Where to get a personal loan with a 550 credit score
Where to get a personal loan with a 550 credit score

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

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

Before approving a borrower for a personal loan, most lenders look for a good to excellent credit score, stable income and work history, and a low debt-to-income ratio. While it is possible to get a loan with a 550 credit score, there are downsides. You may have to settle for a higher interest rate or high fees, all of which add to the lifetime cost of a personal loan.

Credible, it’s easy to compare personal lender rates willing to work with borrowers with poor to fair credit.

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

You may be able to get a personal loan with a 550 credit score. But keep in mind that you’ll have to shop around because not all lenders will make an offer to someone with a low credit score.

Lenders who give lending to borrowers with lower credit scores may charge higher interest rates and fees. They may also ask you to provide collateral or an asset that you own.

What is considered bad, good and excellent credit?

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 Credit Scores Affect Personal Loan Rates

Lenders rely on credit scores to get an idea of ​​how you’ve handled credit in the past and how likely you are to handle a new loan. A higher credit score 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 approved for a low-interest loan.

Conversely, a lower credit score can signal to lenders that you’ve had trouble managing credit in the past and may find it difficult to repay a new loan. Since the lender perceives you as a riskier borrower, they are likely to offer you higher interest rates.

Best lenders for personal loans with bad credit

These eight credible partner lenders offer bad credit loan options.

Before

Avant is an online lending platform that has been around since 2013 and has offered loans to over 600,000 borrowers.

best egg

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

  • Loan amounts: $5,000 to $50,000
  • Loan conditions : 2 to 5 years
  • Minimum credit score: 600
  • May be good for: Borrowers who wish to repay their loan early

loan 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
  • Loan conditions : 3 or 5 years
  • Minimum credit score: 600
  • May be good for: Borrowers who want to consolidate their credit card debt

LendingPoint

LendingPoint is a direct personal lender that offers loans up to $36,500 the next business day.

  • Loan amounts: $2,000 to $36,500
  • Loan conditions : 2 to 4 years old
  • Minimum credit score: 580
  • May be good for: Borrowers who need a small personal loan quickly

OneMain Financial

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

  • Loan amounts: $1,500 to $20,000
  • Loan conditions : 2 to 5 years
  • Minimum credit score: Nothing
  • May be good for: Borrowers who want to borrow a small amount of money

Universal Credit

Powered by Upgrade, a loan broker in San Francisco, Universal Credit is a lending platform that provides and manages personal loans funded by partner banks.

  • Loan amounts: $1,000 to $50,000
  • Loan conditions : 3 to 5 years
  • Minimum credit score: 560
  • May be good for: Borrowers who want fast financing

To improve

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

  • Loan amounts: $1,000 to $50,000
  • Loan conditions : 2 to 7 years old
  • Minimum credit score: 560
  • May be good for: Borrowers who want to build a credit history

Reached

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

  • Loan amounts: $1,000 to $50,000
  • Loan conditions : 3 to 5 years
  • Minimum credit score: 580
  • May be good for: Borrowers with a solid education and professional background

You can view prequalified personal loan rates in minutes, without affecting your credit, when you use Credible.

Other Lenders to Consider

The following three lenders are not Credible partners, so you won’t be able to easily compare your rates with them on the Credible platform. They don’t disclose their minimum credit score requirements, but they may also be worth considering if you’re looking for a personal loan with a bad credit score.

Citizens Bank

  • Loan amounts: $5,000 to $50,000
  • Loan conditions : 3 to 7 years old

HSBC Bank

  • Loan amounts: $3,000 to $50,000
  • Loan conditions : 2 to 5 years

Rocket Loans

  • Loan amounts: $2,000 to $45,000
  • Loan conditions : 3 or 5 years

Methodology

Credible assessed the best personal lenders for poor credit based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding term, loan terms and fees. Credible’s team of experts gathered information from each lender’s website, customer service, and via email support. Each data point was checked to ensure it was up to date.

How much does a loan of 550 credit points cost?

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

Imagine you take out a $5,000 personal loan for three years. You have good credit and enjoy a low interest rate of 11%. Your monthly payment would be $164 and your total interest charges would be $893. Now let’s look at the same loan amount and repayment term with a credit score of 550 which entitles you to an interest rate of 35%. Your monthly payment jumps to $226 and your total interest charges jump to $3,142.

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

What are the pros and cons of 550 credit loans?

Before going ahead with a personal loan with bad credit, be sure to consider the pros and cons.

Benefits

The inconvenients

  • High interest rates — You can be stuck with a high interest rate, which can cost you thousands of extra dollars over the life of your loan.
  • Expensive fees — Some lenders who offer 550 credit loans charge a variety of expensive fees. These may include origination fees, application fees, late fees and insufficient funds fees.
  • May need guarantees — Depending on the lender you choose, you may need to secure your loan with collateral like a savings account or other asset. If you don’t make your payments, the lender can seize the collateral.
  • More debt — If you are already struggling with debts, a personal loan can make the problem worse. This is especially true if you are borrowing more than you can comfortably afford to repay.

If you decide that a personal loan meets your needs, you can easily compare personal lender rates with Credible.

Alternatives to personal loans with bad credit

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

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