5 Best Medical Loans for Bad Credit in 2025

A secured loan is one that requires collateral, which is a piece of property that your lender can take if you fall behind on your payments. Offering collateral can make it easier to qualify for a loan. Not only does Best Egg offer secured loans, but it also takes two different types of collateral.

Best Egg’s Secured Loan + Homeowner Discount uses your home’s permanent fixtures as collateral (such as built-in cabinets and vanities). But if you aren’t eligible (because you aren’t a homeowner or because you don’t have enough equity), you can use your car as collateral instead with an auto equity loan.

Keep in mind that secured loans are riskier for you (which is why they are easier to get). Always be sure that you can pay back what you borrow to avoid losing your collateral.

Also, please note that the rates and terms included in this article apply to the Secured Loan + Homeowner Discount product. For more information on Best Egg’s vehicle equity loan, please visit its website.

You must meet the requirements below to qualify for a Best Egg loan:

• Citizenship: Be a U.S. citizen or permanent resident living in the U.S.
• Administrative: Have a personal checking account, email address and physical address
• Residency: Not live in the District of Columbia, Iowa, Vermont, West Virginia or U.S. territories
• Credit score: 580+

It can take longer for a lender to review your application when you have bad credit (it has more to look over on your credit report). OneMain Financial is an exception. It specializes in bad-credit loans, and it offers same-day loans if you get your money via prepaid debit card. It’s also the only lender on this list that has brick-and-mortar branches. Getting in-person help could speed along the process if you’re having trouble deciphering things online.

Uniquely, OneMain uses precomputed interest. That means your overall interest is calculated up front, based on your loan amount and repayment term. Most other lenders use simple interest, which is based on what you currently owe.

Why is this important? Paying your loan off early might not reduce your interest, since it’s already “baked” into your loan (but you could get a rebate or refund for what you overpaid).

OneMain Financial isn’t very transparent about its personal loan eligibility requirements, but it’s possible to qualify with a credit score as low as 500. Before closing on a loan, you’ll be required to provide:

• Government-issued identification (such as a driver’s license or passport)
• Proof of residence (such as a rental agreement or utility bill)
• Proof of income (such as pay stubs or tax returns)

While OneMain Financial doesn’t specify its other qualification criteria, most personal loan lenders consider an applicant’s payment history, income and debt-to-income (DTI) ratio. OneMain loans are not available in Alaska, Arkansas, Connecticut, District of Columbia, Massachusetts, Rhode Island, Vermont or U.S. territories.

Prosper is a peer-to-peer lender, which means individual investors fund its loans instead of a bank. Peer-to-peer loans are typically easier to qualify for than bank loans, hence Prosper’s lower minimum credit score requirement. It also only requires that you make some sort of income, rather than having a hard minimum like other lenders.

Prosper also has a highly rated mobile app. You can use it to apply (without sharing your contact info). Once you’ve finalized your loan, you’ll get free monthly FICO scores via mobile app, too.

After Prosper approves you, lenders have 14 days to fund at least 70% of your loan. If they don’t, then your loan listing will expire and you’ll have to try again. Most people get their Prosper loans in one to five days, but this is something to consider — especially if you have shaky credit, which could cause investors to hesitate.

To get a loan with Prosper, you must meet the following requirements:

• Age: Be 18 or older
• Administrative: Have a U.S. bank account and Social Security number
• Residency: Not live in Iowa or West Virginia
• Credit score: 560+

Lending platform Upgrade isn’t just in the personal loan business. It offers checking accounts, too (FDIC insured and facilitated through Cross River Bank). Having a Rewards Checking Plus unlocks a 10%-20% discount on Upgrade loans and credit cards. You can also earn 2% cash back when you use your debit card for everyday purchases.

However, you must get $1,000 or more in monthly direct deposit to qualify for Rewards Checking Plus. And like many other bad-credit lenders, Upgrade also charges a mandatory origination fee.

To qualify for a loan through Upgrade, you must meet the requirements below:

• Age: Be at least 18 years old (19 in some states)
• Citizenship: Be a U.S. citizen or permanent resident, or live in the U.S. with a valid visa
• Administrative: Have a valid bank account and email address
• Credit score: 580+

Upstart is a lending platform that uses AI to determine your creditworthiness. It looks beyond your credit score and considers other factors like your employment and education. In fact, if you’re a college student working toward at least an associate’s degree, Upstart may waive its credit score minimum. The same goes for eligible college grads. This helps it approve people that other lenders would deny.

You’ll have to qualify on your own merit, since Upstart doesn’t let you add a co-borrower to your loan. Also, the lower your credit score, the more likely it is Upstart charges you an expensive origination fee (0.00% - 12.00%).

Upstart has transparent eligibility requirements, including:

• Age: Be 18 or older
• Administrative: Have a U.S. address, personal banking account, email address and Social Security number
• Employment: Have a job or job offer that starts within six months, or have regular income
• Credit-related factors: DTI ratio no higher than 50% (45% in Connecticut, Maryland, New York and Vermont), no bankruptcies within the last year, fewer than six inquiries on your credit report in the last six months and no current delinquencies
• Credit score: 300+