Loans for Fair Credit Score for April 2024

Get a loan for fair credit score from one of the lenders verified by our specialists. On 24.04.2024 there are 9 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
Offers: 9
Updated
04.04.2024
17:12
Best Quick Loan Today 24.04.2024*
Mr. Payday
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Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
up to $10.000
Mogo
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$15,000
Rate
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Effective interest rate on the product

up to 46.96%
Term
i

Loan term for the financial product

up to 60 months
Coast Capital Savings
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$50,000
Rate
i

Effective interest rate on the product

7.5%
Term
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Loan term for the financial product

60 months
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Cash Money
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
50$ - 1500$
Rate
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Effective interest rate on the product

up to 391%
Term
i

Loan term for the financial product

1 - 62 days
GoDay
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$100-$1,500
Rate
i

Effective interest rate on the product

up to 495.36%
Term
i

Loan term for the financial product

up to 62 days
24Cash
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$50-$500
Rate
i

Effective interest rate on the product

up to 26%
Term
i

Loan term for the financial product

up to 120 days
Cash 4 You
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$120-$1,500
Rate
i

Effective interest rate on the product

up to 391.07%
Term
i

Loan term for the financial product

up to 14 days
Loan Express
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$100-$1,500
Rate
i

Effective interest rate on the product

up to 517.08%
Term
i

Loan term for the financial product

up to 62 days
Credit Matik
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$250-$15,000
Rate
i

Effective interest rate on the product

up to 32%
Term
i

Loan term for the financial product

up to 12 month
Reviews
Royal Bank of Canada
4.6
I appreciate the transparency in the loan terms provided by Royal Bank of Canada, with no hidden fees or charges.
Review
Royal Bank of Canada
4.4
RBC provided me with a flexible loan repayment schedule, making it easier to manage.
Review
Royal Bank of Canada
2.4
I encountered some hidden fees when repaying the loan with RBC, making it more expensive than I expected.
Review
Royal Bank of Canada
2
Unfortunately, the loan terms offered to me by RBC turned out to be less favorable than those of other banks.
Review
Royal Bank of Canada
4.2
It's very convenient to use RBC's online services to manage my loan and make monthly payments.
Review
Royal Bank of Canada
4.2
I obtained my home loan with RBC, and they were very flexible in setting terms that suited my financial capabilities.
Review

A loan with fair credit in Canada refers to a financial product specifically designed for individuals with fair credit scores. Fair credit typically falls within a certain credit score range, and while it may not be considered excellent, it is not in the poor credit category. Fair credit personal loans are tailored to meet the needs of fair credit borrowers who may not qualify for loans with the most favorable terms.

Features

  1. Flexible Minimum Credit Score Requirement. Fair credit loans cater to individuals with fair credit scores, offering flexibility in the minimum credit score required for eligibility. This allows those with credit scores in the fair range to access financing.

  2. Varied Loan Amounts. Lenders providing fair credit loans offer a range of loan amounts to accommodate different financial needs. Borrowers can find options suitable for their specific requirements, whether it's a small personal loan or a larger amount for significant expenses.

  3. Competitive Interest Rates. Despite the fair credit status of borrowers, many fair credit loans come with competitive interest rates. Lenders may offer rates that are reasonable and tailored to the borrower's creditworthiness within the fair credit category.

  4. Reasonable Origination Fees. Some fair credit loans may have origination fees, but they are often reasonable. Origination fees are charges applied by lenders for processing the loan, and borrowers should compare these fees when evaluating loan options.

  5. Flexible Repayment Terms. Fair credit personal loans typically provide borrowers with flexible repayment terms. This allows individuals to choose a repayment plan that aligns with their financial situation, offering options such as monthly payments over a set period.

  6. Secured and Unsecured Options. Fair credit loans may come in both secured and unsecured forms. Secured personal loans require collateral, such as an asset, while unsecured personal loans don't necessitate collateral. This variety gives borrowers the choice based on their preferences and circumstances.

Pros and cons

Pros

Accessibility for Fair Credit Borrowers. Fair credit loans provide an avenue for individuals with fair credit scores to access financing. This inclusivity allows borrowers who may not qualify for loans with excellent terms to still secure personal loans.

Flexible Loan Options. Lenders offering fair credit loans typically provide a range of loan options, including unsecured personal loans and debt consolidation loans. This flexibility enables borrowers to choose the loan type that best suits their financial needs.

