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A bad credit score doesn’t have to keep you from getting a personal loan. But if your score is under 600, you may need to take some additional steps to qualify, like securing the loan with collateral.
You’ll likely face a higher annual percentage rate (APR) than you would if you had good credit. You may be offered an APR over 20% — but avoid loans with APRs over 36%.
Also, the lender may approve you for a lower loan amount or a shorter repayment period compared to what a borrower with a higher credit score might receive.
Still, a personal loan is typically a more affordable option with more favorable terms than loans that don’t require a credit check, such as payday loans.
Learn how to get a personal loan with bad credit — plus tips to boost your chances of approval and borrowing alternatives to consider.
» COMPARE: See your bad-credit loan options
How to get a loan with bad credit
1. Review your credit, income and other debts
Review your credit
Lenders typically have minimum credit score requirements in the mid-500s or higher. Access your credit score for free with NerdWallet so you’re aware of what lenders will see when you apply for a personal loan.
You should also check your credit report to see what may be bringing down your score. If there’s incorrect information on your credit report, like an account you paid off that’s showing a balance, you can dispute the error with the credit bureaus.
Review your income and debts
Lenders evaluate your debt-to-income ratio (DTI) to gauge whether you make enough money to cover your monthly financial obligations plus a new loan payment. A DTI under 43% is generally considered favorable, but some lenders may accept a higher debt-to-income ratio.
2. Estimate your monthly payments
Use a personal loan calculator to see how different loan amounts, interest rates and repayment terms affect monthly payments. Make sure you can comfortably afford the loan payments, because missing them can result in late fees and damage to your credit score.
Loan details
2026
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Your loan estimate
Monthly payment
$212.47
Total principal
$10,000
Total interest payments
$2,748.23
Total loan payments
$12,748.23
Payoff date
04 / 2031
Show amortization schedule
3. Pre-qualify with multiple lenders
No two lenders have the same borrower requirements, rates or features, so it pays to pre-qualify with multiple lenders to understand your likelihood of getting approved and to compare offers.
Pre-qualification lets you see your potential loan rate, term, amount and monthly payment. It only triggers a soft pull on your credit, meaning that this process won’t impact your credit score.
4. Submit a formal loan application
Once you’ve decided which lender is right for you, you’ll fill out the loan application. Gather relevant documents — such as your ID, recent pay stubs and W-2 forms — in advance to speed up the process.
An online application can take a few minutes, while applying over the phone or in person may take longer. At this stage, the lender will do a hard credit check, which can lower your credit score by a few points.
Many lenders provide loan applicants with approval decisions soon after they apply and can send loan funds a day or two after approval.
Compare bad-credit lenders
Online lenders and credit unions may be your best options for getting a personal loan if you have bad credit. These types of lenders are more likely to accept borrowers with less than ideal credit scores. Banks, on the other hand, tend to require borrowers to have good or excellent credit.
Here are a few lenders that may approve loan applicants on the lower end of the credit spectrum.
| Lender | APR | Min. credit score |
|---|---|---|
 on NerdWallet's secure website | 7.74% - 35.99% | 600. |
 on NerdWallet's secure website | 6.70% - 35.99% | None. |
 on NerdWallet's secure website | 6.99% - 35.99% | 600. |
 on NerdWallet's secure website | 9.95% - 35.99% | 550. |
 on NerdWallet's secure website | 11.69% - 35.99% | 560. |
 on NerdWallet's secure website | 8.99% - 35.99% | 560. |
How to improve your chances of getting a loan with bad credit
Borrowers with the lowest credit scores — below 550 — are unlikely to qualify for most personal loans on their own. However, if you fall into this category, you may be able to bolster your loan application in a few ways, depending on what the lender offers.
Add a co-signer
Adding a trusted friend or family member, who has better credit and stronger income than you, as a co-signer on a personal loan application can increase your odds of qualifying.
A co-signer can’t access loan funds or payment information, but promises to repay the loan if the borrower doesn’t. If you fail to make payments, both of your credit scores will suffer.
Add a co-borrower
A co-borrower is similar to a co-signer — their credit and income is considered with yours on a personal loan application. The key differences are that the loan is considered a joint loan, and your co-borrower can access loan funds and payment information.
Both borrowers are equally responsible for the loan, so late or missed payments affect both of your credit scores.
Add collateral
Some lenders offer secured personal loans, which can help you qualify or get a lower rate. With a secured loan, you pledge an asset you own (like a car or savings account) as collateral, which the lender can take to recoup its losses if you stop making loan payments.
