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Can I Get A 550 Credit Score Loan?
Personal loans are a common solution when it comes to major purchases, home repairs, high medical bills, and other unexpected expenses. While individuals with good and excellent credit scores can easily get funded, those with credit below 670 often face difficulties applying for loans.
The good news is it is still possible to get an unsecured personal loan with a bad or poor credit history. We have prepared a list of the best personal loan lenders who can provide you with a 550 credit score loan.
Best Personal Loans For 550 Credit Score
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information and social security number
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Optional fees (up to 6%)
- Low interest rates
- Co-applicants are allowed
- No prepayment penalties
- Flexible loan amounts
- Interest rate discounts are available
- Multiple repayment options
- No origination fee
- Good credit is required for better loan terms
- Hard credit check if you continue your application
- Late fees might apply
- No co-signer option available
- No physical branches
One to three business days
Applicants with good to excellent credit scores who want to consolidate debt, make major purchases, or cover their long-term needs.
SoFi is a financial website that provides unsecured personal loans. The company doesn’t specify its minimum credit score requirements, but most of its borrowers have credit ratings of 680 and higher. Loans from SoFi are also accessible with a co-borrower with good to outstanding credit. Personal loan candidates need to have a sufficient income and a low debt-to-income ratio.
SoFi does not do credit checks on its customers when they prequalify for a loan. Instead, it examines applicants’ whole financial situation. The company offers reasonable interest rates and flexible repayment terms to qualified borrowers.
- No prepayment penalties
- No origination fees
- Low interest rates
- APR discounts
- Co-applicant option available
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Origination fees up to 12%
- $15 late fee
- $15 NSF fee
- Quick access to loan funds
- No prepayment penalties
- Flexible monthly payments
- Soft credit check when prequalifying
- Flexible loan amounts
- Origination fees up to 12%
- High maximum annual percentage rate
- Co-signers aren’t allowed
- Hard credit checks for final approval
- Limited repayment loan terms
One business day (same-day funding available)
Poor credit borrowers who can’t qualify for traditional personal loans
Upstart is a financial platform that enables borrowers with low credit to get personal loans with flexible payback options. Its key advantage is same-day funding.
Upstart does not do hard credit checks when you prequalify. In addition, customers can apply in the morning and receive their personal loan by the end of the day.
- Quick funding (same-day deposit available)
- Available to borrowers with poor credit
- Soft credit checks when viewing your rate
- Be a U.S. citizen, a permanent resident, or living in the U.S. on a valid visa
- Be at least 18 years old (19 in Alabama and some other states)
- Give a working email address
- Provide valid bank account details
- Confirm a sufficient monthly income to cover your loan payments
- Origination fees: 1.85% to 9.99%
- Late payment fees: $10
- Non-sufficient funds fees: $10 per payment returned
- No prepayment penalties
- Multiple rate discounts
- Next-day funding
- The due date may be changed
- Direct payments for debt consolidation
- APRs may be high
- Origination fees are charged
- Late fees may be applied
As soon as one business day after clearing verification
Fair-credit borrowers who need the money quickly
Upgrade is an online financial service that offers up to $50,000 loans to borrowers with good to fair credit. It provides several interest rate reductions and allows you to add a co-applicant or collateral to your application. Choose it if you need money quickly and are not concerned about relatively high interest rates.
Upgrade offers convenient maximum and minimum loan amounts along with flexible repayment terms. It also accepts fair credit borrowers and provides several interest rate discounts.
- Rate discounts for auto pay, direct payment, and reward checking
- Allows to add a co-applicant
- Mobile app for managing your loan
- Be a U.S. permanent resident
- Live in a qualifying area
- Be at least 18 years old
- Have a valid email address
- Have a valid personal checking account
- Provide income confirmation
- Origination fees: 1% to 5%, depending on your state
- Cash advance fees: 10%
- Late payment fees: vary by state
- Non-sufficient funds fees: None
- Next-day funding
- No application fees or prepayment penalties
- Bad credit is accepted
- Flexible repayment terms
- Convenient minimum loan amounts
- Very high APRs
- Low loan maximums
- Origination and late payments fees may be charged
- Not available in all states
Next business day
Borrowers with bad credit in need of fast cash
NetCredit helps bad credit borrowers qualify for personal loans and credit cards. Despite fast approval and funding, APRs and fees are high. Additionally, NetCredit is unavailable in 14 states.
