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

You can get a personal loan with a 500 credit score, but your options will be limited and borrowing will likely cost more. Many lenders reserve their best rates for borrowers with stronger credit, so you should expect annual percentage rates (APRs) between roughly 20% and 36%, along with lower borrowing limits.

Here's which lenders may approve you with a 500 credit score, how to improve your chances of qualifying and what alternatives to consider if you're denied.

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.

• Prep your paperwork and set a ceiling before you sign. Gather your ID, pay stubs and latest tax return, decide your maximum APR and pick the shortest affordable term.

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?

Your options for personal loans with bad credit are extremely limited when you have a 500 credit score. Some lenders will take into account other factors when considering your application, like your income or education level.

Even so, the lender has minimum credit requirements applicants must meet. For example, you can't have any currently delinquent accounts or bankruptcies that occurred within the last 12 months.

Curious about which companies may work with a 500 credit score? Here's a look at some lenders to consider.

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

Traditional banks, such as Chase and Wells Fargo, generally don't approve personal loans for borrowers with a 500 credit score because they consider the risk of default too high.

Borrowers with lower credit scores usually have better luck with online lenders, secured loans or credit unions.

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

You have to use a strategy to apply for a personal loan with a 500 credit score. You’re unlikely to be approved by traditional banks, so you’re likely targeting lenders that have a lower bar for a credit score. Use these steps to guide your process.

1. Gather your documents: You'll need a copy of your government-issued ID, two recent pay stubs and your tax returns. This should take 30 minutes depending on the accessibility of your documents.

2. Focus on lenders that work with your credit score: Look for lenders that publicize that they work with borrowers who have a credit score lower than 600. Some popular options include Upstart, Upgrade and OneMain Financial. This shouldn't take too much time.

3. Prequalify with two to three lenders using a soft credit check: You can see your potential APR without hurting your credit. This should take two to five minutes.

4. Compare the lenders and your options: 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 and sign your 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.

Eligibility and Readiness Checklist

How do you know if you're eligible or ready for a personal loan? Look over this checklist to determine your readiness level.

1. Do you have a steady income?

2. Do you have a government-issued ID?

3. Do you have an active bank account?

4. Have you missed any current payments?

5. 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.

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 June 29, 2026, and is subject to change.