Having a credit score of 580 or lower can make securing a personal loan challenging. Lenders often see this as a sign of financial risk, which can lead to higher interest rates or outright loan denials. However, several lenders in the USA specialize in working with individuals who have poor credit, offering options with flexible eligibility criteria. While these loans may come with higher APRs, they can be a lifeline in emergencies or when consolidating debt. Below are four personal loan providers that consider applicants with bad credit scores.
Top 4 Personal Loans To Apply To If Your Credit Score Is 580 or Lower
1. OneMain Financial
OneMain Financial is one of the most popular personal loan providers for borrowers with poor credit scores. They look at more than just your credit history—income, employment, and overall financial stability are considered. Loan amounts range from $1,500 to $20,000, and funds can be disbursed quickly, sometimes as soon as the same day. However, expect higher interest rates compared to prime credit loans.
Key Features:
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Loan amounts: $1,500 – $20,000
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APR: 18% – 35.99%
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Funding speed: Same-day possible
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Collateral: May be required for larger loans
2. Avant
Avant is known for catering to borrowers with credit scores as low as 550, making it ideal for people with a 580 or lower score. Their application process is fully online, with quick approval times and next-day funding in most cases. They offer unsecured personal loans, so no collateral is needed.
Key Features:
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Loan amounts: $2,000 – $35,000
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APR: 9.95% – 35.99%
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Funding speed: Next business day
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Loan term: 12 – 60 months
3. Upstart
Upstart uses an AI-powered approval system that looks beyond just your credit score, factoring in your education, job history, and other financial data. This makes it easier for borrowers with low scores to qualify. The platform is particularly popular for debt consolidation and emergency funding.
Key Features:
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Loan amounts: $1,000 – $50,000
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APR: 6.4% – 35.99%
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Funding speed: 1 – 2 business days
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Loan term: 36 – 60 months
4. BadCreditLoans.com
BadCreditLoans.com is not a direct lender but an online marketplace connecting borrowers with lenders willing to work with poor credit applicants. The platform is free to use, and the application process is straightforward, with offers often appearing within minutes.
Key Features:
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Loan amounts: $500 – $10,000
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APR: 5.99% – 35.99%
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Funding speed: 1 – 2 business days
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Loan term: 3 – 72 months
Tips Before Applying for a Bad Credit Loan
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Compare APRs: With bad credit, interest rates are higher, so shop around for the best possible offer.
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Check for Prequalification: This allows you to see potential loan terms without affecting your credit score.
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Borrow Only What You Need: Since interest rates are high, take only the amount you require to reduce repayment stress.
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Read the Fine Print: Look out for origination fees, late fees, and prepayment penalties.
FAQs
What is considered a bad credit score for personal loans in the USA?
A credit score of 580 or lower is typically considered bad or poor credit by most lenders, according to the FICO scoring system.
Can I get a personal loan with a credit score of 580?
Yes, you can. Many lenders like OneMain Financial, Avant, and Upstart offer loans to people with low credit scores, although interest rates will likely be higher.
Will applying for multiple bad credit loans hurt my score?
Yes, applying for multiple loans within a short period can result in multiple hard inquiries, which can temporarily lower your credit score.
What’s the difference between a secured and unsecured bad credit loan?
A secured loan requires collateral like a car or savings account, while an unsecured loan does not. Secured loans often have lower interest rates but carry the risk of losing your asset if you default.
How can I improve my chances of approval for a bad credit loan?
You can improve your chances by showing proof of steady income, reducing existing debts, applying for smaller loan amounts, or applying with a co-signer.
Also Read: Best Loan Apps in USA for Immigrants, Students and Mortgage Seekers