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The Best Personal Loans for Bad Credit — Reviewed & Ranked
We tested 30+ lenders. These 5 actually approve borrowers with scores under 580 — with fair rates, no hidden fees, and fast funding.
In This Guide
Having a credit score below 580 doesn’t mean you’re out of options. It means you need to be more strategic about which lender you approach.
Most big banks will reject you. But a growing class of fintech lenders use alternative data — your income, employment history, education, and bank account patterns — to approve borrowers that traditional credit scores miss.
The catch: bad-credit loans carry higher APRs (typically 20–36%). The goal isn’t to find a cheap loan — it’s to find a fair one that gets you funded, then use it strategically to consolidate debt, cover an emergency, or start rebuilding your credit profile.
We reviewed 30+ lenders. Here are the 5 we’d actually recommend.
🏆 Top Picks at a Glance
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| Lender | Best For | Min Score | APR Range | Loan Amount |
|---|---|---|---|---|
| Upstart | No credit history / thin file | 300 | 7.4–35.99% | $1K–$50K |
| Upgrade | Fair credit (580–669) | 580 | 9.99–35.99% | $1K–$50K |
| Avant | Fast funding next-day | 550 | 9.95–35.99% | $2K–$35K |
| Big Buck Loans | Very bad credit (under 550) | None | 5.99–35.99% | $100–$5K |
| LendingTree | Comparing multiple offers | Varies | Varies by lender | $1K–$50K+ |
Upstart
AI-powered lending — looks beyond your credit score
✅ Pros
- No minimum credit score required
- Uses AI to assess income, education, job history
- Pre-qualify with soft pull (no credit impact)
- Fast funding — often next business day
- Accepts applicants with limited credit history
❌ Cons
- Origination fee up to 12% (deducted from loan)
- No joint applications or co-signers
- Only 3 or 5-year terms (no flexibility)
- High APR if profile is weak
Check Your Rate on Upstart — Takes 2 Minutes →
Soft pull only — checking rate does not affect your credit score
Upgrade
Flexible terms + free credit monitoring included
✅ Pros
- Accepts co-borrower to improve approval odds
- Longest terms available (up to 84 months)
- Free credit monitoring and credit health tools
- Autopay discount on APR
- Direct creditor payoff option for debt consolidation
❌ Cons
- Origination fee up to 9.99%
- APR on high end for low credit scores
- No same-day funding
No impact on credit score to check your rate
Avant
Fast approval, flexible eligibility, dedicated bad-credit focus
✅ Pros
- One of the lowest minimum credit scores (550)
- Next-business-day funding available
- No prepayment penalty
- Mobile app for account management
- Serves borrowers across most US states
❌ Cons
- Admin fee (equivalent to origination fee)
- Max loan $35K (lower than competitors)
- Not available in all states (check eligibility)
Soft credit check — no impact on your score
Big Buck Loans
No minimum credit score — lender network approach
✅ Pros
- No minimum credit score whatsoever
- Connects you with multiple lenders simultaneously
- Fast same-day decisions available
- Good for small emergency loans ($100–$5K)
- No cost to submit request
❌ Cons
- Smaller loan amounts (max $5K)
- Rates vary widely by lender in network
- You may receive multiple lender contacts
Check Your Options on Big Buck Loans →
Free to check — no obligation to accept any offer
LendingTree
Compare 300+ lenders with a single soft pull
✅ Pros
- See real rates from 300+ lenders in minutes
- One soft credit pull (no score impact)
- Includes lenders who accept bad credit
- Free loan comparison — no obligation
- Also compares home equity, auto, student loans
❌ Cons
- Expect multiple lender calls/emails after submitting
- Not a direct lender — connects to partners
- Some lenders require hard pull at application
Compare Rates on LendingTree — Free & Instant →
Single soft pull • See offers from 300+ lenders • No obligation
How to Qualify for a Personal Loan with Bad Credit
Bad credit makes lenders nervous — but it doesn’t have to be a dealbreaker. Here’s exactly what lenders look at and how to strengthen your application.
1. Know Your Actual Score Before You Apply
Don’t guess. Pull your free credit report from AnnualCreditReport.com (the official government-authorized site). Check all three bureaus — Equifax, Experian, and TransUnion — because different lenders pull different bureaus. Disputing errors can raise your score 20–50 points in 30–60 days.
