When you’re ready to borrow money, your credit score can make all the difference. The higher your score, the lower your interest rates.
Having a 517 credit score can make it difficult to get approved for a variety of loans, including personal loans, mortgages and auto loans. These types of loans typically require a security deposit or collateral to secure the loan.
Overview of a 517 Credit Score
Your 517 credit score is a number that lenders use to assess the risk you pose when lending money. It can impact your ability to get approved for loans and how much you’ll have to pay for them.
A 517 credit score is considered “poor” by most lenders. That means it’s a low score that can make it difficult for you to get approved for most unsecured credit cards, personal loans and auto loans.
Your credit score is made up of five factors: Payment History (35%): How well you’ve paid past credit accounts on time. Length of Credit History (15%): How long your credit has been active, and how many different types of accounts you have. New Credit (10%): How often you’ve opened a new account recently.
Credit Card Options with a 517 Credit Score
A credit score of 517 is considered to be below average, which means that you will likely have a difficult time finding cards or other loan products with terms and conditions that are favorable. If you do find a card or loan product that you can afford, you’ll need to take steps to keep your account in good standing and avoid paying excessive fees.
You should also avoid making too many applications for loans or credit cards in a short period of time. This can result in a hard inquiry on your credit file, which will have a negative impact on your credit score.
If you want to get approved for a credit card with a 517 credit score, the best option is to look for a secured credit card. These cards offer high approval odds and low fees because you’re required to put down a deposit. The amount you put down typically becomes your credit limit.
Auto Loans with a 517 Credit Score
Your credit score may be a factor in determining what auto loan terms you’re eligible for. The better your credit history, the higher your chances of getting approved for a loan with favorable terms and a low interest rate.
Your lender may also look at other factors to evaluate your application, such as your income and other debts. This helps them decide if you’re likely to make your payments on time and in full.
You may be able to lower your interest rate by stretching your loan term to six or seven years, which will reduce the amount of money you’ll pay in interest over the life of the loan. However, it’s important to understand that longer loans can lead to a greater risk of becoming upside down on the vehicle you purchase.
Personal Loan Options with a 517 Credit Score
Personal loans are a popular way to finance various needs. They can be used to consolidate debt, pay for a car, purchase a home or fund other major purchases.
The key to getting the best rate is to shop around and compare rates and terms from several lenders. Credit score monitoring tools also help you stay on top of your credit and how it is affecting your score.
Fair-credit personal loans are typically available with a minimum credit score of 580. These loans can be used to cover many expenses, and can be easier to qualify for than those with higher scores.
Some lenders, such as OneMain Financial, offer loans for applicants with less-than-perfect credit scores. However, these personal loans have high interest rates and repayment terms that can be tight.
Mortgages with a 517 Credit Score
If you have a 517 credit score, it’s likely that you won’t be able to get approved for traditional mortgages. Rather, you’ll likely have to seek out a mortgage lender that specializes in lending to people with low scores.
Many people with low scores choose to use these loans to build their credit, as they are designed to give borrowers a chance to improve their credit standing through good payment behavior and regular credit reporting. These loans also come with a small credit limit and a refundable security deposit, which can help lower fees.
It’s also important to note that a bankruptcy can negatively affect your credit score. Even if you’re not currently in debt, a bankruptcy can still be reported to the credit bureaus, and it will remain on your report for 10 years or longer.