The best personal loans if you have bad credit but still need access to cash

Getting a personal loan when you have bad credit or no credit history can be tough. Like most financial products, borrowers have to submit an application listing their income information and agree to a credit check before getting approved for a loan. Lenders prefer to work with customers who have a proven track record of paying their bills on time and earning enough money to stay on top of their debt while honoring all terms and agreements.

A good credit score starts at 670 on the FICO scale (661 for VantageScore). Anything over 740 is considered very good, and above a 800 FICO® score (or 781 VantageScore) is considered excellent.

If your credit score is less than 670, you may feel like your score is a roadblock to getting access to good financial products. However, there are a few lenders that work with such candidates, helping them to borrow money for emergency expenses including medical bills and auto repairs, refinancing high-interest debt or even consolidating debt payments.

But proceed with caution: Lenders may charge higher interest rates or tack on origination fees, early payoff penalties and late fees to borrowers they consider to be "riskier." Therefore, if you have less-than-perfect credit, it's important to do your homework before signing on the dotted line to make sure you're comfortable with the terms of the loan.

CNBC Select rounded up the top personal loans for bad credit, looking at fees, interest rates and flexible repayment options for different credit scores. We tried to prioritize loans with no origination or sign-up fees, but since this list is for borrowers with lower credit scores, many of the loans you see below come with added costs. (Read more about our methodology below.)

• Best for people without a credit history: Upstart
• Best for flexible terms: OneMain Financial
• Best for quick funding: Avant
• Best for fast approval: LendingPoint

Who's this for? Upstart is one of the few companies that look at factors beyond your credit score when determining eligibility. It also offers fairly low interest rates.

It considers factors like education, employment, credit history and work experience. Generally, you'll need a credit score of about 300 to qualify for a loan, but you can qualify even if you have an insufficient credit history. If you want to find out your APR before you apply, Upstart will perform a soft credit check. Once you apply for the loan, the company will perform a hard credit inquiry which will temporarily ding your credit score.

You can choose a three-year or five-year loan and borrow anywhere from $1,000 to $50,000. Plus, Upstart has fast service  — you'll get your money the next business day if you accept the loan before 5 p.m. EST Monday through Friday. 

The interest rate and fees, however, can add up. The APR may range from 6.50% to 35.99%. The average 5-year loan offered on Upstart had an APR of 25.05%. If you're more than 10 days late on a payment, you'll owe 5% of the unpaid amount or $15, whichever is greater. You'll also have to pay between zero and 10% upfront on the origination fee, depending on the terms of the loan. The good thing about Upstart is that if you choose to pay off your loan early, you won't be hit with a penalty fee.

Who's this for? OneMain Financial Personal Loans is a good option for people who want different options when it comes to the length of the repayment period. OneMain doesn't determine the terms of your loan just based on your credit score and there is no minimum credit score. The company looks at credit history, income, expenses, and if applicable, collateral. You can also see if you prequalify for a loan without undergoing a hard inquiry. 

OneMain offers loans ranging from $1,500 to $20,000 (this can vary by state), and you can choose between a variety of different term lengths such as 24, 36, 48, or 60 months. There are also no early payoff penalty fees.

The major drawbacks are the high APRs, origination fees and late fees. The APR starts at 18% and can be as high as 35.99%. Origination fees can either be a flat fee ranging from $25 to $500 or a percentage of the loan you've taken out, ranging from 1% to 10%. Meanwhile, late fees can either be a flat $5 to $30 per late payment or 1.5% to 15% of the late amount of your last monthly payment.

While most personal loans are unsecured, OneMain offers people the option of using collateral to receive better loan terms. Collateral may be trucks, RVs, boats and campers.

Who's this for? Avant Personal Loans can be a good option for those who need money in a pinch. If you're approved by 4:30 p.m. CT Monday through Friday, you'll receive your funds the next day. You can also check if you prequalify without harming your credit score.

If your credit score isn't great, you can still get approved as Avant looks at both your credit score and income. However, most of their customers have a credit score of 600 to 700, according to Avant.

You can take out loans between $2,000 and $35,000, and loan terms range from 24 to 60 months.

The origination fees aren't substantial, ranging from 0% to 4.75%. The APR ranges from 9.95% to 35.95% which isn't the lowest interest rate you'll receive, but there are personal loans with higher minimum APRs. Just note there is a late fee of $25 if you don't make your payment within ten days after the due date.

Who's this for? LendingPoint is a good option if you want a loan with a decent APR and origination fee. Much like other personal loans, LendingPoint offers prequalification so you can check the terms of your potential loan without harming your credit score. LendingPoint will also inform you of the approval decision within seconds of applying. Generally, it will take one business day to receive the funds.

There is a minimum annual income requirement of $35,000, and these loans are not available to residents of Nevada or West Virginia. When determining eligibility for a loan, LendingPoint considers credit score, loan term, credit usage, loan amount and other factors.

