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Having bad credit doesn’t mean you can’t get a personal loan. While borrowers with lower credit scores typically face higher interest rates, several online lenders specialize in working with people who have credit scores below 670. These lenders look beyond just your credit score, considering factors like income, employment history, and education.
A personal loan can actually help rebuild your credit when managed responsibly. By making on-time payments, you can gradually improve your credit score over time. Below are some of the best lenders that offer personal loans to borrowers with bad or fair credit.
Let’s get the hard truth out of the way: a FICO score below 580 puts you in the “bad credit” category, and roughly 14% of American adults are right there with you. It doesn’t mean you can’t get a personal loan. It means the loan will cost more, and you’ll have fewer lenders competing for your business. That’s the trade-off — and understanding it upfront prevents nasty surprises at signing.
The average personal loan rate sits around 12.26% as of March 2026. With bad credit, you’re looking at 25-36% APR from legitimate lenders. On a $10,000 loan over 36 months, the difference between 12% and 30% is roughly $3,200 in additional interest — real money that goes to the lender instead of into your goals. The math is brutal, but it’s still dramatically better than a payday loan at 400% APR or a credit card cash advance at 25%+ with no fixed payoff timeline.
Here’s what’s changed in the last few years: lenders like Upstart have built AI underwriting models that look beyond your three-digit score. They evaluate your education, employment trajectory, income trends, and banking behavior. A 560-credit-score borrower with a stable nursing job and consistent direct deposits looks very different to Upstart’s algorithm than a 560-score borrower with spotty employment and frequent overdrafts — even though traditional lenders treat them identically. If your score doesn’t reflect your actual financial reliability, these alternative underwriters may give you a better deal.
Checking your credit report for errors before applying is the single fastest way to improve your odds — roughly 1 in 5 reports contain a mistake.
Upstart is the standout for borrowers whose credit score doesn’t tell the whole story. There’s no minimum credit score requirement — Upstart has funded loans for borrowers with scores in the 300s. The AI model considers 1,600+ data points including your degree, field of study, job history, and income trajectory. Rates run 7.80%-35.99% with loans from $1,000-$75,000. The origination fee (0-12%) varies widely. For recent graduates with limited credit history but strong employment, Upstart often delivers rates that are 5-10% lower than what a traditional lender would offer on score alone.
Upgrade is the most versatile bad-credit lender. Minimum score of 580, loans from $1,000-$50,000, terms up to 84 months, and a stack of rate discounts: autopay saves 0.5%, direct pay to creditors saves another fraction, and secured options (car or home fixtures as collateral) can push rates even lower. APRs run 7.74%-35.99%. The origination fee (1.85%-9.99%) gets deducted from your loan proceeds. Upgrade also provides free credit monitoring with weekly score updates — genuinely useful for borrowers rebuilding their profiles.
Avant has served over 2 million borrowers since 2012, with a focus on the 580-700 credit range where most “bad credit” applicants fall. Loans from $2,000-$35,000 with rates from 9.95%-35.99% and terms of 24-60 months. Avant’s application is straightforward, funding can happen as soon as the next business day, and the late fee ($25) is modest compared to competitors. The origination fee runs up to 4.75%. Avant doesn’t offer as many rate discounts as Upgrade, but approval rates for fair-to-poor-credit borrowers tend to be higher.
OneMain Financial is the brick-and-mortar option for borrowers who want — or need — face-to-face service. With 1,300+ branches nationwide, you can walk in, sit with a loan specialist, and discuss your situation. OneMain offers both secured and unsecured loans from $1,500-$20,000, and they’re one of the few lenders that will work with scores well below 580 if you can provide collateral. Rates run 18%-35.99%, which is on the higher end, but OneMain’s willingness to consider your full financial picture (not just the score) makes them a legitimate option when online lenders say no.
