Loans for 650 Credit Score for April 2024

Get a loan with 650 credit score from one of the lenders verified by our specialists. On 24.04.2024 there are 5 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
Offers: 5
Updated
04.04.2024
17:07
Best Quick Loan Today 24.04.2024*
Mr. Payday
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Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
up to $10.000
Mogo
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$15,000
Rate
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Effective interest rate on the product

up to 46.96%
Term
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Loan term for the financial product

up to 60 months
Coast Capital Savings
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$50,000
Rate
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Effective interest rate on the product

7.5%
Term
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Loan term for the financial product

60 months
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Cash 4 You
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$120-$1,500
Rate
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Effective interest rate on the product

up to 391.07%
Term
i

Loan term for the financial product

up to 14 days
Credit Matik
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$250-$15,000
Rate
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Effective interest rate on the product

up to 32%
Term
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Loan term for the financial product

up to 12 month
Reviews 
Royal Bank of Canada
4.6
I appreciate the transparency in the loan terms provided by Royal Bank of Canada, with no hidden fees or charges.
Review
Royal Bank of Canada
4.4
RBC provided me with a flexible loan repayment schedule, making it easier to manage.
Review
Royal Bank of Canada
2.4
I encountered some hidden fees when repaying the loan with RBC, making it more expensive than I expected.
Review
Royal Bank of Canada
2
Unfortunately, the loan terms offered to me by RBC turned out to be less favorable than those of other banks.
Review
Royal Bank of Canada
4.2
It's very convenient to use RBC's online services to manage my loan and make monthly payments.
Review
Royal Bank of Canada
4.2
I obtained my home loan with RBC, and they were very flexible in setting terms that suited my financial capabilities.
Review

A credit score of 650 is considered fair and indicates a fair credit history. With a credit score of 650, which is slightly below average, individuals still have access to loans, albeit with varying terms, unlike those with a higher score. These loans can be utilized for purposes such as home or car purchases, college expenses, or debt consolidation.

Securing a loan with a 650 credit score may involve variations in loan amounts, repayment periods, and terms set by the lending institution. Factors beyond credit score, such as income, employment history, and debt-to-income ratio, impact loan approval and conditions. It's advisable to explore offerings from different lenders, as each may have distinct criteria, ensuring you find the loan options best suited to your requirements.

Features

  • Accessible Terms. Despite a credit score of 650 being slightly below average, these loans remain accessible, providing individuals with financial opportunities for various needs.

  • Flexible Usage. Loans associated with a 650 credit score can be utilized for diverse purposes, including home purchases, car financing, educational expenses, or debt consolidation, offering borrowers versatility in their financial decisions.

  • Tailored Conditions. While not as favorable as loans granted to those with higher credit scores, the terms and conditions of loans for individuals with a 650 credit score are tailored to accommodate their credit standing, ensuring a reasonable balance between accessibility and responsible lending.

  • Varied Loan Amounts. Lenders may offer a range of loan amounts based on individual credit profiles, enabling borrowers to secure the necessary funds while considering their specific financial requirements and ensuring a manageable repayment plan.

Pros and Сons

Pros

Financial Flexibility. These loans offer financial flexibility by providing individuals with the means to address various financial needs, whether it's making a major purchase, investing in education, or consolidating debt. The flexibility allows borrowers to adapt the loan to their specific circumstances.

Inclusive Access. Despite the credit score being slightly below average, these loans ensure inclusive access to financial resources. This inclusivity promotes financial inclusion, allowing individuals with varying credit histories to access funds and work towards their financial goals.

Opportunity for Cost-Efficient Borrowing. While the terms may differ from loans offered to those with higher credit scores, borrowers can still find cost-efficient options. By comparing offers from different lenders, individuals can identify loans with reasonable interest rates and favorable terms, making borrowing a more cost-effective financial decision.

Cons

Higher Interest Rates. One notable drawback of loans associated with a 650 credit score is the likelihood of higher interest rates. Lenders may impose elevated interest charges to compensate for the perceived higher risk, potentially resulting in increased overall repayment costs for borrowers.

Limited Loan Amounts. Individuals with a 650 credit score may encounter limitations on the maximum loan amounts they can secure. This constraint could impact their ability to fulfill larger financial needs, such as purchasing a home or covering substantial educational expenses.

