Can I Get a Personal Loan With a 500 Credit Score?

Yes, you can get a personal loan with a 500 credit score, but approval is harder, rates are typically higher and your lender options will be more limited. You may also qualify for a smaller loan amount than a borrower with stronger credit.

Many lenders reserve their best rates for borrowers with higher scores, so you should expect annual percentage rates (APRs) between roughly 20% and 36%. Here’s which lenders may consider a 500 credit score, how to improve your approval odds and what alternatives to explore if you’re denied.

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Key Takeaways

• You can get a personal loan with a 500 credit score, but your options are limited. Expect APRs between 20% and 36% and smaller loan amounts than borrowers with stronger credit.

• Traditional banks are unlikely to approve a personal loan for someone with a 500 credit score. Instead, focus on lenders that are known for working with borrowers who have lower credit scores.

• A co-signer, collateral or a credit union can lower your rate. Adding a creditworthy co-signer or choosing a secured loan reduces lender risk and may unlock a better offer.

• Prequalify with multiple lenders before you formally apply. A soft credit check lets you compare real APRs and terms without denting your credit score.

Summary generated by AI, verified by MoneyLion editors

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

What Loan Companies Work With a 500 Credit Score?

Some lenders consider more than your credit score when reviewing an application, including your income, employment history and existing debt. Approval may also depend on whether you have recent delinquencies, defaults or bankruptcies.

Here are some lenders that may offer personal loans to borrowers with bad or low credit scores.

Will Traditional Banks Approve Personal Loans With a 500 Credit Score?

Traditional banks, such as Chase and Wells Fargo, are unlikely to approve a personal loan with bad or lower credit score. Many banks have stricter credit requirements and may view the risk of missed payments as too high.

You may have better luck with online lenders, credit unions or lenders offering secured loans.

Can I Get a Personal Loan With a 500 Credit Score and a Co-Signer?

If your credit score is poor, having a co-signer might help you get approved depending on the lender. However, the co-signer must have good credit and understand that they will be responsible for making the payments on the loan if you cannot.

How To Apply for a Personal Loan With a 500 Credit Score

Applying strategically can help you avoid unnecessary hard inquiries and improve your chances of approval. Follow these steps before accepting an offer.

1. Gather your documents: You'll need a copy of your government-issued ID, two recent pay stubs and your tax returns.

2. Target lenders that work with lower credit scores: Spend a few minutes looking for lenders that work with borrowers who have a credit score lower than 600. Some popular options include Upstart, Upgrade and OneMain Financial.

3. Prequalify with two to three lenders: By using a soft credit check, you can see your potential APR without hurting your credit. This check should only take a few minutes.

4. Compare the full cost: Make sure you check APRs, loan terms and origination fees. Don't just go with the first lender that approves your application.

5. Submit your application: You'll link your bank account and best offer in a portal so that your income can be pulled. This should take about 15 minutes.

6. Review the agreement: Make sure to review the terms carefully. Look at the funding category specifically. This will tell you how quickly you'll get your funds.

7. Choose your repayment term: You should choose the shortest affordable term and set up autopay if that helps you stay on track.

Are You Ready To Apply?

Before applying, make sure you meet the lender’s basic requirements and can comfortably manage the payment.

• Do you have a steady income?

• Do you have a government-issued ID?

• Do you have an active bank account?

• Have you missed any current payments?

• Have you filed bankruptcy recently?

What Are Your Other Options If You Can't Qualify?

If you don't qualify for a traditional personal loan, these options may be easier to access — but they differ in cost, risk and flexibility.

Final Thoughts

• A 500 credit score doesn't prevent you from getting a personal loan, but it limits your choices.

• Compare several lenders through prequalification before applying.

• If you're uncomfortable with a personal loan, other safer options exist like a secured loan or credit cards.

FAQs

Can I get approved for a personal loan with a 500 credit score and no co-signer?

Yes, it's possible, but approval will depend on the lender's requirements, your income and your overall financial profile. Having a co-signer or collateral may improve your chances.

Will applying for a personal loan hurt my credit score?

Prequalifying with a soft credit check won't affect your credit score. However, submitting a formal application usually results in a hard inquiry that may temporarily lower your score by a few points.

How much can I borrow with a 500 credit score?

Loan amounts vary by lender, but borrowers with a 500 credit score often qualify for smaller loan amounts than those with stronger credit. Your income, existing debt and repayment ability also affect how much you can borrow.

What APR can I expect with a 500 credit score?

Borrowers with a 500 credit score may receive APRs near the higher end of a lender’s range, often around 20% to 36%. Your actual rate will also depend on your income, debt, loan amount, repayment term and whether the loan is secured.

Are secured loans easier to get with a 500 credit score?

A secured loan may be easier to qualify for because collateral reduces the lender’s risk. However, the lender can take the pledged asset if you fail to repay the loan, so only use collateral you can afford to lose.

Key Terms

• APR: The yearly cost of borrowing, including interest and certain fees, which lets you compare loan offers more accurately than the interest rate alone.

• Credit score: A number based on your credit history, ranging from 300 to 850, that helps lenders gauge how likely you are to repay on time.

• Soft credit check: A credit review that doesn't affect your score, commonly used when you prequalify to preview your potential rate.

• Hard inquiry: A credit check triggered by a formal application that can temporarily lower your score by a few points.

• Secured loan: A loan backed by collateral such as a car or savings, which lowers lender risk and may come with a lower rate. Missing payments can mean losing the asset.

• Co-signer: Someone with stronger credit who agrees to repay your loan if you can't, which can improve your approval odds. They're fully responsible for the debt.

• Payday loan: A short-term, high-cost loan, usually for $500 or less, due on your next payday, with APRs that often approach 400%.

Summary generated by AI, verified by MoneyLion editors

Sources

• Consumer Financial Protection Bureau. 2024. "What is the difference between a loan interest rate and the APR?"

• Consumer Financial Protection Bureau. 2023. "What is a credit score?"

• Consumer Financial Protection Bureau. "Differentiating between secured and unsecured loans."

• Consumer Financial Protection Bureau. 2024. "What is a payday loan?"

Cynthia Measom contributed to the reporting for this article.

Photo Credit: shapecharge / iStock/Getty Images

Data is accurate as of July 28, 2026, and is subject to change.