2. Calculate Your Debt-to-Income Ratio (DTI)
Your DTI is the percentage of gross monthly income that goes to debt payments. Most lenders cap it at 43% — some bad-credit lenders go up to 50%. Formula: Total monthly debt payments ÷ Gross monthly income × 100. If your DTI is above 50%, focus on paying down one card before applying.
3. Add a Co-Borrower or Co-Signer
This is the single most powerful move. A co-signer with good credit (700+) can drop your APR by 5–15 percentage points. Lenders like Upgrade and LendingTree explicitly support co-borrowers. Note: the co-signer is equally responsible for repayment.
4. Apply for the Right Amount
Don’t borrow more than you need. A smaller loan is easier to approve and carries less risk for the lender. If you need $8,000, don’t apply for $15,000 “just in case.”
5. Use Loan Funds Strategically
If you’re consolidating credit card debt, some lenders (like Achieve/FreedomPlus) offer a direct creditor payoff discount — they pay your creditors directly and give you a lower APR. This is the smartest way to use a bad-credit personal loan.
⚠️ Warning: Avoid These Bad-Credit Loan Traps
Payday loans: APRs of 300–400%. Never. Upfront fees: Legitimate lenders deduct fees from your loan — they never charge you before funding. Guaranteed approval: No legitimate lender guarantees approval without seeing your application. These are scam signals. No credit check loans: Often predatory terms. Big Buck Loans uses alternative data — that’s different from “no check at all.”
Full Comparison Table
| Lender | Min Score | APR Range | Loan Range | Origination Fee | Co-Borrower? | Funding Time |
|---|---|---|---|---|---|---|
| Upstart | None (300 min) | 7.4%–35.99% | $1K–$50K | 0%–12% | No | 1 day |
| Upgrade | 580 | 9.99%–35.99% | $1K–$50K | 1.85%–9.99% | Yes | 1–4 days |
| Avant | 550 | 9.95%–35.99% | $2K–$35K | Up to 9.99% | No | 1 day |
| Big Buck Loans | None | 5.99%–35.99% | $100–$5K | Varies | No | Same/next day |
| LendingTree | Varies | From 6% | $1K–$50K+ | Varies | Varies | 1–7 days |
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Frequently Asked Questions
Can I get a personal loan with a 500 credit score?
Yes. Upstart accepts scores as low as 300, and Big Buck Loans has no minimum credit score requirement. Avant accepts scores from 550. Expect APRs in the 25–36% range at this credit level. Focus on keeping the loan amount small and the repayment term short to minimize total interest paid.
What’s the difference between bad credit and no credit?
Bad credit means you have a score below 580 — usually due to missed payments, high utilization, or defaults. No credit (thin file) means you have insufficient history for a score. Both are challenges, but handled differently. Upstart is best for thin files because their AI model uses non-credit data. For bad credit with negative marks, consider Avant or Upgrade with a co-borrower.
Will applying for a personal loan hurt my credit score?
Checking your rate (pre-qualification) uses a soft pull — no impact. The official application triggers a hard pull, which typically reduces your score by 5–10 points temporarily. Multiple hard pulls within 14–45 days are usually counted as one inquiry for rate-shopping purposes. Always pre-qualify first before submitting a full application.
How fast can I get a personal loan with bad credit?
Avant and Big Buck Loans can fund same-day or next-day in many cases. Upstart typically funds within 1 business day. Upgrade takes 1–4 business days. LendingTree depends on which lender you’re matched with — some fund same-day, others take up to 7 days. If speed is critical, start with Avant or Big Buck Loans.
Should I use a personal loan to pay off credit card debt?
Yes — if you can get a personal loan APR below your credit card APR (usually 21%+), consolidation saves money. Even at 28% APR, a fixed-term personal loan beats minimum payments on a revolving card balance. Key: close the credit cards after paying them off (or at least stop using them), or you risk accumulating new debt on top of the loan.
What income do I need to qualify?
Most lenders require a minimum annual income of $12,000–$24,000 and a debt-to-income ratio below 43–50%. Some (like Upstart) accept non-traditional income sources including freelance, gig work, and part-time employment. Avant and Upgrade look at your full financial picture, not just W-2 employment.
Rates and terms are subject to change. Always verify current rates directly with lenders before applying. DebtRoute does not guarantee loan approval. Results vary by applicant profile. This is not financial advice — consult a licensed financial advisor for personalized guidance.