Potentially Stricter Terms. While these loans aim to cater to individuals with a 650 credit score, some lenders may impose stricter terms and conditions, including shorter repayment periods or more rigid eligibility criteria. Borrowers might find themselves navigating less favorable terms compared to those with higher credit scores.

Impact on Future Credit. In cases where borrowers struggle with repayment, loans associated with a 650 credit score may have a negative impact on future credit. Delinquencies or defaults can further hinder credit scores, potentially limiting access to favorable loan terms in subsequent financial endeavors.

How to Get a Loan With a 650 Credit Score?

Apply for a Loan

  1. Review Your Credit Report. Obtain a copy of your credit report from major credit bureaus. Check for inaccuracies and dispute any discrepancies to ensure your score reflects accurate information.

  2. Understand Your Credit Profile. Analyze the factors contributing to your credit score, such as payment history, credit utilization, and credit history length. Identify areas for improvement to boost your creditworthiness.

  3. Explore Loan Options. Research lenders who cater to individuals with a 650 credit score. Compare interest rates, terms, and loan amounts to find the most favorable option for your financial needs.

  4. Prepare Supporting Documents. Compile necessary documentation, including proof of income, employment history, and any collateral if applicable. Having a well-organized application strengthens your case with lenders.

  5. Consider a Co-Signer. If possible, include a co-signer with a higher credit score to increase your chances of loan approval and secure more favorable terms.

  6. Highlight Financial Stability. Emphasize stable employment and a reasonable debt-to-income ratio to showcase financial responsibility. Provide evidence of a consistent income stream to instill confidence in lenders.

  7. Start Small. Begin with smaller loan amounts to demonstrate your ability to manage debt responsibly. Successfully repaying smaller loans can contribute positively to your credit history.

  8. Negotiate Terms. Don't hesitate to negotiate with lenders for more favorable terms, including interest rates and repayment periods. Some lenders may be open to customization based on your individual circumstances.

  9. Build a Strong Application. Craft a compelling loan application, explaining the purpose of the loan and how it aligns with your financial goals. Demonstrate a clear plan for repayment to instill confidence in lenders.

  10. Seek Professional Advice. Consult financial advisors or credit counselors for personalized guidance on improving your credit score and navigating the loan application process.

Requirements and Conditions

  1. Minimum Credit Score. Lenders may specify a minimum credit score requirement, often around 650, to qualify for these loans. Meeting this criterion is essential for loan approval.

  2. Income Verification. Borrowers may need to provide proof of a stable income to demonstrate their ability to repay the loan. Lenders often assess income sources and employment history.

  3. Debt-to-Income Ratio. Lenders might evaluate the borrower's debt-to-income ratio, comparing existing debts to income. A lower ratio enhances the likelihood of loan approval.

  4. Collateral Consideration. Depending on the type of loan, lenders may require collateral to secure the borrowed amount. This could be in the form of assets like a vehicle or property.

  5. Repayment Terms and Period. Specific terms regarding repayment, including the duration of the loan, interest rates, and monthly payment amounts, will be outlined by the lender. Understanding these terms is crucial for responsible borrowing.

  6. Interest Rates. Interest rates associated with loans for a 650 credit score may be higher than those offered to individuals with better credit. Borrowers should be aware of the rates and how they contribute to the overall cost of the loan.

  7. Loan Amount Limits. Lenders may impose maximum and minimum loan amount limits based on the borrower's creditworthiness and financial capacity.

  8. Fees and Charges. Be aware of any additional fees or charges, such as origination fees or prepayment penalties, that may accompany the loan. Understanding these costs is vital for budgeting and financial planning.

  9. Use Restrictions. Some loans may have restrictions on how the funds can be used. Borrowers should be aware of any limitations on the purposes for which the loan can be utilized.

  10. Credit Counseling Requirements. In certain cases, lenders may require borrowers to undergo credit counseling as a condition for loan approval. This is intended to provide financial guidance and ensure responsible borrowing.

Best Places to Get a Loan for a 650 Credit Score

Easyfinancial

Easyfinancial specializes in providing financial solutions for individuals without a credit history, making it an accessible option for first-time borrowers. With loan amounts ranging from $1,000 to $20,000, the company caters to a variety of needs, from consolidating debts to covering significant life events or emergency expenses. The flexible loan terms, spanning from 24 to 78 months, allow borrowers to customize their repayment schedules without facing prepayment penalties.

