Best Personal Loans for 500 Credit Score

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Personal Loan Options for Credit Scores At or Under 500

Personal loans for 500 credit scores are typically not advised. However, some lenders may be willing to offer personal loans for credit scores at or below 500.

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How To Apply For Best Personal Loans for 500 Credit Score

1 Pre-qualify

Fill out easy online form to check for pre-qualified offers with no impact to your credit score

2 Select offer

Compare terms and payment options to select offer that’s best for you

3 Finish application

Complete application process on your selected lender’s website*

4 Receive funding

After loan approval, your funds should arrive within 1-2 business days*

COMPARE RATES FROM TOP LENDERS

“The process couldn’t have been any easier. I filled out a short form that took me less than 2 minutes and within seconds I got multiple offers from lenders.”

 

- Mike T. (TN)

“It was important to me that I could review my offers without any impact to my credit score, before deciding on the best loan option.”

 

- Carol R (FL)

“I like the easy online and 100% paperless experience of Acorn Finance. I received my money two days after completing my application.”

 

- Bob S (WI)

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FREQUENTLY ASKED QUESTIONS

Learn More About Best Personal Loans for 500 Credit Score

If you have found yourself with a 500 credit score and need to borrow money, you should ask yourself how soon you need a loan. If you can, you should rebuild your credit before applying for a loan. In some cases, you may need money right away and that may be doable even with a poor credit score. Keep reading to learn more about loans and 500 credit scores.

Read more - FAQ

Is 500 considered a bad credit score?

Credit score numbers are usually FICO scores. FICO scores are used in 90% of lending decisions in America. Your FICO score is generated using the information found on the three national credit reports-Experian, Equifax and Transunion. A credit score is calculated by looking at whether you make your payments on time, how much debt you have, the type of debt you have, the mix of credit, and if there are any new accounts. This will create a number called your credit score. There are five categories of credit scores, and your credit score will be in one of them. If your credit score is between 300-579, you have poor or bad credit. If your score is between 580-669, you have fair credit. A credit score of 670-739 is a good credit score. A very good credit score is between 740-799. If your credit score is exceptional, it will be between 800-850. As you can see, a credit score of 500 is a poor credit score.

What is a bad credit score and why does it matter?

A credit score between 300-579 is considered bad or poor. A poor credit score matters for a lot of reasons. If you want to get a loan, credit card, or mortgage with a credit score of 500, you will find it challenging. Applying for things like a cell phone plan might even be difficult, too, since cell phone companies may check your credit rating. If you move and are renting, you might be declined if the landlord sees a credit score of 500. Utility companies might want a deposit for new accounts if you have a poor credit score. Lastly, some employers require a credit check for new hires. If a candidate has a poor credit score, they might not get the job. While we are all humans and may have good intentions, credit score can reflect past financial behavior and decisions. It’s important that we strive to maintain the best score possible.

Can you get approved for a loan with a 500 credit score?

Personal loans for a credit score of 500 are not easy to get, but that doesn’t mean it’s impossible. Some lenders deal mainly with borrowers who have bad credit and may not even check a potential borrower’s credit rating. They may ask for other information, though, like income and employment verification and if you are a homeowner or renter. Personal loans for a credit score of 500 usually have origination fees and high-interest rates. If you borrow money and have poor credit, it will cost you more than if you have a good credit rating.

How much of a loan can you get with a 500 credit score?

If you are looking for a personal loan, some lenders provide them for borrowers with a 500 credit score. You can borrow up to $10,000 through some of these companies. Three of these companies that you can try are MoneyMutual, CashUSA, and CreditLoan.

How big of a loan can I get with a 500 credit score?

The maximum amount you can get for a credit score of 500 will depend on the lender. As mentioned, some lenders will consider granting loans up to $10,000. There are other lenders who don’t have a minimum credit score. You may be able to borrow more if you secure the loan or have someone willing to cosign the loan for you. Adding security or a cosigner reduces the lender’s risk, so they may be able to increase the amount they can lend to you.

What can I get with a 500 credit score?

In terms of loans, you will be more likely to qualify for a secured loan with a 500 credit score. For example, if you need an auto loan with a 500 credit score, you can use the vehicle as collateral. In addition, you can offer a down payment. The collateral and upfront down payment may increase your chance of approval. However, if you just need access to cash, you may need a credit card or personal loan. With a 500 credit score, you may qualify for either of these types of loan but expect some challenges and high loan costs.

Can I pass a credit check for a personal loan with a 500 credit score?

Passing a credit check for a personal loan with a 500 credit score might be tricky. You will need a lender who either doesn’t do credit checks, doesn’t have a minimum credit score, or looks at other factors in addition to your credit score. For example, some lenders work with borrowers who have had credit problems in the past if the borrower can show that they have improved their situation.

Possible question: How long does it take to rebuild credit from 500?

There is no exact answer on how long it takes to rebuild your credit rating. Every borrower has a unique set of circumstances that impact them. Some borrowers may take a few months to see a significant improvement, while others may take years.

There are a lot of things you can do to improve your credit score. Here are just some of the ways you can rebuild a 500 credit score:

1. Make sure you pay your bills and make your payments on time. If you have late payments, they will drag down your score.
2. Reduce the amount of revolving credit you use to no more than 30% of the limit. For example, if you have a credit card with a limit of $1000, try to keep the balance under $300.
3. Avoid adding new credit to your credit report. Credit inquiries will reduce your score, and so will opening new accounts.
4. Make sure you check your credit rating periodically for two main reasons. The first reason is to see if you are making progress. The second reason is to make sure that there are no errors that are impacting your score. If there are, make sure you contact the appropriate sources and have them corrected.With time, patience, and diligence, you will eventually see an improvement in your credit score.

How can I get a personal loan with a 500 credit score?

If you need a personal loan and you know your credit score is 500, you can do some research to see which lenders specialize in loans for bad credit or who don’t have a minimum credit score requirement. First, make sure you have paperwork confirming your identity, income, employment, and address. Next, you will need to apply and see what you qualify for. If your credit score is 500, it will be challenging but not impossible to get a personal loan. If you can wait before taking out a loan you should invest time into rebuilding your credit score.

Which lenders are best for borrowers with a 500 credit score?

MoneyMutual, CashUsa, CreditLoan, and OneMain all work with borrowers who have low credit scores. You can research these companies online to see if they offer what you are looking for. If you can improve your FICO to 600 or better, you should check offers at Acorn Finance. With just a slightly higher credit score than 500, you should have more options and more access to competitive loan offers.

Closing Thoughts

Getting a loan with a credit score of 500 can be difficult and expensive. Sometimes though, people need to borrow regardless of whether they have good credit or not. It is possible to qualify for a personal loan with a credit score of 500; make sure to compare offers to get the right loan for you. In addition, always review the fine print. If you end up taking out a bad credit loan, do everything you can to make sure it’s repaid on time. A bad credit loan may be expensive so at the very least you should make sure it results in a positive mark on your credit report.

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