11 Best Loans for Bad Credit of July 2026

You don't need good credit to get a personal loan. Some lenders on this list accept minimum scores as low as 550, and a few — including Upstart, OneMain Financial, and Oportun — don't set a minimum score at all, instead weighing income, job history, or bank account activity.

A lower score usually means a rate near the top of a lender's range, so always run the free prequalification (a soft credit check) before applying formally.

Borrowers with bad credit who prequalified through NerdWallet recently received an average rate of 26.71% APR. Your real cost is the APR, not the advertised low end of a lender's range — the APR bundles in interest and origination fees, so it's the number that reflects what you'll actually pay.

Use a personal loan calculator to compare the total repayment amount across offers before you choose one.

Yes, but it's risky. A true no-credit-check lender skips reviewing your credit history entirely and instead looks at your bank transactions and income — and these lenders tend to charge triple-digit interest rates that function more like payday loans than personal loans.

Every lender on this page does check your credit or finances in some form, which is part of why their rates stay well below payday-loan territory.

With a secured loan, you pledge collateral — usually a paid-off vehicle — and the lender can take that asset if you default. Secured loans typically come with a lower APR because the lender's risk is reduced.

An unsecured loan requires no collateral, but approval depends more heavily on your credit, income, and existing debt. Best Egg, OneMain Financial, and Oportun all offer a secured path in select states.

Watch for these red flags: guaranteed approval with no credit or income check, no state lending license listed, a request for payment by gift card, or a lender that won't show you the APR and total repayment amount before you sign.

Every lender featured on this page discloses its state licensing and full loan terms before you accept an offer.

It can. Most lenders on this list report your payment history to at least one of the three major credit bureaus, and on-time payments are one of the more reliable ways to improve your score over time.

A missed or late payment does the opposite, so only borrow an amount with a monthly payment you can commit to before you sign.

Credit union Payday Alternative Loan (PAL): Capped at 28% APR by federal regulation — the cheapest small-dollar option on this list if you can join a participating credit union.

Buy now, pay later: Splits a purchase into smaller payments, usually with no hard credit check, though this only works for a purchase, not cash you need directly.

Cash advance apps: Let you borrow a few hundred dollars against your next paycheck, usually without interest, though subscription or fast-funding fees can apply.

Family loan: A written agreement with someone you trust can be the lowest-cost option of all, if that's available to you.

1. Check your credit report first. Fix any errors before applying — a wrong entry could be costing you a better rate.
2. Prequalify with 2–3 lenders. This uses a soft credit check that won't affect your score, so you can compare real offers.
3. Compare the full APR, not just the interest rate. Factor in the origination fee and total repayment amount.
4. Submit your formal application. This triggers a hard credit check, which can cause a small, temporary dip in your score.
5. Set up autopay. Several lenders on this list offer a rate discount for it, and it protects you from a missed payment.