Yes! It is possible to get a personal loan even with a credit score of 550 or below. The difficult part is finding one that offers you the money you need with favorable terms and a good interest rate. The best way to get a good loan that suits your needs will be to improve your credit score.
Having a credit score of 550 or below might make life difficult. Any credit score below 580 is considered poor credit in most cases. But just because your credit score is 550 doesn’t mean you can’t get cash quickly if you have a financial emergency. Everyone runs into a financial hardship at some point in their life. Maybe your car broke down, or you just got an unexpected bill in the mail. Whatever the situation is, there are times when a little extra cash could go a long way.
When these situations arise it can be tough to know exactly where to turn. Luckily, there are financing options out there for these exact situations. While you may not qualify for a traditional bank loan or credit union loan, there are alternative lenders out there that offer quick cash to borrowers in need. Here are the most common ones available to you if your score is 550 or below:
Personal Installment Loans – These are unsecured, personal loans designed for borrowers with less-than-perfect credit. You may be offered several hundred dollars, up to several thousand depending on your specific situation and the laws in your area. Typically, borrowers have more time to repay these than payday loans.
Payday Loans – These are small, unsecured loans that borrowers usually have to repay within two weeks or by their next payday. They tend to carry high interest rates which can make them difficult to repay on time.
Title Loans – These are secured loans, which means that you’ll be required to offer collateral in order to be approved. The collateral for a title loan is the title to your vehicle. This means that if you can’t repay the loan, you may lose your car.