personal loan for bad credit, calculator and sign
Camino Financial
By: camino-financial
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The Ultimate Guide to Personal Loans for Bad Credit

You may not be aware that personal loans for bad credit exist. That’s why we created a list of lenders for people with bad credit scores or no credit history at all.

You can apply for a personal loan with bad credit, and today you will learn how to do it. We provide extensive information regarding this type of alternative financing, and we even list the best bad credit loans.

On average, 11.1% of American consumers have poor credit scores, and 22% of the population doesn’t even have a FICO score

Camino Financial has minimum requirements and, depending on your situation, can work with you even if you have a bad credit score.

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What is a bad credit personal loan?

They are loans that financial institutions can approve even if the applicant has a bad credit score. However, because lower credit scores mean the person is a riskier lendee, these loans tend to be more expensive.

A person usually has a low credit score because, in the past, they have failed to pay their bills on time or not at all.

What interest rate can I expect if I have bad credit?

Lenders charge interest rates based on your creditworthiness (your ability to repay a loan). So by reviewing your credit history, a lender can determine whether you’re in a position to pay back additional debt.

And because lenders see people with bad credit as a greater financial risk, they charge higher interest rates to offset that risk.

A good credit score is necessary to obtain affordable financing.

The lenders for this type of loan charge the highest rates to borrowers with poor credit because they present more risk if they default on repayment. This enables personal loan companies for bad credit to recoup potential losses when the loan balance is the highest at the beginning of the loan.

credit report with poor score

Types of personal loans for bad credit

If you have a bad credit score, there are different options if you need cash. 

Online personal loans

Online lending is convenient, and access to fast cash, that’s one of the reasons why people prefer it. They can apply without leaving their home or business and have funds in some cases in as little as two days.

Online lenders use financial technology to make the loan approval process more manageable. In addition, applicants have access to their financial products and services exclusively online.

These alternative lenders don’t have the same overhead costs incurred by brick and mortar banks. Therefore, they can offer cheaper financial products.

Camino Financial is an online lender with minimum requirements that can help you get the caital you need.

Personal Line of Credit vs. Personal Loan: Which Is the Best Option for You

With Camino Financial, you can expect that your Annual Percentage Rate will never go over 35%.

Apply for a loan with competitive rates!

Direct lenders

You can obtain direct loans through banks, the government, and credit unions at physical and online locations. Most personal loans are from direct lenders.

For the most part, these financial institutions have their own money and don’t rely on investors. As a result, it’s possible to save money when working with a direct lender because there are no broker fees to pay, but you will pay processing and origination fees.

Since direct lenders have an in-house underwriting department, you may have to start all over again with another lender if you don’t meet a lender’s financial requirements.

Cash advances

Another type of personal loan is cash advances, an ideal way to receive cash when you can pay it off each month. In addition, they are tempting because you can overuse the available credit quickly.

A credit card company usually issues.

Banks start charging interest and transaction fees on the advance as soon as it posts, ranging from 20% to 30% APR or more. Those charges add up quickly when you can only make minimum payments.

If you don’t pay back the amount on a timely basis, the borrower incurs a late payment penalty and notices on their credit history record.

Payday loans

A payday loan has few requirements and is easy to access, but interest rates can average as high as 400%. Also, you give the lender access to your bank account.

Usually, lenders advertise these loans for emergencies, but most people use them to pay monthly expenses such as rent and utilities. But even though these personal loans for bad credit might seem like a good option, they’re very risky.

Borrowers can quickly incur debt when they fail to repay the fast cash loan, which does nothing to build your credit history.

Lenders require a postdated check that covers the loan plus any fees. In addition, they usually require authorization to withdraw the money electronically. If you don’t have the money to repay the loan, you create a debt tailspin where you ruin your credit and encounter debt collectors.

If you don’t qualify for a personal loan, you can boost your credit score. Just pay your bills on time, reduce the balance on credit cards to less than 30% of the allowable credit limit and stop opening new credit accounts.

The top 10 online personal loans for bad credit

Online loans for bad credit tend to be safer than payday loans and cash advances. We think they’re the best personal loans in the market, that’s why we decided only to list online lenders.

