When you apply for a loan, most lenders check your income to make sure you earn enough for repayment. But that doesn’t mean low-income workers are ineligible for a loan. If you have a low-income job or live on government benefits, you may still qualify for a personal loan from an online lender.
Learn about some of the best low-income lenders, how to compare your options, and when to consider alternatives.
Personal loans for low income
3.93.9
Credible rating
Fixed (APR)
7.80% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
620
Check Rates
on Credible’s website
View Details
Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Read full review
44
Credible rating
Fixed (APR)
8.98% - 35.99%
Loan Amounts
$1000 to $40000
Min. Credit Score
660
Check Rates
on Credible’s website
View Details
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Loan amount
$1,000 to $40,000
Fees
Origination fee
Discounts
None
Eligibility
Available in all 50 states
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
Within 3 days
Loan uses
Debt consolidation, paying off credit cards
Read full review
44
Credible rating
Fixed (APR)
8.99% - 35.99%
Loan Amounts
$2000 to $50000
Min. Credit Score
600
Check Rates
on Credible’s website
View Details
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full review
3.93.9
Credible rating
Fixed (APR)
9.95% - 35.99%
Loan Amounts
$2000 to $35000
Min. Credit Score
550
Check Rates
on Credible’s website
View Details
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Discounts
None
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
Read full review
3.73.7
Credible rating
Fixed (APR)
14.30% - 35.99%
Loan Amounts
$3500 to $40000
Min. Credit Score
640
Check Rates
on Credible’s website
View Details
Loan amount
$3,500 to $40,000
Fees
Origination Fee, $15 Late Fee, $25 NSF Fee
Discounts
None
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Min. income
$1,000 monthly
Customer service
Phone, email
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
Read full review
3.93.9
Credible rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1500 to $20000
Min. Credit Score
540
Check Rates
on Credible’s website
View Details
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full review
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Some low-income lenders do not have minimum income requirements, while others may require you to earn at least $3,500 to $20,000 annually. Note that low-income loan amounts for some lenders vary by state.
Types of low-income personal loans
A personal loan is a lump sum of money provided by a bank, credit union, or online lender that gets repaid in fixed monthly installments over several months or years. You may be able to borrow $500 to $50,000 with a low-income loan, depending on the lender, but your income will affect the amount. You can use the money for almost any purpose.
Low-income borrowers may be eligible for two types of personal loans.
Secured personal loans
With a secured loan, you agree to put forth collateral, which is something of value that you own. The lender can take the collateral from you if you fail to repay the money you owe. Examples of collateral include the title to your vehicle, the money in a savings account, and the fixtures in your home. If you apply for a secured personal loan, the lender will still check your credit, income, and current debt. But you may have an easier time qualifying for the loan, or may be able to get a lower rate relative to an unsecured loan.
Not every lender offers secured loans. Here are a few low-income personal loan lenders that do:
4.54.5
Credible rating
Fixed (APR)
8.49% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
600
Check Rates
on Credible’s website
View Details
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full review
44
Credible rating
Fixed (APR)
8.99% - 35.99%
Loan Amounts
$2000 to $50000
Min. Credit Score
600
Check Rates
on Credible’s website
View Details
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full review
3.93.9
Credible rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1500 to $20000
Min. Credit Score
540
Check Rates
on Credible’s website
View Details
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full review
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Unsecured personal loans
Most personal loans are unsecured loans. That means you don’t need to provide collateral. The lender uses your financial and credit information exclusively to determine the loan amount and annual percentage rate (APR) — the interest rate plus any upfront fees — you’re eligible for.
But if you fail to repay an unsecured personal loan, the lender still has recourse. The lender can’t take your property, but it can begin debt collection efforts, report negative information to the credit bureaus, or file a lawsuit against you.
How to get a personal loan with low income
1. Check your credit report
The first step to get a personal loan with low income is to check your credit report for any errors and resolve those with the bureaus immediately. Once you know your score, you’re in a better position to find lenders who will consider your application, since you can eliminate those that require a minimum credit score higher than yours. (Note that some lenders may have different credit score requirements if you apply for a loan with them directly, instead of applying through a loan marketplace.)
2. Check minimum income requirements
While some personal loan lenders don’t specify their minimum income requirements, others do. In all cases, the lender will check to see if you have enough income to manage the monthly payments on your loan. Try to find lenders with a minimum income requirement lower than your annual or monthly income. For many lenders, government benefits count as income.
3. Know your DTI
Having sufficient income isn’t always enough, though. Lenders also consider your credit score and history, and your debt-to-income ratio (DTI), which is the percentage of your gross monthly income that you spend on minimum debt payments. If your DTI is near or higher than 35%, you may struggle to get approved.
Learn More: What Is Debt-To-Income Ratio?
4. Prequalify
Most lenders let you prequalify for a personal loan without any impact to your credit score. You can do this directly on the lender’s website, in most cases, or through a personal loan marketplace online. Prequalification is a quick way to see which lenders you might qualify with, the loan amounts you might qualify for, and the APRs you might be eligible for.
Prequalification is not an offer of credit, but it’s akin to the lender’s best guess of what you might qualify for. Once you apply for a personal loan, the lender will conduct a hard credit pull, which could ding your score temporarily, usually by no more than five points.
