Can I Get a Loan With A 550 Credit Score?

We Are/Getty Images; Illustration by Austin Courregé/Bankrate

For many Americans, the reality of an uncertain job market and rapidly rising cost of living is causing them to lean on credit cards to bridge the gap. Bankrate’s 2026 Credit Card Debt Report found that, among credit card debtors, more than 4 in 5 (84%) say their credit card debt impacts their financial choices — such as whether to make a big purchase, take a vacation or look for a new job. This can make borrowing feel like the next logical step. 

If you’re considering a personal loan, the details matter. Comparing rates, fees and terms could be the difference between short-term relief and long-term financial strain. While you can get a personal loan with a 550 credit score, it’s rarely simple and almost never cheap. This guide walks you through what to expect and how to find the most workable option for your situation.

Can you get a personal loan with a low credit score?

Yes, you can get a loan with a low credit score, even one as low as 550. But lending to borrowers with bad credit can be risky for lenders. If you do choose to borrow, expect high interest rates and more drawbacks than a typical loan.

• Higher interest rates: Your credit score is the top factor determining your interest rates with most lenders. With some loans, like payday loans or auto title loans, you could face an annual percentage rate (APR) higher than 35.99% with a 550 credit score.
• Smaller loan amounts: Lenders think a low credit score means a borrower is more likely to fail to repay a loan. As a result, they may limit the amount you can borrow to reduce the chance that you’ll stop repaying the debt.
• Shorter repayment terms: With a low credit score, you’re unlikely to qualify for a lender’s maximum term. A shorter repayment term means higher monthly payments, which could be harder to keep up with.
• Higher fees: Many bad credit lenders charge origination fees of up to 12% of your loan amount. This fee is deducted before you receive your loan funds, meaning you may have to borrow more than you need to account for the fee.
• Increased chance of rejection: A 550 score tells lenders you have some credit mishaps in your history. To weed out the lenders that aren’t likely to approve your loan, get prequalified to determine your eligibility without impacting your credit.
• Aggressive debt collection tactics: Recent changes in oversight and enforcement at agencies, like the Consumer Financial Protection Bureau, have raised concerns of more aggressive debt collection tactics and predatory lending practices.  

When should you borrow a bad credit loan?

A bad credit loan can make sense when you’re facing a financial gap you can’t cover with savings or lower-cost options. They should be used as a last resort option for urgent expenses or situations where borrowing could help you stabilize your finances, not stretch them further. 

“Any lender dealing in such loans expects many defaults and losses, and acts accordingly,” says Michael Sullivan, the director of education at nonprofit credit counseling agency Take Charge America. “The result is that a personal loan is almost always a bad deal for the consumer with poor credit.”

While it’s true that personal loans for bad credit can have high rates and fees, sometimes they’re the best financial solution to avoid more predatory forms of borrowing, like payday loans. Before applying, be sure that you have a clear need and financial goal, such as:

• To pay off revolving debt, like credit cards. If you’re only making the minimum payment on your credit card debt, it can take ages to pay off the balance — and accruing interest can really add up. Using a personal loan to pay those balances off, combined with other good debt practices, could get you out of that cycle of debt and even raise your score over time.
• To consolidate debt and simplify repayment. The average American has about four credit cards. That’s four different payment due dates to track every month, and four potential late fees if you lose track. Consolidating them into a single payment (with a personal loan) could make it easier to track what you owe and when.
• To have a definite payoff date for your debt. Tired of the endless revolving credit merry-go-round? Personal loans have set repayment terms, which means you’ll have a definitive payoff date to look forward to.

How bad credit affects personal loan rates

Lenders view a lower score as a sign of risk. To offset loss from potential missed payments or a defaulted loan, they charge higher interest rates for borrowers with bad credit. There may be additional fees as well, like origination fees, that limit the amount you can borrow and add to your total costs. 

For example, the average interest rate for personal loans is 12.27% as of April 15, 2026. Based on that, a $15,000 personal loan with a 48-month repayment term has monthly payments of $397 and costs $4,056 in total interest.

