Loan Reviews

Best Personal Loan for Low Income 2020

EPF Last Update: September 23, 2020

People with a low income have to be careful with loans. If you have a low income, there is a risk of not paying the loan on time, which can lead to problems like late fees, bankruptcy, marks on your credit file that will stay there for up to 10 years, and other problems.

Best loans for people with a low income are personal loans. These are the loans that have an APR of up to 35.99% and offer up to $100,000. If you have a low income, stay away from payday loans and auto title loans. They are predatory. These lenders typically say things like: no credit ‒ no problem, bad financial situation ‒ no problem. They target people with a low income, but this is exactly what you have to avoid. Payday loans come with an APR of about 400% and a risk of getting into a debt cycle.

People with low incomes have a high risk of falling into a debt cycle. This means that if you don’t pay the amount on time, you will be required to pay only its interest on the next payday, which is about $30 for every $100 for per month. However, this won’t lower the principal amount and the process will continue until you find the money to pay the amount in full.

Here is a list of the best personal loan companies that can help people with a low income.


Upgrade is a great company because they offer help to people who have lost their jobs. But unfortunately, they can’t help you if you have a really bad credit score and you are in a bad financial situation. They have two requirements: a 600 minimum credit score and at least $1,000 of free cash flow after monthly expenses. However, if you meet these criteria, you definitely have to check what they have to offer.

Upgrade Disclaimer:Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s lending partners. Information on Upgrade’s lending partners can be found at

Loan amounts$1,000 – $35,000
Typical APR7.99% – 35.97%
Min Credit Score600
Time to funding1 Day
Loan terms3 – 5 years
Origination fee2.9% – 8%
Debt-to-income ratio40%


Upstart is a company that will evaluate many additional factors like your education, for example. Even if you have a low income, you can try applying. A minimum credit score of 600 and at least $12,000 in annual income are required, but if you meet these requirements, you can get great offers from them.

Loan amounts$1,000 – $50,000
Typical APR8.16% – 35.99%
Min Credit Score620
Time to funding1 – Days
Loan terms3 – 5 Years
Origination fee0% – 8%
Debt-to-income ratio45%


PersonalLoans is a company that can be very helpful. They have clear credit score and loan income requirements on their site. A credit score of 580 and an income of at least $1,000 a month are enough for you to get a loan.

Loan amounts$1,000 – $35,000
Typical APR5.99% – 35.99%
Min Credit Score580
Time to funding1 Day
Loan terms90 days – 72 months
Origination fee1 – 5%
Debt-to-income ratioN/A

What Valuable Tips Can We Give to People with Low Income?

People with a low income are a great target for loan sharks because a day may come when they will not be able to make a loan payment. That is why we recommend that you carefully check loan flexibility factors. These are things like late fee penalties, refinancing options, and so on. Carefully discuss with your lender what will happen if you don’t make a payment. Some companies offer great options like skipping a payment, which you can easily do online with a single click of a button, no late fees applied. On the other hand, there are companies that don’t offer flexible loan options, and we recommend that you skip them. Nothing is free! Flexibility can lead to a slightly higher APR, but the choice of APR vs flexibility is yours.

Make sure that you read the contract carefully and that you can pay the loan on time. With a payday loan, not paying it will lead to a debt cycle. With personal loans, there will problems, but not nearly as serious as with payday loans.

Work on your credit score and improve your overall financial situation. There are many things that you can do to improve your financial situation. Below we will list a few great ways to make and save money online.

Shop around

We have listed a few companies that can help people with a low income to get a loan. However, the best way is to shop around. Apply for many companies and compare offers.

Try to avoid getting a loan.

We have a list of tips that will help you avoid taking out a loan.


Getting a loan is possible with a low income, but we recommend you to try other options. Carefully discuss all refinance options and make sure that you can pay everything on time. We recommend that you get a loan only as your final resort because there is a risk that you won’t be able to pay it off. By all costs, avoid payday loans and auto title loans.

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