Where Can I Get an Unsecured Personal Loan With a 500 Credit Score

12 Top Loans and Credit Cards for 500-550 Credit Scores

Credit scores are important numbers as they determine your eligibility for the credit market and obtaining payday loans. The FICO eight-point rating system ranges from 300 to 850, with 580 indicating the line between good and bad credit. We will review the top loans and credit cards for people who have 500-550 credit score requirements

It’s not difficult to get a bad credit score. One or two mishaps that result in accepting much of credit, paying payments in arrears, or seeing the payday loan placed in collection, could hurt your credit profile,  credit score, and credit reports to the degree that you’ll be unable to have access to any credit at all.

It’s never too late to start implementing prudent financial habits that increase your creditworthiness.

A crucial part of repairing your score on credit is proving that you can manage debt by cutting down on how much you owe and paying all your bills punctually and completely. It’s not easy to show creditworthy behavior if you’re not able to get credit.

However, even if your score falls between 500 to 550, you can get specialized credit and loans sources, such as those we have reviewed here, which will help you build your credit.

Personal Loans A credit score between 500 and 550

Personal loans from the sources reviewed can be obtained by those who have poor credit. These loans can be helpful for those who require more cash than the amount you get through a cash advance. The terms of personal loans could vary from a few weeks to many years.

The loan is repaid in equal-sized installments throughout a set amount of months. Personal loans with a short term can require a single payment within two to four weeks.

Find out more about our recommendations for the top loan matching service that provides loans to consumers with bad credit.

  • MoneyMutual

MoneyMutual is an online service that provides cash advances for the short term, up to $2500. These loans are outstanding for those who need money to pay for your next pay period if you’re eligible to receive the loan profits deposited in your account within as little as 24 hours.

The lenders who are part of the MoneyMutual network will require you to have a regular income from your paycheck, Social Security payment, or other means of earning. 

If you can prove a steady income source, you can overcome negatives such as a poor credit score or the collection of debt, default on loans, or bankruptcy, and receive money to cover any shortfall that may arise.

It is also possible to get an installment loan that is longer-term with a maximum of six months by contacting MoneyMutual. In contrast to cash advances, which are repaid in one go, An installment loan allows you to break up repayments into regular amounts.

To qualify in the event of an installment loan, you’ll need to prove an income at a minimum of $800 per month and also have a bank account.

If you will get it, you could consider taking out a rather of a cash advance, consider a bad credit installment loan from Money Mutual as the installment loan allows you more time to pay it back.

If you’re in a hurry to repay the cash advance and you are late, you could be subject to the payment of late fees and other charges, which could send you spiraling into a spiral of debt.

  • CashUSA.com

CashUSA.com collaborates with lenders who offer and get a personal loan term of three to 72 months for amounts as small as $500. The lenders in the CashUSA.com network can provide personal loans that range from $500 to $10,000.

You must be at least 18 years old, you must be a U.S. citizen or permanent resident, and the holder of a bank account to fill out the online application on the site. 

There may be additional requirements for lenders. If you’re granted a loan, the lender will outline the loan amount along with rates and conditions. It is possible to receive your loan funds within a few days or two following approval.

Lenders will take charge of your checking account each installment. It’s possible to extend your payment if you do not have enough money to fund your checking account. 

You should be prepared to pay additional fees for an extension if you require one. However, it can help you avoid negative marks on the credit score for the late or missed payment.

  • CreditLoan.com

CreditLoan can assist you in finding personal loans ranging from 250 to $5,000, irrespective of the credit rating. This loan service will give you a prompt response after you have submitted a loan application. 

Once you’ve been approved, the lender will transfer the loan to your account within as little as a single day.

CreditLoan provided loans in 1998 to more than 750,000 people. Naturally, the lender will determine the terms and rates based on your income, as well as other aspects. It is possible to use the site’s calculator for loans to estimate the monthly installments.

The lenders of the CreditLoan network specialize in lending to consumers who have credit scores less than 630. This loan service does not recommend applicants who are in bankruptcy proceedings or already have a loan outstanding.

Applying for a personal loan will broaden the credit portfolio if you’re already using a credit card. This is a good thing since it is responsible for 10 percent of your score. Additionally, timely installment payments will help to build your credit score.

Credit Cards: 500-550 Credit Score

When your score falls between 500 and 550 range, obtaining credit is easier to do than said. Some issuers specialize in providing credit cards for those who have bad credit. These cards come with no-frills, higher interest rates, and fees, as well as lower credit limits.

But, these credit cards offer people who have bad credit an opportunity to start building credit. Take a look at the three cards to determine which is the right choice for you.

  • Fingerhut Credit Account

If you’re searching for an easy-to-obtain account, take a look at this credit card from Fingerhut. Account. This revolving credit account allows you can make purchases through online retailers like Fingerhut.

