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Can I Get a Loan w/ 650 Credit Score? (Amount & Type?)

  • A 650 credit score may limit your loan options and result in higher interest rates.
  • You can improve your chances by addressing any credit report inaccuracies and managing your debt.
  • Call The Credit Pros to explore potential strategies for improving your score and understanding your credit report, ensuring you take control of your financial future.

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You can get a loan with a 650 credit score. You’ll find options for personal loans, auto loans, and even home loans, but expect higher interest rates and stricter requirements. Rates can range from 7.80% to 35.99%, based on the lender and your financial situation. Your income and overall debt levels play a big role in the approval process and how much you can borrow.

To improve your loan options and possibly secure better terms, work on boosting your credit score. Make timely payments, reduce existing debt, and check your credit report for any errors. Look into lenders that cater to fair credit, and consider prequalifying for loans to see rates without hurting your score.

Want to understand your situation better? Call The Credit Pros today for a simple, no-pressure chat about your 3-bureau credit report. We’ll help you pinpoint the best steps to take, tailored to your financial landscape.

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    Can I Get A Personal Loan With A 650 Credit Score?

    Yes, you can get a personal loan with a 650 credit score. However, you should expect higher interest rates compared to those with better scores. Many lenders are willing to consider your application, but a score of 650 is at the lower end of the approval spectrum.

    To improve your chances of approval and secure better terms, consider the following:
    • Enhance your credit score: If you can, wait a couple of months to boost your score by even 10 points. A score of 660 could significantly improve your options.
    • Research lenders: Look for lenders that specialize in providing loans to those with fair credit. Many institutions cater to scores from 580 to 669.
    • Evaluate your loan needs: Determine how much you need to borrow before applying. Only request what you can afford to repay.
    • Check your credit report: Look for errors or discrepancies that may be negatively impacting your credit score. Dispute any inaccuracies promptly.
    • Consider prequalification: Many lenders offer a prequalification option. Use this to gauge potential interest rates without affecting your credit score.

    Overall, you can still obtain a personal loan with a 650 credit score, but take steps to improve your score and research your options to secure the best terms.

    What Loan Amounts Can I Expect With A 650 Credit Score?

    With a 650 credit score, you can expect to qualify for personal loans ranging from $1,000 to $50,000. However, your loan amount will depend on factors like income, employment status, and the lender's policies. Lenders like Upstart offer loans between $1,000 and $50,000, while Oportun provides between $300 and $10,000.

    You should be aware that a 650 credit score is considered fair, meaning you might face higher interest rates compared to those with better scores. Interest rates for these loans can range from 7.80% to about 35.99%. Many lenders also require specific qualifications beyond your credit score, such as proof of income and a valid bank account.

    For larger loans, like home loans, a 650 credit score can meet the minimum requirements for some mortgage lenders, but you might not get the most favorable terms. Depending on your financial background and the lender's specifics, you could secure a home loan around the $50,000 range or more.

    As a final point, it’s beneficial for you to explore personalized loan offers using pre-qualification tools from various lenders. This helps you get a clearer picture of your options without impacting your credit score.

    How Does A 650 Credit Score Impact My Loan Options?

    A 650 credit score impacts your loan options by placing you in the "fair" credit range. With this score, you can still qualify for personal loans, auto loans, and mortgages, though you might face higher interest rates compared to those with better credit scores. Lenders often see you as a higher-risk borrower, which affects your loan terms.

    • You can expect limited loan amounts and less favorable terms.
    • Secured loans might be more accessible since they require collateral.
    • You will likely face stricter requirements for income verification and debt-to-income ratio.
    • Comparing lenders is crucial to find the best rates and terms.

    Improving your credit score even slightly can enhance your loan options. If you can raise your score to 660 or higher, you may secure better interest rates and lending conditions. Focus on timely payments and reducing credit card balances to elevate your score.

