A low credit score doesn’t close every door. It closes the cheap ones first and leaves the expensive ones wide open. Search “bad credit loan” and most of what you’ll see is lead sites, payday lenders and “guaranteed approval” ads, while the places that actually lend to people with damaged credit at a capped price barely show up.
So we did the legwork. We picked ten real places that lend to people with fair or poor credit, read each one’s current rate disclosures, and confirmed the phone number, website and fine print that matter: the top APR, the fee taken out before you see a dime, how fast the money arrives and who’s actually making the loan. Then we ran the numbers on what a $5,000 loan really costs at bad-credit rates, so you can see which offer to take and which to walk away from.
Eight Straight Answers About Borrowing With Bad Credit
These are the questions people ask before they call a lender. The details follow.
On the FICO scale, 300 to 579 is “poor” and 580 to 669 is “fair.” Most of the lenders below will consider scores in both ranges; few publish a hard minimum.
A federal credit union. Its payday alternative loans of $200 to $2,000 are capped at 28% APR with an application fee of no more than $20.
The average personal loan rate was 12.55% in late October for a 700 score. With a score under 600, offers near 30% to 36% are common.
Usually not. Most online lenders let you see offers with a soft inquiry. The hard pull comes only when you accept a loan.
Yes. Oportun says prior credit history isn’t required, and Mission Asset Fund’s 0% lending circles accept an SSN or ITIN.
The origination fee. At 9.99%, a $5,000 loan puts only $4,501 in your account, and the true APR on a 35.99% loan climbs to about 45%.
Often yes. Joint applications and car-secured loans can cut the rate or raise the amount, but you put a co-borrower’s credit or your car on the line.
They’re almost always payday, title or lead-generation products, and any request for an upfront fee is a scam.
10 Places to Get a Loan With Bad Credit, and How to Reach Them
Ordered roughly from cheapest to most expensive for someone with damaged credit. Every number below came from the lender’s own site or official help page when we checked.
Federal credit unions can make payday alternative loans (PALs) under NCUA rules: PAL I loans of $200 to $1,000 over one to six months, and PAL II loans of up to $2,000 over up to twelve months. The APR can’t top 28%, and the application fee is capped at $20. Credit unions look at your membership and income, not just your score. PAL I usually requires a short membership period first; PAL II can be made right after you join, if the credit union offers it. Not every credit union does, so call and ask by name.
This San Francisco nonprofit runs “Lending Circles”: 6 to 12 people each pay $50 to $200 a month, and each month one member receives the pot, from $300 to $2,400. The loans carry no interest, and MAF reports payments to all three credit bureaus; the group says participants raise their scores by 168 points on average. It’s open nationally, accepts an SSN or ITIN, and has no citizenship requirement. You’ll need a checking account, ID and proof of income, plus a short online financial course. The catch: you may not get the money right away, since your turn depends on your place in the circle.
Oportun says a prior credit history isn’t required, though it does pull your report. Unsecured loans run from $300 to $10,000; new customers typically get $500 to $4,000. Its own sample loans show APRs around 35%, with an administrative fee of up to 10%, and payments every two weeks. In Arizona, California, Florida, Illinois, Nevada, New Jersey, Texas and Utah, you can borrow more, $2,525 to $18,500, by pledging a car with a clear title. It’s expensive money, but it’s a regulated installment loan with fixed payments, not a two-week payday trap.
OneMain lends $1,500 to $30,000 at fixed APRs of 11.99% to 35.99%, over two to five years. You can apply online and finish at one of more than 1,300 branches, which helps if you’d rather talk through your situation with a person. Larger loans require a first lien on a vehicle no more than ten years old. The origination fee is either a flat $25 to $500 or 1% to 10% of the loan, depending on your state. Funds can arrive as soon as an hour after signing if sent to a debit card.
Mariner offers $1,000 to $25,000 at 15.99% to 35.99% APR over 12 to 72 months, online or through branches. Checking offers uses a soft inquiry. One feature we haven’t seen elsewhere: if you repay the loan in full with certified funds within 15 days, Mariner waives the finance charges. Its own example shows the cost clearly: a $5,000 loan at 30.99% over 48 months means payments of $182.91 and $3,779.68 in finance charges. Some loans may be secured by a car, and the lender can repossess it if you don’t pay.
