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Are There Bad Credit Loans With A Credit Score Under 500?

You've made some mistakes, maybe had an unusual situation, and your credit score was affected. It's not the end of the world. It will take some work but credit can be rebuilt and there are credit loans for credit score under 500.

Those with that low of a score must expand how they look at credit options. It isn't just about getting a credit card. It becomes more of how to manage your money and pay for unexpected expenses. You need to understand more about credit and credit scores to figure out which bad credit loans are the best option for you.

Understanding Credit Scores

Credit scores range from 300 to 850. Most credit card companies and other lenders require at least a 600 score before lending you money. A 500 score is considered bad.

Credit scores can be tricky because anything can affect them. Those who apply for a lot of different credit options will see a drop in their score even if they aren't approved or don't take out the loan. That's because anyone that does what is called a "hard pull" will cause your score to drop. A hard pull is ordering a full credit report.

The reason your score drops is that the credit bureaus see you are trying to obtain credit.

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Many people in recent years had to file bankruptcy to protect investments like homes and cars. That will cause your credit to drop. However, your credit score will increase quickly as you pay your bankruptcy off. That means you will be able to get credit more easily as you finish it up.

Small bills, like that $10 unpaid dentist bill, can bring your credit score down as much as large car notes. Paying it off can bring your score up. However, if it's a super old bill paying it off can bring down your score temporarily because it had been "dead" and paying it brings it back to "active" status on the credit reports.

Credit For Those With Bad Scores

A bad credit score below 500 doesn't mean you can't get any credit although your options are limited. It does mean the terms won't be great. There will be high interest and probably a low loan amount.

You probably won't be able to get a car loan or a personal loan but bad credit loans include an FHA loan for a mortgage or a secured credit card. A secured credit card is one way to rebuild your credit and establish a new credit history, making secured cards good loans for credit score under 500.

Secured credit cards also have lower fees than most other cards aimed at those with bad credit. It's like a pre-paid card but is different because it functions like a credit card reporting to all three credit bureaus whereas a prepaid card doesn't report.

There are also medical credit cards that are specific to paying for things like doctor's office visits, dental bills, and even vet costs. These loans for credit score under 500 are also a good option.

Other Options

Those needing bad credit loans may want to consider other options if they need money quickly to fund an unexpected expense like a home plumbing problem or car repair. In those cases, title loans are an option. They offer loans for credit score under 500.

Title loan companies will loan you money based on the value of your car and often don't consider credit scores as part of the process. Your collateral is your paid-off, lien-free vehicle title, which secures the loan. 

You can keep your car during the repayment process so it won’t interrupt your daily routine. Most title loan companies are upfront about their terms and they don't report to credit card companies so your credit score won't be lowered further.

woman got car title cash

Auto Cash USA is a place to find title loan vendors that can offer the fast title loan cash you need. Most vendors in their system can approve title loans up to $15,000. Title loan companies require three things including a driver's license or state-issued ID, a clear title to your vehicle, and your vehicle being available for inspection.

Most are quick about getting you through the process, which can take as little as 30 minutes. You can get your money either that day or the next business day.

Auto Cash USA has licensed title loan lenders across the country so you know the loan representative you deal with is legitimate. Title loan lenders on the Auto Cash USA site welcome all types of credit so you can get loans for credit score under 500.

Fill Out Our Online Form

All it takes to find out how to get emergency cash is to fill out a form with Auto Cash USA. Once you fill out the inquiry form, one of the many title loan vendors in your area will call you to explain how to get loans for credit score under 500.

The form only takes a few minutes to complete and the phone call will only take a few minutes as well. There is no obligation to take out a title loan by filling out the form. It could be a way to get the money you need quickly for that unexpected expense, so take a moment to get more details.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Emma Frost

Emma Frost is a lifestyle and finance blogger with a talent for communication and a passion for financial literacy. She uses her writing talents to explore topics that help her readers gain financial stability and growth.