Loan amounts range from $2,000 to $36,500, and the length of the loan term can be anywhere from 24 to 72 months. While LendingPoint doesn't have the lowest APRs, interest rates start at a relatively low rate of 7.99% to a high 35.99%. The origination fees range from 0% to 7% of your total loan amount.

• What is considered a "bad" credit score
• Can I pre-qualify without hurting my credit score?
• Do personal loans build credit?
• What's the difference between secured vs. unsecured loans?

Here is how lenders classify "fair" and "poor" credit scores:

FICO Score

• Very poor: 300 to 579
• Fair: 580 to 669
• Good: 670 to 739
• Very good: 740 to 799
• Excellent: 800 to 850

VantageScore

• Very poor: 300 to 499
• Poor: 500 to 600
• Fair: 601 to 660
• Good: 661 to 780
• Excellent: 781 to 850

Scores lower than 670, and certainly scores lower than 600, will most likely disqualify you for the most affordable personal loans. But if you're in a pinch, it's not all-out impossible to get a loan with a credit score in the high 500s or low 600s.

Yes, it is possible to pre-qualify for a personal loan without hurting your credit score. Do some research before you apply. Read reviews and learn what to consider before agreeing to take on a loan. When you're ready to apply, follow these steps to make sure you don't ding your score too much.

1. Shop around for the best rate. Avoid hard inquiries by knowing your credit score before you submit a formal application so you know what you might qualify for. Many lenders will allow you to submit a prequalification form. Or consider using a lending platform (such as Upstart or LendingTree) to view multiple offers at once.
2. Decide on the best offer. Choose the loan with the best monthly payment and interest rate for your budget. Be sure to look at how much the loan will cost you over the full length of the term and decide if the cost is worth it.
3. Submit a formal application. Have your social security number on hand, as well as supporting documents such as bank statements and paystubs.
4. Wait for final approval. This could take just a few minutes, an hour or up to 10 days. To facilitate a speedier approval, apply during normal business hours and submit the required documents right away.
5. Get your funds. Once your loan is approved, you'll be asked to input your bank account information so the funds are deposited into your account. You may also be able to request a paper check from your lender, or in the case of a consolidation loan, you may be able to have funds sent right to your creditors.

Compare offers to find the best loan

As you begin to search for a personal loan, it can be helpful to compare several different offers to find the best interest rate and payment terms for your needs. This comparison tool asks you 16 questions, including your annual income, date of birth and Social Security number in order for Engine by MoneyLion to determine the top offers for you. The service is free, secure and does not affect your credit score.

This tool is provided and powered by Engine by MoneyLion, a search and comparison engine that matches you with third-party lenders. Any information you provide is given directly to Engine by MoneyLion and it may use this information in accordance with its own privacy policies and terms of service. By submitting your information, you agree to receive emails from Engine by MoneyLion. Select does not control and is not responsible for third party policies or practices, nor does Select have access to any data you provide. Select may receive an affiliate commission from partner offers in the Engine by MoneyLion tool. The commission does not influence the selection in order of offers.

Personal loans are a form of installment credit, which affect both your credit report and your credit score. Having both installment and revolving credit in your profile will strengthen your credit mix.

Having a diverse credit mix is helpful — but it's not everything. Some say that adding a new installment loan, like a car loan or a mortgage, can boost your score, but there's no sense in taking on debt (plus interest) unless you actually need it.

While a new installment loan might boost your score by strengthening your credit mix, a personal loan will only improve your credit over time if you can afford to make on-time payments. Late and missed payments show up as negative marks on your credit report.

While taking on an installment loan won't boost your score a whole lot, using a personal loan to pay off credit card debt could increase in your credit score. Paying off a card will have a big impact on your credit utilization rate, which is a major factor in determining your credit score.

Once your cards are paid off, aim to keep your spending under 10% of your available credit. If you don't take on more credit card debt and you pay your personal loan on time each month, you'll see a noticeable improvement to your credit score.

A secured loan is a loan backed by collateral. The most common types of secured loans are mortgages and car loans, where the collateral is your home or car. But really, collateral can be any kind of financial asset you own. And if you don't pay back your loan, the bank can seize your collateral as payment. A repossession stays on your credit report for up to seven years.

An unsecured loan requires no collateral, though you're still charged interest and sometimes fees. Student loans, personal loans and credit cards are all example of unsecured loans.

Since there's no collateral, financial institutions give out unsecured loans based in large part on your credit score, income and history of repaying past debts. For this reason, unsecured loans may have higher interest rates (but not always) than a secured loan.

To determine which personal loans are the best for consumers with bad credit, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions. When possible, we chose loans with no origination or sign-up fees, but we also included options for borrowers with lower credit scores on this list. Some of those options have origination fees.

When narrowing down and ranking the best personal loans, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides more than one financing option that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $1,000 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

The rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, many lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.