Best Bad Credit Personal Loans in Texas in 2026
Texas LendingTree users with credit scores below 580 typically borrow about $11,000
What are the best lenders for bad credit loans in Texas right now?
Everything’s bigger in Texas, and debt is no exception. Texans face some of the highest credit card debt stress in the country, and nearly 42% of households in Texas say it’s hard to make ends meet.
You’re not alone if you’re having trouble finding a loan for bad credit in Texas. Our experts used our proprietary rating system to select the top five lenders in Texas from a list of over 40 loan companies. The lenders on this list have three things in common:
- Available in Texas. Lenders don’t always operate in every state, but we’ve confirmed that the lenders on this page offer loans in Texas.
- Accept bad credit. Every lender on our list has a minimum credit score below 580 (the threshold for bad credit), or explicitly says that they work with people with bad credit.
- Relatively affordable. These lenders offer APRs below 36%, which financial experts cite as the transition point between affordable and predatory debt.
Best for: Small financial emergencies – Upstart short-term relief loan
- APR
- Up to 36.00%
- Cheaper alternative to payday loans
- Money as soon as the next business day
- No fees for late payments or paying off loan early
- Low minimum credit score
- Can extend loan term up to five months with regular payments
- Can’t borrow more than $2,500
- No Android mobile app
Upstart’s short-term relief loan could help you cover a small financial emergency without breaking the bank.
Before you turn to a payday loan to cover a small unexpected expense, see if you qualify for a short-term relief loan with Upstart. Payday lenders often charge predatory rates in the triple digits, but Upstart only charges up to 36.00%. You can see how much you’d likely pay using Upstart’s repayment estimate calculator.
However, since Upstart’s short-term relief loans only go up to $2,500, you’d need to find another lender for a larger financial emergency.
Read our expert Upstart personal loan review.
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Income: Minimum annual income of $12,000; must have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
Best for: Fast funding — OneMain Financial
- APR
- 18.00% – 35.99%
California residents must borrow at least $3,000
- Money as soon as an hour after closing
- Also offers secured loans
- Very low credit score minimum
- Charges a one-time fee on every loan
OneMain has some of the quickest loans on the market and works with people who have bad credit.
If you need money fast, consider borrowing with OneMain Financial — you could see money in your bank account as soon as an hour after closing on your loan. OneMain’s credit score minimum is on the low end for bad credit loans, making them potentially more accessible than loans from other lenders.
But keep in mind that OneMain charges a one-time fee ($25 to $500, or 1.00% – 10.00%), and it’ll be taken from your loan money before it’s sent to you. As such, you’ll likely need to borrow more to make up for the charge.
Read our expert OneMain personal loan review.
OneMain Financial isn’t very transparent about its personal loan eligibility requirements, but it’s possible to qualify even with a credit score as low as 500. Before closing on a loan, you may need to provide:
- Government-issued identification (a state identification, driver’s license or passport)
- Proof of residence (a rental agreement or utility bill)
- Proof of income (pay stubs or tax returns)
OneMain loans are not available in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont, the District of Columbia or U.S. territories.
Best for: Better approval odds with a peer-to-peer loan – Prosper
- APR
- 8.99% – 35.99%
- Peer-to-peer loans (like those from Prosper) come with better approval odds than typical loans
- Better approval odds with a co-borrower
- Credit score minimum (560) on the high end of this list
- One-time fee of 1.00% – 9.99% on every loan
Peer-to-peer loans like Prosper’s are funded by individual investors (people) instead of banks or lenders — this can make them easier to get.
Peer-to-peer loans are typically easier to get than traditional personal loans, so it’s worth checking your rates with Prosper if you need a loan for bad credit. But Prosper also offers another way to boost your odds of approval — you can apply with a co-borrower. Co-borrowers with excellent credit can help you get a loan, or even qualify for lower rates.
But if you have very poor credit, Prosper loans may be out of reach — this lender requires a minimum score of 560.
Read our expert Prosper personal loan review.
