Best Personal Loans for People with Bad Credit in 2026
If you have bad credit, you realize that you don’t have access to the best lenders. So, it’s important to understand the lender’s policies before you sign on the dotted line. Your task is to avoid anything that would only make your situation worse. For this purpose, the policies and interest rates of hundreds of lenders are constantly analyzed and compared to provide up-to-date information and help ensure you get the most suitable loan for your situation.
Table of Contents
- What Does a Bad Credit History Really Mean and How Lenders Make Their Decisions
- Why You Should Choose Unsecured Loans When You Have Bad Credit
- Which Lenders Truly Deserve Your Attention
- Bottom Line
What Does a Bad Credit History Really Mean and How Lenders Make Their Decisions
A credit score below 620 often indicates derogatory marks on a credit report. This is when it is particularly hard to get approved for an unsecured loan. Most mainstream lenders won’t approve people with credit scores this low, but the lenders on the list below will.
These lenders do not actually use your credit score to determine whether to approve you. They actually build their own scores based on information in your credit report, your income, alternative credit bureaus, and even your bank account data. That means one person could get approved with a 570 and another could be denied with a 610. These assessments are based on lender-specific models rather than a single shared standard.
The difficulty is that lenders don’t publish their approval criteria. They consider it a trade secret. So, while a credit score can give you a directional idea of whether you could be approved, you wouldn’t know for sure until you apply.
Why You Should Choose Unsecured Loans When You Have Bad Credit
Many people with bad credit end up securing a loan using their vehicle as collateral. If they run into trouble making payments, they risk having their car seized, worsening their situation.
Unsecured loans are issued without collateral, meaning the lender cannot seize the borrower’s personal property if payments are delayed. When making a decision, lenders usually evaluate income, current financial obligations, and how the person uses their bank account. If payments are missed or delayed, the consequences are most often limited to interest, fees, and a negative mark on the credit report. For people with bad credit history, this difference often becomes a key factor when choosing a loan, since there is no risk of losing property.
Which Lenders Truly Deserve Your Attention
When it comes to unsecured consumer loans for bad credit, three types of lenders consistently stand out.
Lenders for More Stable Financial Profiles
The first category includes:
Avant. Opportune. Upgrade. Upstart. US Bank.
These lenders say they will lend to people with credit scores as low as 580. They have the lowest APRs of any lender in this video. Their top APRs are below 36%. They should definitely be the place to start when looking for an unsecured personal loan.
But here’s the thing. These lenders will deny many people with bad credit. 580 is the lowest credit score that they will lend to, but most applicants with a credit score below 620 will be denied. The lower your score is, the more likely you will be denied.
So, check your rate with them, but don’t be surprised if you need to move on to the second category of lenders.
Lenders With More Inclusive Policies
These lenders are part of the second category:
15M Finance. NetCredit. OneMain Financial. OppLoans. Rise Credit.
These lenders are more expensive, but they are much more likely to approve people with poor credit than lenders in the first category, and they have better overall policies than lenders in the third category.
15M Finance
15M Finance is designed for people with poor or limited credit histories, including borrowers with credit scores of approximately 500-550. Most often, this platform is used by those who have difficulty obtaining a bank loan and are seeking small personal loans.
The application can be completed fully online and usually takes about 5 minutes. In many cases, a decision is made quickly within a few minutes or on the same business day. If approval is received early, the funds may be deposited into the bank account the same day.
Loan terms depend on the specific offer and the borrower’s financial situation. Interest rates are generally higher than those offered by traditional banks, which is typical for loans designed for people with poor credit history. For this reason, it is important to carefully review the final terms and understand the true cost of the loan before agreeing to it.
Key points to consider:
Loan amounts are usually from $100 to $5,000 Repayment terms are most often from 2 to 24 months The application and decision process is fast and online Credit score is considered, but it is not the only approval factor These loans are best suited for short-term needs or planned expenses
Many borrowers try to pay off the loan early or make extra payments to reduce interest charges and lower the overall cost of borrowing.
NetCredit
Net Credit will lend to customers with credit scores in the mid-500s. The company offers loans in 37 states, including Alabama, California, Delaware, Florida, Kentucky, Louisiana, Michigan, Texas, Utah, Virginia, and others. If you don’t live in one of these states, you should skip to the next lender.
Net Credit offers loans in these 37 states. If you don’t live in one of these states, you should skip to the next lender.
The maximum loan amount can reach $10,000, which is considered a fairly high limit among lenders that work with borrowers who have bad credit. However, withdrawing such a large amount should be done carefully, as with high interest rates, the total cost of the loan can grow quickly.
Interest rates on these loans typically range from 34% to 100% APR. Compared to bank loans, these rates look very high, but within the market for loans designed for people with bad credit, they are considered normal and expected.
