While many personal loan lenders require borrowers to have good to excellent credit, several lenders also offer personal loans designed for borrowers with bad credit. Because bad credit personal loans are more of a risk to the lender, their interest rates are usually higher compared to the rates on good credit loans — meaning you’ll pay more overall for one of these loans.

A good way to understand what a bad credit loan will end up costing you is to look at the annual percentage rate (APR). This percentage represents both the total amount of interest plus any fees — such as origination or late fees — that you’ll pay on a yearly basis for your loan.

Also, keep in mind that taking out a personal loan might help your credit in the long run. For example, if you’re able to reduce your credit utilization by consolidating debt with a personal loan and make all your payments on time, you could see a gradual improvement of your credit score.

A bad (or poor) credit score is generally considered to be a score below 640. Here are the typical credit score ranges:

Poor (less than 640): It can be hard to qualify for a personal loan if you have a score in this range — unless you work with a lender that offers bad credit loans. You might also be able to get approved by applying with a cosigner. Borrowers with poor credit are typically offered the highest available interest rates.

Fair (640 to 699): While you might have a somewhat easier time getting a personal loan with fair credit, you can generally expect to pay higher interest rates. Applying with a cosigner might help you qualify for a better interest rate.

Good (700 to 749): Having a good credit score will help you get approved for personal loans with most lenders, as well as get you better interest rates. If you have a good credit score, it’s unlikely that you’ll need a cosigner to qualify for a loan — though having one might help you get a better interest rate than you’d get on your own.

Excellent (750 and above): With an excellent credit score, you’ll likely qualify for the vast majority of personal loans and be offered the lowest interest rates advertised by lenders.

If you’re ready to apply for a personal loan, follow these four steps:

Check your credit. When you apply for a personal loan, lenders will check your credit to determine your interest rate — so it’s a good idea to see what shape your credit is in before you apply. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureau to potentially boost your score.

Compare lenders and pick a loan option. Be sure to compare as many lenders as possible to find the right loan for your needs. Consider not only interest rates but also repayment terms, any fees the lender charges, and qualifying requirements. After researching your lender and loan options, choose the loan that works best for you.

Complete the application. Once you’ve picked a lender, you’ll need to fill out a full application and submit any required documentation — such as tax returns or pay stubs.

Get your funds. If you’re approved, the lender will have you sign for the loan so the money can be released to you. The time to fund a personal loan is usually about one week — though some lenders will fund loans as soon as the next business day after approval.

Credit bureaus calculate your credit score based on a number of factors in your credit history. Your payment history is the most important, making up 35% of your FICO Score. That means late and missed monthly payments — or having no payment history at all — damage your score more than any other factor.

This depends on the lender. For example, online lenders are usually the fastest option, sometimes offering approval decisions within minutes. Traditional banks and credit unions, on the other hand, could take longer.

The time to fund a personal loan also varies by lender. Here are the funding times you can typically expect:

Online lenders: Less than five business days

Banks: One to seven business days

Credit unions: One to seven business days

Some lenders provide fast personal loans with quicker funding times. For example, several Credible partner lenders offer next- or even same-day personal loans.

If you want to get your funds as soon as possible, here are a couple ways to avoid delays:

Fill out your loan application as accurately as you can.

Provide any required documentation in a timely manner.

When you apply for a personal loan, the lender will likely ask you to submit some documentation. The specific documents requested will depend on the lender but could include:

Personal identification, such as a government-issued ID

Social Security card, to verify your identity

Income verification, such as tax returns or pay stubs

Bank statements, to further demonstrate your income

Be sure to read any documentation requests from the lender carefully — this way, you can make sure you submit the most accurate information possible.