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Personal Loans
Best Bad Credit Loans For Veterans

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Best Bad Credit Loans For Veterans Of 2024

Kiah TreeceLoans Writer

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 finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.

Kiah Treece

Kiah TreeceLoans Writer

Loans Writer

Colin BeresfordDeputy Editor, Personal and Business Loans

Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it's buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, among many others covering various financial topics.

Reviewed

Colin Beresford

Colin BeresfordDeputy Editor, Personal and Business Loans

Deputy Editor, Personal and Business Loans

Reviewed

Updated: Apr 1, 2024, 3:53pm

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

580

APR range

8.49% to 35.99%

Loan amounts

$1,000 to $50,000

Via Credible.com’s Website

580

8.49% to 35.99%

$1,000 to $50,000

Editor’s Take

Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services. Although maximum APRs are on the high end compared to other online lenders, Upgrade makes loans available to those with poor credit history.

Loans amounts, which range from $1,000 to $50,000. Upgrade has two- to seven-year terms available. Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.

Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.

Pros & Cons

Low minimum credit score requirement
Borrowers can use loans to cover business expenses
Offers direct lender payoff for debt consolidation loans

High APR range
Charges fees for origination, late payment and insufficient funds

Details

Eligibility:

Minimum credit score: 580
No minimum income requirement
Allows co-applicants

Loan uses:

Debt consolidation
Home projects
Large expenses
Business expenses

Best for Fast Funding & Below-Average Credit

LendingPoint

Minimum Credit Score

600

APR range

7.99% to 35.99%

with autopay

Loan amounts

$2,000 to $36,500

Via Fiona.com’s Website

600

7.99% to 35.99%

with autopay

$2,000 to $36,500

Editor’s Take

LendingPoint is an online lender based in Atlanta that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it does not offer loans in Nevada and West Virginia. Prospective borrowers in eligible states can apply online and benefit from quick funding.

LendingPoint personal loans range from $2,000 to $36,500; Georgia loans have a minimum loan amount of $3,500. Repayment terms range from 24 to 72 months—or two to six years.

There are two main disadvantages to LendingPoint: high maximum APRs and origination fees. While you can typically avoid high APRs by maintaining a high credit score, LendingPoint origination fees (up to 10%) depend on the state you live in.

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
Must live in a state other than Nevada or West Virginia
Doesn’t allow co-signers or co-applicants

Loan uses:

Debt consolidation
Home project
Medical expenses

Best for Comparing Multiple Offers

Universal Credit

Minimum Credit Score

580

APR range

11.69% to 35.99%

Loan amounts

$1,000 to $50,000

Via Credible.com’s Website

580

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

High APRs
All personal loans charge a 5.25% to 9.99% origination fee

Details

Eligibility:

Minimum credit score: 580
Minimum income requirement: Does not disclose
Doesn’t allow co-signers or co-borrowers

Loan uses:

Debt consolidation
Large expense
Home project

Best For Quick Approvals

Upstart

Minimum Credit Score

300

APR range

7.80% to 35.99%

Loan amounts

$1,000 to $50,000

Via Credible.com’s Website

300

7.80% to 35.99%

$1,000 to $50,000

Editor’s Take

Upstart has made a mark on the personal loan space because of its artificial intelligence- and machine learning-based approach to borrower qualification. In fact, Upstart estimates that it has been able to approve 27% more borrowers than possible under a traditional lending model. With competitive APRs, Upstart is not a top lender for borrowers who can qualify for more competitive rates. Even so, the platform’s minimum 300 credit score makes it an accessible option to those with fair credit.

Upstart also offers a pretty flexible range of loan options, with amounts ranging from $1,000 to $50,000 so you don’t have to borrow (or pay interest on) more than you really need. And, while Upstart’s loan cap is lower than some lenders—this is likely to be enough for many prospective borrowers.

Even though Upstarts three-, five-, seven-year loan terms are more restrictive than other lenders, it’s likely to be an acceptable tradeoff for applicants who might not be approved in a more traditional lending environment. Plus, it’s available in every state except West Virginia and Iowa, so it’s as widely available as many other top lenders.

