A 500 credit score is considered poor, but it doesn't mean you're out of options. Several legitimate lenders specialize in borrowers with credit scores in the 500–549 range. The tradeoff is higher interest rates — typically 25–36% APR — reflecting the increased risk to the lender.
Best Lenders for 500 Credit Score
Rates verified May 2026 · Updated weekly
| Lender | Min. Score | APR Range | Loan Amounts | Best For | Action |
|---|---|---|---|---|---|
| Upstart TOP PICK | No minimum | 6.20% – 35.99% | $1,000 – $75,000 | Uses AI to evaluate education & employment; accepts 500+ scores | Check Rate → |
 Avant |
580 | 9.95% – 35.99% | $2,000 – $35,000 | Designed for fair/bad credit; fast funding | Compare |
| OppLoans | None | 160% – 179% | $500 – $4,000 | Last resort only — very high rates | Compare |
What to Expect with a 500 Credit Score
With a 500 credit score, expect APRs of 25–36%, origination fees of 5–12%, and loan amounts capped at $10,000–$15,000 from most lenders. Upstart is the strongest option because it evaluates factors beyond credit score, including your education and employment history.
WISEIQ TOP PICK
Check Your Upstart Rate — No Credit Score Minimum
AI-powered underwriting · Rates from 6.20% APR · Up to $75,000 · Funds in 1 business day · Soft pull to check rate
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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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How to Improve Your 500 Credit Score
While you can get a loan now, improving your credit score before applying — even by 20–30 points — can save hundreds in interest. Here's what moves the needle fastest:
- Pay all bills on time — payment history is 35% of your score
- Pay down credit card balances below 30% utilization
- Dispute any errors on your credit report
- Avoid applying for new credit cards while rebuilding
- Consider a secured credit card to build positive history
Credit Score Range Overview
Rates verified May 2026 · Updated weekly
| Score Range | Rating | Typical APR Range |
|---|---|---|
| 300–579 | Poor | 25% – 36% |
| 580–669 | Fair | 15% – 25% |
| 670–739 | Good | 8% – 15% |
| 740–799 | Very Good | 6% – 10% |
| 800–850 | Exceptional | 6% – 8% |
How to Improve a 500 Credit Score
Pay every bill on time starting today
Payment history is 35% of your FICO score — the single largest factor. Even one on-time payment starts rebuilding your score. Set up autopay for every account to ensure you never miss a payment.
Become an authorized user on someone else's account
If a family member or trusted friend has a credit card with a long history and low utilization, ask to be added as an authorized user. Their positive history can appear on your credit report and boost your score.
Dispute any errors on your credit report
At a 500 score, errors are common. Get your free credit reports at AnnualCreditReport.com and dispute any inaccurate negative items. Removing even one incorrect collection account can raise your score 20–40 points.
Frequently Asked Questions
Can I get a personal loan with a 500 credit score?
Yes, but options are limited. Upstart is the best option because it has no minimum credit score requirement and uses AI underwriting that considers your education and employment history. Expect APRs of 25–36% at a 500 score. OppLoans and Avant require a minimum of 580.
How long does it take to improve a 500 credit score?
With consistent on-time payments and reduced credit utilization, most borrowers see a 500 score improve to 580–620 within 12–18 months. The fastest improvements come from paying down credit card balances (reduces utilization) and disputing errors.
What loan amount can I get with a 500 credit score?
At a 500 score, most lenders will approve smaller amounts ($1,000–$5,000) to limit their risk. Upstart may approve up to $75,000 depending on your income and employment history, but most 500-score borrowers receive offers in the $1,000–$10,000 range.
Will applying for a loan hurt my 500 credit score?
A hard credit inquiry typically reduces your score by 2–5 points temporarily. At a 500 score, this is a minor impact. Pre-qualifying with Upstart uses a soft pull (no impact). Only the final application triggers a hard pull.
What is the monthly payment on a $5,000 loan with a 500 credit score?
At 35% APR (typical for a 500 score) over 36 months, a $5,000 loan would have a monthly payment of approximately $225 and total repayment of $8,100. Use WiseIQ's personal loan calculator to see exact payments for your loan amount and term.
Rates and terms are current as of April 08, 2026 and subject to change. WiseIQ may earn a referral fee from some lenders. Credit score ranges are approximate; individual lender decisions vary. Always check your rate with a soft pull before applying.
Quick Summary
Score: 500–549
500
Bad Credit
Best Lender: Upstart
Starting APR: 6.20%
Max Amount: $75,000
Min. Score: None
Check Upstart Rate →
Starting APR: 6.20%
Max Amount: $75,000
Min. Score: None