Low Credit Score Loans

The credit scores compiled by the three big credit bureaus in the United States affect our ability to get loans. People with low credit scores have a harder time getting loans. They also often end up paying higher interest rates on the loans that they do get.

Credit scores can affect a person’s ability to get a loan because they reflect the amount of risk that a lender takes when they make a loan. A person with a higher score is considered a good risk while a person with a lower score is considered a bad risk.

A person with a lower credit score can usually get a loan but they will usually have to pay a higher interest rate. Lenders may also impose stricter terms on people with lower credit scores.

How to Get Low Credit Score Loans

Generally, a person with a low credit score will be able to get a loan if they can demonstrate that they have the income to pay the loan off. Lenders know that credit scores don’t reflect a person’s income - instead they are a record of a person’s history of paying off loans and bills in the past.

A person who can present evidence that they have a good income can usually get a loan. Such evidence consists of bank records, pay stubs and perhaps notes or letters from an employer.

Raise Your Credit Score

It is possible for a person to raise their credit score which can make it easier to get a loan or get better terms on a loan. There are several ways of doing this, the best is to order your credit report and take a look at it. If you see any false or inaccurate information you can contact the credit bureau and challenge that information. You can order your credit report by going to www.freecreditreport.com

Look for a Lender That Specializes in Low Credit Scores 

There are many lenders that specialize in making loans to people with low credit scores. These lenders are willing to over look low credit scores or work with people to raise their credit scores. Some of these lenders may make lower interest rates available to people who can demonstrate that they have good income.

The best place to find lenders that specialize in working with people with low credit scores is online. Simply type the words low credit score loans into a search engine and you should be able to see a list of such lenders.