Getting a large loan like $50,000 with bad credit can be challenging. Lenders typically require strong credit history to approve high loan amounts. In the USA, a $50k personal loan is often requested for big expenses (debt consolidation, home projects, medical bills, etc.), but it usually demands higher standards. Credit scores under 580 are considered “poor”, and 580–669 is “fair”acornfinance.com. With a poor score, lenders worry about repayment. This guide explains what lenders look for, how to improve your approval odds, and which U.S. lenders may consider you, even with bad credit.
What Lenders Look For
When evaluating a $50,000 loan application, lenders focus on three main factors: your credit score, income/debt-to-income (DTI) ratio, and collateral (if any). Most lenders “place the most weight” on your credit score and debt-to-income ratioacornfinance.com. Large loan amounts trigger stricter requirements. For a $50k loan, you generally need a higher score (many lenders prefer 660+) and steady incomebankrate.comacornfinance.com. You must prove income and assets to cover the higher monthly payment. Be prepared to provide documentation such as pay stubs or tax returns, employment and income information, and even banking statementsbankrate.combankrate.com.
Lenders will also verify your identity and financial background. You’ll likely need to submit proof of identity (ID/passport), proof of address (lease, utility bill, etc.), proof of income (paystubs, W-2s, tax returns) and bank information for fundingbankrate.com. Even if you have other debt, lenders want to see that your DTI is manageable – typically under 40–50%. In short, they want assurance you can repay: a solid score, a stable job/income, and low relative debt.
Loans can be secured or unsecuredacornfinance.com. Secured loans are backed by collateral (home equity, car, savings), which reduces lender risk. Acorn Finance notes that secured loans “reduce the risk for the lender, which can allow them to relax requirements”acornfinance.com. For example, Best Egg and Upgrade offer secured personal loans using vehicles or even home fixtures as collateral to improve approval oddsnerdwallet.com. Unsecured loans have no collateral, so lenders rely entirely on creditworthinessacornfinance.com. Unsecured $50k loans typically require excellent credit and income.
Strategies to Improve Approval Odds
If your credit is less than ideal, use every tool available to strengthen your application:
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Apply with a Co-signer or Co-borrower. Having someone with good credit cosign the loan can dramatically boost approval chances. Bankrate notes some lenders allow co-borrowers or cosigners to “help improve your approval odds”bankrate.com. Navy Federal Credit Union likewise says a co-applicant “may help you meet the credit requirements necessary for loan approval”navyfederal.org. With a cosigner, the lender has another responsible party on the hook, so they’re more willing to lend a large sum to someone with lower scores.
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Offer Collateral or Apply for a Secured Loan. Pledging an asset can lower the lender’s risk. For instance, Best Egg offers secured loans using your car or even fixtures (cabinets, shelving) as collateralnerdwallet.com. You could also consider a home equity loan or line of credit, where your house secures the loan. While this puts your property at risk, it often lets you borrow more with lower interest than an unsecured loan.
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Choose the Right Lender. Shop for lenders known to work with fair or bad credit. Online lenders like Upstart and Upgrade use alternative underwriting. Upstart has no minimum credit score and looks at education and work historynerdwallet.com, making it more flexible for low scores. Upgrade will consider borrowers down to ~600 scores and offers discounts for debt consolidation or autopaynerdwallet.com. Peer-reviewed sites highlight these lenders: NerdWallet calls Upstart “a solid choice” for large loans with bad credit, since it considers applicants with scores in the 300s–500snerdwallet.com.
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Apply for Prequalification/Soft Inquiry. Getting prequalified with several lenders lets you compare offers without hurting your score. A soft credit check is usually used in prequalification, and Bankrate emphasizes getting soft prequalified by multiple lenders (marketplaces like Bankrate or Credible help with this)bankrate.com. Choose lenders that show prequalification results instantly – this avoids multiple hard pulls and gives you an idea of rates first.
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Strengthen Your Application in Other Ways. Even small steps can help. Pay down high-interest debt to improve your DTI. Check your credit report and dispute any errors. If possible, hold off on new credit inquiries right before you apply. Make sure all paperwork is in order so you can submit documents quickly (fast documentation can speed approval)bankrate.com.
