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By
Jerry Brown
Jerry Brown
Personal Loans & Debt Consolidation Expert
Jerry is a freelance contributor to Newsweek’s personal finance team. He primarily covers loans, including personal loans, home equity loans and student loans. When he isn’t writing, he enjoys spending time with family, riding an electric bike or scooter through the French Quarter in New Orleans and traveling.
Read Jerry Brown's full bio
Reviewed By
Claire Dickey
Claire Dickey
Senior Editor
Claire is a senior editor at Newsweek focused on credit cards, loans and banking. Her top priority is providing unbiased, in-depth personal finance content to ensure readers are well-equipped with knowledge when making financial decisions.
Prior to Newsweek, Claire spent five years at Bankrate as a lead credit cards editor. You can find her jogging through Austin, TX, or playing tourist in her free time.
Read Claire Dickey's full bio
Many financial institutions offer personal loans to applicants with credit scores of 600 or lower. Though these loans come with higher rates, the advantage is fast funding. Once approved, some lenders can deposit funds into your account the next day.
Before you choose an option, compare rates, fees and terms to get the best deal for your financial circ*mstances. Below are some of our top picks for lenders with flexible credit requirements. We also discuss alternatives.
Our Methodology
Newsweek Vault’s loan experts evaluated multiple data points to help our readers make sense of their borrowing options across student loans and personal loans. To narrow down the best available offers, we weigh the product pros and cons across five core categories, including:
- Application process
- Eligibility requirements
- Interest rates
- Loan amounts (minimum and maximum)
- Repayment flexibility”
Our Picks
- Best for Flexible Repayment Terms: Avant
- Best for Secured Loans: Best Egg
- Best for Minimal Credit History: Upstart
- Best for Fast Funding: Upgrade
- Best for Consolidating Credit Card Debt: Happy Money
- Best for Few Usage Restrictions: LendingPoint
- Best for Applying With a Co-Borrower: LendingClub
Where To Get a Personal Loan With a 600 Credit Score in 2024
Best for Flexible Repayment Terms
Avant
on Credible’s website
Loan Amount
$2,000 to $35,000
Minimum Credit Score
580
Repayment Schedule
12 to 60 months
APR
9.95% to 35.99%
Why We Chose It
Avant offers personal loans with a broad range of repayment terms. It might be a wonderful option if you need to borrow up to $35,000 and need funds as soon as the next day.
Pros
- Flexible repayment terms
- Fast funding
- Low minimum credit score requirement
Cons
- Late fee
- Administrative fee of up to 9.99%
- Not available in all states
Additional Information
- Fees: Administration fee up to 9.99% of loan amount; $25 late fee
- Funding Speed: As early as the next business day
- Loan Availability: Available in all states except for Hawaii, Iowa, Maine and Vermont
Best for Secured Loans
Best Egg
on Credible’s website
Loan Amount
$2,000 to $50,000
Minimum Credit Score
560
Repayment Schedule
36 to 60 months
APR
8.99% to 35.99%
Why We Chose It
Best Egg offers unsecured and secured personal loans. You could opt for a loan secured by your home’s fixtures to get a lower APR.
Pros
- Option to prequalify
- Competitive starting rates
- Free credit score monitoring
Cons
- Origination fees
- Not available in all states
- Maximum rate of 35.99%
Additional Information
- Fees: Origination fees range from 0.99% to 8.99% of loan amount
- Funding Speed: 1 to 3 business days
- Loan Availability: Not available in Iowa, Vermont, West Virginia, the District of Columbia or U.S. territories like Puerto Rico
Best for Minimal Credit History
Upstart
on Credible’s website
Loan Amount
$1,000 to $50,000
Minimum Credit Score
300
Repayment Schedule
3 or 5 years
APR
7.80% to 35.99%
Why We Chose It
Upstart offers personal loans that are accessible to applicants with thin credit profiles. The starting rate is one of the lowest on our list.
Pros
- Wide range of loan amounts
- Low minimum credit score requirement
- Competitive starting rate
Cons
- Origination fee up to 12% of loan amount
- Late fees
- Minimum loan amount in Massachusetts is $7,000
Additional Information
- Fees: Origination fee up to 12% of loan amount; $15 late fee
- Funding Speed: As soon as the next business day
- Loan Availability: Available in all states
Best for Fast Funding
Upgrade
on Credible’s website
Loan Amount
$1,000 to $50,000
Minimum Credit Score
560
Repayment Schedule
24 to 84 months
APR
8.49% to 35.99%
Why We Chose It
Upgrade’s personal loans are available in all states and the District of Columbia. Once approved, you can receive funds as early as the next business day.
Pros
- Quick funding
- Flexible repayment terms
- Option to apply with co-borrower
Cons
- Late fees
- High maximum rate
- Origination fees
Additional Information
- Fees: Origination fees on all loans range from 1.85% to 9.99%
- Funding Speed: As soon as the next business day
- Loan Availability: Available in all states and the District of Columbia
Best for Poor Consolidating Credit Card Debt
Happy Money
on Credible’s website
Loan Amount
$5,000 to $40,000
Minimum Credit Score
640
Repayment Schedule
24 to 60 months
APR
11.72% to 17.99%
Why We Chose It
Happy Money offers personal loans up to $40,000 through its partner lenders primarily designed to pay down credit card debt. You can choose to have funds directly sent to your creditors to streamline the consolidation process.
Pros
- Option to prequalify
- No late or returned check fees
- Low maximum APR compared to some competitors
Cons
- High starting APR
- Origination fees
- Slower funding speed than some other lenders
Additional Information
- Fees: Origination fees
- Funding Speed: 3 to 6 days
- Loan Availability: Available in all states except Massachusetts and Nevada
Best for Few Usage Restrictions
LendingPoint
on Credible’s website
Loan Amount
$2,000 to $36,500
Minimum Credit Score
600
Repayment Schedule
24 to 72 months
APR
7.99% to 35.99%
Why We Chose It
LendingPoint might be an excellent choice if you have an annual income of at least 35,000. While some lenders might restrict you from using funds for a certain purpose like business, LendingPoint allows you to use funds for any legal reason.
Pros
- Option to prequalify
- Credit score monitoring
- Quick funding
Cons
- Must earn at least $35,000 per year
- Joint loans not available
- Not available in all states
Additional Information
- Fees: Origination fees up to 10% of loan amount
- Funding Speed: As early as the next business day
- Loan Availability: All states except for Nevada and West Virginia
Best for Applying With a Co-Borrower
LendingClub
on Credible’s website
Loan Amount
$1,000 to $40,000
Minimum Credit Score
600
Repayment Schedule
24 to 60 months
APR
8.98% to 35.99%
Why We Chose It
LendingClub allows you to apply with a co-borrower—adding one could help you secure a lower rate or higher loan amount. Plus, you can prequalify for a loan with LendingClub online without hurting your credit.
Pros
- Joint loans available
- Option to send funds directly to your creditors
- Check rate without lowering credit score
Cons
- Late fees
- High maximum rate
- Origination fees
Additional Information
- Fees: Origination fees range from 3% to 8% of loan amount; Late fee of 5% of outstanding balance or $15, whichever is higher
- Funding Speed: 1 to 3 business days
- Loan Availability: All states and the District of Columbia
How To Apply for a Personal Loan With a 600 Credit Score
Many financial institutions, including banks and credit unions, allow you to apply online. You could also choose to apply in person if a lender has a physical location in your area. Below are the general steps to get a personal loan.
- Prequalify. Prequalify online with as many lenders as possible to compare rates, terms and fees. Doing so allows you to check for potential offers without harming your credit.
- Select a lender and apply. After you’ve narrowed down your options, choose the least expensive loan and submit a loan application. Documentation requirements vary, but you’ll likely need to provide recent pay stubs, W-2s and bank statements.
- Review loan agreement. If approved, the company will send you a loan agreement to review. Make sure you agree with all of the terms before placing your John Hanco*ck on the dotted line.
- Repay the loan. Pay back the loan on time to avoid late fees and damage to your credit profile. To ensure you make on-time payments, enroll in autopay. Just remember to keep enough money in your checking account to cover the payment so you can avoid overdraft fees.
