Yes, it is possible to get a personal loan with a credit score of 550. You may want to consider getting a secured loan, applying for an unsecured loan with a co-signer, borrowing from family and friends, or consulting with local credit unions, which usually have lower credit score requirements. Some personal loan lenders are willing to work with borrowers who have credit scores of 550 or less. For instance, the minimum credit score for an Avant personal loan is 550, and OneMain Financial does not require any minimum credit score. When speaking to potential lenders, make sure to ask if they offer loans insured by the Federal Housing Administration (FHA).
Loans backed by the FHA are available to any borrower with a credit score of 500 or higher. This means that if your score is 550, you can apply for an FHA loan that requires only a 10% down payment on the home purchase price. It is possible that a prospective borrower has a low credit score due to limited credit activity. In other cases, they may have no credit score due to lack of credit history. If you are approved for the loan with a lower (or no) credit score, you may be subject to a higher interest rate.
OneMain Financial generally accepts applicants with at least a bad or fair credit score (the exact minimum credit score is not disclosed, but as a reference, a bad credit score is between 300 and 579 and a fair credit score is between 580 and 669). Loan proceeds are deposited into your bank account in as little as 24 hours. In general, short-term loans will have less stringent credit requirements than installment loans, but short-term loans charge much higher fees and must be repaid in full on the due date. Lenders reserve the right to refuse your loan application if they consider you to be too risky of a borrower. If you want to refinance your home and qualify for an FHA loan, the FHA Rate Guide provides a directory of lenders who can help you. When it comes to secured loans, the borrower uses another asset as collateral in case they do not repay their loan in full.
The lender can then confiscate this asset if necessary. Your reward may be easier access to more affordable credits, as well as the ability to purchase high-reward credit cards. As you can see, 30% of approved borrowers with a credit score of 550 (or lower) use an employer letter as proof of income. You have 30 days to choose one of the loan offers you receive, but you are not required to select any of them. It's easy to see that FHA-insured mortgage loans generally offer the highest ratings, regardless of your credit score.
Prepaid credit cards are not linked to a line of credit and requesting one will not affect your credit score in any way. Whether you choose cash-out refinancing or a new car loan, the vehicle serves as collateral for the installment loan and can be repossessed if you do not make timely payments. Credible makes it easy to compare rates from personal loan lenders who are willing to work with borrowers who have poor or fair credit. Every reasonable effort has been made to keep the information accurate; however, all credit card information is presented without guarantee. When trying to buy a home, mortgage lenders tend to rely heavily on your credit score when determining whether or not you qualify for a home loan.