A low credit score can prevent you from obtaining a home loan, auto loan or personal loan. However, there are ways to qualify for a loan with poor credit, even with a 483 credit score. They key is finding loan programs and lenders who are willing to help you make a fresh start. Several loans are available. But before applying for a loan, explore all your options.
Find a lender. Not every lender offers loans to persons with a 483 credit score. You'll need to speak with several financial institutions or a loan broker and discuss your options. Submit a no-obligation loan request through a broker. Brokers have relationship with various lenders, and they can help you find the best rate and loan terms.
Apply with a down payment. Offering a 10 percent down payment can persuade a loan officer to approve your loan request. If possible, provide a larger down payment. This demonstrates effort and willingness of your part, and down payments put the lender's mind at ease.
Consider a secured loan. Buying an automobile with a 483 credit score is easier than applying for a personal loan. The automobile secures the loan, and the lender can repossess the property if you default. If applying for a personal loan, installment loan or debt consolidation loan with a low credit score, obtain a collateral-based or secured loan. You'll have to provide a piece of property as collateral. However, these loans are easier to acquire with a bad credit.
Ask someone to obtain the loan on your behalf. You can apply for a loan with a co-signer, or ask someone to obtain the loan for you. This is a risky arrangement for the co-signer as one mistake on your part can decrease the co-signer's good credit score.
References
- USA.gov. "Credit Reports and Scores." Accessed March 19, 2020.
- Consumer Financial Protection Bureau. "What Is a Credit Score?" Accessed March 19, 2020.
- Fannie Mae. "B3-6-02: Debt-to-Income Ratios (08/07/2019)." Accessed March 19, 2020.
- Consumer Financial Protection Bureau. "Create a Loan Application Packet." Accessed March 19, 2020.
- Office of the Comptroller. "Interagency Statement on Meeting the Credit Needs of Creditworthy Small Business Borrowers." Accessed March 19, 2020.
- Consumer Financial Protection Bureau. "Does a Credit Inquiry Have a Different Impact on My Score if I’m Approved or Denied?" Accessed March 19, 2020.
- Consumer Financial Protection Bureau. "What Is a Debt-to-Income Ratio? Why Is the 43% Debt-to-Income Ratio Important?" Accessed March 19, 2020.
- Federal Trade Commission. "Credit Scores." Accessed March 19, 2020.
- Experian. "What to Do If Your Loan Is Denied." Accessed March 19, 2020.
Writer Bio
Valencia Higuera is a freelance writer from Chesapeake, Virginia. She has contributed content to print publications and online publications such as Sidestep.com, AOL Travel, Work.com and ABC Loan Guide. Higuera primarily works as a personal finance, travel and medical writer. She holds a Bachelor of Arts degree in English/journalism from Old Dominion University.