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Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their fina...
Written By
Kiah Treece
Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their fina...
Loans Writer
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
If you’re a veteran with bad credit—or a FICO score of less than 580—it can be difficult to find a personal loan, but there are options. Although lenders that cater to veterans often require good credit, other lenders work with borrowers with bad credit.
The best loans in this category offer accessible qualification requirements, reasonable interest rates, flexible repayment terms, minimal fees and a straightforward application process.
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Show Summary
Best Bad Credit Personal Loans for Veterans
Best Overall Bad Credit Loan for Veterans
Upgrade
Minimum Credit Score
600
APR range
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/.
7.99% to 35.99%
Loan amounts
$1,000 to $50,000
Compare Rates
Via Credible.com’s Website
600
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/.
7.99% to 35.99%
$1,000 to $50,000
Editor’s Take
Upgrade offers accessible online credit and banking services, including personal loans of $1,000 to $50,000.
Why We Like It
Upgrade allows borrowers to apply with co-signers and sets a low minimum credit requirement of 600, increasing the chances of approval.
What We Don’t Like
Upgrade’s loans only go up to $50,000. The lender also charges origination fees between 0% and 12% of the loan amount, which can decrease the total borrowed amount.
Who It’s Best For
Upgrade’s personal loans are best for borrowers with poor credit histories who may not qualify for a personal loan without a co-signer.
Consumer Sentiment Index
Pros & Cons
- Flexible eligibility requirements
- Can pay off creditors directly
- High loan amounts available
- High APR range
- Fees for late payments and insufficient funds
- Charges origination fees from 0% and 12%
Details
Eligibility:
- Minimum credit score. 600
- Minimum income. None
- Co-applicants. Permitted
Customer service
We called Upgrade to gauge the responsiveness of its customer service team and found it to be one of the most responsive lenders on our list. While we waited just over one minute for their team to answer our call—which is not the fastest time—they were transparent and knowledgeable about Upgrade’s loans.
We received information on loan amounts, required documentation, interest rate ranges, approval speed, fees and various perks, like hardship programs and autopay discounts. The representative also confirmed that they report payments to credit bureaus.
Disclosure
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/.
Best for Fast Funding & Below-Average Credit
LendingPoint
Minimum Credit Score
600
APR range
7.99% to 35.99%
with autopay
Loan amounts
$1,000 to $36,500
Compare Rates
Via MoneyLion’s Website
600
7.99% to 35.99%
with autopay
$1,000 to $36,500
Editor’s Take
LendingPoint is an online lender that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it doesn’t offer loans in Nevada and West Virginia.
Why We Like It
LendingPoint offers longer loan terms than many other lenders—24 to 72 months—or two to six years—providing borrowers with more flexibility in their repayment plans.
What We Don’t Like
High maximum APRs and origination fees up to 10% may make LendingPoint more costly for less-qualified borrowers.
Who It’s Best For
LendingPoint is best for borrowers who want a longer repayment period.
Consumer Sentiment Index
Pros & Cons
- Quick funding
- Low credit score requirements
- No prepayment penalty
- Origination fee up to 10%
- Co-signers or joint loans not permitted
- Not available in Nevada and West Virginia
Details
Eligibility:
- Minimum credit score. 600
- Minimum annual income. $35,000
- Co-signers. Not permitted
Customer service
After testing and evaluating LendingPoint’s customer service, we found it to be one of the most helpful and transparent lenders on our list after waiting only 46 seconds to be connected to a representative. The customer service representative we spoke with shared an in-depth perspective of their loan offers, including information about loan amounts, eligibility requirements, how interest rates are determined and prequalification.
LendingPoint’s team also disclosed late fees but didn’t confirm origination fees. While customer service didn’t share this information wasn’t, the lender discloses a fee of up to 10% on its website. LendingPoint was also one of few lenders that shared how they report payments to credit bureaus, which it typically does at the start of the month.
Best for Comparing Multiple Offers
Universal Credit
Minimum Credit Score
560
APR range
11.69% to 35.99%
Loan amounts
$1,000 to $50,000
Compare Rates
Via Credible.com’s Website
560
11.69% to 35.99%
$1,000 to $50,000
Editor’s Take
Universal Credit is an online lending platform that offers personal loans between $1,000 to $50,000 through its partners. Repayment terms range from three to seven years.
While Universal Credit makes finding a personal loan accessible even to those with damaged credit, it comes with a few tradeoffs. First, it charges high APRs, well above the most competitive rates seen on our list. Second, Universal Credit charges a 5.25% to 9.99% origination fee on all personal loans. Because this is deducted from your loan proceeds, you’ll need to factor this in when determining your loan amount to ensure you receive the necessary amount after the fact.
