In 2026, a "bad" credit score (typically below 580-600) doesn't mean your options are zero. While the "big banks" might say no, a new wave of fintech lenders and credit unions now use "alternative data"—like your education and utility payment history—to say yes.
Getting a loan with bad credit is about strategy: you aren't looking for the lowest rate in the country; you’re looking for the lender that sees you as more than a three-digit number.
Top Bad Credit Lenders Comparison (2026)
| Lender | Min. Credit Score | Est. APR Range | Best For |
|---|---|---|---|
| Upstart | None (300+) | 6.50% - 35.99% | Thin credit/Students |
| Upgrade | 580 | 7.74% - 35.99% | Co-signed loans |
| OneMain Financial | None | 18.00% - 35.99% | Secured loans (using a car) |
| LendingPoint | 600 | 7.99% - 35.99% | Fast, near-prime funding |
| OppLoans | None | 59% - 160% | Emergency (Last Resort) |
3 Ways to Get Approved with Bad Credit
1. Apply with a Co-signer
Lenders like Upgrade and LendingClub allow you to add a co-signer with better credit. This reduces the lender's risk, often leading to instant approval and a lower interest rate.
- Note: Your co-signer is 100% responsible if you miss a payment.
2. Use Collateral (Secured Loans)
If you own a car (paid off) or have a savings account, you can use it as collateral. OneMain Financial specializes in this. Because the loan is backed by an asset, they are much more likely to approve a score in the 500s.
3. Look for "Alternative Data" Lenders
Upstart is the leader here. Instead of just looking at your FICO score, they use AI to look at your work history, degree, and even your GPA. This is a game-changer for people who have a low score due to medical bills but have a high-paying job.
Eligibility Criteria for 2026
Even with bad credit, you must meet these "hard" requirements:
- Verifiable Income: Most lenders require at least $20,000 - $30,000 in annual income.
- Bank Account: You must have an active checking account for the funds to be deposited.
- DTI Ratio: Your "Debt-to-Income" ratio should ideally be under 45%.
- U.S. Residency: Must be a citizen or permanent resident (visa holders may qualify with Upstart).
Tips to Improve Your Approval Odds
- Check for Errors: Pull your report from AnnualCreditReport.com. One "missed payment" error could be dragging your score down by 50 points.
- Prequalify First: Only apply to lenders that offer a "soft credit check." This lets you see your odds without lowering your score further.
- Request a Smaller Amount: Don't ask for $20,000 if you only need $2,000. Smaller loans are much easier for "bad credit" departments to approve.
