How big of a loan can you get with bad credit?

Borrowers with less-than-ideal credit scores may wonder about their eligibility for loans and the potential loan amounts they can secure. While bad credit can present challenges in obtaining traditional loans, several factors influence the size of the loan available to individuals with poor credit:

1. Credit Score Impact:

Credit scores significantly impact loan eligibility and terms. Individuals with bad credit scores, typically below 600, may face limitations in accessing loans compared to those with higher credit scores.

Lenders may offer smaller loan amounts or impose higher interest rates and fees to offset the perceived risk associated with lending to individuals with poor credit.

2. Type of Loan:

The type of loan sought can affect the maximum loan amount available to borrowers with bad credit. For example:

Personal Loans: Individuals with bad credit may qualify for smaller personal loans, often ranging from a few hundred to a few thousand dollars, depending on the lender’s policies and the borrower’s financial situation.

Secured Loans: Secured loans, backed by collateral such as a vehicle or savings account, may allow borrowers to access larger loan amounts despite poor credit. The value of the collateral often determines the loan size.

Payday Loans: While not recommended due to their high interest rates and short repayment terms, individuals with bad credit may qualify for small payday loans, typically ranging from $100 to $1,000, depending on state regulations and loan companies no credit check near me policies.

3. Income and Debt-to-Income Ratio:

Lenders consider borrowers’ income and debt-to-income ratio (DTI) when determining loan amounts. A steady income and low DTI demonstrate the borrower’s ability to repay the loan, potentially increasing the available loan amount despite bad credit.

Borrowers with higher incomes and lower DTIs may qualify for larger loan amounts, even with bad credit, as lenders assess the borrower’s capacity to manage additional debt responsibly.

4. Co-Signer or Collateral:

Some lenders may offer larger loan amounts to individuals with bad credit if they apply with a creditworthy co-signer or provide valuable collateral to secure the loan. Co-signers or collateral provide additional assurance for lenders, potentially increasing the available loan amount despite the borrower’s credit history.

5. Comparison Shopping and Negotiation:

Borrowers with bad credit should compare loan offers from multiple lenders, considering interest rates, fees, and terms, to find the most favorable option.

Negotiation may also play a role in securing larger loan amounts or more favorable terms. Engaging in transparent communication with lenders and demonstrating financial stability and repayment capability can potentially result in improved loan offers.


While bad credit can limit loan options and loan amounts, individuals with poor credit can still access financing through various avenues. By understanding the factors influencing loan eligibility and loan size, borrowers can explore suitable loan options, compare offers, and potentially secure the necessary funds to meet their financial needs despite their credit challenges.