Pros & Cons
- Flexible qualification requirements
- Next-day funding
- No prepayment penalty
- APRs are higher than those offered by top competitors
- Origination fees from 5.25% to 9.99%
Details
Eligibility:
- Minimum credit score. 560
- Minimum income. Does not disclose
- Co-signers. Not permitted
- Co-borrowers. Not permitted
Best For Quick Approvals
Upstart
Minimum Credit Score
620
APR range
6.70% to 35.99%
Loan amounts
$1,000 to $50,000
Compare Rates
Via Credible.com’s Website
620
6.70% to 35.99%
$1,000 to $50,000
Editor’s Take
Upstart uses artificial intelligence (AI) to evaluate applications, allowing the lender to consider factors such as employment and education when determining eligibility.
Why We Like It
Upstart’s minimal credit score requirements allow more borrowers to qualify for loans. The Consumer Financial Protection Bureau estimated Upstart has approved 27% more borrowers than possible under a traditional lending model.
What We Don’t Like
Upstart’s three- or five-years loan terms are more limited than other lenders. However, this is likely an acceptable tradeoff for applicants who might not be approved in a traditional lending environment.
Who It’s Best For
Upstart is best for individuals with limited credit history who want a more inclusive approach to the lending process.
Consumer Sentiment Index
Pros & Cons
- Accessible to borrowers with no credit history
- Prequalification with a soft credit check
- Ability to choose a custom payment date
- Charges an origination fee up to 12% of the loan amount
- No co-signer option
- Only offers three- or five-years terms
Details
Eligibility:
- Minimum credit score. 620
- Minimum income. No minimum but must have a source of income
- Co-signers. Not permitted
- Co-borrowers. Not permitted
Customer service
We tested Upstart’s customer service quality to evaluate its helpfulness. Through our research, we found Upstart’s team was one of the fastest to answer, as we waited only 39 seconds. However, once connected, the representative was vague. While they disclosed general loan details like loan amounts, fees and interest rate ranges, they were unclear about documentation requirements and approval times.
Best for Range of Repayment Options
Avant
Minimum Credit Score
580
APR range
If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
9.95% to 35.99%
Loan amounts
Example: A $5,900 loan with an administration fee of 4.75% and an amount financed of $5,619.75, repayable in 36 monthly installments, with an APR of 29.95% would have monthly payments of $250.30. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
$2,000 to $35,000
Compare Rates
Via Credible.com’s Website
580
If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
9.95% to 35.99%
Example: A $5,900 loan with an administration fee of 4.75% and an amount financed of $5,619.75, repayable in 36 monthly installments, with an APR of 29.95% would have monthly payments of $250.30. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
$2,000 to $35,000
Editor’s Take
Avant is a lender that offers secured and unsecured personal loans through a third-party bank. The lender offers loans in Washington, D.C. and every state but Hawaii, Iowa, Maine, New York, Vermont and West Virginia.
Why We Like It
Avant may deposit loan funds as soon as the next business day after approval, making it a great option for borrowers who need money fast.
What We Don’t Like
Avant’s APRs range from 9.95% to 35.99%. It also charges an administrative fee of up to 4.75% of the loan amount, which further increases the cost of borrowing.
Who It’s Best For
Avant is best for individuals with damaged or limited credit who need quick funding.
Consumer Sentiment Index
Pros & Cons
- Secured and unsecured loan options available
- Low credit score requirement of 580
- Loan terms available up to 60 months
- Charges an upfront administrative fee
- High minimum APR
- Co-signers and co-applicants not allowed
Details
Eligibility:
- Minimum credit score. 580
- Minimum income. Does not disclose
- Co-borrowers. Not permitted
- Co-signers. Not permitted
Best for Online Experience
LendingClub
Minimum Credit Score
660
APR range
8.99% to 35.99%
Loan amounts
$1,000 to $40,000
Compare Rates
Via Credible.com’s Website
660
8.99% to 35.99%
$1,000 to $40,000
Editor’s Take
LendingClub offers various financial products, including personal loans and banking services. The lender operates in every state except Iowa and the U.S. territories.
Why We Like It
LendingClub makes debt consolidation loans with direct creditor payoff accessible to borrowers with bad credit.
What We Don’t Like
Borrowers pay an origination fee between 3% to 8% of the total loan amount, which is deducted from the loan proceeds at funding. LendingClub’s APRs are also higher than those available from some competitors, and there’s no autopay discount.
