Getting a personal loan is much easier with a good credit score (FICO Score 670-739). But even if you're among the 14% of adult consumers with bad credit (FICO Score below 580), you have options.
CNBC Select has picked the best personal loan lenders for applicants with a credit score of 580 or below, based on rates, terms, fees, flexible repayment options and other factors. For more about how we made our choices, read our methodology below.
Best personal loans for 580 credit score or below
Best for a credit score of 300: Upstart
Who's this for? Upstart approves borrowers with credit scores of 300, as well as those with no credit history. The AI-driven lending platform considers factors beyond credit, including education, employment and income.
Standout benefits: You can apply for loans as small as $1,000 and as big as $75,000. While there are origination and late fees, there are no penalties for paying off your balance early.
Upstart Personal Loans
Annual percentage rate (APR)
6.5% - 35.99%
Loan amounts
$1,000 to $75,000
Terms
36 and 60 months
Credit needed
300 (but may also accept applicants with no credit history)
Origination fee
0% to 12% of the target amount
Early payoff penalty
No
Late fee
5% of the last amount due or $15, whichever is greater
Terms apply.
Pros
- Accept applicants with low or no credit
- No early payoff fees
- Most loans funded the next business day
Cons
- High late fees
- Origination fee of 0% to 10% of the target amount
- $10 fee for paper copies of loan agreement
Best for secured loans: One Main Financial
Who's this for? OneMain Financial allows borrowers to get a lower interest rate by using collateral, such as a car or house.
Standout benefits: Borrowers can choose the day of the month payments are due. Applicants with a poor or fair credit score can apply with a co-applicant or co-signer.
OneMain Financial Personal Loans
Annual percentage rate (APR)
18.00% to 35.99%
Loan amounts
$1,500 to $20,000
Terms
24 - 60 Months
Credit needed
Poor/Fair
Origination fee
Starts at $25 to $500 or from 1% to 10%, depending on the state
Early payoff penalty
None
Late fee
Up to $30 or 15%, depending on the state
Terms apply.* Click here to see if you prequalify for a personal loan offer.
Pros
- Approves applicants with bad or fair credit
- Relatively low $1,500 loan minimum
- Same-day funding available
- Option to apply with collateral for a lower rate
- Co-applicants allowed
Cons
- High origination fee
- High interest rates
- No autopay discount
- No co-signers
*You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant's state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.
Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant's name with valid insurance. APRs are generally higher on loans not secured by a vehicle.Â
Example Loan:Â A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount.Â
For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees.
Current OneMain Customers:Â Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.
Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans.Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Time to Fund Loans: Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.
Best for quick funding: Avant
Who's this for? If you need money in a pinch, Avant's easy online application allows it to provide funding as early as the next business day after approval.
Standout benefits: If you are facing a qualifying financial hardship, Avant may temporarily lower your interest rate for 3 to 12 months.
Avant Personal Loans
Annual percentage rate (APR)
9.95% to 35.99%
Loan amounts
$2,000 to $35,000
Terms
24 to 60 months
Credit needed
Poor/fair
Origination fee
Up to 9.99%
Early payoff penalty
No
Late fee
Up to $25 after a 10-day grace period
Click here to see if you prequalify for a personal loan offer. Terms apply.
Pros
- Lends to applicants with poor credit
- No early payoff fee
- Can prequalify with a soft credit check
- Funding often available next day
- Late-payment grace period of 10 days
Cons
- Origination fee
- Potentially high interest
- No autopay discount
- No direct payments to creditors for debt consolidation
- No co-signers
Best for businesses: Universal Credit
Who's this for? Part of Upgrade, Universal Credit could be a great fit for a cash-strapped entrepreneur unable to qualify for a standard business loan. It's one of the few lenders to approve a personal loan for business purposes.
Standout benefits: Universal Credit approves loans for as much as $50,000, more than most competitors, and had loan terms of between 36 and 60 months.
Universal Credit Personal Loans
Annual Percentage Rate (APR)
11.69% – 35.99%
Loan purpose
Debt consolidation, large purchases, business, home improvement and more
Loan amounts
$1,000 to $50,000
Terms
36 to 60 months
Credit needed
Minimum credit score of 560
Origination fee
5.25% to 9.99%
Early payoff penalty
None
Late fee
Not disclosed
Terms apply.
Pros
- No early payoff fees
- Offers funding as early as the next business day
- Low credit score requirement of 560
Cons
- Origination fee can be a bit high
Best for small loans: Oportun
Who's this for? While most lenders start at $1,000 or more, Oportun approves loans for as little as $300, making it ideal for borrowers who don't need much money.
Standout benefits: Oportun accepts low-income and no-credit borrowers and has secured loan options in some states. The online application only takes about ten minutes to complete and you can pre-qualify with a soft credit check.
Oportun
Annual Percentage Rate (APR)
Up to 35.99%
Loan purpose
Quick cash, home improvement, deposits and more
Loan amounts
$300 to $10,000
Terms
12 to 54 months
Credit needed
No credit history required
Origination fee
May charge an administrative fee of up to 10% of principal
Early payoff penalty
No
Late fee
Depends on loan terms
Terms apply.
Pros
- Open to borrowers with no credit history
- No early payoff fee
- Same-day funding available
- Loan amounts as small as $300
Cons
- May charge an administrative fee of up to 10% of the principal
- Not available in all states
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
7.99%–35.99%
Up to $50,000
9.95% to 35.99%
$2,000 to $35,000
What's a personal loan?
