Updated May 2026
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Finding a personal loan with bad credit can feel overwhelming, but there are legitimate lenders who specialize in working with borrowers who have less-than-perfect credit scores. Whether you need funds for an emergency, debt consolidation, or a major purchase, this guide covers the best options available in 2026.
Can You Get a Personal Loan with Bad Credit?
Yes. While having a low credit score limits your options and typically results in higher interest rates, many lenders have programs specifically designed for borrowers with credit scores below 670. Some lenders accept scores as low as 300-580.
What Is Considered Bad Credit?
| Credit Score Range | Rating |
|---|---|
| 800 – 850 | Exceptional |
| 740 – 799 | Very Good |
| 670 – 739 | Good |
| 580 – 669 | Fair |
| 300 – 579 | Poor (Bad Credit) |
Top Personal Loan Options for Bad Credit
1. Upgrade
- Minimum Credit Score: 580
- Loan Amounts: $1,000 – $50,000
- APR: 9.99% – 35.99%
- Best For: Fair credit borrowers needing flexible terms
Upgrade stands out for accepting scores as low as 580 and offering terms up to 84 months. They also allow co-borrowers, which can improve approval chances.
2. LendingClub
- Minimum Credit Score: 600
- Loan Amounts: $1,000 – $40,000
- APR: 9.57% – 35.99%
- Best For: Debt consolidation with direct creditor payment
3. Avant
- Minimum Credit Score: 580
- Loan Amounts: $2,000 – $35,000
- APR: 9.95% – 35.99%
- Best For: Quick funding (as fast as next business day)
4. OneMain Financial
- Minimum Credit Score: No minimum stated
- Loan Amounts: $1,500 – $20,000
- APR: 18% – 35.99%
- Best For: Borrowers with very low scores who can offer collateral
OneMain Financial is unique in offering both secured and unsecured personal loans. Secured loans require collateral (like a vehicle) but may be easier to qualify for.
5. Universal Credit
- Minimum Credit Score: 560
- Loan Amounts: $1,000 – $50,000
- APR: 11.69% – 35.99%
- Best For: Borrowers with very low credit scores
What to Expect with Bad Credit Loans
Borrowing with bad credit comes with trade-offs you should understand:
- Higher interest rates: Expect APRs between 20% – 36% for scores under 600
- Lower loan amounts: Lenders may limit how much you can borrow
- Origination fees: Many bad credit lenders charge 1% – 10% of the loan amount
- Shorter repayment terms: Some lenders restrict terms for higher-risk borrowers
- Collateral may be required: Secured loans may be the only option for very low scores
How to Improve Your Chances of Approval
- Check your credit report for errors. Dispute any inaccurate negative items — even small corrections can boost your score.
- Reduce existing debt. Paying down credit card balances improves your debt-to-income ratio.
- Add a co-signer or co-borrower. A creditworthy co-signer can significantly improve your approval odds and interest rate.
- Show stable income. Lenders want to see consistent, verifiable income.
- Start with pre-qualification. Most online lenders let you check rates with a soft credit inquiry.
- Consider a secured loan. Offering collateral reduces the lender’s risk and improves your chances.
Bad Credit Loan Comparison
| Lender | Min. Score | Loan Range | APR | Origination Fee |
|---|---|---|---|---|
| Upgrade | 580 | $1K – $50K | 9.99% – 35.99% | 1.85% – 9.99% |
| LendingClub | 600 | $1K – $40K | 9.57% – 35.99% | 3% – 8% |
| Avant | 580 | $2K – $35K | 9.95% – 35.99% | Up to 4.75% |
| OneMain | None stated | $1.5K – $20K | 18% – 35.99% | Varies |
| Universal Credit | 560 | $1K – $50K | 11.69% – 35.99% | 5.25% – 9.99% |
Alternatives to Personal Loans for Bad Credit
- Secured Credit Cards: Build credit with a small deposit and responsible usage
- Credit Union Loans: Local credit unions often have more flexible lending criteria
- Paycheck Advance Apps: For small, short-term needs (Earnin, Dave, Brigit)
- 401(k) Loans: Borrow from your retirement savings (last resort)
Red Flags to Avoid
When seeking bad credit loans, watch out for:
- Guaranteed approval claims: No legitimate lender guarantees approval
- Upfront fees before approval: Legitimate lenders deduct fees from loan proceeds, not before
- No credit check promises: Responsible lenders always assess your ability to repay
- Extremely high APRs: Avoid payday loans with APRs exceeding 400%
Frequently Asked Questions
What is the easiest personal loan to get with bad credit?
OneMain Financial and Universal Credit tend to have the most flexible requirements, with OneMain offering secured loan options for borrowers with very low scores.
Can I get a $5,000 loan with bad credit?
Yes. Several lenders, including Upgrade and Avant, offer loans starting at $1,000-$2,000 to borrowers with credit scores as low as 580.
Will a personal loan hurt my credit score?
The application will cause a small, temporary dip due to the hard inquiry. However, making on-time payments on the loan can actually improve your credit score over time.
Bottom Line
Having bad credit doesn’t mean you’re out of options. Multiple legitimate lenders specialize in serving borrowers with lower credit scores. The key is to compare offers, understand the true cost of borrowing (including fees), and use the loan responsibly. Explore all your personal loan options and consider debt relief strategies to find the best path forward.
Disclaimer: This article is for informational purposes only. We are not a lender and do not guarantee approval. Rates, terms, and availability vary by lender and are subject to change.