610 Credit Score Personal Loan

Writer and editor - Joseph Smith | Updated on 2023-03-05

Many people have been denied access to credit because they only had a 610 credit score. From a scale of 300 to 850, 610 is usually considered bad by many lenders and that makes it hard to access credit. It might even be worse because it becomes difficult to rent an apartment or even get a job. But if you are in such a situation, here are some tips you can use to still get a personal loan.

Beating difficulties when you need a personal loan with a 610 credit score

The first thing you ought to do is look at many lenders and making your loan application. Every lender has a different risk assessment based on FICO scores, employment, and debt repayment. So, while your credit score of 610 may be a weakness, other factors may work in your favor. It all depends on the lender, so inquire from different lenders until you find the best one for you.

You should also lower your ask below $10,000, which most lenders consider low. The lower loan request is less risky for a lender when your financial history is taken into account. Keeping the loan term short also means you will be more likely to repay the loan, so offer to complete payment in less than a year.

You may also have some unused credit cards you keep for emergencies and now is the time to use them. Not to make withdrawals but rather as potential sources of income for paying off the loan. Lenders will take these as assets and they will be more likely to approve your loan request.

Does this guarantee approval?

There is never a guarantee that any lender will give you a loan no matter how good your credit score is. It is thus even more difficult with only a 610 credit rating and you only have to make your case. Highlight any strengths you have such as employment to increase your chances of approval and don’t take it personally when a lender turns you down. Simply move on to the next option and don’t lose hope.

As for the amount, once again there is no definite answer to this either. In general, you may get up to 200% of your annual pre-tax income but the lender will take other factors into account to arrive at the final loan offer.

Improving your credit score

Sometimes the credit agencies get things wrong, and you should start by confirming if your credit rating is accurate. You can get a free credit report once a year that will show all entries to your profile. Carefully analyze this and report any errors to the FTC promptly to get them fixed.

Then start constructing a superior credit rating by reimbursing any debts on time. Start by tending to monthly bills and minimal debts that are simpler to deal with to raise your FICO score. Even credit cards can likewise be a benefit as opposed to an obligation on the grounds that most loan providers report card action. Keeping your card usage beneath 30% for a secured card raise your FICO scores, and even better at a 10% utilization.

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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