Bank Loans For People With Bad Credit (2024)

FAQs

Do banks give loans to people with bad credit? ›

You may be eligible to get a bad credit personal loan with a score below 580. Personal loan lenders specializing in bad credit loans may scrutinize your income and employment history more closely. Bad credit personal loans usually come with higher APRs and shorter terms, so you'll need to qualify for a higher payment.

Secured loans

With a secured loan, you'll have to offer your lender an asset as collateral, like a car, a home or even a savings account. Because secured loans require valuable collateral, they're often easier to obtain than unsecured loans and generally offer better rates, since the lender is at less risk.

However, borrowers with 500 credit scores will have a better chance of approval with the following loan types: Secured personal loans: Secured personal loans require you to pledge collateral, such as a vehicle, savings account, collectible, piece of jewelry, or even the fixtures in your home.

Ask Someone To Co-Sign

Getting a personal loan with a co-signer that has a strong credit score and a solid income can boost your application. Your co-signer – ideally, a family member or close friend – will apply alongside you, and you'll both be responsible for repayment of the loan.

Hardship personal loans are a type of personal loan that is designed to help you overcome financial difficulties. This type of loan is generally offered by small banks and credit unions, and has lower interest rates, lower maximum loan amounts, and shorter repayment periods than standard personal loans.

You can get a $500 loan in other ways in addition to some personal loans, such as via a cash advance on your credit card, a payday loan, or a loan app. A small loan like a payday loan can be useful in an emergency, but you will likely face higher interest rates.

With attractive interest rates, minimal documentation and speedy processing, Bank of Baroda Kenya offers among the best personal loans today.

To qualify for a personal loan, borrowers generally need a minimum credit score of 610 to 640. However, your chances of getting a loan with a low interest rate are much higher if you have a “good” or “excellent” credit score of 670 and above.

The easiest banks to get a personal loan from are USAA and Wells Fargo. USAA does not disclose a minimum credit score requirement, but their website indicates they consider people with scores below 640, so even people with bad credit may be able to qualify.

Personal loans up to $5000 are available online for borrowers with credit scores as low as 500, providing a fast way to access funds. Interest rates are higher for bad credit borrowers, often starting around 35%, but loans come with fixed rates and transparent terms.

Can I get a loan with a 450 credit score? ›

A 450 FICO^® Score is significantly below the average credit score. Many lenders view consumers with scores in the Very Poor range as having unfavorable credit, and may reject their credit applications. Applicants with scores in this range may be required to pay extra fees or to put down deposits on credit cards.

Get a secured loan

A secured loan is a type of personal loan that requires collateral. Because the lender can repossess your collateral if you default, lenders may be more willing to offer loans to bad-credit borrowers. You might also find that APRs are lower on a secured loan compared to a traditional personal loan.

You can often check your eligibility for a loan before applying to see how likely you are to get approved without affecting your credit score. Lenders may decline a loan application if you have a poor credit score, don't have sufficient income, or don't meet their eligibility criteria, for example.

If you're thinking about borrowing cash to stabilize your finances, a hardship loan is an option to consider. Below we discuss the best hardship loans and what you need to know to compare and apply for hardship loans when you have bad credit.

If your credit score is poor—your FICO score is below 580—lenders may be less willing to approve your loan application, or they may charge you higher interest rates or require collateral to back your loan.

Some may approve loans for scores as low as 580 or even 300, but scores above 640 often secure the best terms. Keep in mind that your credit score isn't a single number but varies based on different scoring models and lender calculations.

Requirements for a $5,000 loan vary by lender. But in general, you should have at least Fair credit, which is a score of 580 or above. Lenders may also look at other factors, such as your income and your debt-to-income ratio (DTI), during the application process.