If you’re trying to learn about credits or owe so much you worry about the 493 credit score, it’s time to learn or review the information. Even if you think you know all the facts, there might be some small detail that may change your financial life.
What Is an 493 Credit Score?
A credit score is a number that shows your financial reliability. There are three main bureaus that calculate it for every person ever involved. The rating is based on:
- The number of bank accounts you have and how well-maintained they are;
- How many loans you have and whether you get late with repayment.
Experian, Equifax, TransUnion, the institutions that are responsible for the calculations, gather data and update the scores often. You can get a score from 300 to 850 or so, it’s a regular range. 300 is a bad score, which implies you don’t repay your credits on time and your credit cards aren’t maintained well financially. 850 is the total opposite of that.
How to Get a Personal Loan with 493 Credit Score?
Getting a loan depends on the bank or private company that want to use. Every option has its own requirements. There are some that consider 600 a regular rating, but some traditional banks consider it unacceptable.
The procedure differs a bit if you need a credit from a bank or a private company. To apply for a loan from a bank:
- Choose a bank offering the most convenient interest and repayment terms;
- Find out what documents you need in order to apply;
- Find out the schedule of a specialist you need;
- Gather the documents and go to the bank;
- Provide the needed information and follow the instructions you’re given;
- Wait for the approval.
If you want to borrow from a physical private lender, the procedure is the same, only you don’t need to gather too many documents.
In case you want to choose an online private lender:
- Pick the most suitable one for your needs;
- visit their site and read about the terms and conditions. Always read the small print;
- Provide your personal data and apply for a loan;
- A specialist will write to you shortly to approve;
- Wait for approval.
What Loan Can I Get with 493 Credit Score?
Again, it oftentimes depends on the bank or a private lender. However, the loan types are also different, and they all need you to have a certain credit score to get an approval:
- For a mortgage, a lot of traditional banks require a rating of 760 and higher. But there also are lenders that will give you a loan even if you’re at 620-580. However, the rates for such payday loans online will make you pay thousands in interest;
- For an auto loan, your rating will also impact the interest rate you’ll have to pay. If you’re at is 720 and higher, your installments will be very reasonable. If you’re down to 700, for instance, you’re already up to 6% of interest rate;
- For a student loan, the terms depend on whether you’re an undergraduate. If yes, your credit score doesn’t matter. But if you want a private loan, the rating should be at least 750. Some will settle for 650, but the rates will increase to 8%-14% in that case;
- For an online personal loan, you need a score of at least 550. It’s the most loyal type to all kinds of credit ratings.
Can I Get a Loan with 493 Credit Score?
No credit score is a death sentence, and you can still get a loan even if your rating is 400 or 450. That’s pretty low, and there are restrictions as to:
- The number of offers available;
- The annular percentage rate;
- The amount of money you can borrow;
- The terms of repayment.
As you can see, the lower ratings get worse conditions. However, it may be still a nice call in case you need a loan to get rid of your older debts. This will help you increase the rating and borrow money on better terms and conditions later.
Where Can I Get a Personal Loan with an 493 Credit Score?
These days, Internet lenders are extremely popular. Their rates are a bit higher than in other options, but they offer many more opportunities. For instance, such lenders usually don’t pay much attention to your score, so a lot more applicants have a possibility of getting some extra money.
Besides, you don’t need a ton documents to apply for such an option. This implies not a lot of time is required to review your application. So, the processing time is sometimes only 1 hour, which is very beneficial if you’re in a hurry.
How to Fix Credit Score 493?
The main way to improve your 493 credit score is to get loans and pay them back on time with all the additional fees. Contact the banks and companies you’ve applied in before, ask if they can restructure your debt. They may allow you to pay it in chunks. Thus, bank by bank, you’ll get out of the credit applicant blacklist and your score will improve dramatically.
If your credit picture is bad, don’t be totally frustrated just yet. Any rating can be fixed, as some companies still give loans online even to those who’ve fallen to the lowest possible score. Someone’s got to give you an opportunity to repay everything. And once you’re finished, you’ll love this debt-free life, and your rating will skyrocket!