What are my options if my credit score is 500 and I need a loan?

Answer by  patti (29325)

It depends on what kind of loan hope to make. Requirements vary from lender to lender. Some lenders offer inflated interest rates and difficult terms for borrowers with less than stunning credit. The thinking generally is that whatever funds you have should go to paying off debts that already exist, rather than creating new debts.

Answer by  John (9008)

You have very few options; no one is going to give you a regular loan with that poor of a score. You will either need to have some form of security to put up (like a car or a house) or get a co-signer. Given your past credit problems, you should also seriously reconsider even getting a loan at all.

Answer by  flamiss22 (5081)

With yor score so low it would be near impossible to get a conventional loan and anyone you would qualify for would be at a very high rate. Your best bet is to get someone whom you trust with good credit to co-sign for you.

Answer by  PGR (74)

Often getting someone to co-sign (guaranteeing that you will pay) is an option. You should also investigate your low credit score to see it it is based on any inaccracies in your credit report. You should also consider working with a non-profit organization (sponsored by the banking indutry) that helps in rstoring credit.

Answer by  sellinghousesforyouyahoocom (48)

You could go see a sub-prime lenderif you don't mind paying a high interest rate. You could go to a pawn shop if you have some collateral that you don't mind uding to secure the loan. A third option is using a payday loan store and promising to pay them back when you get paid.

Answer by  Fritz (608)

Your best option for a loan with a low credit score is to have someone co-sign for you, because with such a low credit score it is unlikely you will be able to obtain a loan on your own.

Answer by  rattfan80 (106)

Do your very best to build your credit score higher by paying the current items on your credit report.You may also get a payday loan or cash advance as long as you are working and the lender is able to verify your employment.Payday loans are easy to obtain on the internet.You may hire an attorney to help.

Answer by  withluck (1745)

If you are interested in purchasing a home or vehicle, you can find individuals out there that will owner finance. This is probably your best bet.

Answer by  Amanda82 (27)

Your options are very limited and depend on what type of loan you need. If you need an auto loan, you will need a great deal of money down and most likely a co-signer. Your best chance of getting a car will be a Buy Here-Pay Here place. For anything else, try to borrow from family.

Answer by  John (9008)

No lender will loan anyone money with a credit score this low without some added security. The best option would be if you can find a co-signer who has better credit. The only other option is to find security for the loan, such as a home or car.