Bad credit doesn't mean no options. But it does mean you need to be smart about which lenders you choose. Here's what actually works.
(Based on 150+ real experiences from borrowers with credit scores below 600.)
⚠️ Important Warning:
With bad credit, you're vulnerable to predatory lenders. Avoid payday loans (400%+ APRs), avoid upfront fee scams, and never pay before getting approved. The lenders below are legitimate but rates will be high (25%-36% APR). Only borrow what you absolutely need and have a solid plan to repay.
Typical APR Range
Yes, it's high. But it's better than payday loans at 400%+ or maxed-out credit cards.
Typical Loan Amounts
Lenders limit amounts for bad credit. Start small, build history, refinance later.
Funding Speed
Good news: bad credit lenders fund fast. Most within 1-2 business days.
Min Credit: 580 | APR: 9.95%-35.99%
Avant accepts credit scores as low as 580 and actually approves people when others say no. Expect high APRs (25%-36%) and admin fees up to 4.75%, but funding is fast (1-2 business days). Best if you need money quickly and have limited options.
Min Credit: 600 | APR: 6.5%-35.99%
If your credit is low but you have education or a stable job, Upstart's AI might approve you when traditional lenders won't. They consider factors beyond credit score. Watch for origination fees (0%-10%) which increase your effective APR.
Best for: Good for fair credit
APR: Often 12%-18% (much better than online lenders)
Don't overlook your local credit union. They often have "bad credit" programs with APRs of 12%-18%—dramatically better than Avant or Upstart. You'll need to become a member (usually free or $5-25), but it's worth it for the savings.
How to find one: Search "credit union near me" or visit MyCreditUnion.gov
25% of credit reports have errors. Pull your free report from AnnualCreditReport.com and dispute any mistakes. This alone can boost your score 20-50 points.
Ask a family member with good credit to add you as an authorized user on their oldest credit card. Their good history can improve your score within 30-60 days.
If it's not an emergency, spend 3-6 months making on-time payments and paying down balances. Getting your score from 580 to 620 opens up much better loan options.
Soft credit check only. See your options without impacting your score.