To get a loan with Prosper, you must meet the following requirements:
- Age: Be 18 or older
- Administrative: Have a U.S. bank account and Social Security number
- Residency: Not live in Iowa or West Virginia
- Credit score: 560+
Best for: Credit-builder loans from local institution – Raiz Federal Credit Union
- APR
- Starting at 12.00%
- May qualify with bad credit even though Raiz doesn’t specify minimum credit score
- Low starting rates
- Build credit while covering small expenses
- Doesn’t publish a specific credit score requirement, maximum APR or minimum loan amount
- Loan term limited to 12months
- May hard-pull your credit when you apply
Raiz Federal Credit Union is a Texas-based credit union that offers credit-builder loans — they’re designed to help you improve your credit while borrowing a small amount of money.
Raiz offers credit-builder loans that can help you cover a small financial emergency while building your credit at the same time. And while most credit-builder loans don’t allow you to access your money until you’ve paid the loan back in full, Raiz lets you use your money while you’re still making payments.
But Raiz doesn’t publish as much information about its loans as competitors do, so it’s harder to predict your exact rate, loan amount or odds of approval. Further, while many other lenders allow you to check your rates and eligibility with no impact to your credit, Raiz may pull your credit when you fill out a form. This may cause your credit score to drop, typically by up to five points.
Raiz states that its credit-builder loans are for people with “low credit,” but it doesn’t publish a minimum credit score, income or other credit requirements. Learn more about typical personal loan eligibility requirements.
Average personal loan rates by credit tier
Average personal loan rates for bad credit are slightly higher in Texas than the national average, meaning your loan could cost a bit more in Texas than it would elsewhere.
| Credit tier | National average APR | Texas average APR |
|---|---|---|
| Excellent (800 and above) | 11.77% | 11.50% |
| Very good (740-799) | 14.74% | 14.51% |
| Good (670-739) | 22.72% | 23.06% |
| Fair (580-669) | 30.17% | 29.99% |
| Poor (Under 580) | 32.19% | 32.73% |
How to qualify for a loan in Texas if your credit is below 580
If you’re a Texan with bad credit, you’re not alone. The average credit score in Texas (695) is lower than the national average (715), according to data from Experian. Here’s how to boost your odds of approval:
-
Add a co-borrower
A co-borrower with good or excellent credit can help you qualify or even unlock lower rates, making your loan less expensive. -
Put up collateral
You can boost your odds of getting a loan by offering valuable collateral, like a car or savings account — this is called a secured loan. Still, keep in mind that you could lose your collateral if you don’t make on-time payments. -
Ask for less money.
A lender may not be willing to offer you the full amount that you need, but they could be willing to approve a small loan. Do some math to calculate the minimum amount you can borrow and try prequalifying again with the smaller number.
Texans with bad credit borrow significantly less — $10,630 on average — than the national average for people with bad credit ($11,606). However, the average amount borrowed across all credit scores is similar nationally ($16,189) and in Texas ($16,091). This suggests that smaller loans could be much more attainable for Texans with bad credit.
How to compare bad credit loan options
-
Prequalify
Many personal loan lenders let you prequalify for a personal loan, allowing you to check your rates and eligibility without any damage to your credit. Prequalify with several lenders, so you can compare the cost of the loan. -
Compare total cost of interest
Enter your loan offers into a personal loan calculator to estimate and compare the total cost of interest for each loan. -
Compare monthly payments
Choose the loan with the cheapest total cost of interest that has monthly payments you can afford. Create or reference a simple budget to make sure you can afford the monthly payments in your loan offers.
Why compare bad credit loans with LendingTree?
You’d shop around for your flight. Why not your loan? People could save an average of $1,659 by shopping for a loan on LendingTree and choosing the cheapest option. Here’s how it works.
One application, multiple lenders
Get offers from up to five trusted lenders when you submit a single form with LendingTree. It’ll take around two minutes to fill out.
Only soft credit check to prequalify
There’s no impact to your credit to see your potential offers and rates.
