If you have excellent credit, you have plenty of opportunities for a personal loan with an attractive interest rate. If you haven’t established a credit history or have credit that’s less than perfect, qualifying for a personal loan isn’t quite as easy. Here’s how to qualify for a personal loan with a 600 credit score.
Is 600 a Good Credit Score?
The most common scoring model known as FICO has a range of credit scores between 300 and 850. If your credit score is 600, you fall in the range of scores that are considered “fair”. While you don’t have the worst possible credit, your score is below average. That means some lenders won’t be willing to give you a personal loan and the ones who do may charge high-interest rates or fees to protect the lender from taking a risk on a borrower with a history of credit issues.
Getting a Personal Loan with Fair Credit
Since it’s likely you’ll pay a high-interest rate when you have fair credit, shop around to find out which lenders offer loans to borrowers with less-than-perfect credit and compare rates and terms. Many of these lenders offer online prequalification so you can find out if you would qualify without having multiple credit inquires hit your credit report.
Avoid predatory lenders such as payday lenders. The rates on these loans can be as high as 35% or higher and many come with a very short repayment period.
Things That May Help You to Qualify for a Personal Loan
One of the best ways to improve your chances of being approved is to apply with a co-signer. A co-signer is a friend or family member who is willing to agree to repay your loan if you become unable to make your payments. If you know someone who is willing to do this, it can be beneficial as long as they have good credit.
Some credit unions and banks are more lenient than others when it comes to approving a borrower with fair credit for a personal loan. If you have an existing account with a bank or credit union, they may be a good choice for applying for a personal loan.
Improve Your Credit Before Applying
Another way to get better terms is to work on improving your credit before applying for a loan. If you have any loans that are past due, focus on getting them caught up. If you have high balances on credit cards, do what you can to pay them down.
Also, check your credit report to make sure that the information being reported is accurate. Errors on a credit report can impact your credit score and can make it harder for you to get approved for a personal loan. If you find any errors, Dovly can help you dispute them with the credit bureau so you can sit back and relax.
Dovly is an AI credit engine that can help you track and fix your credit. Try it risk-free with our free membership tier. Contact Dovly today.
