As the notion goes, if you have a high credit score, your chances for taking out a loan becomes much more secure. Loans which get approved for higher credit scores are highly likely to have a lower interest rate. Whereas, personal loans with a bad credit score are often the opposite. Yet, some lenders provide loans with satisfactory interest rates to those with a lower credit score (such as in the poor range which is below 580).

This loan is often issued for the purpose of achieving emergency expenses, medical bills, debt consolidation & fulfilling other financing requirements.

If you’re searching for such loans, especially the ones with lower scores, here’s a list of bad credit loans that we have personally put together for you.

We have categorized loan options based on fees, interest rates and repayment options. So buckle up, let’s explore the finest loan options especially for someone who is dealing with bad credit.

Best Loan Lenders for a Credit Score Under 580

Oportun

Oportun allows you to take out a loan at a meagre price of as less as $300. It’s one of those loan types which are optimal for borrowers who are searching to take out a loan for a few hundred dollars. Oportun lets borrowers apply for a maximum amount of $10,000.

If you’re opting in for Oportun for a loan take out, you don’t require any prior credit history. It’s one of the reasons why Oportun is generally considered a suitable option.

Obviously, if you’re applying for a loan with a higher credit score, it will increase your overall chance of getting the loan but even if you don’t have one, you don’t have to worry with Oportun. You can take out a loan on the same day! Although, you will be required to pay off an administrative fee of up to 10% of the principal amount.

The annual percentage rate (APR) goes as high as up to 35.99%!

Upstart

Upstart offers loan options for bad credit as minimum as 300. The platform is great for individuals who are looking to apply for loans with a limited to no-credit history.

There’s a chance that you (as a borrower) may have a very low credit score because of limited credit activity. Other times, you may struggle with a credit history just because you don’t have any credit score at all. Upstart offers loan options for both scenarios.

Upstart comes with an Annual Percentage Rate of 7.40% – 35.99%.

These loan types are often issued to individuals who are looking for options such as debt consolidation, credit card refinancing, wedding, house moving or paying off medical bills. The loan amount can fall anywhere between $1,000 and extend as much as up to $50,000.

The loan term is around 36 to 60 months and the origination fee can cost you anywhere between 0% to 12% of the overall amount (for which you’re applying).

OneMain Financial

If you’re someone with a poor or fair credit score (a credit score falling somewhere between 300 to 579 or even around 669), then OneMain Financial is a decent option.

You can take out a loan from OneMain Financials for multiple purposes. It can be debt consolidation, taking care of major expenses or any sort of emergency cost.

The loan amount can be anywhere around $1,500 to $20,000. The annual percentage rate (APR) can fall under 18% and grow as much as up to 36%! 

You have a timeline to return this loan over a period of 24-60 months. There’s also an origination fee of approximately around $25 and can go as much as up to $500.

Avant Personal Loans

Do you want to take out a loan with a bare minimum credit score requirement? If your credit score is less than 580, then Avant is your perfect option. This is a loan type that provides funding for you as early as the next business day. Once the loan amount is approved and you have successfully submitted the necessary documents ensuring all the information is complete and accurately sent forward, Avant will take your request under scrutiny. If you’re eligible, it will dispatch the amount and you will get funded without a hitch.

If you’re applying for the first time with Avant, be mentally free as there are no conditions for pre-qualifying. You can easily qualify for the loan amount with a soft credit check. In fact, you will not have to go through any hard inquiry and you can receive your quick funding. Even though, if you’re late, you will only have to pay $25 worth of late payment surcharge.

Assuming that you’re late in paying off your loan amount, Avant offers a grace period of 10 days. The annual percentage rate (APR) is around 9.95% to 35.99%. The loan amount which you can take out is approximately around $2,000 and can go as much as up to $35,000. The term and condition for loan payout is around 24 to 60 months.

Universal Credit Personal Loans

Are you an entrepreneur looking to qualify for a standard business loan? Universal Credit Personal Loan is your ultimate stop shop. It’s a great fit for someone who is looking to take out an amount of $1,000 to $50,000 for a business purpose. Universal Credit is a decent option for loan take outs because it’s one of the many loan options which allow borrowers to take out personal loans for business purposes. It’s something that many personal loan borrowers prohibit. Universal Credit also comes with a credit monitoring tool to assist/monitor any changes that may appear on your credit score because of a loan takeout.

It’s one of the perks which encourage positive credit habits.

The loan term for this type of loan falls anywhere from 6 to 60 months. To take out the Universal Credit loan, one requires a minimum credit score of 560. There’s also an origination fee of around 5.25% which goes as much as up to 9.99%. The best part? You can receive funding as soon as the next business day when you apply for this loan type.

Conclusion


Exploring loan options with a credit score below 580 can feel challenging, but it’s far from impossible. Lenders like Oportun, Upstart, OneMain Financial, Avant, and Universal Credit offer tailored solutions to help borrowers secure funding despite having a less-than-ideal credit history. Each lender has unique benefits, from flexible repayment terms to fast funding and minimal credit score requirements.

When choosing a loan, consider the annual percentage rate (APR), origination fees, repayment timelines, and the specific purpose of the loan. By carefully evaluating your needs and the loan terms, you can make an informed decision that not only addresses your immediate financial concerns but also supports rebuilding your credit.

Remember, while securing a loan can provide relief, responsible borrowing and timely repayments are key to improving your credit score and financial future. With the right choice, these bad credit loan options can serve as a stepping stone to better opportunities ahead.

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