Best Personal Loans For Fair Credit – Your credit score plays a crucial role in personal loans, as lenders use it to determine your eligibility, interest rates, and borrowing limits.
The best personal loans for fair credit typically apply to scores ranging between 580 and 669. While many personal loans often require higher credit scores, lenders are willing to offer options for those with fair credit.
Securing an affordable personal loan with fair credit can be challenging, but some lenders provide reasonable choices.
The top personal loans for fair credit typically come from lenders with straightforward qualification criteria and reasonable interest rates.
Even with a fair credit score, you can qualify for personal loans to cover expenses like home improvements, debt consolidation, or other financial needs.
What Is A Fair Credit Score?
A fair credit score ranges from 580 to 669, but every lender has their definition of a fair credit score. However, a fair score in the good credit range can get you access to a wider range of personal loan options and, most often, lower rates.
Where Can I Get A Personal Loan With Fair Credit?
There are different places you can get a personal loan with fair credit. But the best places to get them are credit unions and online lenders. Let us take a look at the places you can get personal loans with fair credit.
If you have a good relationship with a local bank, it will go a long way. However, you may not qualify for a loan from any major national banks because they prefer borrowers with good or excellent credit scores.
Another place you can get personal loans with a fair credit score is through online lenders. They use alternative data to make a loan based on your full financial picture rather than just your credit and income.
However, you can go ahead and pre-qualify with multiple online lenders to see your chances of qualifying and what rate to expect without affecting your credit score.
Any credit union you are going with will consider your membership history. For instance, if you have been a member for a very long time and you usually repay your debts and keep your account in good shape, the credit union will certainly consider all that.
How Can I Improve My Credit Score Before Applying?
Before applying for a personal loan, you have to make sure you improve your credit score. If you have a lower credit score and you want to increase your chances of receiving a better loan, just follow these simple steps below.
Pay Off Existing Debt
One of the ways to improve your credit score before applying for a personal loan is to pay off any existing debt.
In case you do not know, your debt levels impact your credit utilization ratio. So paying off outstanding debts can boost your credit score.
Become An Authorized User
Becoming an authorized user involves gaining access to an existing credit card account. As an authorized user, the credit card’s payment history is reflected on your credit report.
If the account has a positive history of on-time payments, it can positively impact and boost your credit score.
Request A Credit Limit Increase
If you want to increase your credit score, you can request a credit limit increase. To request a credit limit increase, all you have to do is contact your card provider.
Pay All Your Bills On Time
Developing the habit of paying your bills promptly is essential for enhancing your credit score. Consistently ensuring timely payments for all your bills is crucial, as any delays can hinder your chances of improving your credit score.
Best Personal Loans For Fair Credit
Numerous personal loan lenders provide options for individuals with fair credit. Let’s explore the list below.
First on the list is Upgrade, a top personal loan lender for individuals with fair credit, offering attractive discounts to borrowers.
Upgrade provides quick funding on fixed-rate loans without charging origination fees and comes with additional borrower benefits. To apply for a personal loan from Upgrade, you need to be 18 years of age or older.
If you are looking for the best personal loan lender that offers loans with a fair credit score and also has low rates, then you should try out Discover.
They offer tools that will help you improve your credit, including free FICO scores. Also, if you are consolidating debt, they can help you make a direct payment.
With Discover, you will incur no added fees or costs on your loan; just make sure you repay on time.
SoFi is known for its amazing customer service. It offers a wide range of financial products, like student loans, investment products, mortgages, and personal loans.
When you borrow from SoFi, you automatically become a member, which gives you access to special perks and discounts.
The interesting thing about SoFi is that it does not charge prepayment penalties or fees at all.
Upstart stands out as a great option for individuals with bad credit. Unlike many lenders, it goes beyond just looking at your credit score when deciding to approve a loan.
Upstart takes into account factors such as your education and employment status during the approval process. The minimum credit score requirement for Upstart is 300.
Ranked fifth on this list is PenFed, a credit union extending loans to individuals with fair credit. They provide options for small loans, and it’s necessary to become a member before applying for a personal loan.
To join PenFed, you need to open a savings account and deposit a minimum of $5. PenFed offers competitive rates, which are lower than those of many other lenders.
Universal Credit is a trustworthy company providing personal loans. You can secure approval from Universal Credit with a credit score as low as 560, which is lower than what many other lenders require.
Additionally, you have the flexibility to borrow anywhere from $1,000 to $50,000, with repayment terms ranging from three to five years.
Frequently Asked Questions
What Is Required for An Instant Loan With Fair Credit?
To qualify for an instant loan with fair credit, you need to submit documentation proving your income, a government-issued ID, and proof of address during the application process.
What Credit Score Do I Need For A $5,000 Loan?
This varies based on your income, the lender you select, and whether you have a co-signer.
Can I Qualify For A Loan If My Credit Score Is Lower Than 670?
Yes, you can qualify for a loan. But before you apply for a loan, you have to get prequalified with multiple lenders. Once you’ve gotten prequalified, the lender will tell you whether or not you will qualify for the loan.