You might be able to get a personal loan with a credit score of 580. It depends on a variety of factors, including things like where you apply, what your income is and the purpose of the loan. There are times in life when a personal loan makes sound financial sense. You might need to pay medical bills, pay tuitions costs up front or wish to make a financial investment. Personal loans can also be used to pay off credit card debt, finance home remodeling or construction or even to take a vacation. Before you apply for a personal loan, you probably want to know if you’re eligible for a personal loan with a credit score of 580. Here is some information that will help you decide if you should try for the loan.
Credit Score of 580: Can I Still Get a Personal Loan?
If you find out that your credit score is 580, you may wonder if you can still quick get personal loan online. In fact, there is a good chance that you may qualify for a personal loan up to 10k.
Credit companies are often willing to work with individuals who are trying to improve their financial circumstances. If you’re thinking of getting a personal loan, it’s likely for a good reason, such as paying off your credit cards and consolidating your debt.
Consolidating debt makes good financial sense. It often leaves you with a lower monthly payment, which can be more manageable for you and your family. It’s easier to make one monthly payment than several. It’s hard to keep track of multiple payment due dates each month. With a credit score of 580, there’s a good chance that when you submit your application, you’ll be approved. Remember, it depends on where you apply.
Some lenders can be very strict about minimum credit scores. But as long as you work with a quality lender who is willing to give you a chance with a credit score of 580, you have as good a chance as anyone. When you get your loan, just be sure to use it wisely. If you’re frivolous with the money, you may find it disappears quickly.
Try to only spend it on what you had in mind when you applied for the loan. And most important of all, be sure you make your repayments for the personal loan on time every month. Many people find that enrolling in an automatic payment plan each month is very convenient.
Is a Credit Score of 580 Good or Bad?
Almost everyone has a credit score. It’s based on your income history, your debt-to-income ratio, how well you pay your bills on time and other factors. Because everyone has a credit score, the credit companies are able to formulate calculations that rate how any particular score is compared to the national average.
Credit scores range from zero to 850. If you’re applying for a personal loan with a credit score of 580, that score is considered “fair.” Don’t be disheartened, though. A score between 300 and 579 is considered “very poor.” At least you aren’t in that category! Just so you are well-informed, a credit score between 670 and 739 is considered “good credit.” A credit score between 740 and 799 is considered “very good.” A credit score between 800 and 850 is considered “excellent.” Remember that credit scores change monthly. You have a chance to increase your credit score over time by paying your bills on time and being responsible with your debt.
There are a variety of ways to raise your credit score. One way is to pay off some debt if you can. This will improve your debt-to-income ratio, which is one of the factors that plays into your credit score. This is a reason why getting a personal loan to pay off debt can be such a smart financial move.
Tips for Getting a Personal Loan With a 580 Credit Score
To get a personal loan with a 580 credit score, it’s smart to try to take some steps before you apply:
✓ Work on Your Credit Score
Try to pay off old debts, remove errors from your credit reports and try to generate extra income to improve your debt-to-income ratio
✓ Consider a Secured Line of Credit
A secured line of credit is kind of like a loan, but it’s secured by an asset, such as your car. A record of timely payments will help increase your score.
✓ Try a Less Than Prime Lender
A less than prime lender will have less strict criteria for lending money. They often charge higher interest rates, but again, if you repay on time each month, the benefits of a higher credit score may make borrowing from a less than prime lender worth while. Less than prime lenders are even more likely to offer you a personal loan with a credit score of 580.
What Credit Score Do I Need for a Personal Loan?
Before you make the decision to apply for a personal loan, it helps to understand what the lender will be looking at when they make their decision. The first thing you should do is to check your own credit history. This will make you feel more in control and let you know where you stand. You can get one free credit report each year from each of the three major credit bureaus: Experian, Transunion and Equifax.
To do, just log in to each company and answer a few I.D. verification questions. Depending on your individual circumstances, you may be able to get copies of your credit report online. Otherwise, they’ll mail you a copy you can review.
Review your credit reports carefully once you receive them. Look for any errors or omissions. Errors include things like a credit card that you closed out but it shows it’s still open. Omissions include things like payments you made that aren’t showing up on the report. If you find issues, contact the account company directly and ask them to correct your credit report.
If you don’t get satisfactory restitution that way, contact a credit company that helps consumers resolve debt issues.
See Your Credit Score
Next, find out your credit score. This can be found on your credit reports. You may also be able to view your credit score while logged into one of your credit card accounts online. Many credit card companies are now offering this service to their customers. If you think that you might be able to get a personal loan with a credit score of 580, you can then move on to applying for a personal loan.
The lending company will likely have some guidelines listed for loan applicants. This may include a minimum credit score that they will accept in order to grant a personal loan. Realize that each lender will have their own lending criteria. So if you get turned down for a loan, don’t be discouraged. You may be the ideal loan applicant somewhere else!
Personal Loans for Bad Credit and Fair
There are all kinds of people in this world. Some have excellent credit, and others have fair credit or even bad credit. Thankfully, there are loan programs available for almost everyone. If you or someone you know has fair or bad credit, there may still be a chance to get a personal loan from short term loan lenders. A personal loan for a person with bad credit can be a real benefit. It enables the person to possibly pay off some old debts and start to get back on their feet again financially. With cash loans bad credit may become a problem of the past.
The question is, can you get a personal loan with a credit score of 580? Absolutely! However, you should still go through all of the advice mentioned above so that when you do apply, you’re in the best possible position to be accepted. A personal loan can be transformative. If you’re approved, you may feel like a great weight has been lifted from your shoulders. If you use your borrowed money wisely, the next time you check your credit score, you may find that you’ve made a very positive difference in your financial profile.
Blaine Koehn is a former small business manager, long-time educator, and seasoned consultant. He’s worked in both the public and private sectors while riding the ups-and-downs of self-employment and independent contracting for nearly two decades. His self-published resources have been utilized by thousands of educators as he’s shared his experiences and ideas in workshops across the Midwest. Blaine writes about money management and decision-making for those new to the world of finance or anyone simply sorting through their fiscal options in complicated times.