5 Personal Loans To Apply To If Your Credit Score Is 580 Or Lower

The higher your credit score, the better your chances are to get approved for financial products — like personal loans — with a lower interest rate. Still, there are personal loans you can get if you have a fair or bad credit score.

Some lenders cater to applicants with lower credit scores in the poor range (below 580) to help them borrow money for emergency expenses, medical bills, debt consolidation and other financing needs.

Below, CNBC Select rounded up the best personal loan lenders that accept applicants who have credit scores of 580 or lower. We looked at fees, interest rates and flexible repayment options for different credit scores. (You can read more about our methodology below.)

Who’s this for? According to Upstart‘s website, you can apply with a minimum credit score of 300 (though, Upstart also accepts applicants with no credit history). Sometimes, a potential borrower may have a low credit score because they have extremely limited credit activity. Other times, a lack of credit history may result in them having no credit score at all. Just keep in mind that if you’re approved for the loan with a lower (or no) credit score, you may be subject to a higher interest rate.

Standout benefits: You can apply for loan amounts as low as $1,000 and as much as $50,000.

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Who’s this for? OneMain Financial generally accepts applicants with at least a poor or fair credit score (the exact credit score minimum is not disclosed but for reference, a poor credit score is between 300 and 579 and a fair credit score is between 580 and 669). 

Standout benefits: This lender offers terms that are more flexible than those of other lenders. For one, many lenders don’t allow you to apply with a co-applicant, which can be a bit of a concern if you’re worried your credit score will hurt your chances of securing a better interest rate. But with OneMain Financial, you should be able to submit your application with a co-applicant.

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Who’s this for? Avant has a minimum credit score requirement for applicants is 580. Plus, this lender can typically provide funding as early as the next business day after you’ve been approved. This makes it appealing for those who may need money in a pinch — just make sure you submit all the necessary documents and information you provide is complete and accurate so you can get funded without a hitch.

Standout benefits: According to Avant’s website, you may be able to get your funds deposited into your account as early as the next business day.

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Who’s this for? Universal Credit could be a great fit for a cash-strapped entrepreneur unable to qualify for a standard business loan. That’s because the lender lets you apply for a personal loan that can be used for business purposes, something most personal loan lenders prohibit.

Standout benefits: Universal Credit offers credit monitoring tools to help you monitor any changes to your credit score. This can be a beneficial perk that encourages positive credit habits.

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Who’s this for? Oportun offers loan amounts that start at $300, making it optimal for borrowers who just need a few hundred dollars. Oportun allows borrowers to apply for a maximum of $10,000.

Standout benefits: Oportun doesn’t require you to have a credit history to be considered for a personal loan, which makes it one of the most accessible lenders on this list. Of course, applying with a higher credit score will vastly increase your chances of qualifying for lower rates and better terms, so it’s always a good idea to raise your score if you can.

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When searching for a personal loan, it can be helpful to compare several different offers to find the best interest rate and payment terms for your needs. With this comparison tool, you’ll just need to answer a handful of questions for Even Financial to determine the top offers for you. The service is free, secure and does not affect your credit score.

This tool is provided and powered by Even Financial, a search and comparison engine that matches you with third-party lenders. Any information you provide is given directly to Even Financial and it may use this information in accordance with its own privacy policies and terms of service. By submitting your information, you agree to receive emails from Even. Select does not control and is not responsible for third party policies or practices, nor does Select have access to any data you provide. Select may receive an affiliate commission from partner offers in the Even Financial tool. The commission does not influence the selection in order of offers. 

OneMain Financial offers borrowers with less-than-perfect credit access to financial products like loans and credit cards. It stands out for allowing you to secure your loan with collateral. Personal loans are generally unsecured debt, meaning you can borrow the money outright without having to offer up something of value. But with secured loans, you agree to sign over an asset (such as your car) to the lender if you fail to repay the loan. OneMain Financial gives certain borrowers the option to take out a secured personal loan, which can sometimes result in a lower interest rate than an unsecured loan. Plus, borrowers can choose the date their monthly payments are due.

The origination fee with OneMain Financial is on the higher end: either a fixed fee between $25 and $500 or up to 10% of the loan amount, depending on which state you live in. And while there aren’t any penalties for paying off the loan early, there is a late fee that will run you either $30 or up to 15% (depending on your state).

Loan amounts

$1,500 to $20,000

Terms

24, 36, 48, 60 Months

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Avant is an online fintech platform with the mission to improve the borrowing experience for middle-income consumers. It doesn’t charge any penalties for paying off your loan balance early, but there is an origination fee of up to 4.75% and a late fee of up to $25 after the 10-day grace period.

Loan amounts

$2,000 to $35,000

Terms

24 to 60 months

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Universal Credit is a part of Upgrade, which is another lending company in the personal space. It has a low minimum credit score requirement and doesn’t charge any prepayment penalties for paying your loan off early. It does, however, charge an origination fee that can range from 5.25% to 9.99%, which can be a bit high especially compared to that of some other lenders on this list.

Loan amounts

$1,000 to $50,000

Terms

36 to 60 months

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Oportun boasts an expedient application process that should only take around 10 minutes to complete, according to the lender’s website. To apply, you’ll need to have your ID, proof of address, proof of income and a list of any recurring monthly debt payments handy.

Loan amounts

$300 to $10,000

Terms

12 to 54 months

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It is possible to pre-qualify for a personal loan without hurting your credit score. Do some research before you apply. Read reviews and learn what to consider before agreeing to take on a loan. When you’re ready to apply, follow these steps to ensure you don’t ding your score too much.

1. Shop around for the best rate. Avoid hard inquiries by knowing your credit score before you submit a formal application so you know what you might qualify for. Many lenders will allow you to submit a prequalification form. Or consider using a lending platform (such as Upstart or LendingTree) to view multiple offers at once.
2. Decide on the best offer. Choose the loan with the best monthly payment and interest rate for your budget. Be sure to look at how much the loan will cost you over the full length of the term and decide if the cost is worth it.
3. Submit a formal application. Have your social security number on hand, as well as supporting documents such as bank statements and paystubs.
4. Wait for final approval. This could take just a few minutes, an hour or up to 10 days. To facilitate speedier approval, apply during normal business hours and submit the required documents right away.
5. Get your funds. Once your loan is approved, you’ll be asked to input your bank account information so the funds are deposited into your account. You may also be able to request a paper check from your lender, or in the case of a consolidation loan, you may be able to have funds sent right to your creditors.

While FICO credit scores below 580 are considered poor, you still have access to traditional personal loans. All the lenders on this list accept applicants with bad credit scores but keep in mind you’ll be subjected to higher interest rates and may only qualify for shorter loan repayment terms. 

If you have a low credit score, you can also qualify for payday loans, but this is generally only recommended as an absolute last resort. While payday loans approve applicants with subpar credit scores, they can also have triple-digit interest rates that can easily demolish your finances. It’s better to exhaust all alternatives before even going near a payday loan.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best personal loans.

To determine which personal loans are the best for consumers with a credit score of 580 or lower, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions. When possible, we chose loans with no origination or sign-up fees, but we also included options for borrowers with lower credit scores on this list. Some of those options have origination fees.

When narrowing down and ranking the best personal loans, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides more than one financing option that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $1,000 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

The rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, many lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

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