Who It’s Best For
LendingClub’s personal loans are best for those with bad credit histories looking to consolidate debt into one monthly payment.
Consumer Sentiment Index
Pros & Cons
- Directly pay off creditors with debt consolidation loans
- Offers loans as small as $1,000 to $40,000
- No minimum credit or income requirements
- Charges origination fees
- Terms available for two to five years
Details
Eligibility:
- Minimum credit score. None
- Minimum annual income. None
- Co-borrowers. Permitted
Customer service
We tested LendingClub’s customer service to assess how helpful it is for prospective borrowers and found the representative could provide only surface-level answers. For example, after waiting just over one minute to connect with a rep, they confirmed you can set up autopay but did not confirm if any autopay discounts are available. In another case, they mentioned LendingClub charges an origination fee but didn’t disclose anything further like the amount.
However, this does not mean they were not responsive or able to provide helpful information. We connected with a rep in just over one minute. Through our evaluation, we gathered key information, including loan amounts, required documentation such as W-2s and bank statements, loan assistance options and funding turnaround times.
Summary: Best Bad Credit Personal Loans for Veterans
What Are Bad Credit Loans for Veterans?
Bad credit loans for veterans are loans that have low or no credit requirements. These loans are most often offered by lenders that work with any borrower with bad credit, since lenders that specifically work with veterans often require borrowers to have good credit.
Lenders that offer bad credit loans often consider factors beyond a credit score, such as the borrower’s income or potential for future earnings. More flexible qualification requirements make them accessible to those who may have poor credit histories.
Bad credit loans can be an excellent option for veterans with less-than-stellar credit scores who want to consolidate debt, make necessary home repairs or cover unexpected expenses.
Tips for Comparing Personal Loans With Bad Credit
When comparing bad credit personal loans, it’s crucial to consider all available options. The best loan isn’t always the one with the lowest interest rate, and fees can greatly increase the cost of borrowing. These tips can help you find the best option for your financial situation:
- Pre-qualify. Before applying for any loan, it’s essential to know what offers are available and what terms you may qualify for. By pre-qualifying with multiple lenders, you can compare interest rates, fees and other factors that may impact your decision. This process is usually based on a soft credit check and won’t impact your credit score.
- Interest rates. High-interest loans can become costly in the long run, but it’s difficult to qualify for competitive rates with a low credit score. Personal loans typically come with rates between 5% and 36%, with the lowest rates reserved for the most creditworthy applicants.
- Hidden fees. Some lenders impose late payment fees, early payoff fees, origination fees and hidden costs that could significantly increase the cost of borrowing. It’s best to understand any fees before accepting a loan.
- Repayment flexibility. Some lenders offer flexible repayment options to help you manage your monthly payments. These options may include extra repayment features such as payment holidays or the ability to pay extra when your finances allow for it.
- Loan use. Lenders may have restrictions on how borrowers can use their loan funds. Ensure the loan you’re considering aligns with your needs, whether for debt consolidation, home repairs, emergency expenses or something else.
- Financial need. Be realistic about how much you need to borrow. In general, personal loans for bad credit range from $1,000 to $50,000. Borrowing more than necessary could lead to unnecessary debt.
- Impact on your credit score. Most lenders require a hard inquiry as part of the loan approval process. This will remain on your credit report for up to two years but only impact your score for up to one year.
- Improve your credit score. While bad credit loans for veterans can provide much-needed financial assistance, improving your credit score in the long run is essential. Increase your score by making on-time payments, keeping credit utilization low and monitoring your credit report regularly for errors.
How Do Personal Loans for Veterans Work?
Personal loans for veterans can be either secured or unsecured and have various repayment terms, interest rates and fees. Secured loans require collateral, while unsecured options don’t.
To apply, you’ll typically complete an online form with basic information about your financial situation, such as income, employment status, credit score and any collateral you may have to offer. The lender will then assess your application and provide an offer outlining the loan terms.
If you accept the offer, you’ll be required to complete any final steps for verification and approval before receiving the funds. Funds may be available as soon as the same or next day after final verification, but some lenders take longer.
Where Can I Get Loans for Veterans With Bad Credit?
Several types of financial institutions offer loans for veterans with bad credit. These lenders understand veterans’ unique financial challenges and offer tailored loan solutions to fit their needs. Here are a few options:
- Traditional banks. Some traditional banks offer personal loans for veterans with bad credit. These are best suited for veterans with an existing relationship with the bank and can negotiate better terms due to that relationship.
