Having a credit score of 600 can make getting approved for a personal loan more challenging. While many lenders require scores of 640 or higher, there are still options for borrowers with lower credit. Online lenders tend to have more flexible credit requirements than banks and credit unions. With an online loan for 600 credit score borrowers, you can get funds deposited directly into your bank account quickly.
In this article, I’ll explain how online personal loans work and provide tips for getting approved. I’ll also recommend some of the top online lenders to consider if you need to borrow with poor credit.
What Are Online Personal Loans?
Online personal loans provide a lump sum of cash that you repay in fixed monthly payments over a set repayment term, They differ from loans offered by banks and credit unions in a few key ways
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Application Process – With an online lender, you can complete the entire application on their website or mobile app There’s no need to visit a branch
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Approval Time – Online lenders can approve applications in minutes or hours instead of weeks. Automated systems assess applications.
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Credit Requirements – Online lenders typically only require a minimum credit score between 550 and 600. So they approve more applicants with less-than-perfect credit.
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Interest Rates – Online loans generally have higher interest rates than those from banks. But for borrowers with poor credit, online loan rates can be competitive.
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Funding Speed – Approved borrowers can receive funds as soon as the next business day.
So online loans provide a faster, more accessible borrowing option. Just be sure to compare interest rates and fees across multiple lenders. Online loans aren’t one-size-fits-all.
Qualifying for an Online Loan With a 600 Credit Score
When applying for an online personal loan with 600 credit, the lender will assess:
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Your Credit Score – Most online lenders require minimum scores between 550 and 600. Some may approve borrowers with scores in the 500s.
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Your Income – Lenders want to see you have enough income to manage the loan payments. Many require minimum annual incomes of $20,000 to $40,000.
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Your Existing Debt – Lenders will review your credit report to see your current debt balances and payment history. Too much existing debt can lower approval odds.
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Your Debt-to-Income Ratio – Your DTI compares your monthly debt payments to your gross monthly income. Most lenders cap DTIs between 35% and 50%.
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Collateral – Some lenders offer secured loans backed by an asset you own, like your car or savings account. This can help boost approval chances.
Ideally, you’ll want as high of a credit score as possible, sufficient income, and a low DTI to qualify. Adding a cosigner with better credit may also help.
7 Tips for Getting Approved for an Online Loan With 600 Credit
If your credit score is 600, here are some tips that can better your chances of getting approved:
1. Check your credit reports – Make sure there are no errors dragging down your scores. Dispute any inaccuracies with the credit bureaus.
2. Pay down revolving balances – Lowering credit card balances can immediately boost your score if you have high utilization.
3. Become an authorized user – Ask a friend or family member with good credit to add you as an authorized user to their credit card. Their positive history can help offset negatives on your own reports.
4. Provide explanation for negatives – If you have late payments or collections accounts on your reports, be prepared to explain the circumstances to the lender.
5. Apply with a cosigner – Adding a cosigner with a higher score and income makes approval more likely. Just know they’ll be equally responsible for repaying the loan.
6. Opt for a secured loan – Secured loans require you to pledge a savings account or asset as collateral. They’re easier to qualify for but put your collateral at risk.
7. Provide proof of income – Lenders want to verify you have sufficient income to manage the payments. Provide recent paystubs, tax returns, and bank statements when applying.
With some preparation, it’s possible to get approved for an online personal loan with a 600 credit score. Just shop around for the best rates and terms.
Top Online Lenders for 600 Credit Score Borrowers
I compared over two dozen online lenders and narrowed down the top recommendations for borrowers with 600 credit based on approval requirements, interest rates, fees, loan amounts, repayment terms, funding speed and customer reviews.
LendingPoint – Best for Low Minimum Credit Score
- Minimum Credit Score: 580
- APR Range: 7.99% to 35.99%
- Loan Amounts: $2,000 to $36,500
- Loan Terms: 2 to 6 years
- Fast 1 business day funding
LendingPoint stands out for having one of the lowest minimum credit scores among major online lenders at just 580. They offer both unsecured personal loans and loans secured by collateral. While their maximum APR is on the high side, they’re a flexible option for borrowers with low credit scores.
Upgrade – Best forcosigners
- Minimum Credit Score: 560
- APR Range: 7.99% to 35.99%
- Loan Amounts: $1,000 to $50,000
- Loan Terms: 2 to 7 years
- Allows cosigners
Upgrade makes their personal loans available in all states and allows cosigners on loans to help applicants with poor credit improve their chances of approval. They provide both unsecured loans and secured loan options. Upgrade offers quick funding as soon as the next business day after approval.
Avant – Best for flexible repayment terms
- Minimum Credit Score: 580
- APR Range: 9.95% to 35.99%
- Loan Amounts: $2,000 to $35,000
- Loan Terms: 2 to 5 years
Avant stands out for offering flexible repayment terms of 2 to 5 years on their loans. Their minimum credit score requirement is just 580, so they are accessible to more borrowers with poor credit. Avant charges an administration fee up to 4.75% deducted from the loan proceeds.
Best Egg – Best for high loan amounts
- Minimum Credit Score: 600
- APR Range: 5.99% to 29.99%
- Loan Amounts: $2,000 to $50,000
- Loan Terms: 3 to 5 years
Best Egg offers higher maximum loan amounts of up to $50,000, making them a solid pick for borrowing larger amounts with a 600 credit score. Their minimum credit score requirement is 600. Rates start lower than some competitors but borrowers with poor credit will end up in their higher range.
