Introduction
Welcome to our article on 635 credit score personal loans! If you’ve landed on this page, chances are you’re looking for financial assistance, but you’re worried about your credit score. Luckily, we have good news: you don’t need a perfect credit score to qualify for a personal loan!
In this article, we’ll explain what a personal loan is, how it works, and why a 635 credit score won’t stand in your way. We’ll also provide you with a comprehensive guide on how to get a personal loan with a 635 credit score and what you can expect from the process. So, let’s dive in!
What is a Personal Loan?
Before we get into the details of how to get a personal loan with a 635 credit score, we need to define what a personal loan actually is. Essentially, a personal loan is a type of loan that you can use for any purpose you want. Unlike a mortgage or a car loan, which are specific to a certain asset, a personal loan gives you the freedom to use the money for whatever you need.
Most personal loans are unsecured, which means that you don’t need to put up collateral like your car or your home to get approved. Instead, the lender will look at your credit score, income, and other factors to determine if you’re eligible.
Why Get a Personal Loan?
There are many reasons why you might want to get a personal loan. Here are just a few:
| Reasons to Get a Personal Loan |
|---|
| Debt consolidation |
| Home improvements |
| Medical expenses |
| Wedding expenses |
| Emergency expenses |
| Travel expenses |
How to Get a Personal Loan with a 635 Credit Score
If you have a 635 credit score, you might be worried that it’s too low to qualify for a personal loan. However, there are lenders out there who are willing to work with borrowers who have lower credit scores. Here’s what you need to do:
1. Check Your Credit Report
The first step in getting a personal loan with a 635 credit score is to check your credit report. You’re entitled to one free credit report per year from each of the three major credit bureaus (Equifax, Experian, and TransUnion), so make sure you take advantage of this. Look for any errors or inaccuracies on your report and dispute them if you find any.
2. Shop Around for Lenders
Next, you’ll want to shop around for lenders who are willing to work with borrowers who have lower credit scores. Look for lenders who specialize in bad credit loans or who have more lenient credit requirements.
3. Consider a Secured Loan
If you’re having trouble getting approved for an unsecured personal loan, you might want to consider a secured loan instead. A secured loan requires you to put up collateral, like your car or your home, but it can be a good option if you have a lower credit score.
4. Improve Your Credit Score
If you’re not in a rush to get a personal loan, you might want to take some time to improve your credit score before you apply. Pay down any outstanding debts, make sure you pay your bills on time, and avoid applying for new credit cards or loans until your credit score improves.
5. Get a Co-Signer
If all else fails, you might want to consider getting a co-signer for your personal loan. A co-signer is someone with a higher credit score who agrees to take responsibility for your loan if you can’t make the payments. This can help you get approved for a loan and get a better interest rate.
FAQs
1. What is the Minimum Credit Score Needed for a Personal Loan?
There is no set minimum credit score needed for a personal loan, as it can vary from lender to lender. However, a credit score of 640 or higher is generally considered good, while a score of 600 or lower is considered poor.
2. Can I Get a Personal Loan with a 635 Credit Score?
Yes, you can get a personal loan with a 635 credit score. While it might be more difficult to get approved, there are lenders who are willing to work with borrowers who have lower credit scores.
3. What is the Average Interest Rate on a Personal Loan?
The average interest rate on a personal loan is around 9.41%. However, your interest rate will depend on your credit score, income, and other factors.
4. How Much Can I Borrow with a Personal Loan?
Most personal loans range from $1,000 to $50,000, although some lenders may offer loans up to $100,000 or more.
5. How Long Does it Take to Get Approved for a Personal Loan?
It typically takes a few days to a week to get approved for a personal loan, although some lenders may offer instant approval. The funding process can take anywhere from a few days to a few weeks.
6. Can I Use a Personal Loan to Pay Off Credit Card Debt?
Yes, you can use a personal loan to pay off credit card debt. In fact, consolidating your credit card debt with a personal loan can be a good way to lower your interest rate and simplify your debt payments.
7. Are Personal Loans Better than Credit Cards?
It depends on your needs and your financial situation. Personal loans can be a good option if you need to borrow a large amount of money or if you want a fixed interest rate and a fixed repayment period. Credit cards can be a good option if you need to borrow a smaller amount of money or if you want more flexibility with your payments.
8. Can I Get a Personal Loan with No Credit History?
It might be more difficult to get approved for a personal loan with no credit history, as lenders won’t have any information to go on. However, you might be able to get approved if you have a co-signer or if you can show proof of income and employment.
9. Can I Get a Personal Loan with a Bankruptcy on My Record?
It might be more difficult to get approved for a personal loan with a bankruptcy on your record, but it’s not impossible. You might need to work with a lender who specializes in bad credit loans, and you can expect to pay a higher interest rate.
10. What Happens if I Can’t Make My Personal Loan Payments?
If you can’t make your personal loan payments, you’ll likely face late fees and other penalties. If you continue to miss payments, your loan could go into default, which will harm your credit score and could result in legal action.
11. How Long Do I Have to Repay a Personal Loan?
Most personal loans have repayment terms of two to five years, although some lenders may offer terms up to seven years or more.
12. What Documents Do I Need to Apply for a Personal Loan?
You’ll typically need to provide proof of income, like pay stubs or tax returns, as well as proof of identity and residence. Some lenders may also require additional documentation like bank statements or references.
13. Will Applying for a Personal Loan Affect My Credit Score?
Yes, applying for a personal loan will affect your credit score. Whenever you apply for credit, whether it’s a personal loan, credit card, or mortgage, the lender will perform a hard inquiry on your credit report. This can temporarily lower your credit score, so it’s important to only apply for credit when you need it.
Conclusion
Now that you know all about 635 credit score personal loans, you’re ready to take action and get the financial assistance you need. Don’t let a lower credit score hold you back – there are lenders out there who are willing to work with you. Remember to shop around, compare offers, and only borrow what you can afford to repay. Good luck!
Get Started Today
If you’re ready to start exploring your personal loan options, we recommend visiting our lender partners. These lenders specialize in working with borrowers who have lower credit scores and offer competitive interest rates and flexible repayment terms. Click the link below to get started now!
Closing Disclaimer
The information provided in this article is for educational purposes only and should not be considered financial or legal advice. It is always important to consult with a professional before making any financial decisions. Additionally, the terms and conditions of personal loans can vary greatly between lenders, so be sure to read all loan agreements carefully before signing.