Our take in 10 seconds
Under 580, real options exist but they're expensive — 25–36% APR. If your need can wait six months, a credit-builder product plus on-time payments usually beats any loan at that price. If it can't wait, soft-pull quotes only, and never touch payday or title loans.
Having bad credit (below 580) doesn't mean you can't get a personal loan — it means you need to find the right lender. Several reputable online lenders specialize in bad credit borrowers and offer rates far below payday loan alternatives.
WiseIQ Expert Tip
Before accepting any loan offer, calculate the total cost of the loan (principal + all interest + fees). A lower monthly payment often means paying thousands more over the life of the loan.
6–36%
APR Range
$1K–$50K
Loan Amounts
24–60 mo
Typical Terms
UpstartAccepts 580+ credit score, rates from 6.40% APRTop Picks at a Glance
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Avant580+ credit score, next-day funding, soft pull pre-qual✓ Pros
- Fixed monthly payments
- Lower APR than credit cards
- No collateral required
- Fast funding (1–3 business days)
✗ Cons
- Origination fees (1–8%)
- Hard credit inquiry required
- Prepayment penalties possible
- Higher rates for bad credit
How We Chose These Picks
WiseIQ's editorial team evaluated each option based on annual fees, rewards rates, approval requirements, customer service ratings, and overall value for the target user. All rates and terms are verified as of April 2026.
💡 Expert Tip: Pre-qualify with multiple lenders before applying. Pre-qualification uses a soft credit pull and won't affect your credit score.
LendingPoint580+ credit score, same-day funding available
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Who Should Look Elsewhere
A personal loan is not the right tool for every situation. Consider alternatives if any of the following apply to you:
- You have home equity: A HELOC typically offers rates 5–10% lower than personal loans. If you own your home, compare HELOC rates before taking a personal loan.
- Your debt is primarily credit card debt: A balance transfer card with a 0% intro APR (typically 12–21 months) will cost less than a personal loan if you can pay off the balance within the intro period.
- You need less than $1,000: Most personal loan lenders have minimum amounts of $1,000–$2,000. For smaller needs, a credit union payday alternative loan (PAL) or a 0% APR credit card may be more appropriate.
- Your credit score is below 500: Most personal loan lenders — including those that accept "bad credit" — have practical minimums around 500–560. Below this, secured loans, credit-builder loans, or co-signer arrangements are more realistic options.
- You are in active bankruptcy: Personal loan lenders will decline applicants in active Chapter 7 or Chapter 13 proceedings. Resolve your bankruptcy first.
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Who gets paid on this page
Upstart — if you check your rate and take a loanpays us a commission
Every other lender named here (SoFi, Upgrade, Best Egg, Avant, Prosper, OneMain...)pays us $0
You — no fees, no email required, ever$0
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Frequently Asked Questions
What credit score do I need for a personal loan?
Most major lenders require a minimum score of 580–640. Upstart accepts scores as low as 580; OppLoans and OneMain Financial have no stated minimum credit score.
What's the best personal loan for bad credit?
Upstart is the best overall option for bad credit borrowers — it accepts scores as low as 580 and uses AI to evaluate factors beyond credit score, resulting in lower rates than most bad-credit lenders.
Can I get a personal loan with a 500 credit score?
Yes. Upstart (580+ minimum), OppLoans (no minimum), and OneMain Financial (no stated minimum) all offer personal loans to borrowers with scores around 500.
What's the difference between a bad credit personal loan and a payday loan?
Personal loans have fixed monthly payments, longer terms (12–60 months), and APRs typically under 36%. Payday loans require full repayment on your next payday and often carry APRs of 300%–400%. Personal loans are almost always the better option.