Best Bad Credit Personal Loans
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A personal loan isn’t automatically out of grasp if your score isn’t great. Some lenders market to people with less-than-great credit. Expect higher interest rates, though. Loan terms vary widely, so it’s vital to compare offers. Prequalify with a soft credit check that won’t hurt your score.
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You applied for a loan, and the answer came back no. Or you haven't applied yet because you're bracing for that no. And you’re worried the attempt alone will knock a few more points off a score that's already hurting.
It’s true that bad credit narrows your personal loan options. It doesn't erase them, however. Some lenders design loans for people with blemished credit. And they consider all of your qualifications, not just your score. That means your income, debt, and payment history all count. Some may even include things like education and employment history.
You don’t need to put your credit score at risk just to find out if you qualify. Look for risk-free loan prequalification, which allows you to compare offers without committing to a hard credit pull. So you can find the lender and loan for your situation.
What counts as bad credit for a personal loan
Before assuming you need a bad-credit loan, check your credit score. You can often get your scores for free from your bank, credit card issuer, or a third-party app. Experian and Equifax both offer free credit reports and scores.
Lenders all have their own benchmarks for which scores they’ll accept. In general, mainstream personal loan lenders prefer a FICO Score of 620 or higher, which is around the middle of the Fair tier from FICO:
| Credit Tier | FICO Score Range |
|---|---|
| Poor | Under 580 |
| Fair | 580 to 669 |
| Good | 670 to 739 |
| Very Good | 740 to 799 |
| Exceptional | 800 or higher |
A score below 620 isn’t an automatic disqualification with every lender. But if you’re in the Poor tier, you might need to consider lenders that specialize in bad credit loans. You may even find personal loans with a 500 credit score with the right lender.
In other words, there's no single minimum score that every lender requires, which is exactly why comparing a few is typically the best strategy.
Best bad credit personal loans compared
These lenders work with poor and fair credit, and each brings something different, whether that's a low starting amount, a secured option, or underwriting that looks past your score. Here's how they line up:
| Lender | Loan amount | APR range* | Term | Origination fee | Standout trait |
|---|---|---|---|---|---|
| Upstart | $1,000 to $75,000 | 6.3% to 35.99% | 3 or 5 years | Up to 12% | Weighs education and employment, which could help a thin credit file |
| Avant | $2,000 to $35,000 | 9.95% to 35.99% | 24 to 60 months | Up to 9.99% | Built for fair credit, with fast funding |
| LendingPoint | $1,000 to $36,500 | 7.99% to 35.99% | 24 to 72 months | Up to 10% | Works with fair credit across a wide range of amounts |
| Prosper | $2,000 to $50,000 | 8.99% to 35.99% | 2 to 6 years | 1% to 9.99% | Allows a co-applicant, which could strengthen your case |
| OneMain | $1,500 to $30,000 | 11.99% to 35.99% | 24 to 60 months | Charged, varies | Offers both secured and unsecured loans |
| Oportun | Unsecured $300 to $10,000, secured $2,525 to $18,500 | Up to 35.99% | Varies | Up to 10% | Works with no credit history, and a car title secures a larger loan |
Loan details may vary by state and are subject to change. Rates as of August 2026.
When comparing lenders, consider the annual percentage rate (APR) rather than just interest rates. APR includes the interest plus common charges like origination fees. Origination or administrative fees tend to range from 0% to 12% of the loan across lenders.
Secured vs. unsecured loans for low credit scores
Most personal loans are unsecured, which means they don’t require you to provide collateral or something of value you own to back the loan. Without collateral, though, lenders must rely on your credit history to gauge your risk. This could make it harder to get approved if your history shows negatives like missed payments or maxed-out cards.
Another option is a secured loan. A secured loan is backed by collateral, usually a vehicle or home equity. Here's the tradeoff you have to sit with: If you pledge your car or home and can't repay, the lender will probably take it.
Anything you pledge as collateral is on the line if you stop making payments on a secured loan. The upside is also real. Because collateral lowers the lender's risk, a secured loan could come with a lower rate or a better shot at approval. When your score is deep in the poor range, that collateral could be the difference between a loan offer and a rejection.
Another option: the joint or co-signed loan
If you can’t or don’t want to pledge collateral for your loan, you might shore up your application with a co-borrower or co-signer. Adding another person to your loan can help make up for weakness in your credit or income. A co-signer agrees to pay your loan if you don’t. A co-borrower is as responsible for payments as you are and legally entitled to access the funds.
Consider the risk to your relationship and the other person’s finances and credit if you don’t pay the loan as agreed. But this tactic could help you get approved or receive better terms.
