Bad credit refers to an individual’s credit score between 300 to 579. Getting a loan with bad credit, though not impossible, can be expensive. Lenders who consider it risky may charge higher rates of interest. They may ask for collateral, offer shorter repayment terms, or request a co-signer to compensate for the risk. Before choosing a lender, a person with bad credit should scrutinize a lender’s credentials, financial standing, reputation, and company’s ratings.

Top five lenders for bad credit
Many lenders like banks, credit unions, and online lenders lend money to meet emergency expenses like medical bills or home repairs to individuals with average or poor credit. Unsecured loans without any collateral are more popular for poor credit. The eligibility conditions, interest rates, penalties, late fees, and requirements may vary from one lender to another. Another distinguishing factor is the lender’s speed in processing your application and disbursing your funds. Based on the above criteria, the top five lenders for bad credit in no particular order are:

Upgrade
If your credit score is around 550 and you are looking for a loan of $1,000 to $50,000 within one day, Upgrade could help you. They charge an APR of 5.94% to 35.97%, including an origination fee of up to 8%. The APR depends on the loan amount, credit score, your ability to set up auto-pay or direct payment on existing debts. Upgrade allows repayment from two to seven years. It also charges lower rates for those who have a co-applicant and those who qualify for a secured loan. Upgrade is available for all residents except West Virginia and the District of Columbia.

Avant
If you are looking for smaller loans between $2,000 and $35,000 with a wide range of repayment options from two to five years, you can consider Avant. They disburse the amount within one day. Their APR ranges from 9.95% to 35.99%, including an origination fee of 4.75%. They do not do hard credit checks unless you decide on taking the loan, so there is no negative impact on your credit score. It is available in 42 states, and Avant also helps refinance your loan in the future.

OneMain Financial
OneMain Financial does not specify a minimum credit score requirement and offers secured and unsecured loans. They may expect an annual income of at least $7,200 per annum to qualify for a loan. They offer loans from $1,500 to $20,000 with rates between 18% and 35.99%, including an origination fee of 1% to 10% with repayment terms ranging from two to five years. They disburse the loan within a day if it is online and immediately if you apply for it by visiting their physical offices.

Upstart
If your credit score is really poor, you can consider Upstart for credit, as they specify a minimum credit score of 300. They check your credit only to see if you qualify, but you can get loan approval if you meet their other eligibility criteria. They consider your recent credit history and debt-to-income ratio and check if you have had any bankruptcy in the last 12 months. They may also expect an annual income of $12,000 per annum to qualify for a loan. They offer $1,000 to $50,000 with an APR of 3.22% and 35.99%, including an origination fee of 8%. Their repayment term options range from three to five years. It offers next-day funding and direct payment to creditors if your purpose of borrowing is to settle a loan.

LendingPoint
LendingPoint’s approval criteria include an annual income of $20,000 and have a minimum credit score of 580. Their APR ranges from 9.99 % to 35.99%, including an origination fee of 6%. They offer loans from $2,000 to $36,500 with repayment options from two to five years. You can get same-day approval and get your funds the next day. LendingPoint is available in all the states except Nevada and West Virginia.