An excellent 550 FICO credit score is strong subprime, according to User Financial Protection Bureau. The Reasonable Isaac Company (FICO), that’s perhaps one of the most popular credit reporting tips, classifies credit ratings regarding 579 otherwise lower since the bad.
How lousy borrowing from the bank affects costs
Lenders select a lesser score given that an indication of risk. Therefore in order to counterbalance losings out of possible missed repayments or a good defaulted loan, loan providers will charge regarding attention in the event your debtor provides poor credit. Mediocre mortgage interest levels reflect this practice:
The way to get a personal loan with a 550 credit score
Acquiring good 550 credit rating loan tend to be tricky. It is vital to end up being thoroughly prepared to browse the process.
Do your research
- Avant: Avant gives to those that have credit ratings as low as 550.
- Upstart: Upstart kits zero minimum credit rating needs. Instead, the acceptance system talks about your income and you may training height, among other factors. Upstart try the brand new 2024 Bankrate Honours pick to own finest bad-credit financial.