Getting a loan with a credit score of 500 can be difficult and expensive. But sometimes, people need to borrow money regardless of their credit score. It is possible to qualify for a personal loan with a credit score of 500, but it is important to compare offers to find the right loan for you. In the credit card market, secured cards are the easiest for people with poor credit to get.
You can find local credit unions on WalletHub and check with them to see if you have a chance of being approved. These credit cards give people with bad credit an opportunity to start rebuilding their credit. The amount of your deposit usually determines your credit limit, and you can increase it by adding more money to your deposit. According to FICO, someone with a credit score of 780 could expect their score to drop to 620-640.
The amount you can borrow is equal to the equity you have in your car, which is the difference between the value of the car and the current loan balance. You can get a debt consolidation loan with a credit score of 500 if you apply with a lender that does not have a credit rating requirement. Experian reports that about 62% of very low-income consumers are likely to be behind on their loan payments for more than 90 days. eMortgage connects borrowers with lenders who can offer them a mortgage, refinance loan, home equity loan, or reverse mortgage.
Some personal loans allow you to apply with a co-signer, who is someone who promises to repay the loan if you don't. Additionally, 19% of consumers with a score of 500 have delayed their payments for 30 or more days in the past 10 years. Auto Credit Express helps fill the gap left by banks, credit unions and other lenders for consumers looking for car loans with bad credit. With a score of more than 580, you'll only need 3.5% down payment to get an FHA loan, so it's worth raising your score before applying.
The good news for consumers with a credit score of 500 is that there is plenty of room for improvement. Other relatively quick ways to improve your credit score include consolidating debt at a lower interest rate, contacting creditors to resolve existing debts, automating payments so that none are missed, regularly using old credit cards, and refraining from opening new accounts if you already have enough credit. While bad credit can be an obstacle when it comes to qualifying for loans and credit cards, having a low score does not always mean instant rejection from all creditors.