If you have a low credit score, getting approved for a personal loan can be challenging—but it’s not impossible. Many U.S. lenders now consider factors beyond your credit score, including your income, employment history, and ability to repay. (Bankrate)
What Is Considered Bad Credit?
Most lenders classify credit scores as:
- Excellent: 800–850
- Very Good: 740–799
- Good: 670–739
- Fair: 580–669
- Bad/Poor: Below 580
Even if your score is below 600, several lenders still offer personal loans. (LendingTree)
Best Personal Loan Lenders for Bad Credit (2026)
1. Upstart
Best For: Low credit scores and limited credit history
Highlights
- Credit scores starting around 300 may qualify.
- AI-based approval process.
- Fast funding, often within one business day.
- Loan amounts from $1,000 to $75,000.
Pros
- Accepts very low credit scores.
- Quick online application.
- Soft credit prequalification.
Cons
- Higher APR for risky borrowers.
- Origination fees may apply. (Bankrate)
2. Upgrade
Best For: Debt consolidation
Highlights
- Loan amounts up to $50,000.
- Fixed monthly payments.
- Direct payment to creditors available.
Pros
- Accepts fair and bad credit.
- Mobile-friendly application.
- Flexible repayment terms.
Cons
- Origination fee possible.
- Maximum APR can be high. (Bankrate)
3. OneMain Financial
Best For: Same-day funding
Highlights
- Secured and unsecured loans.
- Physical branch locations across the U.S.
- Flexible qualification requirements.
Pros
- Fast approvals.
- Good option for borrowers with poor credit.
- Personal customer service.
Cons
- Higher interest rates.
- Lower maximum loan amounts than some competitors. (Bankrate)
4. Avant
Best For: Fair credit borrowers
Highlights
- Loans starting around $2,000.
- Quick online application.
- Fixed interest rates.
Pros
- Easy qualification process.
- Fast funding.
- No hidden costs.
Cons
- Higher APR than traditional banks. (finder.com)
5. Best Egg
Best For: Secured personal loans
Highlights
- Loan amounts up to $50,000.
- Competitive rates for qualified borrowers.
- Homeowner options available.
Pros
- Good customer satisfaction.
- Fast approval process.
Cons
- Not available in every state.
- Origination fee may apply. (Bankrate)
How to Increase Your Approval Chances
- Check your credit report for errors.
- Pay down existing debt before applying.
- Apply with a co-borrower if possible.
- Show stable income and employment.
- Prequalify with multiple lenders using soft credit checks.
- Borrow only what you actually need. (LendingTree)
Typical Loan Requirements
Most lenders ask for:
- U.S. citizenship or permanent residency
- Government-issued ID
- Social Security Number
- Proof of income
- Active bank account
- Minimum age of 18 years
Interest Rates
Borrowers with bad credit generally receive higher APRs because they present greater lending risk. Current lender offerings for bad-credit personal loans often range up to 35.99% APR, depending on your credit profile and other factors. (Bankrate)
Avoid These Loan Scams
Be cautious if a lender:
- Guarantees approval with no checks.
- Requests an upfront fee before funding.
- Pressures you to act immediately.
- Has no physical address or verified customer support.
- Doesn’t clearly disclose APR and fees.
Legitimate lenders typically allow prequalification without requiring upfront payments. (Reddit)
Alternatives to Bad Credit Personal Loans
If you don’t qualify, consider:
- Credit union personal loans
- Secured personal loans
- Employer paycheck advances
- Credit-builder loans
- Borrowing with a qualified co-signer
Avoid payday loans whenever possible due to their very high costs and short repayment periods. Community discussions also commonly recommend comparing multiple prequalified offers rather than accepting the first loan available. (Reddit)
Final Thoughts
A bad credit score doesn’t automatically prevent you from getting a personal loan in 2026. Lenders such as Upstart, Upgrade, OneMain Financial, Avant, and Best Egg continue to serve borrowers with fair or poor credit. Compare APRs, fees, repayment terms, and funding speed before choosing a lender, and use prequalification whenever available to shop for the best offer without unnecessarily affecting your credit score. (Bankrate)