Lowest Personal Loan Rates [on Any Credit Score]

Ever been denied a loan because of your credit
score? If you’re not sure where to look for the
lowest personal loan rates for YOUR FICO, you’re in luck because we’re talking about
rates for different credit scores. We’ll talk about four different credit scores,
the best loan sites for that score and how to increase each score fast to get better
rates. All here right now on Let’s Talk Money. Joseph Hogue here on the Let’s Talk Money
channel. I want to send a shout out to everyone in
the community, thank you for taking a part of your day to be here. If you’re not part of that community yet,
just click on the little red subscribe button. So all of the personal finance and loan advice
on the internet is that general ‘how to get a loan’ or how to increase your score
but it’s so hard to use the information because it’s not really applicable to your
situation. A lot of the advice isn’t going to be the
same or isn’t going to work if you have a very low credit score. Other information won’t be the best if you
have a very high score. To really take advantage of the financial
system, to get everything you can out of personal loans and get the lowest rates, you have to
look at the facts around your specific credit score and that’s what we’re going to do
today. We’ll cover the best personal loan sites
for four different credit scores and some tips for each level that will help you get
better rates. We’ll start with the lower credit scores
but keep watching because each level is going to offer some great ideas on boosting your
FICO to get better rates. I’ll be linking to each of these sites in
the video description below so you can get more information. Let’s start with a 580 FICO score. This is deep into the sub-prime credit so
maybe you’ve got a bankruptcy or have missed a few payments. None of the banks are going to lend you money
and most credit cards will be charging rates of 28% and more if you can even get approved. What you want to focus on here is fixing the
things on your credit score that you can control, especially the things that are really going
to increase your score. That means getting any errors removed and
maybe even getting a few missed payments wiped off by filing a dispute with the credit bureaus. I’ve got a video that walks you through
this dispute process and includes a template of the letter you want to use when dealing
with the credit bureaus. Another place you’re going to want to start
is with a consolidation loan. If you’ve got high-interest credit card
debt, that is ruining your credit score. The credit bureaus don’t like to see credit
card debt because it doesn’t have a payoff date and the payments aren’t fixed. That’s why it’s called revolving debt
as opposed to non-revolving debt like with mortgages and other loans. So what you want to do is take out one personal
loan to pay off those credit cards. This will replace all those debts with one
loan, save you money each month on interest and change your debt to a fixed-payoff non-revolving
credit. This first personal loan site is one I’ve
used a few times. I used it when I destroyed my credit years
ago after the housing bust and they specialize in bad credit personal loans. The site is called PersonalLoans.com, it’s
not a peer-to-peer lending site but an aggregator where lenders all come together to bid on
your loan. You can get personal loans, peer loans and
even bank loans on the site so it’s a great way to shop your loan around for the best
deal. Rates on loans at this credit score are still
going to be high but usually lower than credit card debt so you’ll save money on interest
payments. Now if you have a 650 credit score, that’s
still in the sub-prime range but it’s getting better. Banks still probably are not going to give
you a loan but you have more options online and with peer lenders. Working on your credit score here is about
working with what you have. One trick that works great is getting the
limit increased on your credit cards. Now this sounds crazy but it works because
part of your score is what’s called the credit utilization ratio. That’s just a way of saying how much you
owe versus how much you can borrow. Think about it. If you owe $5,000 on a $5,000 limit then you’re
maxed out. That looks horrible to a new lender but if
you owe that same $5,000 on a $10,000 limit then it doesn’t look as bad. You’re only using half of your available
credit. Getting your credit limit increased isn’t
an excuse to go out and shop but it will help you increase your credit score and get better
rates. One personal loans site I like for that 650
credit score range is Upstart. This site is great for college graduates and
people that don’t have a credit history or that have a low score because it uses a
special lending model that takes other factors into account. If you have a 700 credit score then congratulations,
you’ve made it to the prime-lending category. Here is where you’ll start qualifying for
bank loans and better rates online. You might still have trouble getting an unsecured
loan from a traditional bank but you’ll qualify for good rates from the peer-to-peer
sites like Lending Club. With a 700 credit score, just little improvements
in your FICO are going to make big differences. Paying off a couple of smaller debts or credit
cards will really help increase your score. So a lot of people know about the debt avalanche
method of debt payoff where you pay off your higher rate debt first but there’s another
debt payoff strategy here you might consider. The debt snowball method means ranking your
debt by amount owed, with those smaller ones at the top. You still make all the regular payments but
you make extra payments to those smaller debts and pay them off faster. It’s a great way to stay motivated, seeing
those debts drop off your list and will help improve your credit score fast. Lending Club is actually the largest peer
lending site in the world and offers some really low rates on personal loans for good
credit borrowers. I actually invest in loans on the site and
their cutoff for loans is 680 FICO so you’ll just be coming in under the wire. One note to make here, I recommend different
sites for different credit scores but there’s no harm in applying on several sites to see
if you can get a lower rate. The loan sites do what’s called a soft check
of your credit first and it doesn’t affect your credit score. It’s only after you accept a loan that it
goes on your credit I’ll link to these sites in the video description and check a few out
to make sure you’re getting the lowest rate possible. Finally, here is a 740 credit score. This is well within the prime-lending category
and you’re going to start noticing rates are going lower fast. You should be getting interest rates on loans
that are just a little above the teaser rates they advertise. With a higher credit score, there isn’t
as much you can do to increase it other than just make monthly payments on your debts. There isn’t much wrong with your score at
this point, you just need to build it over time. A high 740 credit score will qualify you for
loans from banks and the stricter loan sites like SoFi. This site offers the widest range of loans
available from student loans to mortgages, car loans and personal loans. Because it only accepts very high credit scores,
rates are some of the lowest in the business. That’s your best options for the lowest
personal loan rates and a few tricks to increase your FICO. If you can wait a month or two for your loan,
you can always increase your credit score a little to get to that next higher level
and decrease your rates. Otherwise, each of these personal loan sites
is a great choice for getting the money you need. Join us in the Let’s Talk Money community
by clicking on that subscribe button. We’re here Mondays and Wednesdays with the
best videos on beating debt, making more money and making your money work for you. If you’ve got a question about money, just
scroll down and ask it in the comments and we’ll answer it in a video.

8 comments on “Lowest Personal Loan Rates [on Any Credit Score]”

  1. Let's Talk Money! with Joseph Hogue, CFA says:

    See how I boosted my FICO more than 100 points with these credit score hacks https://youtu.be/QYR06s7KcCQ

  2. Burnt Taco says:

    Thanks joe. always on the money with ways to attack debt.

  3. Robert Pick says:

    Always good stuff. Nice video summary of scores vs loans.

  4. Al May says:

    what is an aggregated payment, is it similar to minimum payments?

  5. Jack aideen says:

    nice vidio

  6. Jack aideen says:


  7. Jack Dennis says:

    nice your vudeo

  8. Esther Burgess says:

    Useless info no help at all 😢

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