Pros & Cons

Accessible to borrowers with fair credit
Offers prequalification with a soft credit check
Ability to choose a custom payment date

Charges an origination fee up to 8% of the loan amount
No secured or co-signer option
Loans only available for three-, five-, seven-year terms

Details

Eligibility:

Minimum credit score: 300
Minimum income requirement: $12,000
Doesn’t allow co-signers or co-borrowers

Loan uses:

Debt consolidation
Medical expenses
Educational expenses

Best for Range of Repayment Options

Avant

Minimum Credit Score

580

APR range

9.95% to 35.99%

Loan amounts

$2,000 to $35,000

Via Credible.com’s Website

580

9.95% to 35.99%

$2,000 to $35,000

Editor’s Take

Founded in 2012 and based in Chicago, Avant is a consumer lending platform that offers secured and unsecured personal loans through a third-party bank (WebBank). Unsecured loans are available in Washington, D.C. and every state but Hawaii, Iowa, New York, Vermont, West Virginia and Maine. The platform specializes in middle-income borrowers with fair to good credit and only requires a minimum score of 580 to qualify.

Maximum loan amounts are low compared to other lenders, but the low minimum amount and flexible repayment terms (two to five years) make it an accessible option for borrowers. However, as with many loans for subprime borrowers, Avant personal loans come with a price. In addition to charging an administrative fee of up to 4.75% of the loan amount, Avant’s APR range (9.95% to 35.99%) is on the high end for applicants with a good to excellent credit score—and there is no autopay discount. Still, the platform earns top marks for borrowers with less than stellar credit who need quick access to funds.

Pros & Cons

Secured and unsecured loan options available
Low credit score requirement (580)
Loan terms available up to 60 months

Charges an upfront administrative fee
High starting APR for prime borrowers
Co-signers and co-applicants not allowed

Details

Eligibility:

Minimum credit score: 580
Minimum income: $20,000
Doesn’t allow co-signers or co-borrowers

Loan uses:

Debt consolidation
Large expenses
Home projects

Best for Online Experience

LendingClub

Minimum Credit Score

600

APR range

8.98% to 35.99%

Loan amounts

$1,000 to $40,000

Via Credible.com’s Website

600

8.98% to 35.99%

$1,000 to $40,000

Editor’s Take

LendingClub is a peer-to-peer—or marketplace—lender founded in 2007. As the largest online lending platform for personal loans, LendingClub has worked with over 3 million customers and funded more than $55 billion in loans. It’s also one of the most geographically widespread options, with lending capabilities in every state except Iowa and the U.S. territories.

While LendingClub imposes high APRs and no autopay discount, applicants can choose to borrow between $1,000 to $40,000. This is a higher maximum loan cap than some other lenders. That said, LendingClub’s loan terms are limited to two to five years, which is less flexible than other lenders on our list. Borrowers also are charged an origination fee between 3% to 8% of the total loan amount, which is taken from the loan proceeds at funding.

LendingClub also makes debt consolidation easier by offering a balance transfer loan. With this type of loan, LendingClub offers direct payment to third-party lenders, including over 1,700 creditors. Not only does the platform take care of payments for you, you can choose exactly how much of your new loan amount you want LendingClub to pay toward each creditor.

Pros & Cons

Will directly pay off third-party creditors as part of balance transfer loan
Co-applicants permitted
Available to borrowers with fair to excellent credit

Origination and late fees
Limited loan term availability
High APR range

Details

Overview: LendingClub is a peer-to-peer—or marketplace—lender founded in 2007. As the largest online lending platform for personal loans, LendingClub has worked with over 3 million customers and funded more than $55 billion in loans. It’s also one of the most geographically widespread options, with lending capabilities in every state except Iowa and the U.S. territories.

Eligibility:

Minimum credit score: 600
Minimum credit history: Three years
Allows co-applicants

Loan uses:

Debt consolidation
Home projects
Medical expenses

Summary: Best Bad Credit Personal Loans for Veterans

Company	Forbes Advisor Rating	Minimum credit score	APR range	Loan amounts	Learn More CTA text	Learn more CTA below text
Upgrade	4.0	580	8.49% to 35.99%	$1,000 to $50,000	Compare Rates	Via Credible.com’s Website
LendingPoint	4.0	600	7.99% to 35.99%	$2,000 to $36,500	Learn More	Read Our Full Review
Universal Credit	3.5	580	11.69% to 35.99%	$1,000 to $50,000	Compare Rates	Via Credible.com’s Website
Upstart	3.5	300	7.80% to 35.99%	$1,000 to $50,000	Compare Rates	Via Credible.com’s Website
Avant	3.5	580	9.95% to 35.99%	$2,000 to $35,000	Compare Rates	Via Credible.com's Website
LendingClub	3.5	600	8.98% to 35.99%	$1,000 to $40,000	Compare Rates	Via Credible.com’s Website

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:

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.

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.

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Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

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.

Kiah Treece

Loans Writer

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