Best Bad Credit Loans 2026

Personal loans for credit scores from 500 upward

Personal loans designed for borrowers with poor or limited credit history (typically 500–629 FICO). Lenders specialising in bad credit use alternative data beyond credit scores — bank account history, employment stability, income — to make approval decisions.

Avg APR

18% – 36%

Loan Amount

$1,000 – $15,000

Term

24 – 48 months

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Top Lenders for Bad Credit Loans

1

Upstart

Thin or no credit file

APR Range

7.40% – 35.99%

Loan Range

$1,000 – $50,000

Min Score

300

Funding

1–3 days

2

Avant

Fair credit, fast funding

APR Range

9.95% – 35.99%

Loan Range

$2,000 – $35,000

Min Score

580

Funding

1–2 days

3

LendingPoint

Flexible repayment

APR Range

7.99% – 35.99%

Loan Range

$1,000 – $36,500

Min Score

580

Funding

1–3 days

4

OneMain Financial

Secured option available

APR Range

18.00% – 35.99%

Loan Range

$1,500 – $20,000

Min Score

600

Funding

1–2 days

5

Oportun

No credit history required

APR Range

35.95% – 35.95%

Loan Range

$300 – $10,000

Min Score

0

Funding

1–2 days

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Pros

  • Accessible to borrowers major banks decline
  • Can rebuild credit with on-time payments
  • Faster than secured loan alternatives
  • No collateral required for most options

Cons

  • Significantly higher APR (18–36%)
  • Lower loan limits than good-credit lenders
  • Origination fees often higher (1–10%)
  • Risk of deeper debt if payments missed

Key Facts

38% of Americans have a FICO score under 670.
On-time loan payments are the fastest legal way to rebuild credit.
Payday loans cost 400%+ APR — bad credit personal loans are far cheaper.
Upstart approves 43% more borrowers than traditional credit-score-only models.

Frequently Asked Questions

What is the minimum credit score for a personal loan?

Some lenders accept scores as low as 300 (Upstart uses AI underwriting). Most bad-credit lenders start at 580.

Will a bad credit personal loan hurt my credit further?

The hard inquiry costs 5–10 points temporarily. Making on-time payments rebuilds credit steadily over 6–12 months.

What is the maximum APR on a bad credit personal loan?

Most states cap APR at 36% for licensed lenders. Avoid any offer exceeding 36% — it's predatory territory.

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