Navigating the lending landscape with a less-than-stellar credit score can be challenging, but it is far from impossible. While “bad credit” typically means a FICO score below 580, many lenders specialize in offering personal loans to borrowers in this range. The key is knowing where to look and understanding the options—and trade-offs—involved.

Here is an overview of the best personal loan options and alternative strategies for borrowers with bad credit.

Understanding the Landscape: Higher Costs and Specific Lenders

The most significant reality for bad credit borrowers is that you will almost certainly face higher Annual Percentage Rates (APRs). Lenders view a low credit score as an increased risk, and they offset that risk by charging more interest. However, a personal installment loan is generally a much better option than high-cost products like payday or title loans.

The most competitive options for bad credit typically come from online lenders or …