Can I Get a Loan With a 640 Credit Score? Everything You Need to Know

Having a 640 credit score puts you in the fair credit range, which means you may have a harder time qualifying for loans compared to borrowers with good or excellent credit. However, you can still get approved for a personal loan with a 640 FICO score if you know where to look. In this comprehensive guide, we’ll explain what a 640 credit score means, your loan options, how to get approved, and tips for improving your score.

What Does a 640 Credit Score Mean?

Your credit score falls on a range from 300 to 850. According to FICO, the most commonly used credit scoring model a score between 640 and 699 is considered fair. This means you’re a moderate credit risk to lenders.

While a 640 credit score is not ideal, it’s still considered prime by some lenders The advantages of a 640 credit score include

• More likely to qualify for a loan than with a poor credit score (below 580)
• Decent chance of approval for credit cards and personal loans
• Usually eligible for better rates than subprime borrowers

The drawbacks include:

• Higher interest rates than borrowers with good credit
• Smaller loan amounts and higher fees
• Difficulty qualifying for the lowest rates

Overall, a credit score of 640 gives you access to more credit products than bad credit, but fewer options than those with excellent scores. You can still get approved, but expect to pay more compared to applicants with 700+ scores.

Can I Get a Personal Loan with a 640 Credit Score?

The good news is yes, you can qualify for a personal loan with a FICO score of 640. Here are some top lenders to consider:

Prosper – This peer-to-peer lender offers personal loans up to $40,000 for borrowers with 640+ credit. No origination fee.

LendingClub – Personal loans up to $40,000 available for 640+ credit scores. No origination fees.

Best Egg – Personal loans up to $35,000 for 640+ credit. No origination fees.

OneMain Financial – Personal loans up to $20,000 available for 640+ credit scores. Watch out for origination fees.

Upgrade – Personal loans up to $50,000 available for 640+ credit score borrowers. No origination fees.

While a 640 credit score meets the minimum requirements for these lenders, approval is not guaranteed. The lender will look at your full credit profile, income, expenses, and other factors when making a decision.

Using a cosigner with a higher score can improve your chances of approval and get you a lower interest rate.

What Credit Score Is Needed for a Personal Loan?

Here are the typical minimum credit scores needed to qualify for a personal loan from major lenders:

• Excellent credit (720+): 3% – 10% APR
• Good credit (680-719): 6% – 15% APR
• Fair credit (640-679): 10% – 25% APR
• Poor/Bad credit (below 640): Usually not qualified

As you can see, the higher your credit score, the lower your interest rate. For the best terms, aim for a score above 720. But even with a 640 FICO, you can qualify for a personal loan to meet your financial needs.

How to Improve Your Chances of Approval

Follow these tips to boost your odds of getting approved for a 640 credit score personal loan:

Lower credit utilization – Keep balances low on credit cards and other revolving credit. High utilization can negatively impact your score.

Pay down debts – The lower your debt-to-income ratio, the better. Pay down cards and loans to free up monthly obligations.

Check for errors on credit reports – Errors on your credit reports could be dragging down your score. Dispute any inaccuracies with the bureaus.

Become an authorized user – If you have a family member with good credit, see if they’ll add you as an authorized user on a credit card. This can help build your score.

Use a cosigner – Adding a cosigner with a higher score can get you better loan terms. Make sure they understand the risk of cosigning before agreeing.

Compare lenders – Check rates from multiple lenders. Each uses different credit models, so one may approve you when another doesn’t.

Improve other factors – Income, assets, job history, and down payment also impact approval odds. Bolster your application by improving these areas.

With some work, you can set yourself up for loan approval even with less-than-perfect credit.

How Much Can I Borrow with a 640 Credit Score?

The amount you can borrow with a 640 credit score depends on several factors:

• The lender’s minimum and maximum limits
• Your income and expenses
• Existing debts and obligations
• Collateral offered (for secured loans)

Here are typical loan amounts available for 640 credit from popular lenders:

• OneMain Financial: $1,500 – $20,000
• Best Egg: $2,000 – $35,000
• Upgrade: $1,000 – $50,000
• Lending Club: $1,000 – $40,000
• Prosper: $2,000 – $40,000

Higher credit scores qualify for larger loans. With excellent credit (720+), you may borrow between $10,000 up to $100,000.

Get pre-qualified to see personalized loan offers without affecting your credit score. This can give you an idea of what loan amounts and terms you may qualify for.

What Are the Interest Rates on 640 Credit Score Loans?

With a 640 credit score, expect higher interest rates compared to someone with excellent or good credit. Here are some average 640 credit score personal loan interest rates:

• Best Egg: 8.99% – 35.99% APR
• OneMain Financial: 18.00% – 35.99% APR
• Upgrade: 7.99% – 35.97% APR
• LendingClub: 10.68% – 35.89% APR
• Prosper: 6.95% – 35.99% APR

These rates are just estimates. The interest rate you actually receive depends on your full credit profile, requested loan amount, monthly income, debt-to-income ratio, and other factors.

Getting pre-qualified allows you to view personalized rates from multiple lenders without impacting your score. This can give you an idea of what rates you may qualify for.

Tips for Getting a 640 Credit Score Personal Loan

If you need money fast, here are some tips to improve approval odds on a personal loan with a 640 credit score:

Shop lenders that work with fair credit – Stick to lenders that specifically approve 640 credit scores, like Upgrade, OneMain, and LendingClub. Credit unions are also an option.

Get pre-qualified first – Pre-qualification shows loan amounts, rates, and chances of approval before formally applying.

Only apply for what you need – Don’t apply for the maximum loan amount if you don’t need it. Borrow only what you can afford to repay.

Have a down payment, if required – Some lenders require a down payment for borrowers with lower scores. Save up to cover this cost.

Lower credit utilization – Keep card balances under 30% of the credit limit before applying. High balances can negatively impact your score.

Check your credit reports – Make sure there are no errors dragging down your score. Dispute any inaccurate information.

Consider using a cosigner – Adding a cosigner with good/excellent credit can help you qualify and get better rates.

Prepare documentation – Have pay stubs, tax returns, and bank statements handy when applying to verify income and assets.

With some preparation and research, getting approved for a personal loan with a 640 FICO score is very feasible.

What’s the Easiest Loan to Get Approved For with Bad Credit?

If your credit score is below 640, qualifying for financing may be challenging. However, here are some of the easiest loan options for bad credit borrowing:

• Payday loans – Small, short-term loans of $500 or less. Very easy to qualify but extremely high rates.

• Pawn shop loans – Borrow against an item of value temporarily. Just hand over collateral.

• Cosigned loans – Qualify for better rates when a creditworthy cosigner applies with you.

• Secured loans – Allow you to borrow using collateral like your car title, cash, or savings account.

• Credit builder loans – Special loans designed to help improve your credit when paid on-time.

• Subprime lenders – Specialize in lending to borrowers with bad credit. Higher fees and rates though.

• Peer-to-peer loans – Get loans from individual investors. Credit requirements may be easier to meet.

• 401k/life insurance loans – Borrow against