Best Peer To Peer Lending Bad Credit

Although the digital age has offered P2P lending a facelift, it is not a new concept to anyone. If you have ever borrowed cash from a relative or colleague you have taken part, in peer to peer lending, though informally. Today, the internet has transformed P2P lending into a whole new industry with person to person loans exploding on the scene, usually offering personal loans with low credit score to thousands of borrowers. If you are in dire need of money to start a promising business venture, but all mainstream banks and credit local are not willing to offer you a loan due to bad credit score, P2P lending platforms could be the next sure bet.

Since P2P platforms are branching out into highly specific niches for lending including mortgages, refinancing student loan debts, personal loans, and business loans. Slowly, these niches are moving into personal loan with no income verification catering to the needs of borrowers with less-than-stellar credit scores. Progress on bad credit loans has been quite slow. Nonetheless, there are still prospects to get loans from P2P lending sites if you are looking at less than fair or bad credit score. Therefore, you should not resign yourself to a permanent situation of poor credit when there is plenty of peer to peer lending bad credit loans in the market.

In reality, however, this bad loan lending is still a new concept in the P2P industry. With increasing investment interest on these platforms, the future is bright for borrowers facing challenges accessing funding opportunities due to poor credit scores. It is only a matter of time before more peer to peer lending sites start offering bad credit loans. So how is the industry like now, and what are your options if you have bad credit? There is plenty of misleading content on various sites and news sources claiming that P2P lending sites are a place for consumers with bad credit to access loans. Even as some lenders are providing guaranteed loan approval no credit check financial products, most of the information out there is generally incorrect.

Where Can I Get Peer To Peer Lending Bad Credit Loans?

It is perhaps an overstatement to use bad credit and P2P in the same context. Closer to the reality, is that there is peer to peer lenders who work with fair credit borrowers, and some can go below fair, but a limited number of them will actually give loans to levels of credit categorized as bad. It is essential to understand why this is the situation. P2P lending sites bring together investors and borrowers. These investors are often the primary reason behind fewer loans being available for customers with bad credit.

However, we are going to highlight specific peer to peer lending bad credit loan providers that carry more liberal standards of credit.


Loan AmountInterest RateLoan Term
$500 to $35,0005.99% – 35.99%3 – 72 Months is majorly an online lending platform that connects borrowers with direct lenders and banks. Therefore, this site functions as a peer to peer lending forum. You can get loans from $500 to $35,000 and the loan terms often range from 3 months to 6 years.

Subject to the lender you choose, you can sometimes access the funds as soon as the next day of business. Although the network does not have a specific minimum credit score for loan applications, you may still have to qualify for specific income requirements. Furthermore, respective lending partners on the platform have their own requirements for peer to peer lending bad credit loans.

  • Welcomes all types of credit
  • A wide network of lenders
  • Loans can be used for any purpose
  • Fast approvals and funding
  • Presence in all the 50 states
  • Loans range from $500 to $35,000
  • Specific income requirements to qualify for bad credit loans
  • High interest of up to 35.99%
  • Individual lenders have their own credit requirements

2. Peerform

Loan AmountInterest RateLoan Term
$1,000 to $25,0005.999% to 29.99%36 Months

This platform was founded in 2010 as a digital P2P lending site focusing on personal loan installments. To qualify for a loan on Peerform platform, you will require a FICO credit score of at least 600. Further still, this platform does not offer loans to cosigners or joint applicants. Even as this site does not require you to be employed to get a loan, you must still prove your source of consistent income.

Peerform has a system where they assign different grades to borrowers using an exclusive rating model. The grades start from AAA to DDD. Grade AAA is for low risk borrowers as high risk borrowers are assigned grade DDD. Therefore, you can expect your interest rate to vary with regard to your grade.

Borrowers can access their funding as quickly as after a day but can take up to 2 weeks in some instances. Peerform loans have a regular surcharge for interest rates on the loan, plus a one-time origination fee, which they obtain from your loan when it is being issued. Origination charges can range from 1% to 5%, with regard to your Peerform grade. Grades from A+ and below pay a 5% origination fee.

