Best Low Credit Lenders

Finding a loan at a great rate can be a real struggle. It’s rough because you need the money now but don’t want to suffer through the payment. We’ll help you find the best low credit lenders available to get you the best rate on your loan.

For some of us, our financial journey hasn’t been exactly kind to us. Bad credit, low credit scores and a crummy credit history can follow you around for years, like a dark shadow looming over any purchase that you make. It seems like you can’t dig yourself out of the hole, and without a second chance, you can’t buy anything: a house, a car or a loan of any kind. 

Having Bad Credit

Any type of credit account has its activity tracked and reported to at least one of the three major credit bureaus: Equifax, Experian, and TransUnion. It’s the job of these three credit bureaus to compile reports of users’ data and storing it for about ten years in their databases. When you go get a loan or open a new credit account, credit reports are generated from these bureaus will be transmitted to your potential lender, examined and the decision to lend to you will be based off these credit reports.

Having bad credit would mean you carried large revolving debt balances, missed payments and due dates or ignored your accounts, all factors that can cause a credit score to drop dramatically.

If you have bad credit, you fortunately aren’t the only one in the world with this problem. There are lots of people who have had a streak of bad luck, a period of financial straits or weren’t smart about managing their money. The solution waits for you in lenders who specialize in “bad credit” loans or “low credit” lenders.

Your second chance is right around the corner. However, you should be wary because having low credit will always come with a price. As long as you make your payments on time, you won’t only avoid the fees that are to be expect with low credit loans, but you can also work on slowly improving your credit score. Does it happen overnight? No, but you already knew that working your way out of a bad credit spot will take time, patience and hard work.

Top Low Credit Lenders


If you’ve got low credit and are stuck in a tough spot for cash, Avant may be the best lender for your financial situation. With Avant, borrowing amounts range from $2,000 to $35,000. For some borrowing cases, you can also apply online and receive your funds as quickly as the next business day. 

Avant offers loans with 24-month to 60-month terms, with corresponding APRs ranging from 9.95% to 35.99%. However, in addition to the APR, there are administration fees that can go as high as 4.75% per loan.

Avant offers good deals on their loans considering that most low credit lenders charge over 400% APR, making Avant’s 35.99% a stellar choice for people with bad credit by comparison.

Marcus by Goldman Sachs

If you have a FICO credit score as low as 660 and are looking for a personal loan, then Marcus by Goldman Sachs is a definitive option for you. As one of the best debt consolidation loans for bad credit, Marcus acts as a consumer banking and lending outlet operated by Goldman that still offers excellent rates and no fees even if your credit score is low.

The application for this personal loan only takes a few minutes of your time to fill out online. Rates can range from 5.99% to 28.99% APR, all depending on your credit standing and the fluctuating market interest rates. The main stressor for Marcus by Goldman Sachs is: no fees - no signup fees, no prepay fees and no late fees if you’re behind on payments.

One Main Financial

Borrowers can get loans from One Main Financial, one of the best low credit lenders in the present-day marketplace. There’s no minimum credit score requirement, but the average borrower has a score of 600 to 650.

APR ranges from 16.05%-35.99% with origination fees varying state by state. You’re required to have an in-person visit with One Main Financial to complete your application process.

Lending Club

As one of the largest and longest-standing online marketplaces, Lending Club, makes it easy to seek out a loan even if you’ve got bad credit. For people with scores of 660 or above, you can get a loan with this peer-to-peer lending marketplace.

What makes Lending Club different from going to a big-name bank is that investors include regular individuals with their own investments and accounts on the Lending Club marketplace to assist in loans. It’s a different model of banking that skirts the need of large, traditional financial institutions out of the lending equation.

Interest rates with Lending Club range from 6.95% to 35.89% APR, and the rates, similar to other lenders, are determined on your credit. Loans are available through Lending Club in amounts from $1,000-$40,000, equipped with 3-year or 5-year terms. It does take a little longer to get approved for a loan with Lending Club in comparison with other low credit lenders, about 14 days. There are also origination fees that begin at 1% and can be as much as 6% of the loan amount. 

Keep in mind that if you fault on a payment through Lending Club, you aren’t missing a payment to a large bank or traditional lender. 


Like Lending Club, Prosper is a peer-to-peer marketplace. That means your loan isn’t funded by Prosper itself but by investors who back your loan on its platform. Your payments return back to these investor each month, while Prosper takes a small fee from this payment for their hosting services.

Borrowers can get loans from Prosper with credit scores as low as 640, however, the average borrower with Prosper has a credit score of 700. Your credit score will also depend on how high your origination fee will be: ranging from 2.41% to 5%.  Late payments will earn you 5% or $15 fees, whichever amount is greater.

Borrowers who opt to use Prosper can obtain loans from $2,000 to $40,000 for 3-year or 5-year terms. Borrowers can ask for longer terms, but they do come with higher interest rates with lower monthly payments. As an installment loan with fixed interest rates and monthly payments for the course of the 36-month or 60-month term, Prosper doesn’t issue prepayment fees. Interest rates with Prosper loans range from 6.95% to 35.99% APR, depending on your credit standing.

Build Your Credit for a Brighter Future

There are many ways to better your credit health. To help improve your credit score, start by budgeting and taking a beginner’s step in understanding and managing your finances. 

When you don’t have an immediate need for cash, you should try to build your credit in small ways, as this will ultimately help you quality for more loan opportunities in the future. Use online tools to check your credit score periodically, seek out educational materials that can guide you into good monetary habits and start utilizing savings habits to construct stronger financial future.