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Can I Get Approved For A 10000 Loan With A 438 Credit Score?

Credit rating agencies use various rating schemes to rate their customers. They range from 100 to 300 at the low end and 830 to 990 at the high end. Someone with a credit rating of 438 is on the low end of most credit rating agencies. The short answer to the question, “can I get approved for a 10000 loan with a 438 credit score?”, is probably but it will come at a cost. For most agencies anyone under 500 is considered to have a bad credit rating.

Lenders considering someone with a bad credit rating such as 438 will only lend to them if they can charge a higher interest rate, if they perhaps have something they can offer as security, or charge higher fees. It can be expensive to borrow money when your credit rating falls below 500 as in the case of this consumer.

He mentioned that he missed a few payments and that he has credit card debt. He also mentioned that he had been applying for a loan at several locations, which believe it or not actually contributes to a negative credit rating. The reasons for a poor or bad credit rating might be surprising to many people.

Payment history is a big one contributing to 35% of your credit rating. Miss a few payments that get reported and your credit rating is going to drop. Another is the total amount that is owed along with the length of time of your history.These together count for 45%. These three categories account for 80% of your credit rating. Our consumer is doing poorly in terms of missing payments and a relatively short credit history.

Another area that credit rating agencies look at is the number of applications for credit, e.g. loans, credit cards etc. If they are high, then this area which counts for 10% will also drop your rating. Lastly the type of credit that you have also counts for 10%. Credit cards are not considered good credit to have due to the high cost and also the ease with which the limits can be increased.

Our consumer applying for this $10000 loan missed payments, has only credit card debt and has applied to many lenders all of which brings down his credit rating. This makes it even more difficult to obtain a decent competitive loan.

His best approach is to actually find a lender, get a loan and pay it off on time if not early to help bump up his rating. It will show that he can be depended on to deal with his debt. Never miss a payment again. This is one of the single biggest areas when it comes to causing a credit rating to fall.

We also do not know which credit rating agency quoted this score to him. As we mentioned earlier some are a little less stringent than others. It will take some time to correct his rating, but it can be done.


Home/Mortgage Loan Amount : $10,000

Home Loan Application and Processing Speed (when do you need the funds): I need the funds as soon as possible to deal with high interest credit card debt

Do you currently have a mortgage? : no, I currently rent an apartment

Bank Name and Branch :Montecito Bank and Trust, State Street

What City/Town, State and County do you live in? : Santa Barbara, California

Zip : 93101

What is your employment field? : Delivery Driver for major shipping company

Employment Position : Driver

When are you paid? (monthly/weekly/biweekly): biweekly

Your credit rating to be – excellent, fair, or bad? : not good based on my credit score

How did you find us? : looking online for loans with a 438 credit score

How are you paid? (direct deposit/paper check): Direct deposit

Gross Amount Per Paycheck : $1200

Do you agree to have this information published online, without your PRIVATE information of course? : Sure, I can use a lot of help to get a loan and also how to improve my credit score

Extra information here please (some detail): My credit score is only 428 and I am learning that with a score like that, it is difficult to obtain a loan from any lender. They want a high interest rate on the loan and they also want a cosigner on the loan. Both of these issues are a problem for me.

I have credit card debt which as you probably know carries a high interest rate on any unpaid balances. If I take a loan that also has a high interest rate, I am not really saving any money. I want to reduce the interest so that I can repay this loan off more quickly.

Regarding a cosigner, my wife can cosign, but they really want someone who has a good credit rating. My wife personally has a good credit rating, however because we are married, my bad credit rating reflects on her as well. Some how I need to find someone who will lend money to us at a reasonable rate.

The other thing that I need help with is how to improve my credit rating. I am not sure what or why mine is so low. I did miss a couple payments last year and I also have been applying for lots of loans, which does not help. None have been approved. The only debt that I have is this credit card debt. My car is paid for and I also pay my rent on time.

My job is relatively secure. I am a local city delivery driver for a major trucking company. I had a chance to go long haul, but decided that I would prefer to be home each night with my family instead of being away all of the time. I have been with the company for more than 10 years and have an excellent driving record.

My future is relatively secure. My wife works as a legal secretary for a local law firm. She has been there for several years. Together our salary is sufficient to allow us to do pretty much everything we want to. We just unfortunately got a little carried away with our credit card the last few months, decorating our apartment. Now we need to pay for it and fix this problem. We were not aware of how bad our credit rating actually was.

Can you help us?