8 oct 2026 ·
Advertiser: Every figure comes from the lender’s own website or a named independent source, and our method is explained at the end of the article.
A low credit score doesn’t have to shut you out of borrowing, but it does change the rules. You’ll pay more, you’ll have fewer choices, and you’ll be a target for lenders whose loans can trap you in debt. Choosing the right lender matters more with bad credit than with any other credit profile.
Every lender on this list caps its APR at 36% or below. We compared them using terms published as of October 8, 2026.
What counts as bad credit, and what it costs
On the FICO scale, a score from 300 to 579 is considered poor, according to Experian. Lenders may also treat a short credit history, recent late payments or a high debt-to-income ratio as signs of risk.
Expect a high APR. Two independent data sets show what borrowers with low scores are actually paying:
- NerdWallet: an average APR of 27.53% for borrowers with scores of 300–629 (October 2026 prequalification data).
- Credible: an average APR of 29.87% on loans closed by borrowers with scores below 580 (October 2025 to September 2026).
On a $5,000 loan over three years, a 28% APR means about $207 a month and roughly $2,440 in interest. That’s why it pays to borrow only what you truly need, and to look at every way to lower your rate.
Our top picks at a glance
Upstart is our top pick for most borrowers with bad credit, because its model looks beyond your score. OneMain is the most flexible if you can add a co-applicant or a vehicle as collateral. If you’re eligible for a credit union, its rate caps can save you the most.
| Lender | Best for | Min. credit score* | APR range | Upfront fee | Loan amounts |
|---|---|---|---|---|---|
| Upstart | Best overall for bad credit | About 300 in most states | 6.3% – 35.99% | 0% – 12% | $1,000 – $75,000 |
| OneMain Financial | Secured and joint loans, branches | None required | 11.99% – 35.99% | 1% – 10% or $25 – $500 | $1,500 – $30,000 |
| Avant | Online loan for scores in the 500s | About 550–580 | 9.95% – 35.99% | Up to 9.99% | $2,000 – $35,000 |
| Upgrade | Car-secured or joint loan | About 580 | 7.74% – 35.99% | 1.85% – 9.99% | $1,000 – $50,000 |
| Navy Federal Credit Union | Military families | None required | 8.74% – 18.00% | None | $250 – $150,000 |
| Credit union PALs | Small emergencies | Varies | Up to 28% | Application fee up to $20 | $200 – $2,000 |
*None of these lenders publishes a minimum score except where noted. Upstart and Upgrade figures are reported by Finder; Avant by NerdWallet (550) and Credible (580); OneMain and Navy Federal by NerdWallet. PAL rules are reported by Experian. All other figures come from each lender’s website, checked October 8, 2026.
The best personal loans for bad credit, reviewed
1. Upstart — best overall for bad credit
Upstart’s model looks at your education and employment as well as your credit, which can help if your score is low or your history is short. Finder reports it accepts scores as low as 300 in most states, as long as you don’t have a recent bankruptcy, accounts in collections or other disqualifying factors. You can check your rate without affecting your score, and funds usually arrive the next business day.
- Pros: looks beyond your score, soft-pull rate check, next-day funding, loans from $1,000
- Cons: origination fee up to 12%; no co-borrowers; only 3- or 5-year terms
2. OneMain Financial — best for secured and joint loans
OneMain has no required minimum credit score, according to NerdWallet, and it also considers your cash flow. You can strengthen your application with a co-applicant or by securing the loan with a vehicle. With more than 1,300 branches, you can apply and get help in person, and funds can reach an eligible debit card as fast as one hour after closing.
- Pros: no minimum score, joint and secured options, in-person help, fast funding
- Cons: starting APR of 11.99%; origination fees on every loan; facing a 2026 lawsuit from 13 states over add-on products, which it denies. Decline optional add-ons you don’t want.
3. Avant — best online loan for scores in the 500s
Avant is an online lender that reviewers say accepts scores around 550 to 580. It lends $2,000 to $35,000 and can fund as soon as the next business day.
- Pros: reachable with scores in the 500s, simple online process, no prepayment penalty
- Cons: administration fee up to 9.99%; no co-borrowers or secured loans; not available in eight states
4. Upgrade — best for a car-secured or joint loan
Upgrade says that even with bad credit you may still be eligible, because it looks at several factors, and checking your rate won’t affect your score. If your offer is too expensive, you can try securing the loan with your car or applying with a co-borrower.
- Pros: car-secured and joint options, terms up to 84 months, loans from $1,000
- Cons: origination fee of at least 1.85%
5. Navy Federal Credit Union — best for military families
If you or a family member serves or served in the military or works for the Department of Defense, Navy Federal is worth checking first. NerdWallet reports no minimum credit score, no origination fee and an APR cap of 18%. You can also secure the loan with savings, a certificate or a vehicle, and it accepts cosigners and co-borrowers.
- Pros: low APR cap, no origination fee, secured and co-signed options, loans from $250
- Cons: membership limited to military, DoD employees, veterans and their families
6. Credit union payday alternative loans (PALs) — best for small emergencies
Many federal credit unions offer PALs, small loans designed to replace payday loans. According to Experian:
| PAL I | PAL II | |
|---|---|---|
| Loan amount | $200 – $1,000 | Up to $2,000 |
| Repayment term | 1 – 6 months | 1 – 12 months |
| Membership wait | At least 1 month | None |
| Maximum interest rate | 28% | 28% |
| Application fee | Up to $20 | Up to $20 |
Rollovers aren’t allowed, and you can have only one PAL at a time. Some credit unions report your payments to the credit bureaus, which can help you rebuild your score.
