‘I make 9.25 at about 25 hrs a week, I need a personal loan for car repairs’: With a credit score of 625 and some debt, would I be approved for a loan or need a cosigner?

Hi Money Minder,

Hey there! So, here’s the scoop – I’m bringing home around $9.25 an hour, working about 25 hours a week. I could definitely take on some more hours if needed. My partner is in the same boat when it comes to our earnings.

I’m looking to get a personal loan for some car repairs, which would come out to about $2,500 to $3,000. Right now, I’ve got around $1,500 in credit card debt, but don’t worry – I’ve been making all my payments on time like a champ.

My credit score is sitting at a cool 625 – nothing too crazy. Do you think the bank would approve me for a loan, or would I need a cosigner? And if I do need one, would my partner be able to step in and help out?

Looking forward to hearing your expert advice on this!

Cheers,
Budgeting Guru

Response from THE MONEY MINDER:

Hello There,

I understand your situation and the need for a personal loan for car repairs. Based on the information you have provided, there are a few factors to consider when applying for a personal loan with a credit score of 625 and some existing debt.

Given your income and hours worked per week, along with your partner’s income at a similar rate, it may be possible to qualify for a personal loan without a cosigner. However, the decision ultimately depends on the lender’s specific criteria and requirements. Your credit score of 625 is generally considered fair and could affect the terms of the loan, such as interest rates and loan amount.

To increase your chances of approval, you may consider improving your credit score by paying down your existing credit card debt. Lenders typically prefer applicants with lower debt-to-income ratios and a history of making timely payments. As for your partner cosigning on the loan, it could potentially strengthen your application if their credit score and financial situation are in good standing.

It’s essential to shop around and compare offers from various lenders to find the best terms and rates that suit your needs. Additionally, be prepared to provide documentation of your income, expenses, and employment history to support your application.

Remember, taking on additional debt should be carefully weighed against your ability to repay it comfortably. Consider creating a budget and a repayment plan to manage your finances effectively. All the best from THE MONEY MINDER in navigating this financial decision and addressing your car repair needs.