If you have a credit score under 600, you may find it difficult to secure a personal loan from a bank or some online lenders. Fortunately, many providers cater to borrowers with poor or fair credit. While some of these options come with steep APRs, others cap rates at 35.99% — or don’t charge interest or financing fees at all. Here’s a closer look at our top 7 options.
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OneMain is a direct lender offering secured and unsecured loans with rates capped at 35.99% APR. It may be one of the easier options to qualify for, since you can use collateral or a cosigner on your loan. But with rates starting at 18%, its costs are high compared to traditional personal loans, which can start as low as 6% APR for the best credit borrowers. You can apply online, but you may need to complete your application at a branch, and it's unavailable in a few states.
Min. credit score
Not specified
APR
18% to 35.99%
Loan amount
$1,500 to $20,000
Not available in: Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont
OneMain is a direct lender offering secured and unsecured loans with rates capped at 35.99% APR. It may be one of the easier options to qualify for, since you can use collateral or a cosigner on your loan. But with rates starting at 18%, its costs are high compared to traditional personal loans, which can start as low as 6% APR for the best credit borrowers. You can apply online, but you may need to complete your application at a branch, and it's unavailable in a few states.
Pros
Turnaround as soon as the same day
Cosigners allowed
Secured and unsecured options
No minimum credit score
Cons
Origination fee on all loans
APRs start at a high 18%
May need to visit a branch location
Loan amount
$1,500 to $20,000
APR
18% to 35.99%
Interest Rate Type
Fixed
Min. credit score
Not specified
Turnaround Time
As soon as one hour
Loan Term
24, 36, 48 or 60 months
* OneMain Disclosures:
Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loanfees for more information. 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.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
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.
Time to Fund Loans: Funding within one hour after 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 loan closing.
Upstart is an innovative fintech lender that accepts credit scores as low as 300 and caps rates at 35.99% APR. Unlike other lenders, Upstart factors in additional criteria like your employment history and education when underwriting loans — making it ideal for college graduates who may be new to credit.
However, Upstart charges an origination fee of up to 12%, and its application asks for more information that you might otherwise give a lender, like your transcripts or SAT score, in some cases. But it reports your payments to the three major credit bureaus, helping you build your credit score over time.
Min. credit score
300
APR
6.70% to 35.99%
Loan amount
$1,000 to $50,000
Not available in: Connecticut, Iowa, Maine, Maryland, Nevada, New York, Oklahoma, Oregon, West Virginia
Upstart is an innovative fintech lender that accepts credit scores as low as 300 and caps rates at 35.99% APR. Unlike other lenders, Upstart factors in additional criteria like your employment history and education when underwriting loans — making it ideal for college graduates who may be new to credit.
However, Upstart charges an origination fee of up to 12%, and its application asks for more information that you might otherwise give a lender, like your transcripts or SAT score, in some cases. But it reports your payments to the three major credit bureaus, helping you build your credit score over time.
OppLoans is a highly rated lender that only runs a soft credit check to apply — but APRs start at 160% and can reach up to 195% or more. Although high, its rates are lower than most installment and payday loans.
It also reports your repayments to the three major credit bureaus, which can help boost your credit score. However, the relatively short terms of nine to 18 months may lead to high payments for some borrowers, and it requires that you are paid by direct deposit.
Loan amount
$500 - $4,000
Turnaround time
As soon as the same business day
Online application
Yes
Not available in: Colorado, Connecticut, Georgia, Iowa, Maryland, Massachusetts, New York, South Dakota, Vermont, Washington, West Virginia
OppLoans is a highly rated lender that only runs a soft credit check to apply — but APRs start at 160% and can reach up to 195% or more. Although high, its rates are lower than most installment and payday loans.
It also reports your repayments to the three major credit bureaus, which can help boost your credit score. However, the relatively short terms of nine to 18 months may lead to high payments for some borrowers, and it requires that you are paid by direct deposit.
Chime MyPay offers advances up to $500, and there's no credit check to worry about. And the only fee is $2 for instant cash advances of any amount. Or if you can wait two days, the app is completely free and doesn't require a monthly membership fee like many other apps. Plus, there are no interest charges or late fees, so you only have to pay back what you borrowed, plus the $2 fee if you request a fast transfer. But you must get paid by direct deposit and have a Chime checking account to qualify.
Loan amount
$20 - $500
Turnaround time
Within 2 days or $2 for instant transfers
Costs
No subscription fees
Not available in: Colorado, Connecticut, Georgia, Illinois, Maine, Maryland, Massachusetts, Minnesota, Montana, Nevada, New Jersey, New Mexico, South Dakota, Vermont, Washington, Wisconsin, Wyoming
Chime MyPay offers advances up to $500, and there's no credit check to worry about. And the only fee is $2 for instant cash advances of any amount. Or if you can wait two days, the app is completely free and doesn't require a monthly membership fee like many other apps. Plus, there are no interest charges or late fees, so you only have to pay back what you borrowed, plus the $2 fee if you request a fast transfer. But you must get paid by direct deposit and have a Chime checking account to qualify.
