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10 Best Bad Credit Options for a Personal Loan 630 Credit Score

Writer and editor - Joseph Smith | Updated on 2020-01-29

Being rated at 630 by credit bureaus does not mean you’re not eligible to get any form of credit. Instead, it means you have to look harder because your options are limited. Not only will it be harder to get credit, but even when you do the amount provided may be lower than you need.

Getting over limitations toward a personal loan at a 630 credit score

Rather than complaining about the difficulty of getting credit because of a 630 credit rating, think of it as a challenge to get over. Begin by leaning into the very limitations to get what you want.

For instance, lenders will deny you huge loans and credit, but they won’t be as unwilling when you keep your request low. $10,000 is usually the limit, so keep your request below this amount and suddenly your applications will start to go through.

Credit Score of 630 Loans

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Most lenders will also consider your case as risky and impose high interest rates, be it on term loans and credit cards. Take this in stride and even promise to pay back in a shorter timeframe. The less time a lender has to wait and the lesser amount they have to award makes the loan less risky and your application will be more likely to be approved.

Then try looking at alternative lenders and not the conventional lenders. Online lenders especially are more flexible to loan applications. Using AI allows them to process more requests and consider other factors beyond credit scores. For example, you may have a steady income from employment that would complement your credit rating and aid in the approval of your loan.

Remember that credit card you keep for emergencies? Indicating you have such a credit card will make the lender more likely to approve your loan because it is seen as a potential source of income for making payments. Alternatively, request specifically for consolidation loans that are made for individuals with bad credit.

Fixing your credit rating and raising it

It is not unusual for credit bureaus to get it wrong, perhaps because some of your previous lenders failed to report on-time repayments. Requesting for a credit report is free once every year, and the FTC requires lenders to address any issues within 30 days after a complaint is made. You may find that your bad credit score is actually not your fault after all.

But in most cases, your credit score will be accurate, and you will need to raise it. It is a gradual process that involves various tactics, starting with paying bills and debts such as credit cards on time. Taking out a secured credit card will also help as long as you keep its utilization below 30%. The credit card provider will report this positively to the credit bureaus and thusly raise your credit score.

How much can you expect to receive?

Most people expect to receive a loan despite their negative credit score because most loan products are marketed as ‘100% guaranteed approval’. This is done to promote the lender’s flexible conditions for approval but it does not mean you can always expect to get a loan.

But if you do get your application approved, expect to receive up to 2x your annual income before tax. The final number will depend on other factors deemed necessary by the lender, but expect a low figure when your credit score is only 630.

Joseph Smith

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.
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