LOAN FOR A 611 CREDIT SCORE

 

For getting any loan it is very important that your credit score should be good. Your credit score is an important key element that is taken into consideration by lenders when reviewing your loan application.611 credit score is rated as a poor credit score. 

This score might get you a loan approval but the terms at which the loan will be issued to you will not at all be favourable for you i.e. loan granted at extremely high rates of interest.

Your 611 credit score gives a very clear picture in terms of financial responsibility and handling of credit to the lenders. A 611 credit score for the lender means that:

There have been late payments and collections currently and in the past

The credit utilization ratio is high between 50% to 75%

The length of the credit history is short

There have been too many inquires by lenders reflecting in your credit report.

A loan granted on the basis of 611 credit score will have a high rate of interest attached to it. Any credit score below 620 is considered to be highly risky by the lender. Even if you apply for a credit card with a 611 credit score the chances of your application being rejected or not approved are certain and high. As getting approval for a credit card is possible only when you have an excellent credit score. In such a scenario the alternate solution would be  a “bad credit “credit card. In case you are not considered eligible for bad credit card, then you need to opt for a secured credit card which requires cash as collateral.

The minimum credit score required to qualify for a loan is 620.So The best option would be to wait for some time and raise your credit score by about 50-100 points so that you can get a loan at the best possible rates of interest and terms that are advantageous for you.

Below given are a few pointers that you might consider for raising your credit score:-

Try to settle your accounts with the collection agency for a negotiable amount. Settling of your accounts with the collections might not increase your credit score but they will not be factored into the computation of your credit score as they are put into the disputed status by the credit bureau.

Many card holders use the entire limit in one go .This makes the lenders nervous as it puts you in the  high risk bracket .It shows your irresponsibility towards managing your credit which makes the lender believe that you will not being in a position to repay the loan amount. The maxing out of your credit limit pattern lowers your credit score.  try to use your credit limit not more than 10% of your total credit limit and use your limit only when necessary.

Reduce your debt-credit utilization ratio

Try to avoid making late payments .be regular with making payments on your statement date and pay the total amount in full.

Avoid making too many inquiries such as-loan application, insurance policy, and job application. When you sign an application for a loan, credit card or apply for a job the outside companies make inquiries into your credit report which adversely affects your credit score and brings it down drastically.

So to raise your credit score try not to make too many credit inquiries.

The length of your credit history is also important .The older the credit accounts, the longer the credit history. Even if you are not using your old accounts, do not close them. The length of your  credit history will help in raising that 611 credit score by a few points.

So to sum it up loan for a 611 credit score-It is possible to get approval for loans with 611 credit score by certain lenders. But such loans come with a very high price in terms of rate of interest. So the right strategy would be to either raise your credit score by 9 points to make it a 620 credit score and get loan approval at medium rates of interest or wait and improve your credit score by at least 50-100 points to get a loan at the best possible interest rates.