Getting a large loan with bad credit is possible, but it will cost more and require extra steps compared to borrowing with good credit. Lenders who work with subprime borrowers routinely offer personal loans up to $30,000, $50,000, or even $75,000, though qualifying for the higher end of those ranges typically means offering collateral, adding a co-signer, or demonstrating strong income despite a low credit score. Here’s how to approach it realistically.
What Counts as “Large” and “Bad Credit”
For most personal loan lenders, anything above $10,000 starts to feel large, and amounts above $25,000 get significantly harder to approve for borrowers with credit scores below 630. A FICO score under 580 is generally considered poor, and 580 to 669 is fair. Both categories will face higher interest rates and more scrutiny, but neither is an automatic disqualification.
The key thing lenders evaluate beyond your score is your ability to repay. That means your income, your existing debt obligations, and your employment stability all matter. A borrower with a 580 credit score but a steady $70,000 salary and low existing debt is a very different risk than someone with the same score earning $30,000 while carrying heavy monthly payments.
Online Lenders That Work With Bad Credit
Several online lenders specialize in loans for borrowers with lower credit scores, and their maximum loan amounts are large enough to be useful. Upstart offers personal loans up to $75,000 and accepts credit scores as low as 300, using factors like education and employment history alongside traditional credit data. Upgrade and Best Egg both go up to $50,000 with minimum score requirements around 600. OneMain Financial lends up to $30,000 and doesn’t publicly disclose a minimum score, which typically means they’re more flexible. Universal Credit offers up to $50,000 with no disclosed minimum score either.
The tradeoff is cost. APRs across these lenders range from roughly 6% to 36%, and if your credit is genuinely bad, you’ll land near the top of that range. On a $25,000 loan at 30% APR over five years, you’d pay more than $22,000 in interest alone, nearly doubling the cost of the loan. That math matters, so borrow only what you truly need and for the shortest term you can afford.
Most of these lenders also charge origination fees, typically 1% to 10% of the loan amount, deducted from your disbursement. On a $20,000 loan with a 6% origination fee, you’d receive $18,800 but owe $20,000. Factor that gap into how much you request.
Use Collateral to Strengthen Your Application
Offering an asset as collateral turns an unsecured loan into a secured one, which reduces the lender’s risk and can unlock larger amounts or better rates even with a low credit score. The most commonly accepted collateral for personal loans is a vehicle you own outright or have significant equity in.
OneMain Financial, for example, accepts cars, trucks, motorcycles, RVs, trailers, and boats as collateral. They require a first lien on the vehicle, meaning no other lender has a claim on it. The vehicle must be titled in your name, insured, and typically no more than ten years old. It also needs to meet the lender’s loan-to-value requirements, meaning the amount you borrow can’t exceed a certain percentage of the vehicle’s current market value.
Upgrade similarly allows borrowers to add a vehicle as collateral on some loans, which can help with both approval odds and the interest rate offered. You’ll need to provide the year, make, model, and mileage.
Some lenders also accept funds in a savings account or certificate of deposit as collateral. This is sometimes called a savings-secured loan, and credit unions are particularly likely to offer them. The downside is obvious: you need cash sitting in an account to pledge, which not everyone seeking a large loan has available.
Add a Co-Signer
A co-signer with good credit and solid income can dramatically improve your chances of approval and the terms you’re offered. The lender evaluates the co-signer’s credit history and income alongside yours, which lowers the perceived risk of the loan.
The co-signer doesn’t receive any of the loan proceeds. They’re purely a backup: if you stop making payments, the lender will pursue the co-signer for the full remaining balance. The loan also appears on the co-signer’s credit report and counts toward their debt obligations, which can affect their ability to borrow for their own needs. This is a significant ask, and both parties should understand exactly what’s at stake before signing.
Not every lender accepts co-signers, so check before applying. When they do, having a co-signer with a score above 700 and verifiable income can be the difference between a denial and approval for a $20,000 or $30,000 loan.
Credit Unions and CDFIs
Credit unions are nonprofit financial cooperatives, and many are more willing to work with members who have imperfect credit than traditional banks are. Because they answer to members rather than shareholders, they often set lower rate caps and more flexible underwriting standards. You’ll need to join the credit union first (membership is usually based on where you live, work, or worship), but the effort can pay off in both approval odds and lower rates.
Community Development Financial Institutions, or CDFIs, are another option worth exploring. These are mission-driven lenders, often nonprofits, that focus specifically on serving low-income and underserved communities. They receive federal funding matched with private investment, and their whole purpose is to provide affordable financial products where mainstream lenders won’t. CDFIs include community banks, credit unions, and loan funds. You can search for CDFIs in your area through the U.S. Treasury’s CDFI Fund website.
Neither credit unions nor CDFIs will necessarily hand you $50,000 with a 520 score, but they’re more likely to consider the full picture of your financial life and offer reasonable terms on a meaningful loan amount.
Home Equity If You Own Property
If you own a home with equity, a home equity loan or home equity line of credit (HELOC) may be the most cost-effective way to borrow a large amount with bad credit. Because the loan is secured by your property, lenders can offer significantly lower interest rates than unsecured personal loans, even to borrowers with credit scores in the low 600s.
The risk is real, though. If you default, the lender can foreclose on your home. Most lenders will let you borrow up to 80% to 85% of your home’s value minus what you still owe on your mortgage. So if your home is worth $300,000 and you owe $200,000, you might access $40,000 to $55,000 through a home equity product.
What the Loan Will Actually Cost
The most important number on any loan offer is the APR, which includes both the interest rate and any fees rolled into the cost. For bad-credit borrowers, APRs on personal loans typically fall between 20% and 36%. To put that in perspective:
- $15,000 at 25% APR, 5-year term: monthly payment around $440, total interest paid roughly $11,400
- $25,000 at 30% APR, 5-year term: monthly payment around $830, total interest paid roughly $24,800
- $25,000 at 15% APR (with collateral or co-signer), 5-year term: monthly payment around $595, total interest paid roughly $10,700
The difference between 30% and 15% on a $25,000 loan is over $14,000 in interest. That’s why securing a lower rate through collateral, a co-signer, or a credit union matters so much on large amounts.
Steps to Improve Your Odds Before Applying
If your need isn’t urgent, even a few months of preparation can make a meaningful difference. Pull your credit reports from all three bureaus and dispute any errors, which are more common than most people realize. Pay down credit card balances to lower your credit utilization ratio (the percentage of your available credit you’re using), since utilization is one of the fastest-moving factors in your score. Avoid opening new credit accounts or making late payments in the months before you apply.
When you’re ready, use prequalification tools. Most of the online lenders mentioned above let you check estimated rates with a soft credit pull that won’t affect your score. Prequalify with several lenders, compare the APRs and origination fees, and only formally apply with the one or two that offer the best terms. Each formal application triggers a hard inquiry on your credit report, so limiting those is worthwhile.
If you’re denied or the terms are unacceptable, the denial letter will explain why. Use that information to target the specific weakness, whether it’s your score, your debt-to-income ratio, or your employment history, and reapply in three to six months after addressing it.