Our goal at Credible Operations, Inc., NMLS No. 1681276, referred to as “Reliable” below, is to provide you with the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who compensate us for our services, all opinions are our own.
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Before approving a borrower for a personal loan, most lenders will look for a good to excellent credit score, stable income and employment history, and a low debt-to-income ratio. While it is possible to get a loan with a 550 credit score, it does have drawbacks. You may have to settle for a higher interest rate or expensive fees – all of which add up to the lifetime cost of a personal loan.

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reliable makes it easy Compare rates from personal lenders Willing to work with borrowers who have poor or fair credit.

Can I get a personal loan with 550 credit score?

You may be able to secure a personal loan with a 550 credit score. But keep in mind that you’ll have to shop around, as not all lenders will offer to someone with a low credit score.

lenders who give Loans to borrowers with low credit scores May charge higher interest rates and fees. They may also require you to hold collateral or your assets.

What are considered bad, good and excellent credit scores?

Most credit scores range from 300 to 850. Here’s how they break down:

  • Below 580 – Poor
  • 580-669 — Fair
  • 670-739 – good
  • 740-850 — Excellent

How credit scores affect personal loan rates

Lenders look at credit scores to get an idea of ​​how well you’ve managed credit in the past, and how you might manage a new loan. a high credit score Can signal to lenders that you are more likely to repay the loan on time and as agreed. You may have a better chance of getting approved for a loan with a lower interest rate.

Conversely, a low credit score can raise a flag to lenders that you’ve had trouble managing credit in the past — and may have trouble paying off a new loan. Since the lender considers you a risky borrower, it is likely that you will be offered higher interest rates.

best lender for bad credit personal loan

These eight trusted partner lenders offer bad credit loan options.


Avant is an online lending platform that has been around since 2013 and has offered loans to over 600,000 borrowers.

  • Loan: from $2,000 $35,000
  • Loan Terms: 2 to 5 years
  • Minimum Credit Score: 550
  • May be good for: Lenders who need fast funding

best egg

Best Egg is an online lending platform that has served over 500,000 people with over $500,000 in funding.

  • Loan: $5,000 to $50,000
  • Loan Terms: 2 to 5 years
  • Minimum Credit Score: 600
  • May be good for: Borrowers who want to repay their loan early

Lending Club

LendingClub is a peer-to-peer lending platform that connects borrowers with investors who want to lend them money.

  • Loan: from $1,000 $40,000
  • Loan Terms: 3 or 5 years
  • Minimum Credit Score: 600
  • May be good for: Borrowers who want to consolidate credit card debt

lending point

LendingPoint is a direct personal lender that offers loans up to $36,500 as soon as the next business day.

  • Loan: $2,000 to $36,500
  • Loan Terms: 2 to 4 years
  • Minimum Credit Score: 580
  • May be good for: Borrowers who need a small personal loan

OneMan Financial

OneMain is a large lender that offers both secured and unsecured personal loans up to $20,000.

  • Loan: $1,500 to $20,000
  • Loan Terms: 2 to 5 years
  • Minimum Credit Score: None
  • May be good for: Lenders who wish to borrow a small amount

universal credit

Powered by Upgrade, a loan broker in San Francisco, Universal Credit is a lending platform that offers and services personal loans funded through partner banks.

  • Loan: from $1,000 $50,000
  • Loan Terms: 3 to 5 years
  • Minimum Credit Score: 560
  • May be good for: Lenders who want faster funding


Upgrade is an online lender that offers quick approval of fixed rate personal loans up to $50,000.

  • Loan: $1,000 to $50,000
  • Loan Terms: 2 to 7 years
  • Minimum Credit Score: 560
  • May be good for: Borrowers who want to build credit history

Nouveau riche

Upstart is an online lending platform that offers personal loans ranging from $1,000 to $50,000 from multiple lending partners.

  • Loan: $1,000 to $50,000
  • Loan Terms: 3 to 5 years
  • Minimum Credit Score: 580
  • May be good for: Borrowers with a strong education and job history

You can do this View Pre-qualified Personal Loan Rates In minutes, without affecting your credit, when you use Credible.

