Transform Credit is an online lender that specializes in personal loans for bad credit borrowers with a cosigner. With a quick online application, loans up to $10,000 and a 35.99% APR for all borrowers with no fees, it can be a good alternative to high-cost payday loans.
But while it’s one of the few personal loan providers to accept cosigners, it doesn’t just accept them — it requires them. To get a loan from Transform Credit, you must have a cosigner with a credit score of at least 750. Transform is also only available in a few states, so it’s not an option for most Americans. With a cosigner, you may qualify for lower rates or larger loan amounts through another provider.
We’ve gathered eight lenders like Transform Credit with different attributes such as higher loan amounts, flexible credit score requirements, more state availability, lower rates and other payday loan alternatives. And if you did have a cosigner, we have a better alternative to consider, too.
Upgrade requires a credit score of 620 for personal loans from $1,000 to $50,000 — much higher borrowing amounts than Transform Credit. Upgrade is also great for its fast turnaround time, quick online application and great customer service reviews. Upgrade is also available in 45 states, which is much more than Transform Credit's limited availability of nine states.
While it doesn't accept cosigners like Transform Credit, Upgrade does accept joint applications, so you can apply with a coborrower. However, Upgrade does have strict income requirements, requiring that you have at least $1,000 leftover after paying your monthly expenses — which your coborrower can help you meet.
Not available in: Colorado, Iowa, Maryland, Vermont, West Virginia
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 9.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.
OneMain Financial is a solid option for borrowers with poor credit who struggle to qualify with other personal loan providers. OneMain doesn't have any hard and fast credit score requirements, and loan amounts cap out at $20,000 — much higher than Transform Credit's $7,000.
On the downside, OneMain has high rates compared to other personal loan providers. Rates range from 18% to 35.99%, but compared to Transform Credit, the max is the same. And if you want a chance at getting a lower rate, OneMain does offer secured personal loan options. But you'll also have to account for an origination fee between 1% to 10% of your loan amount, and it charges late fees. These extra costs may make it a more expensive option than Transform Credit.
Not available in: Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont
Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loanfees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.
With its hard-to-beat rates and high lending amounts, LightStream is a top provider. It offers unsecured personal loans up to $100,000, and terms can be as long as 12 years. LightStream also offers one of the most competitive personal loans out there, with low rates starting at 6.99%. It also has a Rate Beat Program, offering a 0.10% rate discount if you have an eligible competitor offer. And if you enroll in autopay, there is a rate discount of 0.50% — most other providers limit that discount to 0.25%.
However, to qualify, you'll likely need good to excellent credit. And while it does accept joint applicants, LightStream, unfortunately, doesn't accept cosigners. You also can't check your rate without a hard credit check.
OppLoans is a short-term installment lender that reports loan payments to all three credit bureaus, allowing you to build your credit score if you make timely payments. Most other traditional personal loan providers also report payments, but they tend to prefer good credit scores — OppLoans doesn't have a minimum credit score requirement.
Transform Credit does offer a credit builder product for $5 per month, but like its short-term loans, you'd also need a cosigner. And its credit builder product isn't a loan but more like a savings account, so it's not helpful if you need to borrow.
OppLoans loan amounts and terms are small, allowing you to borrow up to $4,000 with short terms from 9 to 18 months. Rates are significantly higher than Transform Credit at 179% APR, though lower than most bad credit options. While OppLoans isn't available everywhere, it's available in 33 states — way more than Transform Credit.
Not available in: Colorado, Connecticut, Georgia, Iowa, Maryland, Massachusetts, New York, South Dakota, Vermont, West Virginia
If you find yourself constantly looking to expensive payday loans to avoid overdrafting or to get through tough times, then the Brigit app may be for you. Brigit offers automatic overdraft protection and can send alerts if you're about to overdraft.
Alongside its money-management features, it offers paycheck advances up to $250 with no interest or financing fees. It's also available in all 50 states, unlike Transform Credit. Like other cash advance apps, there's no credit check for the cash advance, but you will need a qualifying, positive bank account. But Brigit isn't free. It has a monthly membership fee of $9.99 to $14.99 monthly membership fee per month.