Avant-branded loans are issued by WebBank and range from $2,000 to $35,000 at 9.95% to 35.99% APR over two to five years. The administration fee runs up to 9.99% and comes out of your loan. Customer service is open 7 a.m. to 10 p.m. Central on weekdays and 7 a.m. to 8 p.m. on weekends, which is handy if you work days.
Upgrade lends $1,000 to $50,000 at 7.74% to 35.99% APR, with terms up to 84 months and an origination fee of 1.85% to 9.99%. It accepts joint applications, and may offer a lower rate if you secure the loan with your car. Funds go out within one business day after verification. Phone support runs seven days a week.
Upstart says it looks at your wider financial profile, not just your score. Loans run $1,000 to $75,000 on three- or five-year terms, at 6.3% to 35.99% APR based on June offers. Its example origination fee was 8.15%. Upstart reports that 65% of customers had transfers started within 24 hours of signing in June. State minimums apply, such as $3,100 in Georgia and $7,000 in Massachusetts.
LendingClub Bank became Happen Bank this year, and its old loan pages now redirect to happen.com. Personal loans run $1,000 to $75,000 at 5.96% to 35.99% APR over two to seven years, with an origination fee of 0% to 8%. You can apply with a co-borrower to improve your odds or rate, and Happen can pay your card balances directly, which keeps consolidation money from getting spent on something else. It says 64% of loans approved on a business day in early 2026 were funded within 24 hours.
Community development financial institutions are certified lenders whose job is serving people and places banks skip. Most focus on small businesses and housing, but some, especially community development credit unions, make small personal, credit-builder or debt-refinance loans with counseling built in. Opportunity Finance Network runs a free locator of its member CDFIs. Search your area and call to ask whether they offer consumer loans; the ones that do are often the most flexible lenders you’ll find.
All 10 Side by Side
The same information in one place, so you can match a lender to how much you need and how your credit looks.
| Place | APR | Amount | Upfront fee | Standout | Contact |
|---|---|---|---|---|---|
| Credit union PAL | Max 28% | $200 to $2,000 | Max $20 | Cheapest regulated option | mapping.ncua.gov |
| Mission Asset Fund | 0% | $300 to $2,400 | None listed | ITIN accepted; builds credit | 888-274-4808 |
| Oportun | Samples ≈35% | $300 to $10,000 | Up to 10% | No credit history needed | (866) 488-6090 |
| OneMain Financial | 11.99% to 35.99% | $1,500 to $30,000 | $25 to $500 or 1% to 10% | 1,300+ branches | (800) 961-5577 |
| Mariner Finance | 15.99% to 35.99% | $1,000 to $25,000 | May apply | 15-day money-back window | 877-310-2373 |
| Avant | 9.95% to 35.99% | $2,000 to $35,000 | Up to 9.99% | Long support hours | 800-712-5407 |
| Upgrade | 7.74% to 35.99% | $1,000 to $50,000 | 1.85% to 9.99% | Joint or car-secured | (844) 319-3909 |
| Upstart | 6.3% to 35.99% | $1,000 to $75,000 | Example 8.15% | Looks past the score | 1-855-438-8778 |
| Happen | 5.96% to 35.99% | $1,000 to $75,000 | 0% to 8% | Pays creditors directly | happen.com |
| CDFI lenders | Varies | Varies | Varies | Counseling built in | OFN locator |
When we put these ten next to each other, two things stood out. First, six of them top out at exactly 35.99%, and Oportun’s samples sit just below that, right under the 36% line many states and consumer groups treat as the outer limit for responsible lending. That’s not a coincidence; it’s where mainstream lenders draw the line. Anything you’re offered above 36% is a different category of product, usually payday or title lending. Second, the real differences between these lenders aren’t in their advertised ranges at all. They’re in the upfront fee, the term and whether you’ll be offered a secured loan. That’s where your money is won or lost.
What a Bad-Credit Loan Really Costs
Rates matter, but at the high end the fee and the term can matter even more. Here’s a $5,000 loan, worked through three ways.
The fee you don’t see coming
This is the single most important thing to understand about bad-credit loans. When a lender deducts the origination fee, you’re paying interest on money you never received. If you truly need $5,000 in hand, you’d have to borrow about $5,556, and over three years at 35.99% you’d pay roughly $4,160 in interest and fees to get $5,000 of cash. When we compared offers, a loan with a higher APR and no fee sometimes beat a lower APR with a big fee. Always look at the amount deposited and the total of payments together.
