Best Personal Loans for Bad Credit
Introduction
Having bad credit doesn’t mean you’re out of options. Whether you’re dealing with unexpected medical bills, car repairs, or debt consolidation, finding the best personal loans for bad credit is absolutely possible in 2026 — you just need to know where to look.
In this guide, we break down the top lenders, what to expect in terms of rates and fees, and how to improve your chances of getting approved even with a low credit score.
What Is Considered “Bad Credit”?
Most lenders define bad credit as a FICO score below 580. Here’s a quick breakdown:
| Credit Score Range | Rating |
|---|---|
| 800–850 | Exceptional |
| 740–799 | Very Good |
| 670–739 | Good |
| 580–669 | Fair |
| 300–579 | Poor / Bad Credit |
If your score falls below 580 — or you have limited credit history — you’ll typically face higher interest rates and stricter requirements. But several lenders specialize in exactly this situation.
What to Look for in a Bad Credit Personal Loan
Before applying, evaluate each lender on these key factors:
- APR range — Bad credit loans typically carry 18%–36% APR. Avoid lenders charging above 36%
- Loan amounts — Most range from $500 to $10,000 for bad credit borrowers
- Repayment terms — 12 to 60 months is standard
- Origination fees — Some lenders charge 1%–8% upfront
- Soft vs. hard credit check — Always check if pre-qualification uses a soft pull
- Funding speed — Many online lenders fund within 1–3 business days
7 Best Personal Loans for Bad Credit in 2026
1. Upstart
Best for: Thin credit history or no credit
Upstart is one of the most innovative lenders for bad credit borrowers. Instead of relying solely on your credit score, it uses AI to factor in your education, employment history, and income — making it ideal for people with limited credit files.
Key Details:
- Minimum credit score: 300
- APR range: 7.40%–35.99%
- Loan amounts: $1,000–$50,000
- Repayment terms: 36 or 60 months
- Origination fee: 0%–12%
- Funding: As fast as 1 business day
Best for: Recent graduates, young borrowers, or anyone with a thin credit file.
2. LendingPoint
Best for: Fair to bad credit with steady income
LendingPoint focuses on your overall financial picture rather than just your score. If you have a stable income and a score in the 580–600 range, approval odds are solid.
Key Details:
- Minimum credit score: 585
- APR range: 7.99%–35.99%
- Loan amounts: $1,000–$36,500
- Repayment terms: 24–72 months
- Origination fee: 0%–8%
- Funding: As fast as next business day
Best for: Borrowers with fair credit who need flexible repayment terms.
3. Avant
Best for: Bad credit borrowers who need mid-size loans
Avant has been a go-to lender for bad credit personal loans for years. It accepts scores as low as 550 and offers a straightforward online application process.
Key Details:
- Minimum credit score: 550
- APR range: 9.95%–35.99%
- Loan amounts: $2,000–$35,000
- Repayment terms: 24–60 months
- Administration fee: Up to 9.99%
- Funding: As fast as next business day
Best for: Borrowers in the 550–600 score range who need $2,000–$10,000.
4. OneMain Financial
Best for: No minimum credit score requirement
OneMain Financial is one of the few major lenders with no stated minimum credit score. It also offers secured loan options, which can help you qualify with a lower rate by using collateral like a car.
Key Details:
- Minimum credit score: None stated
- APR range: 18.00%–35.99%
- Loan amounts: $1,500–$20,000
- Repayment terms: 24–60 months
- Origination fee: Flat fee or 1%–10%
- Funding: Same or next business day
Best for: Borrowers with very low scores who need a secured loan option.
5. Upgrade
Best for: Debt consolidation with bad credit
Upgrade is a strong choice if you’re looking to consolidate high-interest debt. It offers direct payment to creditors and a wide range of loan amounts.
Key Details:
- Minimum credit score: 560
- APR range: 9.99%–35.99%
- Loan amounts: $1,000–$50,000
- Repayment terms: 24–84 months
- Origination fee: 1.85%–9.99%
- Funding: Within 4 business days
Best for: Consolidating credit card debt or multiple high-interest loans.
6. LendingClub
Best for: Joint loan applications
LendingClub allows co-borrowers, which is a major advantage for bad credit applicants. Adding a co-borrower with better credit can significantly improve your rate and approval chances.