Pros
No credit check
Low fee for fast transfers
Advances up to $500
Cons
Requires direct deposit
Must have a Chime checking account
Smaller loan amount than other options
Loan amount
Up to $500
Loan Term
Until next deposit
Turnaround time
Within 2 days or $2 for instant transfers
MyPay™ line of credit provided by The Bancorp Bank, N.A. or Stride Bank, N.A. MyPay services provided by Chime Capital, LLC (NMLS 2316451). MyPay eligibility: To be eligible for MyPay, you must receive Qualifying MyPay Direct Deposits to your Chime Checking Account as set forth in the MyPay Agreement. A Qualifying MyPay Direct Deposit is a deposit from an employer, payroll provider, gig economy payer, government benefits payer, or other permitted source of income by Automated Clearing House (“ACH”) or Original Credit Transaction (“OCT”). Your MyPay Credit Limit and Available Advance Amount may change at any time. MyPay is a line of credit and available limits are based on estimated income and risk-based criteria. Eligible members may be offered a $20 - $500 Credit Limit per pay period. Your Credit Limit and Maximum Available Advance will be displayed to you within the Chime app. MyPay is currently only available to eligible Chime members in certain states. Other restrictions may apply. See Bancorp MyPay Agreement or Stride MyPay Agreement for details. Instant funds: Option to get funds instantly for $2 per advance or get funds for free within 2 days. See Bancorp MyPay Agreement or Stride MyPay Agreement for details.
EarnIn offers advances up to $150 per day or up to $750 per pay period — relatively high for a cash advance app — based on wages you've earned but haven't been paid for yet. And it doesn't give a hoot about your credit score. Plus, there's no monthly subscription required, and it doesn't charge interest or late fees. You only pay a fee if you need an instant transfer, which costs up to $5.99. But your earnings need to be verified, and it requires direct deposit.
Loan amount
Up to $750
Turnaround time
1 to 3 business days or within minutes for a fee starting at $2.99 per transfer
Costs
Free to use or within minutes with a fee as low as $2.99 per transfer
Not available in: Connecticut
EarnIn offers advances up to $150 per day or up to $750 per pay period — relatively high for a cash advance app — based on wages you've earned but haven't been paid for yet. And it doesn't give a hoot about your credit score. Plus, there's no monthly subscription required, and it doesn't charge interest or late fees. You only pay a fee if you need an instant transfer, which costs up to $5.99. But your earnings need to be verified, and it requires direct deposit.
Pros
No credit check
No mandatory fees
Advance up to $750 per pay period
Cons
Must have earnings verified
Requires direct deposit
Only $150 per day without EarnIn card
APR
0%
Loan amount
Up to $150/day, with a max of $750 between paydays
Loan Term
1 to 4 weeks
Turnaround time
1 to 3 business days or within minutes for a fee starting at $2.99 per transfer
EarnIn is not a bank. Access limits are based on your earnings and risk factors. Available in select states. Terms and restrictions apply. Visit EarnIn.com for full details. Expedited transfers available for a fee. Visit Earnin.com for full details.
Loan amount
Up to $750
Turnaround time
1 to 3 business days or within minutes for a fee starting at $2.99 per transfer
Costs
Free to use or within minutes with a fee as low as $2.99 per transfer
NetCredit loans go as high as $10,000, and there's no stated minimum credit score requirement. Rates vary by state but appear to range between 34% to 99.99% APR. Loan terms stretch from 6 to 60 months — more flexible than a traditional installment loan, which typically has terms from three to 18 months. NetCredit also reports on-time repayments to credit bureaus, which can boost your credit. But it's not available in all states, and loan amounts may vary depending on where you live.
Loan amount
$1,000 - $10,000
Turnaround time
1-3 business days
Not available in: Colorado, Connecticut, Iowa, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New York, North Carolina, Pennsylvania, Vermont, Virginia, West Virginia
NetCredit loans go as high as $10,000, and there's no stated minimum credit score requirement. Rates vary by state but appear to range between 34% to 99.99% APR. Loan terms stretch from 6 to 60 months — more flexible than a traditional installment loan, which typically has terms from three to 18 months. NetCredit also reports on-time repayments to credit bureaus, which can boost your credit. But it's not available in all states, and loan amounts may vary depending on where you live.
