Personal Loan With a 500 Credit Score: Options, Rebuild Plan

Published by the Modern Lending Solutions editorial team. Last reviewed: October 27, 2026.

Short answer: a 500 credit score is in the "poor" FICO range, below 580 (myFICO), and in the "deep subprime" tier of 300 to 579 that the CFPB uses (CFPB). Many lenders will say no, and offers that do come are likely to be expensive. Options that rely less on your score, and a plan to rebuild it, are usually the better route.

Scores this low tend to stay low without a plan

Before the pandemic, 79 percent of consumers with deep subprime scores were still in that tier one year later; during the pandemic period the share was 74 percent (CFPB). Rebuilding takes months, so start now even if you also need money now.

Options that rely less on your score

Option	How it works	Watch for
Payday alternative loan (PAL) from a federal credit union	Small installment loan for members, APR capped at 28%, application fee of $20 at most	You must join the credit union; for PALs I, at least 1 month of membership first
Secured credit card	You put down cash, for example $500, and can spend up to that amount; paying the bill restores it	Fees, and making every payment on time
Credit builder loan	Payments go into savings and are reported to the credit bureaus; you get the money at the end	It does not give you cash now
A cosigner	Someone with stronger credit signs with you	The cosigner may have to repay the full debt

Sources: PALs NCUA and our PAL guide; secured cards CFPB; credit builder loans our guide; cosigning FTC.

What is on your report, and for how long

A credit bureau can report most negative information for seven years, and bankruptcy information for 10 years (FTC).
Inaccurate information can be disputed with the credit bureau and the company that reported it (FTC).
You can get free credit reports every week at AnnualCreditReport.com (FTC).

A 12 month rebuild plan

When	Step
Week 1	Pull all three reports and dispute any error.
Month 1	Set up automatic minimum payments on every account so nothing is late. Payment history is 35% of FICO Scores (myFICO).
Months 1 to 3	Open one product that reports to the bureaus, such as a secured card or a credit builder loan, and keep its balance low.
Months 3 to 12	Keep card use at no more than 30 percent of your limits (CFPB), and avoid new applications you do not need.
Month 12	Pull your reports again and compare.

No plan can promise a particular score, but these are the habits scoring models reward.

Red flags at this score

People with low scores are a main target for loan scams. A request to pay a fee before you get a loan, or a promise of approval whatever your credit, are warning signs (FTC). See fake loan texts and calls, and if you already have a payday loan you cannot repay, see your options.

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Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.