The quick personal loans in this list are some of the best ones out there.

Camino Financial’s Solopreneur Loan


Easy-approval personal loans for bad credit

At Camino Financial, we designed our alternative personal loan to help people who need cash to invest in their financial independence or start a business.

Minimum credit score: You don’t need to have a previous credit history to apply, and, depending on your situation, we can approve you even if you have bad credit.

Loan amounts: The loans range between $1,500 to $7,500

Loan term: You have enough time to repay (which means lower monthly payments). We offer repayment terms from 12 to 36 months.

Other requirements: You need to have a monthly income of at least $1,500, a bank account that’s been active for at least 6 months, and be current with outstanding debt. That’s it!

Benefits: You can receive your Camino Financial loan in as fast as 2 days! After 8 timely monthly payments, you can graduate to a better loan. The best part is that we are very flexible in how you can use the loan proceeds.

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lending club logo

Bad credit loans with larger amounts

Minimum credit score: Applicants must have a minimum score of 600.

Loan amounts: This online lender offers loan amounts between $1,000 to $40,000

Repayment terms: They offer two repayment terms of 36 or 60 months.

Other requirements: You need a minimum credit history of three years and a debt-to-income ratio of less than 40% for single applications or 35% combined for joint applicants.

Other fees: Lending Club has loan origination fees from 3% to 6%.


upgrade logo

No minimum income requirement loans

Minimum credit score: There’s a minimum score of 580 to apply.

Loan amounts: $1,000 to $35,000.

Other requirements: The lender doesn’t have a minimum income requirement, but applicants must have a maximum debt-to-income ratio of 45%, which doesn’t include a mortgage payment.

Benefits: Borrowers can use the funds for several purposes. Borrowers receive funds in 4 business days unless they want to use proceeds to pay off loans, which can take up to 2 weeks.


avant logo

Loans for middle-income borrowers

Minimum credit score: Borrowers must have a minimum score of 580.

Loan amounts: Loan amounts ranging from $2,000 to $35,000.

Other requirements: Avant has a minimum income requirement of $20,000/year. Along with employment and self-employment income, you can include alimony and child support as additional income in consideration for loan approval. The company does not allow co-signers or co-applicants.

Other fees: When considering this lender for bad credit, keep in mind that they charge an upfront administrative fee.

OneMain Financial

OneMain Financial logo

Quick personal loans

Minimum credit score: Loans for bad credit from OneMain Financial don’t have a minimum credit score requirement.

Loan amounts: from $1,500 to $20,000

Other requirements: Larger loans are secured by a motor vehicle that meets OneMain Financial’s guidelines. They don’t require a minimum income.

Other fees: The lender charges an origination fee and provides an option to choose a payment date. Flat and percentage-based fees and maximum unsecured loan amounts vary per state.

 Benefits: Depending on your financial health, funds are available the same or next business day.

Universal Credit

Universal Credit logo

Bad credit loans with larger amounts

Minimum credit score: Universal Credit applicants must have a 580 minimum score to apply.

Loan amounts: Up to $50,000

Other requirements: Other loan terms include a minimum of 2 credit accounts to access the credit history and a maximum debt-to-income ratio of 75%, including a mortgage and the loan that’ll be approved.

Other fees: Universal Credit charges an origination fee and doesn’t offer to co-sign, joint, or secured loan options.


upstart logo

Bad credit loans with larger amounts

Minimum credit score: For anyone facing a poor credit score, Upstart accepts borrowers with a score of 580 and works with applicants with no credit histories.

Loan amounts: Up to $50,000.

Other requirements:This lender for bad credit requires that applicants have a personal bank account with a U.S. routing number.

Other fees: Applicants are not required to make a down payment nor face prepayment penalties.


LendingPoint logo

Quick personal loans 

Minimum credit score: 580

Loan amounts: Lending Point offers loans from $2,000 to $25,000.

Repayment terms: from 24 to 48 months.

Other requirements: These loans don’t have a minimum income requirement. However, LendingPoint will only approve you if you have a debt-to-income ratio of less than 50%.

