Personal loans for bad credit exist, but they are not cheap. At both lenders below, APRs run as high as 35.99%, and an origination fee comes out of the money before it reaches you. In each lender’s own published example, a $10,000 loan costs about $2,793 in interest and fees over 36 months at Upgrade and about $6,491 over 60 months at Upstart. Here is how the two compare, what bad credit changes and how to see your rate without a hit to your score.
The short answer
Ben’s 3 steps before you take a loan
- Check your rate at both lenders. Each uses a soft credit check, so you can see real offers without a mark on your score.
- Compare the APR, then the amount you actually receive. The origination fee is deducted from your loan, so a $10,000 loan can put less in your account.
- Pick the shortest payment you can handle. A shorter term costs far less in interest, and you can still pay off early with no prepayment fee at either lender.
Checking your rate is a soft credit check and won’t affect your credit score. Loan amounts, APRs and approval depend on your profile, and not everyone qualifies.
Personal loans for bad credit compared
You are choosing between two lenders, so the table lines up what matters when your credit is thin: how much you can borrow, the APR range, how long you get, what the fee is and how fast the money arrives. The figures come from each lender’s own published terms.
| Lender | Loan amount | APR range | Terms | Origination fee | Funding | |
|---|---|---|---|---|---|---|
| 1. Upstart | $1,000 to $75,000 | 6.1% to 35.99% | 3 or 5 years | Varies; 8.31% in its example | As fast as 24 hours after approval | Check at Upstart |
| 2. Upgrade | $1,000 to $50,000 | 7.74% to 35.99% | 24 to 84 months | 1.85% to 9.99% | Within 1 business day of verification | Check at Upgrade |
The lowest rates go to the most qualified applicants. With weaker credit, plan for the upper part of each range, and note that Upstart has state minimums, such as $3,100 in Georgia, $1,500 in Hawaii and $7,000 in Massachusetts.
Ben’s take
Neither lender publishes a minimum credit score, and both say a low score does not automatically rule you out. That is the good news. The bad news is that the top of both ranges is 35.99%, so a loan is only worth taking if the offer you see is clearly better than what you pay now.
What bad credit changes about a personal loan
Bad credit shifts three things: the APR you are offered, the fee that comes out of the loan and how much room you have to say no. Both lenders say the lowest rates are for the most qualified applicants, so a lower score usually lands you higher in the range. Upgrade also says its lowest rates require autopay and paying off part of your existing debt directly to creditors.
The fee matters because it is taken from the loan before you get it. At Upgrade the fee runs from 1.85% to 9.99%, and Upstart says an origination fee may apply depending on your terms and state. That is why the APR is the number to compare. It rolls the interest and the fee into one rate, and the interest rate alone does not.
What each lender’s own example costs
- Upgrade, 36 months. A $10,000 loan at 17.59% APR (a 13.94% yearly rate plus a 5% fee) puts $9,500 in your account, with payments of $341.48 a month. Your payments total $12,293.46, so interest and fees come to about $2,793.
- Upstart, 60 months. A $10,000 loan at 23.48% APR (a 19.12% rate plus an 8.31% fee of $831) puts $9,169 in your account, with 60 payments of $261. Your payments total about $15,660, so interest and fees come to about $6,491.
- How to read them. These are two different borrowers, so this is not a rate contest. It shows that a longer term and a higher rate multiply the cost, and the fee is on top of both.
Ben’s take
Ask what the monthly payment is on the shortest term you can afford, not the longest. The longest term gives you the lowest payment and the biggest total bill.
How to check your rate without hurting your credit
- Start with a soft check at both lenders. Upstart says checking takes less than 5 minutes, and both use a soft inquiry that does not affect your score.
- Compare the APR, the fee and the amount you receive. Line them up for the same loan amount and term, since a lower payment can just mean a longer loan.
- Only accept one offer. A hard inquiry follows when you accept an offer and go forward, and it can affect your score. Applying at both after a soft check adds a second hard pull for nothing.
- Have your documents ready. Expect to prove your identity and income, usually with a photo ID and a recent pay stub, tax return or benefits letter.
The two personal loan lenders, one by one
#1 Our first stop
Upstart: looks past your score
- Loan amount$1,000 to $75,000
- APR6.1% to 35.99%
- Terms3 or 5 years
- Rate checkSoft pull, no score impact
Who it fits: your credit is rough but your income and job history are steady, since Upstart says its model weighs income, employment and education along with your score.