This account can report your payments at the credit bureaus of three. This provides you with a significant chance to boost your credit by making sure you pay your bills in time.

Suppose you are not eligible to be eligible for this Fingerhut Credit Account. If you do not, the retailer will automatically consider your eligibility as a candidate for the Fingerhut Fresh Start Installment Loan

If you’re approved, you’ll be eligible to fund your Fingerhut purchase of $50 or greater with 30 percent down.

Usually, you have between up to six months to finish paying off the Fresh Start Installment Loan. The timely payment will reflect positively on your credit reports and will help improve your credit score in the future.

  • Total Visa credit cards that are not secured

The Total Visa Unsecured Credit Card is among the most reputable suppliers of secured Visa credit cards to people who have poor credit. If you’ve got a check or savings account, you could be approved within 60 seconds of applying.

It’s not surprising that a variety of fees are affixed to this The Total Visa Secured Credit Card, which includes an annual program fee and an annual fee and, after one year of use, there is a monthly service fee and a cash advances fee. 

Although no one would like prices, keep in mind that they give the issuer the cash flow needed to cover the risk for cardholders who have bad credit.

If you require cash advances, you can use the Total Visa Unsecured Credit Card requires that the account is in use for at minimum 90 days or three calendar cycles of payment, whatever comes more. Must have a clear history of timely repayment.

Could be eligible for a more significant credit line after 12 cycles of billing, minus payment due to late. You may request the limit increment, or the issuing bank could offer it unannounced. If it is granted, the increase will result in the payment of a single fee.

  1. First Access Visa Card

Another credit card option for people with bad credit is the First Access Solid Black Visa Credit Card. It is possible to get it when you’re 18 or more, reside within the U.S., and have an account at a bank.

Fees include a one-time set-up fee as well as an annual cost which decreases after the following year. The monthly service fee and cash advance fees are not charged in the initial year.

The First Access Solid Black Visa Credit Card will report your transactions to the three credit bureaus. Being punctual with your payments, in total, could aid in rebuilding your credit in the future. If you do this effectively, you will eventually apply for credit cards at no high cost.

Auto Loans Credit Scores: 500-550

Many car owners opt for title loans whenever they require fast cash. But, they are costly and risky. The best way to get cash is to set up refinancing your car with cash. 

The amount you can borrow is the same as the equity in your vehicle. This will be the sum of the value of the vehicle and the balance of your loan.

You can also apply for a new car loan to buy the next vehicle. When you refinance cash-out or an auto loan for the first time, the car is used as collateral to the installment loans.

It can be seized when you don’t pay on time. The lenders we examine here are specialized in loans for people who have bad credit.

  1. Auto Credit Express

It’s difficult to find a traditional lender that will accept auto loans if your credit score falls in the 500-550 mark. Auto Credit Express helps fill the gap that lenders like credit unions, banks, and other lenders to auto-loan customers who have bad credit.

Auto Credit Express works with a group of dealers in the automotive industry who are willing to provide loans that others aren’t. The company has stood through the rigors of history, offering over $1 billion worth of bad-credit loans from 1999.

Be prequalified for an auto loan through Auto Credit Express in less than an hour. A U.S. citizen earns $1,500 per month in pretax earnings. You must also possess a valid driver’s license.

Auto Credit Express is a direct marketing company that targets consumers with no credit history, bad credit, consumer debt, or bankruptcy. The final approval of your loan rate, terms, and rates will be contingent on how auto dealers you choose to respond to your request for a loan.

  1. Car.Loan.com Auto Loan

Car.Loan.com has helped make auto loans with bad credit since 1994. It assists you in searching for auto loans by letting you complete a quick form for requesting financing. Your details will be matched to the correct dealer, who will decide if they want to accept your request.

The huge Car.Loan.com network accepts those with thin, weak, or even no credit. Being denied previously an auto loan shouldn’t be an obstacle to getting acceptance. The lending network can recommend local dealers in all U.S. locations.

Within one or two days, you could expect to receive the first signal that a lender would like to offer you a loan. Instead of focusing solely on your score on credit, Car.Loan.com dealers look at the factors that are important to them, such as a stable income, a secure home, and an active driver’s license.

  1. myAutoloan.com

The myAutoloan.com network will provide you with up to four loan deals in just a few minutes with its partners. 

You may apply for the loan to purchase a brand new or used car or refinance the current vehicle. You may also arrange the financing of lease-purchase as well as private sales.

The process begins by filling out a quick request for a loan. myAutoloan.com sends requests to lenders on its networks and sends you the links to interested dealers. 

A bad credit score is not a problem in the case of dismissed or discharged bankruptcy cases.

To be eligible, you must be earning at least $1,800 per month. You must also have to have a credit score of 525 or more. The minimum amount you can borrow or refinance is $8,000. 

