How To Get A Personal Loan In A COVID-19 Economy Personal finance
Among loan officers surveyed in the last quarter, 49% said their institution’s lending standards have tightened somewhat. Almost 12% said their credit standards have tightened significantly.
A high credit score and a long history of on-time loans and credit card payments will help you qualify for a loan now, says Herron. But if you’ve missed payments in the past few months, it could signal a lender that you’re having trouble.
Upstart, an online lending platform, required a minimum FICO score of 580 for applicants before the pandemic, well below the threshold of 629 for a “bad” score. The company raised the requirement to 620 for a period in June, and it has since stood at 600.
“With the volatility caused by the coronavirus, most [of Upstart’s] Banking partners naturally assess how to get through this tricky time and decide for themselves what their minimum credit score should be right now and how much they’re willing to lend, ”Upstart CEO Dave Girouard said in an interview with e-mail with NerdWallet.
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Even if you have exceptional credit and a solid income, you may not get the same loan offer you did before the pandemic.
Some lenders have reduced the amount of money you can borrow or increased their APRs and minimum fees.