Other fees: Fees range from 0% to 6%, depending on your state of residence

Benefits: The lender reports payments to 2 of the 3 credit bureaus. They usually fund loans one day after the loan approval.

Prosper Borrowers

prosper logo

Bad credit loans with larger amounts

Minimum credit score: 640

Loan amounts: Prosper Borrowers offers too this type of loan in amounts up to $40,000

Repayment terms: Borrowers can choose two repayment options: 36 and 60 months.

Other requirements: Applicants must have a minimum credit history of 2 years and 3 open accounts listed on their credit report. Applicants must provide an SSN and have a U.S. bank account. In addition, no bankruptcies can be filed within the past year to qualify with this lender.

Other fees: The lender charges origination and late fees.

Rocket Loans

Rocket Loans logo

Low-interest personal loans 

Minimum credit score: Rocket requires a minimum score of 580.

Loan amounts: You can borrow from $2,000 to $45,000.

Repayment terms: 36 or 60 months.

Other requirements: Their loan does not allow co-signers and submit a soft credit inquiry to check the initial rate.

Other fees: Rocket Loans charges an origination fee of 1% to 6% of the final loan amount. In addition, the lender charges late payments and insufficient payment fees.

Benefits: It’s possible to receive loan proceeds within the same business day. Rocket Loans allows borrowers to pay off their loans in advance without charging a prepayment penalty.

Keep reading: How to Get a Loan With No Credit History

How to choose a personal loan with bad credit

When you apply for this loan, you want to know the lender’s requirements before submitting a loan application. Complete a mental checklist by answering these types of questions beforehand.

  • What are the lender’s loan terms, interest rates, fees, and penalties? Are they transparent about their APR (annual percentage rate), which includes interest, origination, and other fees?
  • Can you access borrower reviews (both negative and positive) to determine the lender’s reputation?
  • How long does a lender’s online application process take from beginning to end?
  • How soon are funds available after the loan is approved?
  • What are the lender’s loan requirements, such as a minimum credit score or income?
  • Do they perform a hard or soft credit check? A soft credit check doesn’t affect your credit score.
  • Does the lender offer customer support that can answer all your questions? Apply with a lender with customer support. You might have many questions before, during, or after applying. A good lender will have a phone number to call or an available chat service.
  • Are there a variety of repayment terms available?
  • Can you access your loan payment information online at your convenience?
  • Does the lender provide a personal loan calculator so you can see the terms to determine if taking out a loan is affordable?
  • Are there any restrictions on how you can use the funds?
  • Does the lender guarantee to keep your personal information private?
  • What type of cyber security does the lender use to protect sensitive data?
  • Is the lender registered in the state and transparent about their operation?
  • Does the lender offer different payment options? Examples: pay by check or credit card, make payments through the lender’s website, or an automatic payment?

By investigating the specifics of a lender’s lending process, you’re in a better position to decide which lender is right for you.

Camino Financial is a lender with great terms and even better customer service.

Request a quote for a loan!

personal loans for bad credit contract

How to apply for a personal loan with bad credit

Apply for a personal loan once you decide which lender best fits your needs. Follow these quick step-by-step instructions:

Know your credit score

You can get a free credit report from each of the 3 credit bureaus every year or from Credit Karma. By knowing your score, you’ll get a general idea of the interest rate the lender may charge.

Decide if you want to apply for secured loans or unsecured loans

Not all personal loans are the same, especially when it comes to poor credit. Some lenders might require collateral and some others don’t.

  1. secured loans require collateral
  2. unsecured loans don’t require collateral

Because you’re putting your assets at risk, the personal loan interest rates for secured loans tend to be lower. The problem is that, if you default to pay, you might lose that asset

Knowing if you’d get a secured or unsecured loan is a crucial step.

Make sure that you meet the requirements of the bad credit loans

Before applying for these loans for bad credit, you need to perfectly understand the lender’s requirements. Otherwise, you probably won’t qualify.

Some personal loan companies for bad credit may require at least 3 years of credit history, a minimum credit score, or a specific debt-to-income ratio, for example.

