Best Unsecured Personal Loans for Bad Credit of 2021

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It happens to the best of us. You might have been totally on top of your budget, and then an unexpected something turns up to throw you off course. Maybe it’s a medical bill, an unforeseen car repair, or a layoff. But regardless of the specifics, you find yourself in need of cash you just don’t have.

If you’re struggling with bad credit the situation is just that much more stressful. Because a poor credit score and history can make it very difficult to get your hands on the unsecured personal loans you need to get through a tough time. And that, in turn, can just drive your credit score even lower if it means you’ll end up defaulting on existing payment commitments.

Unsecured Loans for People with Bad Credit

Fortunately, there are some online lenders who understand that life isn’t always ideal. They’ve created accessible unsecured loans that you aren’t automatically disqualified for just because your credit history has a few blemishes.

Of course, as with any loan, you will be paying interest for the privilege of borrowing the money. And the lower your credit score, the higher your interest rate will be on average. So, it’s important to reserve the use of an unsecured loan for true financial emergencies.

It’s also a good idea to shop around and find the lender that can offer you the best terms for your specific needs and credit standing. So without further ado, here are five of the best places to choose from when you need an unsecured loan even though you have bad credit.

CashUSA

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By matching you with a variety of lenders, CashUSA allows you to get an unsecured loan with bad credit.

Plus, their sprawling network of providers can offer sizable unsecured loans of up to $10,000. This can be a godsend if you’re dealing with unexpected medical bills or other major expenses.

Your loan request can be approved within a matter of minutes and funded in as little as one business day, and all credit types are eligible (though interest rates and terms will vary based on your standing).

  • Loan Amount: $500 – $10,000+
  • APR: 5.99% – 5.99%
  • Term: 3 – 72 months

Read our full review of CashUSA

MoneyMutual

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Although it’s not ideal, it’s a fact: most Americans couldn’t come up with even a few hundred dollars to spare in the face of an emergency.

That’s why MoneyMutual offers fast, short-term loans of up to $2,500, even to borrowers with bad credit.

Their services have been trusted by more than two million customers to date, and once approved, you can receive your funds via direct deposit, sometimes in less than 24 hours after approval. There’s no cost to fill out the online application, and it takes just minutes.

  • Loan Amount: Up to $2,500
  • APR: Variable
  • Term: Variable

Read our full review of MoneyMutual

PersonalLoans.com

PersonalLoans.com
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Whether it’s a quick $500 to cover rent or a serious financial undertaking costing tens of thousands of dollars, PersonalLoans.com can match you with lenders offering the funds you need fast. And there is no minimum credit score.

Better yet, you’ll have up to 72 months (i.e, six years) to repay it in easy monthly installments, making these unsecured loans a great choice for debt consolidation or to pay off a large standing balance at a lower interest rate.

  • Loan Amount: $500 – $35,000
  • APR: 5.99% – 35.99%
  • Term: 3 – 72 months

Read our full review of PersonalLoans.com

Bad Credit Loans

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It’s right there in the name: this personal loan company is all about matching you with the lenders who will fulfill your needs, even if you have bad credit.

Loan amounts range from a quick $500 to a more substantial $10,000. Interest rates start as low as 5.99%. Bad Credit Loans is a great first stop on your unsecured loan shopping trip — especially since it’s totally free (and easy!) to submit an application.

  • Loan Amount: $500 – $10,000
  • APR: 5.99% – 35.99%
  • Term: 3 – 36 months

Read our full review of Bad Credit Loans

CashAdvance

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If you just need a small amount of cash and can pay it off quickly, CashAdvance is a great place to get a personal loan, regardless of your credit score.

Although their lenders tend to max out loan agreements at $1,000 and carry fairly high interest rates, you can get the money delivered directly to your bank account quickly and easily.

  • Loan Amount: $100 – $1,000
  • APR: 200% – 2000%
  • Term: Variable

Read our full review of CashAdvance

How to Improve Your Credit Score to Get Better Loans Later On

These lenders offer a much-needed service to borrowers with imperfect credit scores. However, it’s in your best interest to work to improve your credit score over time. That way, you’ll be able to get better loan terms later on down the line. And that includes when you want to take on major financial commitments like homeownership.

If your credit history is dotted with blemishes, it can feel overwhelming, or even impossible, to get back on track. But that’s not the case! By implementing sustainable changes and habits and being persistent, you can rebuild your credit score and create the financial freedom you deserve.

Budgeting and Paying Off Debt

Start by looking at your budget and seeing if you can make any cuts. This will save you money that you can then funnel directly toward your standing debt totals. Some people start with the highest-interest account first, known as the “avalanche” approach.

This approach will save you more money over time. Others prefer the “snowball” method, which means starting by paying off the account with the lowest total and using that success as motivation to tackle your bigger debt projects.

No matter which way you go about it, you can achieve the debt-free lifestyle of your dreams! And sometimes, a personal loan is exactly what you need to start moving in the right direction.

Jamie Cattanach
Meet the author

Jamie Cattanach is a freelance writer whose work has been featured at Fodor's, Yahoo, SELF, The Motley Fool, Roads & Kingdoms, and other outlets.