Quick Picks: Top 5 Bad Credit Lenders for 2026
We analyzed dozens of lenders to find the best options for borrowers with credit challenges. Here are our top picks:
| Lender | Best For | Min. Credit | APR Range | Loan Amounts |
|---|---|---|---|---|
| Upgrade Best Overall |
Fair to bad credit | 560 | 9.99% - 35.99% | $1,000 - $50,000 |
| Avant Fast Funding |
Quick approval | 550 | 9.95% - 35.99% | $2,000 - $35,000 |
| Upstart Thin Credit |
Limited credit history | 300* | 7.80% - 35.99% | $1,000 - $50,000 |
| OneMain Secured Options |
Collateral-based loans | None | 18.00% - 35.99% | $1,500 - $20,000 |
| LendingPoint Rebuilding Credit |
Credit building | 585 | 7.99% - 35.99% | $2,000 - $36,500 |
*Upstart uses AI and considers factors beyond credit score. Approval possible with scores as low as 300, but most approved borrowers have higher scores.
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What Counts as "Bad Credit"?
Credit scores range from 300 to 850. Here's how lenders typically categorize them:
- Excellent (740-850): Best rates and terms available
- Good (670-739): Competitive rates from most lenders
- Fair (580-669): Some lenders available, higher rates
- Poor/Bad (300-579): Limited options, highest rates
If your score falls below 670, you may find it harder to qualify with traditional banks. However, many online lenders specialize in working with borrowers in this range. The lenders on this page work with scores as low as 500-580, and some don't have minimum score requirements at all.
How We Evaluated These Lenders
We reviewed over 30 personal loan lenders and ranked them based on criteria that matter most to bad credit borrowers:
- Credit flexibility: Willingness to work with scores below 600
- APR competitiveness: Rates compared to other bad credit options
- Loan amounts: Range of funding available
- Funding speed: Time from approval to cash in hand
- Fees: Origination fees, prepayment penalties, late fees
- Customer experience: BBB rating, Trustpilot scores, complaint patterns
- Credit reporting: Reports to all 3 bureaus (helps rebuild credit)
Detailed Lender Reviews
1. Upgrade - Best Overall for Bad Credit
Editor's ChoiceUpgrade is our top pick for bad credit borrowers because it offers a strong combination of competitive rates, high loan amounts, and credit-building tools. Their minimum score requirement of 560 is accessible for many borrowers with credit challenges.
Pros
- Lower minimum credit score (560)
- Loans up to $50,000
- Free credit monitoring
- No prepayment penalty
- Reports to all 3 credit bureaus
Cons
- Origination fee (1.85% - 9.99%)
- Not available in all states
- Higher rates for lowest scores
2. Avant - Best for Fast Funding
Quick ApprovalAvant has built its business around serving borrowers with less-than-perfect credit. With a minimum score of just 550 and next-day funding, it's ideal when you need money quickly and have credit challenges.
Pros
- Very low minimum credit score (550)
- Fast funding (often next day)
- Mobile app for loan management
- No prepayment penalty
Cons
- Administration fee up to 4.75%
- Maximum loan lower than competitors
- Late fee of $25
3. Upstart - Best for Thin Credit Files
AI-PoweredUpstart uses artificial intelligence to evaluate borrowers beyond just credit scores. They consider education, employment history, and earning potential. This makes them a strong option for young borrowers or those with limited credit history who have strong income or career prospects.
Pros
- Considers more than credit score
- Good for thin credit files
- Competitive starting rates
- High loan amounts available
Cons
- Origination fee up to 12%
- Better for employed with steady income
- Short loan terms (3-5 years only)
4. OneMain Financial - Best for Secured Loans
Secured OptionsOneMain Financial doesn't have a minimum credit score requirement, making it one of the most accessible options for borrowers with very poor credit. They offer both secured and unsecured loans through their network of 1,500+ branches.
Pros
- No minimum credit score
- Secured loans improve approval odds
- In-person support at branches
- Same-day funding possible at branch
Cons
- Higher starting rates (18%+)
- May require branch visit
- Origination fee varies by state
- Lower maximum loan amount
5. LendingPoint - Best for Credit Building
Credit BuilderLendingPoint focuses on borrowers with fair credit who want to improve their scores. They report to all three credit bureaus and offer competitive rates for borrowers in the 580-669 range.
Pros
- Reports to all 3 bureaus
- Competitive rates for fair credit
- No prepayment penalty
- Quick funding
Cons
- Origination fee up to 10%
- Higher minimum score than some options
- Not available in all states
What to Avoid: Predatory Lenders and Red Flags
⚠️ Warning Signs of Predatory Lenders
If you encounter any of these, walk away immediately.
When you have bad credit, you may be targeted by predatory lenders. Watch out for:
- Payday loans: APRs often exceed 400%. A $500 loan can cost you $75-150 in fees for just 2 weeks.
- Guaranteed approval promises: Legitimate lenders always check your ability to repay. "No credit check" usually means extremely high rates.
- Upfront fees: Legitimate lenders deduct fees from your loan, never before funding.
- Prepayment penalties: Good lenders let you pay off early without penalty.
- Pressure tactics: If someone is rushing you to sign, that's a red flag.
- No physical address: Legitimate lenders have verifiable business addresses.
All the lenders we recommend above are legitimate, licensed lenders with no prepayment penalties and transparent fee structures.
How to Improve Your Approval Odds
Even with bad credit, you can take steps to increase your chances of approval and get better terms:
Before You Apply
- Check your credit report for errors: Dispute any inaccuracies at AnnualCreditReport.com - errors are more common than you'd think.
- Reduce credit utilization: Pay down credit card balances below 30% of your limits if possible.
- Don't open new accounts: Avoid applying for new credit in the 30-60 days before your loan application.
- Gather income documentation: Recent pay stubs, tax returns, and bank statements ready to go.
When Applying
- Compare multiple lenders: Soft credit checks let you shop around without hurting your score.
- Consider a co-signer: A creditworthy co-signer can dramatically improve your rates.
- Start smaller: A smaller loan amount is easier to get approved for. Build history, then refinance.
- Consider secured options: Using collateral (like a car) can improve approval odds and rates.
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