Personal loans with a 560 credit score
A 560 FICO sits in the 'poor' credit range (300-579). Most mainstream personal loan lenders set their minimum at 580-600, so a 560 score means mainstream lenders will decline. However, specialized lenders (Avant, OppFi) and credit unions with manual underwriting do consider borrowers at 560, typically at rates of 25%-36% APR. At this score, the priority should be evaluating whether the cost is sustainable and whether credit-building alternatives make more sense.
Why apply here.
- 01Approval possible at Avant, OppFi, and some credit unions
- 02Loan amounts typically $500-$5,000 at 560 score
- 03APRs run 25%-36% - substantially higher than prime rates
- 04Secured personal loans (using savings as collateral) are a lower-rate alternative
- 05Credit-builder loans help raise score 30-50 points in 12 months
About this loan.
Can I get a personal loan with a 560 credit score?+
Yes, but options are limited. Avant considers scores starting at 580 but may make exceptions at 560 for borrowers with strong income and low DTI. OppFi (OppLoans) targets credit-challenged borrowers and considers 560. Some credit unions with community development missions consider 560+ with manual underwriting. Payday loans and tribal lenders also approve at 560, but at rates that can reach 300%-400% APR - avoid these.
What is a realistic APR at 560?+
At 560 FICO, you should expect APRs of 25%-36% from any legitimate lender who will approve you. OppFi quotes 59%-160% in some states, which is far too expensive for most needs. Avant typically quotes 25%-35.99% for below-prime borrowers. A credit union personal loan may come in at 18%-24% if you can establish membership. Run the total interest cost before accepting any offer: $2,000 at 36% over 24 months = $846 in total interest.
What are better alternatives to a high-rate personal loan at 560?+
Several alternatives may be more cost-effective: (1) Secured personal loan - borrow against a savings account or CD at the credit union, rates typically 8%-12%, much lower than unsecured. (2) Credit-builder loan - a product specifically designed to build credit while you save, costs are low and the outcome (score improvement) makes future loans cheaper. (3) Paycheck advance through your employer if the need is urgent. (4) Family or friend loan with a formal written agreement. (5) Nonprofit credit counseling to evaluate debt management options. At 560, raising your score to 580-620 in 6 months (by reducing utilization and maintaining on-time payments) can drop your future loan rate by 10+ points.