If your credit is damaged, a personal loan can cover an emergency or replace higher-cost debt, but the price range is wide. Below we explain what to compare, then show published terms from a federal credit union option and four well-known online lenders. Nothing here is a promise of approval: every provider makes its own decision based on your credit, income and state.
How to compare personal loans for bad credit
- APR, not just the interest rate. The APR includes interest plus required fees such as origination fees, so it is the best single number for comparing offers. Lenders that serve lower scores usually quote their highest APRs to those borrowers.
- Origination or administration fees. Many online lenders deduct a fee from your loan before you receive it. On a $5,000 loan with an 8% fee you would receive $4,600 but repay $5,000 plus interest.
- Soft-pull prequalification. Check whether you can see your rate with a soft credit inquiry, which does not affect your score. A hard inquiry normally happens only when you accept an offer and apply.
- Minimum credit requirements. Most lenders don’t publish a minimum score. Prequalifying with two or three lenders is the practical way to see where you stand.
- Loan amount and term. A longer term lowers the monthly payment but raises total interest. Borrow only what you need.
- Credit-bureau reporting. On-time payments on an installment loan that is reported to the credit bureaus can help rebuild your history; late payments will hurt it.
- Secured vs. unsecured. Some lenders offer a lower rate if you pledge a car or other collateral, but you can lose that collateral if you default.
Personal loan options compared
| Provider / option | APR range | Loan amounts | Fees | Rate check | Good to know | |
|---|---|---|---|---|---|---|
| Federal credit union PAL Payday Alternative Loan (NCUA rules) | Up to 28% maximum | $200–$1,000 (PALs I); up to $2,000 (PALs II) | Application fee up to $20 | See provider site (varies by credit union) | PALs I needs 1 month of membership and a 1–6 month term; PALs II can be offered on joining, 1–12 months. No rollovers. | Learn more |
| Upgrade | 7.74%–35.99% | $1,000–$50,000 | Origination fee: See provider site (included in APR); no prepayment fee | Soft inquiry | Terms 24–84 months. Optional secured loan with your car. Joint applications accepted. | Apply / Learn more |
| Upstart | 6.1%–35.99% | $1,000–$75,000 (state minimums vary) | Origination fee may apply: See provider site; no prepayment penalty | Soft inquiry | 3- or 5-year terms. Looks at income and employment as well as credit history. | Apply / Learn more |
| Avant | 9.95%–35.99% | $2,000–$35,000 | Administration fee up to 9.99% | Checking options doesn’t affect your score | Terms 24–60 months. Not available in every state. | Apply / Learn more |
| OneMain Financial | 11.99%–35.99% | $1,500–$35,000 (state limits apply) | Origination fee: flat $25–$500 or 1%–10% of the loan, subject to state limits | Looking won’t affect your score | Secured and unsecured loans; terms 24–60 months; 1,300+ branches. APRs are generally higher without vehicle collateral. | Apply / Learn more |
Last checked: Nov 2026. Figures come from each provider’s own website or from the CFPB/NCUA (mycreditunion.gov, ncua.gov, upgrade.com, upstart.com, avant.com, onemainfinancial.com). Rates, fees and terms change and can vary by state; “See provider site” means the provider doesn’t publish that figure or we couldn’t confirm it. Always read the provider’s current terms before you apply.
Minimum credit scores are not published by any of these lenders, so that column is left out. See also: How to overcome credit score obstacles when applying for a personal loan.
Alternatives and warnings
- Avoid payday loans. The CFPB notes that a typical two-week payday loan with a $15-per-$100 fee works out to an APR of almost 400%. A credit union PAL is capped at 28%. Read 5 payday loan pitfalls and alternatives and the CFPB’s payday loan explainer.
- Watch for upfront-fee scams. Legitimate lenders take any fee out of the loan proceeds or add it to the loan. Be wary of anyone asking you to pay before you receive a loan.
- Consider other options first: a payment plan with the creditor you owe, a hardship program, or help from a nonprofit credit counselor. See our debt consolidation comparison.
Frequently asked questions
Can I get a personal loan with bad credit?
Possibly. Some lenders consider income and employment as well as your score, but approval is never guaranteed and the APR will usually be near the top of the lender’s range. Prequalifying with a soft inquiry lets you compare without hurting your score.
Does checking my rate hurt my credit score?
Not with lenders that use a soft inquiry to show your rate, as all four online lenders above say they do. A hard inquiry usually happens when you accept an offer and submit the full application.
What is a payday alternative loan (PAL)?
A small-dollar loan that federal credit unions can offer under NCUA rules, with APR capped at 28%, an application fee of no more than $20 and terms of up to 6 or 12 months. Ask your local federal credit union whether it offers PALs.
Is a secured personal loan a good idea?
Pledging a car can lower your rate or raise the amount you can borrow, but the lender can take the vehicle if you don’t repay. Only consider it if the payment fits comfortably in your budget.
This page is general education, not financial, legal or credit-repair advice. Approval, rates and terms are set by each provider and are never guaranteed. See our Financial Disclaimer.