Short answer: sometimes, but fewer lenders will say yes, amounts tend to be smaller and the APR higher. On the FICO scale of 300 to 850, a score below 580 is rated "poor" (myFICO), so a 550 is 30 points below the "fair" band. Lenders also look at your income and your debt-to-income ratio (CFPB), so a steady income and low existing debt help.
Where 550 sits
| FICO rating | Score range |
|---|---|
| Poor | below 580 |
| Fair | 580 to 669 |
| Good | 670 to 739 |
| Very good | 740 to 799 |
| Exceptional | 800 and up |
Source: myFICO. Other scoring models use similar ranges. Lenders set their own minimums, and many look at more than the score.
What a loan could cost: payment examples
These are examples to show the math, not rates any lender has offered. Monthly payment = P x r / (1 - (1 + r)-n), r = APR / 12.
| Amount | APR | Term | Monthly payment | Total interest |
|---|---|---|---|---|
| $1,000 | 25% | 12 months | $95.04 | $140.53 |
| $1,000 | 25% | 24 months | $53.37 | $280.92 |
| $1,000 | 30% | 12 months | $97.49 | $169.85 |
| $1,000 | 30% | 24 months | $55.91 | $341.91 |
| $1,000 | 36% | 12 months | $100.46 | $205.55 |
| $1,000 | 36% | 24 months | $59.05 | $417.14 |
| $3,000 | 25% | 12 months | $285.13 | $421.59 |
| $3,000 | 25% | 24 months | $160.11 | $842.75 |
| $3,000 | 30% | 12 months | $292.46 | $509.54 |
| $3,000 | 30% | 24 months | $167.74 | $1,025.72 |
| $3,000 | 36% | 12 months | $301.39 | $616.64 |
| $3,000 | 36% | 24 months | $177.14 | $1,251.41 |
Notice how much the term matters: at 36% APR, $3,000 over 24 months costs $1,251.41 in interest, about twice as much as over 12 months, even though the monthly payment is lower. Try your own numbers in our cost calculator.
Ways to improve your chances
- Check your reports for free every week at AnnualCreditReport.com (FTC) and dispute errors (FTC).
- Lower your debt-to-income ratio before you apply, for example by paying down a card balance (CFPB).
- Ask a credit union about a payday alternative loan: up to $2,000, interest capped at 28% (NCUA).
- Offer collateral (a secured loan) or ask a cosigner, knowing the cosigner may have to repay the full debt (FTC).
- Build your score over time: pay every bill on time and keep balances low (CFPB).
Watch out for
Ads that promise approval no matter your score, and any request to pay before you get the loan, are classic scam signs (FTC). See our 7 steps to a loan with bad credit and no cosigner and our guide to advance-fee loan scams.
Participating lenders may be able to provide bad credit loans and personal loans of up to $15,000, and up to $5,000 for installment loans. Not all lenders can provide these amounts, and approval is not guaranteed.
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Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.
Sources
- myFICO: What is a Credit Score? (FICO Score ranges)
- CFPB: What is a debt-to-income ratio?
- FTC: You now have permanent access to free weekly credit reports (October 2023)
- FTC: Disputing Errors on Your Credit Reports
- MyCreditUnion.gov (NCUA): Payday Alternative Loans
- FTC: Cosigning a Loan FAQs
- CFPB: What are some ways to start or rebuild a good credit history?
- FTC: What To Know About Advance-Fee Loans