Can I get a personal loan with a 500 credit score?

Yes, but your options are limited and rates are high. A credit score around 500 typically qualifies you for loans at 30%–36% APR from lenders like OneMain Financial, OppLoans, or Avant. Some lenders use alternative data (bank account history, employment stability) rather than relying solely on FICO, which can help borrowers with thin credit files. Expect loan amounts of $1,000–$10,000 and terms of 2–5 years.

What is considered a bad credit score for personal loans?

Most personal loan lenders consider a credit score below 580 to be bad credit. The range 580–619 is generally 'poor' credit and will see elevated rates (25%–36% APR) but more lender options. Scores 620–659 are 'fair' credit with more accessible rates (15%–25%). Below 500, personal loan options from mainstream lenders are essentially unavailable and you'll need specialist lenders or secured alternatives.

What APR should I expect with bad credit?

With a credit score below 580, expect APR of 25%–36% from personal loan lenders. The federal usury cap of 36% APR is commonly cited as the maximum ethical rate for consumer loans; any lender charging more than 36% is essentially offering a predatory product. On a $3,000 loan at 36% APR over 36 months, you'd pay $3,000 in principal plus approximately $1,940 in interest — total repayment of $4,940.

What are the best alternatives to a bad credit personal loan?

Before taking a high-rate personal loan, consider: (1) credit union payday alternative loans (PALs) — up to $2,000 at 28% max APR for credit union members; (2) borrowing from family or friends with a written agreement; (3) a secured personal loan using a savings account or CD as collateral — rates are much lower because there's no default risk for the lender; (4) a secured credit card for smaller ongoing needs; or (5) nonprofit credit counseling agencies that offer debt management plans.

Bad Credit Personal Loans 2026 — Best Options and What to Expect

Bad credit personal loans are available to borrowers with credit scores below 580 — but they come with significantly higher rates, typically 20%–36% APR, and lower loan limits. The 36% APR threshold is the widely accepted maximum for ethical consumer lending; anything higher crosses into predatory territory. Before signing, it’s worth knowing what to expect and whether a cheaper alternative exists.

What “Bad Credit” Means for Personal Loans

Credit Score Range	Category	Typical Personal Loan APR
720+	Good to Excellent	7%–15%
660–719	Fair	15%–22%
600–659	Poor	22%–30%
580–599	Bad	28%–36%
Below 580	Very bad	30%–36% (few lenders)
Below 500	Subprime	Very few mainstream lenders

Best Lenders for Bad Credit Personal Loans (2026)

Lender	Min. Credit Score	APR Range	Loan Amount	Key Feature
Upstart	No minimum (uses AI)	7%–36%	$1,000–$50,000	Uses education and employment data
Avant	580	9.95%–35.99%	$2,000–$35,000	Fast funding; flexible repayment
OneMain Financial	No minimum	18%–35.99%	$1,500–$20,000	Physical branches; secured option available
LendingPoint	600	7.99%–35.99%	$2,000–$36,500	Considers more than credit score
OppLoans	No minimum	59%–160%	$500–$4,000	Last resort; very high rates
Universal Credit	560	11.69%–35.99%	$1,000–$50,000	Credit-builder features included

Warning on OppLoans: At 59%–160% APR, OppLoans is substantially more expensive than other options and should only be considered when no alternatives exist. This rate range exceeds the 36% ethical threshold.

True Cost of a Bad Credit Personal Loan

Example: $5,000 loan, 36% APR, 36-month term

Item	Amount
Loan amount	$5,000
Monthly payment	$228
Total payments (36 months)	$8,208
Total interest paid	$3,208
Interest as % of principal	64%

Compare to a good-credit borrower:

Same loan at 12% APR: total interest = $985 (vs. $3,208)
Difference: $2,223 more in interest due to bad credit

What Lenders Look At Beyond Credit Score

Some lenders use alternative underwriting that looks past your FICO score:

Bank account history — steady deposits and low overdraft frequency signal stability
Employment history — length at current employer, income consistency
Education level — Upstart specifically considers this for younger borrowers
Existing debt load — DTI matters even at bad-credit lenders; maxed-out cards hurt
Income — minimum income requirements of $20,000–$30,000/year are common

Red Flags to Avoid

Red Flag	Why It Matters
No credit check guaranteed	Legitimate lenders always verify ability to repay
APR above 36%	Predatory; consider this a hard cap
Upfront fees before loan is funded	Fee advance scams are common in bad credit market
Pressure to decide immediately	Legitimate offers don’t expire in hours
Rollover or renewal encouraged	Sign of a loan designed to trap borrowers

How to Improve Your Odds of Approval

Add a co-signer — a co-signer with good credit dramatically improves approval odds and lowers the rate. The co-signer is equally responsible for repayment.
Apply for a secured loan — pledge a savings account or CD as collateral; lenders take much less risk and offer lower rates
Reduce existing debt first — paying down credit card balances can raise your score 20–40 points within 30–60 days
Check for errors on your credit report — one in five credit reports contains an error; dispute inaccuracies at annualcreditreport.com
Join a credit union — credit unions offer Payday Alternative Loans (PALs) at up to 28% APR maximum, far below most bad-credit lenders

Alternatives That May Cost Less

Alternative	Max Rate	Best For
Credit union PAL	28% APR	Small amounts ($200–$2,000)
Secured personal loan	10%–20%	Have savings to use as collateral
0% intro credit card	0% for 12–21 months	Can repay within intro period
Home equity loan/HELOC	8%–10%	Own a home with equity
Borrow from 401(k)	Prime + 1% (~8.5%)	Have retirement savings; repay yourself
Nonprofit DMP	6%–10% (reduced by counselor)	Have existing debt to consolidate

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy