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Best 500 Credit Score Loan Options in 2025
The minimum credit score requirement set by traditional loan lenders usually ranges between 560 and 670. Thus, it may be challenging to qualify for a personal loan with a 500 credit score as it falls into the bad credit score category.
BadCredify found reliable loan providers who may approve borrowers with a poor credit score. We also covered alternative loan options with a higher chance of approval, such as secured loans and loans requiring a co-signer.
Here are the best 500 credit score loan options to borrow money online.
The Best 500 Credit Score Loan Options (Offers for Bad Credit)
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Origination fees up to 12%
- $15 late fee
- $15 NSF fee
- Quick access to loan funds
- No prepayment penalties
- Flexible monthly payments
- Soft credit check when prequalifying
- Flexible loan amounts
- Origination fees up to 12%
- High maximum annual percentage rate
- Co-signers aren’t allowed
- Hard credit checks for final approval
- Limited repayment loan terms
One business day (same-day funding available)
Poor credit borrowers who can’t qualify for traditional personal loans
Upstart is a financial platform that enables borrowers with low credit to get personal loans with flexible payback options. Its key advantage is same-day funding.
Upstart does not do hard credit checks when you prequalify. In addition, customers can apply in the morning and receive their personal loan by the end of the day.
- Quick funding (same-day deposit available)
- Available to borrowers with poor credit
- Soft credit checks when viewing your rate
- At least 18 years also
- Permanent US resident
- Income confirmation
- Valid bank account or debit card.
- Origination fees: 1% to 10%, or $25 to $500, depending on the state
- Late payment fees: $5 to $30, or 1.5% to 15% of your loan amount
- Non-sufficient funds fees: $10 to $50 per payment returned
- Joint and secured loans are available
- Wide range of loan options for low credit
- Pre-qualifying doesn’t affect your credit score
- Convenient options for debt consolidation
- Relatively high interest rates
- Charges origination fees
- APRs are not disclosed when pre-qualify
- Not available in all states
Within one business day of approval via a direct deposit. Funding within several hours may be offered if you receive the funds on your debit card.
Borrowers with credit issues who want to avoid predatory lenders.
OneMain Financial is a reliable financial service that offers personal loans between $1,500 and $20,000 without minimum credit score requirements. With its joint applications, flexible repayment terms, and soft credit checks for pre-qualifying, it can suit borrowers with bad credit. Interest rates are usually high, though.
The company offers a wide range of secured, unsecured, and joint loan options with flexible repayment terms. Its personal loans are available to underbanked borrowers.
- Direct payment to creditors for debt consolidation
- Loan cancellation within 7 days
- Fast funding
- Be a U.S. citizen, a permanent resident, or living in the U.S. on a valid visa
- Be at least 18 years old (19 in Alabama and some other states)
- Give a working email address
- Provide valid bank account details
- Confirm a sufficient monthly income to cover your loan payments
- Origination fees: 1.85% to 9.99%
- Late payment fees: $10
- Non-sufficient funds fees: $10 per payment returned
- No prepayment penalties
- Multiple rate discounts
- Next-day funding
- The due date may be changed
- Direct payments for debt consolidation
- APRs may be high
- Origination fees are charged
- Late fees may be applied
As soon as one business day after clearing verification
Fair-credit borrowers who need the money quickly
Upgrade is an online financial service that offers up to $50,000 loans to borrowers with good to fair credit. It provides several interest rate reductions and allows you to add a co-applicant or collateral to your application. Choose it if you need money quickly and are not concerned about relatively high interest rates.
Upgrade offers convenient maximum and minimum loan amounts along with flexible repayment terms. It also accepts fair credit borrowers and provides several interest rate discounts.
- Rate discounts for auto pay, direct payment, and reward checking
- Allows to add a co-applicant
- Mobile app for managing your loan
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Live in states the company operates in
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- No fees for loan processing, late payments or prepayment
- Quick access to loan funds
- No prepayment penalties
- No origination and late fees
- Flexible monthly payments
- Reports on-time payments to credit bureaus
- Borrowers with any credit can qualify
- High interest rates
- Small loans amounts
- Hard credit checks are performed
- Not available in all states
One business day (same-day funding not available).
Poor credit borrowers who can’t qualify for traditional personal loans
Rise gives a credit boost to borrowers with low ratings by reporting payments to two major credit bureaus. Fast funding and lenient requirements are overshadowed by high rates.
Rise does not conduct traditional credit checks on its clients. Instead, it looks at applicants’ overall financial situation. Customers can also apply in the morning and obtain their personal loan before the end of the day.
- Quick funding
- No origination fees
- Soft credit checks performed
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information and social security number
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Optional fees (up to 6%)
- Low interest rates
- Co-applicants are allowed
- No prepayment penalties
- Flexible loan amounts
- Interest rate discounts are available
- Multiple repayment options
- No origination fee
- Good credit is required for better loan terms
- Hard credit check if you continue your application
- Late fees might apply
- No co-signer option available
- No physical branches
One to three business days
Applicants with good to excellent credit scores who want to consolidate debt, make major purchases, or cover their long-term needs.
SoFi is a financial website that provides unsecured personal loans. The company doesn’t specify its minimum credit score requirements, but most of its borrowers have credit ratings of 680 and higher. Loans from SoFi are also accessible with a co-borrower with good to outstanding credit. Personal loan candidates need to have a sufficient income and a low debt-to-income ratio.
SoFi does not do credit checks on its customers when they prequalify for a loan. Instead, it examines applicants’ whole financial situation. The company offers reasonable interest rates and flexible repayment terms to qualified borrowers.
- No prepayment penalties
- No origination fees
- Low interest rates
- APR discounts
- Co-applicant option available
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Origination fees, prepayment penalties, or other fees may be applicable
- Prequalification for multiple personal loans on one platforms
- Low minimum interest rates
- Fast funding (same-day direct deposit may be available)
- High maximum interest rates
- Extra fees may be applied
- The company’s partners may perform a hard credit check
- Data privacy concerns
One business day (same-day funding available)
Borrowers with bad credit scores who want to consolidate debt or cover other significant expenses.
LendingTree serves as a handy platform for seeking personal loans. It allows borrowers to explore a variety of loan offers in one place. Many lenders that partner with LendingTree can provide loans swiftly. However, borrowers with bad credit scores typically get high interest rates.
LendingTree has accreditation from the Better Business Bureau, a non-profit group dedicated to customer safety and trust. The BBB rates LendingTree as A+, a symbol of excellence. The BBB’s decisions are based on how a company reacts to customer gripes, truth in marketing, and openness about company procedures.
- The ability to compare multiple loan offers in one place
- Loan funds in one business day
- Be a U.S. permanent resident
- Live in a qualifying area
- Be at least 18 years old
- Have a valid email address
- Have a valid personal checking account
- Provide income confirmation
- Origination fees: 1% to 5%, depending on your state
- Cash advance fees: 10%
- Late payment fees: vary by state
- Non-sufficient funds fees: None
- Next-day funding
- No application fees or prepayment penalties
- Bad credit is accepted
- Flexible repayment terms
- Convenient minimum loan amounts
- Very high APRs
- Low loan maximums
- Origination and late payments fees may be charged
- Not available in all states
Next business day
Borrowers with bad credit in need of fast cash
NetCredit helps bad credit borrowers qualify for personal loans and credit cards. Despite fast approval and funding, APRs and fees are high. Additionally, NetCredit is unavailable in 14 states.
NetCredit offers cheaper alternatives to regular personal loans and provides bad credit individuals with more flexibility. Additionally, it has fast funding times and allows borrowers to improve their credit.
- The ability to change the due date;
- Refinancing with the same lender in some states;
- Credit-building opportunities.
Tips to Compare Bad Credit Loans for a 500 Credit Score
BadCredify selected the best loans for a 500 credit score, but choosing the lender is up to you. We suggest you pay attention to the following details when you compare bad credit loans:
- Lender’s Trustworthiness. Check out customer reviews before you deal with a potential loan provider. Choose a reliable website with real-customer experiences, such as TrustPilot or Yelp.
- Eligibility Criteria. Check all the requirements before you choose a lender. Qualification criteria may vary depending on the lender and your state laws.
- APRs. You should look for the lowest possible APR and fees to reduce overpayment over the loan life.
- Repayment Terms. Check a convenient repayment schedule with affordable monthly payments that suit your budget.
- Customer Support. Make sure the loan provider has professional online support. You never know what difficulties you might face, and it’s crucial to get a quick answer in such cases.
Is 500 a Good Credit Score?
A 500 credit score belongs to the poor credit category. It is also called a “bad credit score”. Poor credit scores range between 300 and 579 on the FICO Credit Score scale. Here’s how credit ratings generally span:
Low credit scores indicate potential problems with repayment that most traditional lenders want to avoid. On the contrary, good credit shows that a borrower is reliable and makes their loan and bill payments on schedule.
A low credit score often results in higher interest rates and unfavorable loan terms. You may be asked to provide collateral or receive a shorter repayment period.
What Loans Can I Get with a 500 Credit Score?
Getting a loan is harder when you have a poor FICO rating, but it’s still possible. Here are some options for a 500 credit score.
Secured Personal Loans
Secured personal loans require you to provide something valuable as a means of security. They are significantly easier to get for bad credit borrowers as your pledged asset offsets the lender’s risks. In case of default, they have a right to repossess and sell the provided collateral.
Credit-Builder Loans
A credit-builder loan gives you an opportunity to establish or enhance your credit history. The main difference here is the monthly payments that must be made upfront without receiving the loan amount on hand. All these payments are deposited into a savings account, and you will receive the money after the repayment period ends. Each monthly payment you make is reported to major credit bureaus, improving your credit score.
Installment Loans
An installment loan is a subtype of a traditional personal loan with some differences. It has a lower loan amount and is available to individuals with bad credit scores. The repayment period is also shorter — installment loans usually usually need to be repaid in up to 3 years. It is a good option that allows you to manage your debt in equal monthly payments, even though the interest rate will be higher compared to regular personal loans.
Payday Loans
Payday loans are options that are due by your next paycheck. They typically have extremely high-interest rates. Payday loans must be repaid in one lump sum within 31 days maximum. Most payday lenders don’t conduct hard credit report checks. They are quick and easy to get, but we strongly recommend you to use them as a last resort option. The APRs on payday loans may exceed 420%.
Credit Cards
There are credit cards available to borrowers with a 500 credit score, but your options will be limited. Some bad credit cards may also require a security deposit. They also have low credit limits and often come with higher interest rates.
Auto Loans
Individuals with a 500 credit score may opt for auto loans if they can make a down payment of at least 20% of the car’s price. Auto loans are secured ones — that means that a loan lender will use a car you buy as collateral. If you default on your loan, a lender will repossess your car and your down payment won’t be refunded.
Credit Union Loans
Credit unions are non-profit organizations that often have lower-than-usual interest rates and more lenient eligibility criteria. CUs tend to provide personal loans for bad credit borrowers as well. However, you must have a membership in order to get one. We advise you to do some research and find a union in your hood to get more details.
Mortgages
Traditional mortgages require a good or a very good credit score to be eligible. You may search for government-supported programs which include USDA loans, FHA loans and VA loans. They typically come with reasonable interest rates and more relaxed terms, including lower down payments.
Online Loans
There are a lot of online lenders who provide alternative loans for individuals with a bad credit score. They are easy to get and offer fast funding but are usually expensive. Most online loans are unsecured, which forces lenders to mitigate their risks by increasing the price.
Loans for a Credit Score of 500 — Rates and Terms
Many factors could affect your loan terms: your income, debt-to-income ratio, the state in which you reside, and overall financial behavior. Each lender sets its own rates and conditions, so loans for a credit score of 500 are not created equally. Some common details may include:
- ARPs: up to 35.99% for regular loans. Some options can have an annual percentage rate of over 420%;
- Repayment periods: from several weeks to 60 months;
- Loan amounts: from $100 to $50,000 (maybe even higher for mortgages);
- Fees: origination fees typically range from 1% to 10%. Late fees and prepayment penalties may apply.
Your interest rate and loan terms are highly determined by your credit rating. The higher your FICO score, the better loan terms you can get. Here are some APR estimates for each credit score range:
| Credit Score | Average APR |
|---|---|
| Excellent (820-850) | 10.73%-12.5% |
| Good (690-719) | 13.5%-15.5% |
| Fair (630-689) | 17.8%-19.9% |
| Poor (300-629) | 28.5%-32.0% |
The examples are for informational purposes only. Your particular loan terms may differ from those provided above. Use our loan calculator to find out how your loan cost and monthly payments will vary based on the average APRs.
Loan calculator
ESTIMATED MONTHLY PAYMENT
TOTAL LOAN AMOUNT PAID
TOTAL INTEREST PAID
TOTAL COST OF LOAN
How to Get a Personal Loan with a 500 Credit Score
Each lender requires you to follow their own unique algorithm for obtaining a personal loan. Commonly, the process includes the following steps:
- Shop around. Look at several different options and choose loan providers with suitable eligibility requirements and loan terms.
