How to get a personal loan with bad credit

You may be eligible for a bad credit personal loan with a score below 580.

The average personal loan rate is currently at 12.43%, according to Bankrate's data as of Aug. 26, 2026. But if you have bad credit, some lenders could charge you an interest rate close to 36%.

Personal loan lenders specializing in bad credit loans will likely scrutinize your income and employment history more closely.

You should explore alternative solutions before committing to a personal loan with a high interest rate.

If you want a low rate on a personal loan, you'll need good credit. However, that's not the reality for most borrowers. In fact, TransUnion data shows that people in the subprime and near prime categories — credit scores between 580 and 659 — made up the majority of loans (67%) at the end of 2025.

To get a personal loan with bad credit, you need a steady income and employment history, and the process will involve a few extra steps. The basic application is the same, but you'll need to pay extra attention to the terms you're offered to be sure they make sense.

In addition to higher rates and fees, you may be limited to shorter terms and lower loan amounts. You may need to do a little more shopping to find legit bad credit lenders and weed out the predatory ones.

Knowing the common approval requirements and how to use a personal loan calculator will also help you to compare offers from different bad credit lenders when you're ready to finalize your loan.

What to consider before getting a loan with bad credit

When it comes to borrowing a personal loan when your credit is in bad shape, you're really getting the short end of the stick. Not only will the financing itself cost more, but you'll have less access to funds and have less time to repay the loan.

Weigh the drawbacks of adding a fixed monthly payment to your budget before you make a final decision. This is why it's best to hold off getting a personal loan until your credit improves.

It's expensive to borrow money with a low credit score. With personal loans, you'll face steep interest and fees — which leads to a high annual percentage rate (APR). Many bad credit personal lenders set APRs as high as 35.99%, and the lower your score, the more likely you'll pay the highest rate the lender can legally charge.

To illustrate, let's say you got a $2,000 loan with a three-year term. Here's how the math would look like if you got an APR of 12.43%, which is the average for personal loans as of Aug. 12, according to Bankrate's data, versus an APR of 35.99%.