Where to get a personal loan with a 550 credit score

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You can get a personal loan with a credit score of 550. Find out more about your options. (iStock)

Before approving a personal loan to a borrower, most lenders look for good to excellent credit, stable income and employment histories, and a low debt-to-income ratio. While it is possible to get a 550 credit score loan, there are downsides. You may have to settle for higher interest rates or expensive fees – all of which add to the lifelong cost of a personal loan.

Credibility makes it easy Compare rates from personal lenders willing to work with borrowers who have poor or fair credit ratings.

Can I get a personal loan with a credit score of 550?

You may be able to get a personal loan with a credit score of 550. Just keep in mind that you need to shop around as not all lenders make an offer to someone with a low credit score.

Lenders who give Loans to borrowers with lower credit ratings may demand higher interest rates and fees. They can also require that you post collateral or an asset that you own.

What are considered bad, good, and excellent credit scores?

Most credit scores range from 300 to 850. Here’s how they break down:

  • Below 580 – Bad
  • 580-669 – Fair
  • 670-739 – Good
  • 740-850 – Excellent

How creditworthiness affects personal loan rates

Lenders look at credit scores to get an idea of ​​how well you’ve managed credit in the past and how you’re likely to manage a new loan. ONE higher creditworthiness can signal to lenders that you are more likely to repay a loan on time and as agreed. You may have a better chance of getting a loan with a low interest rate.

Conversely, a lower credit score can indicate to lenders that they have had credit management problems in the past – and may have difficulty paying back a new loan. Since the lender perceives you as a riskier borrower, you are likely to be offered higher interest rates.

Best Lender For Personal Loans With Bad Credit

These eight credible affiliate lenders offer bad credit loan options.

In front

Avant has been an online lending platform since 2013 that has offered loans to more than 600,000 borrowers.

  • Loan Amounts: $ 2,000 to $ 35,000
  • Credit terms: 2 to 5 years
  • Minimum creditworthiness: 550
  • Can be good for: Borrowers in need of quick funding

Best egg

Best Egg is an online lending platform that has helped more than 500,000 people with more than $ 8 billion in funding.

  • Loan Amounts: $ 5,000 to $ 50,000
  • Credit terms: 2 to 5 years
  • Minimum creditworthiness: 600
  • Can be good for: Borrowers who want to pay off their loan early

Lending Club

LendingClub is a peer-to-peer lending platform that connects borrowers with investors who want to lend them money.

  • Loan Amounts: $ 1,000 to $ 40,000
  • Credit terms: 3 or 5 years
  • Minimum creditworthiness: 600
  • Can be good for: Borrowers looking to consolidate credit card debt

LendingPoint

LendingPoint is a direct private lender offering loans up to $ 36,500 as of the next business day.

  • Loan Amounts: $ 2,000 to $ 36,500
  • Credit terms: 2 to 4 years
  • Minimum creditworthiness: 580
  • Can be good for: Borrowers who need a smaller personal loan quickly

OneMain Financial

OneMain is a large lender offering secured and unsecured personal loans of up to $ 20,000.

  • Loan Amounts: $ 1,500 to $ 20,000
  • Credit terms: 2 to 5 years
  • Minimum creditworthiness: None
  • Can be good for: Borrowers who want to borrow a small amount of money

Universal credit

Universal Credit is operated by Upgrade, a credit broker in San Francisco, and is a credit platform that offers and serves personal loans financed through partner banks.

  • Loan Amounts: $ 1,000 to $ 50,000
  • Credit terms: 3 to 5 years
  • Minimum creditworthiness: 560
  • Can be good for: Borrowers who want quick funding

Update

Upgrade is an online lender that offers quick approval of fixed rate personal loans up to $ 50,000.

  • Loan Amounts: $ 1,000 to $ 50,000
  • Credit terms: 2 to 7 years
  • Minimum creditworthiness: 560
  • Can be good for: Borrowers looking to build credit history

upstart

Upstart is an online lending platform that offers personal loans from $ 1,000 to $ 50,000 from multiple credit partners.

  • Loan Amounts: $ 1,000 to $ 50,000
  • Credit terms: 3 to 5 years
  • Minimum creditworthiness: 580
  • Can be good for: Borrowers with a strong education and work history

You can see pre-qualified personal loan rates Minutes without affecting your balance when using Credible.

Other Lenders to Consider

The following three lenders are not Credible partners, so you cannot easily compare your rates with them on the Credible platform. They do not disclose their minimum credit requirements, but they can also be worth considering if you are looking for a personal loan with a poor credit score.

Citizens Bank

  • Loan Amounts: $ 5,000 to $ 50,000
  • Credit terms: 3 to 7 years

HSBC bank

  • Loan Amounts: $ 3,000 to $ 50,000
  • Credit terms: 2 to 5 years

Rocket loan

  • Loan Amounts: $ 2,000 to $ 45,000
  • Credit terms: 3 or 5 years

methodology

Credible rated the best personal lenders for bad credit based on factors like customer experience, minimum interest rate, maximum loan amount, funding time, loan terms and fees. Credible’s team of experts gathered information from each lender’s website, customer service department, and email support. Every data point was checked to ensure that it was up to date.

How much does a loan with 550 credit points cost?

A number of factors can affect the cost of a personal loan, including your interest rate, APR, fees, repayment term, and creditworthiness. Here is an example of how some of these factors can affect the cost of a personal loan.

Imagine taking out a $ 5,000 personal loan with a term of three years. You have a good credit rating and get a low interest rate of 11%. Your monthly payment would be $ 164 and your total interest cost would be $ 893. Now let’s consider the same loan amount and repayment time with a credit score of 550 that qualifies you for a 35% interest rate. Your monthly payment increases to $ 226 and your total interest cost increases to $ 3,142.

In this example, better credit would save you $ 2,249 in interest costs over the life of the loan.

What are the pros and cons of 550 credits with credit score?

Before proceeding with a bad credit personal loan, you should weigh the pros and cons.

benefits

  • Simple application – Usually you can Apply for personal loans online within a few minutes from the comfort of your home. You don’t have to drive to a bank and go through a lengthy application process.
  • Flexible – With a personal loan, you can cover almost all expenses. Whether you need cash to pay for a car repair, or a medical bill Home improvement project, it can be a great option.
  • Fast financing – Many personal lenders offer quick funding so you don’t have to wait weeks or even months to raise the money you need. This is great news when you have an emergency issue that can’t wait.
  • Opportunity to improve creditworthiness – As long as you make your payments on time, a personal loan can improve your credit score. A history of on-time payments will slowly but surely build up and increase your score.

disadvantage

  • High interest – You may have a high interest rate that can cost you thousands of additional dollars over the life of your loan.
  • Expensive fees – Some lenders who offer credit with 550 credits charge a variety of costly fees. This can include creation fees, application fees, late fees, and insufficient coverage fees.
  • May need collateral – Depending on which lender you choose, you may need to secure your loan with collateral such as a savings account or some other asset. If you fail to make your payments, the lender may seize the collateral.
  • More debt – If you already are struggle with debt, a personal loan can make the problem even worse. This is especially true when you borrow more than you can comfortably pay back.

When you decide that a personal loan is right for your needs, you can easily get one Compare rates from personal lenders with credible.

Alternatives to personal loans with poor credit ratings

If you have poor credit, a personal loan is not your only option. Here are some alternatives that can help you meet your financial goals.

  • Work on building your credit. Unless you need a personal loan straight away, it can make sense to Build up your credit before you apply. To do this, pay all your bills in full and on time. Try paying off existing debts to improve your credit life. You can also consider becoming an authorized user with a credit card.
  • Consider a secured loan. While secured loans As title loans and payday loans are available, they are almost never a good idea. They usually come with sky high interest rates and exorbitant fees. You also need to secure them to an asset like your car or your paycheck. However, a secured personal loan can be an option if you have an asset to use as collateral.
  • Apply with a cosigner. If you have a friend or family member with good credit, you can ask them to be a co-signatory. Your good credit could help you qualify for a lower interest rate loan. Just remember that if you don’t, he will be responsible for repaying the loan as the co-signatory.
  • Borrow from friends and family. You may be able to get a loan from a parent, sibling, or someone you know or trust at a low interest rate. However, if you go down this route, make sure you put the terms in writing so everyone is on the same page.
  • Work with a credit advisor. A credit counselor can be a good solution if you want professional advice on improving your finances. They can help you budget and create a debt management plan.

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