Potential for Debt Consolidation. Fair credit loans can be used for debt consolidation, allowing borrowers to merge multiple debts into a single, manageable loan. This can simplify repayment and potentially lower interest rates, helping borrowers regain control of their finances.

Opportunity to Improve Credit. Successfully managing a fair credit loan, making on-time payments, and meeting the agreed-upon terms can contribute to improving one's lower credit score over time. This can open doors to better financial opportunities in the future.

Cons

Higher Interest Rates. One of the main drawbacks of fair credit loans is the likelihood of higher interest rates compared to loans offered to individuals with excellent credit scores. Borrowers may end up paying more in interest over the life of the loan.

Potential for Origination Fees. Some fair credit loans may come with origination fees, adding an upfront cost to the borrowing process. Borrowers should be aware of these fees and factor them into their decision-making when choosing a loan.

Stricter Terms and Conditions. Fair credit loans may come with stricter terms and conditions, such as shorter repayment periods and more rigid eligibility criteria. Borrowers should carefully review the terms to ensure they align with their financial situation.

Limited Loan Amounts. While fair credit loans provide access to financing, the loan amounts may be limited compared to those available to individuals with higher credit scores. This limitation could impact the ability to address larger financial needs.

How to get a loan for fair credit?

Apply for a Loan

  1. Check Your Credit Reports. Start by obtaining a copy of your credit report to understand your fair credit score and identify any discrepancies. Reviewing your credit report will also give you insights into factors influencing your credit standing.

  2. Research Lenders Specializing in Fair Credit Loans. Look for lenders, including credit unions and online lenders, that specialize in providing personal loans for fair credit. Compare their offerings, including interest rates, loan terms, and origination fees.

  3. Gather Necessary Documentation. Prepare the required documentation, such as proof of income, employment history, and information about your financial situation. Having these documents ready can expedite the unsecured personal loan application process.

  4. Apply for Pre-Approval. Consider applying for pre-approval with multiple lenders. Pre-approval involves a soft credit check, which doesn't impact your credit score. This step helps you understand the loan amounts and interest rates you may qualify for.

  5. Review Loan Offers and Terms. Once you receive fair credit personal loan offers, carefully review the terms, including interest rates, repayment terms, and any associated fees. Compare the offers from different lenders to choose the best personal loans for your fair credit situation.

Requirements and conditions

Conditions

  1. Interest Rates. Fair credit loans often come with interest rates that may be higher than those offered to individuals with excellent credit scores. The specific rate can vary among lenders and is influenced by the borrower's fair credit standing.

  2. Loan Terms. The terms of fair credit loans may have certain limitations, including shorter repayment periods compared to loans extended to borrowers with higher credit scores. Borrowers should carefully review and understand the specified loan terms before accepting the offer.

  3. Loan Amounts. While fair credit loans provide access to financing, the loan amounts may be subject to limitations. Lenders may offer smaller loan amounts to borrowers with fair credit, impacting the ability to address larger financial needs.

  4. Origination Fees. Some fair credit loans may come with origination fees, representing the cost of processing the loan. Borrowers should be aware of these fees and factor them into their decision-making when evaluating loan options.

  5. Secured vs. Unsecured Options. Fair credit borrowers may encounter both secured and unsecured loan options. Secured loans require collateral, such as an asset, while unsecured loans do not. The choice between the two depends on the borrower's preferences and willingness to provide collateral.

  6. Repayment Terms. Fair credit loans may offer flexible repayment terms, allowing borrowers to choose a plan that aligns with their financial situation. However, it's essential for borrowers to understand the specific terms and conditions related to repayment.

Requirements

  1. Fair Credit Score. Typically, lenders offering fair credit loans require a credit score within the fair credit range. The specific score threshold may vary among lenders, but fair credit borrowers should generally have a credit score that falls within the defined fair credit category.

  2. Stable Income. Lenders often require borrowers to demonstrate a stable and verifiable source of income. This income is crucial in assessing the borrower's ability to repay the loan. Proof of employment and consistent income may be necessary documentation.

  3. Credit History. In addition to the credit score, lenders may review the borrower's credit history. A positive credit history, even with a fair credit score, can enhance the chances of loan approval. Lenders may consider factors such as on-time payments and responsible credit use.

  4. Debt-to-Income Ratio. Lenders assess the borrower's debt-to-income ratio to ensure that the individual has the capacity to take on additional debt. This ratio is calculated by dividing total monthly debt payments by gross monthly income.

