How to Qualify for a $25,000 Personal Loan with Bad Credit in the US

If you have bad credit and need a $25,000 personal loan, you might think it’s impossible. But the good news is — it’s not. With the right approach, lenders in the U.S. do offer large loans to borrowers with less-than-perfect credit. In this guide, we’ll show you how to qualify, what lenders to consider, and what to watch out for.

📉 What Is Considered Bad Credit?

Credit scores range from 300 to 850. A score below 580 is usually considered poor credit by most U.S. lenders.

Credit Score Range Credit Rating

800 – 850 Excellent
740 – 799 Very Good
670 – 739 Good
580 – 669 Fair
300 – 579 Poor (Bad Credit)

Having bad credit doesn’t mean automatic rejection. Some lenders specialize in subprime loans, especially in the personal loan market.

🏦 5 Steps to Qualify for a $25,000 Loan with Bad Credit

✅ 1. Know Your Credit Score

Start by checking your credit report from:

AnnualCreditReport.com (Free yearly credit report)

Credit Karma, Experian, or Credit Sesame

Knowing your score helps you identify which lenders are most likely to approve you.

✅ 2. Find Lenders That Accept Low Credit Scores

Look for fintech platforms and online lenders with flexible approval criteria.
Some examples include:

Upstart (AI-based underwriting)

Avant (Accepts 580+ scores)

OneMain Financial (Accepts co-signers & secured loans)

LendingPoint (Focus on income over credit score)

✅ 3. Add a Co-Signer or Collateral

A co-signer with good credit can increase approval chances

A secured personal loan (backed by a car, savings, or asset) reduces risk for the lender

✅ 4. Show Proof of Income & Employment

Even with bad credit, you can still qualify for large loans if you:

Have stable monthly income (pay stubs, tax returns, or bank deposits)

Have low debt-to-income ratio (DTI under 35% is ideal)

✅ 5. Improve Credit Score (If You Can Wait)

If you’re not in a rush, even raising your score by 30–50 points can dramatically increase your chances of approval for a $25,000 loan at a lower interest rate.

Ways to improve credit fast:

Pay down credit card balances

Dispute any errors on your report

Become an authorized user on a family member’s card

💰 What Are the Loan Terms for Bad Credit Borrowers?

Factor Typical Range (Bad Credit)

Interest Rate (APR) 17% – 35.99%
Loan Term 2 – 5 years
Origination Fee 1% – 8%
Funding Time 1 – 3 business days

⚠️ Red Flags to Avoid

No-credit-check payday loans – extremely high APR

Upfront fee scams – no legitimate lender charges fees before approval

Loan stacking – applying for multiple loans at once can hurt your credit

📝 Final Tips for Success

Prequalify first (soft credit check)

Apply with lenders that disclose loan terms upfront

Don’t borrow more than you can afford to repay

Use the loan wisely (debt consolidation, emergency expenses, etc.)

✅ Best Lenders for $25,000 Personal Loans with Bad Credit (2025)

Lender Min Credit Score Max Loan APR Range Funding Time

Upstart 580+ $50,000 6.5% – 35.99% 1–2 days
Avant 580+ $35,000 9.95% – 35.99% As fast as 1 day
OneMain Financial No minimum $20,000+ 18% – 35.99% Same day
LendingPoint 585+ $36,500 7.99% – 35.99% 1–3 days

📌 Conclusion

Qualifying for a $25,000 personal loan with bad credit in the US is possible — but you’ll need to be strategic. Choose lenders who specialize in bad credit loans, show proof of income, and avoid predatory terms. With smart choices, you can get the funds you need while rebuilding your credit over time.