Transparent comparisons, vetted lenders
LendingTree will show you personalized offers from trusted lending partners if you qualify. Borrowers with bad credit who get at least one offer get 13 loan offers on average on the LendingTree platform.
Texas loan laws and borrower protections
Federal laws like the Equal Credit Opportunity Act and the Truth in Lending Act protect Texans against discrimination and deceptive loan practices. But while other states have statewide legislation to cap interest rates, or otherwise protect their residents, current Texas law doesn’t always effectively protect against predatory payday loans or car title loans.
This could be why it’s easier to get a loan in Texas than it is nationwide — Texans with bad credit were more likely to get at least one loan offer than the national average, according to LendingTree data from Q3 2025. Lenders that charge extremely high rates are more likely to offer loans to borrowers with bad credit, and these lenders can get around Texas’s rate caps.
It’s up to you to protect yourself against shady lenders. Take the time to compare multiple loan offers and understand the warning signs of predatory lending.
Alternatives to personal loans in Texas
Payday alternative loans are small, short-term loans offered by credit unions as an affordable alternative to payday loans. Google credit unions in your area and check their websites or call to ask if they offer payday alternative loans.
CDFIs are banks, credit unions and other financial institutions that commit to helping underserved communities meet their financial goals. Use the CDFI searchable database to find a CDFI near you.
Credit cards often come with higher rates than personal loans, so they can be a more expensive way to carry debt. But if you’re able to pay off the expense in full before your statement is due, you could use your current credit card to pay for an emergency financial expense interest-free.
Learn more about when to use a credit card or personal loan and how to pay off credit card debt.
If money is tight, you could use a paycheck advance app or ask your employer for a paycheck advance to make ends meet until your next paycheck.
Full-time workers should also consider asking for a raise in order to make room in their budgets — 82% of full-time workers who asked for a raise got one last year.
If none of these solutions work for you, consider the best personal loan alternatives. And if you still can’t afford to make ends meet? Consider using state-sponsored resources to get access to affordable food, housing and health care. You can call 2-1-1 or go to 211texas.org to find resources near you.
How to avoid predatory lenders in Texas
Predatory lenders are exactly what they sound like — shady loan companies charging extremely high rates that could land you in a cycle of debt. These lenders often target people with bad credit, so it’s important to be on the lookout for warning signs like:
- Triple-digit rates. You should be careful with rates above 36% — but when a lender charges rates in the three-digit range, take a big step back. The numbers may not look meaningful now (especially when you’re in a real financial bind), but rates this high could land you in truly insurmountable debt.
- Pressure to sign. If a representative uses your stress and concern against you to get you to close on the loan, walk away. High-pressure sales tactics are common with unscrupulous lenders.
- Hidden fees. When you read your loan agreement and notice fees that haven’t been mentioned or other language that doesn’t make sense to you, ask a lender representative to explain it.
The best thing you can do to avoid a loan scam is to research the lenders you’re considering. You can check out customer reviews on LendingTree, the Better Business Bureau, Trustpilot and Google to spot red flags before you sign any loan paperwork.
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Frequently asked questions
There’s no single easiest loan to get with bad credit, but Upstart has the lowest credit score requirement of the best lenders for bad credit in Texas.
You could get a personal loan with no credit check, but these loans often come with predatory rates in exchange for easy approval. Explore every personal loan alternative before looking into loans that don’t require a credit check.
OneMain Financial and Raiz Federal Credit Union are both direct lenders that offer loans to Texas residents, including those with bad credit.
How we chose the best bad credit personal loans in Texas
We reviewed more than 40 lenders and loan marketplaces to determine the overall best bad credit personal loans in Texas. To make this list, the company must offer personal loans in Texas and accept credit scores of less than 580 and/or say it works with poor-credit borrowers.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our standardized rating system, the best personal loans in Texas for bad credit come from: Upstart, OneMain Financial, Prosper and Raiz Federal Credit Union.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from companies through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.