If you’ve ever applied for a credit card, taken out a car loan, or financed a house, you’re probably familiar with credit scores. You may have heard that credit scores range from as low as 300 to as high as 850 – and the higher the score, the better. Typically, borrowers with credit scores of 580 or above may be more likely to qualify for a loan. But what happens when your score is lower than that? You might be wondering, “Can I get a loan with a 500 credit score?” Though there is no single answer to this question, MaxLend will help explain how a credit score can impact a loan.
500 Credit Score Loan
Before explaining how you might apply for a 500 credit score loan, we will discuss the factors that lenders consider when qualifying potential borrowers. Many factors may come into play – and different lenders may look for different things.
Don’t mistakenly assume that your credit score is the only factor. Credit history, which includes how long you’ve had credit and how often you’ve paid things back on time, is also important.
A lender might also take collateral into consideration. Collateral is an asset used as security against a loan. For car and home loans, the cars and the homes are the collateral. Another name for loans of this type is secured loans.
Other factors that creditors may consider include your income and employment status. Lenders typically want to know that you have a regular source of income that you can use to repay the loan. They may also look at your debt-to-income ratio, which is how much you currently owe versus how much you are currently making.
If you’re still wondering about getting a loan with a 500 credit score, keep reading for more insight.
Loans for 500, 600, or Other Credit Scores
We’ve already explained how lenders look at more than a person’s credit score to decide if they’re eligible for a loan. But if you need loans for 500, 600, or other credit scores, you might worry that you won’t qualify.
Each lender has its own criteria. The only way to know if you will qualify for a loan is to apply with that lender and find out. If you apply but your application is rejected, don’t give up hope. The lender will provide you with information explaining why your application was denied. You can use that information to work on improving your credit.
If you’re looking for more in-depth information on how you can better understand your credit score and improve it, the Consumer Financial Protection Bureau is a U.S. government agency dedicated to helping people do just that.
Credit scores ranging from 580 to 669 are fair. If your score is lower than that, you could use this range as your first goal for improving your credit.
What if you did qualify for a loan? Congratulations – having a new loan will not only provide you with funding, but also could help build your credit history and possibly improve your credit score. Just ensure that you make all of your payments in full and on time so that you don’t have any derogatory marks added.
MaxLend Knows Money and More
At MaxLend, we understand people take out loans for different reasons. We also understand that not everyone has the best credit score. We loan money to people with all kinds of credit histories.
If you need a personal loan, MaxLend may be able to help. If you qualify, you could get funding as soon as the same day.* When it comes to providing quick, unsecured installment loans, MaxLend has experience. We provide small cash loans to people who need them.
It’s quick and easy to find out if you qualify for a MaxLend loan. Just apply online. You’ll find out right away if you’re approved.
Do you still have questions? At MaxLend, we have answers. Why not start by reading our frequently asked questions page? You can also give us a call at 877-936-4336. We’re available 24 hours a day, 7 days a week.
Do you wonder what others have to say about MaxLend? Read some MaxLend reviews and see what people like you have written about us. You can also learn more about our loan loyalty rewards program.
Then when you’re ready, apply for cash online today.
*Same Day Funding is available on business days where pre-approval, eSignature of the loan agreement and completion of the confirmation call, if a call is required, have occurred by 11:45 a.m. Eastern Time and a customer elects ACH as payment method. Customers who complete this process by 1:30 p.m. Eastern on business days may still receive funds on the same day, but some banks may not disburse the funds until the next business day. Other restrictions may apply. Certain financial institutions do not support same day funded transactions. When Same Day Funding is not available, funding will occur the next business day.