Best Banks and Lenders for Bad Credit Loans
Introduction
Best Banks and Lenders for Bad Credit Loans
Having bad credit can make it difficult to secure loans, but that doesn’t mean you’re out of options. Many banks and lenders specialize in bad credit loans, providing financial relief to individuals with low credit scores. Whether you need a personal loan, auto loan, or emergency cash, there are lenders willing to work with you.
In this guide, we’ll explore the best banks and online lenders offering bad credit loans, their requirements, and tips on how to improve your loan approval chances.
Best Banks and Lenders for Bad Credit Loans
What Are Bad Credit Loans?
Bad credit loans are specifically designed for borrowers with low credit scores (typically below 580). These loans may have: 
Higher interest rates
Shorter repayment terms
More flexible approval requirements
They help people rebuild credit while gaining access to funds for emergencies, debt consolidation, or other financial needs.
Best Banks for Bad Credit Loans
Traditional banks are often hesitant to lend to people with bad credit, but some banks offer secured or specialized loans for such individuals. Here are the best options:
1. Wells Fargo
Offers personal loans to bad credit borrowers with an existing account
Loan amounts: $3,000 – $100,000
Interest rates: Varies based on credit history
Secured loan options available
Best for: Existing Wells Fargo customers who need larger loans
2. U.S. Bank
Provides secured personal loans for people with poor credit
Loan amounts: $1,000 – $50,000
Lower interest rates with collateral
Best for: Those willing to provide collateral for better loan terms
3. TD Bank
Offers Flex Loans with fixed monthly payments
Loan amounts: $2,000 – $50,000
Accepts fair to poor credit borrowers
Best for: Individuals with a credit score of 580+ looking for fixed-rate loans
4. OneMain Financial
Specializes in loans for bad credit borrowers
Loan amounts: $1,500 – $20,000
Higher approval rates compared to traditional banks
Best for: Those who need fast funding with flexible requirements
Best Online Lenders for Bad Credit Loans
If banks are not an option, online lenders provide easier approval and fast access to loans.
1. LendingClub
Peer-to-peer lender with flexible loan terms
Loan amounts: $1,000 – $40,000
Minimum credit score: 600
Funding time: 1 – 2 business days
Best for: Those with a credit score of 600+ looking for competitive rates
2. Upgrade
Accepts credit scores as low as 560
Loan amounts: $1,000 – $50,000
Offers free credit score monitoring
Best for: Low-income borrowers looking for manageable payments
3. OppLoans
No minimum credit score requirement
Loan amounts: $500 – $4,000
Reports to credit bureaus (helps improve credit score)
Best for: People with very poor credit (below 500) who need small loans
4. Avant
Requires a minimum credit score of 580
Loan amounts: $2,000 – $35,000
Interest rates: 9.95% – 35.99% APR
Best for: Mid-range bad credit borrowers who want lower APRs
5. MoneyMutual
Matches borrowers with lenders specializing in bad credit
Loan amounts: $250 – $5,000
Fast approval (as little as 24 hours)
Best for: Quick cash loans for emergencies
How to Get a Loan with a Low Credit Score
How to Get Approved for a Bad Credit Loan
Getting a loan with bad credit isn’t impossible, but you’ll need to prepare carefully. Here are some tips to improve your chances:
1. Check Your Credit Report
Get a free credit report from AnnualCreditReport.com
Dispute any errors that might be lowering your score
Make sure all past debts are reported correctly
2. Apply for Secured Loans
Consider secured loans backed by collateral (car, home, savings)
Secured loans have lower interest rates and higher approval chances
3. Compare Lenders Before Applying
Use loan comparison websites (e.g., LendingTree, MoneyMutual)
Avoid lenders with hidden fees or extremely high interest rates
4. Get a Co-Signer
A co-signer with good credit improves your chances of approval
They agree to repay the loan if you default
5. Consider Credit Unions
Local credit unions often offer lower interest rates than banks
Some credit unions accept low-credit borrowers as members
6. Avoid Payday Loans 
Payday loans have very high APRs (300% – 600%)
They can trap you in a cycle of debt
Choose personal loans or installment loans instead
Conclusion
Bad credit doesn’t have to stop you from securing a loan. Whether you prefer traditional banks like Wells Fargo and TD Bank, or online lenders like LendingClub and Upgrade, there are plenty of options available.
Choose a lender that reports to credit bureaus (helps rebuild your credit)
Compare interest rates & repayment terms before applying
Consider secured loans or a co-signer for better approval chances
Need a loan fast? Check out our recommended lenders today and take the first step toward financial stability! 
Related Articles:
How to Improve Your Credit Score in 6 Months
Best Personal Loans for Low-Income Borrowers
Top Credit Cards for People with Bad Credit