What Are the Easiest Loans to Get with Bad Credit?
A credit score below 580 closes many lending doors — but not all of them. Lenders who specialize in subprime borrowers exist across every loan category, from payday products to secured installment loans. The catch is that accessibility comes at a cost: the less credit history or score a lender requires, the higher the interest rate they typically charge to compensate for the increased default risk. This guide outlines the most accessible loan types for bad credit borrowers, with honest numbers attached to each.
Loan Options Compared
| Loan Type | Typical APR | Min. Credit Score | Max Amount | Best For |
|---|---|---|---|---|
| Payday loan | 300%–400%+ | None (income-based) | $500–$1,000 | Small, one-time emergencies with confirmed repayment date |
| Personal installment loan (bad credit) | 36%–199% | None to 500+ | $500–$5,000 | Larger needs with structured repayment over months |
| Secured personal loan | 10%–36% | Varies; collateral reduces requirement | Up to value of collateral | Borrowers who own assets and want lower rates |
| Car title loan | 100%–300%+ | None (vehicle equity-based) | 25%–50% of vehicle value | Vehicle owners; high repossession risk |
| Credit union PAL (Payday Alternative Loan) | Up to 28% | Membership required; flexible | $200–$2,000 | Credit union members; best value for small loans |
| Credit-builder loan | 6%–16% | None (designed for no/bad credit) | $300–$1,500 | Building credit history while saving |
1. Payday Loans — Most Accessible, Highest Cost
Payday lenders focus almost exclusively on income and bank account verification rather than credit scores. Most do not perform a hard credit check — see our guide to how no-credit-check loans work for the full picture. If you have a regular income and an active checking account, you can typically get approved.
The cost: A $400 payday loan with a $60 fee due in 14 days equals an APR of approximately 391%. If you cannot repay in full and roll over, you pay another $60 — and still owe the $400. The CFPB reports that the median payday borrower is in debt for five months of the year, paying $520 in fees to borrow $375.
Use only if: You have a specific, time-sensitive emergency, a confirmed repayment source, and no existing payday debt.
2. Online Personal Installment Loans for Bad Credit
Lenders like those in the SiLoans network consider applicants with credit scores well below the 580 threshold that most banks require. Unlike payday loans, installment loans are repaid in fixed monthly payments over 3–24 months, making budgeting easier and reducing the rollover risk.
The cost: APRs for bad credit installment loans typically range from 36% to 199%. On a $1,500 loan at 60% APR over 12 months, total repayment is approximately $1,950. This is expensive — but the structured repayment makes it far more manageable than a lump-sum payday product.
3. Secured Personal Loans
If you own assets — a savings account, a vehicle with equity, or other valuables — you can use them as collateral for a secured loan. The lender holds a lien on the asset during the loan term. Because the lender can recover the asset if you default, they accept lower credit scores and charge significantly lower rates than unsecured alternatives.
The risk: If you default, you lose the collateral. Only secure an asset you can afford to lose against a loan you are confident you can repay.
4. Car Title Loans — Approach with Caution
Car title loans use your vehicle title as collateral. They are easy to obtain — no credit check, same-day funding common — but carry severe risks. The average APR exceeds 300%, and the Consumer Financial Protection Bureau found that one in five title loan borrowers has their vehicle repossessed. Without a car, many borrowers lose their ability to work, deepening the financial crisis.
Car title loans should be considered only as an absolute last resort when no other option exists.
5. Payday Alternative Loans (PALs) from Credit Unions
Federal credit unions offer PALs specifically designed as a safer alternative to payday loans. The National Credit Union Administration caps PAL APRs at 28%, application fees at $20, and loan terms at 1–12 months. PALs require credit union membership, but membership is often easier to obtain than most people assume — many community credit unions have broad eligibility criteria.
If you are not already a credit union member, joining before an emergency arises is a worthwhile step.
6. Credit-Builder Loans
Credit-builder loans are not designed to give you immediate access to cash — they are designed to help you build a credit history. The lender holds the loan amount in a savings account while you make monthly payments. Once the loan is paid off, you receive the funds plus any interest earned. Every on-time payment is reported to the bureaus, gradually improving your score.
Self, Inc. and many community banks and credit unions offer these products for $25–$150 per month. They are the safest and cheapest way to build credit from scratch or repair a damaged score over 6–24 months.
Before You Apply for Any Loan
- Get your free credit report at AnnualCreditReport.com — errors on your report may be suppressing your score unnecessarily
- Check 211.org for local emergency assistance programs that may cover your need at no cost
- Ask your employer about a salary advance — many HR departments offer this interest-free
- If you proceed with a loan, compare at least two offers and read the full APR disclosure before signing
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