Bad-credit personal loans

Compare offers from lenders who work with fair and bad credit. Soft credit check. No fee to apply.

Person reviewing financial options with laptop and credit card
No FICO impactSoft check to compare
Builds creditReports to bureaus

What counts as "bad credit"?

Credit scores are grouped into five FICO bands. If your score is below 670, most traditional banks will decline you outright. That doesn't mean you can't borrow — it means you need to compare lenders who specifically work with your credit range.

REI LoanDoc uses a soft credit inquiry to match you with lenders whose published criteria fit your profile. You see your options first, then choose whether — and where — to formally apply. No hard inquiries until you decide.

Pros and cons of bad-credit personal loans

Pros

  • Soft credit check to compare — no upfront impact on your score
  • Our network includes lenders accepting FICO scores as low as 580
  • On-time installment payments build positive payment history
  • No collateral required — unsecured personal loan
  • Fixed monthly payment is easier to budget than revolving credit card debt

Cons

  • Higher APR than loans available to prime borrowers
  • Origination fees can reduce the net amount you receive
  • Hard inquiry at formal application temporarily lowers your score
  • Without a realistic repayment plan, there is a risk of worsening debt load

Personal loan alternatives

For someone with poor credit who needs $500 – $5,000, the marketplace path is usually the cheapest option — but not always.

Payday loan
Title loan
Cash advance
Credit-union PAL
Typical APR
18% – 35.55%
200% – 400%
100% – 300%
25% – 30% + fees
Capped at 28%
Hard pull?
Only after you choose a lender
Often no
Often no
No
Yes
Key risk
Moderate cost
Very high cost — cycle risk
Risk of vehicle repossession
Compounds quickly
Membership required

Warning signs of predatory lending

Consumer advocates and the CFPB identify these six practices as common red flags. If any lender — in or outside our network — shows these signs, walk away.

"Guaranteed approval" with no application
Legitimate lenders always verify eligibility. "Guaranteed" approval before any review is a scam signal, not a benefit.
Upfront fees before your loan is funded
Legitimate origination fees are deducted from disbursement. Any fee charged before money arrives should be a hard stop.
APRs above 36% on small-dollar loans
The Military Lending Act caps loans to service members at 36% APR. Many states use this as the consumer protection ceiling for all borrowers.
Pressure to decide immediately
A real loan offer does not expire in minutes. Any lender creating artificial urgency is using pressure tactics, not offering a better deal.
Requests for your online banking login
Lenders need your routing and account numbers, not your username and password. Never share online banking credentials with any third party.
No verifiable US address or support
A licensed lender must have a registered US physical address. Offshore-only contact with no US phone number is a major warning sign.

Complaints about a lender can be filed with the Consumer Financial Protection Bureau (CFPB) ↗. Filing is free and takes about 10 minutes.

Lenders that accept fair-to-poor credit

These lenders in our review network work with applicants below the prime FICO threshold.

Accepts applicants with fair or poor credit; in-person and online
$1.5k – $20k · 18% – 35.99% APR
FICO 600+ accepted; same-day funding possible
$2k – $36.5k · 7.99% – 35.99% APR
FICO 580+ considered; next business day funding
$2k – $35k · 9.95% – 35.99% APR
AI-based approvals; considers education and employment beyond FICO
$1k – $50k · 7.8% – 35.99% APR
 High APR
No minimum FICO required; APR significantly above 35.55%
$500 – $4k · APR varies by state
 High APR
FICO 550+ accepted in most states; APR may exceed 35.55%
$1k – $10k · APR varies by state

See all lender reviews

Frequently asked questions

See all FAQs

Compare bad-credit personal loan offers

The REI LoanDoc matching form takes approximately 2 minutes and uses a soft credit inquiry. A Social Security number is not required at this step.

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Disclaimer: REI LoanDoc is not a lender. Approval, APR, and terms are determined by individual lenders. See our Personal Loan Notice and Advertiser Disclosure.