Best Personal Loans for Bad Credit for December 2024

Why You Should Trust Us

Investopedia’s researchers spent countless hours analyzing hundreds of data points to determine the factors that mattered most for readers when choosing what company to take out a bad credit loan with. When choosing which lenders to feature on this list, Investopedia considered their fees, repayment terms, credit score requirements, and more to provide the most comprehensive and unbiased recommendations possible. Founded in 1999, Investopedia has been dedicated to finding its readers the best bad credit loan companies since 2019.

Methodology

This list of the best personal loans for bad credit is based on extensive research into a group composed of 59 banks, credit unions, and other lenders. Investopedia considered each lender’s APR, loan amounts and terms, fees, customer experiences, and dozens of other factors. Our criteria and ratings were further informed by surveying hundreds of borrowers about their experiences with personal lenders and their opinions on the process. This research and data collection took place between July 23 to Oct. 18, 2024.

Each of the 45 criteria Investopedia evaluated were grouped into one of four categories and weighted them based on their importance to Investopedia’s readers. This data was then used to develop an overall star rating for each of the 59 lenders that were considered. The four categories and their weights are:

• Borrowing Requirements (Secured loans, membership requirement, minimum credit score, and four additional factors): 24.00%
• Lender Features (Online experience, educational resources, pre-qualification, and seven additional features): 24.00%
• Loan Costs (APRs, origination and late fees, and autopay discount): 30.00%
• Loan Terms (Loan terms and amounts, funding time, and approval process): 22.00%

You can find out more about how Investopedia evaluated personal loans in the complete methodology.