NEW YORK, September 26 — NerdWallet has updated its guide to home improvement loans for borrowers with bad credit, and the headline finding is straightforward: every lender on the list accepts a credit score of 600 or lower, and each scored at least four out of five in the site’s latest analysis of nearly 40 lenders. The guide, “Best Home Improvement Loans for Bad Credit,” was last updated September 23, 2026. It was written by Annie Millerbernd, co-written by Laura McMullen, and edited by Kim Lowe and two others.
The bottom line for borrowers: a home improvement loan is simply an unsecured personal loan, and while bad credit — defined in the piece as a score below 630 — narrows the field of lenders, NerdWallet says strong options remain. Tradeoffs are part of the deal.
Borrowers should expect higher fees and interest rates than those offered to borrowers with strong credit. Checking rates is free and does not impact a credit score.
Upstart: Best Overall
Upstart took the 2026 NerdWallet award and the “Best for home improvement loans overall” designation. It carries a 4.4 NerdWallet rating and a 4.5 borrower rating based on 229 borrower reviews. Its estimated APR range is 6.20% to 35.99%, loan amounts run from $1,000 to $75,000, there is no minimum credit score requirement, and repayment terms span three to seven years.
NerdWallet’s expert take credits Upstart with home improvement loans up to $75,000, fast funding and no minimum credit score requirement. Funds typically arrive in one day.
Upstart lends in all 50 states and Washington, D.C. It offers no rate discounts and no minimum income requirement, performs a soft credit check, and its loan uses include debt consolidation, credit card consolidation, home improvement, medical and dental expenses, emergency expenses such as car repair and vet bills, vacation, moving and relocation, wedding, funeral, business expenses, auto, motorcycle, RV and boat financing, other large purchases, bills and rent, family assistance, taxes and purchase of a personal vehicle.
Pros listed are no credit score requirement, a wide range of loan amounts and fast funding. Cons are an origination fee, only two repayment term options and no direct payment to creditors.
An AI summary of borrower reviews says most describe a fast, fully online experience, with many reporting approval and funding within 24 to 48 hours. The most common complaint is the interest rate, which several borrowers said came in higher than expected.
Prosper: Best for Joint Loans
Prosper is rated “Best for joint loans” with a 4.4 NerdWallet rating. Its estimated APR range is 8.99% to 35.99%, loan amounts run from $2,000 to $50,000, the minimum credit score is 560, and terms span two to six years. NerdWallet’s expert take notes Prosper allows two borrowers to apply together, boosting their chances of qualifying, and accepts all credit scores.
Funds typically arrive next-day. Prosper lends in all states and Washington, D.C. except Iowa, West Virginia and North Dakota.
It offers no rate discounts and no minimum income requirement, performs a soft credit check, and its loan uses include debt consolidation, credit card consolidation, home improvement, medical and dental expenses, emergency expenses such as car repair and vet bills, vacation, moving and relocation, wedding, funeral, auto, motorcycle, RV and boat financing and other large purchases. Pros are a lender with flexible credit requirements, joint loans, pre-qualification with a soft credit check and fast funding.
Cons are an origination fee, no co-signed or secured loans, no direct payment to creditors and no rate discounts.
Universal Credit: Best for Small Loans
Universal Credit is rated “Best for small loans” with a 4.3 NerdWallet rating. Its estimated APR range is 11.69% to 35.99%, loan amounts run from $1,000 to $50,000, the minimum credit score is 560, and terms span two to five years. NerdWallet’s expert take says that for small home repairs or renovations Universal Credit loans start at $1,000, that it accepts low credit scores and that it offers fast funding.
Funds typically arrive in one day. It lends in all states except Washington, D.C. It offers an AutoPay discount and a direct pay to creditors discount.
There is no minimum income requirement, it performs a soft credit check, and its loan uses include debt consolidation, credit card consolidation, home improvement, emergency expenses such as car repair and vet bills, vacation and moving and relocation.
Investors will note the pattern across all three lenders: origination fees are common, rate discounts are rare, and the APR ceilings all sit at or near 35.99%. The figure that matters for borrowers with damaged credit is the floor — 6.20% at Upstart, 8.99% at Prosper, 11.69%
