Bad credit doesn't mean you're stuck with predatory lenders. We compare the best personal loans and credit-building tools for fair-to-poor credit, including secured cards from Chime, OpenSky, and Discover — plus guidance on unsecured loans, credit unions, and what to watch for.
If your credit score is below 670, getting a personal loan can feel like a dead end. Traditional banks often say no, and the lenders who say yes may charge APRs north of 30% — or worse, hide fees in the fine print.
The good news: there are legitimate options designed specifically for bad-credit borrowers. Some don't even check your credit. Others help you build credit while you borrow. The key is knowing which ones are worth your time and which ones to skip.
Here's what we found after digging through the current landscape.
Lenders generally bucket scores like this:
| FICO Range | Category |
|---|---|
| 300–579 | Poor |
| 580–669 | Fair |
| 670–739 | Good |
| 740+ | Excellent |
Most "bad credit" loans target scores under 630, but some products — especially secured cards and credit-builder loans — accept scores in the 500s or have no minimum at all.
Unsecured loans don't require collateral. The lender decides based on your credit history and income. These are harder to get with bad credit, and rates tend to be higher.
Secured loans (and secured credit cards) require a refundable deposit or collateral. That deposit reduces the lender's risk, which means they're much more willing to approve applicants with thin or damaged credit.1
Credit-builder loans are a third category: the lender holds the loan amount in a savings account while you make payments. Once you've paid it off, you get the money. Your on-time payments get reported to the credit bureaus.
If you have a family member or friend with good credit, adding them as a co-signer can unlock better rates on unsecured loans. Just be aware: missed payments hurt both of your scores.1
Avoid any lender that:
Credit unions are a hidden gem here: they typically offer rates about 2–3% lower than traditional banks for bad-credit borrowers.2
We focused on products that are accessible, transparent, and actually help your credit over time.
Upstart uses AI to evaluate applicants beyond just credit scores — they consider education, job history, and other factors. Minimum credit score is around 600, and APRs range from about 7% to 36%. Good option if you have limited credit history but steady income.
Upgrade offers personal loans from $1,000 to $50,000 with fixed rates. They also provide free credit monitoring and a credit-builder card. Minimum score is around 580. Their transparency on APR ranges and fees is better than most competitors.
No credit check, no interest, no annual fee. The Chime Credit Builder Secured Visa works like a debit card that reports to all three credit bureaus. You load money onto it, spend what you have, and Chime reports your activity as on-time payments.1
| Feature | Chime Credit Builder |
|---|---|
| Credit check | None |
| Annual fee | $0 |
| APR | 0% (secured) |
| Reports to bureaus | All 3 |
| Deposit required | Yes (no minimum) |
OpenSky requires no credit check at all — not even a soft pull. You put down a refundable deposit of $200 to $3,000, and that becomes your credit limit. They report to all three bureaus. It's one of the few cards available if you've had a recent bankruptcy or charge-off.2
| Feature | OpenSky Secured Visa |
|---|---|
| Credit check | None |
| Annual fee | $35 |
| APR | 25.64% (variable) |
| Reports to bureaus | All 3 |
| Deposit required | $200–$3,000 |
Discover's secured card automatically reviews your account starting at month 7 to see if you qualify for an unsecured upgrade. If approved, you get your deposit back and keep the card. Cashback rewards (1–2%) are rare for secured cards. No annual fee.1
| Feature | Discover it Secured |
|---|---|
| Credit check | Yes (soft pre-approval) |
| Annual fee | $0 |
| APR | 28.24% (variable) |
| Reports to bureaus | All 3 |
| Deposit required | $200–$2,500 |
We evaluated products based on:
If you have bad credit, your best move is to start with a secured or credit-builder product that reports to all three credit bureaus. Use it responsibly for 6–12 months, and you'll likely see your score improve enough to qualify for unsecured loans with better rates.
Avoid any lender that promises approval without checking your ability to repay. And if you can, join a credit union — they're consistently the friendliest option for borrowers with less-than-perfect credit.2
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