Yes, you can get a personal loan with a credit score of 550. You may want to consider getting a secured personal loan, applying for an unsecured personal loan with a co-signer, borrowing from family and friends, and consulting with local credit unions, which generally have a lower credit score requirement. Some lenders are willing to work with borrowers who have credit scores of 550 or less. For instance, the minimum credit score required for an Avant personal loan is 550, and OneMain Financial does not require any minimum credit score. Who is this for? According to the Upstart website, applicants with a credit history must submit an application with a minimum credit score of 300 (although, Upstart also accepts applicants with no credit history).
Sometimes, a prospective borrower may have a low credit score because they have extremely limited credit activity. Other times, a lack of credit history can cause them to have no credit score. Just keep in mind that if you are approved for the loan with a lower (or no) credit score, you may be subject to a higher interest rate. Who is this for? OneMain Financial generally accepts applicants with at least a bad or fair credit score (the exact minimum credit score is not disclosed, but as a reference, a bad credit score is considered between 300 and 579 and a fair credit score is considered between 580 and 66). You will generally need a score of at least 550 to 580 to qualify for a personal loan.
Installment loans generally extend from three months to six years and are repaid through small monthly payments that include interest and principal payments. Home and vehicle refinance loans are secured by the underlying property, making them available at favorable rates to consumers with poor credit. However, providing your information on this website does not guarantee that you will be approved for a loan or other financial product. Increasing or rebuilding your credit rating is always beneficial if you think you might need to take out a loan in the future. The views expressed here are those of the author alone, not those of any bank, credit card issuer or other company, and have not been reviewed, approved or endorsed by any of these entities.
For auto loans, the best option for finding bad credit financing is usually to finance them through the dealer you buy your vehicle from. Some lenders serve applicants with lower credit scores (below 580) to help them borrow money for emergency expenses, medical bills, debt consolidation and other financial needs. Short-term loans are often used by borrowers with little or no credit who need quick financing, as short-term lenders tend to have very flexible credit requirements and a fast turnaround time. Lenders that do lend to borrowers with lower credit scores may charge higher interest rates and fees. Your lender is legally required to provide you with loan documents and disclose the terms of your loan, including rates and fees.
Depending on the situation, you may want to look for alternative forms of financing or work to improve your credit before you apply. These lenders still offer high interest rates for their loans, but because they are more dispersed in repayment, applicants can comfortably borrow from the lender. Before you apply for a personal loan, it's important to compare as many lenders as possible to find the right loan for your needs. Since lenders offer low rates for borrowers with good credit, it can be tempting to skip buying rates if you have good credit. If you are trying to get a loan with a credit score lower than 550, you may be presented with a term limit for your loan. These terms can vary depending on the lender but typically range from three months up to six years. Increasing or rebuilding your credit rating is always beneficial if you think you might need to take out a loan in the future.
It's important to compare as many lenders as possible before applying for any type of loan so that you can find the best rate available. Additionally, it's important to understand all of the terms associated with any loan before signing any documents.