8 Best Bad-Credit Personal Loans (for $5,000 and Up)

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Updated: 10th Apr 2021
Written by Kim Pinnelli
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March 29, 2021
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If you have a bad credit score, you can still get a personal loan if you need it. Bad credit personal loans for $5,000 and up aren’t payday loans, and they don’t charge such high fees that they’re unaffordable.

When you know where to look, you can get personal loans for just about any need, even with a low credit score.

Let’s take a closer look at what options are available for bad credit personal loans with guaranteed approval and $5,000 and up.

Bad Credit Personal Loans Guaranteed Approval $5,000

#1. PersonalLoans.com

PersonalLoans.com is an online loan marketplace. It matches borrowers with lenders based on their qualifying factors.

Bad Credit Personal Loans Guarantee Approval $5,000

Once you apply, you may receive multiple offers from different lenders, allowing you to choose. PersonalLoans.com offers loan amounts up to $35,000, but they may limit your loan amount if your credit is too low. They offer APRs from 5.99% – 35.99%.

Perks:

  • Access to many lenders increasing your chance of approval
  • Loans fund in as little as one business day once you’re approved
  • Loan terms are available for up to 72 months to make your payments lower (but you’ll pay more interest)
  • Fast answers on your applications

#2. CashUSA

CashUSA is also an online loan marketplace matching borrowers with lenders based on their qualifying factors.

CashUSA has some strict guidelines you must meet to use the marketplace, including earning at least $1,000 per month.

Borrowers may apply for a loan amount up to $10,000, but the amount you get depends on your credit score and current debt ratio. They offer APRs from 5.99% – 35.99%.

Perks:

  • Answers on your loan application in minutes
  • Funds disbursed within one business day in most cases
  • Loan terms are available for up to 72 months to make your payments lower (but watch the interest costs)
  • Funds deposited directly in your bank account

#3. BadCreditLoans.com

BadCreditLoans.com is another online loan marketplace that matches borrowers with lenders based on their qualifying information.

Bad Credit Personal Loans $5,000 and Up

They offer loans up to $5,000, but like any lender, the loan amount you qualify for depends on your credit score and income (what you can afford).

Most lenders fund your loan by the next business day from BadCreditLoans.com, and the APRs range from 5.99% – 35.99%.

Perks:

  • Simple application process with fast answers
  • Loan terms available up to 60 months
  • Loans fund within one business day after approval
  • Access to many lenders to increase your chance of approval

#4. Avant

Avant specializes in bad credit personal loans. They offer loan amounts up to $35,000 and don’t have a minimum monthly income requirement.

Avant charges a hefty origination fee, which they take out of your loan proceeds, and their interest rates range from 9.95% – 35.99%.

Perks:

  • Often funds within one business day of approval
  • Choose from terms between 2 and 5 years
  • Approves loans with credit scores as low as 580
  • Loan amounts start at just $2,000 if you only need a small loan

#5. Upstart

Upstart looks at the big picture when approving a borrower rather than just the credit score. This makes it easier for borrowers with bad credit to secure a personal loan.

Upstart looks at your job history, education history, and earning potential when assessing your application. Upstart offers loans from $1,000 – $5,000 with APRS ranging from 8.27% – 35.99%.

Perks:

  • You don’t need an extensive credit history to get approved
  • Loan amounts start at just $1,000 if you only need to borrow a small amount
  • There’s no prepayment penalty
  • Terms are available in 3 or 5 years

#6. Payoff

Payoff focuses on borrowers who are in over their heads in credit card debt. You need ‘decent’ credit to qualify, usually around 640, and you must pay the creditors yourself with the proceeds of the loan.

Payoff takes 3 to 6 business days to fund your loan, but they offer loan amounts up to $40,000 to help borrowers get out of credit card debt.

Perks:

  • No prepayment plenty for paying your loan off early
  • Not every borrower pays an origination fee
  • Loan amounts of $5,000 – $40,000 are available to help borrowers with any amount of credit card debt
  • Provides free access to your credit score monthly

#7. Best Egg

Best Egg offers personal loans to borrowers with bad credit for any purpose, whether you need debt consolidation, home improvements, or to pay for medical bills.

Best Egg offers loans from $2,000 – $50,000, but every loan has an origination fee starting at 0.99% – 5.99%.

Perks:

  • No prepayment penalty for paying your loan off early
  • Low APRs starting at just 5.99%, but the increase with bad credit and can go up to 29.99%
  • Loan terms available in 3 to 5 years
  • Allows credit scores as low as 600

#8. SoFi

SoFi is an online lender that offers personal loans to borrowers with bad credit to use for any purpose.

They have higher credit score requirements, requiring at least a 680 to get approved but offer lower APRs starting at just 5.99% and up to 20.69%. Depending on your credit score and income, you can apply for loans up to $100,000.

Perks:

  • Larger loan amounts available than most lenders offer
  • Loan terms available from 2 to 7 years
  • All loans are fee-free
  • Offers an autopay discount (lower APR) and unemployment protection

#9. Upgrade

Upgrade offers personal loans for people with bad credit. They offer loans up to $50,000 that you can use for just about any purpose, including home improvement, debt consolidation, or covering an emergency expense.

They offer low-interest rates starting at 6.94% up to 35.97%. All loans have an origination fee from 2.9% to 8%.

Perks:

  • Loan terms available in 3 or 5 years
  • Offers an autopay discount (lower interest rate)
  • Loan amounts start at just $1,000
  • A 620-credit score is enough to qualify

What Are Bad Credit Personal Loans with Guaranteed Approval $5,000?

