BAD CREDIT LOANS · 2026 GUIDE
Personal Loans for 500 Credit Score — Options That Actually Work (2026)
A 500 credit score limits your options but doesn’t eliminate them. Here are lenders that approve borrowers with bad credit, what rates to expect, and alternatives that may cost less.
Personal loans for 500 credit scores typically come with APRs at the top of lenders’ ranges, often 25–36% or more. Interest-rate limits vary by state; 36% is the cap the Military Lending Act sets for active-duty servicemembers and their families (CFPB). If you’re borrowing to pay off existing high-rate debt, make sure the new loan rate is actually lower. Avoid payday loans and no-credit-check lenders with triple-digit APRs.
Lenders that approve personal loans with a 500 credit score include Avant (min 550), Upgrade (min 580), and OppLoans (no hard score minimum). Rates are high because the lender is taking on more risk; check each lender’s current terms before you apply. Before applying, check whether a nonprofit credit union or a debt management plan might offer better terms for your situation.
Lenders That Work With 500–580 Credit Scores
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| Lender | Min Credit | APR Range | Loan Amount | Note |
|---|---|---|---|---|
| Avant | 550 | 9.95–35.99% | $2K–$35K | Best for bad credit; fast funding |
| Upgrade | 580 | 9.99–35.99% | $1K–$50K | Accepts low scores with steady income |
| Achieve | 620 | 8.99–29.99% | $5K–$50K | Lower rates if score 620+ |
| Credit Union | Varies | 8–18% | $500–$30K | Join first; often best rates for members |
Alternatives Worth Considering First
Before taking a high-rate personal loan, consider these alternatives that may cost less:
- Debt Management Plan (DMP): A nonprofit credit counseling agency can set up a plan that typically lowers your monthly payments, interest charges and fees (CFPB). No loan required. Learn about DMPs
- Credit union PAL (Payday Alternative Loan): Federal credit unions offer PALs of $200–$1,000 for 1–6 months at a maximum 28% APR, with application fees capped at $20. You must usually be a member for at least one month (NCUA).
- Debt settlement: If you have $7,500+ in unsecured debt, settlement companies may negotiate some balances down, though results vary and fees run 15–25% of enrolled debt. See top companies
- Secured loan: Using savings or a CD as collateral can get you much lower rates even with bad credit.
Source: NCUA — Payday Alternative Loans (PALs)
Compare Rates Without Hurting Your Credit
Most lenders use a soft pull to show your rate — checking does not affect your score.
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Frequently Asked Questions
What is the easiest personal loan to get with bad credit?
Avant and Upgrade have among the lowest minimum credit score requirements (550 and 580 respectively) for personal loans. For scores below 550, credit unions with membership requirements or secured loans are typically the best path. Be wary of “no credit check” and payday-style lenders: the CFPB notes a typical two-week payday loan fee of $15 per $100 equals an APR of almost 400% (CFPB).
Will applying for a personal loan hurt my credit score?
Checking your rate (pre-qualification) uses a soft pull and has no impact. The formal application triggers a hard inquiry, which takes fewer than five points off most people’s FICO Scores, according to myFICO. FICO’s rate-shopping window (14 or 45 days, depending on the score version) applies to mortgage, auto and student loans, so compare personal loan offers through soft-pull prequalification first.