Did you know that the average size of a personal loan in the United States is $6,382?
When you’re in a financial pinch, taking out on a personal loan can give you instant access to cash. However, if you don’t have the highest credit score, you may be worried about the likelihood of you getting approved for a personal loan.
Are you wondering, ‘how can I get a loan with bad credit?’ If you’re looking for the answer to that question, you’ve come to the right place! Keep reading to learn more.
What Is Considered a Bad Credit Score?
The lowest that a FICO credit score can be is 300, and the highest that it can be is 850. Most credit lenders will consider a bad credit score to be 670 or below.
To break this down further, your credit score will be considered fair if your score is between 580 and 669. However, if your credit score is 579 or below, your credit score will be considered poor.
How Can I Get a Loan With Bad Credit?
Bad credit loans are an option for people who have a low credit score. Whether you’re looking to get this personal loan to make an emergency car repair, to pay a medical bill, or to replace a broken appliance, you don’t have to give up applying for a loan if you have a low credit score.
Here’s a closer look at the range of credit scores and their rating:
- Excellent- 760 to 850
- Very good – 700 to 759
- Fair – 660-699
- Poor – 620-659
- Very poor – 620 or below
For you to access a loan that has a low-interest rate and improved loan terms, you’ll need a high credit score. If you fall into the range of fair, poor, or very poor, lenders will likely burden you with high-interest rates.
Depending on how low your credit score is, there’s a chance that you may not be approved for a loan at all.
Some of the best options you should consider looking into if you have a bad credit score include the following:
- Credit unions
- Friends or family
- Using a co-signer
- Use your home’s equity
If you’re still having trouble getting approved for a loan with bad credit, you should check out getting an approval from bonsaifinance.com.
Understanding How to Get a Personal Loan With a Bad Credit Score
Having a bad credit score (or even no credit score) makes it tricky to get approved for a loan. The good news is that it isn’t impossible! Having someone with an established credit score co-sign your loan, going through a credit union, or tapping into your home’s equity will increase your chances of getting approved for a personal loan.
Are you still wondering, ‘how can I get a loan with bad credit?’ We’ve got more information on how to repair your bad credit score on your blog. Check out our other articles to learn more today!