f you’re looking for loans and have bad credit, there are still options available, though you may face higher interest rates due to the increased risk to lenders. In January 2025, there are a few good options to consider for personal loans, car loans, and credit-building loans. Here are some of the best loans for bad credit:

1. Best for Personal Loans:

Upstart

  • Loan Amount: $1,000 to $50,000
  • APR: 5.4% – 35.99%
  • Why It’s Good for Bad Credit:
    • Upstart uses AI and non-traditional factors (like education, job history) to determine your loan eligibility, which can help if you have bad credit but a solid job or good prospects.
    • They offer loans to people with credit scores as low as 580.
  • Repayment Terms: 3 to 5 years
  • Fees: Origination fees of 0% to 8%, depending on credit.

OneMain Financial

  • Loan Amount: $1,500 to $20,000
  • APR: 18% – 35.99%
  • Why It’s Good for Bad Credit:
    • OneMain Financial specializes in offering personal loans to people with poor credit and doesn’t have strict credit score requirements. They also offer in-person customer support at local branches.
    • Loans are available for those with scores as low as 580.
  • Repayment Terms: 2 to 5 years
  • Fees: No application fees; however, origination fees may apply.

BadCreditLoans.com

  • Loan Amount: $500 to $10,000
  • APR: 5.99% – 35.99%
  • Why It’s Good for Bad Credit:
    • This is an online marketplace that connects you with lenders who are more likely to approve applicants with bad credit. While loan terms and amounts vary, this can be a good option to find competitive rates.
  • Repayment Terms: Varies by lender
  • Fees: No fees for using the service.

2. Best for Credit Building Loans:

Self (formerly Self Lender)

  • Loan Amount: $500 to $1,700 (credit builder loans)
  • APR: 15.9% – 16.5%
  • Why It’s Good for Bad Credit:
    • Self offers credit-builder loans specifically designed to help people with bad credit build or improve their credit scores. The loan is small, and the payments are reported to all three major credit bureaus.
    • After you finish making payments, you get the full amount back (minus fees).
  • Repayment Terms: 12 to 24 months
  • Fees: $9 to $15 monthly fee, plus interest.

CreditStrong

  • Loan Amount: $1,000 to $3,000
  • APR: Varies based on the plan chosen
  • Why It’s Good for Bad Credit:
    • CreditStrong offers credit builder loans with low fees. The loan is designed for those with bad or no credit to improve their credit score over time.
    • It reports to all three credit bureaus and has flexible plans.
  • Repayment Terms: 12 to 24 months
  • Fees: Monthly fees from $8 to $15.

3. Best for Auto Loans with Bad Credit:

Car.Loan.com

  • Loan Amount: Varies (auto loan-specific)
  • APR: Varies
  • Why It’s Good for Bad Credit:
    • Car.Loan.com specializes in connecting people with bad credit to a variety of auto lenders, making it easier to secure a car loan even if your credit score is under 600.
    • It’s a good option if you need a car loan but are worried about your credit score.
  • Repayment Terms: Varies by lender
  • Fees: No fees for using the service.

Auto Credit Express

  • Loan Amount: $5,000 to $30,000
  • APR: Varies based on credit
  • Why It’s Good for Bad Credit:
    • Auto Credit Express helps people with poor credit find financing for vehicles by connecting them to lenders who are more likely to work with individuals with low credit scores. They also have partnerships with many dealers.
  • Repayment Terms: Varies
  • Fees: Varies based on the lender.

4. Best for Payday Loan Alternatives:

Earnin

  • Loan Amount: Up to $500 (for earned wages)
  • APR: 0%
  • Why It’s Good for Bad Credit:
    • Earnin allows you to access a portion of your earned wages before payday without charging interest, making it a good alternative to payday loans for emergencies.
    • It doesn’t perform credit checks, so it’s a good option for those with bad credit.
  • Repayment Terms: Pay back on your next payday
  • Fees: Voluntary tips (no interest or hidden fees).

Things to Keep in Mind:

  • Interest Rates: With bad credit, your interest rates will likely be higher than average. If possible, try to pay off your loans quickly to minimize interest costs.
  • Lender Fees: Always look out for fees such as origination fees, late fees, or prepayment penalties.
  • Paying on Time: Make sure to make all your payments on time to avoid further damage to your credit score.
  • Credit Reports: Even when you have bad credit, paying loans on time can help improve your credit score, so make sure the lender reports to the major credit bureaus.