560 Credit Score Personal Loan

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Loans for 560 Credit Score

How To Get a Loan with a 560 Credit Score?

A 560 credit score personal loan may be possible to obtain, but it will require some extra effort on your behalf. While it may be in your best interest to improve your credit score before applying for a loan, some lenders may be willing to work with you. If you choose to apply for a loan with a 560 credit score, you should find a lender that does not have a minimum credit score requirement. You should also make sure that you have enough income to support the loan payment. Alternatively, you may be able to apply with a cosigner who has good credit which can increase your chance of approval.

Acorn Finance only partners with reliable and trustworthy lenders. You can submit one application through Acorn Finance and receive multiple personalized pre-approval offers within seconds.

Your credit will not be affected by the initial application.

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How To Apply For 560 Credit Score Personal Loan

1 Pre-qualify

Fill out an 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 the offer that’s best for you

3 Finish application

Complete your application on your selected lender’s website

4 Receive funding

After your loan is approved, your funds should arrive within 1-2 business days2

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FREQUENTLY ASKED QUESTIONS

Learn More About 560 Credit Score Personal Loan

Any credit score that is between 300 and 579 is considered “very poor.” Most lenders may choose to not do business with an individual with a credit rating of 560. It is estimated that 62% of borrowers who have a credit score in the 300 to 579 range, may become seriously delinquent and go more than 90 days past due on a debt payment in the future.

Read more - FAQ

How bad is a 560 credit rating?

Any credit score that is between 300 and 579 is considered “very poor.” Most lenders may choose to not do business with an individual with a credit rating of 560. It is estimated that 62% of borrowers who have a credit score in the 300 to 579 range, may become seriously delinquent and go more than 90 days past due on a debt payment in the future.

A person with a credit score of 560 may find it extremely difficult to qualify for an unsecured loan without the use of collateral or a cosigner. They may also have to pay extra fees or put down deposits to obtain credit cards. A credit score of 560 is usually the result of some recent or past negative credit activity on your credit report. Maybe you declared bankruptcy in the last 5 years, or, you had a car repossessed or a home foreclosed on. You could have several past due and delinquent accounts sitting in collections. With a credit score of 560, lenders may be a bit wary of loaning you money because they may be skeptical that you are going to be able to pay back the full loan amount on time and in full.

If you are looking to finance a home improvement project, you may want to consider increasing your credit score before applying for an unsecured personal loan. Increasing your credit score from 560 to 610 or better, may not be an easy task, but doing so will give you access to more competitive interest rates and it may allow you to obtain a loan without an origination fee.

What does it mean if your credit score is 560?

Having a credit score of 560 means that 91% of borrowers out there have a better credit score than you. That puts you in the bottom 9%. If you have a credit score of 560, it also means that you may have a 62% chance of defaulting on a personal loan. With a credit score of 560, you may already have a considerable amount of credit card debt as well. The average credit card debt of borrowers with a credit score is somewhere around $4,674.

With a credit score of 560, there is the chance that you are starting to rebuild your credit after filing either a Chapter 13 or a Chapter 7 bankruptcy. After a bankruptcy is finalized, it is common for individuals to see their credit score drop into the mid to low 500s. It may also mean that you have simply not kept up with payments and debts. It usually takes a lot of work to get your credit score up over 600 again and often it can take between 12 and 24 months of diligent credit building to do so. Maybe you didn’t file for bankruptcy, but instead, you had a foreclosure on a home or some other major credit incident that significantly impacted your credit score. If your credit score is low, you should invest time into rebuilding it as it can benefit you in many ways.

Can I get a personal loan with a 560 credit score?

Some lenders may still consider you for an unsecured personal loan with a credit score of 560, however, many will not. You will need to seek out lenders who specialize in lending money to bad credit borrowers. You may also have to come to the realization that you may be required to pay interest rates as high as 36% in some cases to borrow money. You also may be subject to pay an origination fee or a higher late-payment penalty than other borrowers who have better credit. So, is it possible to get a personal loan with a credit score of 560? Yes, but for the best chances, you might want to consider a secured personal loan or take a couple of months to improve your credit score as much as you can.

How much of a loan can I get with a 560 credit score?

