9 Best Bad Credit Loans in Texas

Overview. Upstart is an online lender that uses AI for underwriting and offers loans to borrowers with poor or no credit history. They operate nationwide including in Texas but no physical branches.

Features. Upstart offers personal loans from $1,000 to $50,000 with loan terms of 3 to 5 years. APRs start at 7.40% and go up to 35.99% depending on the borrower’s credit score and financial profile. The minimum credit score to qualify is 300 and applicants with no credit history can qualify if they are enrolled or have graduated from an accredited institution. No minimum income is required, but applicants must meet other standard eligibility criteria such as being a U.S. citizen or permanent resident.

Pros. Upstart offers loans to borrowers with very low credit scores, including those with no credit history. The platform has a good reputation with high Trustpilot ratings. Upstart offers fast loan funding, on the same day.

Cons. The origination fee can be as high as 12% which adds to the cost of the loan. Only two loan terms to choose from, which may not fit every borrower’s needs. No co-signers or co-borrowers are allowed, which limits flexibility for borrowers who need extra help.

Overview. OneMain Financial is a direct lender that offers online and in-person services. They operate in 44 states including Texas and allow applicants to apply online, by phone, or at a branch. OneMain Financial specializes in offering loans to borrowers with poor or no credit history and offers same-day funding if funds are received through a bank-issued debit card.

Features. OneMain Financial offers personal loans from $1,500 to $20,000 with rates from 18.00% to 35.99%. No minimum credit score is required, but applicants must have a minimum monthly income of $800 to $1,000. They also offer fast funding and prequalification, but prequalification does not show the APR.

Pros. OneMain Financial allows borrowers to choose and change their payment dates for more flexibility. They offer joint and secured loan options, which can help improve approval chances and potentially better terms. Same-day funding is available and for debt consolidation loans, payments can be sent directly to creditors, making the repayment process easier.

Cons. A high APR range may be a concern for bad credit borrowers, and the maximum loan amount may not be enough for some borrowers. Prequalification does not show the APR, so borrowers will not know the total cost of the loan until approved.

Overview. Upgrade is an online lending platform based in San Francisco that offers loans across the U.S., including Texas. It is a direct lender that offers personal loans for borrowers with various credit histories.

Features. Upgrade offers personal loans from $1,000 to $50,000 with rates from 9.99% to 35.99%. Loan terms are 24 to 84 months. The minimum credit score required is 580 and applicants must meet standard eligibility criteria which include U.S. citizenship or permanent residency and verifiable bank account.

Pros. Upgrade offers flexible repayment terms. Borrowers can choose longer loan terms and manage their monthly payments. Borrowers who use autopay get a lower rate, which reduces the overall cost. They also offer fast processing time; funding is usually available in a few business days.

Cons. Upgrade charges an origination fee, which is deducted upfront, from 1.85% to 9.99% of the loan amount. Bad credit borrowers may get higher APR and fees. They don’t offer joint loans, which may limit options for some borrowers who need extra help getting approved.

Overview. Avant is an online lender that offers personal loans to borrowers with less-than-perfect credit. They operate nationwide including Texas and partner with WebBank to originate loans. Avant does not have physical locations, they only operate online.

Features. Avant offers loans from $2,000 to $35,000 with repayment terms of 24 to 60 months and APRs from 9.95% to 35.99%. Borrowers need a minimum credit score of 550 and a minimum monthly net income of $1,200. They accept income from various sources, including employment, alimony, retirement, Social Security, or disability benefits. Funds are available the next business day, and no active bankruptcies are allowed.

Pros. Avant offers fast funding, flexible repayment terms, and no prepayment penalty, so borrowers can pay off their loans early without additional fees.

Cons. Avant charges an admin fee, and borrowers may get late fees for missed payments. They don’t allow co-signers or joint applications, which may limit options for some borrowers.

Overview. MoneyMutual is an online marketplace that connects borrowers with lenders offering personal loans. It operates nationwide, including in Texas, and has funded over 2 million customers. MoneyMutual is not a direct lender, but partners with multiple lenders to offer borrowing options.

Features. MoneyMutual offers loans up to $5,000. The minimum credit score is not specified, as they connect borrowers with multiple lenders, each with its own requirements. To qualify, applicants must have a minimum monthly income of $800, be at least 18 years old, be a U.S. resident, and have a checking account. Funds are available within 24 hours after approval, and the application process is quick—less than 5 minutes.

Pros. MoneyMutual offers fast funding, with funds available in as little as 24 hours. It is easy to use, with a simple online form that takes less than 5 minutes to fill out. It has built a strong reputation, trusted by over 2 million customers, making it a popular choice for quick loans.

