Best Personal Loans for Bad Credit of 2025
Last updated: July 2, 2026
Having bad or fair credit doesn't mean you can't get a personal loan — it means you need to shop with lenders who specialize in your situation. These three lenders have the lowest credit score requirements in the industry and use factors beyond your FICO score to make lending decisions.
Our top picks
Upstart
Upstart uses AI to evaluate more than just your credit score — education, job history, and area of study are factored in, making it the best option for those with thin or fair credit.
APR
7.80%–35.99% APR
Pros
- ✓Minimum credit score of 300 accepted
- ✓Considers education and employment
- ✓Fast funding (1 business day)
Cons
- ✗Origination fees up to 12%
- ✗Rates can be high for risky profiles (up to 35.99%)
- ✗No co-signer option
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Avant
Avant specializes in lending to borrowers with fair credit (580+), with a fast application, quick funding, and a mobile app to manage your loan.
APR
9.95%–35.99% APR
Pros
- ✓Minimum credit score ~580
- ✓Fast funding (as soon as next day)
- ✓Mobile app for payment management
Cons
- ✗Origination fee up to 9.99%
- ✗Rates can reach 35.99%
- ✗Not available in all states
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Upgrade
Upgrade combines a personal loan with credit card features and offers flexibility for borrowers with credit scores as low as 560, plus a rewards checking account.
APR
9.99%–35.99% APR
Pros
- ✓Minimum credit score ~560
- ✓Co-borrower allowed
- ✓Direct payment to creditors available
Cons
- ✗Origination fee 1.85%–9.99%
- ✗Late payment fees apply
- ✗Rates up to 35.99%
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How we chose these picks
What Counts as Bad Credit?
Credit scores below 580 are generally considered 'poor' and scores from 580–669 are 'fair.' Most traditional banks won't approve personal loans below 640–660. The lenders on this list work with borrowers in the 300–669 range, though higher scores will qualify for better rates.
What to Expect with Bad Credit Loans
- APRs typically run 20–36% for lower credit scores
- Origination fees are common (1–12% of loan amount)
- Loan amounts are often capped at $10,000–$15,000
- Approval is faster at online lenders (often same-day)
How to Improve Your Odds of Approval
Even with bad credit, you can improve your approval chances by applying with a co-borrower who has better credit (Upgrade allows this), reducing existing debt before applying, and choosing a lower loan amount than the maximum you need.
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