Include all sources of income
Many lenders let you include non-employment income on an application, such as alimony, child support, retirement benefits or Social Security payments. Disclosing all your income sources could assure a lender that you’ll be able to cover your monthly loan payments.
Ask for a small loan
It’s best to only ask for what you need and can afford to repay. If a lender thinks the loan amount you requested would overextend your finances, your application is more likely to be declined.
Be aware of predatory lending and scams
Predatory lending
Predatory lenders take advantage of consumers with low credit scores who need cash fast and have limited borrowing options. Though these lenders may make it easy to get a loan by not checking your credit, they may intentionally make their loans difficult to repay, keeping you in debt.
Most consumer advocates say a personal loan’s APR should be no more than 36% to be considered affordable. Payday loans and other high-interest loans can have APRs in the triple digits.
These types of loans also tend to have short repayment periods — as short as just two weeks long. You may be given the option to extend the repayment period if you can’t come up with the cash by your due date. However, you’ll typically be charged an extra fee, and you could find yourself trapped in a cycle of repeated borrowing.
Loan scams
Unfortunately, bad actors are attuned to those who need loans and have bad credit. These scammers may promise you the opportunity to get quick cash but only end up stealing your personal information or your money.
Be aware of these signs of personal loan scams:
- Out-of-the-blue calls or text offers for loans. If you receive a phone call or text with a personal loan offer from a lender with whom you’ve had no previous contact, treat it with extreme suspicion.
- Loan offers asking for money upfront. No credible loan originator will ask you to pay money or purchase gift cards before receiving a loan. It’s a sure sign of a scam.
- Advertisements that tout ‘guaranteed approval’ for a loan. As nice as that sounds, no credible loan provider would guarantee you cash before going through an approval process.
Borrowing alternatives if you have bad credit
If a personal loan isn’t an option, consider these alternatives, which may not require a credit check to qualify.
Hardship programs. Lowering or pausing monthly credit card, mortgage, rent or utility payments may free up enough cash to bridge an income gap. Ask your credit card issuers, mortgage lender, landlord or utility companies about any hardship programs they offer.
Medical bill assistance. If you’ve received an expensive doctor or hospital bill, you may not have to pay it in full right away. Options like payment plans through your provider’s office, medical credit cards and medical bill advocates could ease the burden.
Family loans. Borrowing money from friends and family might feel awkward, but you may benefit from no credit checks, low costs and customizable repayment terms. Set up a detailed family loan agreement to ensure repayment goes smoothly.
» MORE: How to borrow from family
Buy now, pay later. A “buy now, pay later” loan can finance a large, necessary purchase without a hard credit check or interest charges. This at-checkout financing option typically requires you to pay a quarter of the cost up front and the rest in three, equal bi-weekly installments.
» MORE: What is buy now, pay later?
Cash advance apps. Apps like EarnIn and Dave provide paycheck advances up to a few hundred dollars with no credit check and possibly no fees. These apps use bank account information to decide how much to advance, and you typically repay it on your next payday.
Debt payoff options. If you’re considering a personal loan to consolidate debt, look into other repayment options like the snowball and avalanche methods or a debt management plan.
Frequently Asked Questions
Can I get a loan with a 500 credit score?
Next-day funding is available from some lenders that offer personal loans to borrowers with credit scores in the 500s. Speed up the process by submitting requested documents in a timely manner and signing the loan paperwork by the lender’s deadline.
Though having a co-signer or co-borrower or adding collateral to the loan could strengthen your application, it could also slow the process a bit as the lender has more factors to evaluate.
What disqualifies you from getting a personal loan?
It may be unlikely that you’ll qualify for a personal loan with a 500 credit score. The lowest minimum credit score requirement among lenders that NerdWallet reviews is 550, though some lenders don’t disclose a minimum credit score. Many lenders require a score above 600.
However, you can pre-qualify with multiple lenders to check for offers without impacting your score. If you don’t qualify, consider alternatives, such as borrowing from family or getting a “buy now, pay later” plan.
How much money can I borrow with bad credit?
A personal loan applicant can be disqualified for having a credit score that’s too low, insufficient income, too much outstanding debt or a short credit history. If you are denied a personal loan, the lender must tell you why, according to the Equal Credit Opportunity Act.
Can I get a loan fast with bad credit?
Lenders typically provide personal loans for $1,000 to $50,000. The loan amount you qualify for will depend on your credit, income and existing debts. The best way to determine how much you can borrow is to pre-qualify with multiple lenders.
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