Can you get a personal loan with a credit score of 550?
Lenders have different criteria for offering personal loans, so there’s no certain threshold that means your credit scores will get you approved for a loan. In general, people who have a FICO® Score 8 or FICO® Score 9 of at least 670 or a VantageScore 3.0 or VantageScore 4.0 of at least 661 are considered to have good credit or excellent credit, which means they may find it easier to qualify for a personal loan.
A personal loan can give you a way to pay for major expenses when you don’t have the cash on hand. However, a personal loan may impact your credit score either positively or negatively,
What do lenders look at when making a decision?
Lenders will certainly take into account more than just your credit score when applying for a small loan, Just keep in mind that the higher your credit score is, the better your rates will be from most lending companies.
So what are the steps I can take to increase my credit score?
You likely have dozens, if not hundreds, of credit scores. That’s because a credit score is calculated by applying a mathematical algorithm to the information in one of your three credit reports, and there is no one uniform algorithm employed by all lenders or other financial companies to compute the scores. Let’s take a look at the steps you can take to increase your score:
- Pay your bills on time
- Get Credit for Making Utility and Cell Phone Payments on Time
- Pay off Debt and Keep Balances Low on Credit Cards and Other Revolving Credit
- Apply for and Open New Credit Accounts Only as Needed
- Don’t Close Unused Credit Cards
- Don’t Apply for Too Much New Credit, Resulting in Multiple Inquiries
- Dispute Any Inaccuracies on Your Credit Reports
Personal loans have become very popular; if you’re looking for options for short-term loans in Houston, make sure to do your due diligence and shop around for rates before committing.