Easiest Loans For Bad Credit
- Natasha L
- Nov 26
- 5 min read
FULL SUMMARY
Stephen Smith opens the video by acknowledging that getting approved for personal loans with bad credit is difficult because most lenders rely heavily on FICO scores. He emphasizes that borrowers with low credit or limited credit history DO still have options—especially with online lenders, alternative underwriting systems, secured loans, and co-signer applications.
He then walks viewers through the six best personal loans for bad credit, explaining how they work, their pros/cons, APR ranges, credit score minimums, loan limits, and credit bureau pulls. He also stresses the importance of understanding origination fees, total cost of the loan, and whether payments are reported to bureaus so borrowers can rebuild credit.
Throughout the video, Stephen repeatedly warns viewers not to accept an offer without comparing rates, because APRs for bad credit borrowers can reach as high as 35.99% across almost all lenders—a number that several commenters later reacted to strongly.
🔹 1. Upstart — Best Overall for Bad Credit
Stephen highlights Upstart as a top option because it uses alternative underwriting, reviewing factors like education, employment history, and income—not just credit score.
Key facts from the video:
APR: 6.70% – 35.99%
Loan amounts: $1,000 – $75,000 (highest on the list)
No strict minimum credit score
Often pulls TransUnion
Fast funding
Good for rebuilding credit because payments report to bureaus
Integrated viewer comment:
“Upstart said yes 35% interest. I said NO THANK YOU.”
This reaction aligns perfectly with Stephen’s warning:
If you have poor credit, you will land toward the high end of the APR range. Upstart may approve you—but at a steep cost.
🔹 2. Upgrade — Most Flexible Terms (2–7 Years)
Upgrade offers wider repayment options, helping borrowers match a payment to their budget.
Video highlights:
APR: 7.74% – 35.99%
Terms: 2–7 years (most flexible on the list)
Minimum score ~600
Rate discount for autopay
Pulls TransUnion
Stephen notes this is a good fit for borrowers who want lower monthly payments (longer term) or lower total interest (shorter term).
🔹 3. Universal Credit — Best for Credit Building Tools
Stephen explains that Universal Credit is built on Upgrade’s platform but adds features to help borrowers rebuild their credit.
Key video points:
APR: 11.69% – 35.99%
Loan amounts: $1,000 – $50,000
Minimum credit score: 560
Terms: 3–5 years
Pulls all three bureaus
Offers credit monitoring, score tracking, autopay discounts
This option is popular with borrowers focused on long-term credit improvement rather than just fast cash.
🔹 4. Avant — Fastest Funding for Emergencies
Stephen positions Avant as the quickest option for people who need money now.
Transcript facts:
APR: 9.95% – 35.99%
Loan amounts: $2,000 – $35,000
Minimum credit score: ~550
Terms: 2–5 years
Pulls TransUnion, sometimes Experian
He warns that fast approval often comes with higher fees and less favorable terms, and borrowers must avoid rushing into a bad deal.
🔹 5. Best Egg — Best Option If You Can Use Collateral
Best Egg is usually for good credit borrowers but allows secured personal loans, including vehicle-backed loans, for people with weaker scores.
Video facts:
APR: 6.99% – 35.99%
Loan amounts: $2,000 – $50,000
Minimum credit score: 600
Terms: 3–5 years
Pulls Experian or TransUnion
Stephen notes collateral can help reduce the APR—but comes with serious risk (losing your asset if you default).
🔹 6. Prosper — Best for Joint Applications / Co-Borrowers
Prosper is a peer-to-peer platform with strong co-borrower support.
Video facts:
APR: 8.99% – 35.99%
Loan amounts: $2,000 – $50,000
Minimum credit score: 560
Terms: 2–5 years
Pulls Experian
Stephen emphasizes that using a co-borrower can significantly increase approval odds and lower interest rates—BUT both parties become legally responsible.
⭐ Viewer Comments
The next section analyzes each viewer comment by:
Referencing video content (if applicable)
Explaining factual credit/lending realities
Correcting misconceptions
❓ Comment #1: “Upstart said yes 35% interest I said NO THANK YOU.”