  5. Minimum Age and Residency. Borrowers typically need to be of legal age and residents of Canada. Lenders may have specific requirements regarding the minimum age of borrowers.

  6. Valid Identification. Lenders often require valid identification, such as a government-issued ID, to verify the borrower's identity and ensure compliance with legal and regulatory requirements.

  7. Active Bank Account. Many lenders prefer borrowers to have an active bank account. This account is often used for the disbursement of loan funds and facilitates automatic repayments.

Best places to get a loan for fair credit

  1. easyfinancial specializes in offering unsecured personal loans, making it an accessible option for individuals with fair credit scores. They focus on providing financial solutions for those who may have difficulty securing loans from traditional lenders.

  2. Fairstone is a lender that offers personal loans, catering to a wide range of credit profiles. They provide both secured and unsecured loan options, making it possible for fair credit borrowers to access financing with varying terms.

  3. Money Mart is known for its financial services, including cash advances and short-term loans. While they offer personal loans that cater to a broad customer base, individuals with fair credit may find options for short-term borrowing.

  4. SkyCap Financial specializes in providing personal loans, including both secured and unsecured options. They aim to assist individuals with fair credit in securing loans for various purposes, offering flexibility in loan terms and amounts.

Ways to receive the money

  1. Direct Deposit. Many lenders prefer to use direct deposit to transfer loan funds directly into the borrower's bank account. This is a convenient and secure method that allows for quick access to the funds.

  2. Check Mailing. Some lenders may send loan funds to borrowers via traditional paper checks. The borrower then receives the check by mail and can deposit it into their bank account.

  3. Electronic Transfer. Lenders may utilize electronic transfer methods, such as Automated Clearing House (ACH) transfers, to send funds directly to the borrower's bank account. This is a common and efficient way to transfer money electronically.

  4. Interac e-Transfers. In the digital landscape, some lenders may utilize Interac e-Transfers, a popular electronic funds transfer service in Canada. Through this method, loan funds are sent directly to the borrower's email address or mobile number, allowing for quick and secure access to the funds.

Things to pay attention to

  1. Interest Rate. Pay close attention to the interest rate offered on fair credit loans, as it significantly impacts the cost of borrowing. Compare rates among personal loan providers to find the best terms.

  2. Origination Fee. Be aware of any origination fees associated with fair credit loans. Some lenders charge fees for processing the loan, impacting the overall loan amount and its affordability.

  3. Loan Terms Range. Understand the range of loan terms available. This includes the duration of the loan, which can vary among lenders. Choose a repayment period that aligns with your financial goals and capabilities.

  4. Secured vs. Unsecured Options. Differentiate between secured and unsecured personal loans. Some lenders offer secured loans that require collateral, while other lenders provide unsecured loans that do not. Consider your assets and preferences when choosing the loan type.

  5. Credit Utilization. Be mindful of how taking on additional debt through a fair credit loan may affect your credit utilization ratio. Balancing credit usage is crucial for maintaining a healthy credit profile.

  6. Lender Reputation. Research the reputation of personal loan lenders, especially those catering to fair credit borrowers. Look for reviews and feedback to ensure you choose a reputable and trustworthy financial institution.

How to repay a loan for fair credit?

  1. Review Loan Agreement. Begin by thoroughly reviewing the loan agreement. Understand the terms, including the interest rate, repayment schedule, and any applicable fees. Knowing the specifics will help you plan for repayments.

  2. Create a Budget. Develop a comprehensive budget that includes your monthly income, essential expenses, and the loan repayment amount. Ensure that you allocate enough funds to cover the loan installment without compromising other financial obligations.

  3. Set Up Automatic Payments. Whenever possible, set up automatic payments for your fair credit loan. This ensures that you never miss a payment and helps maintain a positive payment history, which is crucial for improving your credit score over time.

  4. Prioritize Timely Payments. Prioritize making timely payments to avoid late fees and negative impacts on your credit score. Timely payments contribute to a positive payment history, showcasing responsible financial behavior to creditors.

  5. Consider Additional Payments. If your financial situation allows, consider making additional payments towards your fair credit loan. This can help you pay off the loan faster, reduce overall interest costs, and potentially improve your credit standing.

Reasons for getting rejected for a loan for fair credit

  1. Low Credit Score. A credit score within the fair range may still be considered risky by some lenders. If the score is at the lower end of the fair credit spectrum, it might impact the approval decision.