Finder’s lending experts compared dozens of personal loan, cash advance app and installment loan providers to bring you this list of the best loans for bad credit. We compared lenders across the following metrics when selecting this list:
Cost, including the APR and fees
Requirements, including minimum credit score
Loan amounts available
Repayment terms
Application process, including how long it takes to receive your funds
Customer ratings from sites like the Better Business Bureau and Trustpilot
In choosing these lenders, we prioritized personal loans that accept bad credit and cash advance apps over installment loan providers — as these are often cheaper in the long run.
What is a bad credit loan?
Bad credit loans help those with low or no credit scores, usually under 600, who have a regular source of income from work or other sources.
Online lenders like Upgrade, Upstart, OneMain Financial and Avant offer loans with rates up to 35.99% and origination fees up to 12%. However, you may get a better rate by using a cosigner or pledging collateral.
Installment and payday lenders also offer bad credit loans, but APRs can reach triple digits, so it’s best to avoid these types of loans if possible. If you just need a few hundred dollars, cash advance apps like MoneyLion, Brigit and Dave offer advances up to $250 or more with 0% interest and no financing fees.
How to get a loan with a bad credit score under 600
Getting a loan with bad credit is similar to finding any type of loan. You want to compare lenders with eligibility criteria you meet and find the best rate and terms for your budget.
Follow these six steps to find the best loan for your situation:
Check your credit score. Request a copy of your credit report to make sure your credit history is accurate and get an estimate of your current score.
Compare lenders. Compare lenders that accept borrowers with your credit score. Make sure you meet any requirements like minimum annual income, debt-to-income ratio and residency in an eligible state — bad credit lenders often don’t serve all 50 states.
Compare APRs & fees. Look at the APR to quickly compare the total cost per year. Also, be sure to watch for additional fees such as origination or application fees, late charges and NSF penalties.
Prequalify. Fill out a prequalification form with your top choices or call and ask for a quote. Prequalifying can give you a better idea of the rates and terms you may ultimately qualify for.
Complete the application. Fill out the loan application for the lender you decide to apply with and submit the required documents. This step typically involves a hard credit check.
Review and sign your final loan offer. Before signing, read over your agreement, paying careful attention to rates, fees and repayment terms.
8 types of bad credit financing
Here are eight options that can help you secure the cash you need — even if your credit is less than perfect.
Unsecured personal loans. Most personal loans are unsecured, meaning they’re not backed by collateral. Lenders that offer personal loans to borrowers with bad credit typically offset the risk by charging origination or application fees up to around 10% of the loan amount.
Secured personal loans. Secured loans are backed by collateral, so they can be easier to qualify for if you have poor credit. But you’ll need an asset that’s worth at least as much as the loan amount, and they can be harder to find.
Cosigned loans. Borrowers with bad credit may have an easier time getting approved if they have someone with good credit to cosign the loan with them.
Cash advance apps. Cash advance apps don’t check your credit at all. Technically not a loan, cash apps typically advance up to $500 that you’ll pay back out of your next paycheck. Most don’t charge interest or late fees, but you may need a monthly membership to qualify.
Credit card cash advances. If you have a credit card with an available balance, you can easily take out an advance at a bank or ATM with no credit check required. But rates are even higher than for purchases and you’ll typically have to pay a transaction fee as well.
Payday alternative loans (PALs). PALs are offered by some federal credit unions and offer loans up to $1,000 or $2,000, with rates capped at 28%. PALs are essentially the same as personal loans but may have more lenient requirements to qualify for credit union members in good standing.
Installment loans. While installment loans share some characteristics with personal loans, they’re designed for borrowers with poor credit. It offers smaller loan amounts, higher rates and shorter loan terms. It can be easier to qualify for and helpful in an emergency, but you should always have a plan to pay it back as soon as possible to save on interest charges.
Payday loans. Payday loans are high-cost, short-term loans you typically have to pay back from your next paycheck. APRs typically run into the triple digits, and people who use payday loans often run the risk of falling into a cycle of debt. For the most part, payday loans should only be considered as a last resort rather than a long-term solution.
Red flags to watch out for with installment and payday lenders
Some states require payday and installment lenders to meet strict standards, but other states have few consumer protections. Regardless of where you live, watch out for these red flags — they could be the sign of a payday loan scam.
Lack of transparency. Legit lenders of short-term installment loans are legally required to disclose their fees and charges. These are typically found on their websites and store signs — and must be on your loan documents.
Offers guaranteed approval. If you encounter a lender that claims to provide guaranteed short-term loans, be wary. Legitimate lenders ask about your monthly income and expenses when you apply.
Requires money up front. If a lender requests money up front, it is likely a scam. Any loan fees are paid out of your loan amount, and you don’t pay these up front.
