4 personal loan lenders that accept applicants with credit scores that are 580 or lower

There are many advantages to having good or excellent credit. For one, a high credit score can help you get approved for financial products — like personal loans — with a lower interest rate. Still, there are some personal loans out there that keep customer flexibility in mind. In other words, even if your credit score is less than ideal, you still have a solid chance of getting approved for the loan you need.

Some lenders cater to applicants with lower credit scores in the poor range (below 580) to help them borrow money for emergency expenses, a medical bill, debt consolidation and other financing needs.

Below, CNBC Select rounded up four of the best personal loan lenders that still accept applicants who have credit scores of 580 or lower. We looked at fees, interest rates and flexible repayment options for different credit scores. (You can read more about our methodology below.)

Keep in mind that if you're applying for loans — or any line of credit — with a lower credit score, you are likely to receive higher interest rates because lenders will see you as more of a "riskier" borrower. It's important to compare rates with different lenders and do your homework before signing to make sure you're comfortable with your new loan terms. If you want to increase your credit score to get a better interest rate or loan terms, there are a few ways to do so, some of them which can have immediate effects.

• Best for people without a credit history: Upstart Personal Loans
• Best for debt consolidation: Happy Money
• Best for flexible terms: OneMain Financial Personal Loans
• Best for quick funding: Avant Personal Loans

When searching for a personal loan, it can be helpful to compare several different offers to find the best interest rate and payment terms for your needs. With this comparison tool, you'll just need to answer a handful of questions in order for Even Financial to determine the top offers for you. The service is free, secure and does not affect your credit score.

This tool is provided and powered by Even Financial, a search and comparison engine that matches you with third-party lenders. Any information you provide is given directly to Even Financial and it may use this information in accordance with its own privacy policies and terms of service. By submitting your information, you agree to receive emails from Even. Select does not control and is not responsible for third party policies or practices, nor does Select have access to any data you provide. Select may receive an affiliate commission from partner offers in the Even Financial tool. The commission does not influence the selection in order of offers. 

Who's this for? According to Upstart's website, applicants with a credit history should apply with a minimum credit score of 300 (though, Upstart also accepts applicants with no credit history). Sometimes, a potential borrower may have a low credit score because they have extremely limited credit activity. Other times, a lack of credit history may result in them having no credit score at all. Just keep in mind that if you're approved for the loan with a lower (or no) credit score, you may be subject to a higher interest rate.

You can apply for loan amounts as low as $1,000 and as much as $50,000. And while there are no penalties for paying off your balance early, Upstart does charge an origination fee (up to 12% of the amount you borrow) and late fees ($15 or 5% of the past due balance, whichever is greater).

When it comes to repaying the balance, loan terms range from 36 to 60 months, which can be appealing to borrowers who think they may need a longer time horizon to repay the entire loan.

Who's this for? The minimum credit score required to apply for a Happy Money personal loan is 550, making the lender a good place to start for those who have a poor credit score and are most concerned with debt consolidation. Happy Money personal loans can actually only be used for debt consolidation and qualified borrowers can apply for a minimum of $5,000 and a maximum of $40,000.

Another perk you get from taking out a Happy Money loan is access to financial literacy tools. Accepting a Happy Money loan comes with a membership that grants you access to free FICO score updates, a team that performs quarterly check-ins with you during your first year of working with Happy Money and tools to help members improve their relationship with money through personality, stress and cash flow assessments.

Who's this for? OneMain Financial generally accepts applicants with at least a poor or fair credit score (the exact credit score minimum is not disclosed but for reference, a poor credit score is considered to be between 300 and 579 and a fair credit score is considered to be between 580 and 669). 

This lender offers terms that are more flexible than that of other lenders. For one, many lenders don't allow you to apply with a co-applicant, which can be a bit of a concern if you're worried your credit score will hurt your chances of securing a better interest rate. But with OneMain Financial, you should be able to submit your application with a co-applicant.

Another feature that makes this lender a little more flexible is the ability to secure your loan with collateral. Personal loans are generally unsecured debt, meaning you can borrow the money outright without having to offer up something of value. But with secured loans, a borrower essentially uses another asset as a "promise" that if they fail to repay their loan in full, the lender can seize that asset from them as collateral. Not only does OneMain Financial give you this option, but doing so also lets you potentially receive an even lower interest rate. Plus, borrowers can actually choose the date their monthly payments are due.

The origination fee with OneMain Financial is on the higher end: either a fixed fee between $25 and $500 or up to 10% of the loan amount, depending on which state you live in. And while there aren't any penalties for paying off the loan early, there is a late fee that will run you either $30 or up to 15% (depending on your state).

Who's this for? Avant's minimum credit score requirement for applicants is 550. And this lender can typically provide funding as early as the next business day after you've been approved. This makes it appealing for those who may need money in a pinch — just make sure you submit all the necessary documents and information you provide is complete and accurate so you can get funded without a hitch.

This lender also offers personal loan amounts as low as $2,000 and as high as $35,000.

While there are no penalties for early payoff, there is an origination fee of up to 4.75% and a late fee of up to $25 after the 10-day grace period.

It is possible to pre-qualify for a personal loan without hurting your credit score. Do some research before you apply. Read reviews and learn what to consider before agreeing to take on a loan. When you're ready to apply, follow these steps to make sure you don't ding your score too much.

1. Shop around for the best rate. Avoid hard inquiries by knowing your credit score before you submit a formal application so you know what you might qualify for. Many lenders will allow you to submit a prequalification form. Or consider using a lending platform (such as Upstart or LendingTree) to view multiple offers at once.
2. Decide on the best offer. Choose the loan with the best monthly payment and interest rate for your budget. Be sure to look at how much the loan will cost you over the full length of the term and decide if the cost is worth it.
3. Submit a formal application. Have your social security number on hand, as well as supporting documents such as bank statements and paystubs.
4. Wait for final approval. This could take just a few minutes, an hour or up to 10 days. To facilitate a speedier approval, apply during normal business hours and submit the required documents right away.
5. Get your funds. Once your loan is approved, you'll be asked to input your bank account information so the funds are deposited into your account. You may also be able to request a paper check from your lender, or in the case of a consolidation loan, you may be able to have funds sent right to your creditors.

You can still get approved for a personal loan with a less-than-stellar credit score. Having a personal loan can help boost your credit score by strengthening your credit mix, but you must remember to make your payments on time each month. Late and missed payments show up as negative marks on your credit report.

To determine which personal loans are the best for consumers with a credit score of 580 or lower, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions. When possible, we chose loans with no origination or sign-up fees, but we also included options for borrowers with lower credit scores on this list. Some of those options have origination fees.

When narrowing down and ranking the best personal loans, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides more than one financing option that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $1,000 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

The rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, many lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

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