NetCredit offers cheaper alternatives to regular personal loans and provides bad credit individuals with more flexibility. Additionally, it has fast funding times and allows borrowers to improve their credit.
- The ability to change the due date;
- Refinancing with the same lender in some states;
- Credit-building opportunities.
- At least 18 years also
- Permanent US resident
- Income confirmation
- Valid bank account or debit card.
- Origination fees: 1% to 10%, or $25 to $500, depending on the state
- Late payment fees: $5 to $30, or 1.5% to 15% of your loan amount
- Non-sufficient funds fees: $10 to $50 per payment returned
- Joint and secured loans are available
- Wide range of loan options for low credit
- Pre-qualifying doesn’t affect your credit score
- Convenient options for debt consolidation
- Relatively high interest rates
- Charges origination fees
- APRs are not disclosed when pre-qualify
- Not available in all states
Within one business day of approval via a direct deposit. Funding within several hours may be offered if you receive the funds on your debit card.
Borrowers with credit issues who want to avoid predatory lenders.
OneMain Financial is a reliable financial service that offers personal loans between $1,500 and $20,000 without minimum credit score requirements. With its joint applications, flexible repayment terms, and soft credit checks for pre-qualifying, it can suit borrowers with bad credit. Interest rates are usually high, though.
The company offers a wide range of secured, unsecured, and joint loan options with flexible repayment terms. Its personal loans are available to underbanked borrowers.
- Direct payment to creditors for debt consolidation
- Loan cancellation within 7 days
- Fast funding
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Origination fees, prepayment penalties, or other fees may be applicable
- Prequalification for multiple personal loans on one platforms
- Low minimum interest rates
- Fast funding (same-day direct deposit may be available)
- High maximum interest rates
- Extra fees may be applied
- The company’s partners may perform a hard credit check
- Data privacy concerns
One business day (same-day funding available)
Borrowers with bad credit scores who want to consolidate debt or cover other significant expenses.
LendingTree serves as a handy platform for seeking personal loans. It allows borrowers to explore a variety of loan offers in one place. Many lenders that partner with LendingTree can provide loans swiftly. However, borrowers with bad credit scores typically get high interest rates.
LendingTree has accreditation from the Better Business Bureau, a non-profit group dedicated to customer safety and trust. The BBB rates LendingTree as A+, a symbol of excellence. The BBB’s decisions are based on how a company reacts to customer gripes, truth in marketing, and openness about company procedures.
- The ability to compare multiple loan offers in one place
- Loan funds in one business day
What Are Personal Loans And How They Work?
A personal loan is a form of installment loan, which means you borrow a lump sum of money and pay it back with regular payments over a set period of time. You can use a personal loan to fund a home improvement project, consolidate debt, or cover any other personal needs.
Many personal loans are unsecured, meaning they don’t require collateral. However, choosing a secured loan may help you qualify for the loan and possibly even get a lower interest rate and more convenient loan terms.
The repayment period for personal loans is typically between 12 and 84 months. Interest rates generally start at 5.99% but can exceed 36% APR, especially for borrowers with lower credit scores. Some lenders may also charge an origination fee, which is deducted from the initial loan amount.
Is 550 A Good Credit Score?
No, a 550 credit score is not considered good. A 550 credit falls into what’s known as the deep subprime range. The Consumer Financial Protection Bureau classifies any score below 580 as deep subprime. Also, the Fair Isaac Corporation, a company that is widely known for its credit scoring model, classifies scores of 579 and below as poor.
In the FICO score, which is the type most commonly used by lenders, credit scores between 300 and 579 are the lowest and considered poor or bad credit.
We recommend you check the specific lender’s eligibility criteria to understand their credit score requirements and know whether you qualify for their personal loans with a 550 score.
Do You Qualify For A Personal Loan With A 550 Credit Score?
With a FICO credit score as low as 550, you are not able to get a personal loan through most banks. Traditional lenders typically ask borrowers to have a credit score of at least 600 to get approved. However, many online lenders can still approve you.
