Bad Credit

Loan Options for Bad Credit: What's Realistic in 2026

FinanceScoreAI Editorial Published 2026-02-15Updated 2026-06-206 min read

Practical options for U.S. applicants with FICO scores below 640.

The reality of subprime lending

Applicants with lower credit typically face higher APRs and smaller loan amounts. That's not a reason to overpay — it's a reason to compare carefully.

Options to consider

Several product categories accept subprime applicants.

  • Bad-credit personal installment loans
  • Secured personal loans (backed by savings or a vehicle)
  • Credit union loans (if you're eligible for membership)
  • Cosigner loans

Products to avoid

Payday loans, car-title loans, and any offer that guarantees approval before reviewing your application are typically predatory. Read every offer's full terms before signing.

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