How to Get a Loan with a 600 Credit Score

Having a credit score in the 600 range may limit some loan options, but it doesn’t have to hold you back. Understanding how lenders view this score and what loan terms to expect can help you make informed decisions and find solutions that work for you. 

Is a 600 credit score good or bad? 

The three major credit bureaus — Equifax, Experian, and TransUnion — generally view a FICO credit score or VantageScore in the 580-669 range as fair or average. 

Typically, anything below a 670 is considered a subprime credit score. Subprime credit is viewed as a higher risk to lenders. With a 600 credit score, you may have access to alternative loan options designed for someone with poor credit, but traditional loans that require good credit may be more difficult to obtain. 

How a credit score is determined 

FICO and VantageScore credit scores are measured on a scale from 300 to 850. The higher the score, the better. A 600 credit score falls in the middle of the credit scale, which is why you’re considered an average but moderate-risk borrower. 

Several factors determine your credit score: 

1. Payment history. Making on-time payments on debts, loans, and bills will boost your score. Late payments, on the other hand, will hurt it. 
2. Credit account activity. Occasionally opening a new credit account can boost your credit score, but opening several new accounts in a short amount of time will lower it. 
3. Credit history. Having a lengthy credit history helps boost your credit score. For responsible borrowers, this generally means their score increases with age. 
4. Credit mix. Having a mix of credit cards, personal loans, student loans, mortgages, and auto loans help build credit. 
5. Credit utilization ratio. Your credit utilization ratio refers to how much credit you have available versus how much you’re using. A low credit utilization ratio will help your score. 

➢RELATED: What Is the Average Credit Score by Age?

Getting a loan with a 600 credit score 

As someone with an average credit score, you may have access to some of the loan options available to borrowers with good credit, but your lender, loan rates, and terms might look a little different. 

Personal loans 

Even with fair or average credit, you may still qualify for a personal loan — you just have to know where to apply. 

Traditional lenders have stricter borrowing stipulations than direct lenders. As a result, your bank or credit union may consider a 600 credit score too low to qualify for a personal loan. 

Direct lenders like Advance America, on the other hand, specialize in personal loans for people with fair or bad credit. Your 600 credit score may allow you to qualify for the following personal loan options: 

• Payday Loans 
• Lines of Credit 
• Installment Loans
• Debt consolidation loans 
• Title loans

➢RELATED: 7 Reasons to Use a Personal Loan

Credit card loans 

A credit score of 600 can qualify you for certain credit cards and credit card loans, but expect lower credit limits and higher interest rates. 

If you’re trying to rebuild your credit, consider a secured credit card. With a secured card, you pay a deposit upfront, which then acts as your credit limit. This option combines features of both credit and debit cards, providing flexibility while helping to build your credit over time. 

Pawn shop loans 

If you don’t qualify for a 600 credit score loan from a traditional or direct lender, consider a pawn shop loan. Pawn shops require collateral, such as jewelry, collectibles, or car titles, in order to borrow money. If you can't repay the loan by a certain date, the pawn shop keeps and sells your collateral. 

Student loans 

Regardless of your credit score, student loans are always available. Even borrowers with poor credit or no credit at all can qualify for federal student loans, but you must use the funds for college-related costs. 

➢RELATED: College Money Guide

Mortgages 

Qualifying for a mortgage with a 600 credit score can be tricky, but not impossible. If you do qualify, keep in mind that you’ll have higher interest rates and may need to provide a large down payment. 

Auto loans 

A 600 credit score is sufficient to secure a car loan, but again, you’ll lock in higher interest rates compared to buyers with better credit scores. 

Experian reports that in 2023, borrowers with excellent credit (720 or above) secured new car loans at an average interest rate of 5.18%. In contrast, those with a 600 credit score faced rates averaging 11.53%. The gap was even larger for used car loans, with excellent credit yielding a 6.72% rate, while subprime borrowers paid as much as 18.55%. 

Co-signed and secured loans 

To improve your odds of getting a 600 credit score loan with more favorable terms, you might consider a co-signed or secured loan. 

• Secured loans require collateral, similar to pawn shop loans. Collateral reduces the risk to the lender, which can lead to better terms and conditions. 
• Co-signed loans involve someone you know who agrees to take on responsibility for the loan if you default. Since this person signs the loan agreement with you, the lender considers both your credit histories and scores, which can allow you to access better loan options and terms. 

Loan terms to expect with a 600 credit score 

While you may have access to many of the same loans are available to someone with good or excellent credit, your loan terms will vary. Here’s what you can expect with a 600 credit score loan: 

Higher interest rates 

Lenders mitigate the increased risk of a subprime credit score by charging higher interest rates. 

Limited loan options 

Depending on where you live, your loan options may be limited to secured loans, Payday Loans, or similar types of personal loans. 

Smaller loan amounts 

Lenders may be willing to offer smaller loan amounts of only a couple hundred dollars to minimize their risk. 

Stricter terms and conditions 

While you won’t have as many restrictions as borrowers in the 400-500 credit score range, 600 is still low enough that lenders may be less lenient in their repayment terms and conditions. 

More on Loans:

• 400 Credit Score Loans
• 500 Credit Score Loans

7 tips to raise a 600 credit score 

If you want to boost your credit score: 

1. Always make on-time payments. 
2. Maintain a low credit utilization ratio. 
3. Don’t open multiple credit accounts at once. 
4. Wait at least six months to open new credit accounts. 
5. Carefully monitor your accounts and report any mistakes. 
6. Consider credit-builder loans and secured credit cards. 
7. Be patient and consistent in your efforts. 

How fast can you go from a 600 to a 700 credit score? 

Raising your credit score from 600 to 700 can take several months to a few years, but you’ll typically see improvement within 12 to 24 months. Unfortunately, the higher your credit score, the more challenging it becomes to increase it further. 

Fair vs. good credit 

Boosting your credit score from 600 to 700 may take one to two years, but it’s worth the effort. Good credit provides more loan options, better terms, larger payouts, and reduces the risk of defaulting. A credit score of 720 puts you in the “good credit” category, so that should be your goal. 

The bottom line 

Even if you qualify for a personal loan with a 600 credit score, it’s still worth the effort to boost your score to the “good” or “excellent” category. 

In the meantime, you can apply for a personal loan from Advance America. Unlike traditional lenders, we consider factors like your employment and income in addition to your credit score. Apply now to see how much you qualify for.