They charge origination fees ranging from 1% to 5%. Origination fees below 5% are acceptable. The real cost of borrowing is in the interest rate.
If you are looking for an open-ended credit solution, they also offer lines of credit in most of their states. The line of credit is convenient if you find yourself borrowing several times a year. With the line of credit, they charge a fee, not an interest rate. In this case, the APR (annual percentage rate) would range from 70% to 130%.
OneMain Financial
One Main Financial offers relatively low interest rates, even for borrowers with bad credit. At the same time, the company often offers to secure the loan with a vehicle title, which is something to keep in mind, since the car may be at risk if payment problems arise. In addition, customers are often offered optional credit insurance, which is not required but increases the loan’s overall cost.
Their policies can differ stateby state, so it can be difficult to determine what they will be for you before you’re approved and they send you the loan agreement. That means you really have to spend extra time reading the loan agreement before you sign on the dotted line to make sure you understand their policies.
You can expect:
A sizable origination fee. Late fees. NSF fees.
The interest rate may be lower than other options, but additional costs can significantly increase the loan’s total cost. That’s why it’s important to carefully review all the terms in advance and understand how much the loan will actually cost in the end.
OppLoans
OPL issues loans almost nationwide and operates in approximately 40 states. The company specializes in small loan amounts, ranging from $500 to $4,000. This option is intended for borrowers who need a relatively small loan, since larger amounts are rarely offered and the loans themselves are expensive. OPL may approve applicants with credit scores around 500.
Interest rates on these loans are quite high, typically ranging from 129% to 195% APR. For this reason, these loans are best viewed as a short-term solution. If used for several months, interest charges can quickly increase the total balance and place a noticeable strain on finances.
OP loans do not charge other fees:
No origination fee. No late fees. No NSF fees.
Rise Credit
Rise Credit provides loans in 30 states, including Alabama, Alaska, Georgia, Hawaii, Kentucky, Louisiana, Minnesota, Mississippi, Nevada, North Carolina, Ohio, South Carolina, Tennessee, Texas, Utah, Virginia, Wisconsin, Wyoming, and others. Before applying, check whether your state is covered.
Most commonly, they lend between $1,000 and $5,000, but it is unlikely that they will approve first-time borrowers for $5,000. The most common loan amount is around $2,500.
They have terms that go up to 36 months, but you would never want to hold a RISE loan that long. That’s because these loans are expensive.
For most of their states:
Their minimum APR is 99%. Their maximum APR is 199%. In some states, their APRs can reach 299%.
Rise does not charge additional fees. They don’t charge an origination fee, NSF fees, or late fees.
Because of the overall cost of these loans, you should always plan to pay them off early. The earlier the better. But never let one of these loans go past 9 months. That means you really need to plan on making extra principal payments every single month.
The average credit score of their borrowers is around 570. And they will approve people with credit scores as low as 500, and sometimes even lower.
Lenders That May Work in Specific Situations
The following lenders fall into the third category:
60 Month Loans. FigLoans. Mariner Finance. Security Finance. CreditNinja. IntegraCredit. MoneyKey. TBOBank. World Finance Loan & Tax Service.
These brands are classified in the third category, and there are several reasons for this:
Some of them have higher APRs. Some of them are not transparent about their policies. Some aren’t widely available. Some have concerns about customer feedback.
That said, you may still find the loan you need with one of these lenders and have a positive experience. However, it is important to carefully review the terms and compare them with other available options before signing an agreement.
Tribal Lenders Outside State Regulation
Native American tribes own these lenders. They claim that their sovereignty exempts them from state laws.
Here are some of these companies:
American Web Loan (AWL). Blue Mountain Loans. Explore Credit. Post Lake Lending. Spotloan. Big Picture Loans. Bright Lending. Fair Trust Group. OCL Prime Credit Line. Three Sticks Lending. Bison Green. CreditCube. Others.
These tribe-owned lenders offer loans of $5,000 or less with interest rates as high as 700% or 800%. Some of them do not openly publish their rates. So, you won’t know what they will offer you until you’ve been approved.
At those interest rates, it would be imperative to pay off the loans early, ideally within a few weeks. Otherwise, the accrued interest would make it very hard to pay off.
Such loans are dangerous because they can easily become a worse financial problem than the one the loan was meant to fix in the first place. It’s worse than just kicking the can down the road. It’s as if the can triples in size after you kick it.
Bottom Line
If you have bad credit and are looking for an unsecured personal loan, the most important thing you can do is to check your rate with several lenders before you accept a loan. You owe it to yourself to get the best deal you can in your circumstances.
As you can clearly see, the interest rate can swing wildly. So, you can save a lot of money by making sure you get the absolute best deal that you can in your circumstances.
And each lender has its own algorithm for approving people. You may not be approved by one company only to be approved for a good deal by another. This space can be really unpredictable.