    To put it simply, improving your credit score can significantly expand your loan options and secure better terms. For further guidance on different loan types suited for a 650 credit score, such as personal or car loans, refer to our upcoming sections.

    Types Of Loans For A 650 Credit Score

    With a 650 credit score, you can access several loan options, although they may be more limited compared to those with higher scores. Here are some loans you can consider:

    • Personal Loans: Many lenders offer personal loans even with a 650 credit score. However, you will likely face higher interest rates. It's crucial that you compare multiple lenders to find the best terms.

    • Debt Consolidation Loans: These loans let you combine multiple debts into one payment. Lenders may approve you for this type of loan if you can demonstrate your ability to repay.

    • Auto Loans: You can secure an auto loan with a 650 credit score, but expect higher interest rates. Some lenders specialize in loans for buyers with fair credit.

    • Home Loans: You can qualify for FHA loans, which cater to borrowers with lower credit scores, including 650. These loans often require a lower down payment but may involve higher fees or insurance.

    • Credit Union Loans: If you are a member of a credit union, they may offer more flexible loans than traditional banks, even with a 650 credit score.

    In short, while you can get loans with a 650 credit score, the terms may not be favorable. We recommend you assess your financial health and possibly work on improving your credit score before applying for loans. This improves your chances of approval and results in better loan conditions. Check our upcoming section on the best lenders for a 650 credit score for more insights.

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    Are Interest Rates Higher For A Loan With A 650 Credit Score?

    Yes, interest rates are typically higher for a loan when your credit score is 650. This score falls within the "Fair" credit category, indicating to lenders that you are a higher-risk borrower. As a result, you often face increased interest rates to compensate for that risk.

    For instance, if you have a 650 credit score, you might see higher average interest rates compared to those with better credit scores. In February, the average interest rate for a home loan with a 650 credit score was about 7.45%. While this rate can fluctuate based on market conditions, borrowing costs are generally steeper for scores in your range.

    If you need to borrow money, you might encounter rates significantly higher than those offered to individuals with good credit scores. Lenders usually see those with fair credit as less ideal candidates for financing, protecting themselves from potential defaults.

    Other factors can also influence the rates you receive, including your income and the lender you choose. However, if you are applying for a loan with a 650 credit score, expect to pay more in interest than someone with a higher score.

    To finish, remember that working on improving your credit score can help you secure better rates and save money in the long run.

    What Are The Best Lenders For A 650 Credit Score?

    To find the best lenders for a 650 credit score, you should consider several options available for borrowers in the fair credit range. Many banks and online lenders are willing to work with you, though they may charge higher interest rates due to perceived lending risks. Here are some lenders worth exploring:

    • LightStream: Known for competitive rates, LightStream offers loans to borrowers with fair credit if you meet other criteria like having a stable income.

    • SoFi: This online lender provides personal loans for different purposes. They also consider your overall financial health, not just your credit score.

    • Marcus by Goldman Sachs: They often accept applicants with a 650 score, offering no-fee loans and flexible terms.

    • OneMain Financial: Specializes in personal loans for those with lower credit scores, though you may need to provide collateral.

    • Avant: Targets borrowers with fair credit, providing personal loans with a straightforward application process.

    When you apply, be prepared to show your income and any other debts, as lenders may assess your overall financial situation. You might also want to improve your score by making timely payments and reducing existing debt before applying. This could help you secure better terms.

    In essence, knowing your options can help you find the right lender for your needs and improve your chances of approval.

    Can I Get A Home Loan With A 650 Credit Score?

    Yes, you can get a home loan with a 650 credit score. A score of 650 is considered fair, and it allows you to qualify for several types of loans, including FHA, VA, and traditional loans. However, your credit score affects the interest rates and terms you receive.

    Lenders assess your application by considering your income, debt-to-income ratio, and credit history alongside your credit score. If you have a strong financial profile, such as a high income or a significant down payment, you increase your chances of getting approved for a larger loan.