Stretching the term doubles the bill
Bad-Credit Loan Calculator
Type in the cash you actually need, then the APR, fee and term from an offer. The tool shows how much you’d have to borrow to net that cash, your monthly payment, and what the loan really costs.
To net $5,000 you’d borrow about $5,555 and repay about $9,159 in total. Counting the fee, the true APR on the cash you receive is about 44.7%.
How to Get Approved, and Get a Better Rate, With Bad Credit
You can’t fix a credit score in a week, but you can change how a lender sees your application. These steps work in this order.
Pull your free reports and fix the errors
Every American can get free reports from Equifax, Experian and TransUnion at AnnualCreditReport.com. Look for accounts you don’t recognize, late payments you actually made on time, and old debts that should have aged off. Disputing a real error is the fastest legitimate score boost there is.
Pay card balances down before you apply
How much of your card limits you’re using is a big part of your score, and it updates each time your issuers report. If you can pay a card from 90% used to under 30% before the statement closes, your score can jump within a billing cycle or two.
Show stable income, all of it
Lenders care about whether you can repay. Include side income, Social Security, disability, alimony or child support if you’re comfortable sharing it. Have recent pay stubs, bank statements or award letters ready; fast verification often means faster funding.
Add strength: a co-borrower or collateral
Upgrade and Happen accept joint applications; OneMain, Mariner, Upgrade and Oportun offer car-secured loans. A credit union may also make a share-secured loan against your own savings, usually at a low rate. Just be clear-eyed: secured means the lender can take the car, and a co-borrower is fully on the hook if you miss payments.
Borrow the smallest amount that solves the problem
A smaller request is easier to approve and cheaper to repay. If the real need is $2,200 for a car repair, don’t take the $5,000 you’re offered.
Which Situation Sounds Like Yours?
“Bad credit” covers very different stories. Here’s who to call first in each.
| Your situation | Call first | Then try | Avoid |
|---|---|---|---|
| Score under 580, need under $2,000 | Credit union PAL | Oportun | Payday and title loans |
| Score 580 to 669, consolidating cards | Happen (direct pay) | Upgrade, Avant | Debt settlement pitches |
| No credit history or ITIN | Mission Asset Fund | Oportun | “No credit check” lenders |
| Recent bankruptcy | Credit union or CDFI | OneMain branch | Upfront-fee “approvals” |
| Car paid off, need more cash | Credit union auto-secured loan | OneMain, Mariner secured | Title loans |
| Have a willing co-borrower | Upgrade or Happen joint | Credit union joint loan | Borrowing more than you need |
| Need $10,000 or more | Upstart, Happen, Upgrade | OneMain secured | 60-month terms at 36% |
No file isn’t the same as bad credit, and the fix is different. A lending circle builds a reported payment history at 0% interest, while Oportun can lend on income without a prior file. After six months of on-time payments, you’ll have a score, and the rest of this list opens up.
Benefit income counts as income. Bring your award letter. Keep the payment small relative to your monthly check, and avoid letting a lender auto-debit the account where your benefits land, so a bad month can’t wipe out your rent money. A credit union PAL or a small secured loan is usually the safest fit.
The Military Lending Act caps most consumer loans to you at a 36% military APR, counting most fees. Your branch’s relief society can make interest-free emergency loans, and military credit unions often lend to members with damaged credit. Military OneSource offers free financial counseling.
Expect to document income with bank statements and tax returns rather than pay stubs. Lenders that verify through linked bank accounts can be faster for you. Choose a monthly payment you can make in your slowest month, not your average one.
After You Get the Loan: Turning It Into Better Credit
A bad-credit loan is expensive, but it doesn’t have to be permanent. The first year of payments decides whether your next loan costs 35% or 15%.
Automate every payment
Payment history is the largest single piece of a FICO score, and one late payment can undo months of progress. Set up autopay from an account that always has a cushion on the due date, and move the due date to just after payday if the lender allows it. Some lenders also cut the rate slightly for autopay, so ask.
Pay extra when you can
At 30% or more, every extra dollar toward principal saves a lot of interest. Before you sign, confirm in the agreement that there’s no prepayment penalty, then add even $25 a month. On our $5,000 example at 35.99%, finishing a year early saves hundreds of dollars.