- Credit unions. Credit unions are not-for-profit organizations that often offer more competitive rates than traditional banks. Some credit unions offer membership exclusively to members of the military and military families.
- Online lenders. Online lenders often have less strict eligibility criteria and faster approval times than traditional banks. These lenders are best suited for veterans who need quick access to funds and are comfortable managing their loans online.
- Nonprofit organizations. Several nonprofit organizations offer personal loans or loan assistance to veterans. These might be a good option for veterans needing smaller loans and could benefit from the financial counseling these organizations typically offer.
How To Get a Personal Loan With Bad Credit as a Veteran
Obtaining a loan with bad credit can seem challenging, but there are steps you can take to secure the funding you need, even with less-than-perfect credit.
- Check your credit score. Before you apply for a loan, find your credit score and review your credit report. Free online tools allow you to check your credit score, and everyone is entitled to get a free credit report from each of the three main credit bureaus once per year.
- Explore available loan options. Research lenders that offer loans to veterans and other borrowers with bad credit. These may include traditional banks, credit unions, online lenders and nonprofit organizations. If you already have a relationship with a bank or lender, contact a loan officer to learn about your options. Compare interest rates, terms and eligibility requirements to find the loan that best suits your needs.
- Prepare your application. The loan application process varies by financial institution, but most require consumers to submit similar documentation. This may include proof of income, bank statements and a list of debts and monthly expenses. Having these documents ready can speed up the application process.
- Submit your application. Depending on the lender’s process, you can apply online, in person or over the phone. Keep an eye out for communications from the lender and follow up with additional information and documents as quickly as possible to keep the application process on track.
- Wait for approval. Approval times can vary. Some online lenders may give you an answer in minutes, while traditional banks can take a few days or even weeks. If the lender denies your application, ask for a reason. This information can help if you reapply.
- Finalize the loan. Once your loan is approved, review the terms and conditions carefully before finalizing the agreement. Ensure you understand the interest rate, repayment schedule and potential penalties for late or missed payments. Once you sign the agreement, you may receive funds within the same or next business day.
Alternatives to Bad Credit Loans for Veterans
If you’re a veteran with bad credit, it can be challenging to secure a loan. But don’t lose hope—there are alternatives that can help you navigate financial hardships, improve your credit score and secure a better financial future.
Secured Personal Loans
Secured personal loans require you to pledge an asset, like your home or car, as collateral. This reduces the risk for the lender, allowing you to secure a loan with a lower interest rate, even with bad credit. However, make sure to repay the loan on time, as defaulting could lead to losing your collateral.
Payday Alternative Loans (PALs)
Offered by federal credit unions, PALs are small, short-term loans designed for individuals who don’t qualify for traditional loans. Payday alternative loans have lower fees and interest rates than payday loans without a credit check, making them a good alternative for veterans with bad credit.
Co-signer Loans
If you have a friend or family member with a good credit score willing to co-sign your loan, this can be an effective way to qualify for a loan with low interest rates. However, remember that the co-signer shares responsibility for repayment, meaning if you fail to repay, they’ll be responsible to repay the loan.
Home Equity Loans or Lines of Credit
If you own a home and have some equity in it, you could consider a home equity loan or line of credit. This allows you to borrow money against the value of your home, often at a lower interest rate. Keep in mind, your home is the collateral with these financing options, so be sure you can repay the loan or you risk losing your home to foreclosure.
Grants and Financial Assistance Programs
Apart from loans, various grants and financial assistance programs are available for veterans with bad credit. These programs may support housing, education, healthcare or other essential needs. Some organizations that provide these resources include:
- USA Cares
- Operation Homefront
- Veterans of Foreign Wars (VFW) Unmet Needs Program
- The American Legion Temporary Financial Assistance Program
- The National Association of American Veterans (NAAV)
Job Training and Career Counseling
Another alternative to borrowing is job training and career counseling programs. These resources can help you improve your skills, qualifications and marketability in the workforce. They may also offer assistance with job placement or entrepreneurship opportunities.
- Helmets to Hardhats
- The Home Depot Foundation
- Veterans Business Outreach Center (VBOC) Program
- Veterans’ Employment and Training Service (VETS)
Methodology
We reviewed 18 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose lenders that have a minimum credit score requirement of 600 or lower and ranked them based on the weighting assigned to each category:
- Eligibility and accessibility. 30%
- Loan cost. 25%
- Loan details. 20%
- Customer experience. 15%
- Application process. 10%
Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Find the Best Personal Loans of 2025
Next Up In Personal Loans
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Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
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