Personal Loans for Bad Credit

Personal loans for bad credit exist — but they cost significantly more than loans available to prime borrowers. Here's how to find the best available options and avoid lenders that exploit bad-credit borrowers.

What to Expect With Bad Credit

Personal loan APRs for borrowers with credit scores below 600 typically range from 20–36%. Some online lenders for "near-prime" borrowers (580–650) charge 36%, which is the legal maximum in many states. Anything above 36% is high-cost lending and should be approached cautiously.

Legitimate Bad-Credit Personal Loan Lenders

Upstart: Uses AI underwriting that considers education and employment in addition to credit. Accepts scores as low as 300 with strong income. APRs: 7–36%. Best for borrowers with thin credit but good income.

LendingPoint: Specifically serves 580–660 credit range. APRs: 7.99–35.99%. Requires $35,000+ annual income.

OneMain Financial: Accepts scores below 580. Offers secured personal loans (collateral required) for better rates. APRs: 18–36%. Has physical branches for those who prefer in-person service.

Avant: Minimum 550 FICO. APRs: 9.95–35.99%. Quick funding (next business day).

Self Inc.: Credit-builder loans specifically designed for bad credit. Good for building credit rather than immediate cash needs.

Avoid These

• Lenders advertising "no credit check" personal loans with APRs over 36%
• Tribal lenders claiming to be exempt from state usury laws
• Loans with origination fees over 8% of the loan amount
• Any lender asking for upfront payment to secure a loan (always a scam)

Improving Your Rate Through the Application

Adding a co-signer with good credit can significantly lower your rate — sometimes by 10+ percentage points. Offering collateral (secured personal loan) does the same. Applying to a credit union you have an existing relationship with also tends to produce better offers than cold applications to online lenders.

Pre-Qualify First

Most online lenders offer pre-qualification with a soft credit check — meaning you can see estimated rates and terms without affecting your score. Pre-qualify at 3–4 lenders, compare the actual APRs and total cost, then formally apply at the best one.

See also: DTI Calculator | How to Improve Your Score First