How are people with credit scores under 600 getting approved for large loans?
I’m using a throwaway because I’m pretty embarrassed about my financial situation, but I’m hoping to get some honest advice.
I’ve been trying to figure out how people with credit scores under 600 are getting approved for large personal loans—around $40,000 or more. I’ve applied to several lenders, but I keep getting denied because of my high credit utilization, low credit score, and other factors. I understand why lenders are hesitant, but I’m genuinely working to improve my finances.
My main goal is to consolidate my debt into something with a much lower interest rate. I’ve learned from my mistakes, and once my credit cards are paid off, I don’t plan on relying on them again.
I’ve seen plenty of people mention that a significant portion of their debt comes from large personal loans, and I’m curious how they were able to qualify in the first place. Where did you apply? Did you need a co-signer or collateral? What helped you get approved?
If you’ve been approved for a substantial loan despite having poor credit, I’d really appreciate hearing about your experience. What was your credit score at the time, how much were you approved for, and were the interest rates reasonable or extremely high?