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.
Things You'll Need
- Down payment
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.