While easyfinancial offers same-day funding for swift financial relief and accepts both online applications and human contact every business day, it's important to note the relatively higher APR range of 19.99% to 35.00%. The company compensates with perks such as autopay and loyalty discounts. However, potential borrowers should consider the TrustPilot rating of only one star, indicating concerns about customer satisfaction, and the absence of 24/7 customer support, which might inconvenience some borrowers. Despite these considerations, easyfinancial distinguishes itself by addressing the needs of individuals without a credit history and providing options for co-signers or co-borrowers for added approval assurance.

Eastern Loans

Eastern Loans is a choice for those seeking smaller, short-term loans. With a consistent 23% APR and no prepayment penalties, it offers transparency and flexibility. The absence of a credit history requirement makes it accessible, and a four-star TrustPilot rating signals a positive customer experience. Coupled with same-day funding, Eastern Loans ensures a quick borrowing experience for those with urgent financial needs.

Key features include no credit history prerequisite, a clear APR, and 24/7 customer support. However, borrowers should consider the limited loan amounts and the absence of a mobile app. Eastern Loans prioritizes inclusivity by catering to those without a credit history, offering a co-signer option. The loan amounts, ranging from $500 to $750, provide a solution for immediate financial needs. With same-day funding, Eastern Loans ensures minimal wait times for urgent situations.

Fairstone

Fairstone offers secured and unsecured loans online in all provinces except Nunavut. With a 550 credit score requirement, it caters to those with less-than-excellent credit, featuring a quick turnaround for urgent unsecured loans. Adding a co-signer enhances accessibility, though online management for co-signers could improve.

Key features include a $500 to $50,000 loan range, instant online loan quotes with no credit impact, and benefits for homeowners with secured loans. Unsecured loans can be funded in as little as 24 hours, while secured loans may take up to three days. Fairstone addresses various financial needs, but borrowers should consider the higher minimum APR for unsecured loans. The absence of 24/7 customer support or a mobile app and limited online account management for co-signers are noteworthy. Fairstone requires a fair to good credit score (minimum 550) and operates in every province and territory except Nunavut.

Spring Financial

Spring Financial caters to borrowers without an established credit history, providing personal loans for various needs. The competitive starting APR makes it an attractive option for those who qualify for lower rates. The absence of late payment fees and prepayment penalties ensures a flexible repayment experience, coupled with a high TrustPilot rating indicating customer satisfaction. With a promise of a one to two business-day turnaround, Spring Financial appeals to borrowers in urgent need of funds.

However, Spring Financial lacks additional perks like autopay or loyalty discounts. The absence of 24/7 customer support, a mobile app, and the inability to provide co-signer or co-borrower options are notable limitations. Nevertheless, Spring Financial's accessibility without an established credit history can be beneficial for young adults or newcomers to Canada. With loan amounts ranging from $500 to $35,000, it caters to various needs, promising a quick turnaround of one to two business days after the application is submitted.

Captain Cash

Captain Cash provides fast and flexible borrowing solutions without the need for a credit check. Specializing in small-scale loans, the lender offers a uniform APR and operates in up to seven provinces and territories. The option for a co-signer or co-borrower, along with the ability to manage loans through a mobile app, adds to its convenience. Same-day funding is a significant advantage for individuals in urgent need of money.

Key features include various loan types such as installment, payday, quick, and emergency loans. However, borrowers should consider the relatively high APR, a limited loan amount range, and the absence of 24/7 customer support. Captain Cash offers loans with a maximum term of 120 days, applies late payment fees, but does not impose prepayment penalties. It is available in five provinces across Canada (Newfoundland, P.E.I., Ontario, B.C., and Alberta), and holds a four-star rating on Trustpilot.

Ways to Receive the Money

  1. Direct Deposit. Many lenders prefer to deposit the loan amount directly into the borrower's bank account. This method is efficient and provides quick access to funds.

  2. Check or Cheque. Some lenders may issue a physical check (cheque) to the borrower, which can be cashed or deposited into their bank account.

