Can You Get a Personal Loan With Bad Credit?

If your credit score has taken a beating, you might assume that borrowing money is off the table entirely. The good news is that a personal loan with bad credit is often still possible. The harder truth is that it will cost more, and you will need to shop carefully to avoid predatory traps. This guide explains who lends to borrowers with damaged credit, what to expect in terms of rates and fees, and how to improve your chances of approval on reasonable terms.

Yes, It Can Be Done

Bad credit generally refers to a FICO score below roughly 580, with the “fair” range stretching up to about 669. Plenty of lenders specialize in this space, but they price for the higher risk. Expect annual percentage rates that climb toward the legal maximum many lenders charge, which is 35.99%. Bad-credit personal loans commonly range from around $1,000 to $10,000, though some lenders go higher, and APRs frequently land in the 15% to 35.99% band. The lower your score, the closer to the top of that range your offer is likely to be.

Lenders Worth Knowing for Lower Scores

Several established lenders are repeatedly named as accessible options for fair and poor credit. Their terms vary, so treat these as starting points rather than recommendations:

• Upstart: Looks beyond the score, factoring in education, employment, and income. It considers applicants with scores as low as 300 or no credit history, with APRs roughly from 6.6% to 35.99% and loan amounts from about $1,000 to $50,000.
• Avant: Targets fair-credit borrowers with a typical minimum score around 580, loans of $2,000 to $35,000, and funding as soon as the next business day. Note that it may charge an administration (origination) fee.
• OneMain Financial: Does not require a minimum credit score and looks at your full financial picture. It offers secured options using collateral like a vehicle, and can fund quickly, sometimes within hours of approval.

Each of these typically lets you check estimated rates with a soft credit pull, so you can compare without harming your score.

The Real Cost of Borrowing With Damaged Credit

It is worth pausing on what a high APR actually means for your wallet. A loan at 30% costs dramatically more over its life than one at 12%, and stretching repayment over a longer term to lower the monthly payment only compounds the total interest. On top of interest, many bad-credit loans carry an origination fee, often deducted from your proceeds, which can run up to nearly 10% of the loan amount. That means you might be approved for $5,000 but receive noticeably less in your account.

Before signing, calculate the total amount you will repay, not just the monthly payment. Sometimes borrowing a smaller amount, or waiting a few months to improve your credit, is the cheaper path.

Weighing the Pros and Cons

• Pros: Access to funds when other doors are closed; the chance to consolidate higher-cost debt like payday loans; fixed monthly payments and a clear payoff date; and an opportunity to rebuild credit, since on-time payments are reported to the bureaus.
• Cons: High interest rates that make the loan expensive; possible origination fees that reduce your cash; smaller loan limits; and the risk of falling deeper into debt if the payment strains an already tight budget.

Steps to Strengthen a Weak Application

You are not powerless against a low score. A few moves can widen your options and lower your rate:

• Add a co-signer with stronger credit, which can unlock approval and a better rate, though it puts their credit on the line.
• Consider a secured loan backed by collateral such as a car or savings account, which reduces the lender’s risk.
• Apply for only what you need, since a smaller loan is easier to approve and cheaper to repay.
• Lower your debt-to-income ratio by paying down a balance before applying.
• Correct credit-report errors, as inaccurate negative marks can be disputed and removed.

Traps to Steer Clear Of

Desperation makes people vulnerable, and predatory lenders know it. Be wary of any offer that guarantees approval with no credit check, demands an upfront fee before funding, or pushes a payday or title loan with triple-digit APRs. These products are designed to keep borrowers cycling through debt. A legitimate lender will check your credit in some form, disclose all fees clearly, and never ask you to pay money to receive your loan. If an offer feels rushed or too good to be true, walk away.

The Bottom Line

Bad credit narrows your choices and raises your costs, but it does not lock you out of the personal-loan market. By prequalifying with reputable lenders, comparing the full cost including fees, and using tools like co-signers or collateral, you can find financing on terms you can actually manage. Used wisely, the loan can even become a stepping stone back to healthier credit.

This article is for general informational purposes only and does not constitute financial advice. Rates, fees, and terms are subject to change — verify the latest details with the lender before applying.