How to improve your approval odds with bad credit
- Check your credit reports first. You can get free reports from all three bureaus at AnnualCreditReport.com. Dispute any errors, since a mistake can drag down your score.
- Prequalify with several lenders. Upstart, Upgrade, OneMain and others let you see offers with a soft credit check, so shopping around won’t hurt your score.
- Borrow less. A smaller loan is easier to approve and cheaper to repay. PALs and lenders with $1,000 minimums help here.
- Offer collateral. A loan secured by your car (OneMain, Upgrade) or savings (Navy Federal) can improve your odds or your rate. You could lose the collateral if you don’t repay.
- Add a co-borrower or cosigner with stronger credit. OneMain and Upgrade accept co-applicants, and Navy Federal accepts cosigners. See our guide to personal loans with a cosigner.
- Show stable income. Recent pay stubs, a steady job and a lower debt-to-income ratio can offset a low score.
- Start with your own bank or credit union. An existing relationship can count in your favor.
Rebuild your credit while you wait
If you can hold off on borrowing, a few months of work can lift your score and lower your future rate:
- Pay every bill on time; payment history is the biggest factor in your score.
- Pay down card balances to lower your credit utilization.
- Consider a secured credit card or a credit-builder loan from a credit union.
- Avoid applying for lots of new credit at once.
Loans to avoid with bad credit
With a low score, you’ll see ads for «guaranteed approval» and «no credit check» loans. They’re easy to get and very expensive.
| Loan type | How it works | Why it’s risky |
|---|---|---|
| Payday loan | Small loan due in full on your next payday | A common fee of $15 per $100 equals an APR of almost 400% on a two-week loan, per the CFPB |
| Car title loan | Short-term loan secured by your car title | Miss a payment and you can lose your car |
| «No credit check» installment loan | Longer loan with no credit review | APRs can be far above 36%; easy to fall behind |
| Rent-to-own or buy-now-pay-later stacking | Several small financing plans at once | Hard to track, fees add up quickly |
A PAL from a credit union or a personal loan capped at 36% APR is almost always a better choice, even with bad credit.
Scam red flags
People with bad credit are frequent targets of loan scams. Walk away if a lender:
- Asks for a fee before you get the money. Legitimate lenders take fees out of the loan, never upfront by gift card, wire or app transfer.
- Guarantees approval without checking your credit or income.
- Isn’t registered in your state. Look up the lender’s license with your state’s financial regulator or its NMLS number at NMLS Consumer Access.
- Pressures you to decide right away or won’t show the APR and total cost in writing.
- Contacts you out of the blue by phone, text or social media with a loan offer.
How we chose these lenders
We only included lenders and loan types with APRs capped at 36% or below, the limit many consumer advocates use for affordable credit. We then ranked them on five factors:
- Access (35%): minimum credit score, whether other factors are considered, and joint or secured options
- Cost (30%): APR range and upfront fees
- Loan fit (15%): minimum loan amount and term options
- Speed (10%): how quickly funds are sent
- Transparency (10%): whether rates, fees and requirements are clearly published
All figures come from each lender’s official website, checked on October 8, 2026. Lenders rarely publish a minimum credit score, so we cite the independent reviewers that report one. We didn’t apply for these loans ourselves. We review this list at least once every quarter.
Frequently asked questions
Can I get a personal loan with a 500 credit score?
Possibly. Upstart reportedly accepts scores as low as 300 in most states, and OneMain and Navy Federal have no required minimum, according to NerdWallet. Approval still depends on your income, debts and recent history, and your APR will likely be high.
What APR should I expect with bad credit?
NerdWallet’s October 2026 data shows an average of 27.53% for scores of 300–629, and Credible reports 29.87% on closed loans for scores below 580. Securing the loan or adding a co-borrower may get you a lower rate.
Are no-credit-check loans a good idea?
Usually not. They’re often payday, title or high-cost installment loans with APRs well above 36%. A credit union PAL, capped at 28%, is a much safer option for small amounts.
Will applying for a loan hurt my bad credit further?
Prequalifying uses a soft credit check and doesn’t affect your score. A formal application usually triggers a hard inquiry, which may lower your score by a few points for a short time. Limit formal applications to one or two lenders.
Can a personal loan help rebuild my credit?
Yes, if you make every payment on time. Lenders such as OneMain report payments to the credit bureaus, and a steady payment history can raise your score over time. Missed payments will do the opposite.
What’s the easiest loan to get with bad credit?
Secured loans, joint loans and small credit union loans are usually the easiest to qualify for. OneMain’s vehicle-secured loans and credit union PALs are common options.
Disclaimer
This article is for general information only and is not financial advice. We are not a lender or a financial advisor. APRs, fees and requirements shown are those published by each lender, or reported by the sources cited, on the date above and may change at any time. Your actual offer depends on your credit, income, state and other factors. Secured loans put your collateral at risk if you can’t repay. Always read the full loan agreement and compare several offers before you borrow.