Section 8 Assist
Resources

Credit Score Under 600? Get A Loan Here

A low credit score does not mean you cannot get a personal loan of up to $50,000 for emergency expenses and other purposes. Here are multiple lenders that offer bad credit loans.

Did you know that you are entitled to one free annual credit report? If so, and you haven’t taken advantage of it, that’s probably because you are afraid to see your score. Well, while missed and late payments can lead to a low credit score, you should still check your annual report for errors to get them removed. Plus, it’s always good to know where you stand so you can start taking measures to increase your credit score.

How can a low credit score impact you? In several ways, such as:

  • Making it harder to get a credit card or loan.
  • Higher interest rates if you do get approved for credit cards or loans.
  • Trouble renting an apartment or getting a mortgage.
  • Issues passing a background check at a job interview.
  • Expensive car loans.
  • And more.

While getting errors removed from your credit report, paying off creditors, etc., can boost your credit score, you may need cash now. And even if your credit score is in the “bad” category since it sits in the 550-629 FICO range, you’ll be glad to know that you can get cash now via a personal loan.

Lenders For Bad Credit Borrowers

A personal loan is an unsecured loan that offers fast approval, quick funding, and an easy – usually online – application process. What’s the disadvantage to getting a personal loan with bad credit? A high APR or interest rate that can reach 36 percent.

While that high interest rate will make the cost of borrowing more expensive, you may have no choice if you need cash quickly to pay off past-due bills or emergency expenses. Here are bad credit lenders who may be willing to work with you:

OneMain Financial

  • 600 minimum credit score
  • 18.00-35.99% APR
  • $1,500-$20,000 personal loans

Seed

  • 520 minimum credit score
  • 7.42-29.99% APR
  • $1,200-$7,000 personal loans

Universal Credit

  • 560 minimum credit score
  • 8.93-35.43% APR
  • $1,000-$50,000 personal loans

Upstart

  • No minimum credit score
  • 5.42-35.99% APR
  • $1,000-$50,000 personal loans

Upgrade

  • 560 minimum credit score
  • 5.44-35.47% APR
  • $1,000-$50,000 personal loans

LendingClub

  • 600 minimum credit score
  • 6.34-35.89% APR
  • $1,000-$40,000 personal loans

It’s worth noting that you could also get a personal loan with bad credit if you are a credit union or bank member. Sometimes banks and credit unions offer personal loans to bad credit borrowers as a membership perk.

If you still cannot get a personal loan due to your credit score, see if you can add collateral to the loan to secure it. Personal loans are usually unsecured, but securing them with your car or bank account can reduce a lender’s risk and make them more likely to approve you. Another way to increase your approval chances is to add a co-signer or co-borrower to the loan. Some lenders allow for such arrangements.

Once approved for the personal loan, you could have anywhere from two to seven years to repay it. Repay the loan on time, and you can build your credit score to get better loans later on.

You may also like