Finding a personal loan with bad credit can be difficult, but having a low credit score does not necessarily mean you have no borrowing options. Some lenders consider borrowers with fair, poor, or limited credit and may look at factors beyond a traditional credit score.
The important part is comparing the APR, fees, loan amount, repayment term, monthly payment, and eligibility requirements before accepting an offer.
In this guide, we’ll compare several personal loan options that are currently available to borrowers with less-than-perfect credit and explain how to improve your chances of qualifying.
Important: Loan availability, rates, fees, minimum credit scores, and terms can change. Your actual offer depends on your individual financial profile and the lender’s current criteria.
What Is a Bad-Credit Personal Loan?
A bad-credit personal loan is generally a personal loan designed for borrowers who may have difficulty qualifying for traditional financing because of a low credit score, limited credit history, high debt, or previous payment problems.
There is no single universal definition of “bad credit,” but FICO scores below 580 are commonly considered poor.
Some online lenders accept applicants with scores below 600, although a lower score can mean a higher interest rate or less favorable loan terms.
Best Personal Loans for Bad Credit in 2026
Several lenders currently appear in major 2026 comparisons for borrowers with poor or fair credit.
1. Upstart – Best for Limited or Poor Credit
Upstart is one option worth considering if your credit history is limited or your score is low.
Current 2026 comparisons show Upstart offering personal loans from $1,000 to $75,000, with advertised APRs ranging up to 35.99%. Some sources report that applicants may qualify with very low or no traditional minimum credit-score requirement, although approval is never guaranteed.
Upstart uses additional information beyond a traditional credit score when evaluating some applicants, which can make it interesting for people with thin credit histories.
Best for: Borrowers with limited or damaged credit histories.
2. Avant – Best for Fast Funding
Avant is another lender frequently included in bad-credit loan comparisons.
Current information lists loan amounts of approximately $1,000 to $40,000, with advertised APRs ranging from 9.95% to 35.99% and a minimum credit score around 580, although other eligibility requirements also apply.
Avant may be worth considering if you need a relatively straightforward online application and potentially quick access to funds.
Best for: Borrowers looking for a fast online lending process.
3. Upgrade – Best for Secured Loan Options
Upgrade is another option for borrowers with less-than-perfect credit.
Bankrate’s August 2026 comparison lists Upgrade with loan amounts from $1,000 to $50,000, advertised APRs of 7.74% to 35.99%, and a listed minimum credit score of 600.
Upgrade also offers secured-loan options in certain circumstances, which can provide another route for qualifying borrowers.
Best for: Borrowers interested in secured options and flexible qualification features.
4. OneMain Financial – Best for Flexible Borrowing Options
OneMain Financial is another lender frequently mentioned in current bad-credit loan comparisons.
Current comparisons list loan amounts of roughly $1,500 to $30,000, with advertised APRs reaching 35.99%. Bankrate also highlights OneMain for potentially fast funding.
OneMain may be particularly useful for borrowers who prefer having access to in-person service in addition to online options.
Best for: Borrowers who value flexible application and service options.
5. Universal Credit – Another Option for Poor Credit
Universal Credit is another lender currently appearing in bad-credit personal-loan comparisons.
Bankrate’s August 2026 information lists loan amounts from $1,000 to $50,000 and advertised APRs of 11.69% to 35.99%.
Borrowers should pay close attention to the final APR and fees because the lowest advertised rate is generally reserved for applicants who meet stronger eligibility criteria.
Best for: Borrowers comparing multiple poor-credit lending options.
Personal Loan Comparison for Bad Credit
| Lender | Loan Amount | Advertised APR | Credit Requirement* | Best For |
|---|---|---|---|---|
| Upstart | $1,000–$75,000 | Up to 35.99% | May consider very low scores | Limited credit |
| Avant | $1,000–$40,000 | 9.95%–35.99% | Around 580 | Fast funding |
| Upgrade | $1,000–$50,000 | 7.74%–35.99% | Around 600 | Secured options |
| OneMain Financial | $1,500–$30,000 | 11.99%–35.99% | Not publicly specified by Bankrate | Flexible options |
| Universal Credit | $1,000–$50,000 | 11.69%–35.99% | Not publicly specified by Bankrate | Poor-credit borrowers |
*Minimum scores and other eligibility requirements vary. A listed minimum does not guarantee approval or a particular rate.