How much personal loans for bad credit cost
Personal loan costs generally come from two places:
- The interest fees
- The origination or loan fees
Bad credit loans are more expensive than prime loans. Expect higher rates, fees, or both. Origination fees can range up to 12% from some lenders and you’re likely to see a fee on the higher end of the range if your score is low.
Rates for personal loans also vary widely based on your credit, income, the lender, and market conditions. Among mainstream lenders, the ceiling sits at 35.99% annual percentage rate—and with poor or fair credit you should expect to land closer to that ceiling than the floor.
A loan with a higher interest rate but lower origination fee could wind up cheaper overall, or the opposite could be true. Compare loan offers from at least a few different lenders to make sure you’re getting the lowest possible rates and fees for your situation.
Use APR to compare personal loan costs
The best way to compare loan offers with different rate and fees structures is using the annual percentage rate (APR). APR is the yearly cost of your loan. It folds in the interest plus certain fees, like origination charges. Imagine you’re comparing two five-year, $10,000 loans. One has a 12% rate and zero fees. The other has a 9% rate and 7% in origination charges. The APR for the first loan is 12%. The APR for the second loan is 12.15%. When APRs are that close, you might prefer the loan with lower upfront fees. Make sure to compare APRs for loans with the same term length.
APRs above 36% are widely considered to be predatory, so avoid these lenders. That includes payday and no-credit-check loans, or any other brutally high APR products.
How to get approved for a personal loan with bad credit
Approval with bad credit is harder than with a high score, but not impossible. In addition to choosing secured loans or adding someone to the application, these moves could improve your ability to get approved:
- Lower your debt-to-income ratio. Your debt-to-income (DTI) ratio is all your monthly debt payments divided by your gross monthly income. Pay down a balance or add more verifiable income, and that ratio moves in your favor. Many lenders cap DTI at 43% to 50%.
- Borrow the bare minimum. The DTI calculation the lender makes includes the new loan payment. Borrow as little as possible to reduce the DTI impact (and the lender's risk).
- Prequalify before you apply. Most lenders let you check your likely rate with a soft credit inquiry. A soft inquiry doesn't affect your credit score. This isn’t a guarantee you’ll be approved if you apply, but it can be a good sign.
Alternatives if a personal loan isn't the right fit
A personal loan isn't the only path, and for some situations it isn't the best one. A few alternatives are worth knowing:
- A payday alternative loan, or PAL. Federal credit unions offer these small-dollar loans as a safer substitute for payday loans. Amounts run from $200 to $1,000, terms last one to six months, and the application fee is capped at $20. You can take out up to three in a six-month stretch, and you need to have been a credit union member for at least one month.
- A secured credit card. If your real goal is rebuilding credit rather than borrowing a lump sum, a secured credit card could cost you less and be easier to get approved for.
- Credit counseling and a DMP. If you have multiple debts and steady income, a debt management plan (DMP) from a credit counseling agency could help. You make one payment to the agency, which pays your creditors, and you could even get lower interest rates. These plans typically require closing your cards, though.
Skip payday and car-title storefront loans. Their triple-digit rates are the trap a personal loan helps you avoid, not a backup to fall back on.
Bills Action Plan
- Check your credit score. Focus on lenders that work with borrowers in your score range.
- Prequalify with two or three lenders that use a soft inquiry to give you a quote.
- Compare the full cost, not just the monthly payment. Weigh the APR, the origination fee, and the total you'll repay. Walk away from anything advertising guaranteed approval or an APR above 36%.
This article is for general education. Loan terms, rates, and fees are accurate as of the dates noted and could change. Confirm current details with lenders before you apply. Consider more than one lender to find the best fit.
What is the easiest personal loan to get with bad credit?
The most accessible loans often come from lenders that weigh your income and history rather than your score alone, such as Upstart or OneMain. Credit unions may also have more flexible credit requirements for members. Prequalifying with a soft credit check lets you see likely offers without affecting your score. No lender can promise approval, so compare a few.
Can I get a personal loan with a 500 credit score?
Yes, with the right lender. A 500 credit score makes borrowing harder, and your rate will likely sit near the high end. Some lenders look at your income and employment instead of your score alone, and a secured option or a co-applicant could improve your odds.
Will checking my rate hurt my credit score?
No, as long as the lender uses a soft credit inquiry. A soft inquiry doesn't affect your credit score, and most prequalifications use one. Make sure the prequalification application says it generates a soft inquiry or that checking your rate won’t impact your score.
A formal application typically results in a hard credit inquiry, which drops a few points from your credit score for up to a year or two. It’s often best to only apply once you’ve compared offers from multiple lenders.
How much can I borrow with bad credit?
Offers from bad credit lenders run from a few hundred dollars up to tens of thousands. The amount you're offered depends on the lender, your income, your assets, and your credit profile. A lower score usually means a smaller offer, though a secured loan may let you borrow more.