Getting a personal loan with bad credit is challenging, but not impossible. In 2026, a growing number of lenders specialize in working with borrowers who have credit scores below 580. While rates are higher than those offered to prime borrowers, a personal loan can still be a better option than payday loans or credit card cash advances.
Bad credit personal loans typically carry APRs between 18% and 35.99%, depending on your credit score, income, and debt-to-income ratio. The key is finding a reputable lender and understanding the total cost before signing.
Best lenders for bad credit in 2026
Upstart: Uses AI to evaluate factors beyond your credit score, including education and employment history. Minimum credit score is around 300, making it accessible to most borrowers. APRs range from 7.8% to 35.99%. Loan amounts from $1,000 to $50,000.
Avant: Specializes in loans for borrowers with fair to poor credit. Minimum credit score of 580. APRs range from 9.95% to 35.99%. Loan amounts from $2,000 to $35,000. Funds can be deposited as soon as the next business day.
LendingPoint: Minimum credit score of 600. APRs from 7.99% to 35.99%. Loan amounts from $2,000 to $36,500. LendingPoint considers your overall financial picture, not just your credit score.
OneMain Financial: Offers both secured and unsecured loans. No minimum credit score required. APRs range from 18% to 35.99%. Loan amounts from $1,500 to $20,000. OneMain has physical branches, which is helpful if you prefer in-person service.
Credit unions: Many credit unions offer payday alternative loans (PALs) with maximum APRs of 28% and terms up to 12 months. If you are a member of a credit union, this is often the most affordable option for small loans.
How to improve your approval odds
- Check your credit report for errors and dispute any inaccuracies before applying.
- Reduce your credit card balances to lower your credit utilization ratio.
- Consider adding a co-signer with good credit to improve your terms.
- Apply for prequalification with soft credit checks to compare offers without hurting your score.
- Choose a secured loan if you have an asset (like a vehicle) to use as collateral.
What to avoid
- Payday loans with APRs exceeding 400%.
- Lenders who guarantee approval without checking your credit.
- Loans with origination fees exceeding 8% of the loan amount.
- Any lender that pressures you to sign immediately or asks for upfront fees before approval.
Final thoughts
A personal loan can be a useful tool for consolidating high-interest debt or covering emergency expenses, even with bad credit. Focus on improving your credit score over time to qualify for better rates in the future. Always compare the total cost of borrowing, not just the monthly payment.