Good to know: there is no prepayment penalty, and if you are approved the funds can be sent in as little as 24 hours. Poor credit can still qualify, but approval rests on your full profile.
The catch: the example above is the one Upstart publishes: $10,000 over 60 months, a 19.12% rate and an 8.31% fee of $831, for a 23.48% APR. You would receive $9,169. Late payment and returned payment fees can also apply, and not every applicant is approved.
#2 Best to compare
Upgrade: more room on the term
- Loan amount$1,000 to $50,000
- APR7.74% to 35.99%
- Terms24 to 84 months
- Rate checkSoft pull, no score impact
Who it fits: you want a choice of terms and might apply with someone else, because Upgrade accepts joint applications that count both credit profiles.
Good to know: there are no early payoff fees, and funds go out within 1 business day of clearing verifications. Sending money straight to creditors can take up to 2 weeks.
The catch: the 1.85% to 9.99% origination fee comes off your loan, and your lowest rate depends on autopay and paying down some existing debt directly. Upgrade’s example: $10,000 over 36 months at 17.59% APR gives you $9,500 and a $341.48 payment.
Is a personal loan right for you?
A personal loan helps when you need a lump sum, can repay it on a fixed schedule and the APR beats what you pay now. It hurts when it stretches a short problem into five years or when the top-of-range APR is not much lower than the cards it replaces. Match the amount and the reason to the right tool.
A loan fits when
- You need $1,000 or more in one go.
- The offer’s APR is clearly below your card APRs.
- The fixed payment fits your budget with room to spare.
Skip it when
- You only need a few hundred dollars until payday.
- Your best offer is near 35.99%.
- You would keep using the cards you just paid off.
Under $1,000
A cash advance app is usually faster and cheaper than a loan for a small gap before payday.
Not sure what you need
Answer three questions and the quick cash finder ranks the options that fit.
Paying off cards
Six ways out of debt, with a consolidation loan as one of them.
You own your home
If you need much more than a personal loan gives you, see options that use your equity.
If a bill is the actual problem, try help paying bills first, since a program or a payment plan can cost nothing. A nonprofit credit counselor is another route if lenders say no, and you can start at NFCC.org.
Ben’s take
Borrow for a plan, not for a feeling. A loan with a clear payoff date and a payment you can see yourself making is a tool. A loan to buy time is a bigger version of the same problem.
Get one money email a week
Free, short and in plain English. Loans, debt, bills and the offers that are worth your time.
One email a week. Unsubscribe anytime. Privacy policy
Personal loan questions
Can I get a personal loan with bad credit?
Yes, it is possible. Upstart says approval depends on your overall profile and not just your score, and Upgrade says you may still be eligible. Neither guarantees approval, so check your rate first, since it is a soft check.
What credit score do I need for a personal loan?
Neither lender here publishes a minimum score. Upgrade looks at your credit score, credit usage and payment history along with the amount and term. Upstart also weighs income, employment and education.
Does checking my rate hurt my credit?
No. Both lenders use a soft inquiry to show your rate. A hard inquiry follows if you accept an offer and move forward, and that one can affect your score.
What APR should I expect with bad credit?
Both lenders list APRs up to 35.99%, and both say the lowest rates go to the most qualified applicants. With weaker credit, plan for the upper part of the range, and compare the APR instead of the interest rate, since the APR includes the fee.
Are there fees on a personal loan?
Upgrade charges a 1.85% to 9.99% origination fee deducted from your loan. Upstart says an origination fee may apply, plus late payment and returned payment fees. Neither charges a prepayment penalty, so paying early costs nothing extra.
How fast can I get the money?
Upstart says funds can be sent in as little as 24 hours after approval. Upgrade says within 1 business day of clearing verifications, or up to 2 weeks if the money goes directly to your creditors.
What if I do not qualify?
For a small gap, a cash advance app may cover it for less than a loan. For debt that keeps growing, a nonprofit credit counselor can help set up a plan. Our guide to getting out of debt covers the rest.
Is a personal loan better than a cash advance app?
It depends on the amount. A loan fits a lump sum of $1,000 or more that you repay over months. For a few hundred dollars until payday, an advance app is usually the lighter option.
Keep reading
MoneyAnswers may receive compensation when you apply through partner links, which does not change how an option is described. Upstart loans are made by Upstart’s lending partners, and rates, amounts and approval depend on your profile and state. Information comes from each company’s published terms and can change, so confirm details with the company before you apply. General information, not personal financial advice.