Video alignment: Stephen warned repeatedly that bad credit borrowers will land at the high end of the APR range—up to 35.99%.
Factual answer: This is normal for subprime personal loans. A 35% APR is extremely expensive. For most borrowers, declining the offer is financially wise unless the loan is for an urgent need and all cheaper alternatives are unavailable.
Conclusion:✔ The commenter made the correct decision.
❓ Comment #2: “Are there companies that will approve excellent credit but high DTI?”
Stephen did not address high DTI directly, but his video focuses on lenders considering:
Credit score
Income
Employment
Debt-to-income ratio
Video alignment: He notes some lenders look beyond credit score but still evaluate core financial signals like debt-to-income. loans for bad credit
Factual answer: Even with excellent credit, high DTI causes denials across almost all major lenders because:
High DTI = risk of default
Lenders must meet federal ability-to-repay standards
Possible solutions:
✔ Credit unions (Navy Federal, PenFed)
✔ Lenders that offer DTI flexibility (local banks, fintechs)
✔ Consolidation loan to lower DTI
✔ Adding a co-borrower
User-submitted reply fits here perfectly:
“There is a company (Credit Funding Now) that can secure a loan to help get your DTI down, then get 0% cards after.”
This is consistent with real-world lending strategy.
❓ Comment #3: “I can’t get approved for any loan. I have a charge-off and a collection.”
Video alignment: Stephen explains that lenders look for:
Strong income
Stable employment
Reasonable DTI
Clean(er) credit reports
He also notes low scores with derogatories are different from “thin credit profiles.” loans for bad credit
Factual answer: Charge-offs + collections = major red flags. Most lenders automatically decline because they indicate past non-repayment.
Actual solutions:
✔ Remove derogatory items (as commenters suggested)
✔ Build positive history while repairing
✔ Use secured personal loans or credit-builder loans
✔ File CFPB complaints if accounts are inaccurate
One commenter said:
“Charge-off is illegal I got two of those off.”
This is incorrect. Charge-offs are legal, but many are removed through:
Inaccurate reporting challenges
Procedural violations
Lack of documentation
If you are in this position and need affordable credit repair services ($200.00 flat fee for 1 year) then check this company out.
❓ Comment #4: “Is there any loan company who will actually give a loan to someone with charge-offs?”
Video alignment: Stephen explains:
Avant goes as low as 550
Universal Credit accepts 560
Prosper accepts 560
Upstart has no minimum score
But he also states that derogatory marks drastically hurt approval odds. loans for bad credit
Factual analysis: Loans with charge-offs are possible but usually only when:
Income is strong
Charge-offs are older
Borrower has compensating factors
Lender uses alternative underwriting (like Upstart)
Borrower uses collateral
Best real-world chances:
✔ Upstart
✔ Avant
✔ Universal Credit
✔ Secured loans (Best Egg)
✔ Local credit unions
However, the best first step is still removing derogatory items, as Stephen and commenters both mentioned.
⭐ Key Takeaways
All lenders on the list go up to 35.99% APR — borrowers with bad credit must compare offers carefully.
High DTI will get you denied even with excellent credit — lowering DTI is essential.
Charge-offs and collections cause near-automatic denials — repair first, borrow later.
Upstart is the easiest approval, but likely at the highest APR.
Upgrade and Universal Credit are best for credit-building and autopay discounts.
Avant is best for fast emergency funding.
Best Egg secured loans help lower rates but risk losing your collateral.
Prosper is best with a co-borrower — huge improvement in approval odds.
Prequalifying with multiple lenders (soft pulls) prevents unnecessary score damage.
The smartest approach is repair → prequal → compare → borrow only if favorable.
Related Keywords
Best loans for bad credit
Upstart approval odds
High DTI loan solutions
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Universal Credit loan review
Avant funding speed
Best Egg secured personal loan
Prosper joint loan approval
Bad credit loan APR comparison
How to rebuild credit before applying for a loan
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