Check your score again in six months
After six to twelve months of on-time payments and lower card balances, many borrowers move up a score band. That’s the moment to prequalify again. If a new lender offers a meaningfully lower rate with a small or no fee, refinancing the balance can cut the remaining cost sharply. Run the numbers through the calculator above first, counting any new fee.
Don’t let the paid-off cards fill back up
If you used the loan to clear credit cards, the biggest risk is running those balances up again, which leaves you with the loan payment and new card debt at the same time. Keep the cards open for your credit history, but take them out of your wallet and off your phone’s saved payment methods until the loan is gone.
We found the pattern most worth aiming for is simple: twelve on-time loan payments, card balances under 30% of their limits, and no new hard inquiries for six months. Hit those three and the lenders on this list that quoted you near 36% are likely to offer something noticeably lower the next time you check.
Red Flags: Loans and “Lenders” to Avoid
People with low scores get targeted hard. These are the offers that cost the most or aren’t loans at all.
A real lender takes its fee out of the loan or adds it to what you repay. If someone asks for an upfront “insurance,” “processing” or “first payment” charge, especially by gift card, wire or crypto, it’s an advance-fee scam. The FTC has warned about this pattern for decades.
A two-week payday loan at $15 per $100 works out to almost 400% APR, and title loans put your car at risk. If a lender’s offer is far above 36%, you’ve left the bad-credit personal loan market and entered high-cost lending. Go back to step one on this page.
Many “bad credit loan” sites don’t lend. They sell your application, Social Security number included, to whoever pays most. Apply directly on the lender’s own website, like the ten above, and you’ll know exactly who has your information.
Where to Start Tomorrow Morning
Call a federal credit union and ask for a payday alternative loan by name. If you’re not a member, ask what it takes to join and how soon a PAL II is available. It’s the cheapest regulated loan on this list, at up to 28% APR plus a fee of no more than $20.
Prequalify with three of the online lenders above in the same afternoon. Pick the offer with the lowest total of payments after the fee, on the shortest term you can afford. Turn down anything over 36% APR.
Questions people still ask
What’s the easiest loan to get with bad credit?
Among regulated lenders, a credit union payday alternative loan and Oportun are among the most accessible, since both weigh income and membership heavily. “Easy” payday and title loans are approved quickly too, but at many times the cost.
Can I get a personal loan with a 500 credit score?
It’s possible, especially with steady income, a co-borrower or collateral, but expect APRs near the top of each lender’s range and higher fees. A lending circle or credit union is the more realistic first step.
How fast can I get the money?
OneMain says as soon as an hour after signing when paid to a debit card; Upstart and Happen often fund within 24 hours; Upgrade sends funds within a business day of verification. Credit union loans usually take a few days.
Will a bad-credit loan help my score?
Yes, if the lender reports to the bureaus and you pay on time every month. An installment loan also diversifies your credit mix. Late payments will do the opposite, so set up automatic payments from an account that always has the money.
Should I use a credit-builder loan instead?
If you don’t need cash now, yes. Credit-builder accounts, such as Self’s, hold the money until you’ve paid it off; sample plans run about $25 to $150 a month with APRs around 15% to 16%. They build history without putting more debt in your pocket.
Is LendingClub still around?
LendingClub Bank rebranded as Happen Bank in 2026, and LendingClub’s personal loan pages now point to happen.com. Existing borrowers should check their account portal for any changes to payment details.
How this page was checked. APR ranges, loan amounts, fees, funding times and phone numbers come from each lender’s own website or help center as of October 23: OneMain Financial, Mariner Finance, Avant, Upgrade, Upstart, Happen, Oportun and Mission Asset Fund. Payday alternative loan limits come from NCUA rules; the NCUA consumer line from MyCreditUnion.gov. The average personal loan rate is Bankrate’s October 21 figure. The LendingClub rebrand was reported by Crowdfund Insider. Self’s sample plans come from Crediful’s September review. All cost examples, true-APR figures and charts are our own calculations. Lenders change rates and terms often; confirm before you apply.
This page is independent and not paid by any lender named here. It is general information, not financial advice. Approval and rates depend on your credit, income and state.
Key sources: National Credit Union Administration · Consumer Financial Protection Bureau · Lender disclosures