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What is a bad credit personal loan? Bad credit personal loans are meant for borrowers who have credit scores less than 580. Because poor credit borrowers often become delinquent on their loans by making late payments or defaulting, larger banks are less likely to lend to people below this threshold.

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Compare $5,000 loans, even with bad credit. You have limited options when looking for a $5,000 loan with bad credit. Usually, short-term loans are your best bet.