If you are looking for an unsecured personal loan with a credit score of 560, you may find it difficult to qualify for a loan for a large sum of money. Without collateral, and without a cosigner, qualifying for an unsecured personal loan for even $5,000 may be difficult for someone with a credit score of 560. In addition, if you have a 560 credit score and limited income, this may cause more problems. Lenders usually consider a variety of factors when determining if a borrower qualifies and what they qualify for.

What’s the minimum credit score for a personal loan?

Depending on the lender, some lenders will want to see a credit score of at least 610 or 620. Some lenders may even require a credit score of 650 or 660 to even be considered. On the other hand, there are still lenders who specialize in loans for bad credit borrowers. These lenders will look closely at your income, your existing debts, and they may even analyze your spending habits to see if you could still manage to pay the monthly payments on time even though you have a credit score somewhere in the 500s.

What credit score is needed for a $5000 loan?

For an unsecured personal loan of $5,000, you should, at minimum, have a credit score somewhere between 610 and 640. This is usually where the starting point is for many lenders who are considering loaning money to an individual. If you have a credit score below 610, you could still see if you could qualify for a $5,000 unsecured personal loan. At Acorn Finance, most of our lending partners have a credit score cutoff of 600 or better. To find out if you qualify, complete the form and check offers within 60 seconds or less.

Can I get a loan today with a 560 credit score?

Yes, depending on the loan amount, there are some online lenders who are able to make a same-day personal loan. First you will need to find a lender that will work with low credit borrowers or a lender that considers other factors over credit score. If you are unable to find a lender that you qualify for and can fund a personal loan same-day, you may need to look at other options. You may be able to pawn an item to get cash today. You may also be able to use a payday loan. While both of these are certainly options, they can be expensive and risky. It’s usually best to try to qualify for a personal loan if possible.

Should I apply for a personal loan with a 560 credit score or increase it first?

Sometimes, emergencies happen with no regard to your current credit situation. A car can break down, a furnace can go out, or some other emergency can happen that you do not have the cash on hand to take care of. In those cases, you may not be able to take the time to increase your 560 credit score. If you do qualify for a personal loan with a credit score of 560, and you make all the payments on time, then you will be building your credit score at the same time.

If you are looking for a loan for a home improvement project, or something that is not completely time sensitive, then yes, you should take a couple of months to work on improving your credit score before applying for a personal loan.

Which lenders are best for a 560 credit score?

If you have a 560 credit score and need a loan right away, you may want to check out the following lenders and see what they can offer. . .
NetCredit
Oportun
LendUp

What do lenders consider when evaluating a potential borrower with a 560 credit score?

Most lenders consider several factors when evaluating a potential borrower’s creditworthiness. The factors are the same no matter the borrower, however, if you have a credit score of 560, the evaluation process may be a little more constringent. With a credit score of 560, it is important to understand that some lenders may even ask you to find a cosigner for the loan or to use an asset as collateral to secure the loan. Regardless of credit score, let us take a closer look at some of the factors that typical lenders evaluate when reviewing a potential borrower’s creditworthiness.

There are five main factors that lenders evaluate, credit history, debt-to-income ratio, capital, collateral, and conditions for the loan.

Credit history: An individual’s credit history is a record that is kept by the three main credit bureaus which reflect their ability to manage the repayment of debts like credit cards, mortgages, car loans, and other bills including medical and utility bills. The credit history keeps track of on-time payments, late payments, how many and what types of accounts there are, how much is owed on each account, and if there are any accounts in delinquency or collections.
Debt-to-income ratio: An individual’s debt-to-income ratio is a measurement of their ability to repay a new line of credit when their existing debts are weighed against their income. The lower the debt-to-income ratio, the more likely lenders are going to be willing to work with a potential borrower. A typical lender may prefer a debt-to-income ratio to be below 35% including the new line of credit the borrower is applying for.
Capital: Capital typically is considered when someone is taking out a new mortgage. How much money can the borrower put up front as a down payment? However, for a personal loan, some lenders may look at your cash holdings to see if you have enough money in savings to continue to make payments on the loan even if an unexpected financial or life emergency occurs.
Collateral: Collateral is often used to help a low credit borrower secure a personal loan. For example, if someone cannot qualify for a loan based solely on their credit history, a lender may ask for the borrower to secure the loan with an automobile, retirement account, savings account, boat, home, RV, or personal property like gold, silver, or jewelry.
Conditions: Conditions can apply to a lender examining the conditions of an individual’s situation like their employment status, employment history, future job stability, the purpose of the loan, and it can also apply to the conditions of the loan itself. Loan conditions such as interest rates, origination fees, and potential penalties for late or missed payments.

