Personal loans for bad credit
With a FICO score below 580, approval is harder and costs are high, but options exist. Compare carefully, borrow small, and avoid payday and high-fee lenders. Federal credit unions offer payday alternative loans with APRs capped at 28%.
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Loan terms from 2 to 60 months. Rates vary depending on the lender, your credit and your state. Maximum APR is 35.99%.
Safer options to check
- Payday alternative loans (PALs) from federal credit unions: small loans with APRs capped at 28%.
- Secured personal loans backed by savings or a CD, which often price better.
- A co-applicant with stronger credit.
Avoid
- Payday loans and car title loans, which can carry triple-digit APRs.
- Any lender that asks for an upfront fee before funding. That's a common scam sign.
- Lenders that guarantee approval without checking anything.
Rebuild while you borrow
- Set up autopay so every payment is on time.
- Keep card balances low.
- Check your credit reports for errors and dispute them.
The score ranges on this page are FICO’s standard ranges. Our application asks you to pick from slightly different bands: Excellent (720+), Good (660 to 719), Fair (620 to 659) and Poor (below 620).
See which lenders will work with you
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Common questions
Can I get a personal loan with a 550 credit score?
Some lenders approve scores in that range, usually with higher APRs and smaller amounts. Credit union payday alternative loans are a safer option to check.
What is a payday alternative loan?
A small loan offered by federal credit unions, with the APR capped at 28%. It's designed as a cheaper alternative to payday loans.
Is a guaranteed approval loan real?
Legitimate lenders check credit or income before approving. Treat guaranteed approval and upfront fees as warning signs.
Sources
- Short-Term, Small Amount Loans (payday alternative loan rule), National Credit Union Administration, Federal Register
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