Is it an accident, or a car repair or a hospital bill? No matter the expense, you will need to borrow a personal loan if a situation like this occurs and that’s only imaginable if your credit score is as good as it needs to be, if not very good or excellent credit score, then you need to look out Lowest Credit Score for Personal Loan.
Low credit score means you are a high-risk customer and the loan lender will think twice before lending you the loan. But, even if you have a low credit score but your income is good, odds are you can qualify for the Fair personal loan, you just have to look for a suitable loan lender.
Lowest Credit Score for Personal Loan
Are you one of those who are suffering from the bad credit scores? If you are facing the lowest credit score situation, you’re not alone. Every day, we get asked by our visitors who are also struggling with the ‘Low Credit Score’ problem.
Question is: How low is your credit score?
First off, you need to understand how low your credit score is. If you have got the lowest credit score, it could be hard for you to qualify for a personal loan, however, you should not give up unless you know in which category your credit score falls.
According to LendingTree, a good credit score is the one that ranges from 680 to 719 and the bad or poor credit score is the one that falls between 0 to 639 credit score. However, that’s not the case when we apply for a personal loan on different lenders like Avant which can allow the personal loan approval even with a 580 credit score.
What’s the Lowest Credit Scores for a Personal Loan?
Satisfying the minimum requirements or say eligibility is mandatory to qualify for a personal loan. The credit score is one of the main factors that could either have a good or bad impact of your loan status. The more credit score you have, the merrier.
Below are some credit scores that are considered to be lowest for a personal loan:
Low Credit Score: 400, 410, 420, 440, 450, 460, 470, 470, 480, 490, 500, 510, 520, 530, 540, 550, 560, and 570.
If you have a credit score of 580, lenders like Avant will welcome you to be lent the loan you have been craving for. Does your credit score match with the ones stated above?
If affirmative, it may be hard for you to qualify for a personal loan because most of the loan companies require you to have at least a credit score of 650 or more. The more the credit score goes, the better and easier it becomes for you to get the qualification.
How much does it cost the Fair Credit Score 2019?
According to a survey done by NerdWallet, the borrowers who have bad or lowest credit end up paying a higher rate – around 20% than those borrowers whose credit score is quite good. Also, the interest rate, along with the term of the loan will put an impact on the monthly payments that you will be paying (after you are lent the loan).
If you’ve borrowed a personal loan with long term, the monthly payments will be lower, but the interest will be more. If you want an exact number to check out the cost, perhaps, you should use a calculator to find out the cost you will need to pay for a personal loan.
Low Credit Scores for Unsecured Personal Loans
When you borrow an unsecured personal loan, nothing is used as collateral like you have to put your car or other assets as collateral. What on earth is considered for an unsecured loan then? Well, your creditworthiness is all that it takes for the lender to be confident that you will be able to pay your debts on time.
What are the factors that come into play when qualifying for an unsecured personal loan? Well, there is nothing more than what is needed when qualifying for a secured personal loan – i.e. credit score, income, and debt-to-income (DTI) ratio. In this area – in case of unsecured personal loans – a better credit score might be needed than the one needed for a secured loan.
Apparently, the low credit scores for an unsecured personal loan is like that of a secured loan or perhaps a little bit higher because secured loans are backed by the collateral, whereas, the unsecured loans aren’t. Also, the requirements for the score may vary depending on the lender that has agreed with your credit score.
Low Credit Score Personal Loan Lenders
What are the lenders that can allow you to get a personal loan even with the lowest credit score (i.e. bad credit score)? If you’re struggling with getting a successful personal (secured or unsecured) loan approval, don’t let the anxiety take over you because even with the bad FICO credit score, you can be considered for the qualification by some personal loan lenders. You don’t only have to consider checking the interest rate, but also the “APR” which stands for ‘Annual Percentage Rate’.
The higher an APR is, the more expensive the loan will be for you. Our experts recommend that you always choose a personal loan with the lowest APR possible. But again, the better your credit score is, the more probability there is for you to have a lower APR because the annual percentage rate (APR) increases as the credit score decreases.
To experiment this, we used a tool by NerdWallet and we found out that the APR only changes as any reflection in the credit score is noticed – i.e. nothing happens to APR if you try to change the loan amount or loan term. So, try to get a personal loan with the lowest APR possible or you will end up paying more for your personal loan.
If you’re struggling with the ‘Lowest Credit Score for Personal Loans’, you can consider the following loan lenders:
|Loan Lender||Estimated APR||Credit Score||Loan Approval|
|Avant||9.95 to 35.99%||580||Apply Here|
|LendingClub||6.95 to 35.89%||600||Apply Here|
|Upgrade||7.99 to 35.89%||620||Apply Here|
|Upstart||7.69 to 35.99%||620||Apply Here|
|Prosper||6.95 to 35.99%||640||Apply Here|
|FreedomPlus||5.99 to 29.99%||640||Apply Here|
You can try other personal loan lenders as well like our editor’s choice – LendingTree, or you could get a personal loan from Payoff, Citizens Bank, or perhaps from Sofi.
I believe that you’ve now understood how the “Lowest Credit Score for Personal Loan” impacts your overall status while. If you want to increase the chances of approval, our recommendation is that you should try to maintain your credit score.