  3. Prepaid Debit Card. In certain cases, lenders may provide the loan amount on a prepaid debit card. Borrowers can use this card for purchases or withdraw cash from ATMs.

  4. Cash Pickup. Certain lenders, especially those offering short-term or emergency loans, may allow borrowers to receive the loan amount in cash from a designated location.

  5. ACH Transfer. Automated Clearing House (ACH) transfers are electronic transfers that deposit funds directly into the borrower's bank account. This method is commonly used for loan disbursements.

  6. Money Order. In some cases, lenders may issue a money order, which the borrower can then cash or deposit into their bank account.

Things to Pay Attention To

  1. Interest Rates. Understand the interest rates associated with the loan. Different types of loans may have fixed or variable rates. Be aware of how interest rates can impact the total cost of borrowing.

  2. Fees and Charges. Examine the fine print for any additional fees or charges, such as origination fees, late payment fees, or prepayment penalties. Knowing these costs upfront helps avoid unexpected financial burdens.

  3. Loan Terms and Repayment Period. Review the loan terms, including the repayment period. Consider whether the loan duration aligns with your financial goals and ability to make regular payments.

  4. Total Cost of the Loan. Calculate the total cost of the loan, including interest and fees, over the entire repayment period. This gives a clear picture of the financial commitment.

  5. Credit Score Impact. Understand how taking out a loan may impact your credit score. Timely payments positively affect your credit history, but late payments or defaults can have adverse effects.

  6. Secured vs. Unsecured Loans. Differentiate between secured and unsecured loans. Secured loans are backed by collateral, while unsecured loans are not. Consider the implications for your assets and the risk involved.

  7. Repayment Flexibility. Check if the lender allows flexible repayment options, such as making extra payments without penalties or adjusting the repayment schedule in case of financial difficulties.

  8. Customer Reviews and Reputation. Research the lender's reputation through customer reviews and ratings. A positive track record indicates reliability and customer satisfaction.

  9. Terms and Conditions. Thoroughly read and understand the terms and conditions of the loan agreement. Be aware of any clauses that may impact your financial responsibilities.

  10. Alternative Options. Explore alternative borrowing options and compare offers from different lenders. This ensures you choose the loan that best suits your needs and financial situation.

  11. Financial Goals. Align the loan with your financial goals. Consider whether the loan helps you achieve specific objectives, such as debt consolidation, home improvement, or addressing an emergency.

  12. Regulatory Compliance. Verify that the lender complies with regulatory standards and operates legally. This ensures a secure and transparent borrowing experience.

How to Repay a Loan for a 650 Credit Score

  1. Understand the Loan Terms. Familiarize yourself with the terms of the loan, including the interest rate, repayment period, and any associated fees. Knowing these details helps you create a realistic repayment plan.

  2. Create a Budget. Develop a comprehensive budget that outlines your monthly income and expenses. Allocate a portion of your budget specifically for loan payments.

  3. Prioritize Loan Payments. Prioritize your loan payments to ensure they are made on time. Timely payments contribute positively to your credit history and help you avoid late fees.

  4. Set Up Automatic Payments. If possible, set up automatic payments through your bank or the loan provider. This helps you stay organized and ensures that payments are made on time.

  5. Explore Biweekly Payments. Consider making biweekly payments instead of monthly ones. This results in an extra payment each year and can help you pay off the loan faster, reducing the overall interest paid.

  6. Cut Unnecessary Expenses. Identify areas in your budget where you can cut unnecessary expenses. Allocate the saved funds towards your loan payments, accelerating the repayment process.

  7. Create an Emergency Fund. Build and maintain an emergency fund to cover unexpected expenses. This prevents you from relying on credit cards or additional loans in case of financial emergencies.

  8. Contact the Lender in Case of Difficulty. If you encounter financial difficulties, reach out to your lender. They may offer temporary solutions such as forbearance or modified repayment plans to help you navigate challenges.

  9. Consider Debt Consolidation. Explore debt consolidation options if you have multiple loans with varying interest rates. Consolidating your debts can simplify repayments and, in some cases, lower overall interest costs.

  10. Monitor Your Credit Report. Regularly monitor your credit report to ensure accurate reporting of your loan payments. This allows you to address any discrepancies promptly.