Best Egg rounds out the list for borrowers at the higher end of “bad credit” (560-620). Rates from 8.99%-35.99%, loans from $2,000-$50,000, and a streamlined application that delivers decisions quickly. Best Egg’s secured loan option — pledging a vehicle — can unlock lower rates for borrowers who own their car outright. Same-day funding is available, and Best Egg reports to all three credit bureaus, so on-time payments actively rebuild your score.
| Lender | APR Range | Loan Amount | Min. Score | Orig. Fee | Best For |
| Upstart | 7.80%-35.99% | $1K-$75K | None stated | 0-12% | Thin files, new grads |
| Upgrade | 7.74%-35.99% | $1K-$50K | 580 | 1.85%-9.99% | Rate discounts, flexibility |
| Avant | 9.95%-35.99% | $2K-$35K | 580 | Up to 4.75% | Fast approval, simple app |
| OneMain Financial | 18%-35.99% | $1.5K-$20K | No min. (secured) | Varies | In-person, very low scores |
| Best Egg | 8.99%-35.99% | $2K-$50K | 560 | 0.99%-8.99% | Secured option, same-day |
Rates as of March 2026. APRs for bad-credit borrowers will typically be in the upper range. Your actual rate depends on credit, income, DTI, and lender.
The numbers are worth spelling out because most people underestimate the gap. Take a $10,000 loan with a 36-month term. At 10% APR (good credit), your monthly payment is $323 and total interest is $1,616. At 25% APR (bad credit), that same loan costs $400/month and $4,382 in total interest. At 35% (the legal ceiling for most legitimate lenders), it’s $448/month and $6,138 in interest. You’re paying 60% more for the same money.
Origination fees add another layer. Upstart’s fee can hit 12% — on a $10,000 loan, that’s $1,200 deducted before you see a dime, meaning you receive $8,800 but repay $10,000 plus interest. When comparing lenders, calculate the total cost including fees, not just the monthly payment. A lender offering 28% APR with no origination fee may cost less overall than one at 24% with an 8% origination fee.
Here’s the silver lining: every on-time payment improves your credit score. After 12-18 months of consistent payments, many borrowers move from “bad” to “fair” credit territory (580-669). At that point, you can refinance into a lower-rate loan and cut your remaining interest costs significantly. Think of the high-rate loan as a temporary bridge — not a permanent sentence. The key is making sure you can afford the payments during that bridge period.
Pre-qualifying with multiple lenders uses a soft credit check — it won’t hurt your score, and it lets you compare real offers side by side.
Income is your strongest card. When your credit score is weak, lenders lean heavily on income verification. A steady paycheck of $3,000+/month with 2+ years at the same employer signals stability that partially offsets score concerns. Have your two most recent pay stubs, last two years of tax returns, and recent bank statements ready before you apply. Some lenders — particularly Upstart — also consider your employment trajectory: a recent promotion or move into a higher-paying field helps.
Keep the loan amount modest. Requesting $5,000 when your score is 550 is far more likely to succeed than asking for $25,000. Lenders calculate the risk in dollar terms, not just percentages. A smaller loan means less exposure for the lender and a better chance of approval. If you need a larger amount, consider whether you can accomplish your goal in stages — borrow $5,000 now, repay it on time for 12 months to boost your score, then borrow the additional amount at a better rate.
Debt-to-income ratio below 40%. Add up all your monthly debt payments (rent/mortgage, car payment, credit card minimums, student loans, the proposed new loan payment) and divide by your gross monthly income. Most bad-credit lenders want this number below 40-45%. If your DTI is higher, paying down even one credit card before applying can make the difference between approval and denial.
Consider a co-signer or collateral. A co-signer with good credit (700+) can dramatically improve your rate — sometimes by 10+ percentage points. If you don’t have a willing co-signer, secured loan options from Upgrade (car collateral), OneMain Financial (various assets), or your local credit union (savings-secured) provide an alternative path. The collateral reduces the lender’s risk, which translates directly into a lower rate for you.
Payday loans. The average payday loan charges $15-$30 per $100 borrowed for a two-week term. That translates to an APR of 390%-780%. A $500 payday loan that takes 3 months to repay can cost $500-$750 in fees alone — you’d pay back $1,000-$1,250 to borrow $500. The Consumer Financial Protection Bureau has documented that 80% of payday loans are rolled over within 14 days, creating a debt cycle that’s nearly impossible to escape. Just don’t.
Any loan with APR above 36%. Legitimate personal loan lenders cap rates at 36% APR — that’s the threshold the CFPB and most consumer advocates use to distinguish reasonable lending from predatory products. If someone offers you 40%, 50%, or triple-digit rates, walk away. The temporary relief isn’t worth the long-term damage. Every state has different usury laws, so check your state’s cap as well.