That same loan with bad credit is significantly more expensive. With a 550 credit score, you may receive a lender’s top-end rate, which is often 35.99%. Your monthly payment would be nearly $594, and you’d pay a total of $13,492 in interest.

In this example, you’d pay almost $10,000 more in interest over the life of your loan if you have bad credit.

How to get a personal loan with a 550 credit score

If you decide to get a personal loan, finding one with a 550 credit score will be more challenging. It’s important to be thoroughly prepared to navigate the process.

1. Do your research. Eligibility guidelines and products can vary widely by lender. It’s important to research and compare personal loans and their lenders to find out which lender and loan product is best for you.
2. Shop around and prequalify. Compare rates and terms to get the best deal for your situation. Use a marketplace comparison site like Bankrate to compare lender requirements, fees and APR ranges in one place. Some lenders allow you to prequalify for a personal loan, which provides you with more customized loan offers without hurting your credit score.
3. Choose a lender and apply for your loan. Once you decide to apply, a full application will result in a hard credit check, which can temporarily drop your score. Make sure you understand the terms of the loan, as you’ll likely have more limitations and higher interest rates because of your score.
4. Make on-time payments. Consistently making on-time payments for at least the minimum amount due each month and paying down that debt can help rebuild your credit score. Remember, payment history and credit utilization are the two biggest factors in credit scoring.

Is 550 a good credit score?

While it’s not the worst possible credit score, 550 is not considered a good credit score. The Fair Isaac Corporation (FICO), which is one of the most widely used credit scoring models, categorizes credit scores of 579 or lower as poor, and the Consumer Financial Protection Bureau (CFPB) considers a 550 FICO Score to be “deep subprime” — in both cases, the lowest credit tier.

If you have a low credit score, you aren’t alone. According to Experian, one of the three major credit bureaus, 15% of consumers had a poor credit score in early 2026, compared to 13.2% of consumers in late 2024.

Types of loans to consider if you have a low credit score

• Personal loans
  

  If you need to borrow a large sum of money, a personal loan may be the best option. While rates can be as high as 36%, the repayment term is typically longer than other financing options. Personal loans are available through banks, credit unions and online lenders.

• Secured loans
  

  Some lenders allow you to secure your personal loan with collateral, like a house, car or other item of value. You’ll generally get better loan terms, but you risk losing your asset if you default on the loan.

• Small loan from a credit union or bank
  

  Some banks may offer existing members a small loan with a short term. “Often, having an existing relationship with a community institution is helpful, as they usually have more flexibility and may be willing to take a holistic look at your finances and evaluate your application based on more than just your credit score,” says debt attorney and finance expert Leslie Tayne, founder of Tayne Law Group.

• Joint loans
  

  Consider using a cosigner or co-borrower with a solid credit score if you’re unable to qualify on your own. “Many lenders will provide loans if they are guaranteed by someone with good credit,” Sullivan says. Just make sure you manage the loan responsibly. If not, you’ll negatively impact your cosigner’s credit.

• Buy now pay later (BNPL)
  

  Depending on how much you need and what you’re financing, you may be able to use buy now pay later, which offers short-term financing typically with no credit check or interest charged. But beware: a recent BNPL survey from Bankrate found that about half of BNPL users have experienced issues. Additionally, if you miss payments, you could be charged a late fee and be reported to the credit bureaus.

• Payday alternative loans (PALs)
  

  A safer option than payday loans, PALs are offered by federal credit unions and often come with high interest rates, capped at 28%. They typically have lower fees and longer repayment terms than payday loans, but you’ll likely need to be a member of the credit union offering this option.

• Payday loans
  

  With APRs that can exceed 400%, payday loans are dangerous. The max amount you can usually borrow from a payday loan is $500, and the balance is due in full by your next pay day. With such a short repayment term and exorbitant rate, payday loans are a risky option for any borrower.

Bottom line

Getting a personal loan with a 550 credit score is possible, but you’ll need to invest time in shopping around to find lenders willing to work with you. This is time well spent, as it will also allow you to find the best personal loan interest rate possible for your situation.

If you cannot get a personal loan with bad credit, consider redirecting your efforts toward improving your credit score. When your credit profile has improved, reapply for a loan.