How To Get A Personal Loan In A COVID-19 Economy | Personal finance
Of the loan officers surveyed last quarter, 49% said their institution’s credit standards had tightened somewhat. Almost 12% said their credit standards have tightened significantly.
Good credit and a long history of on-time credit and credit card payments will help you qualify for a loan now, Herron says. However, if you have missed payments in the past few months, it could signal a lender that you are in trouble.
Upstart, an online lending platform, required applicants to have a minimum FICO score of 580 prior to the pandemic, well below the 629 threshold for a “bad” score. The company raised the requirement to 620 for a period in June and has since settled at 600.
“Given the volatility caused by the coronavirus, most are [of Upstart’s] Of course, banking partners evaluate how they can cope with this difficult time and decide for themselves how high their creditworthiness should be at the moment and how much they are willing to lend, ”said Dave Girouard, CEO of Upstart, in an email interview with NerdWallet .
Shop for a good price
Even if you have great credit and solid income, you may not get the same loan offer that you received before the pandemic.
Some lenders have reduced the amount of money you can borrow or increased their minimum APR and fees.