Best Personal Loans for Bad Credit
Last updated: July 2026
Can You Get a Personal Loan With Bad Credit?
Yes — but expect to pay more for it. Lenders that work with bad credit borrowers (generally a FICO score below 580–630) typically charge annual percentage rates (APRs) in the 25%–36% range, compared with 15%–20% for borrowers with good credit. According to marketplace data from Credible, borrowers with scores below 580 who were approved for a personal loan paid an APR near or above 30% on average over the past year.
The good news: a personal loan from a legitimate lender is still far cheaper than a payday loan or pawnshop loan, which can carry equivalent APRs approaching 200% once fees are factored in. If you have bad credit, the right personal loan can be a reasonable way to consolidate debt or cover an emergency — the wrong one can trap you in a cycle of high-cost borrowing.
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Top Lenders for Bad-Credit Personal Loans, September 2026
| Lender | Min. Credit Score | Typical APR Range | Loan Amount | Notable Feature |
|---|---|---|---|---|
| LendingClub | Low 600s | Competitive, varies by profile | $1,000–$40,000 | Free prequalification with soft credit check |
| Upstart | No hard minimum (income-based) | Varies by profile | $1,000–$50,000 | Considers education/employment, not just credit score |
| OneMain Financial | No minimum stated | Higher end of range | $1,500–$20,000 | Fast, simple application; branch network |
| Best Egg | Low 600s | Varies; Payment Pathways option | $2,000–$50,000 | Flexible repayment program can lower monthly payments |
| Prosper | Low 600s | Varies by profile | $2,000–$50,000 | Peer-to-peer lending marketplace |
| Secured loan lenders (auto/savings-backed) | Often lower/no minimum | Generally lower than unsecured | Varies | Collateral can reduce your rate, but you risk losing the asset if you default |
Typical bad-credit borrower APRs across lenders range from roughly 25% to 36%. Loan amounts, terms, and approval depend on income, existing debt, and the specific lender’s underwriting. Data compiled from lender disclosures and financial publications as of mid-September 2026 — confirm current terms directly with each lender before applying.
How to Improve Your Odds — and Your Rate
- Prequalify with multiple lenders. Prequalification typically uses a soft credit pull that doesn’t affect your score, so you can compare real offers before committing.
- Consider a secured loan. Backing the loan with a paid-off vehicle or savings account can lower your rate, but you risk losing that asset if you default.
- Add a co-applicant. A co-signer with stronger credit can improve your approval odds and rate.
- Check credit unions first. Credit unions often cap rates lower than online lenders for members with weaker credit.
- Watch the origination fee. Some bad-credit lenders charge 1%–8% upfront, which effectively raises your real borrowing cost.
- Avoid payday and title loans. Their short terms and fee structures can produce effective APRs near 200%, far more expensive than even a high-rate personal loan.
Frequently Asked Questions
What credit score counts as “bad credit” for a personal loan? Most lenders that market specifically to bad-credit borrowers set the cutoff around a FICO score of 580–630 or lower.
What APR should I expect with bad credit? Based on recent marketplace data, expect an APR in the roughly 25%–36% range, versus 15%–20% for borrowers with good credit.
Will checking rates hurt my credit score? No — prequalification with most major lenders uses a soft credit check, which doesn’t affect your score. A hard inquiry only happens if you formally apply.
Is a secured personal loan better than an unsecured one for bad credit? It can lower your interest rate, since the collateral reduces the lender’s risk — but you could lose the pledged asset (vehicle, savings) if you fall behind on payments.
This article is for informational purposes only and does not constitute financial advice. Loan terms, APRs, and eligibility change frequently and vary by individual financial profile — confirm all details directly with a lender before applying, and consider speaking with a nonprofit credit counselor if you’re unsure a loan is the right option for your situation.
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