With a low credit score, you can rely on so-called bad credit loans. They usually come with higher interest and less favorable terms, which makes borrowing less advantageous. The amount you can borrow and the repayment terms can be limited.
The Cost of 550 Credit Score Loans
Personal loans for a 550 credit score typically cost more than borrowing options designed for good credit borrowers. This happens because lenders set higher APRs to offset the risks associated with bad credit, such as a higher probability of late or missed payments and loan defaults. Therefore, 550 credit score loans often have interest rates as high as 36% or even exceed this number.
Some borrowing options may come with APRs of over 200%, making borrowing very expensive. BadCredify recommends you avoid these costly products as they come with multiple risks and excessive overpayment.
Another factor that affects the total cost of the loan is the length of the repayment period. When choosing a longer term, you reduce your monthly loan payments but increase the total cost of borrowing.
Here are several cost examples for a $5,000 loan for a 550 credit score:
| APR | Repayment Term | Monthly Payment | Total Cost | Total Interest |
|---|---|---|---|---|
| 29.8% | 18 month | $347.85 | $6,261.3 | $1,261.3 |
| 29.8% | 60 months | $161.15 | $9,669.2 | $4,669.2 |
| 35.99% | 18 month | $363.52 | $6,543.32 | $1,543.32 |
| 35.99% | 60 months | $180.63 | $10,837.95 | $5,837.95 |
While these calculations are for illustrative purposes only, you can use our simple loan calculator to figure out how much your particular loan will cost based on the terms offered to you by your lender:
Loan calculator
ESTIMATED MONTHLY PAYMENT
TOTAL LOAN AMOUNT PAID
TOTAL INTEREST PAID
TOTAL COST OF LOAN
How To Obtain A Personal Loan Online?
To apply for a personal loan online, you need to take the following steps:
Step 1. Check the lenders’ eligibility criteria
Many lenders have minimum credit score requirements, so this step is crucial to know whether you are eligible.
Step 2. Prequalify with multiple lenders
Many online providers offer prequalification to their clients. Choose lenders with suitable terms and the criteria you can meet and complete a simple form to review your potential loan terms. This process doesn’t affect your credit score.
Step 3. Compare your options
Analyze personal loan offers from several financial institutions to compare them and choose one with the most favorable terms.
Step 4. Apply for a loan
After choosing a lender, start your application process. Fill out an online form on the lender’s website and submit it. Bad credit lenders usually require your basic personal information, ID, Social Security number, bank account details, address confirmation, and proof of your income (bank statements or tax returns).
Step 5. Wait for approval
A lender will review your loan details for eligibility, typically via a hard credit check, to see whether you meet its requirements. If approved, it will send you a contract.
Step 6. Review your loan agreement
Read your loan terms carefully and contact a provider if you have any doubts. Make sure you understand their interest and fees and can manage payments before signing.
Step 7. Get funded
Wait for the money in your bank account on the same or the next day after approval. In some cases, the deposit time may be longer.
Pros Of Bad Credit Loans
People choose bad credit personal loans due to the following benefits:
- Flexible loan usage: Poor credit personal loans can be used for any purpose, from large purchases to home renovations and financing a family vacation.
- Quick funding: Online lenders process applications and deposit funds quickly, sometimes on the same day of approval.
- Credit building options: If you have poor credit, making timely payments may help rebuild it. Since payment history significantly contributes to your FICO score (35%), regular payments can positively impact your score over time.
Cons Of Bad Credit Loans
Although a bad credit loan can help you borrow money fast regardless of your credit score, you should understand several drawbacks of this financing option before applying.
- Higher annual percentage rates (APRs): Borrowers with less-than-ideal credit scores often face higher interest rates. They can be as high as 36% or even exceed this number.
- Additional fees: Low credit loans often come with higher fees to reduce the risk for lenders. This includes origination fees for processing the loan and potential penalties for late or early repayment, all contributing to a higher overall APR.
- Collateral requirements: With a poor credit score, you might be asked to provide collateral to qualify for a loan. This means if payments are not made as agreed, there’s a risk of losing the valuable asset.
Alternatives To A Personal Loan
While personal loans offer a variety of benefits, they won’t be right for everyone, especially those with poor credit. Here are alternative options to consider.