Alternatives

  • Credit Cards for Fair Credit. Individuals with a strong credit score may qualify for credit cards featuring favorable terms, such as low-interest rates or introductory 0% APR offers. Depending on your financial needs, credit cards can be utilized for purchases or cash advances. It's crucial to exercise responsible usage and steer clear of accumulating high-interest debt.

  • Home Equity Line of Credit (HELOC). Homeowners have the potential to secure a home equity line of credit. This financial option allows borrowing against the equity in one's home, offering flexibility in accessing funds as needed. HELOCs typically come with lower interest rates compared to personal loans.

  • Balance Transfer. If you find yourself burdened by high-interest credit card debt, exploring a balance transfer to a credit card with a lower interest rate or a promotional 0% APR offer could be a strategic move. This approach aids in consolidating debt and reducing overall interest payments.

  • Peer-to-Peer Lending. Peer-to-peer lending platforms establish a direct connection between borrowers and individual investors. These platforms provide competitive interest rates, flexible terms, and a simplified application process. Examples of such platforms include Prosper and LendingClub.

Editorial Opinion

In the dynamic landscape of personal finance, loans for individuals with fair credit scores, specifically around the 650 mark, play a pivotal role in fostering financial inclusivity. While these credit scores might not be classified as excellent, they represent a significant segment of the population navigating various financial responsibilities. Lenders recognizing the potential of fair credit scores contribute to democratizing access to credit, empowering individuals to pursue essential milestones like homeownership, education, or debt consolidation.

Emphasizing the importance of fair credit score loans is not just about extending financial assistance; it's about acknowledging the financial responsibility and resilience demonstrated by individuals in this category. By offering tailored loan options, lenders contribute to the growth of a more inclusive financial ecosystem, where opportunities are not solely reserved for those with pristine credit histories. As we advocate for equitable access to financial resources, supporting and refining loan options for fair credit scores remains a key step toward building a more inclusive and compassionate financial system.

Important

Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

  1. Make sure to confirm whether the lender is licensed to operate in your province. You can verify this information with your state regulator or attorney general.

  2. Check if the lender is a member of a reputable association, such as the Canadian Lenders Association (CLA). Membership in such organizations may provide an extra level of reliability.

  3. Carefully review all the terms and conditions of your payday loan contract.

  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

FAQ

What does it mean to have a 650 credit score?

Having a 650 credit score suggests a moderate credit standing. This score, typically categorized as fair, reflects an individual's creditworthiness based on their credit history. A 650 credit score indicates a mix of both positive and negative elements in the credit report. While it may not qualify as excellent, it is generally high enough to make individuals eligible for various credit accounts and loans. However, the terms and interest rates for loans at the 650 credit score level may not be as favorable as those available to individuals with higher credit scores. Individuals in this range need to be mindful of managing their credit responsibly to improve their scores over time and access better financial opportunities.

Where can I get a personal loan with a 650 credit score?

Securing a personal loan with a 650 credit score is feasible, and various financial institutions and online lenders offer such options. Traditional banks, credit unions, and online lending platforms often extend personal loans to individuals with fair credit scores like 650. Additionally, credit accounts tailored for this credit range are available, providing borrowers with the opportunity to access the funds they need for various purposes (car loan, personal loan, secured credit card).

Online lenders, in particular, maybe more flexible in their eligibility criteria, considering factors beyond just the credit score. It's advisable to explore multiple options, compare interest rates, and carefully review terms and conditions before committing to a loan. By diligently managing credit accounts and making timely payments, individuals with a 650 credit score can not only secure a personal loan but also work towards improving their credit standing over time.

Is 650 a bad credit score Canada?

In Canada, a credit score of 650 is generally considered fair and falls within a moderate range. While it may not be classified as excellent, it's important to note that a 650 credit score is not necessarily a "bad" credit score. The key to improving and maintaining a healthy credit score lies in making on-time payments and establishing a positive payment history.

Individuals with a credit score of 650 can actively work towards enhancing their creditworthiness by consistently meeting their financial obligations, paying bills promptly, and managing credit accounts responsibly. By demonstrating a commitment to on-time payments and cultivating positive financial habits, individuals can gradually improve their credit score over time. Rather than focusing on whether 650 is considered "bad," the emphasis should be on taking proactive steps to foster a positive credit history, leading to better financial opportunities in the future.

Loan Terms