  2. Insufficient Income. Lenders typically assess the borrower's income to ensure they have the capacity to repay the loan. If your income is deemed insufficient to cover the loan amount or if it's unstable, it may lead to rejection.

  3. High Debt-to-Income Ratio. A high debt-to-income ratio, where your existing debts are significant compared to your income, may signal financial strain. Lenders may be hesitant to extend credit if they perceive a higher risk of default.

  4. Recent Late Payments. Recent late payments on credit accounts or a history of late payments could negatively impact your creditworthiness. Lenders often review your payment history to assess your reliability in meeting financial obligations.

  5. Recent Bankruptcy or Foreclosure. Recent bankruptcy filings or foreclosures may lead to loan rejections. Lenders view these events as high-risk indicators, affecting your ability to repay new debts.

  6. Limited Credit History. Having a thin or limited credit history might make it challenging for lenders to assess your creditworthiness. Without sufficient data, they may be more cautious in extending credit.

Alternatives

  1. Vehicle Title Loans. Vehicle title loans are a form of secured loan where borrowers use their vehicle's title as collateral. These loans are an alternative for those with fair credit, as the loan is secured by the value of the vehicle.

  2. Debt Consolidation Loans. Debt consolidation loans help individuals with fair credit by combining multiple debts into a single loan. This can simplify repayments and potentially offer a lower interest rate, making it easier to manage existing debts.

  3. Cash Advance Apps. Cash advance apps provide short-term, small-dollar loans. They are a quick and convenient alternative for individuals with fair credit who need immediate access to funds. However, borrowers should be cautious of high fees associated with these apps.

  4. No Credit Check Loans. No credit check loans cater to individuals with fair credit or no credit history. These loans consider other factors such as income and employment, making them accessible to those with less-than-perfect credit.

Editorial opinion

Fair credit loans serve as a vital financial tool for individuals navigating the complexities of credit challenges. These loans, including unsecured personal loans, cater to those with fair credit scores, offering opportunities to access personal loan funds and address various financial needs. While fair credit personal loans may involve higher interest rates compared to excellent credit options, they play a crucial role in providing financial assistance to a demographic that might face limited alternatives. It's essential for borrowers to carefully compare personal loans, considering factors such as the annual percentage rate, loan terms, and the reputation of fair credit lenders. Moreover, understanding minimum credit score requirements and being mindful of potential origination fees allows individuals to make informed decisions, ultimately contributing to responsible borrowing practices and potential improvement of credit scores over time.

Important

Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

  1. Make sure to confirm whether the lender is licensed to operate in your province. You can verify this information with your state regulator or attorney general.

  2. Check if the lender is a member of a reputable association, such as the Canadian Lenders Association (CLA). Membership in such organizations may provide an extra level of reliability.

  3. Carefully review all the terms and conditions of your payday loan contract.

  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

FAQ

Can I borrow money with a fair credit score?

Yes, it is possible to borrow money with a fair credit score. Lenders, including fair credit lenders, offer various options such as unsecured personal loans that cater to individuals with fair credit. While interest rates may be higher compared to those with excellent credit, these loans provide a valuable avenue for individuals to access funds, consolidate debt, or address financial needs.

What is the easiest loan to get approved for?

The easiest loan to get approved for is often a payday loan or a cash advance. These loans typically have minimal eligibility requirements, and the approval process is quicker compared to traditional loans. However, it's crucial to note that payday loans often come with high-interest rates and short repayment terms, making them a costly option.

What credit score do you need to get a $30,000 loan?

The credit score required to secure a $30,000 loan in Canada can vary among lenders. Generally, a credit score in the good to excellent range, typically above 660, increases your chances of approval for larger loan amounts. However, some lenders, including those catering to fair credit borrowers, may offer options for individuals with credit scores in the fair range (around 580-669).

Can I get a loan with a 600 credit score?

Yes, it is possible to get a personal loan with a fair 600 credit score in Canada. While a credit score of 600 is considered fair, there are lenders, including those specializing in fair credit loans, who may offer options for borrowers in this range. Keep in mind that the terms of the loan, including interest rates and fees, may be less favorable compared to loans offered to individuals with higher credit scores.

What is the lowest credit score to get a personal loan?

The lowest credit score to get a personal loan in Canada can vary, but some lenders may consider borrowers with a credit score of around 550 or higher. Keep in mind that lower credit scores may result in less favorable terms, including higher interest rates. It's essential to explore lenders specializing in fair credit loans and compare personal loan options to find the most suitable terms for your financial situation.

Loan Terms