and help you save money in the long run. Always review fees, such as early payoff fees, origination fees and prepayment penalties.



After thorough research, you can choose the lender you think is best for your needs. Check their application process. Determine what documents and information you need to submit. In most cases, lenders require identification, address verification and proof of income.

Some lenders allow online loan applications. For some individuals, this option is more convenient. However, calling or visiting the lender can help you better understand the personal loan and clarify any concerns you may have.

Key Takeaways


Ask Yourself the Important Questions: Determine how you will be using the loan amount and consider the repayment conditions.


Do Your Research: Compare rates from multiple lenders. Check their loan offers and requirements.


Wait: Think it over for at least a day or two. Do not be hasty.


Read the Fine Print: Make sure you understand all details to avoid issues.


Apply: Check the application process of the lender you have chosen and submit the required documents.

Calculate Your Monthly Payment

It is important to remember that you need to pay back a personal loan in installments with interest, usually done monthly. Calculate your monthly payment first to determine if your finances can cover it, especially if the loan is pre-approved by a lender.



+ $114.98


+ $8.33

Origination Fee Percentage


Origination Fee Fixed amount


Total monthly payment


Frequently Asked Questions: Bad Credit Loans

Your personal needs and other credit and income factors will determine the best personal loan lender for you. MoneyGeek explains some relevant information by answering frequently asked questions about personal loans for bad credit.


We reviewed more than 30 personal loan lenders using 35+ individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency. Using this information, we narrowed down the best personal loans for individuals with low credit scores.

Here at MoneyGeek, we value you, the consumer, so we also factor in each lender’s customer support, business ratings and additional features that could make your experience easier and more accessible, like prequalification, payment options and mobile apps.

After careful consideration and calculation, our picks are made with your best interest in mind. Our personal loan recommendations and expert tips are meant to help you make the best decision when choosing a lender that meets your needs.

Read More on Personal Loans


The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity.