If you’re struggling to get a personal loan, consider applying with a cosigner or getting a secured loan.
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You’ll typically need good to excellent credit to qualify for the best personal loans. That means if you want the most lending options, the lowest rates, and the best loan terms, your FICO score should be 670 or higher.
But you’re not without options if you have a low credit score. Some lenders offer personal loans for bad credit. Some also allow you to apply with a cosigner, which can lower your interest rate or qualify you for loans that you otherwise would not be able to get.
Hey there, credit warriors! Let’s talk about the elephant in the room: your 550 credit score. It’s not the best, but don’t despair, my friend Even with a shaky credit history, you can still snag a loan.
Can I get a loan with a 550 credit score?
Yes you can! While it might be a bit trickier than borrowing with a stellar credit score, there are lenders out there who specialize in helping folks like you. However be prepared for higher interest rates and less favorable terms.
What kind of loan can I get with a 550 credit score?
Your options might be limited, but there are still some possibilities:
- Personal loans: Some lenders offer personal loans for borrowers with credit scores as low as 550. However, expect higher interest rates and shorter repayment terms.
- Secured loans: These loans are backed by collateral, like your car or house. This can help you qualify for a lower interest rate and better terms.
- Co-signed loans: If you have a friend or family member with good credit, they can co-sign your loan, making it easier to get approved.
- Credit union loans: Credit unions often have more flexible lending requirements than traditional banks, making them a good option for borrowers with bad credit.
How to improve your chances of getting a loan with a 550 credit score:
- Shop around: Compare rates and terms from different lenders to find the best deal.
- Improve your credit score: This is the best way to qualify for better loan terms. Pay your bills on time, reduce your debt, and avoid opening new credit accounts.
- Get a co-signer: This can help you qualify for a lower interest rate and better terms.
- Consider a secured loan: This can help you qualify for a lower interest rate and better terms.
Remember:
- Getting a loan with a 550 credit score is possible, but it will likely come with higher interest rates and less favorable terms.
- Improving your credit score is the best way to qualify for better loan terms.
- Shop around and compare offers from different lenders before you apply.
Bonus tip: Check out Bankrate for personalized loan recommendations and advice. They’ll help you find the best loan for your situation.
Notice: I’m not a financial counselor, so consider the advice I offer cautiously. Always do your own research before making any financial decisions.
How to get a personal loan with bad credit
If you’re ready to apply for a personal loan, follow these steps:
- Check your credit: To find out where you stand and which lenders are options, check your credit first. Many lenders have minimum credit score requirements. You can use a site like AnnualCreditReport. com to review your credit reports for free. If you discover mistakes, you can possibly raise your credit score by disputing them with the relevant credit bureaus.
- Recognize your needs: Find out how much you can afford to borrow each month and what your monthly payment needs are. Next, seek out lenders who both offer the loan amount you require and have a minimum credit score that is lower than yours. If that doesn’t yield many results, search for lenders who accept cosigners and locate a cosigner who is prepared to attest to your creditworthiness.
- Get an estimate of the annual percentage rates (APRs) and loan amounts you might be eligible for, as well as whether you’ll qualify for a personal loan at all, by prequalifying with the lenders you’ve selected from your short list. Your credit won’t be impacted by prequalification, but submitting an official personal loan application may cause it to drop, typically by five points or less for up to a year.
- When comparing lenders, take into account their APRs, terms of repayment, and other fees in addition to their credit requirements. Once you’ve compared personal loans, pick your favorite.
- Fill out the application: After selecting a lender, you must submit an application along with the necessary paperwork, which includes pay stubs and tax returns.
- Examine the loan agreement: If the loan is approved, go over the terms and sign if you agree with them. Make sure to look over the APR, fees, length of the repayment term, and the date of the first payment.
- Await your funds: Although some lenders allow loans to be funded the same day they are approved, it’s more likely that your loan will be funded the following business day or in a few business days.
Consider a credit-builder loan if you’re still having trouble qualifying. These loans are simpler to get approved for and can raise your credit score, making it easier for you to apply for and hopefully be accepted for a personal loan down the road.
How credit scores affect loan rates
When you apply for a personal loan, your credit score has a big impact on what APR you are eligible for. In general, the lower your credit score, the higher the rate you’ll likely pay.
Here’s how your credit score might impact the amount you pay for a $10,000 personal loan with a three-year term, for instance. Keep in mind that, in comparison to borrowers with bad credit, some borrowers with fair credit may pay nearly $1,300 less in interest.
| Credit Score | Average APR | Monthly Payment | Total Interest | Total Repayment Cost |
|---|---|---|---|---|
| 640-679 | 25.31% | $399 | $4,373 | $14,373 |
| 600-639 | 28.77% | $418 | $5,041 | $15,041 |
| 600 or below | 31.78% | $434 | $5,636 | $15,636 |
The interest rates that borrowers were given when they applied for a personal loan through Credible in September 2023 are the basis for calculating average annual percentage rates (APRs).
You can estimate how much you’ll pay for a loan using a personal loan calculator.
$20,000 PERSONAL LOANS | 550 CREDIT SCORE ACCEPTED
FAQ
How much can you borrow with 550 credit score?
|
Lender
|
Loan Amounts
|
APRs
|
|
Upstart
|
$1,000 – $50,000
|
6.4% – 35.99%
|
|
Oportun
|
$300 – $18,500
|
10.07% – 35.95%
|
|
OneMain Financial
|
$1,500 – $20,000
|
18% – 35.99%
|
|
RISE
|
$500 – $5,000
|
60% – 299%
|
How big of a loan can you get with 500 credit score?
|
Lender
|
Loan Amounts
|
APRs
|
|
Oportun
|
$300 – $18,500
|
10.07% – 35.95%
|
|
OneMain Financial
|
$1,500 – $20,000
|
18% – 35.99%
|
|
RISE
|
$500 – $5,000
|
60% – 299%
|
|
Jora Credit
|
$500 – $4,000
|
99% – 349%
|
What credit score do I need for a $5000 loan?
Is 550 a good credit score to buy a house?
Can I get a personal loan with a 550 credit score?
You can get a personal loan with a 550 credit score, but your choices are very limited. The best way to get a personal loan with a 550 credit score is to start by checking to see if you pre-qualify for loans from major lenders.
What does a 550 credit score mean?
A 550 credit score can affect whether you can borrow or not, how much you qualify for, the rates you are offered, the amount of time you can take to repay a loan, and whether you need to secure the loan or not. Still, there is a lot of confusion around what a credit score is, how it is calculated, and whether it is good or bad.
Do personal loans charge a higher rate for 550 credit scores?
Lenders usually charge a much higher rate for personal loans for 550 credit scores. It is up to you to decide if the terms being offered, if you qualify, make sense or not for your situation. The experience was very enjoyable I’ll I did was fill out the paperwork no hassle y’a
What is a low interest rate on a 550 credit score?
You have good credit and lock in a low interest rate of 11%. Your monthly payment would be $164, and your total interest costs would be $893. Now let’s look at the same loan amount and repayment term with a 550 credit score that qualifies you for an interest rate of 35%.