September 27, 2022

Our goal here at Credible Operations, Inc. NMLS 1681276, hereinafter referred to as “Credible”, is to provide you with the tools and confidence you need to improve your finances. While we promote products from our creditor partners that compensate us for our services, all opinions are our own.

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A low credit score does not preclude the possibility of a personal loan. Some lenders offer personal loans for people with a credit score of just 550, which is considered a bad score. But these lenders usually charge higher interest rates to offset the risk of lending to a bad credit borrower.

Here is some more information about personal loan options if you have a 550 credit score.

Reliable makes it easy compare personal loan rates from different lenders, all in one place.

Can I get a consumer loan with bad credit?

Some lenders offer loans to consumers with bad credit, but you’re more likely to get higher interest rates and less favorable terms than people with good credit. All lenders have different credit rating requirements, but scores below 600 for the FICO and VantageScore credit scoring models are generally considered poor or very poor.

If you are struggling to qualify for a personal loan with decent interest rates because you have bad credit scoreAdding a guarantor with a good credit history to your personal loan application can improve your chances of getting lower interest rates.

Best Personal Loans for 550 Credit Score

The following two trusted partner lenders accept personal loan applicants with 550 credit points:

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Avant

  • Minimum credit rating: 550
  • Loan amounts: from 2,000 to 35,000 USD
  • Loan conditions: 2 to 5 years
  • Fees: Creation fee

OneMain Financial

  • Minimum credit rating: Nobody
  • Loan amounts: from 1500 to 20 000 USD
  • Loan conditions: 2 to 5 years
  • Fees: Creation fee

Best personal loans for credit scores up to 600

These six trusted partner lenders accept credit scores from 550 to 600 for personal loans:

Best Egg

  • Minimum credit rating: 600
  • Loan amounts: $2,000 to $50,000
  • Loan conditions: 2 to 5 years
  • Fees: Creation fee

LendingClub

  • Minimum credit rating: 600
  • Loan amounts: $1,000 to $40,000
  • Loan conditions: 3 or 5 years
  • Fees: Creation fee

credit point

  • Minimum credit rating: 580
  • Loan amounts: from 2000 to 36 500 USD
  • Loan conditions: from 2 to 6 years
  • Fees: Creation fee

Universal Credit

  • Minimum credit rating: 560
  • Loan amounts: $1,000 to $50,000
  • Loan conditions: 3 to 5 years
  • Fees: Creation fee

Update

  • Minimum credit rating: 560
  • Loan amounts: $1,000 to $50,000
  • Loan conditions: from 2 to 6 years
  • Fees: Creation fee

Upstart

  • Minimum credit rating: 580
  • Loan amounts: $1,000 to $50,000
  • Loan conditions: 3 to 5 years
  • Fees: Creation fee

Visit Faithful to see your pre-qualified personal loan rates from different lenders without affecting your credit.

Other lenders to consider

The following two lenders are not Credible Partners, so you won’t be able to easily compare your rates with them on the Credible platform. But they are also worth considering if you are looking for a personal loan with a credit score of 550.

NoCredit

  • Minimum credit rating: Does not disclose
  • Loan amounts: $1,000 to $10,000
  • Loan conditions: 6 to 60 months
  • Fees: Initial fee (in some states)
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timely

  • Minimum credit rating: Does not disclose
  • Loan amounts: $300 to $12,000
  • Loan conditions: 24 to 54 months
  • Fees: Creation fee

Methodology

Credible evaluated top personal loan lenders for a 550 credit score based on factors such as customer experience, minimum fixed rate, maximum loan amount, financing time, loan terms and fees. Credible’s team of experts collected information from each lender’s website, customer service, and email support. Each data point has been checked to make sure it is up to date.

How to apply for a consumer loan with a credit score of 550

If you are going to apply for a personal loan in the near future and have a credit score of 550, you can put these plans on hold until you can improve your credit. The higher your score, the easier it is to qualify for loan products and receive higher interest rates.

Opening secured personal loanA secured credit card or credit building loan can help you improve your credit before you apply for an unsecured personal loan. You can also become an authorized user of a family member’s credit card to improve your credit score.

When it’s time to apply for a personal loan, the application process may look different depending on which lender you’re applying with. But usually you can expect the following steps:

  1. Shop around. Research different lenders to find those that lend to borrowers with lower credit scores.
  2. Get pre-qualified. Once you’ve found a few lenders, fill out their pre-screening forms to see what rates and conditions you might qualify for.
  3. Fill out an application. Most lenders have online applications that are quick and easy to complete. You will need to provide information to verify your identity and income, such as a copy of your government-issued photo ID, recent pay stubs, tax returns, or bank statements.
  4. Close on a loan and receive funds. Once you have been approved for a loan, you sign a loan agreement and the lender will pay your funds, usually by direct transfer to your bank account. You will then start making loan payments as agreed.
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Remember that you also have the option to apply with a guarantor. If the guarantor has a good credit score, this can help you qualify for higher interest rates because the lender can be sure that someone with a good credit history will be responsible for making loan payments if you are unable to.

If you are ready to apply for a personal loan, Credible makes it quick and easy for you compare personal loan rates to find one that works for your situation.