4 Personal Loan Options for Credit Scores of 580 or Lower
1. Upgrade
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Overview: Upgrade is frequently rated as the best overall option for those with bad credit. Bankrate lists it as "Best overall bad credit loan" and notes that it accepts applicants with credit scores as low as 580 (or with a creditworthy co-applicant)
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Pros:
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Offers credit monitoring and responsive customer service.
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Allows a co-borrower to enhance approval odds.
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Fast funding (often in one business day).
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Cons:
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Origination fees up to ~10%.
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High potential APR range up to around 36%.
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Use Case: Ideal for debt consolidation or emergency needs when you need funds quickly and have limited credit history.
2. Avant
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Overview: Bankrate names Avant "Best for lower credit scores", accepting borrowers with scores as low as 550, making it accessible for credit scores at or below 580
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Pros:
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Low minimum credit requirement.
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Some flexibility: administration fees are partially refundable with early repayment.
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Customer support available every day of the week.
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Cons:
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High APRs in the 10–36% range.
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Origination fees up to roughly 10%.
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Use Case: A solid choice if your credit score is below prime levels, and you want relatively accessible terms.
3. LendingPoint
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Overview: A fintech lender that evaluates your full financial picture—not just your credit score—to determine loan eligibility, and explicitly offers personal loans to those with credit scores from 500 to 850
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Pros:
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Broader approval flexibility due to holistic underwriting.
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Available loan amounts up to $25K in some cases (such as merchant or point-of-purchase financing).
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Cons:
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APRs may still be high depending on your situation.
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Use Case: Best when you can demonstrate stable income and finances, even if your credit score is low.
4. Peer-to-Peer Lending Platforms (e.g., Prosper)
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Overview: P2P lenders like Prosper connect borrowers with individual investors and may offer personal loans—even to those with lower credit scores. Prosper loans range from $2,000 to $50,000 and have facilitated billions in lending
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Pros:
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Competitive rates possible, depending on investor appetite.
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Potentially larger loan amounts.
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Cons:
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Approval depends on investor demand for your credit profile.
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Interest rates can be high due to increased credit risk.
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Use Case: Consider this if your application can attract investor funding despite your credit score.
Frequently Asked Questions (FAQs)
1. Can I get a personal loan with a credit score of 580?
Answer: Yes, you can—but expect limited options and higher costs. A 580 credit score is considered "bad" or at best “fair,” and while some online lenders (like Upgrade, Avant, LendingPoint, and P2P platforms) may approve you, they typically charge higher APRs and may require lower loan amounts. It’s wise to compare offers, check for co-borrower options, and only borrow what you can afford to repay
2. Will taking a loan improve my credit score?
Answer: Potentially, yes. Regular, on-time payments on a personal loan can help build your credit over time, particularly if it's reported to the credit bureaus (as with most major lenders). If you're aiming to rebuild credit, consider also a credit-builder loan, often offered by credit unions or community lenders, where your payments are reported and held until completion, then released to you—boosting your credit history through consistent payments
3. Are there alternatives to high-interest bad credit personal loans?
Answer: Absolutely. Explore:
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Credit-builder loans–great for credit repair, though they don’t provide immediate cash
Hardship or small-dollar loans from credit unions—often more flexible and lower-cost
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Nonprofit or community programs like Mission Asset Fund facilitate zero-interest loans and credit-building for low-income individuals
Conclusion
If your credit score is 580 or lower, you still have viable personal loan options, though they often come with higher interest rates and extra fees. Among the most accessible are:
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Upgrade best overall for bad credit, quick funding, and co-borrower flexibility.
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Avant is good for lower scores, with flexible terms and refund options.
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LendingPoint's holistic review of your financial profile, rather than just your score.
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Peer-to-peer platforms (like Prosper) may provide larger amounts and competitive rates depending on investor demand.
For long-term financial health, consider alternatives like credit-builder loans, credit union hardship loans, or nonprofit credit-building programs—they might not offer fast funds, but they can boost your credit and help you qualify for better terms in the future.