Having a credit score of 590 can make getting approved for a personal loan more challenging but it is still possible with the right lender. As someone with a 590 credit score, I learned first-hand how to navigate the personal loan process and get approved despite having less-than-perfect credit. In this article, I’ll share my tips and experiences to help you understand your options and boost your chances of successfully qualifying for the funds you need.
What Does a 590 Credit Score Mean?
Before diving into loan options, let’s review what a 590 credit score represents. FICO and VantageScore two of the most widely used scoring models, classify this as a “fair” credit score. It falls below the “good” credit range of 670-739 and indicates you may have some past credit troubles like missed payments or collections accounts. Lenders consider borrowers with scores in the fair range riskier applicants.
While a 590 credit score makes approval from traditional lenders like banks unlikely, you still have a shot with specialized online lenders and credit unions. The key is finding a lender that extends credit to subprime borrowers. Going this route often means accepting higher interest rates to offset the risk, but it beats not being able to get a loan at all or resorting to predatory lending.
How I Got a $15,000 Personal Loan with a 592 Credit Score
When I found myself in need of a personal loan a few years ago, I wasn’t sure where to start. My credit score hovered around 592 and I had almost no savings due to unexpected medical bills. I needed about $15000 to consolidate credit card debt that was drowning me in interest payments.
Through my research, I learned online lenders tend to offer personal loans to borrowers with credit scores as low as 580 or so. I applied with LendingClub, Upstart, and Prosper. Upstart declined my application, but I received offers from LendingClub and Prosper.
LendingClub approved me for a 3-year, $15,000 loan at an APR of 21.07%. Prosper offered a 5-year loan for the same amount at an APR of 20.14%. I decided to go with the Prosper loan to benefit from the lower APR and longer repayment term.
My 592 credit score qualified me for an expensive loan, but it got me the funds I desperately needed. I set up automatic payments to ensure I never missed one and improved my credit utilization. Within two years of taking out the loan, my score climbed above 650!
Factors That Impact Approval Odds with a 590 Credit Score
As my experience shows, your precise credit score isn’t the only thing lenders look at when reviewing your application. Here are some other key factors that affect your chances of getting approved for a personal loan with fair credit:
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Income – Most lenders require a minimum annual income, often around $20,000. The more you make, the better. A healthy debt-to-income ratio of 36% or less also helps.
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Employment – Lenders want proof you have steady income coming in, so full-time and salaried positions are ideal. Length of employment often matters too.
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Existing debts – Too many outstanding debts reduce how much lenders are willing to trust you with additional financing. Keep credit utilization below 30%.
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Credit history – A short credit history provides less data for lenders to evaluate. Having several years of established accounts on your reports helps build trust.
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Collateral – Some lenders may require you to put up an asset, like your car or savings account, to secure the loan. This lowers their risk and can help you get approved with bad credit.
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Down payment – Similarly, some lenders may approve you if you pay 10-20% of the loan amount upfront to reduce how much you borrow.
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Cosigner – Adding a cosigner with good credit essentially piggybacks on their creditworthiness. Just know they become equally responsible for repaying the loan.
Top Lenders for 590 Credit Score Personal Loans
Based on my experience and research, here are some top lenders to consider for personal loans when your credit score is around 590. I’ve included key details like minimum credit requirements and loan amounts to help you identify your best options.
LendingClub
- Minimum credit score: 600
- Loan amounts: $1,000 – $40,000
- Loan terms: 3 or 5 years
- Origination fee: 3-6% of loan amount
- APR range: 8.05%-35.89%
Prosper
- Minimum credit score: 640
- Loan amounts: $2,000 – $40,000
- Loan terms: 3 or 5 years
- Origination fee: 2.41%-5% of loan amount
- APR range: 6.95%-35.99%
Upstart
- Minimum credit score: 580
- Loan amounts: $1,000 – $50,000
- Loan terms: 3 or 5 years
- Origination fee: 1%-8% of loan amount
- APR range: 7.69%-35.99%
Avant
- Minimum credit score: 580
- Loan amounts: $2,000 – $35,000
- Loan terms: 2 – 5 years
- Origination fee: 4.75%
- APR range: 9.95%-35.99%
LendingPoint
- Minimum credit score: 585
- Loan amounts: $2,000 – $36,500
- Loan terms: 2 – 4 years
- Origination fee: 0%-6% of loan amount
- APR range: 15.49%-35.99%
I’d recommend getting personalized rate quotes from a few lenders before applying since every situation is different. This allows you to compare all costs and terms. Resources like Acorn Finance let you check personalized loan offers from multiple lenders at once without affecting your credit score.
5 Tips for Getting a Personal Loan with a 590 Credit Score
If your credit score is around 590 and you need funds for an important expense, here are my top 5 tips for getting approved for a personal loan:
1. Shop with subprime lenders – Focus on specialized lenders like LendingClub, Prosper, and Avant that offer bad credit personal loans. Avoid big banks that only accept applicants with good credit.
2. Provide documentation – Have proof of income, employment, and legal residency ready. Pay stubs, tax returns, and utility bills can help verify details.
