This consumer is looking for a $10,000 loan to help with the purchase of a small boat and wants to know how to find a lender when credit score is between 500 and 650. The following paragraph provides some information on credit ratings and what it means.
Lenders rely a great deal on credit scores to provide them with an indication of how trust worthy an applicant is regarding the repayment of a loan, mortgage or even credit card debt. A credit score of 750 to 850 means you have an excellent rating. Good credit is between 700 to 750 and 650 to 700 is considered a fair rating. Anything below 650 is considered poor to bad. If you are under 350 it means you do not have any credit rating. The national average is 687.
The lower your credit score, the more risk the lenders feel they will be exposed to. To compensate, they either refuse to lend money or they raise the interest rate of the loan. With a fair rating, most consumers will still be approved by lenders, however they will typically be charged a higher interest rate. This means that your loan will cost you more money than someone who has an excellent rating.
In addition to credit ratings, lenders also consider employment, time on the job, recent credit activity and other factors that each lender feels is important. Most consumers with a record of employment, a good record of repaying loans etc will be able to borrow money for a variety of purposes. If they are able to offer something as equity towards the loan, e.g. a boat this may improve their chances of being approved.
Consumers with bad credit scores can improve them, although it takes time and effort to bring it back into the fair or good area. The longer in time you go with no unpaid debts, a record of meeting all financial obligations, work history etc, the better your credit rating will be and the faster it will improve.