Personal Loans for a Credit Score of 550

Getting a personal loan with a 550 credit score can be challenging, but it’s not impossible. Some lenders specialize in helping borrowers with poor credit, offering options to cover expenses or rebuild your credit with responsible repayment.

Best personal loans for 550 credit score 

We’ve examined top lenders and loan marketplaces to help you decide which best suits your needs.

Company

Best for…

Min. credit score

Rating (0-5)

Best Marketplace

None

5.0

View Rates

Best for Little to No Credit

300

4.8

View Rates

Credible

Best Marketplace

5.0 _/5

View Rates

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Why we recommend it for a 550 credit score

Credible is an excellent choice for borrowers with a 550 credit score because it connects you with multiple lenders that cater to those with poor credit. Its platform allows you to compare prequalified offers without affecting your credit score, making it a risk-free way to explore your options.

For borrowers in this range, Credible simplifies the process by leveraging its extensive lender network. This ensures you can quickly find competitive rates and terms even with a low credit score, making it an ideal starting point for those seeking a personal loan with minimal hassle.

Rates (APR)	6.99% – 35.99%
Loan amounts	$600 – $200,000
Repayment terms	1 – 10 years

Upstart

Best for Little to No Credit

4.8 _/5

View Rates

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Why we recommend it for a 550 credit score

Upstart is a top pick for borrowers with a 550 credit score because it goes beyond traditional credit checks, evaluating factors including your education and job history to determine loan terms. This unique approach can lead to better loan offers for those with limited or damaged credit histories.

With fast approvals and funding as soon as the next business day, Upstart is particularly beneficial for borrowers with a low score who need quick access to funds. Its focus on non-traditional credit factors makes it a standout choice for rebuilding financial stability.

Rates (APR)	7.80% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	3 – 5 years

Pros and cons of personal loans if your credit score is 550

Should you get a loan with a 550 credit score? 

A personal loan can make sense with a 550 credit score if:

• You need a fixed amount for a specific purpose.
• You’re prepared for higher interest rates.
• You want to rebuild your credit by making on-time payments.

If you decide to take out a loan, creating a repayment plan is essential. Paying it off early can save money on interest—consider biweekly payments, using windfalls for lump-sum payments, or making small extra payments regularly.

If your need isn’t urgent, waiting to improve your credit score could help you qualify for better rates and terms. A score above 600, for example, can significantly lower borrowing costs.

A credit score of 550 is considered poor. If your score is in this range, I recommend understanding how it fell to this level and working on improving your score over time.

In some cases, it could be an issue with your budget, so focus on increasing your income (if needed), spending less, and saving more so you don’t put yourself in a position where you can’t manage debt responsibly. 

Chloe Moore, CFP®

Alternatives to personal loans for a credit score under 550

You may have more options than you realize to secure the funds you need. Let’s explore alternatives to personal loans.

• Cash advance app: Borrow a few hundred dollars and repay it out of your next paycheck; no credit check. [Best cash advance apps]
• Secured loan: Use collateral for better terms.
• Credit builder loan: Build credit; lenders will typically hold the loan amount until you’ve repaid the loan in full. [Best credit builder loans]
• Cosigner or co-borrower: Improve approval chances with a creditworthy cosigner. [Best personal loans with a cosigner]
• Peer-to-peer (P2P) loan: From individual investors rather than traditional financial institutions
• Family or friend loan: Potentially flexible terms and low to no interest,

FAQ

What are the interest rates like for loans with a 550 credit score?

Interest rates for personal loans with a 550 credit score can be quite high due to the perceived risk to lenders. Borrowers with a credit score in this range might face interest rates as high as 35%. Rates often depend on other factors, such as your income, loan amount, loan term, and credit scores.

How fast can I get a personal loan with a 550 credit score?

It varies by lender, but approval and funding for a personal loan can occur within several business days. Some online lenders even offer same-day or next-day funding after approval.

How we chose the best personal loans for a credit score under 550

Since 2017, LendEDU has evaluated personal loan companies to help readers find the best personal loans. Our latest analysis reviewed 1,029 data points from 49 lenders and financial institutions, with 21 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best personal loans for a 550 credit score

Company

Best for…

Min. credit score

Rating (0-5)

Best Marketplace

None

5.0

View Rates

Best for Little to No Credit

300

4.8

View Rates