For many people, a low credit score can feel like an insurmountable barrier when applying for a personal loan. While having a high credit score certainly increases the likelihood of approval and secures better interest rates, individuals with credit scores of 580 or lower still have options.
Several lenders specifically cater to those with poor credit, offering financial solutions for emergency expenses, medical bills, debt consolidation, and other needs. These lenders understand that past financial hardships shouldn’t completely prevent someone from borrowing money when necessary.
Below, we’ve rounded up the best personal loan lenders that accept applicants with a credit score of 580 or lower. We considered factors like interest rates, fees, loan terms, and flexibility in repayment to help you make an informed decision.
Best Personal Loan Lenders for Credit Scores of 580 or Lower
1. Best for People Without a Credit History: Upstart Personal Loans
If you have little to no credit history, Upstart might be your best bet. Unlike traditional lenders that rely primarily on credit scores, Upstart uses artificial intelligence and alternative data—such as education and employment history—to assess applicants.
- APR: 7.80% – 35.99%
- Loan Amounts: $1,000 to $50,000
- Loan Terms: 36 or 60 months
- Minimum Credit Score: 300 (or no credit history)
- Origination Fee: 0% to 12% of the loan amount
- Funding Time: 99% of loans are sent by the next business day
💡 Why Choose Upstart?
✔️ Accepts borrowers with no credit history
✔️ No early payoff fees
✔️ Quick funding process
⚠️ Considerations:
❌ High origination fees (up to 12%)
❌ Late fees can be costly
❌ Requires a Social Security number
2. Best for Flexible Terms: OneMain Financial Personal Loans
OneMain Financial is known for offering loans to borrowers with poor or limited credit history while providing flexible repayment options. Unlike many online lenders, OneMain has physical branches, allowing for in-person consultations to discuss loan options.
- APR: 18.00% – 35.99%
- Loan Amounts: $1,500 to $20,000
- Loan Terms: 24, 36, 48, or 60 months
- Minimum Credit Score: No set requirement
- Origination Fee: Varies by state
💡 Why Choose OneMain Financial?
✔️ No minimum credit score requirement
✔️ In-person customer service at branches
✔️ Secured and unsecured loan options
⚠️ Considerations:
❌ High interest rates compared to other lenders
❌ Loan maximums are lower than some competitors
3. Best for Quick Funding: Avant Personal Loans
Avant is a great option if you need funds fast. The application process is simple, and many borrowers receive their funds as soon as the next business day. Avant is also more forgiving of past financial mistakes than other lenders.
- APR: 9.95% – 35.99%
- Loan Amounts: $2,000 to $35,000
- Loan Terms: 12 to 60 months
- Minimum Credit Score: 580
- Origination Fee: Up to 4.75% of the loan amount
- Funding Time: As soon as the next business day
💡 Why Choose Avant?
✔️ Quick loan approval and funding
✔️ Accepts borrowers with lower credit scores
✔️ Fixed-rate repayment plans
⚠️ Considerations:
❌ Higher APRs for lower credit scores
❌ Origination fees apply
4. Best for Small Business Owners: Universal Credit
Universal Credit is a great choice for self-employed individuals or small business owners who may struggle to qualify for traditional loans. The company specializes in helping borrowers consolidate debt, offering tools like free credit monitoring.
- APR: 11.69% – 35.99%
- Loan Amounts: $1,000 to $50,000
- Loan Terms: 36 to 60 months
- Minimum Credit Score: 580
- Origination Fee: 5.25% – 9.99%
💡 Why Choose Universal Credit?
✔️ Allows self-employed borrowers to qualify
✔️ Free credit monitoring included
✔️ Can help consolidate high-interest debt
⚠️ Considerations:
❌ High origination fees
❌ Higher APRs for lower credit scores
5. Best for Low Borrowing Amounts: Oportun
Oportun is designed for borrowers who need small loans but don’t have strong credit. It’s a good option for covering minor emergencies or unexpected expenses.
- APR: 7.99% – 35.99%
- Loan Amounts: $300 to $10,000
- Loan Terms: 12 to 48 months
- Minimum Credit Score: No set requirement
- Funding Time: Same day for some applicants
💡 Why Choose Oportun?
✔️ No strict credit score requirements
✔️ Allows very small loan amounts
✔️ Fast funding available
⚠️ Considerations:
❌ Interest rates can be high for some borrowers
❌ Loan amount caps at $10,000
How to Choose the Right Personal Loan Lender for You
If you have a low credit score and need a personal loan, consider the following factors before applying:
✅ APR and Interest Rates – A lower interest rate will save you money over time.
✅ Loan Amounts – Make sure the lender offers the amount you need.
✅ Repayment Terms – Choose a repayment schedule that fits your budget.
✅ Fees – Be mindful of origination fees, late fees, and early repayment penalties.
✅ Funding Speed – If you need money quickly, prioritize lenders with same-day or next-day funding.
Final Thoughts
While a low credit score can limit your options, these lenders provide viable solutions for borrowers who might otherwise struggle to get approved. Whether you’re looking to consolidate debt, cover an emergency expense, or fund a personal goal, the right lender can help you access the funds you need.
💡 Pro Tip: Before applying for a loan, check your credit score and explore ways to improve it. Even a small increase in your score can lead to better interest rates and lower borrowing costs.
Would you like assistance in comparing loan offers, or do you need recommendations for improving your credit score? Let us know! 🚀