At Camino Financial we have minimum requirements!

Apply now!

Before you apply, know how much money you need to borrow

Use our free business loan calculator to determine which terms and costs are affordable for your budget.

Collect the documents you need to speed up the application process

In most instances, you’ll need:

  1. SSN
  2. copy of bank statements
  3. proof of identity (driver’s license, passport)
  4. copy of latest pay stub
  5. W-2 or business financial statements
  6. tax returns, and 1099s
  7. copy of utility payment to verify your address
  8. business or employer’s contact information

Camino Financial has a paperless application! You only need your SSN or your ITIN and a valid ID card.

Supply the requested personal information

Expect to provide personal information such as:

  1. legal name
  2. Address
  3. mobile phone number
  4. email address
  5. date of birth
  6. citizenship status
  7. income
  8. the total amount of debts and income

Share financial information

Depending on the lender, they may either:

  1. require you to submit your bank statements
  2. use a secure system to link to your bank account(s) to verify financial information.

Of course, you would only provide this type of information to a reputable and trusted lender.

If you need to submit documents electronically, make sure the lender uses an online system such as Plaid, Finicity, or MX.

Camino Financial uses Plaid, a very secure application used by thousands of banks and financial institutions.

Read the contract carefully

If the lender approves the loan, read the online contract carefully to verify all information.

What’s important to remember is that you aren’t obligated to accept offers for people with bad credit.

Only accept an offer when you’re in a financial position to repay the loan and if you’re comfortable with the terms.

Receive your cash

Once you agree to the loan terms, most online lenders will transfer the personal loans digitally to your bank account.

BONUS: Don’t forget to make your monthly payments

After receiving the funds, make on-time payments to build a positive credit history and avoid extra fees.

What Guaranteed Loan Approval No Credit Check is

man smiling because he got personal loans for bad credit

Online personal loans, even with bad credit can help you achieve success

Personal loans for bad credit help individuals who currently have poor credit scores to obtain financing.

At Camino Financial, we developed the Solopreneur loan to fund the needs of people with no credit history. Depending on your situation, we can even approve your loan if you have bad credit!

Additionally, you can use the proceeds for your business or as a personal loan.

There are very few easy-to-meet requirements, and we offer an online application that takes less than 5 minutes to complete. In addition, we don’t charge a prepayment penalty when you pay off your loan early.

Apply for a loan today and discover how we can be the financial link to a prosperous future.

Get Approved For A Loan Today


Frequently Asked Questions

What are predatory lenders?

As the name implies, these money lenders prey on unsuspecting borrowers desperate to obtain cash, especially seniors and individuals that don’t understand much about finances. Their terms are usually not favorable at all.

The hardest-hit minority groups are women, African Americans, and Latinx communities.

Predatory lenders may use aggressive sales tactics or seek out vulnerable consumers that can’t afford a loan or anyone who struggles financially. Then, these lenders convince the person to get a loan that they can’t really afford.

Are personal loans bad for credit?

When a lender runs a hard credit check to determine your financial health, your credit score may drop about 5 points.

If you apply for credit from multiple lenders in a short period, your credit score could drop significantly, too.

What is considered bad credit?

Your credit score reflects how you handle your finances. FICO scores range between 300 and 850, with 300 – 579 considered poor and 800 – 850 as excellent.

How does a bad credit score affect your ability to get a loan?

Lenders favor higher scores because it’s one indicator that the borrower can repay a loan.

Credit scores reflect your payment history, credit usage, the length of your credit history, the types of credit accounts you have, and recent credit activity.

How can I improve my credit score?

Your credit score is of primary importance to lenders because it indicates the debts you incur and whether you make monthly payments on time. Fortunately, improving your credit score is not that complicated.

How much money can you borrow with bad credit?

Lenders consider a range of factors to determine the amount of money they can safely loan to borrowers. Therefore, the amounts you can borrow vary per lender, but with most lenders, you can expect to receive the lowest amount if you have bad credit.

With Camino Financial, you can borrow up to $7,500 with minimum requirements!

Apply now!


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