Important
The APR accounts for the loan’s interest rate as well as any upfront fees, like administration and origination fees, which makes it a better way to compare loan costs than using the interest rate alone.
Learn More:
- Interest Rate vs. APR
- How To Get a Personal Loan
5. Compare lenders
Once you’ve prequalified with multiple lenders, compare APRs, loan amounts, and terms. Check lender fees, and whether it charges an origination fee. Though the origination fee is reflected in the APR, it is taken upfront out of the loan amount, and so can reduce the amount you receive. In other words, if you choose a loan with an origination fee, you could have less money deposited into your account than what you applied for.
Also check lender reputations and complaints. You can do this on sites like Trustpilot and the Better Business Bureau. Note that most lenders will have complaints, but look for patterns in those complaints that indicate the same problems occurring repeatedly.
And don’t overlook the customer service options the lender has available. For example, if you prefer to communicate by phone, check that a phone number is easy to find, and call to make sure you don’t get lost in a never-ending phone tree. If you prefer to communicate by app, make sure the lender has one and that the app’s reviews are generally positive.
6. Apply for the loan
Once you’ve reviewed potential options and found the best personal loan that meets your criteria, apply for the loan. If you need a personal loan with fair credit or bad credit, you may want to consider taking steps to improve your score before you apply, if possible. Be prepared to provide documentation supporting your income like pay stubs, bank statements, or a benefit verification letter if you receive Social Security benefits.
If approved for the loan, review the agreement carefully and note the repayment amount, APR, monthly payment, and when the first payment is due. Once approved, you could receive money the same day, depending on the lender.
Check Out: What to Do if You’re Denied a Personal Loan
How to get a personal loan with low income and bad credit
Getting a personal loan with low income and bad credit can be a challenge. But there are a few ways you can improve your chances of getting approved.
- Explore secured loan options: A loan secured by an asset is easier to qualify for since it’s less risky to the lender. Look into options from low-income lenders, including OneMain and BestEgg.
- Consider credit unions and community banks: If you become a member at a credit union or open an account at a community bank, your relationship with the institution may open up more loan options for you. Credit unions tend to offer lower rates than banks and online lenders.
- Apply with a cosigner: If you have a friend or family member with good credit, they can help you get a loan by applying with you as a cosigner. Their credit profile will provide some reassurance to the lender. However, if you fail to make payments, they’ll be responsible for your debt, so make sure you can afford repayment.
- Improve your credit score: Correct errors on your credit report that may be dragging down your credit score. Your score may also improve as you make on-time payments and pay down debt. Note that these measures can take time. If you’ve been responsible with your rent, utilities, and cellphone bills, you can use a tool like Experian Boost, which may increase your score instantly.
Check Out: Best Personal Loans for Bad Credit and Low Income
Low-income personal loan alternatives
- Payday alternative loans (PALs): Some credit unions offer PAL I loans, which are available to borrowers who have been members for at least a month, or PAL II loans, which are immediately available to new members. The PAL II option allows you to borrow up to $2,000 and repay the loan in up to 12 months. Both types of PAL have a maximum interest rate of 28%. These loans are designed for applicants who struggle to get a conventional loan and may not require a credit check.
- Cash advance apps: Cash advance apps allow you to receive a small advance on your next paycheck without a credit check. You’ll need a bank account and income to qualify. Cash advance companies may charge fees or request optional tips. To keep costs manageable, avoid expedited funding fees and tips as both can translate to sky-high APRs.
- Friends and family loans: Your friends or family may be willing to lend you money interest-free or at a lower rate than a bank. This can provide more flexibility with repayment as well. Just be sure to get the terms of repayment in writing, and stick with them, to preserve the relationship.
FAQ
How can I get a personal loan with bad credit?
If you need a personal loan for bad credit, consider applying for a personal loan with a cosigner, looking into secured options, or borrowing from a credit union.
Where can I get an emergency loan?
If you can wait at least one business day, a personal loan for emergencies may be your best option. Personal loan APRs top out around 36% (if you have bad credit) and repayment periods can extend for years, making monthly payments more manageable. Other emergency options like payday loans typically have triple-digit APRs, and funds are due within weeks; loan amounts top out around $500 or $1,000 as well, depending on the lender. A cash advance app is a better option if you need a small amount and can repay within a couple of weeks.
What is the best cash advance app?
Payactiv offers the most fee-free options for accessing your earned wages. If your employer doesn’t partner with Payactiv, MoneyLion is another option that only charges express funding fees and requests optional tips. Varo may also be a good option with a longer repayment term and straightforward fee structure.
Read More:
- No-Credit-History Loans
- Best Hardship Loans for Bad Credit
- Best Veteran Loans
- Personal Loan vs. Credit Card
- How To Build Credit
- Should I Get a Loan for Rent?
- What Are Personal Loans Used For?
- How Long Does It Take To Get a Personal Loan?
Meet the expert:
Lindsay Frankel
Lindsay Frankel has been covering personal finance for six years, with particular expertise in loans, insurance, and real estate. She’s written hundreds of articles across a range of well-known outlets, including LendingTree, Investopedia, SFGate, and more. Outside of writing, she enjoys playing music and exploring nature with her rescue dog, Lucy.
