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Second Chance Loans: Best Loan Companies for Problem Credit


Second chance loans offer people with problem credit an opportunity get back on track while getting the money they need fast.

Whether it’s extra cash to consolidate debt, pay for repairs or handle an emergency, second chance loans can help out in a pinch.

Borrowers with good credit scores may have their pick of lenders but when borrowers have problem credit, the options are limited. There are several factors to consider with second chance loans including high interest rates along with loan origination fee and repayment terms.

If you’re in the market for a personal loan, make sure you only borrow what you need and have the ability to repay any money you borrow.

Best Second Chance Loan Companies


Stilt offers online loans from $1,000 to $35,000. Stilt can offer online loans for bad credit because they look at your holistic that shows your financial reponsibility like current employment, education and financial behavior and not only on your credit history.

Stilt is on our list because focuses on affordable and quality loans for immigrants, visa holders, and U.S. citizens. Stilt will report your payments to the credit bureaus every month that can help you build your credit scores.

Stilt details:

  • No SSN or credit history required.
  • Checking for rate won’t impact credit score.
  • No cosigner required.
  • The minimum eligibility criteria is – you have to be physically present in the U.S. with a U.S. bank account in your name and a U.S. address.
  • No prepayment fees.
  • No Hidden Fees.
  • Minimum APR is 7.99% and the maximum APR depends on your state. Your exact rate will depend on your creditworthiness and can only be known after you apply for a loan.

Stilt looks at your education, work experience, income, and financial behavior to give you lower rates.


OppLoans offer second chance loans that range from $1,000 to $5,000. All loans have a fixed interest rate with a fixed monthly payment. Borrowers are not required to have a particular credit score. All credit scores are considered.

One of the biggest benefits of OppLoans is one of few loans online for bad credit that can be approved in minutes with loan funds deposited in your account by the next business day.

For instance, if your loan is approved before 9pm* CT from Monday through Thursday, you can expect your funds the next business day. If your loan is approved before 9pm* CT on Friday, you can expect your funds on Monday. If your loan is approved after 9pm * CT on Friday, on Saturday or on Sunday, you can expect your funds on Tuesday.

OppLoans details:

  • Be over 18 years old.
  • You must be over 19 in Nebraska and Alabama.
  • Have a checking account.
  • Be employed.
  • Get paid with direct deposit.
  • Loan reports to all three credit bureaus to help improve your credit score!

No origination and early repayment fees. Save even more money on interest with no additional fees by paying off your loan early. An easy online application can be completed in minutes!


installment-loans-for-bad-creditLendingpoint has a simple application for consumers to apply for a loan online for up to $36,500. All loans have a fixed interest rate with a fixed monthly payment. Borrowers are not required to have a particular credit score.

You can use your online loan for debt consolidation loan, a wedding loan, an unexpected medical expense loan, a fix-my-car loan, an I-need-a-vacation loan, a kitchen remodel loan, or for whatever legal purpose you want.

Lendingpoint details:

  • There is no impact to credit score to find out how much you can qualify for.
  • Fast decisions.
  • Money next business day upon approval.
  • Loan interest rates typically range between 5% and 36%.
  • Loan origination fees of up to 6% that are deducted from the loan amount, so consider them when deciding how much you need to borrow.
  • You will need an annual income of at least $20,000 to apply for LendingPoint Personal Loans.


Upgrade offers online loans from $1,000 to $50,000. As of this writing, interest rates range from 6.99% up to 35.97% APR. Second chance loans are available with terms from 36 months to 60 months. All loans have a fixed interest rate with a fixed monthly payment. Borrowers should have at least a 620 credit score, but all credit scores are considered.

Upgrade is on our list because of its no prepayment fee plus a few special features:

  • Simple one-page application.
  • Get a decision in seconds – with no negative impact to your credit score.
  • Fast funding, you can get money to your bank account within a day of clearing necessary verifications.

Upgrade charges a loan origination fee of 1% to 6% of the loan amount which is deducted directly from your loan funds. Get a personal loan for any reason. The turnaround time is fast. Funds are deposited directly to your checking account as soon as the next business day. That means if you are applying during a week day, you could have funds in your account, after approval, within 24 hours.

With an Upgrade loan, you’ll also get access to your free credit score and tools to help you understand credit health and ways you can improve it so you can unlock your full credit potential.

Use second chance loans to get back on track

Personal loan options will have higher interest rates given your credit score but take the opportunity to use a second chance loan to improve your credit scores. Just like second chance bank accounts, a second chance loan lets you prove how well you can manage finances.

Here are four ways you can use a personal loan to help rebuild your credit history:

  1. Monthly on-time payments. Make payments on time every month. You need to consistently pay on time. Set up automatic debits to ensure that you’re making those payments on time every month, and that behavior will count favorably toward your credit score.
  2. Consolidate debts. You can use a personal loan to consolidate credit card debt. If you use a personal loan to pay off credit card balances, that can help your credit utilization rate. Credit utilization rate is essentially amount owed. Credit utilization ratio on revolving accounts (credit cards) is essentially the percentage of your available credit you’re using. Using a high percentage of your available credit means you’re close to maxing out your credit cards, which can have a negative impact on your FICO Scores.
  3. Lower your interest rate. Depending on your credit scores, personal loan rates are generally lower than those associated with credit cards, so shifting debt from cards to a personal loan can lower your interest rate. This can make it easier for you to pay off your debt and improve your credit score as a result.
  4. Diversify your credit mix. The types of credit you have is one of the five factors that goes into determining credit score. Ideally, you’ll have experience with both revolving credit (credit cards) and installment loans (personal loans). If you don’t already have installment debt such as a mortgage or a car loan, using a personal loan to manage some of your debt would diversify your credit mix.

Best way to manage a second chance loan

The best loan deal, whether you have good credit or problem credit, is a loan with no prepayment penalty. Because second chance loans may have higher interest rates, plan to pay off the loan early if you can afford to do so. Paying off a loan early will save you money over the life of the loan.

Building and improving credit is an ongoing process so while a higher rate interest loan is not the optimum strategy to rebuild credit, it might be your only choice.


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