No lender can guarantee approval on a loan until you submit your application and qualifying factors. The parameters we discussed above are contingent upon the lender’s approval, and each lender has its own requirements.

Doing what you can to improve your credit score, stabilize your income, and keep your debt ratio down will help you get approved for a personal loan of $5,000 or greater.

Tips for Getting Approved for a Guaranteed Bad Credit Loan

Review Your Credit Report

Your credit score and credit history are the first factors lenders consider. Determine what you need to fix to make your credit more attractive, including paying off collections, disputing your debt, or paying your debt down.

Learn More: How to Read a Credit Report

Dispute Inaccurate Items

If you have any credit report errors, dispute them with the credit bureau reporting the information.

I recommend disputing the issue by mail and not online, so you have proof of receipt (sending it via certified mail with return receipt).

Learn More: How to Dispute an Error on Your Credit Report

Try Credit Repair

If you can’t handle fixing your credit yourself, pay for a credit repair company for a few months to clean your credit up for you.

They can dispute any errors or unfair credit reporting with the creditors and credit bureau on your behalf.

>> Need Help? Check out our roundup of the best credit repair companies.

Pay Down Debt

Get your debts down as low as you can. If you’re using the personal loan to consolidate your high-interest credit card debt, tell the lender what you’re doing with the funds so they can compute your debt-to-income ratio accordingly. Many lenders will even pay your creditors directly for you.

Use a Co-Signer

If you can’t get approved on your own, consider asking a close friend or family member to co-sign on the loan with you.

Just make sure it’s a loan you can afford because the co-signer is liable for the debt just as much as you are if you default.

Monitor Your Credit

Sign up for free credit monitoring with Credit Sesame or Credit Karma and always know when something changes on your credit that needs your attention.

Learn More: Best Credit Monitoring Services

Alternatives to Bad Credit Loans

Home Equity Loans

If you own a home and have more than 20% equity in it, you can refinance your home with a home equity loan or line of credit.

Lenders allow you to borrow up to 80% of the home’s value, including the first mortgage.

Credit Cards

I don’t recommend taking out a cash advance on your credit card as the APRs are incredibly high and the fees unaffordable, but using a credit card to get through a tough situation can be helpful if you have a credit card with an affordable APR.

Just make sure you pay more than the minimum payment each month to avoid excessive interest costs.

Dive Deeper: Can You Get a Credit Card with Bad Credit?

Peer-to-Peer Lending

Peer-to-peer lending is money from private investors who want to help people like you get the money you need.

The P2P platform evaluates your application and risk and gives you a ‘score.’ Investors look at your qualifying factors and decide if they want to invest in your loan and, if so, how much. The APRs are along the lines of a personal loan, but they may be easier to qualify for.

Borrow from a Relative

No one likes to borrow money, but if you need it to get by, ask a family member for a loan. Create a contract in writing, and both of you sign it.

This keeps everyone accountable and can avoid unnecessary arguments.

Borrow from a Friend

Just like borrowing from family, you can borrow from a friend too. Use the same principle, creating an agreement in writing, so there is no question of how much you owe when you owe it and the interest you’ll pay.

Pros and Cons of Bad Credit Personal Loans Guaranteed Approval

Pros:

  • You can get a loan with bad credit (sometimes as low as 580)
  • Most lenders offer an online application process and instant answers
  • Despite the higher APRs, they are more affordable than most other loans, including payday loans
  • You receive loans in one lump sum
  • Most loans have a fixed APR
  • Most personal loans are unsecured (no collateral)

Cons:

  • Bad credit puts you at risk of scam artists and their ‘personal loans’
  • If you have a low credit score, you may not qualify for a large loan amount
  • Not all lenders allow co-signers

How to Apply for a Bad Credit Personal Loan for $5,000 and Up

#1. Research Your Options

If you know your credit score, look at what options you have. There is a big difference between an application with a 524 credit score, 590 credit score, or one with a 660-credit score, for example.

#2. Shop Around

If you use one of the marketplaces mentioned above, you can consider that you’re shopping around. At a minimum, get quotes from 3 lenders. This way, you have quotes to compare to one another and can see what options you have.

#3. Get Required Documents

You’ll need proof of your income, debts, and credit score. If you have a gap in employment or unique situations reporting on your credit report, you may need proof that you fixed the situation.

#4. Sign Contractual Agreement

After you apply and choose the loan, you’ll sign a contractual agreement that binds you to the loan. It will show your payment amount, interest rate, and payment due date.

#5. Monitor Bank Account for Deposited Funds

Most lenders deposit the funds right in your bank account.

Are Bad Credit Loans Safe?

Bad credit loans can be safe when you get them from a reputable lender, like we noted above. Watch out for scams, and never give your personal information to any lender who approaches you.

Only provide the information if you approach the bank, and you know they are legit from your research.

Bottom Line: Bad Credit Personal Loans for $5,000 and Up

Securing a bad credit personal loan for $5,000 and up isn’t as hard as it sounds. You may pay higher interest rates or get lower loan amounts, but many lenders offer friendly options that won’t make you feel like you were taken advantage of.

Keep Reading Bad Credit Resources:

Kim Pinnelli
Kim Pinnelli
Kim is a personal finance expert with a Bachelor’s degree in Finance from the University of Illinois at Chicago. She has been freelance writing for 13 years for a number of large publications. Kim thoroughly enjoys helping people take charge of their personal finances.