3. Consider alternatives – If you get denied, ask if a cosigner, collateral, or down payment would get you approved. Even small adjustments can make a difference.
4. Compare many lenders – Don’t just apply with one. Submitting multiple applications lowers your chances versus checking rates across lenders first.
5. Boost your credit – If possible, spend a few months prior to applying working to increase your score. This opens up more affordable loan options.
With the right lender, getting approved for a personal loan with a fair credit score is doable. Just make sure to carefully compare loan options as the fees and rates will likely be higher than borrowers with good credit receive. If you stay on top of payments and pay off the loan responsibly, it can actually help rebuild and improve your credit.
Common Personal Loan Uses for Borrowers with 590 Credit Scores
Personal loans provide funding for all sorts of purposes. Here are some of the most popular uses I’ve seen among borrowers with credit scores around 590:
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Debt consolidation – Combine multiple high-interest debts into one manageable payment. This simplifies bills and can potentially save on interest charges.
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Emergencies – Cover unexpected expenses like medical bills, home repairs, car trouble, etc.
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Major purchases – Finance large planned expenses like a wedding, moving costs, or travel.
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Credit building – Taking out an installment loan you repay on-time helps demonstrate creditworthiness.
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Business funding – Access capital needed to start or grow a small business venture.
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Home improvements – Make upgrades like remodeling a kitchen or bathroom more affordable.
The flexibility and convenience of personal loans make them useful for bridging budget gaps. Just be sure to borrow only what you can reasonably afford to repay.
What to Expect with a Personal Loan for 590 Credit Score
Compared to applicants with higher scores, here’s what you can generally expect when taking out a personal loan with a credit score around 590:
- **Higher
Best personal loan lenders for a credit score of 580 or lower
When searching for a personal loan, it can be helpful to compare several different offers to find the best interest rate and payment terms for your needs. With this comparison tool, youll just need to answer a handful of questions for Even Financial to determine the top offers for you. The service is free, secure and does not affect your credit score.
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Best for people without a credit history
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Annual Percentage Rate (APR)
7.8% – 35.99%
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Loan purpose
Debt consolidation, credit card refinancing, wedding, moving or medical
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Loan amounts
$1,000 to $50,000
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Terms
36 and 60 months
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Credit needed
Credit score of 300 on at least one credit report (but will accept applicants whose credit history is so insufficient they dont have a credit score)
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Origination fee
0% to 12% of the target amount
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Early payoff penalty
None
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Late fee
The greater of 5% of last amount due or $15, whichever is greater
- Open to borrowers with fair credit (minimum 300 score)
- Will accept applicants who have insufficient credit history and dont have a credit score
- No early payoff fees
- 99% of personal loan funds are sent the next business day after completing required paperwork before 5 p.m. Monday through Friday
- High late fees
- Origination fee of 0% to 10% of the target amount (automatically withheld from the loan before its delivered to you)
- $10 fee to request paper copies of loan agreement (no fee for eSigned virtual copies)
- Must have a Social Security number
Whos this for? According to Upstarts website, applicants with a credit history should apply with a minimum credit score of 300 (though, Upstart also accepts applicants with no credit history). Sometimes, a potential borrower may have a low credit score because they have extremely limited credit activity. Other times, a lack of credit history may result in them having no credit score at all. Just keep in mind that if youre approved for the loan with a lower (or no) credit score, you may be subject to a higher interest rate.
You can apply for loan amounts as low as $1,000 and as much as $50,000. And while there are no penalties for paying off your balance early, Upstart does charge an origination fee (up to 12% of the amount you borrow) and late fees ($15 or 5% of the past due balance, whichever is greater).
When it comes to repaying the balance, loan terms range from 36 to 60 months, which can be appealing to borrowers who think they may need a longer time horizon to repay the entire loan.
$50,000 Personal Loan | 300 Credit Score Approved ✅ Soft Pull Pre approval Bad Credit OK Loans
FAQ
Can I get approved for a loan with a 590 credit score?
What credit score is needed for a $5000 loan?
What is the lowest credit score for a personal loan?
What type of credit would you have with a score of 590?
Can I get a personal loan with a 590 credit score?
Personal loans for 590 credit scores are available, but you may have to look a little harder. FICO scores ranging from 580 to 669 are considered “fair.” With a 590 score you are barely in the fair category. If you can boost your score a little higher before taking a loan it can increase the likelihood of qualifying.
What does a 590 credit score mean?
A 590 credit score can be a sign of past credit difficulties or a lack of credit history. Whether you’re looking for a personal loan, a mortgage or a credit card, credit scores in this range can make it challenging to get approved for unsecured credit, which doesn’t require collateral or a security deposit.
How do I improve a 590 credit score?
The best approach to improving a 590 credit score is to check the Credit Analysis page of your free WalletHub account. This will tell you what problem areas to focus on and how to correct them.
What credit score do unsecured personal loans require?
Unsecured personal loans often require a credit score of 660+, and some are only available to people with scores of 700+. Some unsecured personal loans are available to people with lower credit scores, but you have to watch out for predatory interest rates.