Personal Loans for 550 Credit Score

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Securing Personal Loans with Credit Scores At or Under 550

A 550 credit score can affect whether you can borrow or not, how much you qualify for, the rates you are offered, the amount of time you can take to repay a loan, and whether you need to secure the loan or not. Still, there is a lot of confusion around what a credit score is, how it is calculated, and whether it is good or bad. In this blog, we will take a look at a credit score of 550 to see how it impacts your borrowing ability.

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How To Apply For Personal Loans for 550 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*

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“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.”

 

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FREQUENTLY ASKED QUESTIONS

Learn More About Personal Loans for 550 Credit Score

If you need a personal loan with a credit score 550 or under 550, it may be challenging. Some sources may fluff the truth, but the hard truth is that your credit score has a significant impact on your ability to borrow.

Read more - FAQ

Is a 550 a bad credit score?

The credit score most lenders use is called a FICO score. Your FICO score is generated by pulling information from your credit report. Your FICO score pulls data from three credit reports: Experian, Transunion, and Equifax. Your score is based on how much debt you have, the length of time you have had credit, if there are new accounts, and your payment history.

The ranges are as follows:

300-579-poor or bad credit
580-669-fair credit
670-739-good credit
740-799-very good credit
800-850-exceptional credit

As you can see, a credit score of 550 is poor or bad. If your credit score falls into a poor or bad category, see this as an opportunity not an obstacle. Take advantage of the opportunity to rebuild your credit score and graduate to a fair or good category.

Can you get a personal loan with a 550 credit score?

You may be able to get a personal loan with a credit score of 550, but it will probably be challenging. Lenders can see that you have had problems repaying your debt in the past and might be reluctant to lend to you if you have a credit score of 550. If you are approved, they may want to secure the loan with an asset of yours. They may want a cosigner. Lenders usually charge a much higher rate for personal loans for 550 credit scores. It is up to you to decide if the terms being offered, if you qualify, make sense or not for your situation.

How big of a loan can I get with a 550 credit score?

The amount you can qualify for with a credit score of 550 usually depends on the lender. One lender that considers borrowers with a credit score of 550 is Avant. They can lend up to $35,000, and their rates range from 9.95%-35.99%. OneMain does not have a minimum credit score, and the maximum amount they lend is $20,000. Their rates range from 18%-35.99%.

Can I get approved for a loan today with a 550 credit score?

Some lenders grant quick approval times for loans, but this is more common if you have a good credit score. When people have poor credit scores, lenders usually take more time to investigate the file. Sometimes this can take a few days or more. If you want a quick turnaround time, try applying online.

What credit score is needed for a $5000 loan?

The credit score needed for a $5,000 personal loan will depend on the lender. Most lenders like to see a credit score of at least 660. As you have seen from the chart above, this means the borrower’s credit is on the high end of a fair credit rating. Some lenders like Avant may consider borrowers with a credit score of 550, while others, like OneMain, don’t have a minimum credit score requirement. Before applying for credit, it is a good idea to check your credit score. Once you know what it is, you can approach lenders to see their minimum credit score requirements for a $5,000 loan.

How can I get a $3000 loan with bad credit?

Personal loans for credit scores under 550 aren’t easy to get, but it is possible to find lenders that are willing to loan small amounts. Sometimes it is easier to apply for a secured credit card with a $3,000 limit if you have bad credit. You can try online lenders or lenders that don’t have a minimum credit score. Another alternative is a title loan, where you use the title of your vehicle as collateral.

What can I get with a 550 credit score?

Some lenders like Avant can fund loans for up to $35,000 for borrowers with a minimum credit score of 550. You might also be able to qualify for a car loan or credit card. It depends on what you need the money for and how much you need. Different lenders have different criteria. You can contact lenders you would like to deal with to see what their criteria are and how much you would qualify for. While your credit score has a significant impact on your ability to borrow, it isn’t the only thing lenders consider. Lenders also consider income, net worth, and if there are assets available to secure the loan.

Possible question: How can I raise my credit score from 550 to 700?

Raising or rebuilding your credit score is an excellent idea if you think you might need to borrow in the future. Be aware that this may take several months, but it is well worth the investment and effort. The most important steps you can take to increase your credit score are as follows:

Pay all your debts and bills on time-no exceptions!
Reduce the amount of debt you are carrying by paying down your accounts and not using them again
Avoid applying for new credit or opening new accounts
Don’t close old credit card accounts
Make sure you monitor your credit report for errors and report any inaccuracies

Doing all this should help you improve your credit rating significantly. As a result, you should have an easier time qualifying for credit at better rates.

Which lenders are best for a 550 credit score?

If you need a personal loan with a 550 credit score, it is only natural to want to know who offers the best deal. If you need $10,000 or less, some lenders to consider are MoneyMutual, CashUSA, and CreditLoan. If you need a larger amount, you can consider OneMain for loans up to $20,000 or Avant if you need up to $35,000. Be sure to check rates and fees like origination fees and prepayment fees. Extra charges can add a lot of additional expenses to your loan. It’s best to avoid them as much as possible.

What do I need in order to get a personal loan with a 550 credit score?

The first thing to do before you apply for credit is to check your credit score. It’s a good idea to make sure that there are no errors on your credit report impacting your score. Second, figure out how much you want to borrow and how long you will need to pay it off. You can use an online loan calculator to figure out how much payment will cost you to make sure the payments fit your budget. Third, do your research. Have a look at what lenders offer in terms of rates and fees so that you can find the best deal for yourself. Lastly, you may want to gather documents such as proof of income and identification. If you have a 550 credit score, your income may play a big role in whether or not you qualify. During the application process you should make sure to submit accurate information. This means, check your pay stubs to determine your annual or monthly income, don’t estimate. While you should rebuild your credit score before applying for a loan, this may not be an option. If you need a loan now and have completed preparation steps, you will need to get pre-qualified. At Acorn Finance most of our lending partners have a minimum FICO requirement 600 or above, but anyone can try to check offers. Acorn Finance has a network of top national lenders. Within 60 seconds or less you can check personal loan offers without impacting your credit score.

Closing Thoughts

Unsecured personal loans with a credit score of 550 can be more challenging to qualify for than if you had a good credit rating. However, it is still possible to find lenders willing to work with you. If you can’t delay borrowing until you improve your credit score, do some research to find a lender who will give you the best deal. Make sure to compare amounts, rates, terms, and conditions to make sure the offer works for you.

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