Having a credit score of 580 or lower can make getting approved for traditional personal loans difficult. Many banks and mainstream lenders prefer higher scores, but several lenders cater to borrowers with bad or fair credit by considering other factors like income, employment history, and banking history when reviewing applications. This guide highlights four personal loan options in the USA that you can consider if your credit score is 580 or lower — along with what to expect in terms of rates, requirements, and eligibility.
1. Upstart – AI‑Driven Approvals for Lower Credit Scores
Best for: Borrowers with limited or poor credit history.
Upstart is an online lending platform that evaluates more than just your credit score — such as your education, job history, and income — to determine eligibility. Because of this broader underwriting model, Upstart often approves borrowers with credit scores as low as 580 or even below. Loan amounts can range from approximately $1,000 up to $50,000, giving flexibility for different needs like debt consolidation, medical bills, or emergency expenses. Interest rates can be higher for bad credit, so make sure to compare offers before committing.
Key Features
Loans up to $50,000.
Soft credit check for prequalification (no impact on credit score).
Considers factors beyond credit score.
2. Avant – Accessible Online Personal Loans
Best for: Quick and straightforward online loan process.
Avant is one of the lenders with a relatively low minimum credit score requirement — typically around 580 — making it an option for borrowers with fair or poor credit. Avant’s loan amounts generally start around $2,000 and can go up to around $35,000. The application process is fully online and quick, and once approved, funds can be deposited as soon as the next business day.
Key Features
Loan amounts from ~$2,000 to $35,000.
APRs typically from around 9.95% up to ~35.99%.
Next‑day funding available.
3. OneMain Financial – Flexible Terms and In‑Person Support
Best for: Borrowers who want in‑person service or unconventional underwriting.
OneMain Financial is a traditional lender with both online and branch locations across the U.S. Unlike many online lenders, OneMain doesn’t publicly state a firm minimum credit score requirement — meaning approval is possible even with scores below 580, depending on your overall financial situation. It’s a solid choice if you value personalized service and flexible repayment terms.
Key Features
Personalized loan terms based on credit and income.
Potential approval even with low credit.
Both online and in‑branch options.
4. OppLoans – No Credit Score Requirement
Best for: Borrowers with very low credit scores or no credit history.
OppLoans is a lender that caters specifically to people with bad credit or limited credit history. OppLoans doesn’t require a specific minimum credit score, so approval is possible even if your score is significantly below 580. Because OppLoans takes on riskier borrowers, interest rates can be quite high — sometimes significantly higher than traditional personal loans — but eligibility is more flexible.
Key Features
No strict credit score minimum.
Loans typically range from hundreds to a few thousand dollars.
Quick same‑day or next‑day funding options.
Tips for Applying With Bad Credit
Before you submit an application:
Check your credit reports for errors that could be lowering your score.
Pre‑qualify with lenders when possible — pre‑qualification uses a soft check that won’t damage your score.
Compare offers to find the lowest APR and fees.
Prepare proof of stable income to strengthen your application.
Frequently Asked Questions (FAQs)
Can I get a personal loan with a credit score of 580 or lower?
Yes — some lenders specialize in bad credit loans and may approve borrowers with credit scores around 580 or lower by considering additional factors like income, employment history, and banking behavior.
Will applying affect my credit score?
Many lenders allow you to pre‑qualify with a soft credit check, which doesn’t affect your score. Actual applications usually involve a hard credit check, which may lower your score slightly.
Why are interest rates higher with bad credit?
Higher interest rates reflect the lender’s increased risk when lending to borrowers with a poor credit history. The lower your score, the more you can expect rates to be higher than with traditional loans.
Can I improve my chances of approval?
Yes — adding a co‑signer with good credit or having verifiable income can significantly increase approval odds and help you secure better terms.
Are there alternatives if I still can’t qualify?
Yes — options include borrowing from a credit union (often more flexible), using a secured loan (which uses collateral), or seeking a credit‑builder loan to improve your credit score over time.
Even with a credit score of 580 or lower, there are personal loan options available in the USA — especially through online lenders and speciality lenders that consider factors beyond credit scores. Always review the terms, interest rates, and fees carefully before applying.
Also Read: Bad Credit Personal Loans with Instant Guaranteed Approval up to $5,000