But what about borrowers with fair credit?
Many personal loan lenders are willing to grant personal loans to borrowers with fair credit.
Below, weve rounded up the best personal loans for borrowers with fair credit.
FICO fair credit scores range from 580 to 669. VantageScore fair credit scores are in the low to mid 600s. This post focuses on FICO credit scores, which are more widely used.
These options are great for debt consolidation loans, home renovation loans and funding emergency expenses.
Best Loans for Fair Credit of 2023
1.
Pros and Cons of Upstart Personal Loans
2.
Pros and Cons of Upgrade Personal Loans
3.
While fair credit borrowers can qualify, they should be verging on good credit (640+).
But that higher credit score threshold means a lower interest rate and lightning-fast funding.
Pros and Cons of Rocket Personal Loans
4.
Pros and Cons of Discover Personal Loans
5.
LendingClub
LendingClub
LendingClub is a run-of-the-mill option for a personal loan with fair credit.
Theres nothing that jumps off the page, but terms are mostly fair.
(And the higher end of the range is also quite steep.)
Pros and Cons of LendingClub Personal Loans
6.
Pros and Cons of Best Egg Personal Loans
7.
(Youll have to let them do a hard credit inquiry.)
Pros and Cons of Navy Federal Personal Loans
8.
What saves Avant for digital-first borrowers is the highly rated mobile app, particularly on the Apple App Store.
Pros and Cons of Avant Personal Loans
9.
LendingPoint
LendingPoint
LendingPoint is a perfectly acceptable lender for securing a personal loan.
you’ve got the option to pre-qualify without a hard credit inquiry, so its worth checking out.
If you’re free to qualify for one of those, youre better off.
No Interest Til Almost 2027?
There are plenty of great resources available online, but were pretty fond of the one youre reading now.
(The better your credit, the more lenders are willing to lend you.)
Rates tend to be more favorable if you choose a shorter repayment term.
For many borrowers struggling with credit, however, loan term options arent very flexible.
At several lenders, you might be stuck choosing between either 3 or 5 years.
Fees
Some though not many lenders may offer you a loan without an origination fee.
But if youre struggling with your credit score, it will be more challenging to qualify with such lenders.
Minimum Required Credit Score
Not all fair credit loans are created equal.
Narrow your list down to personal loan options that you actually have a chance to qualify for.
Funding Time
Some lenders are able to approve you the same day and fund you the next.
Some strive for same-day funding.
Most take a couple of business days.
If you are in immediate need of cash, choose a lender that can get you funds the fastest.
Perks like that are worth considering.
How to Apply for a Personal Loan
Ready to get a personal loan?
Get Pre-Qualified
Almost all the personal loans we listed allow you to get pre-qualified without a hard credit pull.
See which loans youre eligible for and compare the results to determine the best option for you.
Supply the Proper Documentation
Once youve chosen your preferred lender, begin the actual app process.
You may need to submit documentation, like proof of income and proof of address.
If youre happy with it, sign the agreement.
Weve rounded up answers to the most commonly asked questions about personal loans.
A 640 credit score is at the higher end of fair credit.
A customer with a 640 credit score should not have trouble getting a personal loan.
If you have no credit history, you will have more difficulty getting approved for a personal loan.
However, even borrowers with a poor or fair credit score can get personal loans pretty easily.
In general, personal loans are easier to get approved for than a home loan or car loan.
Credit cards and payday loans are easier to get than personal loans.
If you’re able to avoid taking out a payday loan, do it.
Just be prepared for higher interest rates and less favorable terms for the loan agreement.
There are multiple lenders that approve loans for borrowers with a score of 600 (and even lower).
These loans typically top out between $35,000 and $50,000.
FICO defines a fair credit score as 580 to 669.
VantageScore is a little narrower, targeting credit scores in the low to mid 600s.
FICO scores are more widely used by lenders.
Contributor Timothy Moore is a writer and editor in Cincinnati, Ohio.
He focuses on banks, loans and insurance for The Penny Hoarder.
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