Cons. MoneyMutual is not a direct lender, so borrowers may get varying terms and fees from different lenders. They primarily offer short-term loans which may have high interest rates. And the minimum income requirement may exclude some borrowers.

Overview. Universal Credit is an online lending platform powered by upgrade that offers personal loans to bad credit borrowers who want to build or rebuild credit. They operate nationwide, including in Texas, and do not have physical locations. Universal Credit is known for fast funding and flexible loan terms.

Features. Universal Credit offers loans from $1,000 to $50,000 with APRs from 11.69% to 35.99%. Loan terms from 36 months to 60 months. Borrowers must have a minimum credit score of 580 and at least 2 years of credit history. The lender requires a debt-to-income ratio of no more than 75% including the loan you are applying for. No minimum income requirement but income from alimony, retirement, child support, and Social Security is accepted. Origination fee from 5.25% to 9.99% and fees for late payment and insufficient funds.

Pros. Universal Credit offers fast funding, funds are disbursed within one business day. They offer the option to secure loans with collateral such as a car, which can help bad credit borrowers qualify. They also offer direct payments to creditors, making the debt consolidation process easier.

Cons. APR range is higher compared to other lenders and the origination fee is on the higher end which can increase the overall cost of the loan. Borrowers who don’t qualify for unsecured loans may need to use an asset like a car as collateral. Despite the higher costs, some borrowers may still find the loan terms favorable due to Universal Credit’s flexibility and customer service.

Overview. Best Egg is an online lender that has been in business since 2014 and has funded over 1.1 million loans. They offer both secured and unsecured personal loans and are available in 47 states, including Texas. Best Egg offers quick loan approvals and is known for its flexible approval model and the option to secure loans with assets like a car or home fixtures.

Features. Best Egg offers personal loans from $2,000 to $50,000 with APRs from 6.99% to 35.99%. The minimum credit score is 600. Loan terms vary, and secured loans are available, which can offer lower rates. They accept income from multiple sources, and for those with credit scores above 700, better rates are available for higher-income borrowers. Best Egg also offers direct payment to creditors and has a flexible rent program for eligible borrowers.

Pros. Best Egg has a quick application and approval process, so many borrowers get funded faster than with other lenders. They offer both secured and unsecured loan options, so borrowers have more flexibility. The option to secure loans with assets like a car or home fixtures can give lower rates and better terms.

Cons. Best Egg has competitive rates, but the minimum credit score may still not qualify some borrowers. Origination fee which is common for personal loans adds to the cost of the loan. Some borrowers may not qualify for secured loans and thus will have higher interest rates.

Overview. Texans Credit Union is a member-focused financial institution that operates in several counties in Texas. They offer personal loans to eligible members online and offline, and you can visit their branch locations in various Texas counties. Texans Credit Union serves those who live, work, or attend school in specific Texas counties, so it’s available to local residents.

Features. Texans Credit Union offers personal loans with loan amounts from $500 to $25,000. APRs are 8.74% for 36 months and 10.74% for 37-60 months. A minimum credit score is 620. Loan terms and conditions depend on the applicant’s creditworthiness. Applicants must meet membership eligibility criteria such as living, working, or attending school in specific counties or being an immediate family member of a current member.

Pros. The credit union has competitive APRs, especially for good credit borrowers. They have flexible loan terms, so it’s easier to find a repayment plan that fits the borrower’s financial situation. Membership requirement gives a sense of community and personalized service to local residents.

Cons. The membership requirement limits eligibility to those in specific Texas counties or family members of current members. The minimum credit score requirement may not qualify some borrowers, and rates may be higher for those with bad credit history.

Overview. Community Resource Credit Union is a member-focused institution that offers personal loans to its members. They operate online and offline with several branches, primarily serving residents in specific Texas counties and members of certain organizations. They have an online application process for Quick Cash loans, so eligible members can apply from the comfort of their own homes.

Features. Community Resource Credit Union offers Quick Cash loans from $200 to $1,000 with 28% APR. Loan terms are 6 months for up to $500 and 12 months for $501 to $1,000. $20 funding fee if the loan is approved. To qualify, you must be a member for at least 3 months and enrolled in online banking. No credit check is required for these loans. You must live, work, worship or attend school in eligible areas or be employees/retirees of ExxonMobil or US Steel.

Pros. The quick cash loan process is fast and easy, and funds are deposited directly to your account once approved. No application fee and no credit check, so it’s available for those with bad credit. You can apply through online banking or a mobile app.

Cons. You must be a member for at least 3 months before you can apply, which may not be accessible for new members. Loan amounts may not be enough for bigger financial needs, and APR is high for short-term loans.