Borrowing below a 630 score, ranked cheapest to worst
A low credit score narrows your options and raises your rate — but not as far as the ads for "guaranteed approval" want you to believe. Here is the real menu, ordered by cost, and how to tell a legitimate lender from a trap.
| Order | Option | Typical APR | Notes |
|---|---|---|---|
| 1 | Credit-union PAL | Capped at 28% | Federal credit unions; membership required |
| 2 | Secured loan or secured card | 10–24% | Collateral or deposit lowers the rate |
| 3 | Cosigned personal loan | 12–30% | A cosigner's credit does the qualifying |
| 4 | Bad-credit personal loan | 25–36% | Legitimate but expensive; read the fee |
| — | Payday / title loan | 150–400%+ | Avoid — see cheaper options above |
Representative July 2026 ranges. Work down this list only as far as you must — each rung costs more than the one above it.
Below a 630 score the lender stops trusting the number and starts asking what else backs the loan. That is the key to a lower rate: give them something the score cannot. A secured loan A loan backed by an asset — a deposit, a car — that the lender can seize on default, lowering your rate. Full definition → pledges collateral. A cosigner lends you their credit. A credit-union caps its own rate by regulation. Each turns "declined or 35%" into something you can actually afford.
The danger zone is the marketing built for desperation. "Guaranteed approval" and "no credit check" describe products — payday and title loans — whose triple-digit APRs make a bad situation worse. A real lender always checks your ability to repay; anyone who promises otherwise is selling a trap or a scam.
Honest answers on bad-credit borrowing
What counts as bad credit?
Generally a FICO score under 630. Below that, most mainstream personal-loan lenders decline you, and the ones that approve price at the top of the legal range. The lower you go, the more the lender leans on income, collateral, or a cosigner instead of the score.
How can I get a lower rate with a poor score?
Three levers move the rate more than the score itself: add collateral (a secured loan), add a creditworthy cosigner, or borrow from a credit union whose rates are capped by law at 18–28%. Any of the three can turn a 35% offer into a manageable one.
Are "guaranteed approval" loans real?
No legitimate lender guarantees approval before checking your ability to repay — the phrase is a marketing hook, and it usually fronts a payday-style product or an outright scam. A real lender always underwrites. Treat "guaranteed" and "no credit check" as warnings, not features.
Will a bad-credit loan rebuild my credit?
It can, if the lender reports to all three bureaus and you pay on time — on-time payments are the largest factor in your score. A secured card or credit-builder loan is often a cheaper way to do the same thing without a high-APR balance.