Complete guide
Answers, tradeoffs and next steps
Use the sections below to evaluate fit, not to predict approval.
What “bad credit” means on this page
Base FICO Scores run from 300 to 850. FICO generally labels scores below 580 as “Poor,” 580–669 as “Fair,” 670–739 as “Good,” 740–799 as “Very Good,” and 800+ as “Exceptional.” Lenders can use different score models and their own underwriting thresholds, so FICO
A low score changes price and lender set, but payment still has to work
The cost impact can be substantial. The chart below is intentionally illustrative: it holds principal and term constant to show how APR alone changes total repayment. It is not a rate quote and does not imply that any listed APR is available to a particular user.
Illustrative $2,000, 12-month fixed-payment scenarios at 18%, 28% and 36% APR; no origination fee.
| Illustrative APR | Monthly payment | Total repayment |
|---|---|---|
| 18% | $183.36 | $2200.32 |
| 28% | $193.01 | $2316.14 |
| 36% | $200.92 | $2411.09 |
What may be checked besides the score
| Data/check | Why a lender may use it | What the user should see |
|---|---|---|
| Credit report/score | Past credit behavior and obligations | Bureau/model if disclosed; hard vs soft stage |
| Income | Ability to support repayment | Accepted evidence and frequency |
| Debt obligations | Existing payment burden | Payment should be tested against residual cash |
| Bank transactions or cash flow | Deposit stability and account behavior | Consent, data fields and recipient |
| Identity/fraud checks | Confirm applicant and reduce fraud | Not described as a credit approval |
| Alternative data | Supplement or replace some traditional credit inputs | Explain what data is used where known |
Soft inquiry vs hard inquiry
CFPB distinguishes soft inquiries from hard inquiries. A soft inquiry does not affect credit scores, while a hard inquiry can. A platform may let a user check or prequalify with a soft inquiry and a lender may later use a hard inquiry for a formal application. CFPB_INQUIRY