  • 100% unsecured loans
  • No restrictions for using the loan
  • No prepayment penalty
  • No application fee
  • Loans up to $25,000
  • Flexible APRs based on their grading system
  • The fixed loan repayment term of 36 months
  • A minimum credit score of 600
  • Doesn’t accept cosigners
  • Carries an origination fee based on the loan amount

3. Lending Club

Loan AmountInterest RateLoan Term
$1000 to $40,0005.98% to 35.89%36 months

Having been established in 2007, this is one of the oldest peer to peer lending platforms. Lending Club is an ideal place to access peer to peer lending bad credit loans if you have a minimum FICO score of 600. In reality, however, Lending Club qualifies lower credit scores if you make a joint application with a cosigner who is better qualified.

Just like Peerform, Lending Club has an internal grading system that assigns a grade when applying for a loan. Unlike Peerform, their grades start from A to G. In this case, A is the best grade while G is the worst. In addition, each of the grading levels has five subgrades. For instance, an A1 loan is less risky compared to an A5 loan.

This grading system is used to determine individual interest rates for borrowers. For example, A1 borrowers get the lowest rates and G5 borrowers get the highest rate. In addition to varying interest rates, Lending Club has origination fees starting from 1% to 6% of the loan amount and depending on your allotted grade. This fee is usually deducted from the loan upon issuing. This means that you will get fewer amounts than what you actually applied for.

  • Substantial loan amounts of up to $40,000
  • Accept cosigners
  • Fair interest rates depending on your allotted grade
  • A minimum credit score of 600
  • Origination fees of up to 6% on your loan amount

Online Lending Networks: Alternatives For P2P Lending

While P2P loans are getting easier to obtain compared to institutional loans, there are still opportunities with direct lenders. This is especially among subprime lenders that specialize in bad credit loans. Additionally, these loans often provide for faster financing since most of them are availed as soon as the next day of business.

Direct lenders are more willing to take on applicants with poor credit scores. While they are available in online lending networks just like P2P networks, there are no peers when dealing with direct lenders. Unlike P2P platforms, online lending networks connect direct lenders with prospective borrowers. Some of the best-rated online lending networks can provide loans of up to $35,000, with APRs comparable to most of the P2P platforms.

Here is a quick glance at our best picks of online lending networks to try your luck if P2P lending does not work for you.


Loan AmountInterest RateLoan Term
$500 to $10,0005.99% to 35.99%3 months to 6 years is a digital lending portal connecting borrowers with lenders. Unlike other online lending marketplaces, the loans here are generally smaller, starting from $500 to $10,000. Borrowers only make a single application on the site without charges before receiving a list of direct lenders, who are likely to approve their loans. Since has multiple lenders, their loans cater to consumers with all kinds of credit profiles.

  • Use loan for any purpose
  • Accepts all credit situations
  • Variety of offers
  • More lenders from a wide online network
  • Low amounts of up to $10,000
  • Does not make direct bank deposits
  • High interest rates


Loan AmountInterest RateLoan Term
$500 to $5,0005.99% to 35.99%3 months to 3 years

If you are struggling to find a suitable loan for your low credit score, is one of the best loan aggregators connecting consumers with fair or poor credit with potential lenders. The loans you will access on this network do not come with the lowest rates or most favorable terms. However, they are ideal for those who cannot access credit elsewhere.

  • Large network of lenders
  • Accepts all kinds of credit profiles
  • No application fees
  • Flexible repayment periods from 3 to 36 months
  • No obligation to accept loans offered
  • Low loan amounts of up to $5,000
  • High interest rates of up to 35.99%
  • Specific uses for the loan i.e. auto, home, student, personal, and business loans


Loan AmountInterest RateLoan Term
$1,000 to $35,0005.99% to 35.99%3 months to 6 years

Get approval for loan of up to $20,000 in five minutes or less with This lender network carries multiple lenders, which increases your odds of locating the right lender for you. In addition, the lender provides funding for all credit situations, including bad credit.

  • High loan amounts of up to $35,000
  • Does not require perfect credit
  • Fast approvals
  • Use the loan for anything
  • 5-minute request form
  • Large forum of lenders
  • High interest rates of up to 35.99%
  • Unknown minimum credit score
  • Lacks service in Maine
  • Poor customer service

The Bottom Line

The internet age has made an impact on virtually every aspect of business and finance, including lending to consumers. Fortunately, those impacts are for the better, such as peer to peer lending bad credit loans, which offer lower rates to consumers while still maintaining potential returns to investors. When you have low ratings on your credit score, accessing a loan can be challenging. As such, you need every edge available. General online lending networks that include both direct lenders and P2P can equally be an excellent avenue to find a loan if other traditional ways are not an option.