How to Get a Loan With a 400 Credit Score: Realistic Options and What to Expect

A credit score of 400 is considered very poor by most lenders, and unfortunately, it can severely limit your options when trying to borrow money. But that doesn’t mean getting a loan is impossible. There are still some paths available — though they often come with trade-offs. In this article, we’ll break down what you can realistically expect and how to improve your chances of approval.

What Does a 400 Credit Score Mean?

A 400 credit score falls well below the average credit score range. Most credit scores range from 300 to 850, and anything under 580 is considered poor. A 400 score may be the result of:

Missed or late payments
Defaulted loans
High credit utilization
Bankruptcy or collections
Limited or no credit history

Lenders see a 400 score as high risk, which means traditional financing options — like bank loans or prime credit cards — are generally off the table.

Can You Get a Loan With a 400 Credit Score?

Yes, but your choices will be limited to lenders who specialize in high-risk borrowers. These lenders may still approve your application, but often at a higher cost (in the form of interest, fees, or collateral).

Here are some types of loans that may be available:

Loan Options to Explore

1. Secured Personal Loans

Requires collateral (like a vehicle or savings account)
Lower interest rates compared to unsecured loans
Risk of losing your asset if you default

2. Payday Loans

Small loan amounts (usually $100–$1,000)
Easy to qualify, even with poor credit
Very high fees and short repayment terms
Often a last resort due to potential debt cycle

3. Credit Union Loans

More flexible than traditional banks
Some offer “credit builder” or emergency loans
May still deny very low credit scores, but worth trying

4. Online Installment Lenders

Fixed monthly payments over time
Higher approval rates for low credit scores
May charge high interest rates or origination fees

What You’ll Need to Qualify

Even with a 400 credit score, some lenders will look at more than just your credit report. They might consider:

Proof of steady income (pay stubs, benefits, self-employment)
Active checking account
Valid ID and contact information
Debt-to-income ratio

If you can show that you’re able to repay the loan — even with bad credit — your chances improve.

Tips to Improve Your Chances

Apply with a co-signer: Someone with better credit can help you qualify for better terms
Offer collateral: Reduces risk for the lender and may lower your interest rate
Request a smaller amount: You’re more likely to be approved for $500 than $5,000
Avoid multiple hard inquiries: Too many applications can hurt your score even more

Risks to Watch Out For

Predatory lenders: Be cautious of any lender that guarantees approval or asks for payment upfront
Very high APRs: Some loans can have annual percentage rates over 100%
Short repayment windows: Make sure you can realistically repay the loan without rolling it over or defaulting

Final Thoughts

Getting a loan with a 400 credit score isn’t easy, but it’s not impossible either. Focus on lenders who consider alternative factors beyond just your credit score, and always read the fine print before signing anything. If you don’t need the money urgently, consider taking time to build your credit — even a small increase can open more affordable options.