Best Personal Loans for Bad Credit (2026)

Personal loan lenders that work with borrowers who have credit scores below 600. We compared APRs, fees, minimum credit requirements, and funding speed to find lenders that actually approve bad credit applicants.

Written by Harvey Brooks, Senior Financial Editor

TL;DR Quick summary

If your score is under 600, expect APRs from 18-36%. Upstart uses AI and may approve borrowers traditional lenders reject. Avant and LendingPoint are solid options. Always compare at least 3 offers — prequalification doesn't affect your credit score.

Key Takeaways

  • Bad credit personal loans typically carry APRs between 18-36%
  • Prequalification uses a soft pull and won't hurt your credit score
  • Secured loans (backed by collateral) often have lower rates
  • Watch for origination fees that can add 1-8% to your loan cost
  • Making on-time payments can improve your credit score over time

Getting a personal loan with bad credit is difficult but not impossible. Many lenders specialize in working with borrowers who have scores below 600 or limited credit history. The trade-off is typically higher APRs and stricter terms, but the right lender can still offer reasonable rates compared to payday loans or credit cards. We evaluated dozens of lenders on their actual approval rates for subprime borrowers, APR ranges, origination fees, and repayment flexibility. Here are the best options for 2026.

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VIVA Finance, Inc. logo

VIVA Finance, Inc.

4.9/5
From Free/mo BBB: A+ Free Consultation

VIVA Finance offers affordable fixed-rate personal loans from $300 to $10,000 at 11.99%–35.99% APR. Approvals based on employment history, not just credit score. BBB A+ rated, founded 2019.

Employment-based approval — not just credit score, giving access to borrowers traditional banks reject
Competitive APR range (11.99%–35.99%) — far below payday loan rates
No prepayment penalties — pay off early without extra fees
Read Full Review Visit VIVA Finance, Inc.
2
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OppFi

3.5/5
From Free/mo BBB: A+

Personal installment loans for consumers with poor credit (580+ FICO). $500-$4,000, repaid over 6-18 months. Reports to credit bureaus to help build credit.

Accepts very low credit scores (350+)
Structured installment loans (not payday)
Reports to credit bureaus — builds credit history
Read Full Review Visit OppFi
3
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Avant

4.5/5
From Free/mo BBB: NR Free Consultation

Avant is a credit repair provider based in Chicago, Illinois. Rated 4.5/5 with 3,471 Google reviews, reflecting excellent customer satisfaction.

Highly rated by customers (4.5/5 on Google)
Well-established with 3,471+ customer reviews
Google-verified business
Read Full Review Visit Avant
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Upgrade, Inc.

4.8/5
From Free/mo BBB: NR Free Consultation

Upgrade, Inc. is a personal lending provider based in San Francisco, California. Rated 4.8/5 with 10,556 Google reviews, reflecting exceptional customer satisfaction.

Highly rated by customers (4.8/5 on Google)
Well-established with 10,556+ customer reviews
Google-verified business
Read Full Review Visit Upgrade, Inc.
5
U

Upstart

3.9/5
From Free/mo BBB: NR Free Consultation

Upstart is a credit repair provider based in San Mateo, California. Rated 3.9/5 with 182 Google reviews, reflecting solid customer satisfaction.

Established track record with 182 customer reviews
Google-verified business
Online presence for easy access to information
Read Full Review Visit Upstart
6
LendingTree logo

LendingTree

4.5/5
From Free/mo BBB: A+ Free Consultation

LendingTree is a leading online lending marketplace where borrowers compare offers from multiple lenders in one place. Founded 1996, publicly traded (NASDAQ: TREE), BBB A+ rated.

Compare multiple lender offers with one application — saves time and effort
Soft credit pull for initial comparison — no impact on credit score
Covers all major loan types: personal, mortgage, auto, business, student
Read Full Review Visit LendingTree
7
World Finance logo

World Finance

5.0/5
From Free/mo BBB: NR

World Finance offers fixed-rate personal installment loans up to $12,000 for subprime borrowers, plus in-branch tax prep, in 16 states across the South and Midwest.

Founded in 1962 — over 60 years of experience serving consumer installment loan borrowers
Approves loans in approximately 60 minutes, including applicants with poor or no credit history
Fixed rates with no hidden fees; full APR range of 20.99%–81.29% disclosed upfront
Read Full Review Visit World Finance
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A

Affirm

3.5/5
From Free/mo BBB:

Buy now, pay later at checkout. Split purchases into 4 biweekly payments (0% APR) or 6-60 monthly payments. No late fees, no hidden charges. Publicly traded (NASDAQ: AFRM).

Absolutely no late fees or hidden charges
0% APR available on many purchases
Founded by PayPal co-founder
Read Full Review Visit Affirm

Frequently Asked Questions

Can I get a personal loan with a 500 credit score?

Yes, several lenders specialize in bad credit personal loans. Expect higher interest rates (25-36% APR) and lower loan amounts ($1,000-$5,000). Secured loans or credit union options may offer better terms.

What is the easiest personal loan to get approved for?

Online lenders like Upstart, Avant, and OppFi have more flexible approval criteria than traditional banks. Credit unions also tend to be more lenient with members. Secured personal loans have the highest approval rates.

Do personal loans hurt your credit score?

Prequalification uses a soft pull (no impact). The formal application triggers a hard inquiry (small temporary dip). Once approved, on-time payments help build your credit. The loan also improves your credit mix, which counts for 10% of your FICO score.

How much can I borrow with bad credit?

Most bad credit lenders offer $1,000-$10,000 for first-time borrowers. Some like Avant go up to $35,000 for qualified applicants. Your income, debt-to-income ratio, and employment history matter as much as your credit score.

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Harvey Brooks

Senior Financial Editor

Harvey Brooks is a consumer finance writer specializing in credit repair, personal lending, and debt management. With over a decade covering the industry, he makes financial literacy accessible to everyday Americans. About our editorial team.

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