With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
Personal loans offer flexibility in usage, allowing borrowers to cover various expenses like debt consolidation or personal purchases without needing collateral. Qualification for a $3,000 personal loan often requires a decent credit score, with many lenders preferring scores of 660 or higher for better terms.
With a credit score of 620, you could qualify for a conventional mortgage. However, your options may be limited. At this level, or even with a higher score in the “Fair” range, your mortgage will likely be a federally-insured loan, backed by Fannie Mae or Freddie Mac.
You can buy a $300,000 house with only $9,000 down when using a conventional mortgage, which is the lowest down payment permitted, unless you qualify for a zero-down-payment VA or USDA loan. Different lenders have different rules, but typically they require a 620 credit score for conventional loan approval.
For a $250,000 home, you'll likely need a fair to good credit score: 740+: Best rates and terms. 680-739: Good rates, still very good affordability. 620-679: Higher rates, may require larger down payment or FHA loan.
Lenders like to see a front-end DTI of no more than 28%. For a $300,000 home with a house payment of $2,178, you'd need about $7,778 per month, or $93,336 per year, in income to stay within 28%.
With your 620 credit score, lenders will generally consider you to be a higher-risk borrower. This means to get loan approval, you're likely to need strong qualifications when it comes to income, employment, and other debts.
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024.
There's no universal minimum credit score requirement to get approved for a consolidation loan. Some lenders are even willing to work with bad-credit borrowers. That said, a lower credit score typically translates to higher interest rates and fees, which can make debt consolidation less viable.
It's possible to get a personal loan with a credit score of 600 or even lower. Consider pre-qualifying with a few lenders to avoid a hard credit inquiry and to compare multiple offers. Then evaluate the interest rate, fees, and terms of each offer to select the best deal for you.
Navy Federal says its loans are available to borrowers across the credit spectrum, including borrowers with bad credit or thin credit histories, and there's no minimum credit score requirement. You must be a member of Navy Federal to apply.
Some of the easiest loans to get approved for if you have bad credit include payday loans, no-credit-check loans, and pawnshop loans. Before you apply for an emergency loan to obtain funds quickly, make sure you read the fine print so you know exactly what your costs will be.
On a $40,000 salary, you could potentially afford a house worth between $100,000 to $140,000, depending on your specific financial situation and local market conditions. While this may limit your options in many urban areas, there are still markets where homeownership is achievable at this income level.
Generally, FHA loans entail the following requirements: Credit score: While the FHA has set the minimum credit score at 500, many FHA-approved lenders require higher minimum FICO scores of at least 620. Down payment: Obtaining an FHA loan requires you to make a down payment.
Even better, just over 1 in 5 people (21.2%) have an exceptional FICO credit score of 800 or above, all but guaranteeing access to the best products and interest rates.
prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection ...
You can borrow anywhere from a few thousand dollars to $100,000+ with a 620 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
Home Affordability Examples
For homebuyers with a $40,000 annual income (a $3,333 monthly income), traditional guidelines of a 36% debt-to-income ratio give a maximum house payment of $1,200 ($3,333 * . 36).
According to the 28/36 rule, you should spend no more than 28% of your gross monthly income on housing and no more than 36% on all debts. Housing costs can include: Your monthly mortgage payment. Homeowners Insurance. Private mortgage insurance.
To purchase a $200,000 house, you need a down payment of at least $40,000 (20% of the home price) to avoid PMI on a conventional mortgage. If you're a first-time home buyer, you could save a smaller down payment of $10,000–20,000 (5–10%). But remember, that will drive up your monthly payment with PMI fees.