Can You Get a Personal Loan With Bad Credit?
Yes, you can get a personal loan with bad credit. While traditional banks typically require scores of 660+, many online lenders specialize in bad credit loans with minimum scores as low as 500-580. Expect higher interest rates (18-36% APR) compared to prime borrowers, but approval is possible.
Key Takeaway: Focus on lenders that consider factors beyond credit score, such as income, employment history, and debt-to-income ratio. A co-signer can also dramatically improve your approval odds and interest rate.
Best Personal Loan Lenders for Bad Credit
1. Upstart - Best for Limited Credit History
- Minimum Score: 300 (uses AI underwriting)
- APR Range: 6.7% - 35.99%
- Loan Amounts: $1,000 - $50,000
2. Avant - Best for Fair Credit
- Minimum Score: 580
- APR Range: 9.95% - 35.99%
- Loan Amounts: $2,000 - $35,000
3. OneMain Financial - Best for In-Person Service
- Minimum Score: None stated (considers overall profile)
- APR Range: 18% - 35.99%
- Loan Amounts: $1,500 - $20,000
5 Strategies to Get Approved With Bad Credit
1. Check and Fix Your Credit Report
Review your credit report for errors. Disputing inaccurate negative items can boost your score quickly. Learn about credit repair to maximize your score before applying.
2. Apply With a Co-Signer
A co-signer with good credit (700+) can help you qualify and secure a lower interest rate. They're equally responsible for repayment if you default.
3. Offer Collateral
Secured personal loans backed by a car, savings account, or other asset are easier to get approved for and offer lower rates.
4. Show Stable Income
Provide recent pay stubs, tax returns, or bank statements showing consistent income. Lenders want to see you can afford payments.
5. Start With a Smaller Amount
Request a smaller loan amount to increase approval odds. You can build a payment history and request more later.
What to Expect With Bad Credit Loans
- Higher APRs: 18-36% vs 6-12% for prime borrowers
- Lower Loan Amounts: $1,000-$15,000 typical for first loans
- Shorter Terms: 24-60 months
- Origination Fees: 1-8% of loan amount
Pro Tip: Prequalify Without Hurting Your Credit
Most online lenders offer prequalification with a soft credit check that won't impact your score. Compare offers from multiple lenders before formally applying.
Need a personal loan but worried about approval? Contact Rrova to explore your options and get matched with lenders that work with your credit profile.