350 Credit Score Personal Loan
A credit check is the most frequently used metric by lenders to determine whether or not to grant loans and in what terms. Credit scores are ranked from 300 (lowest) to 850 (highest) depending on an individual’s financial history. Having a credit score of 350 is among the lowest credit score one can have, and it often indicates severe payment problems in the past.
When you need a loan and have a credit score of 350, your chances of approval become extremely low as lenders are wary of your financial past. Nevertheless, you can still get a loan when you need one, but only if you know where to look for one and how to overcome the challenges involved.
Where to find a loan with a 350 credit score
Believe it or not, there are even some banks that may consider providing a loan to you despite having a 350 credit score. However, these are far and in between. First off, forget about the big banks and focus on smaller, regional and local banks. Also, do not expect to receive a 5-figure loan amount but always apply for less than $10,000. In case you need more than that to satisfy your needs, request the loan from multiple lenders and combine it thereafter.
Nevertheless, the most likely sources of a loan would be alternatives like online and P2P lenders. The first option, online lenders may be the most friendly to individuals with bad credit, and you should focus your energy on these sources.
Remember not to rush to the first lender that approves your loan request because there will be other options. Look around at all possible options before settling on one with the most favorable loan terms. Also, be cautious when sending loan requests to ensure that the lender does not perform a hard credit check because this can lower your credit score even further.
How to get the best loan terms
One thing will become a theme when you are looking for a loan with a 350 credit score – high interest. Due to the perceived unreliability you will have based on your credit score, lenders will raise interest rates to counter the risk of lending you money. Nevertheless, you can work your way around this and end up with a pretty manageable interest rate that won’t be too unfriendly.
Among the best ways to do this is to use some of your assets as collateral. These may include your home or car, and they will leverage the risk assumed by the lender in issuing the loan. Aside from that, requesting for a shorter loan repayment term will have the same effect and lower the interest you will be required to pay. However, this comes with higher monthly repayments that may be expensive to achieve.
For future loans, try to improve your credit score. There are several ways to do this, but one of the most simply way is to lower your credit card utilization ratio. You can either pay off existing debt, or open a new card to lower your utilization. Over time this will improve your score.
Most people forget about future loans once they get the one they desperately needed. Instead, focus on improving your own credit score so that future applications are not as difficult to receive approval and won’t suffer from high repayment terms.
Joseph Smith
Writer and editor
Joseph Smith is an experienced freelance writer with over 11 years of experience. His area of expertise includes finance, loans and lending. His work has been featured on various large websites including this one.
Read more about us »
