Can you still get a personal loan with bad credit?

Summary

Sometimes, yes. No national score cutoff exists, and some lenders do consider applicants with weak credit, but at a price: Upgrade, which says bad-credit applicants may still be eligible, publishes APRs up to 35.99% and takes a fee of up to 9.99% out of the loan before you get it. Anyone who guarantees you a loan regardless of your credit history but wants a fee first is running what the FTC calls an advance-fee loan scam.

Different lenders, different doors

The CFPB points out that you don't have just one credit score. Change the scoring model, the data source, or even the day, and the number changes; most scores land between 300 and 850. Lenders also look beyond the score, at income, existing debts, the size and length of the loan, and the rates state law permits.

So whether you get an offer depends heavily on where you apply. LightStream says it only approves good-to-excellent credit profiles. Upgrade bases eligibility on factors that include your score, credit usage, and payment history, and says that even with bad credit you may still be eligible for an offer. Avant says the terms a customer gets depend on its credit determination, state law, and other factors.

What the high end of a range costs

Upgrade publishes APRs of 7.74% to 35.99% with an origination fee of 1.85% to 9.99%, deducted from the proceeds. Avant publishes 9.95% to 35.99% with an administration fee of up to 9.99%, also deducted.

Avant's own disclosure example shows what that looks like on a small loan. On a $5,700 loan, a 9.99% fee leaves an amount financed of $5,130.57. Thirty-six monthly payments of $217.66 give an APR of 29.95%. Multiply it out and you repay about $7,836, roughly $2,705 more than the cash that reached you.

The upfront-fee pitch

The FTC describes the pattern plainly: a company promises a loan or credit card regardless of your credit history, then asks for a "processing," "insurance," or "application" fee first. There is no loan and no lender, and the money disappears. These operators often target people with bad credit, sometimes by buying lists of people who searched or applied online for payday loans.

The FTC's warning signs:

Real lenders can charge an application or appraisal fee before considering your application. What they won't do is tell you that paying a fee guarantees the loan. Lenders must register in the states where they do business, and your state attorney general or banking regulator can confirm whether one has. If you have already paid, the FTC takes reports at ReportFraud.ftc.gov.

Sources

Written by Kaz (pen name). Figures are copied from providers' published pricing pages on the dates shown. We have not used these products. Corrections: contact form.