How To Raise Your Credit Score
If you don’t need funds immediately, increasing your credit score before applying could help you secure more favorable rates. Below are some actions you could take to achieve better credit.
- Review your credit reports. Credit reporting errors can drag down your score. To catch potential mistakes, review your reports from the three main credit bureaus—Equifax. Experian and TransUnion—by visiting AnnualCreditReport.com. If you discover any errors, dispute them with the respective credit agency.
- Pay all of your bills on time. Your payment history represents the biggest portion of your credit score. Make sure to pay all of your bills, including credit cards and loans, on time to avoid harming your credit.
- Lower your credit utilization ratio. Paying down revolving accounts like credit cards can lower your credit utilization ratio—which can raise your score.
- Apply for new credit accounts sparingly. When you apply for a new loan or credit card, a lender usually performs a hard credit inquiry that can lower your score. To prevent your credit score from suffering a serious drop, only apply for accounts as needed.
How To Choose the Best Personal Loans for You
When shopping for a personal loan that best matches your needs, consider these factors.
- Option to add another borrower. If you want to apply with another person, choose a lender that allows co-borrowers or co-signers.
- Eligibility requirements. Check your income and credit score to understand whether you meet a lender’s requirements. Many lenders will post their requirements on their websites. Plus, some allow you to prequalify online to check estimated rates and terms.
- Total borrowing costs. Plug estimated rates and terms into a calculator to get an estimated monthly payment and the total costs of a loan. Afterward, review your financial situation to decide what you can comfortably afford.
- Loan amount. Minimum and maximum loan amounts vary by lender. In addition, the starting loan amount also sometimes depends on where you live. Pick a lender that offers the desired loan amount for your state.
- Lender reputation. Read lender reviews from review websites to learn what previous applicants have to say about a company’s loan application process, fees and customer service.
Personal Loan Alternatives
A personal loan isn’t the right financing option for everyone. If it’s not an ideal solution for you, consider these alternatives.
Personal Loans vs. Credit Cards
Credit cards tend to come with higher average rates than personal loans. That said, as long as you pay your statement balance in full before the due date, you can avoid paying interest. Plus, some credit card issuers offer 0% APR credit cards.
Personal Loans vs. Cash Advance Apps
Cash advance apps allow you to borrow a small amount to tide you over until the next payday. A major advantage is that you can receive funds instantly for a fee. However, weigh the cost before using this option as fees can be high.
Personal Loans vs. Home Equity Loans
Like personal loans, home equity loans are fixed-rate, lump-sum loans. However, a key difference is that defaulting on a home equity loan can lead to a lender taking your home.
Personal Loans vs. Savings
If you don’t need to cover an emergency expense, consider saving for the purchase instead. One way to save is to deposit a set amount into a high-yield savings account each month.
Frequently Asked Questions
How Much Can I Borrow With a 600 Credit Score?
Maximum loan amounts vary by lender. The amount you might qualify for depends on various factors, including your income, credit score and debt-to-income ratio (DTI).
What Can I Do To Improve My Chances of Qualifying for a Personal Loan With Bad Credit?
Applying for a personal loan with a co-signer with a higher credit score and stable income could boost your approval chances. If you don’t need the funds right away, taking steps to improve your credit before applying could also help.
What Factors Do Lenders Consider Beyond My Credit Score?
Lenders also consider your income and outstanding debt when you apply for a personal loan. If you’re taking out a secured personal loan, a lender will consider the value of your attached collateral—something of value like a car title or bank account.
Related Articles
- Easiest Personal Loans to Get in April 2024
- How to Get a Personal Loan With Bad Credit
- Best Bad Credit Loans of April 2024
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Jerry Brown
Personal Loans & Debt Consolidation Expert
Jerry is a freelance contributor to Newsweek’s personal finance team. He primarily covers loans, including personal loans, home equity loans and student loans. When he isn’t writing, he enjoys spending time with family, riding an electric bike or scooter through the French Quarter in New Orleans and traveling.
Read more articles by Jerry Brown
