The bad credit can feel like an obstacle when you need a personal loan. However, in 2025, there are still many lenders offering personal loans for those with less-than-perfect credit scores. Whether you’re in the USA, UK, Canada, or elsewhere, securing a personal loan with bad credit is possible with the right lender and understanding the requirements.
This guide will walk you through the best personal loans for bad credit in 2025, and how to choose the right loan for your financial needs.
Why Getting a Personal Loan with Bad Credit Is Possible
While having bad credit may limit your options, it doesn’t mean you’re completely shut out of the borrowing process. Many lenders specialize in working with individuals who have poor credit scores. Additionally, these loans come with specific terms and conditions to protect both the borrower and lender.
Securing a personal loan with bad credit can help you:
- Consolidate debt: Pay off high-interest credit cards or multiple loans
- Make necessary purchases: Whether it’s a car, home repair, or emergency expenses
- Improve your credit score: If you make on-time payments, your credit score can improve over time
Finding the right lender and understanding your loan terms can help you get a fair deal, even with bad credit.
Best Personal Loans for Bad Credit in 2025
1. Upstart (USA, UK)
Highlights:
- Personal loans for borrowers with bad credit
- Soft credit check with potential for fast approval
- Loan amounts up to $50,000
- Low starting rates for qualified borrowers
- Provides education resources to improve financial literacy
Best For:
Borrowers who want a personal loan with minimal credit history checks and flexible loan amounts.
2. BadCreditLoans (USA)
Highlights:
- Specializes in loans for people with bad credit scores
- Offers loan amounts from $500 to $10,000
- Quick application process with same-day approvals
- Loans available for debt consolidation and emergency expenses
- Accepts borrowers with credit scores as low as 500
Best For:
Those seeking smaller loans for debt consolidation or personal emergencies, especially with a low credit score.
3. One Main Financial (USA)
Highlights:
- Offers secured and unsecured personal loans
- Loan amounts range from $1,500 to $20,000
- Approvals even with less-than-perfect credit
- Flexible repayment options, including in-person payments
- Quick application process and funds disbursed within a few days
Best For:
People who want to borrow a larger sum and are open to using collateral to secure their loan.
4. Avant (USA, UK)
Highlights:
- Loan amounts ranging from $2,000 to $35,000
- Flexible repayment terms of 24-60 months
- Fast funding within 1-2 business days
- Loans available for various purposes like medical expenses, debt consolidation, or home repairs
- Soft credit inquiry for initial application
Best For:
Borrowers who need larger loan amounts for a variety of expenses and have a credit score in the low 600s.
5. Prosper (USA)
Highlights:
- Peer-to-peer lending platform offering loans for bad credit
- Loan amounts from $2,000 to $40,000
- Fast approval process with funds available within 1-3 days
- Loans for debt consolidation, home improvement, and other personal uses
- Relatively low starting interest rates
Best For:
Those who prefer peer-to-peer lending with the ability to choose their own terms for the loan.
6. Lending Club (USA, UK)
Highlights:
- Offers both personal loans and debt consolidation loans
- Loans up to $40,000 with terms from 36 to 60 months
- Soft credit check available with competitive interest rates
- Funds disbursed quickly once approved
- Easy online application process
Best For:
Borrowers with bad credit who need a personal loan or debt consolidation option.
7. Check `n Go (USA, UK)
Highlights:
- Specializes in payday and short-term loans for individuals with bad credit
- Fast approval and funding, often within the same day
- Offers loans for unexpected expenses or emergencies
- Relatively higher interest rates due to short-term nature
Best For:
Those who need emergency funds quickly and can repay the loan in a short amount of time.
8. Creditea (USA, UK)
Highlights:
- Focuses on providing loans for people with poor credit scores
- Offers loan amounts from $1,000 to $10,000
- Flexible repayment plans up to 36 months
- No early repayment penalties
Best For:
Borrowers looking for a small personal loan with longer repayment terms and no prepayment penalties.
9. Radial (USA, UK)
Highlights:
- Offers short-term loans for borrowers with bad credit
- Quick application process and same-day funding
- Flexible loan amounts up to $10,000
- Ideal for paying off emergencies or immediate debts
Best For:
Those who need quick cash for urgent needs and have bad credit, but can repay quickly.
10. Earnest (USA, UK, Canada)
Highlights:
- Personalized loan offers based on your financial situation
- Loans for individuals with a credit score as low as 580
- Competitive interest rates for those with bad credit
- Loans can be used for personal expenses, including home repairs or debt consolidation
- Flexible terms and fast approval
Best For:
People with bad credit who want a personalized loan experience with competitive rates.
How to Improve Your Chances of Getting Approved
While it can be difficult to get approved for a personal loan with bad credit, following these tips can improve your chances:
- Check your credit score: Know where you stand before applying, and look for ways to improve your score before applying for a loan.
- Provide collateral: Some lenders may approve your loan if you offer a car or other asset as collateral.
- Find a co-signer: A co-signer with good credit can improve your chances of approval.
- Work on your debt-to-income ratio: Lenders will look at your income relative to your monthly debts. Make sure your ratio is as low as possible.
- Apply with multiple lenders: Different lenders have different criteria, so it’s worth applying to more than one to find the best offer.
Final Thoughts
Securing a personal loan for bad credit in 2025 is possible, and there are plenty of reputable lenders offering loans to individuals with low credit scores. Whether you’re looking for a loan for debt consolidation, an emergency, or to cover unexpected expenses, these lenders offer flexible terms, reasonable rates, and quick approval processes.
Before applying for a loan, make sure to do your research, compare offers, and follow the tips above to improve your chances of getting approved. Take control of your finances and improve your credit situation with the right personal loan today!