As mentioned before, most if not all of these five factors can be used to evaluate a borrower with any credit score, however, with a credit score of 560, you may want to be prepared for a little longer of an approval process and potentially some additional conditions and collateral.

What can I get with a 560 credit score?

If you have a 560 credit score, do not worry, there are still plenty of options available to you for new lines of credit. For example, a person with a 560 credit score can still apply and potentially be approved for an FHA home loan as long as they have a 10% down payment available to secure the loan. Additionally, there are still personal loans available to someone with a 560 credit score, however, without a cosigner or collateral, the loan amount may be very low and the interest rate very high. The lender may even mandate a cosigner or collateral. A 560 credit score is not a death sentence, however, if you have a 560 credit score combined with a recent bankruptcy or foreclosure, your chances of qualifying for a personal loan may be quite small. That being said, a 560 credit score may still be enough to get a credit card or even a car loan. It all depends on the lender.

Can you get a $1000 personal loan with a 560 credit score?

Yes, someone with a 560 credit score could still qualify for a $1,000 personal loan. A person could still qualify for a personal loan of $1000 with a credit score of 560, however, if they have any recent seriously negative credit events, like a home foreclosure, car repossession, or home foreclosure, then their chances become exponentially smaller. The best way for a person to qualify for a $1000 personal loan with a credit score of 560 is to have an asset prepared to be used as collateral or to find a cosigner.

How does the FICO credit score rating work?

A FICO credit score is essentially a fast and easy way for a lender to determine whether a borrower may or may not qualify for a loan they may be applying for. A FICO score is a 3-digit number that summarizes your credit history. The numbers span from 300 to 850. A credit score between 300 and 580 is considered poor. A poor credit score demonstrates to lenders that an applicant is a risky borrower. A score between 580 to 669 is considered fair. A fair credit score still may allow a person to be approved for a loan on their own merit. A score between 670 and 739 is considered good. A good credit score is near or above average and most lenders see someone with a good credit score as being only a slight risk. A score between 740 and 799 is considered very good. A very good credit score demonstrates to lenders that the applicant is a dependable borrower. Any score above 800 is considered exceptional. Exceptional borrowers may see the most favorable interest rates and terms from lenders when applying for any type of credit.

What are the causes of a 560 credit score?

A credit score of 560 could be caused by past credit concerns like bankruptcies, home foreclosures, car repossessions, delinquent accounts, missed and/or late payments, and accounts in collections. However, a person may only have a credit score of 560 simply because they have little to no substantial credit history.

How can I improve my 560 credit score?

If you have a credit score of 560 and you are looking to improve your credit, the first thing you need to do is make sure all your current accounts are current and continue to make payments on time. After that, you may want to may off some credit card debt to get your total debt owed amount lower. If you find it difficult to make extra payments to pay off credit card debt, you may want to consider a second job or selling some personal possessions and allocating those funds to your credit card accounts.

What kind of payments can build credit for a 560 FICO score?

The two types of credit lines that are the easiest to qualify for with a 560 FICO score are credit cards and auto loans. If you are in the market for either, you may be able to qualify for either one, make the payments on time, and hopefully see your credit score increase over time.

What does it mean to prequalify for a personal loan with a 560 credit score?

When you prequalify for a personal loan with a 560 credit score, a lender does a “soft pull” of your credit history and makes a decision as to whether you could potentially qualify for a personal loan or not. If you do prequalify, then it believes that the odds are good that you will be approved, however, it is not certain.

Closing Thoughts

While you may qualify for a personal loan with a 560 credit score, it’s usually best to rebuild your credit before taking out a loan. Rebuilding your credit score can increase your chance of approval and help you qualify for a lower interest rate and more favorable terms. If you can get your credit score at or near the 600 range, you can open up your options.

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