Additionally, the vehicle must not be more than ten years old and have a maximum mileage of 125,000 miles. The lender will decide the specific terms and conditions.

The period is 30 days in which you can decide which loan offer you are offered. However, there is no obligation to choose one of them. It is the myAutoloan.com service that has been connecting lenders with borrowers since. The network isn’t accessible in Alaska as well as Hawaii.

Home Credit with a credit score of 500-550

Your home is likely to be the biggest purchase you’ll make. It’s no surprise that getting a mortgage is a significant deal. It involves a substantial amount of money, a lot of documents, a 30-year commitment, and a symbolic ceremony referred to as the closing.

Bad credit is not a benefit when it comes to applying to get a loan; however, the three sources above show that it’s not a problem.

When your credit score falls between 500 and 550 and you are in the 500-to-550 range, you could make it easier to qualify for a mortgage by saving an enormous down amount. 

If you can pay 20 percent, you won’t be required to pay for mortgage insurance, monthly savings that could easily reach $100.

There’s a chance that you don’t have the 20 percent down payment; however, when you have a minimum of 10 percent down, you may be eligible to get the FHA loan.

If you have a score of 580+, it is only 3.5 percent down to qualify for the FHA loan, which is why it’s beneficial to improve your score before applying.

  1. LendingTree

LendingTree was among the first services for home loans that offered peer-to-peer lending being founded in 1997. Through this lending method, LendingTree brings together lenders and borrowers that can provide you an equity loan, mortgage, line of credit refinancing loan, reverse mortgage.

The advantage of peer-to-peer lending is that you can receive up to five offers within just a few minutes. In the LendingTree commercials, “May the best loan win.”

This can come in handy if you’re a victim of bad credit because you can receive offers from lenders that are willing to offer more interest to those who have low credit scores.

LendingTree has helped arrange greater than 250 billion worth of loans from over 55 million loan applications. In addition to managing mortgages for homeowners, LendingTree matches lenders and customers for personal loan, student loans, small-business loans, and auto loans.

In addition to conventional loans, LendingTree permits you to get FHA, USDA, and VA loans. Certain lenders will require a credit rating higher than 560. In contrast, others will let you apply if you meet other criteria like debt-to-income ratios, at minimum 3%, or steady employment with a sufficient amount of income over the last two years.

  1. FHA Rate Guide

In 2004, the company was founded. FHA In 2004, the FHA Guide is an online directory service for lenders of home loans. More than 2 million customers have utilized this service to refinance or obtain mortgages.

FHA is the acronym for Federal Housing Administration, a federal agency that guarantees mortgages on homes. The agency has insured more than 46 million mortgages in the years since 1934. If a borrower is in default on an FHA loan, the agency will pay the mortgage.

FHA loans are specifically designed for people with moderate to low incomes. They have lower credit scores as well as lower down payments that are lower than conventional mortgages.

It is necessary to make an initial 10% down payment for credit scores between 500 and 579, while more advanced scores only require 3.5 percent down. The down payment may be made from savings or gifts from your family members.

You are required to pay the mortgage insurance (MIP) installments each month until the equity in your home is greater than 20% of the value. In general, MIP insurance costs 0.85 percent of the loan.

FHA Rate Guide is owned by LeadPoint, Inc. It is a non-biased source of information on online mortgage loans. The directory service is ideal for those who wish to contact lenders by themselves rather than being automatically connected to suggested lenders.

  1. The VA Guaranteed Home Loan program

The U.S. Department of Veteran Affairs (the VA) offers home loans to active military personnel, Reserve and National Guard members, and veterans. The VA also guarantees to refinance loans with cash-outs.

VA guarantee loans can be provided through private lenders such as credit unions, banks, and mortgage financing companies. VA loans are accessible to everyone eligible regardless of credit scores.

VA-guaranteed home loans require no down payment for homes worth less than their appraised value. VA loans offer higher interest rates and better terms that are better than those offered by conventional loans.

A VA loan lets you take out loans up to the limit of conforming loans set by the Federal Housing Finance Agency. In 2019, the limit was $484,350. However, for areas with high costs, the limit is $726,525.

VA loans don’t require mortgage insurance and can be financed with less closing fees. To get the VA credit, one needs to apply for an official certificate of eligibility (COE) available to veterans and military personnel who have met the minimum active-duty time requirement. This usually lasts for 90 days. Once you have a COE, you are eligible to apply for any mortgage company that is participating.

The VA also provides cash-out refinance loans to those who reside in the house that is being refinanced. You can use your home equity to pay off the loan and convert an existing non-VA loan into one that is a VA loan. The new mortgage typically has higher rates and terms than those offered by non-VA loans.

FAQ’s about Credit Loans for Bad Credit Loans

There may be a lot of questions regarding bad credit loans. Here are the solutions to some frequently asked questions.