What Interest Rate Can You Expect With Bad Credit?
Your credit score can have a major effect on the interest rate you receive.
Borrowers with excellent credit generally qualify for lower rates, while borrowers with poor credit may receive rates near the upper end of a lender’s advertised range.
Current bad-credit comparisons show that 35.99% is a common maximum APR among several mainstream online personal-loan providers.
This is why comparing multiple offers is important.
APR vs Interest Rate
Don’t compare loans based only on the advertised interest rate.
APR, or annual percentage rate, can provide a more useful comparison because it can incorporate certain fees associated with borrowing.
A loan with a slightly lower interest rate is not necessarily cheaper if it carries significant upfront fees.
How Much Can You Borrow With Bad Credit?
The amount you can borrow depends on the lender and your financial situation.
Some lenders currently advertise loans ranging from around $1,000 to $75,000, but borrowers with poor credit may not qualify for the maximum amount.
Your income, existing debt, credit history, loan purpose, and other factors can affect the amount a lender is willing to offer.
How to Compare Bad-Credit Personal Loans
Don’t choose a loan simply because you were approved.
Compare the complete cost.
1. Compare APR
A lower APR generally means less interest and borrowing cost, assuming other terms are comparable.
2. Check Origination Fees
Some lenders charge an origination fee that is deducted from the amount you receive.
For example, if you are approved for $5,000 but a fee is deducted before funding, you may receive less than $5,000 while still owing according to the loan agreement.
3. Check the Repayment Term
A longer repayment period can reduce the monthly payment but may increase the total interest paid.
4. Calculate the Monthly Payment
Make sure the payment fits comfortably within your budget.
5. Check for Prepayment Penalties
If you plan to repay the loan early, check whether the lender charges a prepayment penalty.
6. Look at the Total Cost
The most important number isn’t always the monthly payment.
Consider the total amount you’ll repay over the entire loan term.
Can You Get a Personal Loan With a 500 Credit Score?
It may be possible, but options can be limited and expensive.
Some lenders and comparison platforms work with borrowers who have scores around 500 or lower, while others have higher minimum requirements.
A low credit score can also result in:
- Higher APR
- Smaller loan amounts
- Shorter repayment terms
- Additional fees
- Fewer lender choices
Before accepting an expensive loan, compare alternatives and make sure the monthly payment is affordable.
How to Improve Your Chances of Getting Approved
Check Your Credit Report
Review your credit reports for inaccurate information.
If you find an error, dispute it with the appropriate credit-reporting company before applying.
Reduce Existing Debt
A high debt-to-income ratio can make it harder to qualify.
Paying down existing debt, when possible, can improve your overall financial profile.
Apply for the Amount You Actually Need
Requesting a very large loan can make affordability more difficult.
Borrow only what you need and can reasonably repay.
Consider a Co-Signer or Co-Borrower
Some lenders allow a co-signer or co-borrower.
A financially stronger applicant may improve the chances of qualification or potentially help secure better terms, depending on the lender.
Consider a Secured Loan
Some lenders offer secured personal loans.
A secured loan requires collateral, so understand the risk before using an asset to secure debt.
Does Prequalification Hurt Your Credit Score?
Some lenders allow you to check potential rates through a soft credit inquiry, which generally does not have the same effect as a hard credit inquiry.
However, a formal application can involve a hard inquiry.
Always read the lender’s explanation before submitting an application.
Current consumer comparisons specifically recommend prequalifying with multiple lenders when possible so borrowers can compare potential offers before committing to a full application.
Bad-Credit Personal Loan Alternatives
A personal loan isn’t always the best solution.
Depending on your circumstances, consider alternatives.
Credit Union Loan
Credit unions may offer personal loans with competitive rates, although membership requirements can apply.
Credit-Builder Loan
A credit-builder loan may be designed more specifically around establishing or improving credit history rather than providing immediate cash.
Secured Loan
A secured loan uses collateral and may provide another borrowing option, but you risk losing the asset if you don’t repay according to the agreement.
Borrowing From Family
If appropriate, borrowing from a trusted family member may avoid some lending fees and interest, but it’s important to agree clearly on repayment terms.
Delay the Expense
If the expense isn’t urgent, waiting while improving your credit or saving money may be less expensive than accepting a high-APR loan.