Key Details:
- Minimum credit score: 600
- APR range: 8.98%–35.99%
- Loan amounts: $1,000–$40,000
- Repayment terms: 24–60 months
- Origination fee: 3%–8%
- Funding: Within a few days
Best for: Borrowers who have a creditworthy co-borrower available.
7. OppLoans (OppFi)
Best for: Emergency loans with very bad credit
OppLoans is designed for borrowers who can’t qualify elsewhere. Approval rates are very high, but rates are significantly higher than other lenders on this list — use only for emergencies.
Key Details:
- Minimum credit score: None (no credit check)
- APR range: 160%–179% (varies by state)
- Loan amounts: $500–$4,000
- Repayment terms: 9–18 months
- Origination fee: None
- Funding: As fast as same business day
Best for: True emergency situations when no other option is available. Not recommended for non-urgent needs.
Quick Comparison Table
| Lender | Min. Score | APR Range | Loan Amount | Best For |
|---|---|---|---|---|
| Upstart | 300 | 7.40%–35.99% | $1K–$50K | Thin credit history |
| LendingPoint | 585 | 7.99%–35.99% | $1K–$36.5K | Steady income |
| Avant | 550 | 9.95%–35.99% | $2K–$35K | Mid-size loans |
| OneMain Financial | None | 18%–35.99% | $1.5K–$20K | Very low scores |
| Upgrade | 560 | 9.99%–35.99% | $1K–$50K | Debt consolidation |
| LendingClub | 600 | 8.98%–35.99% | $1K–$40K | Joint applications |
| OppLoans | None | 160%–179% | $500–$4K | Emergency only |
How to Improve Your Chances of Approval
Even with bad credit, these steps can boost your approval odds:
1. Check your credit report first Dispute any errors before applying — a quick fix could raise your score enough to qualify for better rates.
2. Apply with a co-signer or co-borrower A creditworthy co-applicant dramatically improves approval odds and can lower your APR.
3. Consider a secured loan Offering collateral (like a car or savings account) reduces lender risk and often results in lower rates.
4. Show proof of stable income Lenders care as much about your ability to repay as they do your score. Consistent income can offset a low score.
5. Pre-qualify with multiple lenders Most lenders offer soft-pull pre-qualification — check multiple offers without hurting your score.
Risks to Watch Out For
Not all bad credit lenders are trustworthy. Watch for these red flags:
- APR above 36% — Generally considered predatory territory
- Guaranteed approval claims — Legitimate lenders always evaluate your application
- Upfront payment requests — Never pay fees before receiving a loan
- No physical address or licensing info — Always verify lender legitimacy at your state’s financial regulator website
FAQ: Best Personal Loans for Bad Credit
Q: Can I get a personal loan with a 500 credit score? Yes. Lenders like Upstart, OneMain Financial, and OppLoans accept applicants with scores well below 580.
Q: What is the easiest personal loan to get with bad credit? OppLoans and OneMain Financial have the most flexible credit requirements, though OppLoans carries very high APRs.
Q: Will applying for a personal loan hurt my credit score? Pre-qualification uses a soft pull and won’t affect your score. A formal application triggers a hard inquiry, which may temporarily lower your score by 5–10 points.
Q: How much can I borrow with bad credit? Most bad credit borrowers qualify for $500–$10,000, though some lenders offer up to $50,000 depending on income and other factors.
Q: Are there personal loans for bad credit with no origination fee? Yes — Upstart and OppLoans offer options with no origination fee, though Upstart’s fee can be as high as 12% for some borrowers.
Final Thoughts
Finding the best personal loans for bad credit in 2026 comes down to matching your situation to the right lender. If your score is very low, start with Upstart or OneMain Financial. If you need debt consolidation, Upgrade is a strong pick. And if it’s a true emergency with no other options, OppLoans can help — just be mindful of the high rates.
Always pre-qualify with multiple lenders, compare APRs carefully, and borrow only what you can realistically repay.
Internal linking suggestions:
- “How to Improve Your Credit Score Fast (2026)”
- “Best Credit Cards for Beginners in the US (2026)”
- “Debt Consolidation Loans: How They Work”
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- “bad credit loan lender comparison chart”
- “how to get approved for a personal loan with bad credit”
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