A low credit score doesn’t automatically disqualify you from getting a personal loan — it just narrows your options and typically means paying a higher interest rate. The good news: several legitimate lenders specialize in borrowers with scores below 600 or limited credit history, offering funded loans within one to two business days.
This guide covers the best personal loans for bad credit in 2026, what to expect from rates and terms, and how to borrow responsibly when your credit is a work in progress.
Best Personal Loans for Bad Credit: Quick Comparison
| Lender | Min. Credit Score | APR Range | Loan Amounts | Term Length |
|---|---|---|---|---|
| Upstart | 300 (or no score) | 7.80%–35.99% | $1,000–$50,000 | 3–5 years |
| Avant | 580 | 9.95%–35.99% | $2,000–$35,000 | 2–5 years |
| LendingPoint | 600 | 7.99%–35.99% | $2,000–$36,500 | 2–6 years |
| OneMain Financial | None specified | 18.00%–35.99% | $1,500–$20,000 | 2–5 years |
| Universal Credit | 560 | 11.69%–35.99% | $1,000–$50,000 | 3–5 years |
| OppLoans | None | 160%–179% (installment) | $500–$4,000 | 9–18 months |
Top Picks in Detail
Upstart: Best for No Credit or Thin Credit File
Upstart uses an AI-based underwriting model that considers factors beyond credit score — including education, employment history, and income — which makes it one of the few lenders that can approve applicants with no credit score at all. Minimum FICO is 300 (if a score exists), but Upstart will also approve borrowers with no credit history.
Loan amounts go up to $50,000, and funds are often disbursed as fast as one business day after approval.
- Best for: Thin credit files, recent graduates, first-time borrowers
- Watch for: Origination fee of up to 12%
Avant: Best for Mid-Range Bad Credit (580–619)
Avant serves borrowers with scores in the 580–700 range. It offers a clear online application, fast funding, and a mobile app for account management. The administrative fee (origination fee equivalent) can be up to 4.75%.
- Best for: Borrowers rebuilding credit who want a reputable lender
- Watch for: Late fee of $25; returned payment fee of $15
LendingPoint: Best for Near-Prime Borrowers
LendingPoint works with borrowers starting at 600 and is particularly good if you have some recent negative marks on your report but steady income. The lender reports to all three credit bureaus, which helps you build credit over the life of the loan.
OneMain Financial: Best for Secured Loan Option
OneMain Financial is one of the few major personal loan lenders that offers secured loans (backed by a vehicle). Secured loans can lower your interest rate significantly even with poor credit. OneMain has physical branch locations across the US, which some borrowers prefer for in-person service.
- Best for: Borrowers willing to use a vehicle as collateral to access better rates
- Watch for: Rates start at 18%, which is high compared to prime lenders
Universal Credit: Best for Credit-Building Tools
Universal Credit (a subsidiary of Upgrade) accepts scores as low as 560 and includes credit monitoring and financial education tools as part of the service. You can see your credit score for free and get personalized tips for improving it.
OppLoans: Last Resort Option
OppLoans operates as a high-rate installment lender for borrowers who can’t qualify anywhere else. APRs of 160%–179% are extremely high — this is far more expensive than a payday loan alternative should be. Only consider OppLoans if you have an urgent, essential need and no other option, and pay it off as quickly as possible.
What to Watch for with Bad Credit Personal Loans
Origination Fees
Many lenders charge an origination fee (1%–12% of the loan amount) deducted upfront from your disbursement. A $10,000 loan with a 5% origination fee means you receive $9,500 but repay $10,000 plus interest. Always factor this into your cost comparison.
Predatory Lenders
Avoid any lender that requires upfront payment before disbursing funds, guarantees approval regardless of credit, or doesn’t report to credit bureaus. Legitimate lenders don’t charge application fees.
APR vs. Interest Rate
APR (Annual Percentage Rate) includes the interest rate plus fees, and is the most accurate cost comparison tool. Always compare APRs, not just advertised rates.
How to Improve Your Chances of Approval
- Add a co-signer: A creditworthy co-signer can unlock significantly lower rates and higher loan amounts.
- Offer collateral: Secured loans reduce lender risk and often come with lower rates.
- Show strong income: Even with a low score, consistent income above the lender’s threshold improves your application.
- Pre-qualify first: Most lenders offer a soft credit pull pre-qualification that shows your estimated rate without affecting your score.
Will a Personal Loan Help Build My Credit?
Yes — if you make on-time payments. Lenders that report to all three bureaus (Equifax, Experian, TransUnion) will show your positive payment history, which is the single most important factor in your credit score. Adding an installment loan to a file with only credit cards also diversifies your credit mix.
Bottom Line
Upstart is the best starting point if you have no credit or a very low score. Avant and LendingPoint are strong for scores in the 580–620 range. OneMain Financial is worth considering if you’re willing to use a vehicle as collateral to access better rates. Avoid predatory high-rate lenders unless there is truly no other option — and if you do borrow at a high rate, pay the loan off as fast as possible to minimize total cost.