If your credit score is 580 or lower and you need a personal loan, you may still be able to get approved, but it will likely cost you more. Borrowers with lower credit scores generally face higher interest rates and fewer loan options than those with stronger credit.
Under the FICO®Score model, 580 is at the bottom of the “fair” range, while scores below 580 are considered “poor.” VantageScore uses a different scale: A 580 score falls within its “poor” range, while scores below 500 are considered “very poor.”
The biggest caveat to keep in mind is that the lowest personal loan rates typically go to borrowers with the highest credit scores. Before applying, make sure you understand the loan’s interest rate, fees and repayment terms and have a plan for paying it off. If the cost works for your budget, here’s how you may be able to get a personal loan with a credit score of 580 or lower.
How to get a personal loan with a 580 credit score
Bad credit? You can still get funding for major expenses.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Annual percentage rate (APR)
Get prequalified
Getting prequalified can give you a better sense of whether you’re likely to qualify for a personal loan and what interest rate you may be offered. It can also help you compare offers from multiple lenders and find the most competitive rate available to you.
Prequalification typically involves asoft credit check, which doesn’t affect your credit score, although the process varies by lender. That makes it a useful step before submitting a formal application, which generally triggers a hard credit inquiry. By comparing offers first, you can avoid applying to lenders that may be less likely to approve you or may offer less favorable terms.
Many lenders let you prequalify online in just a few minutes. You may need to provide basic information such as your name, desired loan amount, income and Social Security number, depending on the lender.
Consider lenders that accept low credit scores
Many lenders require good to excellent credit to qualify for a personal loan. Others, however, work with borrowers who have fair or poor credit. If your credit score is well below the good range, consider lenders that work with borrowers with lower scores, which may improve your chances of finding a loan you qualify for.
Upstart doesn’t have a formal minimum credit score requirement for its marketplace, although individual lending partners have their own eligibility criteria. Its underwriting model can consider factors beyond credit score, including education, employment and income.
With Avant, eligible borrowers may receive their funds as soon as the next business day after approval.
Upstart offers accessible personal loans for people with fair or average credit.
- Accept applicants with low or no credit
- No early payoff fees
- Most loans funded the next business day
- High late fees
- Origination fee of 0% to 10% of the target amount
- $10 fee for paper copies of loan agreement
Lends to applicants with poor credit and offers next-day funding.
- Lends to applicants with poor credit
- No early payoff fee
- Can prequalify with a soft credit check
- Funding often available next day
- Late-payment grace period of 10 days
- Origination fee
- Potentially high interest
- No autopay discount
- No direct payments to creditors for debt consolidation
- No co-signers
Apply with a co-signer or co-applicant
A co-signer is someone who signs a loan agreement with you and agrees to repay the debt if you don’t. A co-signer with a stronger credit history or higher income may improve your chances of getting approved and, in some cases, help you qualify for more favorable terms. But a co-signer takes on significant financial responsibility: If you miss payments or default, they can be held responsible for the debt and their credit can be affected.
Check with the lender before applying to make sure it allows co-signers or co-applicants. And give your prospective co-signer plenty of time to understand the loan terms and consider the potential financial consequences.
Those with less-than-perfect credit can apply for a personal loan from OneMain Financial with aco-applicant. OneMain doesn’t publish a minimum credit score requirement, but it considers factors including credit history, income and monthly expenses when evaluating applications. It also offers secured personal loans that use eligible vehicles as collateral. Securing a loan with collateral can reduce the lender’s risk and may help you qualify, but the lender can take possession of the collateral if you default.
Approves applicants with bad or fair credit and offers secured loans.
- Approves applicants with bad or fair credit
- Relatively low $1,500 loan minimum
- Same-day funding available
- Option to apply with collateral for a lower rate
- Co-applicants allowed
- High origination fee
- High interest rates
- No autopay discount
- No co-signers
*You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved.Loan approval and actual loan terms depend on applicant’s state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.
Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms.For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant’s name with valid insurance. APRs are generally higher on loans not secured by a vehicle.
Example Loan:A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
OneMain charges origination fees allowed by law.Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount.
For information about these fees and minimum and maximum loan sizes available in certain states, visitomf.com/loanfees.
Current OneMain Customers:Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.
Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral.If you are covered by the MLA, you are not eligible for secured loans.Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Time to Fund Loans:Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.
Improve your credit score, if there’s time
If you aren’t in a time crunch and don’t need a personal loan urgently, you may have time to improve your credit score before submitting an application.
One of the most important things you can do is consistently make your debt payments on time and in full. Payment history accounts for 35% of a FICO Score, making it the largest factor in the calculation. Paying down credit card balances can also help by lowering your credit utilization, another major factor in your score.
Experian Boost is a free tool that can help you raise your credit score by allowing you to add eligible on-time payments for bills such as utilities, phone, rent, insurance and streaming services to your Experian credit file. You may see an immediate increase in your FICO Score based on Experian data, but results vary and not all lenders use scores affected by Experian Boost.
Experian Boost®
-
Cost
-
Average credit score increase
13 points, though results vary
-
Credit report affected
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Credit scoring model used
Results will vary. See website for details.
Looking to simplify your payments? These programs can help you consolidate without borrowing more.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Freedom Debt Relief has resolved over $20 billion in outstanding debts since 2002. It offers free credit card debt relief consultations.
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