The Best Personal Loans for Bad Credit — Reviewed & Ranked
We compared lenders that publish their rates and consider fair or bad credit. Four stand out for clear fees and fast funding, plus one high-cost emergency option with plain warnings.
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.
Here are the 5 we’d compare first. Rates and fees below come from each lender’s website (checked October 2026).
🏆 Top Picks at a Glance
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| Lender | Best For | Min Score | APR Range | Loan Amount |
|---|---|---|---|---|
| Upstart | No credit history / thin file | Not stated | 6.3–35.99% | $1K–$50K |
| Upgrade | Fair credit (580–669) | Not stated | 7.74–35.99% | $1K–$50K |
| Avant | Fast funding next-day | Not stated | 9.95–35.99% | $2K–$35K |
| Big Buck Loans | Emergency last resort (high cost) | None stated | Set by lender (payday-style APRs can near 400%) | Small-dollar |
| LendingTree | Comparing multiple offers | Varies | Varies by lender | $1K–$50K+ |
Upstart
AI-powered lending — looks beyond your credit score
✅ Pros
- Considers education and job history, not just your score
- 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 deducted from the 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
Partner link — we may earn a commission. See our disclosure policy
No impact on credit score to check your rate
Avant
Fast approval, flexible eligibility, dedicated bad-credit focus
✅ Pros
- Built for fair and below-average credit
- 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)
Partner link — we may earn a commission. See our disclosure policy
Soft credit check — no impact on your score
Big Buck Loans
A matching service for small, short-term emergency loans — not a direct lender
✅ Pros
- Open to very low or no credit
- One request can reach several lenders
- Fast decisions for small emergencies
- No obligation to accept an offer
❌ Cons
- Offers can include payday-style or cash-advance loans with very high costs
- Short repayment windows can lead to repeat borrowing
- Your details may go to several lenders who contact you
- Rates and fees are not published upfront
Source: CFPB, What are the costs and fees for a payday loan?
See Emergency Loan Options on Big Buck Loans →
Free to check — compare the APR and total cost before you accept any offer
LendingTree
Compare multiple lenders with a single soft pull
✅ Pros
- See offers from multiple 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 →
Partner link — we may earn a commission. See our disclosure policy
Single soft pull • See offers from multiple lenders • No obligation
LendingPoint
Fair credit considered · Reports to all 3 bureaus · Flexible payment dates
✅ Pros
- Reports payments to Equifax, Experian and TransUnion
- Lets you choose a payment date that matches payday
- Considers fair credit applicants
❌ Cons
- Origination fee can be up to 10%
- Not available in Nevada or West Virginia
- Minimum score not published
OneMain Financial
No published minimum score · Secured option available · In-person branches
✅ Pros
- No published minimum credit score
- Secured loan option using a vehicle can lower the rate
- Talk to someone in person at a local branch
❌ Cons
- Higher starting APR (16.05%)
- Secured loans put your vehicle at risk if you default
- Origination fee applies
Want a second marketplace to compare? See prequalified rates on Credible with a soft credit check.
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. If you dispute an error, the credit bureau generally has 30 days to investigate, and removing an inaccurate negative item can help your score (FTC).
2. Calculate Your Debt-to-Income Ratio (DTI)
Your DTI is the percentage of gross monthly income that goes to debt payments. Different lenders and loan products set different DTI limits, so a lower DTI improves your odds (CFPB). 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 stronger credit can help you qualify or get a lower rate. Lenders like Upgrade and LendingTree explicitly support co-borrowers. Note: if you don’t pay, the co-signer will have to, including any late fees or collection costs (FTC).
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. Matching services like Big Buck Loans can route you to these lenders, so always check the APR and total cost before you accept.
Full Comparison Table
| Lender | Min Score | APR Range | Loan Range | Origination Fee | Co-Borrower? | Funding Time |
|---|---|---|---|---|---|---|
| Upstart | Not stated | 6.3%–35.99% | $1K–$50K | Varies | No | 1 day |
| Upgrade | Not stated | 7.74%–35.99% | $1K–$50K | 1.85%–9.99% | Yes | 1 day after verification |
| Avant | Not stated | 9.95%–35.99% | $2K–$35K | Up to 9.99% | No | 1 day |
| Big Buck Loans | None stated | Set by lender | Small-dollar | 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?
It’s possible, but harder. Most lenders here don’t publish a minimum score; Upstart and Avant say they consider fair and below-average credit. Expect APRs near the top of each lender’s range (up to 35.99%). Short-term emergency loans found through matching services can cost far more. 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 takes fewer than five points off most people’s FICO Scores, according to myFICO. FICO’s 14- or 45-day rate-shopping window applies to mortgage, auto and student loans, so personal loan applications may each count. 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 says funds are sent within 1 business day after verification. 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. A loan with a higher APR than your cards can still cost less overall only if it gets you debt-free much faster — compare total interest, not just the rate. 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?
Income and debt-to-income requirements vary by lender, so check each lender’s current eligibility rules. 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.