Are you in need of cash now? Whether you want to consolidate your debt, pay for home improvements, or even take a family vacation, there are ways to get the cash you need. Getting approved for most personal loans comes with its own set of challenges, but we are here to help!
What do Lenders Check When Qualifying for a Loan?
Typically, lenders will perform a credit check to make sure you are able to pay off the loan.
Your credit score indicates how likely you are to repay debt, therefore making this one of the main factors creditors look at to determine your eligibility.
Your credit score should be at least in the range of 550-600 to be considered for a loan. If you have a credit score higher than this, that’s great. Your credit score can determine the interest rate you are going to pay on the loan. With a higher credit score, you can expect to pay a lower interest rate. On the other hand, if you have a poor credit score, you will have a higher interest rate. As a rule of thumb, to be considered for a loan with fair interest rates, your score should be between the 620-700 range.
How Can You Get a Loan with a Low Credit Score?
Are you afraid that your loan can be rejected because of your low credit score? Don’t worry. Getting a personal loan with a low credit score can be challenging but not impossible.
Here are a few ways:
- Fix Your Score if Possible:
First and foremost, there are many ways that you take hold of your credit score now. Start the process of rebuilding your credit today. Your future self will thank you.
- Get a co-signer:
In the meantime, if you are needing a loan, get a co-signer. A co-signer is someone who signs with you saying they are responsible for the loan if you are unable to pay. Having a co-signer makes it much easier to get approved for a loan.
- Apply for a smaller loan:
A creditor may feel better approving a loan when the amount is smaller. Higher loan amount approval can be riskier for a creditor.
Finding a loan with a reasonable interest rate can be hard, especially with bad credit. However, following these tips will increase your chances of getting approved for a loan. All in all, it’s important to ensure you have enough funds to repay. If not, your credit score can deteriorate further.
If you are someone who needs regular access to funds, choosing a line of credit is a great option. At Advance Financial, you can get approved for a line of credit as soon as the same day you apply.* Interest is charged only on the funds you use and not on the total approved amount. A line of credit offers flexibility, and you are able to pay it back on your own time. The line of credit stays open, so you don’t have to continue reapplying, allowing you to get the cash you need whenever you need it. Apply now and get up to $4,000 instantly!*
Bank Participation is required.*
