How to Get a Personal Loan with Bad Credit (Complete 2025 Guide)

Struggling with a Low Credit Score? Here’s the Good News.

If your credit score isn’t where you want it to be, you’re not alone. Millions of people in the U.S. face financial challenges due to low credit—yet they still need help with emergency expenses, consolidating debt, or covering essential bills.

The good news? You can absolutely get a personal loan with bad credit in 2025. In fact, many lenders now specialize in working with borrowers who have credit scores under 600.

This guide will show you exactly how to get approved, what to avoid, and which lenders are worth your time.

What Is Considered Bad Credit in 2025?

Bad credit usually means a FICO score under 580. But don’t worry—your score isn’t the only thing lenders look at when deciding whether to approve a personal loan with bad credit. Many also consider:

• Your income
• Employment status
• Recent payment history
• Existing debt

Some lenders, like Upstart or OneMain Financial, even use alternative data like job history and education.

Step-by-Step: How to Get a Personal Loan with Bad Credit

1. Check and Fix Errors in Your Credit Report

Head to AnnualCreditReport.com and pull all three credit reports for free.

Look for:

• Outdated negative items
• Payments incorrectly marked as late
• Accounts that don’t belong to you

Fixing these could boost your credit score within weeks—improving your chances of getting a personal loan with bad credit.

2. Calculate How Much You Need (And Can Afford)

Never borrow more than necessary. Make a clear plan:

• Total amount needed (medical bill, car repair, etc.)
• Monthly repayment budget
• Ideal loan term

Keeping your request reasonable helps lenders see you as a lower risk.

3. Compare Lenders Who Specialize in Bad Credit Loans

Don’t just go with the first ad you see. Look for reputable lenders that clearly serve borrowers with low credit scores:

Lender	Min. Credit Score	Loan Range	APR	Best For
Upstart	580+	$1,000–$50,000	6.4%–35.99%	Fast online approval
OneMain Financial	None	$1,500–$20,000	18%–35.99%	In-person branches
Avant	550+	$2,000–$35,000	9.95%–35.99%	Flexible repayment plans
LendingPoint	600+	$2,000–$36,500	7.99%–35.99%	Low income-friendly loans

4. Prequalify Without Hurting Your Credit

Look for lenders offering soft credit checks for prequalification. This lets you see:

• Estimated loan terms
• Potential interest rate
• Approval odds

All without affecting your credit score.

5. Consider a Co-signer or Collateral

If your credit is very low, two ways to improve approval odds:

• Get a co-signer with good credit
• Secure the loan with a vehicle or savings account

This gives lenders more confidence when offering a personal loan with bad credit.

6. Apply Smart (Not Everywhere at Once)

Too many hard inquiries can lower your score. Stick to 1–3 strong applications—ideally after prequalification.

Choose only trusted lenders with transparent terms.

What to Do If You’re Denied

Getting denied doesn’t mean it’s over. Try these options:

• Apply for a credit-builder loan
• Look into Payday Alternative Loans (PALs)
• Consider peer-to-peer lending platforms
• Ask a family member for a small loan with clear terms

These options help you build credit and prepare for a future personal loan with bad credit.

Avoid These Common Mistakes

When searching for a personal loan with bad credit, avoid:

• “No credit check” payday lenders
• Triple-digit APRs
• Hidden origination or prepayment fees
• Loan flipping (repeatedly refinancing)

Stick with lenders who are transparent and reputable.

Quick Tips to Boost Approval Odds

• Pay off small debts
• Keep your bank balance stable
• Apply to lenders who work with poor credit
• Be honest in your application
• Check lender reviews (Trustpilot, BBB)

Even small improvements can help you qualify for a better personal loan with bad credit.

Why This Matters

Inflation and rising expenses have left many Americans financially strained. A well-managed personal loan with bad credit can be your first step toward:

• Lower stress
• Improved credit
• Long-term financial stability

Final Takeaway

Needing a personal loan with bad credit doesn’t make you irresponsible—it makes you human.

With the right strategy and lender, you can get approved and take control of your finances again.

FAQs – Personal Loan with Bad Credit

Q1: Can I get a personal loan with bad credit and no co-signer?

• Yes, many lenders approve borrowers without co-signers. Online lenders like Upstart and Avant are good options.

Q2: What is the minimum credit score to get a personal loan in 2025?

• Some lenders approve loans with scores as low as 550.

Q3: Will applying hurt my credit?

• Only formal applications trigger a hard inquiry. Prequalification doesn’t affect your score.

Q4: How much can I borrow with bad credit?

• It depends on the lender, but most offer $1,000 to $20,000.