Violates state regulations. Legit payday lenders can’t charge you more than the maximum limits set by the state. Check the regulations in your state to make sure your lender is above board.
Add-on insurance. Some payday and installment lenders might encourage you to take out unnecessary insurance, such as a life insurance policy that names them as a beneficiary. This common tactic makes your loan more expensive while avoiding state APR regulations.
Tribal lenders. Tribal loans are payday or installment loans offered by Native American tribes, and they typically don’t follow state and federal consumer protection laws. These loans may be easier to get than some options, but APRs can reach up to a staggering 1,000% and should be avoided.
When to use bad credit financing
While it can be expensive to borrow money with bad credit, there are a few situations where it may make sense:
For emergency expenses. Even with the best of planning, life happens. A bad credit loan can be a lifesaver in meeting unexpected expenses like car repairs or medical bills.
To tide you over until payday. If you find yourself living paycheck to paycheck, cash advance apps are an interest-free way to get a quick influx of cash before your next payday.
To build credit. Getting a bad credit loan and making regular, on-time payments could help improve your credit as you build a positive payment history. But this can backfire if adding a new monthly bill stretches your budget to the point where you risk defaulting.
What does it mean to have a credit score under 600?
Credit scores from 300 to 600 are considered poor to fair, according to Experian, one of three major credit bureaus. Here’s how Experian explains the ranges of FICO scores — the most commonly used scoring model by lenders.
300 to 579: Poor
580 to 669: Fair
670 to 739: Good
740 to 799: Very good
800 to 850: Exceptional
Your best chance to get a loan is to have a score of 670 or higher, but the most competitive rates typically go to borrowers with credit scores of 740 or higher. But, lenders vary widely with minimum credit requirements to qualify for loans.
Alternatives to bad credit financing
If you have bad credit, you might want to consider options besides borrowing money, since many loans may be out of reach. These include:
Debt repayment strategies offer more sustainable ways to get out of debt, including the snowball method, which involves paying down small debts first, or the avalanche method, where you pay down accounts with the highest rates first.
Debt relief provides a range of services for paying down debt, including credit counseling, debt settlement or even bankruptcy if there are no other options.
Paycheck advances may be available through some employers as a company benefit, typically without a credit check and at the same cost for everyone. Ask your company’s accounting or HR department.
Home equity loans and lines of credit (HELOCs) allow you to use your home as collateral for a loan, making it easier to qualify with poor credit.
Government assistance. Consider looking into government assistance programs such as the Supplemental Nutrition Assistance Program (SNAP) or Temporary Assistance for Needy Families (TANF) for cash and food assistance if making ends meet is a constant worry.
Frequently asked questions
What are the easiest loans for bad credit?
The easiest way to get a loan if you have bad credit is to apply with a bad credit personal loan or installment lender or a cash advance app provider. Cash advance apps don’t run credit checks, and some installment lenders only require a soft credit check, but you’ll still need some form of income to qualify.
What is the lowest credit score to get a personal loan?
While this varies by provider, you could potentially secure a personal loan with a credit score as low as 300. Upstart is one lender that offers loans to borrowers with scores of 300 and up, provided you meet its income and other requirements.
Is it possible to get a $3000 loan with bad credit?
Yes. There are both personal loans and installment loans that offer that amount and lenders that specialize in loans for bad credit borrowers. Just be aware that your rates could be on the high side and you may have to pay an origination fee.
How can I improve my credit score?
Consider taking steps to improve your credit score before you apply to qualify for lower rates, higher amounts and an all-around better deal:
Sign up for Experian Boost®, a service that reports payments like utility bills, your cell phone bill and rent to credit agencies to increase your credit score.
Check your credit report for mistakes that could be negatively affecting your credit, and contact the creditor if you see anything off.
Stay on top of your bills and contact your creditors if you think you might be late on a payment. The most important factor in your credit score is your history of on-time repayments.
Keep your credit cards open even after you pay off your credit card debt. The more access to unused credit you have, the lower your credit utilization ratio — which also plays into your credit score.
Consider a credit-builder loan if your credit history is too thin. These can add a history of positive repayments to your credit report — often while helping you build an emergency fund.
Lacey Stark is a freelance personal finance writer for Finder, specializing
in banking, loans, investing, estate planning, and more. She has 20
years of experience writing and editing for magazines, newspapers, and
online publications. A word nerd from childhood, Lacey officially got her
start reporting on live sporting events and moved on to cover topics
such as construction, technology, and travel before finding her niche in
personal finance. Originally from New England, she received her
bachelor’s degree from the University of Denver and completed a
postgraduate journalism program at Metropolitan State University also
in Denver. She currently lives in Chicagoland with her dog Chunk and
likes to read and play golf. See full bio
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