“Guaranteed approval” offers. No legitimate lender guarantees approval without checking your credit. That phrase in marketing materials is a red flag for advance-fee scams (pay $200 upfront to “process” your loan, then the company disappears) or bait-and-switch tactics where the “guaranteed” loan comes with terms that make payday lending look reasonable. Real pre-qualification uses a soft credit check and gives you actual rates — it never asks for money upfront.
Car title loans. Title lenders hold your vehicle as collateral for short-term loans at 100-300% APR. If you miss a payment, they repossess your car — and losing your transportation usually means losing your job, which makes repaying any other debt nearly impossible. If you need your car to get to work, your car is too important to use as loan collateral with a predatory lender.
Check your credit report for errors (free, immediate impact). One in five credit reports contains a material error, according to FTC research. Dispute any inaccuracies through AnnualCreditReport.com — if a paid collection is still showing as unpaid, or an account that isn’t yours appears on your report, getting it corrected can boost your score by 20-100 points. Disputes typically resolve within 30 days.
Pay credit cards below 30% utilization (1-2 months). Credit utilization — how much of your available credit you’re using — accounts for about 30% of your FICO score. If you have a $5,000 credit limit and a $4,500 balance (90% utilization), paying it down to $1,500 (30%) can improve your score by 30-50 points within one billing cycle. This is the single fastest lever for most bad-credit borrowers.
Become an authorized user (1-3 months). If a family member with excellent credit adds you as an authorized user on a long-standing, low-balance credit card, their positive payment history can appear on your credit report. You don’t even need to use the card. The age of the account, payment history, and low utilization all contribute to your score. This works best when the primary cardholder has a 10+ year account with a perfect payment record.
Set up a credit-builder loan (6-12 months). Self Financial and many credit unions offer credit-builder loans where your payments go into a savings account, and you receive the funds after completing all payments. The monthly payments get reported to credit bureaus, building a positive payment history over 6-24 months. It’s a longer timeline but creates a genuine, earned improvement in your credit profile.
Yes, but options are limited. Upstart has no minimum score requirement and has funded loans for borrowers in the 300s. OneMain Financial will consider very low scores with collateral. Expect APRs of 30-36% at this score level. Pre-qualifying with multiple lenders is essential to find the best available terms.
There’s no universal minimum. Upstart accepts all scores. OneMain Financial works with very low scores on secured loans. Most mainstream online lenders (Upgrade, Avant, Best Egg) require 560-580 minimum. Below 550, you’ll likely need collateral, a co-signer, or a credit union relationship.
Pre-qualification uses a soft credit check that doesn’t affect your score. The full application triggers a hard inquiry that may lower your score by 5-10 points temporarily. Multiple hard inquiries for the same loan type within 14 days typically count as a single inquiry under FICO scoring models.
Add a co-signer with good credit, offer collateral for a secured loan, reduce your debt-to-income ratio, or improve your credit score before applying. Even a 20-point improvement from 570 to 590 can move you from “denied” to “approved” with some lenders, or lower your rate by several percentage points.
It depends on urgency. If you need funds immediately for an emergency, a bad-credit personal loan at 25-35% is still far cheaper than payday loans or carrying credit card debt indefinitely. If you can wait 3-6 months, improving your score from 550 to 640 through utilization reduction and error disputes could save you thousands in interest.
Rates and terms are subject to change. This is not financial advice. All information is for educational and comparison purposes only. Verify current rates directly with each lender before committing to any loan agreement.
Upgrade is one of the most accessible lenders for bad credit borrowers. Starting at just $1,000, Upgrade accepts credit scores as low as 580 and reports to all three credit bureaus, helping you rebuild your credit with on-time payments. Funds are typically deposited within one business day.
OneMain Financial is a strong option for bad credit borrowers because it has no published minimum credit score and offers both secured and unsecured loans. With 1,500+ branches nationwide, you can apply in person for a more personalized experience.
Avant specializes in lending to borrowers with credit scores between 580 and 700. With a straightforward online application and next-day funding, Avant makes the borrowing process simple. Late fees are capped at $25 and there are no prepayment penalties.
LendingPoint looks at your complete financial picture, not just your credit score. With loans up to $36,500 and terms up to 72 months, LendingPoint is designed for borrowers with credit scores in the 580–700 range. Reports to all three credit bureaus.
Prosper is a peer-to-peer lending marketplace where individual investors fund your loan. This can mean approvals when traditional lenders say no. With loans from $2,000 to $50,000 and competitive rates for fair credit borrowers.
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