A FICO score under 640 closes most personal loan doors. Banks and credit unions almost always require a 660 or 680 minimum, and many online lenders quietly cut off at 600. The good news is that a small group of lenders specialize in bad credit personal loans and can fund $1,000 to $50,000 even with a score in the low 500s. If your score sits at 500 exactly, see our best credit cards for a 500 credit score guide for parallel options.
This guide ranks the six best personal loans for bad credit in 2026. Each lender on the list publicly accepts FICO scores below 640, funds within 1 to 5 business days, and is licensed nationwide or in most states. We focus on transparent APRs (no hidden fees) and lenders that report payments to all three bureaus so on time payments help your score, which is why a personal loan can build credit faster than most other products.
A fast alternative for amounts under $500: MoneyLion connects bad credit borrowers with personal loan offers from multiple providers, with no credit score impact at prequalification. For larger amounts, the six lenders below are the strongest bad credit picks of 2026.
MoneyLion
MoneyLion
Compare personal loan offers from top providers in minutes with no credit score impact with the MoneyLion Marketplace.
Standout feature
Soft-pull marketplace that surfaces prequalified personal loan offers from a network of lenders, with options up to $100,000 and partners that work with fair and bad credit
Fees
Free to use the marketplace
Pros
Compare multiple lender offers in minutes; soft credit pull to prequalify — no impact on your score
Cons
Final approval requires a hard pull from the chosen lender
What Counts as Bad Credit for a Personal Loan
FICO defines credit ranges as:
- 800+ Exceptional
- 740 to 799 Very Good
- 670 to 739 Good
- 580 to 669 Fair
- Below 580 Poor
Most lenders consider Fair (580 to 669) borderline and Poor (below 580) bad credit. The six lenders below all approve borrowers in the 580 to 669 range, and several approve scores in the 500s. The tradeoff is APR. Bad credit personal loans typically run 18 to 36 percent APR, sometimes higher for the lowest scores.
That is still much cheaper than payday loans for bad credit (300 to 700 percent) or pure subprime installment lenders (60 to 160 percent). A bad credit personal loan from one of these reputable lenders is often the best mid sized borrowing option for $1,000 to $10,000.
The 6 Best Personal Loans for Bad Credit
The lenders below are ranked by a mix of approval odds at low scores, APR competitiveness, and customer reviews. Our how to get a personal loan with bad credit guide explains the underwriting moves that can shift you up a tier before you apply.
1. Upgrade
Upgrade is the most consistent approve at scores in the 580 to 640 range. Loans of $1,000 to $50,000 with terms of 24 to 84 months. APRs from about 8.5 to 36 percent. Origination fee of 1.85 to 9.99 percent. Reports to all three bureaus. Funds typically arrive within 1 business day after approval.
2. Upstart
Upstart uses an AI underwriting model that considers education, work history, and other factors beyond FICO. Minimum FICO is 300 (yes, really, though most approvals are 580+). Loans of $1,000 to $50,000 with terms of 36 or 60 months. APRs from about 7 to 36 percent. Origination fee 0 to 12 percent. Funds within 1 business day for most.
3. Universal Credit
Universal Credit (an Upgrade brand) targets specifically the fair to bad credit range. Loans of $1,000 to $20,000 with terms of 36 to 60 months. APRs from about 11.69 to 35.99 percent. Origination fee 5.25 to 9.99 percent. Reports to all three bureaus. Funds in 1 to 3 business days.
4. Avant
Avant has been a leader in bad credit personal loans since 2012. Minimum FICO around 580. Loans of $2,000 to $35,000 with terms of 12 to 60 months. APRs from about 9.95 to 35.99 percent. Administrative fee up to 4.75 percent of loan amount. Same day or next day funding.
5. OneMain Financial
OneMain is one of the few major lenders that offers both unsecured and secured personal loans for bad credit. Loans of $1,500 to $20,000 with terms of 24 to 60 months. APRs from about 18 to 35.99 percent. Origination fee varies by state. Branch network plus online application. Secured loans (with a car or other collateral) can unlock lower APRs.
6. LendingPoint
LendingPoint specializes in fair credit borrowers (typically 600 to 700 FICO). Loans of $2,000 to $36,500 with terms of 24 to 60 months. APRs from about 7.99 to 35.99 percent. Origination fee 0 to 10 percent. Reports to all three bureaus. Funds within 1 business day for most approvals.
