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Personal Loans for Bad Credit: Get Approved Today (2025 Guide)

Bad credit doesn't mean no options. Discover how to get a personal loan with a 500–600 credit score, what rates to expect, and which lenders approve bad credit borrowers.

By Aria Loans Editorial Team · Educational information, not personalized financial advice.

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A low credit score feels like a locked door — but there are more keys than you think. Personal loans for bad credit are real, and thousands of Americans with scores under 600 get approved every single day.

What Counts as "Bad Credit"?

Credit score ranges (FICO): - **Exceptional**: 800–850 - **Very Good**: 740–799 - **Good**: 670–739 - **Fair**: 580–669 - **Poor (Bad)**: 300–579

If your score is below 580, you're in "bad credit" territory. Between 580–640 is "fair credit" — and many lenders serve both groups.

Can You Really Get a Personal Loan With Bad Credit?

Yes — but with important caveats:

**You'll pay a higher APR.** Bad credit borrowers typically see rates from 24.99%–35.99%. It's the cost lenders charge to offset their risk.
**Loan amounts may be smaller.** You might qualify for $1,000–$15,000 rather than the full $100,000 maximum.
**Approval isn't guaranteed.** Each lender has its own underwriting criteria. One rejection doesn't mean all lenders will reject you.

How to Get Approved With Bad Credit

1. Apply to Multiple Lenders at Once Using a marketplace like Aria Loans lets you see which lenders will work with your credit profile before committing. One application, 30+ lenders — they compete for your business regardless of your score.

2. Add a Co-Signer A co-signer with good credit acts as a guarantor. Their credit profile dramatically improves your approval odds and rate. Be aware: if you miss payments, it affects their credit too.

3. Show Strong Income Lenders care about your ability to repay — not just your credit score. If you have a solid income relative to your existing debt, many lenders will overlook a lower score.

4. Offer Collateral (Secured Loan) Some lenders offer secured personal loans where you pledge collateral (a car, savings account). This reduces the lender's risk and often means better rates.

5. Improve Your Score First — Even a Little Going from 560 to 590 might not sound like much, but it can move you into a different risk tier. Pay down credit card balances (reduce utilization) and dispute any errors on your report before applying.

What Rates to Expect With Bad Credit

| Credit Score | Typical APR | $5,000 Loan Cost Over 3 Years | |---|---|---| | 620–639 | 24.99%–29.99% | ~$1,950–$2,500 in interest | | 600–619 | 28.99%–32.99% | ~$2,400–$3,100 in interest | | 580–599 | 31.99%–35.99% | ~$2,900–$3,700 in interest |

Always calculate the total cost of the loan (not just the monthly payment) before accepting an offer.

Red Flags to Avoid

**No credit check" guarantees**: Legitimate lenders always check your ability to repay.
**Upfront fees before approval**: Reputable lenders take fees from your loan proceeds, not before.
**Payday loan APRs**: Some "bad credit" products carry APRs of 200%–400%. Personal loans are far better.
**Pressure to decide instantly**: Good lenders give you time to review your offer.

Start Here: Check Your Options Without Hurting Your Score

Aria Loans uses a soft credit check that doesn't affect your score. You'll see real offers from 30+ lenders in minutes — including lenders that specialize in fair and bad credit borrowers.

**[See My Options — No Credit Score Impact →](/apply)**

FAQ: Personal Loans for Bad Credit

What is the minimum credit score for a personal loan? Some lenders will approve borrowers with scores as low as 500–520. Most require at least 560–580. The lower your score, the higher the rate you'll be offered.

How much can I borrow with bad credit? Typically $1,000–$25,000. Bad credit borrowers are usually offered smaller loans until they establish a track record of on-time payments.

Will applying hurt my credit score? Checking rates through a marketplace like Aria Loans uses a soft pull — no credit score impact. Only accepting a final loan offer triggers a hard pull, which may lower your score by 2–5 points temporarily.

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Aria Loans is a free comparison service for unsecured personal loans, not a lender. Compare available offers through a network of 30+ lenders; you are not guaranteed an offer from every lender. Checking offers uses a soft credit pull that does not affect your credit score. A lender may perform a hard inquiry if you proceed. Approval, available amounts, rates, funding times, and terms are not guaranteed and depend on the lender.