Loan Options With A 400 Credit Score
Loan options with a 400 credit score are likely to be limited but that does not mean they do not exist. We'd like to shed some light on the options and how you can go about getting financed even with a 400 credit score.
Your credit score is one of the most important factors when it comes to loan approvals. For most of us, we all end up applying for loans at least once in our life, whether it’s personal loans, student loans, mortgages, business loans, auto loans, etc. Besides, our credit score affects our loan interest rate too. However, for some, it may not be an easy task to maintain a good credit score. So, what do you do when you need to apply for a personal loan but your credit score is 400?
What Does a 400 Credit Score Mean?
There is a solution to this, but first, let’s talk about what is considered a good credit score and a bad credit score. Good credit scores and bad credit scores As per Fair Isaac Corporation (FICO) Score, the most popular and commonly used score by lenders, a credit score below 580 is considered a bad credit score. On a score from 300 to 850:
300 to 579 is considered “very poor”. 17 percent of Americans fall under this category.
580 to 669 is considered “fair”. 20 percent of Americans fall under this category.
670 to 739 is considered “good”. 22 percent of Americans fall under this category.
740 to 799 is considered “very good”. 18 percent of Americans fall under this category.
800 to 850 is considered “exceptional”. 20 percent of Americans fall under this category.
Loan options available to you with a 400 credit score, you fall under “very poor” category If you fall under the “very poor” category, which is a credit score of 300 to 579, it is highly unlikely that you will be approved for a loan at all by traditional lenders. The lower your score is, the more difficult it is to find lenders. However, it’s not entirely impossible.
There are reliable and trusted lenders that will approve your personal loan application even with a bad credit. The best part is that such lenders will run a soft credit inquiry first to see the rates they can offer you depending on your current score. So, no damage will be done to your current credit score.
So What Are My Loan Options with 400 Credit Score?
We works with lenders all over the country to attempt to get people approved for unsecured installment loans. Even people with a 400 credit score. Our lenders do not run a hard credit check and look at your credit score. Now this does not mean you will be approved but it does not automatically get you declined. The whole loan application can be completed from the comfort of your home on your computer or smart phone. Learn More Here.
Local Pawn Store
Local pawn stores do not care what your credit score is, 400 or 800. They simply loan on the value of an item you bring into the store. They keep that item in the store until you pay off all monies owed on it. If you do not make the payment then that item becomes inventory of the pawn store and they will attempt to sell it.
A new option that technology has made possible is peer to peer lending. With these groups someone you do not know lends you the money and you have to pay them back. There are lots of different options and lending conditions. Here are a few you can learn more about: Upstart, Funding Circle, and Peerform.
Maybe the most scary loan option if you have a 400 credit score, but also one has proven to work. If you are backed into a corner and have exhausted all resources maybe it is time to pick up the phone and start calling family members. Seems like we have all been in this boat at one time or another. Thanks Grandma!