A personal loan is a lump sum of money that is repaid over time with fixed monthly payments of both the loan principal and interest.
A secured personal loan requires borrowers to provide collateral, such as a vehicle or house. An unsecured loan doesn't require any collateral.
When searching for a personal loan, compare several offers to find the best interest rate and payment term.
| Loan features | Upstart | OneMain Financial | Avant | Universal Credit | Oportun |
|---|---|---|---|---|---|
| Credit score | 300 (alao accepts applicants with no credit history) | No minimum | 580 | 560 | No credit history required |
| Loan amounts | $1,000 to $50,000 | $1,500 to $20,000 | $2,000 to $35,000 | $1,000 to $50,000 | $300 to $10,000 |
| Loan terms | 36 to 60 months | 24 to 60 Months | 24 to 60 months | 36 to 60 months | 12 to 54 months |
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
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How to get a personal loan with bad credit
Getting a personal loan with bad credit is hard but there are some steps toward improving the odds.
- Review your credit report. Before applying, make sure there are no errors or evidence of fraud on your reports. If you see an outstanding debt that you've already paid off, for example, notify the three credit bureaus.
- Consider alternative lenders. Your first thought might be a big brick-and-mortar bank, but fintechs, credit unions and peer-to-peer platforms like Lending Club and Prosper are often more willing to work with a borrower with underwhelming credit.
- Get a co-signer. If a creditworthy person in your life is willing to take responsibility for payments if you defaulted, it will greatly improve your odds of getting approved and earning a lower rate.
- Provide collateral. A secured loan uses a car, home, or other asset as collateral and is easier to get approval for.
- Request a smaller loan. If your credit is too weak for a large loan, consider a credit-builder or a small installment loan.
- Avoid predatory lenders. Payday loans, title loans and other predatory financing can land you deeper in debt.
- Boost your application. Show proof of stable income and job history, lower your debt-to-income ratio and explain specifics like medical debt or divorce.
- Compare offers. Use comparison sites to see which offers you're pre-qualified for and review their APRs, fees and repayment terms.
Shopping for a personal loan
It is possible to pre-qualify for a personal loan without hurting your credit score. Do some research before you apply. Read reviews and learn what to consider before agreeing to take on a loan.
When you're ready to apply, follow these steps to avoid hurting your score too much.
- Shop around for the best rate. Avoid hard inquiries by knowing your credit score before you submit a formal application so you know what you might qualify for. Many lenders will allow you to submit a prequalification form. Or consider using a lending platform (such as Upstart or LendingTree) to view multiple offers at once.
- Decide on the best offer. Choose the loan with the best monthly payment and interest rate for your budget. Be sure to look at how much the loan will cost you over the full length of the term and decide if the cost is worth it.
- Submit a formal application. Have your social security number on hand, as well as supporting documents such as bank statements and pay stubs.
- Wait for final approval. This could take just a few minutes, an hour or up to 10 days. To expedite approval, apply during normal business hours and submit the required documents immediately.
- Get your funds. Once your loan is approved, you'll be asked to input your bank account information so the funds are deposited into your account. You may be able to request a paper check or, in the case of a consolidation loan, have funds sent directly to your creditors.
FAQs
What's a good credit score for a personal loan?
Most personal loan lenders prefer applicants with good to excellent credit scores, which means a FICO Score of at least 670. The higher your score, the more likely you'll be to get approved for the best rates.
What's the easiest loan to get with bad credit?
The easiest financing to get with bad credit are payday loans, but they can charge triple-digit interest rates and come with opaque fees.
While credit scores below 580 are considered poor, you still have access to traditional personal loans. Keep in mind you'll be subjected to higher interest rates and may only qualify for shorter repayment terms.
Can you pay off a personal loan early?
It's advantageous to pay off a personal loan early since you'll save on interest charges. Just make sure the lender doesn't charge any prepayment penalties for paying off your loan early.
Can I get a $10,000 loan with a 500 credit score?
It may be challenging, but not impossible, to get a $10,000 loan with a 500 credit score. It can depend on a number of factors, such as the specific lender you're applying to, whether you can prove that you have sufficient income that will allow you to pay off the loan, as well as if you have a co-signer with better credit.
What's the 2-2-2 credit rule?
The 2-2-2 credit rule is an underwriting guideline that can help lenders (and possibly borrowers) figure out if their application may be creditworthy enough for a loan or other line of credit. The guideline explains that you should aim for two active credit accounts established in the last two years and have a record of on-time payments for at least two years. Meeting these guidelines indicates to lenders that you have a stable history of credit payments.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal loan list is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best personal loans.
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Our methodology
To determine which personal loans are the best for consumers with a credit score of 580 or lower, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions. When possible, we chose loans with no origination or sign-up fees, but we also included options for borrowers with lower credit scores. Some of those options have origination fees.
When narrowing down and ranking the best personal loans, we focused on the following features:
- Fixed-rate APR:Â Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
- Loan amounts/terms:Â Each lender provides more than one financing option that you can customize based on your monthly budget and how long you need to pay back your loan.
- Fees and penalties:Â The lenders on our list do not charge borrowers for paying off loans early.
- Application process:Â We considered whether lenders offered same-day approval decisions and a fast online application process.Â
- Customer support:Â Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
- Fund disbursement:Â The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
- Discounts:Â We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
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