Best Personal Loans for Bad Credit — April 2026
How we rank these lenders
We compared 26 personal loan lenders across 4 weighted pillars. Ranking is not based on commission — eligibility and affordability for your profile dominate the score.
How we make money: Financer is an independent comparison service. We receive compensation from some lenders when you apply, which may influence which lenders appear — but not their ranking order or the rates you're offered.
26 lenders match your profile
Understanding personal loans for bad credit
A personal loan for bad credit is an unsecured installment loan designed for borrowers with FICO scores below 670. Lenders in this space typically use alternative underwriting data — bank transaction history, employment verification, or state ID — and may perform a soft credit check rather than a hard pull.
How bad credit lenders evaluate you
Most lenders in our comparison look at four factors, weighted differently by each:
- Income verification — steady monthly income of at least $1,000–$2,000.
- Active bank account — usually required for deposit and repayment.
- State of residence — some lenders can't legally operate in all 50 states.
- Credit history — soft pull to assess repayment capacity, not a hard inquiry.
Safer alternatives before borrowing
If your situation allows, consider these lower-cost options first:
- Credit union Payday Alternative Loans (PALs) — capped at 28% APR, up to $2,000.
- Secured personal loans — use savings or a vehicle as collateral for a lower rate.
- Credit builder loans — small loans designed to rebuild your score.
- Nonprofit credit counseling — free through NFCC member agencies.