Lenders will see your low score as a reflection of faulty credit behaviour and might be unwilling to offer you a high credit limit.
Can I get a loan with a credit score of 600?
It is not likely that you will get a loan with a credit score of 600. Most banks look for a minimum score of 750 when deciding whether to approve of a loan application, so 600 is not a good credit score to have. If your score is less than 750, it is advisable to increase your score before applying for a credit card/loan.
What are the disadvantages of applying for loan with a credit score of 600?
1. Application might be rejected: A low credit score signifies that you have had a problem with repayment in the past and lenders will be unwilling to lend to a customer with such a credit profile. Each rejection will cause your credit score to drop further.
2. Higher interest rate: With a low score of 600, lenders will see you as a high-risk customer and will offer higher interest rates to safeguard their money. A higher interest rate can be an unnecessary financial burden and will also increase your chance of defaulting on payments.
3. Lower credit limit: Lenders will see your low score as a reflection of faulty credit behaviour and might be unwilling to offer you a high credit limit.
All these disadvantages above will have a negative and long-term impact on your credit score. Therefore, it is advisable to improve your score to 750 before applying for a credit card/loan. You could contact a professional credit management company, like CreditMantri, to guide you on how to improve your score so that you can have faster and easier access to credit.