Q. Can I get a loan with bad credit scores?
Whereas an unsecured loan doesn’t require any kind of security, but they charge a higher interest rate to cover up for the risk lenders are taking.
The answer to this question depends on how poor the credit score is. You might be able to get smaller loans on poor credit scores because they are easily approved.
On the contrary, some lenders might be willing to lend as much as $25,000 even with a bad credit score. However, you will be charged with a high interest rate to compensate for the poor credit score.
So, you might get an emergency loan with bad credit scores, but you will have to pay back a huge sum if the loan amount is huge. Therefore, you should apply for $1,000 only if you need $1,000.
Make sure you have your financial record with you before applying for an emergency loan. So, it is preferred that you keep your bank statement and proof of earning with you before applying for a loan.
This will require you to make lower interest payments, and your loan application is more likely to get accepted
Furthermore, the eligibility criteria usually require the borrower to be above 18. So you should have your identity card, or driver’s license scanned to save time.
If you think your financial standing is weak, you can justify the distress by explaining the problem. In addition, if you need the emergency loan for an accident or medical bill, you can attach the documents to highlight the severity of the problem.
Q. According to FICO, is 600 a poor credit score? No. 600 is considered fair however it doesn’t lie in the range of a good score. So, if your score is less than 600, then consider it poor.
If you aren’t eligible for interest-based loans or your credit rating is too low to find a loan, then you can do two things to deal with financial distress.
Firstly, you can sell off your valuable assets to fund your unexpected expenses.