What personal loans can I get with a credit score under 500?

It is possible to get for a personal loan with a credit score as low as 500 and a poor credit, but your choices are very limited. The best way to get a personal loan with a 500 credit score is to start by checking to see if you pre-qualify for loans from major lenders. Checking to see if you pre-qualify won't affect your credit score, so it's worth a shot to see if you're eligible for a decent deal.... read full answer

If you don't pre-qualify, your best options may be to apply with a no-credit-check lender or take out a secured personal loan. Unsecured personal loans that do a credit check during the application process usually require a credit score of 585 to 700+ for approval. Other ways to get a personal loan with a credit score of 500 include borrowing from a friend or family member, applying for a loan with a cosigner, and looking into options from local credit unions.

Ways to Get a Personal Loan With a 500 Credit Score

See if you get pre-qualified

The best way to see if you're likely to qualify for an unsecured personfal loan with a 500 credit score is to check for pre-qualification. WalletHub's free pre-qualification tool will let you know your approval odds and potential interest rates with multiple lenders at once, with no impact on your credit score.

No-credit check personal loans

These are a good option for people with a credit score of 500 because the lender does not take your credit score into consideration when you apply. The tradeoff is that they tend to be more expensive than personal loans that do a credit check. The best no-credit check personal loan providers include OppLoans and Integra Credit.

Apply with a cosigner

Some personal loans let you apply with a co-signer, which is a person who promises to pay back the loan if you don't. The cosigner's credit and income impact the lender's decision more than those of the primary applicant, so it can help people with a credit score of 500 get approved for loans they might not normally qualify for.

Try credit unions

Credit unions often have more lenient personal loan approval requirements than banks and may be willing to consider applicants with bad credit. You can find credit unions in your area on WalletHub and consult with them to see if you have a shot at approval.

Friends and family

People you have a close relationship with won't necessarily care about your credit score, and may be willing to lend to you. There's also a good chance you'll get better and more flexible terms than you would with a traditional lender.

Secured personal loans

These loans are attainable with a credit score of 500 because they require collateral that the lender can keep if you default on the loan, so there's relatively little risk for the lender. A lot of secured personal loans will require you to use money in a bank account as collateral, but some will accept other types of collateral, like a vehicle.

The best personal loans for a 450 credit score are from OppLoans or Integra Credit. These companies specialize in lending to people with bad credit and won't even do a credit check when you apply for a loan.

It's important to note that any personal loan you get with a 450 credit score is likely to have a very high APR and an expensive origination fee. If possible, you might want to try to borrow money a less costly way, such as from friends and family. If that's not an option, the following lenders offer the most competitive terms.... read full answer

Best Personal Loans for a 450 Credit Score in 2023

• OppLoans
• Integra Credit

Keep in mind that getting a personal loan with a 450 credit score is not guaranteed. When making a decision on whether or not to approve you, a lender will look at your whole financial profile, including things like your income, existing debts, housing status and more.

The minimum credit score for personal loan approval is 580, depending on the lender. That means it is possible to get an unsecured personal loan with a bad credit score, though such a loan will likely have an origination fee.

For your reference, WalletHub researched some of the most popular lenders to find out more about their specific loan requirements.... read full answer

Credit Score for Personal Loan Approval by Lender

*According to multiple third-party sources.

Your credit score is a measure of how risky it is for lenders to let you borrow money. The higher your score is, the better your chances of approval are and the better terms you’re likely to receive. Your credit score comes from a combination of factors that include your payment history, credit utilization, length of credit history, recent inquiries, and diversity of accounts.

But your credit score is far from the only thing that matters when it comes to personal loan approval. Lenders consider many other factors, including your income, existing debts, monthly expenses and more.

The minimum credit score needed for a personal loan with no origination fee and no collateral requirement is 660, which is fair credit. And borrowers will need good credit or excellent credit – a credit score of 700 or higher – to get the best personal loan rates. Personal loans for credit scores under 700 tend to be for relatively low amounts and have high APRs.

If your credit score is below 585, lower in the bad credit range, you still have options. For example, you could opt for a secured loan, where you put up something valuable as collateral. If you fail to pay back the loan, the lender can take the collateral as compensation. Because this greatly reduces the risk for the lender, people with any credit score may be considered for secured loans.

You can check your credit score for free on WalletHub. You’ll also get personalized advice for how to improve your score. The best way to estimate your odds of approval for a personal loan is to check to see if you’re pre-qualified for any offers before submitting an official application.