Loan From Family Or Friends
Consider borrowing from someone you know who is more likely to lend money to you. Your close friends or relatives may be happy to help you overcome financial difficulties. They don’t need your credit report to decide whether to lend you money.
Although family loans allow you to avoid interest rates and fees, make sure to repay the debt within the set period. Otherwise, you may ruin your relationship with your close ones.
Credit Card
If you have a credit card with an available limit, this may be a better choice than a personal loan. The interest rate on your card might be lower than what you would qualify for with a bad credit personal loan. Be sure to compare the card interest rates and fees with those from various personal loan lenders before deciding on the right option.
Debt Management Plan
If you’re dealing with credit card debt or can’t comfortably manage your loan payments, a nonprofit credit counseling agency can come to the rescue. In many cases, such an agency will help you negotiate a debt management plan, which can lower your interest rates and accelerate your debt repayment.
Cash Advance Apps
For small emergency cash needs that can be repaid in a short period of time, consider fee-free cash advance apps. They allow you to borrow between $50 and $500 against your next paycheck. Be sure to read all the fine print, and watch out for fast-funding fees that may increase the overall cost of a loan.
No-Credit-Check Loans
No-credit-check loans, such as payday loans, may be a great way to get cash fast. However, you should be careful and use them only as a last resort. The excessive fees and rates might not be worth it. Some payday loans carry fees and rates that can add up to an aggregated 400%, as reported by the Consumer Financial Protection Bureau. Additionally, they need to be repaid in full within just 2 to 4 weeks.
Financial Assistance Programs
If you need to take out a personal loan for essentials like utilities or rent, you may be able to obtain alternative assistance. Call 211, and you will be connected to local community resources that can help you through your time of financial hardship.
How To Improve Your Credit Score?
The best way to qualify for a personal loan with competitive interest rates and convenient repayment terms is to work on improving your credit score. The following steps can help you achieve this goal:
Why Choose Us?
BadCredify streamlines the process of comparing multiple loan offers from trustworthy lenders to help you find a product that fits your needs perfectly. Our smart comparison tool allows you to review your personalized borrowing terms within minutes without any impact on your credit score. We also provide impartial, honest reviews of lending companies and thoroughly evaluate each loan category to give you all the information you need to make an informed choice.
We have looked at loan offers from over 40 lenders. Our experts confirmed every detail by reaching out to their customer support teams and verifying the information they provided. To gain more insights, we have also tested each lender’s pre-qualification process to compare their potential loan terms with what was stated on the company’s website.
Our evaluations are always neutral, and we don’t take any fees from the lenders we assess. Our primary goal is to help borrowers feel confident in their lending choices and compare various offers quickly. By filling out our straightforward form, you can access multiple customized loan deals from trustworthy providers who are ready to help you right away.
FAQ
What can I get with a 550 credit score?
A 550 FICO credit score is considered bad by many lenders. So, you can qualify for bad credit or no-credit-check loans or consider a secured personal loan. Payday loans, car loans, and personal loans for bad credit may be your solution.
How can I increase my credit score from 550 to 700?
To improve your credit score of 550, check your credit report first. It may contain mistakes you need to dispute. Then, prioritize making on-time payments for your bills, reduce your credit utilization, and avoid hard credit inquiries.
What does the FICO credit score range look like?
The FICO score ranges are as follows: 300-579: Poor or Bad Credit; 580-669: Fair Credit; 670-739: Good Credit; 740-799: Very Good Credit; 800-850: Exceptional Credit.
Can I get approved for a personal loan with a credit score of 550?
Yes, you can. While most banks and credit unions don’t finance people with low credit, many online lenders offer bad credit personal loans. However, be prepared to get a lower loan amount and less convenient repayment terms. You are also likely to be charged higher than average personal loan rates.
How much can I borrow with a 550 credit score?
The exact sum you can borrow with a 550 credit score depends on the lender, repayment period, your income, loan type, and even state. While some loan providers offer 550 credit score loans of up to $1,000, others can lend you as much as $50,000 or even more. The main thing you should do is to find the right lender and demonstrate the ability to repay the borrowed amount on time.
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