Having bad credit does not mean you cannot qualify for a personal loan. Several lenders specialize in borrowers with low credit scores, offering loans for debt consolidation, emergency expenses, and other financial needs. Here are the best personal loans for bad credit in 2026.
What Counts as Bad Credit?
Credit scores below 580 are generally considered bad credit by most lenders. Scores between 580 and 669 are fair credit. Borrowers with bad credit typically face higher interest rates and stricter terms, but many lenders still extend loans to this group.
Best Personal Loans for Bad Credit in 2026
Upstart
Upstart uses a non-traditional underwriting model that factors in education, employment history, and other variables beyond credit score. Minimum credit score requirement is 300 in most states, and the platform funds loans quickly — sometimes as fast as the next business day. APRs range from around 7% to 35.99%. This makes Upstart one of the most accessible personal loan options for borrowers with thin or poor credit histories.
Avant
Avant targets middle-credit borrowers and accepts applicants with credit scores as low as 580. Loan amounts range from $2,000 to $35,000 with terms of 24 to 60 months. APRs typically fall between 9.95% and 35.99%. Funding is fast, and the application process is straightforward.
LendingPoint
LendingPoint accepts borrowers with credit scores as low as 600 and focuses on overall financial picture rather than credit score alone. Loan amounts range from $2,000 to $36,500 with terms from 24 to 72 months. The lender charges an origination fee on some loans but is transparent about costs upfront.
OneMain Financial
OneMain Financial has no stated minimum credit score and offers both secured and unsecured personal loans. Secured loans (backed by collateral like a vehicle) may help borrowers with very low scores qualify for better terms. Loan amounts range from $1,500 to $20,000. OneMain has physical branches in 44 states, which some borrowers prefer over fully digital lenders.
Upgrade
Upgrade accepts borrowers with credit scores as low as 560 and offers loans from $1,000 to $50,000. The lender is particularly useful for debt consolidation, as it can pay creditors directly. APRs range from 9.99% to 35.99% and terms extend from 24 to 84 months.
How to Compare Bad Credit Personal Loans
When comparing personal loan options with bad credit, focus on:
- Annual percentage rate (APR): This is the true cost of borrowing, including fees
- Origination fees: Typically 1–10% of the loan amount, deducted before funding
- Loan term: Longer terms lower your monthly payment but cost more in total interest
- Minimum credit score requirement
- Funding speed: Some lenders fund within one business day; others take a week
How to Improve Your Chances of Approval
Even with bad credit, several steps can improve your approval odds and the terms you receive:
- Prequalify with multiple lenders using a soft credit pull (no impact on your score)
- Consider adding a co-signer with good credit to reduce your rate
- Apply for a secured personal loan if you have collateral
- Lower your debt-to-income ratio by paying down existing debt before applying
- Correct any errors on your credit report before applying
Alternatives to Personal Loans for Bad Credit
If loan rates are too high, consider alternatives such as borrowing from family or friends, using a credit union (which often has more flexible underwriting than banks), or using a secured credit card to rebuild credit before applying for a larger loan. Payday loans and payday alternative loans from credit unions are options for very small, short-term needs, though they carry their own cost considerations.
Bottom Line
Bad credit does not eliminate your personal loan options. Lenders like Upstart, Avant, LendingPoint, OneMain Financial, and Upgrade all serve borrowers with low credit scores. Compare APRs carefully, prequalify before formally applying, and borrow only what you can comfortably repay to avoid further credit damage.