Personal loans for people with damaged credit are often sold as a fix for card debt or a sudden bill. Sometimes they are one. Often they cost more than they look, because the rate you’re offered with a low score is higher than the averages in the ads and fees are taken out up front. These guides walk through the real costs, with figures from Federal Reserve data and guidance from the Consumer Financial Protection Bureau.
Guides
- Debt Consolidation Loans for Bad Credit: how consolidation works, who it helps and who it hurts, a worked $8,000 example, and the alternatives to try first
Run the numbers first
- Credit Card Payoff Calculator: what your current card balances cost to pay off, before you compare any loan offer
- Debt Snowball & Avalanche Calculator: a payoff plan that doesn’t involve new borrowing
- Average credit card APR: the current Federal Reserve figures, updated automatically
Some credit unions report a small loan called a payday alternative loan. It is not a storefront payday loan. In the first half of 2026 they reported 168,180 of them, about $1,058 on average. Counts by state come from the NCUA call report.
For where bank averages stand, the Federal Reserve figures for 24-month personal loans, cards and new auto loans are on our data page. They are averages, not quotes, and they do not describe what a low score is offered.
If anything here looks wrong or out of date, tell us.