Available in all states
Pros
Overdraft protection
$250 paycheck advances
Available in all 50 states
Cons
$9.99 to $14.99 monthly membership fee monthly membership
Mixed customer reviews
Joint bank accounts not accepted
Loan amount
$50 - $250
Interest rate type
Fixed
Loan Term
Until your next payday, but can extend
Turnaround time
2 to 3 business days or instant with a Premium subscription or for a fee.
Loan amount
$50 - $250
Turnaround time
2 to 3 business days or instant with a Premium subscription or for a fee.
If you're just not sure what lender to go with, then Monevo could be a good first step. It's a connection service that helps you compare lender offers after a quick, free, soft credit check application. Monveo is partnered with over 20 personal loan providers with advertised rates from 5.4% to 35.99%, and all credit types are encouraged to apply.
There's no obligation to move forward with any of the lenders you're matched with if you use Monevo. But like other connection services, you may be sent marketing material from its lending partners — even after you've taken out a loan.
If you have a cosigner with excellent credit, Laurel Road may be a much better option than Transform Credit. Laurel Road accepts cosigners and comes in with a much lower maximum interest rate of 23.25% compared to Transform Credit's 35.99%. Most borrowers can get up to $45,000 in funds, though healthcare professionals can qualify for as much as $80,000. There are also no origination fees or prepayment penalties, and it's available in all 50 states.
However, expect to need fair to good credit to qualify — Laurel Road requires a 680 minimum credit score. But if you have a cosigner, they may help you meet that requirement. You'll also need to meet the debt-to-income ratio requirement of 40% or less.
Available in all states
Pros
Accepts cosigners
Lower rates than Transform
Healthcare professionals may borrow more
Available in all states
No origination fees or prepayment penalties
Cons
Strict 40% maximum DTI
Highest loan amounts only available to healthcare professionals
MoneyLion is a banking app with budgeting tools, paycheck advances and a credit-building product. The paycheck advance product is called Instacash, and if you qualify, you could borrow from $50 to $500 with no interest, fees or monthly membership. If you sign up for the paid membership, you may be able to unlock Instacash amounts up to $700.
The other borrowing product is called Credit Builder Plus, also requiring no credit check. It's like other credit builder loans, except you get a portion of the funds upfront — most lock it in a savings account until the end of your term. The maximum amount is $1,000 and payments are reported to all three credit bureaus. However, to access the credit builder loan, you must have a membership, which is Free (or $1 to $5 for RoarMoney account) per month.
Available in: Alabama, Arizona, California, Delaware, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Maryland, Michigan, Missouri, New Mexico, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, Utah, Washington, Wisconsin, Wyoming
Pros
No-fee advances up to $500
Credit builder loan offers funds upfront
Money management tools
Investment account with paid membership
Cons
Free (or $1 to $5 for RoarMoney account) monthly membership for best perks
May take eight weeks to qualify for Instacash
Loan amount
$50 - $500
Interest rate type
Fixed
Loan Term
Due by your next pay date
Turnaround time
Up to 5 days or instant for a fee of $0.49 to $8.99
Loan amount
$50 - $500
Turnaround time
Up to 5 days or instant for a fee of $0.49 to $8.99
How does Transform Credit compare?
Transform Credit is a payday loan alternative lender, offering small loan amounts to borrowers with lower credit scores or rocky borrowing histories. Its rates are lower than a typical payday loan, and it does accept cosigners — a rarity among personal loan providers. But having a cosigner isn’t optional.
There are no additional fees alongside its interest rate of 35.99%. But Transform Credit is only available in nine states: Georgia, Illinois, Wisconsin, Utah, California, Idaho, Oregon, South Dakota and New Hampshire. But your cosigner can live in any state.
Transform Credit also has a Pattern of Complaint alert on its BBB profile. Most complaints revolve around users stating they were approved for a loan they did not apply for, credit scores were checked without authorization and cosigners being added to loans with consent. The alert states Transform Credit is supplying requested information and is working to correct the issue.
Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto.
Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt.
Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others.
Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio
Bethany's expertise
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