U.S. Lenders for Large Loans with Bad Credit
Online lenders: Many online banks and fintech companies offer high-amount loans and may consider fair-credit borrowers. For example:
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Upstart – Unsecured loans up to $75,000, APRs ~6.7%–35.99%, with no minimum credit score. Uses AI and alternative data, so even very low scores may qualifynerdwallet.com.
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Upgrade – Unsecured loans up to $50,000, APRs ~7.99%–35.99%. Minimum score about 600, but accepts fair credit. Offers rate discounts for autopay or debt consolidationnerdwallet.com.
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Best Egg – Unsecured or secured loans up to $50,000, APRs ~6.99%–35.99%. Requires ~600+ score for unsecured, but allows collateral (vehicle or home fixtures) to improve approval and get lower ratesnerdwallet.com.
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LendingClub – Peer-to-peer personal loans up to $40,000. APRs roughly 7%–36%. Notably supports joint applications, letting two people combine credit and incomenerdwallet.com, which can help if one applicant has better credit.
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SoFi – Online lender offering loans $5,000–$100,000, APRs ~8.99%–35.49%bankrate.com. Per Bankrate, it’s best for borrowers with decent credit, but it does allow co-borrowers and offers quick, same-day fundingbankrate.combankrate.com.
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LightStream (SunTrust) – Loans up to $100,000, APRs ~6.99%–24.89%bankrate.com. Low rates for creditworthy borrowers, but requires good/excellent credit. However, it promises no fees and a “Rate Beat” guarantee on auto loansbankrate.com.
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Achieve – Formerly OneMain’s online arm, offers loans up to $50,000. Competitive rates (about 9%–30%) with a minimum score around 640bankrate.com. Allows joint applications and quick, same-day approval.
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Axos Bank – A digital bank offering loans $7,000–$50,000 (terms 3–6 years)axosbank.com. Funding can arrive in ~2 days. (Axos doesn’t publicly list credit criteria; expect moderate credit required.)
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Other Fintechs: Consider peer-to-peer sites (Prosper), or secured-marketplace loans (like LendingPoint, which we didn’t cite but known for fair credit). Always check the latest rates and terms on their sites.
Banks and Credit Unions: Traditional financial institutions often have strict credit requirements, but some credit unions are more flexible:
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Wells Fargo – Offers loans $3,000–$100,000 (12–84 month terms) at fixed rates (currently 6.74%–26.49% APR)wellsfargo.com. Requires at least 12-month account history. Better credit needed, but safe and no fees.
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Navy Federal Credit Union – For military members/families. Loans up to $50,000 can be applied online (loans $50k–$150k require in-branch plus co-borrower)navyfederal.org. No collateral and competitive rates; membership required (armed forces, veterans, etc.).
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Alliant Credit Union – Open membership via charity; personal loans $1,000–$100,000 (1–5 year terms)alliantcreditunion.org. Unsecured with quick online approval and same-day funding in many cases. (Credit requirements not published, but credit union membership may help get approvals more flexibly.)
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Municipal Credit Union (MCU) – A New York-based CU offering $1,000–$50,000 loansnymcu.org. As of late 2025, a 36-month $50k loan APR could be as low as 7.99% for excellent creditnymcu.org. (You must meet membership criteria and excellent credit to get the lowest rates.)
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Other CUs: Many regional credit unions (e.g. NASA FCU, BECU, PenFed) offer personal loans up to $30k–$50k. They often have competitive rates but require membership (military, employer, or community-based eligibility). Check any local credit union as they sometimes have special fair-credit programs.
Sources: Bankrate’s lenders tablesbankrate.comwellsfargo.com and NerdWallet’s reviewsnerdwallet.comnerdwallet.com give detailed APR ranges, minimum scores, and terms. Always confirm current rates on the lender’s site before applying.