How bad is a Credit Rating of 500?

According to the FICO 8 scoring system, scores vary between 300 and 850. Scores of less than 500 are considered to be very inadequate, which is significantly below the average. 

Ninety percent of consumers have credit scores that are higher than 500. Around 16% of people have credit scores within the extremely low range of 300-579.

According to Experian, the number of those in the poor category are likely to default on payment on loans over 90 days. Additionally, 19% of those with a 500 credit score were in arrears for more than 30 days in the past ten years.
A typical credit card balance for customers with a 500-plus rating is $2.734. The same group also has an average rate of credit utilization (CUR) which is 113.1 percent. 

The percentage of the credit used to credit available implies that the 500-score group is averaging an amount of debt more outstanding than the credit they have authorized.

What is the Easiest Credit Card to apply for with Bad Credit?

Typically the store cards are straightforward to acquire. Out of the three credit card options discussed here, the Fingerhut Credit Account is the easiest to obtain. The reasons are specific.
In the world of credit cards, secured cards are the most convenient for those with low credit. They are secured by cash collateral which you can deposit into a secured account. Your credit limit will not be greater than the amount of money you have deposited.
If you’re in the process of making payments, the issuer will charge your account to make the payment. If you fail to make payments on multiple dates, the issuer may end the card. 

Secured cards are accessible to anyone with a credit score, and the rate of interest is usually lower than those of unsecured cards.
The Total Visa Unsecured Credit Card and The First Access Solid Black Visa are designed for those who have less than perfect credit. Both are open to applicants within the 500-550 credit score range. However, both have various charges.
The credit limit for the first time for each card is $300with, the exception of the setup cost. The cards both report activities with the credit agencies. This allows you to increase your score by making sure you pay punctually and not over the limit.

Which Loan Company Is Best for Bad Credit?

If you’re looking for the most convenience when you apply for a personal loan, MoneyMutual, CashUSA.com, and CreditLoan match your loan request with lenders who are on their networks. While none of these companies provide direct loans, these companies can connect you to at least one lender with vast experience working with low-credit customers. There is no cost for this service, and if a lender accepts you, getting the money can be completed quickly, often within a single business day.

Another alternative is LendingTree which is a market leader in the peer-to-peer (P2P) market for loans. It offers a variety of loans, such as personal loans as well as home loans. P2P loans are direct exchanges between lenders and borrowers that are conducted via the internet-based marketplace. Because of the many varieties of lenders who can be found in this LendingTree market, those with low credit could likely be eligible for some or all deals.

Another option to obtain an instant cash loan could be refinancing your house or vehicle. If you do this, you can convert funds into cash and possibly even receive better rates. Auto Credit Express is our best auto loan matching service. It will find you an auto dealer willing to provide you with the refinancing loan, despite having the fact that you have a poor credit score.

If you are looking to refinance your house and are eligible to receive an FHA loan, The FHA Rate Guide offers a comprehensive list of lenders that can help your needs. Military personnel and veterans have the opportunity to avail themselves of fantastic cash-out refinance loans through the Home Loan program that VA guarantees. Since home and car refinancing loans are secured by the property used to fund them, they can be accessed at a low cost to consumers.

How Do I Increase my Credit Score within only 30 days?

There are many ways you can gradually increase your score on credit over six months to one year. They include reducing the amount of debt you owe and making your payments on the due date while keeping your old accounts open.

Other ways to boost your credit score is to consolidate your debt to an interest rate that is lower contact your creditors to negotiate existing loans, and automate your payment so that you don’t skip a payment, and regularly utilize credit cards that you have had for a while, and avoid opening new accounts when you already have sufficient credit.

If you’re serious about an improvement of 30 days in your score on credit, think about the Experian Boost product, which claims to speedily increase the FICO – 8 score by an average of 13 points. It connects with your account at a bank and lets you receive a credit to pay your phone and utility bills.

If your credit score is low and results from an absence in credit score, then adding accounts can quickly boost the credit rating. It is possible to do this by applying for a new credit card. It can be secured or unsecured. After approval, you can use this new account and make sure to settle the outstanding balance each month.

Another option is to be an authorized user of another credit card. You will immediately inherit the credit limit of the card, which will decrease the ratio of your credit utilization. As time passes, timely payments can benefit both you and the primary owner to improve your credit score.

The Bad Credit You Have Shouldn’t Be A Permanent Mark on Your Financial Situation.

In our analysis of credit and loans that can be used with a 500-550 credit rating, we’ve listed our choices of the top bad credit personal loans, auto loans, credit cards as well as home loans. It is important to note that having a poor credit score is not an inexplicably negative impact on your finances.

Whatever your credit score is, you can begin to rebuild your score by making intelligent decisions. Your reward may be easy access to credit with lower costs as well as the possibility of acquiring these luxurious credit cards with high rewards.

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