Other Lenders to Consider

The following three lenders are not trusted partners, so you will not be able to easily compare your rates with them on a reliable platform. They do not disclose their minimum credit score requirements, but they may also be worth considering if you are looking for a personal loan with a bad credit score.

citizen bank

  • Loan: $5,000 to $50,000
  • Loan Terms: 3 to 7 years


  • Loan: $3,000 to $50,000
  • Loan Terms: 2 to 5 years

rocket loan

  • Loan: $2,000 to $45,000
  • Loan Terms: 3 or 5 years


Reliable evaluation of Best personal loan lenders for bad credit based on factors like customer experience, minimum fixed rate, maximum loan amount, financing time, loan terms and charges. Credible’s team of experts gathered information through each lender’s website, customer service department, and email support. Each data point was verified to ensure that it is up to date.

How much does a 550 credit score loan cost?

Many factors can affect the cost of a personal loan, including your interest rate, APR, fees, loan term and credit score. Here is an example of how some of these factors can affect the cost of a personal loan.

Imagine you take a personal loan of $5,000 with a tenor of three years. You have good credit and lock-in with low interest rate of 11%. Your monthly payment would be $164 and your total interest cost would be $893. Now let us look at 550 credit score with the same loan amount and repayment tenure which would qualify you for an interest rate of 35%. Your monthly payment rockets up to $226 and your total interest cost increases to $3,142.

In this example, an improved credit score would save you $2,249 in interest costs over the term of the loan.

What are the Pros and Cons of a 550 Credit Score Loan?

Before going ahead with a personal loan with bad credit, make sure to consider the pros and cons.


  • Easy Application – usually, you can Apply online for personal loan Within minutes from the comfort of your home. You will not need to visit the bank and go through the lengthy application process.
  • flexible – You can use a personal loan to cover any expenses. Do you need cash to pay for car repairs, medical bills or home improvement projectWell, this can be a great option.
  • Fast Funding – Many personal loan lenders offer fast funding, so you don’t have to wait weeks or even months to collect the money you need. This is great news if you have an emergency expense that can’t wait.
  • Opportunity to improve debt As long as you make your payments on time, a personal loan can improve your credit. The history of timely payments will slowly but surely build it up and increase your score.


  • High interest rates – You could be stuck with a higher interest rate, which could cost you thousands of additional dollars over the lifetime of your loan.
  • Expensive Fee – Some lenders that offer 550 credit score loans charge a variety of costly fees. These may include basic fee, application fee, late fee and insufficient funds fee.
  • Collateral may be required – Depending on the lender you choose, you may need to secure your loan for collateral like a savings account or other asset. If you fail to make your payment, the lender can forfeit the collateral.
  • more debt- if you are already struggling with debtPersonal loans can add to the problem. This is especially true if you borrow more than you can comfortably afford to repay.

If you decide that a personal loan is right for your needs, you can easily Compare rates from personal lenders with reliable.

Bad credit personal loan options

If you have poor credit, a personal loan is not the only option for you. Here are some options that can help you meet your financial goals.

  • Work on building your credit. Unless you need a personal loan immediately, it may make sense build your credit before you apply for one. To do so, pay all your bills on time and in full. Try to pay off existing debts to help improve your credit utilization ratio. You may also consider becoming an authorized user on the credit card.
  • Consider a secured loan. whereas secured loan Just like title loans and payday loans are available, they are almost never a good idea. They usually come with high interest rates and exorbitant fees. Plus, you’ll need to secure them to assets like your car or paycheck. But a secured personal loan may be an option if you have an asset that you can use as collateral.
  • Apply with a cosigner. If you have a friend or family member with good credit, you can ask them to act as a co-signer. Their good credit can help you qualify for a loan at a lower interest rate. Just keep in mind that as a co-signer, they will be responsible for repaying the loan if you don’t.
  • Borrow from friends and family. You may be able to get a loan from a parent, sibling or someone else at a lower interest rate. If you go this route, make sure you outline the terms in writing so that everyone is on the same page.
  • Work with a credit counselor. A credit counselor may be a good fit if you want professional advice on how to improve your finances. They can help you develop a budget and create a debt management plan.