Risks and Trade-Offs
Taking a large loan with bad credit has serious downsides. High interest costs: Bad-credit borrowers often face the highest APRs (30%+). As Investopedia warns, interest rates on personal loans can range from very low to three or four times higher depending on creditinvestopedia.com. A $50k loan at 30% APR means thousands in annual interest. Longer repayment terms can reduce your monthly payment but increase total interest paid. Bankrate illustrates that stretching a $50k loan to 7 years roughly doubles the interest cost versus a 3-year termbankrate.com. In short, you’ll pay much more in the long run.
Credit impact and fees: Applying will trigger a hard credit pull, which can temporarily knock a few points off your scoreinvestopedia.com. More importantly, missing even one payment can seriously damage your score or lead to default. Investopedia notes that failing to pay “could lower your credit score once the late payment is reported”investopedia.com. Some loans also have origination fees or prepayment penalties (read the fine print). Always consider whether you can truly afford the monthly payments on a $50k debt.
Collateral risk: If you took a secured loan (home equity, auto), remember your asset is at stake. Defaulting could mean foreclosure or repossession. The American Bankers Association warns that predatory “refinancing” schemes can ensnare borrowers into losing their homesaba.com.
Avoiding Predatory Lenders and Scams
With bad credit, you may attract shady offers. Be on guard: Predatory lenders often promise “guaranteed approval” or “bad credit is no problem”, which legitimate lenders will never do. The American Bankers Association explicitly cautions, “Avoid lenders who say bad or no credit is ‘no problem.’ Lenders you can trust don’t do business this way.”aba.com. Other red flags include pressure to act fast, door-to-door pitches, or demands for payment upfront. Never pay fees before receiving funds.
Check lender credentials: Only borrow from licensed lenders. Look up reviews and check with the Better Business Bureau for complaints. Compare multiple offers to ensure rates are competitive. Watch out for loans that seem too good to be true (very low rates but hidden fees). Remember ABA’s advice: if something seems risky, “read the fine print… and never sign a blank form”aba.comaba.com. If you suspect a scam, you can report abusive lenders to the Consumer Financial Protection Bureau (CFPB).
FAQ
Can I get a $50,000 loan with a 550 credit score?
It’s very difficult. Most lenders require 600+ for unsecured loans. However, a few (like Upstart) have no minimum score and use alternative factorsnerdwallet.com. You’d likely need a strong co-signer or collateral. And expect an extremely high interest rate if approved. Consider smaller loans first or improving your score before applying for that much.
How long does approval take?
Once submitted, many lenders can approve quickly. Online lenders like SoFi or Upgrade often give instant decisions or within a day. Bankrate notes that if you apply and are approved early in the day, you might get funded same day; otherwise funds usually arrive in 1–3 business daysbankrate.com. Traditional banks/credit unions may take longer (sometimes up to a week). Gather all docs in advance to speed things up.
Do I need a co-signer?
Not always, but it can help. For bad-credit borrowers, a co-signer with good credit can significantly improve odds and lower your ratebankrate.comnavyfederal.org. Some lenders even require a co-signer if your score is too low or loan is very large. If you have a willing family member/friend with solid credit, it’s a good strategy.
What if I can’t qualify?
If you’re denied, ask why (e.g., income too low, credit score too low) and work on those areas. You can try a smaller loan amount or a secured loan first. Meanwhile, improve your score: pay bills on time, reduce credit balances, and avoid new inquiries. Even a few months of on-time payments can raise your score noticeably.
Conclusion & Next Steps
Taking out a $50,000 personal loan on bad credit is risky and rare, but not impossible. The key is preparation: check your credit, gather proof of income, and research lenders that specialize in fair-credit borrowers. Compare offers carefully – use free prequalification tools and marketplaces – and never rush into the first offer you get.
Above all, continue improving your credit over time (on-time payments, credit utilization) so that future borrowing is easier and cheaper. If your need is urgent, consider all options (e.g. a smaller loan plus other funding). When you’re ready, shop around: even a small improvement in your credit score could save thousands in interest. Stay diligent and cautious, and use the strategies above to help make that $50,000 loan a reality – and a smarter financial move.
Meta: Learn how to qualify for a $50,000 personal loan with bad credit. Understand lender requirements, approval strategies, top lenders, risks, and how to avoid scams.