- Complete pre-qualification. You can do this online in a matter of minutes without any impact on your credit score. Simply provide some basic personal and financial information.
- Examine potential loan terms. Pay attention to APRs, repayment terms, and fees, monthly payments, and other details to choose the best offer.
- Complete the loan application. This usually involves providing supporting documents. Some lenders may allow an online process, while others will ask you to visit a store. At this step, a lender may conduct a hard credit check.
- Accept the loan offer. If approved, you need to review the loan terms and sign a loan agreement to receive the funds.
- Get your money. Lenders typically transfer funds via direct deposit into your active checking account. The process can take from one business day to several weeks.
Eligibility Requirements for a 500 Credit Score Loan
Most online lenders from our top work with bad credit borrowers and set lenient requirements for getting 500 credit score loans. These are the most common ones:
While the things mentioned above are usually enough, some loan lenders may also look at your debt-to-income ratio and have various credit score requirements depending on the loan product you wish to qualify for.
Ways to Improve Your Credit Score
Your credit score matters not only for lenders but for you as well. A higher credit score allows you to get more loan offers from different lenders with drastically better rates and terms. We advise you to improve your credit score before applying — you’ll potentially save a good amount of money. Here’s what you can do:
- Maintain a healthy debt-to-income ratio. Don’t rely on loans too much as your debts directly affect your credit score. Lenders want your debt payments to be less than 43% of your income. Ideally, aim for 36% or less. This shows them you can handle your current debts and afford a new loan.
- Lower your credit utilization rate. Paying off high-cost credit card balances may boost your credit within one month.
- Start building your credit history. There are special types of loans that are designed mainly for individuals with bad or no credit history — credit-builder loans. Alternatively, you may issue a secured credit card. Its responsible usage will help you create your first records in credit reports or increase your current score.
- Don’t miss your loan due dates. Paying your debts on time is the most reliable way to maintain a good credit score.
- Avoid closing CC accounts. Terminating your credit card account may affect your credit mix and length of credit.
Alternatives to 500 Credit Score Loans
Haven’t found what you’re looking for among the options provided? You can try to get cash in other ways:
- Borrow money from friends and family. Family loans come with no interest and offer flexible terms tailored to your unique situation. Just make sure you can pay back what you borrowed on time.
- Cash Advance Mobile Applications. You can easily get up to $500 against your future paycheck from fintech apps, often with no interest and fees charged.
- Pawn Shop Loans. Pawn brokers require something valuable from you to provide you with cash. You only get a small fraction of the value of the pledged item. If you fail to repay, the pawnbroker may legally repossess your item.
- P2P Lending Services. Peer-to-peer lending platforms provide a space for borrowers to connect directly with individual investors, bypassing traditional financial institutions. This alternative lending method often offers lower interest rates and greater flexibility in loan terms compared to other options available for individuals with lower credit scores.
Why Choose BadCredify
BadCredify is a loan comparison platform that makes a borrowing process fast and simple. We’re here to help you prequalify for a 500 credit score loan from several loan providers, compare their terms using our smart tools and algorithms, and choose the most favorable option for your situation. We pay special attention to interest rates, fees, repayment terms, safety, convenience, funding times, and eligibility criteria. After analyzing the results, we select the lender that can meet our high standards for your smooth borrowing experience.
FAQs
Is 500 a good credit score?
A 500 credit score is considered a bad credit score — it shows that you’ve made some financial mistakes in the past or you have a lack of credit history.
Why does my credit score matter so much?
Lenders evaluate your financial responsibility using your FICO rating. People with extremely low credit scores tend to default on their debts, that’s why it’s harder for them to get loan approval.
What can I get with a 500 credit score?
Borrowers with a 500 credit score may get credit union loans, secured personal loans, auto loans, get a secured credit card, or turn to alternative loan lenders. They provide online loans for bad credit, like payday loans and installment loans.
What amount can I borrow with a 500 credit score?
It depends on your income, state, the lender, and the type of loan you qualify for. Borrowers with a 500 credit score may usually get from $100 to $5,000 with unsecured loans. Secured loans may allow you to get up to $100,000 or even more, provided that your income is high enough.
Is it possible to apply for a personal Loan with a 500 credit score online?
Many traditional loan lenders allow you to get cash online only if you have a good credit score. Alternative lenders from our top allow you to submit your loan application online with bad credit.
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