How to Pick the Right Bad Credit Lender
Four quick criteria can narrow your list fast.
- Minimum credit score. If your FICO is 500 to 580, Upstart is your most likely approval. If you are 580 to 640, Upgrade and Avant both approve consistently.
- Loan amount needed. For under $5,000, all six lenders work, and our best small personal loans under $5,000 roundup ranks the cheapest small dollar picks. For $20,000 to $50,000, focus on Upgrade and Upstart.
- APR sensitivity. Lower APR matters more on long term loans (5+ years). For short term loans (under 2 years), origination fees often matter more than APR.
- Credit reporting. All six lenders report to all three bureaus, which means on time payments help your score. This is a key advantage over payday and cash advance products.
Most lenders let you prequalify with a soft pull, which shows your offered rate without affecting your credit score. Always prequalify with 2 to 3 lenders before formally applying, because a hard inquiry only happens at formal application.
What to Expect From the Application Process
Most online personal loan applications take 5 to 10 minutes to complete. You will be asked for:
- Full legal name, address, date of birth, and Social Security Number
- Annual income and employment status
- Loan purpose (debt consolidation, home improvement, medical, etc.)
- Bank account information for funding and repayment
Approval decisions are typically instant or within a few hours. Funding takes 1 to 5 business days for most lenders, with same day funding available at a small premium from a few (Upstart and Avant both offer same day for some borrowers). If your credit is so thin that even Upstart denies you, the personal loans with no credit check list covers lenders that underwrite purely on income.
Personal Loan vs Cash Advance vs Credit Card
For amounts under $500, a cash advance app like EarnIn or MoneyLion Instacash is almost always cheaper than any personal loan. For $500 to $2,000, the math gets closer. For anything over $2,000, a personal loan is usually the best option because APRs are much lower than carrying a balance on a high APR credit card or stacking cash advance apps.
Rule of thumb: under $500, use a cash advance app. Between $500 and $2,000, compare a personal loan to a 0 percent intro APR credit card. Over $2,000, a personal loan is almost always the right answer for bad credit borrowers, since most 0 percent APR cards require 670+ credit.
How to Improve Your Approval Odds
If your initial application gets denied or the rate is too high, three moves can help.
- Add a co signer with stronger credit. Most of the lenders above accept co signers, and a co signer with 700+ FICO can drop your APR by 5 to 10 points.
- Choose a secured loan. OneMain offers secured loans backed by a car title, which can unlock lower rates. Other lenders may accept savings account collateral.
- Apply for less. A $5,000 loan request at a 580 FICO is easier to approve than $20,000. Borrow only what you actually need.
Final Thoughts
Bad credit narrows the personal loan field, but six reputable lenders still offer real options for FICO scores in the 500s and low 600s. Upstart is your best bet at very low scores, Upgrade and Avant are workhorses in the 580 to 640 range, and OneMain unlocks lower APRs through secured loans. Prequalify with 2 or 3 lenders using soft pulls before formally applying, then pick the best rate. On time payments will help your score recover over 12 to 18 months, which means your next loan should come at a much better rate.
Frequently Asked Questions
What credit score do I need for a bad credit personal loan?
Upstart will consider FICO scores as low as 300, though most approvals are 580+. Upgrade and Avant both target 580 to 640 borrowers. If your score is below 580, Upstart and OneMain Financial (with a co signer or collateral) are your most likely options.
How fast can I get a bad credit personal loan?
Most online lenders approve in minutes and fund within 1 to 5 business days. Upstart and Avant both offer same day funding for some approved borrowers. If you apply before 11 a.m. on a business day, funding by end of day is realistic.
Will a bad credit personal loan hurt my credit score?
Applying triggers a hard inquiry that lowers your score by 3 to 5 points temporarily. The loan itself can help your score in the long run, because on time payments build positive history and credit mix. All six lenders here report to all three bureaus.
What APR should I expect with bad credit?
Bad credit personal loan APRs typically range from 18 to 36 percent. The lowest rates go to borrowers in the 600 to 640 range. Below 580, expect 28 to 36 percent APR plus an origination fee of 5 to 10 percent.
