⚠️ Important: Avoid Predatory Lenders
Having bad credit makes you a target for predatory lenders. Never accept:
- APRs above 36% (this is predatory)
- Payday loans or title loans
- Upfront fees before approval
- "Guaranteed approval" offers
Our Top Picks for Bad Credit
These lenders work with borrowers who have credit scores between 580-639. Yes, rates will be higher than prime borrowers get, but they're legitimate lenders with reasonable terms.
Why we recommend it: Upgrade is one of the few legitimate lenders that accepts 580+ credit scores. They also offer secured loan options where you can use your car as collateral for better rates. Free credit monitoring included.
Why we recommend it: Upstart's AI considers more than just credit score—it looks at education, employment, and earning potential. If you're young or have limited credit history but stable income, you may get approved here when others deny you.
Why we recommend it: Avant has been lending to fair/bad credit borrowers since 2012. They're transparent about fees, have reasonable rates for the credit range, and have a good mobile app for managing your loan.
Tips to Improve Your Approval Odds
✓ Before You Apply
- Check your credit report for errors — 1 in 5 reports have mistakes. Fixing them could boost your score.
- Pay down credit card balances — Getting under 30% utilization can help quickly.
- Consider a co-signer — A creditworthy co-signer can significantly improve your terms.
- Show stable income — Lenders want to see you can repay. Have pay stubs ready.
- Pre-qualify first — Use soft pull pre-qualification to check rates without hurting your score.
- Start small — A smaller loan is easier to get approved for and can build your credit history.
What to Expect with Bad Credit
Being realistic about your situation helps you make better decisions:
- Higher APRs: Expect rates between 20-36% instead of the 6-12% prime borrowers get
- Lower loan amounts: You may be approved for less than requested
- Shorter terms: Some lenders limit terms for higher-risk borrowers
- Origination fees: More common with bad credit lenders (usually 1-8%)
Silver lining: Making on-time payments on your personal loan will help rebuild your credit over time, potentially qualifying you for better rates in the future.