When Should You Avoid a Bad-Credit Personal Loan?
A personal loan may not be appropriate if the monthly payment would stretch your budget too far.
Think carefully if:
- The APR is extremely high.
- Fees are difficult to understand.
- You need another loan to repay the first one.
- The loan is being used for recurring expenses you cannot afford.
- You are not sure how you’ll make the monthly payments.
- The lender guarantees approval without reviewing your finances.
- The lender pressures you to pay an upfront fee before receiving a loan.
A legitimate lender should provide clear information about the loan’s costs and terms.
Watch Out for Personal Loan Scams
Bad-credit borrowers are often targeted by scammers because they may be actively searching for financing.
Be especially careful with offers that:
- Guarantee approval
- Demand payment before approval
- Ask for gift cards or cryptocurrency
- Request your banking password
- Pressure you to act immediately
- Use fake government or bank branding
- Promise extremely low rates without checking your information
Never provide sensitive account credentials to an unknown person claiming to arrange a loan.
What Documents May Be Required?
Lenders may request information such as:
- Government-issued identification
- Proof of income
- Employment information
- Bank-account information
- Social Security number
- Current address
- Details about existing debts
The exact requirements vary by lender.
Providing inaccurate information can delay or prevent an application.
How to Apply for a Bad-Credit Personal Loan
The application process usually follows several steps.
Step 1: Check Your Credit
Understand your approximate credit score and review your credit report.
Step 2: Decide How Much You Need
Avoid borrowing more than necessary.
Step 3: Compare Lenders
Compare APRs, fees, terms, loan amounts, and eligibility requirements.
Step 4: Prequalify When Available
Use prequalification options to compare potential offers without immediately submitting a full application, where available.
Step 5: Review the Loan Agreement
Before accepting an offer, read the APR, fees, payment amount, repayment schedule, and total repayment amount.
Step 6: Accept Only If Affordable
If the payment doesn’t fit your budget, consider another option rather than taking on unaffordable debt.
Frequently Asked Questions
What is the best personal loan for bad credit in 2026?
There isn’t one best lender for every borrower. Current comparisons commonly feature lenders such as Upstart, Avant, Upgrade, OneMain Financial, and Universal Credit, but the best option depends on your credit profile, income, loan amount, and the actual offer you receive.
Can I get a personal loan with a 550 credit score?
Possibly. Some lenders accept borrowers with credit scores around 550 or lower, but approval isn’t guaranteed and rates may be higher.
What is the lowest APR for bad-credit loans?
Some lenders advertise APRs beginning below 10%, but those rates generally apply only to borrowers who meet the lender’s stronger eligibility criteria. Borrowers with bad credit may receive a much higher rate.
Can I get a $5,000 personal loan with bad credit?
It may be possible depending on your income, credit profile, debt, and the lender’s requirements. Several lenders advertise loan amounts that include $5,000, but the amount you qualify for is determined individually.
Does applying for a personal loan hurt your credit?
A formal application may result in a hard credit inquiry. Some lenders allow soft-credit prequalification first, which can help you compare potential offers without the same type of inquiry.
Should I get a personal loan to pay off credit cards?
Debt consolidation can make sense when the new loan has a lower overall cost and you can avoid rebuilding the credit-card balance. Compare the APR, fees, repayment period, and total cost before making the decision.
Can a co-signer help with bad credit?
A co-signer may improve your chances of qualifying or help you receive better terms with lenders that permit co-signers. However, the co-signer can become responsible for the debt if you fail to repay.
Final Thoughts
Getting a personal loan with bad credit in 2026 is possible, but the most important thing is to compare the complete cost rather than choosing the first lender that approves you.
Current comparisons include options such as Upstart, Avant, Upgrade, OneMain Financial, and Universal Credit, each with different eligibility requirements, loan amounts, APR ranges, and features.
Before borrowing, check your credit, compare multiple offers, look carefully at fees and APRs, and make sure the monthly payment fits your budget.
If the available rates are too expensive, consider alternatives such as credit unions, credit-building products, secured financing, or delaying the expense when possible.
Disclaimer
This article is for informational and educational purposes only and is not financial advice. Loan approval, APR, fees, loan amounts, and repayment terms vary by lender and individual borrower. Rates and lender requirements can change at any time. Always review the official loan agreement and consider your ability to repay before borrowing money.
