Personal loans with bad credit: what to expect
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%.
With a credit score below 580, fewer lenders may return offers, and rates are higher. Pre-qualifying shows whether any lender in our network can work with you, without affecting your credit.
Checking your rate uses a soft credit pull. Accepting an offer and finishing a lender's application may lead to a hard inquiry.
- Encrypted and secure
- No credit impact
- CLO never sees your application
- Free, no obligation
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.
Credit score ranges
| Credit tier | FICO score |
|---|---|
| Exceptional | 800 to 850 |
| Very good | 740 to 799 |
| Good | 670 to 739 |
| Fair | 580 to 669 |
| Poor | 300 to 579 |
Ranges based on FICO Score bands. Our application asks you to pick from slightly different bands: Excellent (720+), Good (660 to 719), Fair (620 to 659) and Poor (below 620).
Pre-qualified offers are estimates, not final approvals. The lender will verify your information, may run a hard credit check, and can change the terms or decline the application.
Compare the APR and total cost before you accept. If no offer fits your budget, you don’t have to take one.
See which lenders will work with you
Pre-qualify in minutes. Checking your rate won't affect your credit score.
Checking your rate uses a soft credit pull. Accepting an offer and finishing a lender's application may lead to a hard inquiry.
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
Ready to compare offers?
Pre-qualify in minutes. Checking your rate won't affect your credit score.
Checking your rate uses a soft credit pull. Accepting an offer and finishing a lender's application may lead to a hard inquiry.