OneMain Financial – Best for fast funding
- Minimum Credit Score: None
- APR Range: 18.00% to 35.99%
- Loan Amounts: $1,500 to $20,000
- Loan Terms: 2 to 5 years
OneMain Financial provides the fastest access to funds of any major online lender. Applicants can walk out of a branch with loan funds the same day. OneMain considers factors beyond your credit score and doesn’t disclose a minimum score. If speed is essential, they’re worth considering.
Be sure to compare loan costs across multiple lenders to find the best rate for your situation. Prequalifying without affecting your credit is a smart way to explore options.
What is the Easiest Online Loan to Get Approved For?
For borrowers with 600 credit, the easiest online loans to get approved for are:
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Secured loans – Since they are backed by collateral you pledge, secured loans are easier to qualify for. Just be sure you don’t mind putting up your asset.
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Loans with cosigners – Adding a cosigner with better credit helps compensate for blemishes on your own credit history.
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Lenders with low credit requirements – Seek out lenders like LendingPoint and Avant that offer loans with minimum requirements of 580 credit score.
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Direct lenders – Applying directly with a lender can make approval faster compared to going through a marketplace.
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Lenders you have a relationship with – Some online lenders may approve you more easily if you already have a credit card or other account with them.
While they come with higher rates, bad credit loans specifically designed for borrowers with poor credit also tend to be easier to qualify for.
What is the Lowest Interest Rate on a Personal Loan with 600 Credit?
For borrowers with 600 credit, here are sample interest rates from online lenders:
- LendingPoint: 7.99% to 35.99% APR
- Avant: 9.95% to 35.99% APR
- Upgrade: 7.49% to 35.99% APR
- Best Egg: 5.99% to 29.99% APR
The lowest interest rate you can qualify for will depend on factors such as your income, existing debt level
Best for borrowing smaller loan amounts
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Annual Percentage Rate (APR)
8.49% – 35.99%
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Loan purpose
Debt consolidation/refinancing, home improvement, major purchase
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Loan amounts
$1,000 to $50,000
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Terms
24 to 84* months
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Credit needed
Fair, good to excellent
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Origination fee
1.85% to 9.99%, deducted from loan proceeds
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Early payoff penalty
None
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Late fee
Up to $10 (with 15-day grace period)
- No early payoff fees
- Loans up to $50,000
- Fixed interest rates (no surprises)
- Can pay creditors directly (may take up to two weeks)
- Fast funding in as little as four days
- Origination fee of up to 8% (deducted from your loan)
- Not available in Washington D.C.
Why Upgrade is the best for financial literacy:
- Free credit score simulator to help you visualize how different scenarios and actions may impact your credit
- Charts that track your trends and credit health over time, helping you understand how certain financial choices affect your credit score
- Ability to sign up for free credit monitoring and weekly VantageScore updates
Whos this for? Upgrade typically looks at borrowers who have fair or good credit. With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780.
Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000). The $1,000 minimum makes the loan feel a little more digestible for those who dont need to borrow too much money. This is especially important because its generally best to only apply for what youll need since borrowing more will result in higher monthly payments.
Also keep in mind that Upgrade personal loans have an origination fee of up to 9.99%, which is deducted directly from your loan proceeds. So, if you know youll need $1,000, you should account for the origination fee and apply for a loan amount closer to $1,080 to cover all your bases.
Upgrade doesnt have any prepayment penalties, but it does have a late fee: If you pay late or miss a payment, you could be hit with a $10 late fee if your payment is not received in full within 15 calendar days of the due date.
Otherwise, these loans are fast and easy to secure, and the funds should arrive in your checking account within one business day of submitting the required documents and being approved.
Our top picks of timely offers from our partners
If your credit score is less than ideal, you may feel like you face additional challenges when it comes to accessing good financial products, like the best credit cards or the best personal loans. However, there are a few lenders that actually cater to applicants with lower credit scores in the poor/fair range (669 and below for the FICO® Score model, and 660 and below for the VantageScore® model) to help them borrow money for emergency expenses, a medical bill, debt consolidation and other financing needs.
Below, CNBC Select rounded up five of the best personal loan lenders that still accept applicants who have credit scores below 670. We looked at fees, interest rates and flexible repayment options for different credit scores. (You can read more about our methodology below.)
In the meantime, remember that if you are applying for loans — or any line of credit — with a lower credit score, you are likely to receive higher interest rates because lenders will see you as more of a “riskier” borrower. Its important to compare rates with different lenders and do your homework before signing on the dotted line to make sure youre comfortable with your new loan terms.
Loans for Below 600 Credit Score
FAQ
Can I borrow money with a 600 credit score?
How much can you get approved for with a 600 credit score?
What credit score do I need for a $5000 loan?
Can I get a loan with a 621 credit score?
Can you get a personal loan with a 600 credit score?
Some lenders set their minimum credit scores at or below 600. This means you may qualify for a personal loan with a 600 credit score, but meeting the minimum requirements doesn’t mean you’ll qualify. Standing out in other ways — like having an exceptionally high income or low debt — may improve your chances of getting a loan.
What credit score do you need to get a personal loan?
In general, your personal loan choices are limited with a credit score of 600, as it’s in the bad credit range. Personal loan credit score requirements tend to be anywhere from 580 to 700+, with many of the best loans overall requiring a credit score of 660 or higher. Ways to Get a Personal Loan With a 600 Credit Score See if you get pre-qualified
How much money can you borrow with a 600 credit score?
You can borrow anywhere from a few thousand dollars up to about $50,000 with a 600 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
Are avant personal loans good for a 600 credit score?
Avant offers some of the best personal loans for a 600 credit score because they have relatively large loan amounts and long payoff periods, along with a reasonable maximum APR. That said, the minimum credit score is 580, so you may want to wait until you’ve improved your score a little more before applying. Key Facts About Avant Personal Loans: