Borrowers with credit scores under 580 may be worried that they won’t get approved for a loan. But luckily, there are many loan options designed for poor-credit borrowers. Many of these loans come with easy online applications, quick approvals, and less strict credit score requirements. Read on to learn more about some same-day personal loans for borrowers with credit scores below 580 so you can compare lenders and find a loan that works for your needs and budget.
An installment loan is a loan for a lump sum of money that you can pay back in fixed monthly payments. The terms of these loans typically range between a few months to a few years, depending on the lender and loan terms.
Several lenders offer short-term poor-credit installment loans that borrowers can use to get fast funds and build credit. They’ll consider factors in addition to credit score, like income and employment history, when deciding whether to approve you. So, borrowers with credit scores under 580 may still get approved.
Lines of credit
Lines of credit are flexible loans that let you borrow money whenever you need to cover expenses. With these loans, the lender will give you access to funds up to your set credit limit, which can be withdrawn as needed. Then, you can pay back the amount you borrowed all at once or over time in minimum monthly payments. You’ll only pay interest on the amount you borrow.
It can be easy to find a line of credit for poor credit. Borrowers with credit scores under 580 should shop around and compare lenders to find a loan with less strict credit score requirements and terms that suit their needs.
Cash advances are small-dollar loans that can get you quick funds before your next payday. You’ll typically receive a few hundred dollars with this type of loan, and can pay it back in two to four weeks, when you get your next paycheck.
Many lenders offer cash advances for poor-credit borrowers, so you can qualify with a credit score under 580. Just keep in mind that cash advances can have higher interest rates, so make sure you can pay the loan back before applying.
With title loans, you can receive funds using your car as collateral. The lender will appraise your car and offer a loan amount worth a percentage of its value. If approved, the lender will hold onto your title, and you can keep driving your car as you repay the loan.
Since title loans are secured by collateral, it can be easier for borrowers with credit scores below 580 to get approved. But keep in mind that the lender can repossess your car if you default on the loan.
The bottom line
Don’t give up on getting a loan just because you have a credit score below 580. Many lenders specialize in giving loans to borrowers with poor and fair credit. Installment loans, lines of credit, cash advances, and title loans are a few types of quick and easy loans that you can get approved for. Do some research online and compare your options to find a loan that works for your needs and budget.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.