Whether it’s for a new house, an upcoming event, or to consolidate debt, personal loans have you covered for no collateral! For a newbie borrower, it can be daunting choosing a lender from the multiple options available. However, before you secure your loan, it is essential to do your due diligence on your chosen lender and their mode of operations to avoid future hassles.

Best Personal Loans for Bad Credits

Personal loans are typically unsecured loans, and countless lenders exist that cater to a wide variety of borrowers with their different credit scores and loan purposes. As a guide, we have come up with a list of reputable lenders and information on the kind of borrowers they work with. The good news is that no matter your financial situation and credit score, there is a lender for you.Personal loans are typically unsecured loans, and countless lenders exist that cater to a wide variety of borrowers with their different credit scores and loan purposes. The lenders to be reviewed in this piece are proven tested and trusted for their seamless transactions, reasonable rates and transparent fees.


This is easily the best lender for high-credit borrowers. For your personal loans in emergencies, LightStream is your go-to because of the relatively low rates and quick disbursal. You can get loans between $5,000 and $100,000 from this lender, with a repayment duration of up to seven years for amounts higher than $25,000.

There are no additional fees involved, and the Annual Percentage Rates (APR) range from 2.49% to 19.99%, depending on repayment duration. The only downside to choosing LightStream is that you cannot get any loans lower than $5,000, and it is exclusive to borrowers with good credit only (680 at least). These are hardly cons, anyway, but they are worthy of note.

Rocket Loans

Even faster than LightStream when it comes to emergency funding is Rocket Loans. As their brand name implies, your loan application for as high as $45,000 can get approved and disbursed on the same day you apply. Compared to LightStream, Rocket Loans give out loans as low as $2,000 but not without origination fee charges of 1%-6%, depending on the amount borrowed.

They are not picky when it comes to credit score, but borrowers with bad credit may have to compensate for that with cut-throat interest rates. Apart from the high-interest rates of 7.16% to 29.99%, Rocket Loans has very rigid repayment schedules; typically five years at most. Late repayments attract additional costs of 15%. If you are a borrower with decent credit and the ability to repay loans early enough, this might be a good choice of lender for you.


Let’s face it, not everyone can have excellent credit. Life happens and people find themselves in unprecedented situations that put a strain on their finances. Bearing this in mind, Upstart has made their loan services accessible to even borrowers with fair credit scores as low as 600. This finance company disburses loans from $1,000 for fifty thousand folds of it.

It is important to note that the minimum amount may vary by location, and your eventual approved loan amount will be determined by your credit score, income and other information you make available in your application. While you will enjoy timely loan disbursal when approved, Upstart’s loans are not without origination fees of 8%, origination fees (not binding on all loans), and staggering interest rates of up to 35.99%.


One feature that distinguishes this lender from the others is unemployment protection. Basically, this means that if you happen to lose your job due to circumstances you had no fault in, you can apply for loan forbearance. With this, you can take as much as three months to delay repayment, affording you time to stabilize your finances. This duration is not without interests but is a decent time frame to get your affairs in order before your first repayment. With SoFi, you can apply for loans with a $5,000 minimum and a $100,000 maximum limit.

Rate options can be fixed or variable, depending on your application information. You need an excellent credit score to take a personal loan from SoFi, and the interest rates are very bearable, especially with autopay: 5.99% to 18.85%. Another perk is the flexible repayment schedule of 1 to 7 years. On the flip side, SoFi may not be suitable for emergency funding. Loan approval may take up to a week, and disbursal, a few more days.


One of the challenges associated with loans is that of a minimum limit. For personal loans, you may not need more than a couple thousand dollars, and for a short time, but many lenders do not bring their loan offers to the minimum needed. Consequently, the borrower is inclined to take out more than they need, causing financial constraints. Fortunately, lenders like LendingClub offer as low as $1,000, and for even borrowers with not-so-great credit.

This lender also gives special consideration to natural disaster victims who need loans to get back on their feet. The downside to choosing this lender is that their services are unavailable in some regions. Also, apart from the origination fees which range from 3% to 6%, the APRs are on the high side: 8.05% to 35.89%. It also takes up to four days to have your loan disbursed. LendingClub makes up for these with their very flexible repayment schedules ranging from three to five years.


Say you find yourself in a bit of a financial strait and you need quick cash; payday loans can be very tempting, but their interest rates accrue so dauntingly that you may just wind up financially worse than you started. Earnin is a friendlier alternative that lets you take mini loans of up to $100 per day based on how many hours you work at zero interest rates or additional charges.

The loan amount taken is deducted when the borrower’s employer pays at the end of the day. You have the option of “tipping” Earnin, but it is not compulsory. While the advantages of choosing this lender, it is noteworthy that it is not suitable for big loans. You can only access little amounts at a time, depending on your income.

Best Personal Loans


What Are Personal Loans?

Simply put, personal loans are loans taken to cater to personal needs and with no collateral. Primary qualifications for personal loans are the borrower’s credit score and income.

What Is The Procedure For Personal Loans?

Mostly easy. After deciding on your lender, you need to apply for the loan. This stage is when the lender collects your personal information to determine your eligibility and how much you can access. The next stage is to get your loan approved by the lender, and have your designated funded after due charges are calculated and subtracted, if at all. A repayment schedule is agreed upon by the lender and borrower, and it is up to the latter to make timely repayments to sustain good credit.

What Credit Score Qualifies Me For Personal Loans?

This varies from lender to lender, but if your credit score is not too great, you may have to put up with higher interest rates than others. You will also need to put in more work to find a lender willing to take the risk. An average to excellent credit scores puts you in a better position to access personal loans from any lender you walk up to.

When And Where Can I Get A Personal Loan?

Anytime you need it and from any credible lender of your choosing. It is highly recommended that you research well enough and take quotes from as many lenders as possible before deciding.

Can I Use A Personal Loan To Consolidate Debt?

This goes without saying; yes, you can. Debt consolidation is one of the reasons people resort to taking personal loans. Smaller, multiple loans with high interests can pose a great challenge to the borrower. Multiple loans are harder to keep track of and repay on time. To put an end to the debt cycle, many take out big personal loans to clear other debts.

After all one big debt is much easier to manage than multiple small ones, and with personal loans, you will spend way less on interest. In conclusion, a personal loan can be a lifesaver or a quagmire of debts that will ruin your credit score and put you in more financial difficulties if not well handled. Only take amounts you need per time, and that you can afford to repay based on your income.

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I am Wilhelm Laubach from Bulgaria. I have created this blog to share my views on finance. I am expert in the finance field and have experience of several years.