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Can You Get a Personal Loan with Bad Credit?
Yes. Getting a personal loan with bad credit is possible. Many lenders now look beyond your credit score. They also consider your income, employment, and ability to repay.
Bad credit usually means a score below 580. Expect higher interest rates. But if you need money for an emergency, debt consolidation, or a major expense, there are legitimate options available.
Best Personal Loans for Bad Credit in 2026
1. Avant: Best Overall for Bad Credit
Min. credit score: 550
Loan amounts: $2,000 to $35,000
APR range: 9.95% to 35.99%
Loan terms: 24 to 60 months
Avant is one of the best lenders for borrowers with fair to poor credit. They accept scores as low as 550 and fund loans as fast as the next business day. Avant charges an administration fee of up to 9.99%, so factor that into the total cost.
Read our full Avant Personal Loan Review 2026 for a deeper look.
2. Upstart: Best for Thin Credit Files
Min. credit score: 300 (varies by state)
Loan amounts: $1,000 to $50,000
APR range: 7.80% to 35.99%
Loan terms: 36 or 60 months
Upstart uses AI to evaluate borrowers. It looks at your education, job history, and other factors beyond your credit score. This makes it one of the best options if you have a limited credit history. Rates can be high for bad credit borrowers, but approval rates are strong.
Read our full Upstart Personal Loan Review 2026 for details.
3. OneMain Financial: Best for In-Person Service
Min. credit score: None specified
Loan amounts: $1,500 to $20,000
APR range: 18.00% to 35.99%
Loan terms: 24 to 60 months
OneMain Financial has hundreds of branch locations. If you prefer to talk to someone in person, OneMain is a good pick. They work with very low credit scores and also offer secured loan options if you want to put up a vehicle as collateral to get a better rate.
4. LendingPoint: Best for Scores Around 585
Min. credit score: 585
Loan amounts: $2,000 to $36,500
APR range: 7.99% to 35.99%
Loan terms: 24 to 72 months
LendingPoint looks at cash flow and recent financial trends, not just your score. If your score has been improving, they may give you better terms than expected. Fast funding is also a plus, with most loans funded within 1 business day.
5. Universal Credit: Best for Debt Consolidation with Bad Credit
Min. credit score: 560
Loan amounts: $1,000 to $50,000
APR range: 11.69% to 35.99%
Loan terms: 36 to 60 months
Universal Credit specializes in debt consolidation loans for borrowers with poor to fair credit. They can pay your creditors directly, making it a solid choice if you are trying to clean up multiple debts.
Comparison Table
| Lender | Min. Score | Loan Range | Max APR |
|---|---|---|---|
| Avant | 550 | $2,000 to $35,000 | 35.99% |
| Upstart | 300 | $1,000 to $50,000 | 35.99% |
| OneMain Financial | None listed | $1,500 to $20,000 | 35.99% |
| LendingPoint | 585 | $2,000 to $36,500 | 35.99% |
| Universal Credit | 560 | $1,000 to $50,000 | 35.99% |
What to Expect with a 580 Credit Score
A 580 score puts you in the fair credit range. Getting approved is possible with the right lender. But here is what to expect.
Higher interest rates. You will pay more than a borrower with good credit. APRs for borrowers in the 550 to 620 range often fall between 25% and 36%.
Smaller loan amounts. Lenders may approve you for less than you requested. Start with the amount you truly need, not the max you can borrow.
Origination fees. Many bad credit lenders charge origination fees of 1% to 10% of the loan amount. This fee is taken from your loan proceeds before you receive the funds.
To learn more about what lenders want from borrowers at this score level, read our guide: Can You Get a Personal Loan with a 580 Credit Score?
How to Compare Bad Credit Personal Loans
Do not just look at the monthly payment. Here are the numbers that matter most.
APR (Annual Percentage Rate): This includes the interest rate plus any fees. Always compare APR, not just the interest rate.
Origination fee: Charged upfront, often deducted from the loan. A $5,000 loan with a 5% fee means you receive $4,750 but owe $5,000.
Prepayment penalty: Some lenders charge a fee if you pay off early. Look for loans with no prepayment penalty.
Funding speed: If you need money fast, look for lenders that fund same day or next business day.
How to Improve Your Approval Odds
Add a cosigner. A cosigner with good credit can get you approved and lower your rate. They are equally responsible for the loan if you do not pay.
Apply for a secured loan. Using a car or savings account as collateral reduces lender risk. This often means lower rates and easier approval.
Borrow only what you need. Smaller loan amounts are easier to approve. Do not request more than you actually need.
Check your report for errors first. Errors on your credit report can make your score look worse than it is. Dispute any mistakes before you apply.
Prequalify before applying. Most lenders offer a soft pull prequalification. This lets you check likely rates without hurting your credit score.
Alternatives to Bad Credit Personal Loans
If you cannot get approved or the rates are too high, consider these options.
Credit union loans. Credit unions often offer more flexible terms for members with poor credit. They are nonprofit and tend to charge lower rates than traditional banks.
Peer-to-peer lending. Platforms like Prosper connect borrowers with individual investors who fund loans. Standards can be more flexible.
Family or friend loan. Borrowing from someone you trust can work, but put the agreement in writing to protect the relationship.
Paycheck advance apps. For very small amounts under $500, apps like Earnin or Dave can bridge a gap without a hard credit pull.
Frequently Asked Questions
Can I get a personal loan with a 580 credit score?
Yes. Several lenders including Avant, Upstart, and OneMain Financial accept applicants with scores as low as 580 or even lower. Rates will be higher, but approval is possible.
What is the easiest personal loan to get with bad credit?
OneMain Financial and Avant are among the easiest for bad credit borrowers. They look at more than just your credit score and have physical branches for in-person support.
How much can I borrow with bad credit?
Most bad credit personal loans range from $1,000 to $10,000. Some lenders like Avant go up to $35,000 for qualified borrowers, even with fair credit.
Do bad credit personal loans require collateral?
Most personal loans are unsecured, meaning no collateral is required. However, secured personal loans are available and can get you better rates if you have an asset to use.
What APR should I expect with bad credit?
With a credit score below 580, expect APRs ranging from 20% to 36% or higher. The exact rate depends on your income, debt load, and the lender.
Rates as of May 2026.