Blog Borrow Best Peer-to-peer Lending Platforms for Bad Credit in 2021

Best Peer-to-peer Lending Platforms for Bad Credit in 2021

date October 1, 2020 time 5 min read 65081 views

If you have a bad credit score, you may find it difficult to get a loan. Payday lenders and similar institutions are a surefire way to lose money and escalate debt. Fortunately, you can now borrow money via peer to peer lending with no credit check. No need to deal with the predatory lenders of old. Here’s a guide to finding the best peer-to-peer lending for investors 2021.

If you have a poor credit history for whatever reason, then it can be difficult to find a loan.

For years if you tried to find loans with bad credit you had three choices: beg your friends, pawn your possessions, or get a notoriously risky payday loan.

But today, peer to peer (P2P) lending platforms make it possible for you to take out an instant loan no matter your score with reasonable interest rates. In fact there’s so many platforms offering similar services today that it can be a bit difficult to know where to start.

But in a nutshell, peer to peer lending for bad credit holders is finally an option.That’s why today we’ve created a guide to help you choose the best peer to peer lending sites for bad credit holders in 2021.

Choose peer to peer lending if you have a bad credit score
Choose p2p loans bad credit if you have a bad credit score (source:

Is P2P lending an option if you have a bad credit score?

When you apply for credit with a bank, it can stay on your credit report for two years. However, inquiring about peer to peer lending for bad credit usually has no impact on your credit score. You can use peer to peer loans bad credit.

Keep in mind, however, that some companies still may run hard credit checks which might affect your score. When searching for the best peer to peer lending bad credit, first inquire into the platform’s credit check process to see if your application will affect your credit score. Some peer to peer loans bad credit can even help you improve your score if you pay on time.

Peer to peer lending: A better alternative for borrowers

If you choose peer to peer lending for bad credit, you can escape discriminatory credit checks and access funds when you need them. 

Other benefits of borrowing from a peer to peer lending platform include:

  • Low interest.
  • Limits to lender rates.
  • Alternatives to credit checks as a means of risk assessment as well as options to secure your loan with collateral.
  • Few fees or surprise bank charges.

As it stands, these are some of the most well-known P2P lending platforms right now:

  • MyConstant
  • Lending Club
  • Peerform
  • Upstart

These peer to peer loans bad credit platforms can generally be broken down into two categories: Credit-score alternative platforms, and collateral-backed ones. However, they all offer p2p loans bad credit.

The top credit score alternative P2P platforms for bad credit

On traditional platforms, the platform connects you with lenders offering fixed-rate loans. While some of these peer to peer lending for bad credit platforms may still check your credit score, many others use their own methods for checking creditworthiness and can often give you a much better rate.

It is possible to use P2P lending for bad credit scores.
It is possible to use P2P lending for p2p loans bad credit scores. (source:

1. LendingClub

One of the most famous P2P lending platforms in the US today, Lending Club offers the following benefits to borrowers:

Loan amounts: up to $40,000

Repayment terms: 3-5 years

Interest rates: 5.98% up to 35.89% (depending on FICO score)

Fees: 2-6% loan origination fee

Requirements: A credit score of at least 600

Check out our review of LendingClub on Medium for more information on what the platform has to offer.

2. Upstart

Created in 2012, Upstart started its career boasting a complex algorithm that they claimed could assess borrower credit better and a FICO score. They target recent graduates who may not have had sufficient time to build up their credit score and are hurting from student loans.

Loan amounts: Between $1,000 and $50,000.

Repayment terms: 3-5 years.

Interest rates: Between 8.13% and 35.99%.

Fees: Origination fees of up to 8% of your loan amount.

Requirements: A minimum credit score of 620 and minimum annual income of $12,000 are required to qualify. 


  • Checking your rate on Upstart doesn’t affect your credit score.
  • No prepayment penalty


  • Upstart requires you have no bankruptcies or delinquent loans,
  • If you have bad credit you may need to submit other info including SAT scores, information on your area of study, or detailed employment information.
Turn to peer to peer lending with bad credit score with crypto
Turn to peer to peer lending with bad credit score with crypto (source:

3. Peerform

Founded in 2010, Peerform is an online peer to peer lending bad credit platform specializing in personal installment loans. 

Loan amounts: $4,000-$25,000

Repayment terms: 3-5 years.

Interest rates: 5.99% up to 29.99%

Fees: Origination fees of up to 8% of your loan amount.

Requirements: you’ll need a minimum FICO credit score of 600 and a verifiable source of regular income. 


  • Has debt consolidation loans.
  • You can improve your credit score with on time payments.


  • For debt consolidation no direct payments to creditors.
  • Peerform does not accept joint applicants or cosigners.

Get the best P2P rates on collateral-backed platforms like MyConstant

When you choose a collateral-backed platform like MyConstantcrypto lending platform, you can access lower interest rates than on other platforms.

MyConstant offers an impressively low-interest rate of 6% APR for personal crypto loans. That’s because to take out a loan you must already have the equivalent of 150% of the loan value in cryptocurrency as collateral. 

MyConstant is one of the best peer to peer lending for bad credit. (Source: Pixabay)

Why take out a loan with 150% collateral?

While it might seem counterintuitive to take out a loan when you have 150% of the value in crypto, it’s important to remember that crypto itself is often an investment.

Besides being  a great way to perform transfers without the restrictions of the traditional banking system crypto such as qtum coin increases and decreases in value much like stocks. A loan against your crypto is almost like a loan against your investment portfolio management.

At MyConstant, we don’t run background checks or credit checks on any of our applicants. We offer equal benefits to all of our customers who have collateral and you can earn interest on crypto up to 4% APR in BTC, ETH, or BNB, compounded and paid every second.

When you borrow from MyConstant, you also get:

  • Flexible terms from 1-6 months.
  • No credit checks or invasive background checks
  • No minimum loan amount and option to withdraw instantly in USD or 70+ different cryptocurrencies.
  • 24/7 customer service

Don’t get done over by high-interest rates and unnecessary fees. Borrow fair or lend money online to earn interest with MyConstant today.

Sign up for a free account today.

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George Schooling

George Schooling

Invite friends and you both earn 10 USDT when they first lend stablecoins or make a crypto-backed loan

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