    Be aware that with a 650 credit score, you might not secure the lowest interest rates. You will likely face higher rates compared to borrowers with better credit scores. As of recent averages, those with a 650 score may face rates around 7.45%.

    To enhance your loan prospects, you should review your credit report for inaccuracies or negative marks. Improving your credit score is possible by paying down debts or ensuring timely payments. Even if securing a loan with your current score is feasible, working on your credit could lead to better terms in the future.

    For more detailed information, check out sections about “how much you can borrow for a home loan with a 650 credit score?” and “are interest rates higher for a loan with a 650 credit score?” These sections provide insights into what you can expect based on your credit score.

    To wrap up, you can get a home loan with a 650 credit score, but it's important to address your financial profile to get better terms.

    How Much Can I Borrow For A Home Loan With A 650 Credit Score?

    With a credit score of 650, you can borrow a home loan, but the amount depends on factors like your income and debt-to-income ratio. Lenders see a score of 650 as fair, meaning you can qualify for different mortgage types such as FHA, VA, and USDA loans.

    Here’s a breakdown for you:

    • Conventional Loans: You might qualify if your income supports it. In many parts of the U.S., the maximum loan amount can be up to $766,550.

    • Government Loans: FHA loans accept scores as low as 580 for a 3.5% down payment. At 650, this is a favorable option for you.

    • Income Impact: Your income plays a crucial role. Higher income with a lower debt-to-income ratio means you might get a larger loan.

    • Down Payment: A bigger down payment can increase your borrowing capacity. Conventional loans typically need 20%, but government loans may require less.

    Remember, with a 650 score, your interest rate will likely be higher, impacting your payment amount. Improving your score can help you secure better loan terms and higher amounts in the future.

    On the whole, a 650 credit score allows you to borrow a home loan, but focusing on your income, down payment, and improving your score can help you get more favorable terms.

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    Requirements For A Loan With A 650 Credit Score

    If you have a credit score of 650, you can still qualify for loans, but you'll need to meet certain requirements. Here's what you need to know:

    • Minimum Income: You must show proof of a stable income to demonstrate you can repay the loan.

    • Debt-to-Income Ratio: Your total monthly debt payments should be below 43% of your monthly income.

    • Employment History: A steady job history of at least two years is often preferred.

    • Credit History: Lenders will review your overall credit history for any late payments or defaults.

    • Collateral: Some lenders might require collateral since a 650 credit score places you in a higher risk category.

    • Co-Signer Options: Consider having a co-signer. This can improve your chances of approval and may lead to better terms.

    • Interest Rates: Be prepared for higher interest rates due to your credit score.

    Bottom line: With a 650 credit score, focus on proving stable income, maintaining a low debt-to-income ratio, and having a co-signer to enhance your chances of loan approval.

    Can I Get A Car Loan With A 650 Credit Score?

    Yes, you can get a car loan with a 650 credit score. This score is considered "fair" or "near-prime" on the FICO scale. Many lenders will accept scores starting from 650, but the terms might not be as favorable as those for higher scores.

    You should be prepared for higher interest rates compared to those with scores above 700, leading to higher monthly payments. It's essential that you prove strong income and employment stability, as lenders see you as a higher-risk borrower.

    Some lenders, like Green Light Auto Credit, specialize in working with customers who have credit scores like yours. They can help you find a loan that fits your needs. With a 650 score, your choices might be limited, and you may face additional costs like higher down payments or fees.

    In a nutshell, you can secure a car loan with a 650 credit score, but be prepared for higher interest rates and potential additional costs. It's crucial to shop around and compare offers to find the best terms for your situation.

    How Does Income Affect Loan Approvals With A 650 Credit Score?

    Income plays a crucial role in loan approvals, especially when you have a 650 credit score. A 650 credit score, considered fair, means lenders will closely evaluate your income to assess your ability to repay.

    A higher income can boost your loan approval chances by demonstrating repayment capacity. Lenders look at your debt-to-income (DTI) ratio, comparing your monthly debts to your income. A lower DTI indicates you manage debts well relative to your income, making you a more attractive borrower. If you maintain a low DTI, you're more likely to get approved.

    However, high income alone doesn't guarantee approval. Lenders also consider your overall financial health, including existing debts and credit history. With a 650 credit score, some lenders might still see you as a higher risk, potentially leading to stricter terms or higher interest rates.

    Your income level can influence the loan amount you qualify for. With sufficient income, you might be eligible for larger loans if you keep your DTI ratio reasonable. All in all, while you can qualify for loans with a 650 credit score, better options and terms become available as your income increases and your credit score improves.

    What Should I Consider When Applying For A Loan With A 650 Credit Score?

    When you apply for a loan with a 650 credit score, consider these key points:

    You will likely face higher interest rates than borrowers with better credit scores. This can increase your overall repayment amount.

    Lenders might limit loan amounts for those with a 650 credit score. You may find smaller loan amounts more common.

    You may need to show strong income and employment history. Lenders often look for a solid financial background to feel secure in lending to you.

    Explore different loan types. Personal loans, auto loans, and some mortgage options are available, albeit with stricter terms.

    Use prequalification options offered by lenders. This lets you see potential rates without affecting your credit score.

    Keep an eye on your debt-to-income ratio. A lower ratio can help strengthen your application.

    Consider improving your credit score before applying. Even a small boost can enhance your chances and potentially lower your rates.

    The gist of it: Focus on securing better rates, demonstrating financial stability, exploring loan options, and improving your credit score for the best possible loan terms.

    Inaccuracies hurting your Credit Score?
    Securely review your full 3-bureau Credit Report (with a real expert).

    By clicking ‘Get Started’ I agree by electronic signature to: (1) be contacted by The Credit Pros by a live agent, artificial or prerecorded voice, and SMS text at my residential or cellular number, dialed manually or by autodialer even if my phone number is on a do-not-call registry (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

    Can I Improve My Loan Terms With A 650 Credit Score?

    Yes, you can improve your loan terms with a 650 credit score, but expect some challenges. A 650 score falls within the "fair" range, leading to higher interest rates and less favorable loan terms compared to higher scores.

    To enhance your terms, consider focusing on a few key actions:

    • Boost Your Score: Aim to raise your score slightly, even by 10 points. A 660 score can unlock better rates and terms.

    • Timely Payments: Consistently pay your bills on time. This builds a positive credit history and demonstrates reliability to lenders.

    • Reduce Debt: Lower your existing debts, especially credit card balances. A lower credit utilization ratio positively impacts your score.

    • Check Credit Reports: Regularly review your credit reports for errors. Dispute any inaccuracies immediately, as these can negatively affect your score.

    • Consider Loan Amounts: Applying for smaller loan amounts can increase your chances of approval and better terms. Lenders may be more willing to offer favorable terms if they perceive a lower risk.

    • Use a Guarantor: If possible, apply for a loan with a guarantor or co-applicant who has a higher score. This can ease approval and potentially improve your terms.

    At the end of the day, a little effort on these steps can significantly improve your financial situation and help you get better loan terms.

    Is A 650 Credit Score Suitable For Debt Consolidation Loans?

    Yes, a 650 credit score is suitable for debt consolidation loans, but you need to consider several factors. Lenders often classify this score as "fair," so you may qualify for a loan but expect higher interest rates and less favorable terms compared to those with higher scores.

    Typically, many lenders accept applications from individuals with credit scores of 620 or above. This includes options like Achieve, which offers flexible terms and quick funding. However, be prepared for significant interest rates, ranging from 7.8% to over 35.99%.

    To find the best deal, you should compare different lenders to secure the most favorable rates and terms. If you qualify, consolidating your debts might simplify your payments and save you money. Always check that the overall costs don't outweigh the benefits. Lastly, consider programs tailored for those with fair credit and review the fine print before applying.

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