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Personal Loans for Fair Credit in The United States

Get a personal loan with fair credit from one of the lenders verified by our specialists. On 28.02.2024 there are 4 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
Offers: 4
Updated:
28.02.2024
08:41
Best Quick Loan Today 28.02.2024*
Finanso
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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
100.00 – 2000.00 $
Rate
i

Effective interest rate on the product

0.05 – 2.50 %
Term
i

Loan term for the financial product

5 days – 3 months
Best Personal Loan Today 28.02.2024*
Finanso
Personal Loans
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
2000.00 – 100000.00 $
Rate
i

Effective interest rate on the product

6.34 – 35.89 %
Term
i

Loan term for the financial product

2 months – 72 months
LightStream
Personal Loans
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
$5,000-$100,000
Rate
i

Effective interest rate on the product

up to 24.49%
Term
i

Loan term for the financial product

up to 144 months
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Submit One Loan Application Online!

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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.

4.25
(20 Ratings)
Recommended FinScore™
0
300
650
1000
$500-$4,000
Rate
i

Effective interest rate on the product

up to 160%
Term
i

Loan term for the financial product

9-18 months
Reviews
CreditFresh
4.8
The application process was a breeze, and I received a response within minutes. This straightforward and prompt procedure proved to be a great help to me during a crucial time of need.
Review
JG Wentworth
4.6
The assistance I received was exceptional. My representative handled my case with care and provided all the necessary information...
Review
OneMain Financial
4.4
The loan application process was straightforward, and the representative I interacted with displayed patience, provided informative answers, and was quite pleasant throughout...
Review
My Funding Choices
4.6
The process was swift and straightforward, which was particularly helpful during a time when, despite my reluctance to seek assistance, I genuinely needed help.
Review
Plain Green Loans
2
The interest rate is shockingly high, and it feels like taking advantage of individuals facing financial challenges when unexpected expenses arise...
Review
Advance America
4.6
I have never encountered any issues with this company. They consistently deliver funds on time, and the repayment process is straightforward...
Review
Personal Loans for Fair Credit

A personal loan for fair credit refers to a loan available to individuals with a credit score that falls within the fair range, typically ranging from 580 to 669. Fair credit indicates moderate creditworthiness, and while it may not qualify borrowers for the best interest rates and terms, it does provide an opportunity to access funds for various personal needs. Personal loans for fair credit are typically unsecured, meaning they do not require collateral. They can be used for purposes such as debt consolidation, home improvements, medical expenses, or major purchases. Lenders may assess the borrower's income, employment history, and overall financial health when considering their eligibility for a personal loan, and interest rates and terms may vary depending on these factors. It's important for individuals with fair credit to compare loan offers from different lenders to find the most favorable terms available to them.

Features

  1. Interest Rates. Personal loans for fair credit may have higher interest rates compared to loans offered to individuals with excellent credit scores. The interest rates are determined based on the borrower's creditworthiness and other factors assessed by the lender.
  2. Loan Amount. The loan amount for fair credit personal loans can vary depending on the lender's policies and the borrower's financial situation. Generally, these loans offer a range of loan amounts that borrowers can choose from based on their needs.
  3. Repayment Terms. Personal loans for fair credit typically come with fixed repayment terms. These terms specify the duration of the loan and the monthly installments to be paid. The length of the repayment term can vary, but it's important to consider the total cost of the loan over its duration.
  4. Unsecured Nature. Personal loans for fair credit are often unsecured, meaning they do not require collateral. This makes them accessible to borrowers who may not have significant assets to pledge as security.
  5. Application Process. Applying for a personal loan for fair credit is generally straightforward. Lenders typically require applicants to provide personal and financial information, such as income details, employment history, and identification documents.
  6. Credit Building Opportunity. Successfully managing and repaying a personal loan for fair credit can help improve your credit score over time. Making timely payments and paying off the loan as agreed can demonstrate responsible financial behavior to future lenders.

Pros and Cons

Pros

Accessibility. Personal loans for fair credit provide an opportunity for individuals with moderate credit scores to access funds when needed, as usually there is no minimum credit score requirement. They offer an option for borrowing money even if you don't have excellent credit.

Flexibility of Use. Borrowers can typically use personal loans for fair credit for various purposes, such as consolidating debt, covering medical expenses, financing home improvements, or making major purchases. The loan can be customized to suit individual needs.

No Collateral Required. Most personal loans for fair credit are unsecured, meaning they don't require collateral. This eliminates the risk of losing assets if unable to repay the loan.

    Cons

    Higher Interest Rates. Compared to loans offered to individuals with excellent credit, personal loans for fair credit tend to come with higher interest rates. This can result in increased borrowing costs over the loan term.

    Potentially Limited Loan Amounts. Depending on the lender's policies and the borrower's financial situation, personal loans for fair credit may offer lower loan amounts compared to loans for borrowers with higher credit scores. This can restrict access to larger sums of money.

    Limited Options. Some lenders may have stricter eligibility criteria for personal loans for fair credit. This means borrowers may have fewer options available to them and may need to search for lenders specifically catering to fair credit borrowers.

    Impact on Credit Score. If borrowers fail to make timely payments or default on the loan, it can have a negative impact on their credit score. It is crucial to ensure that the loan is repaid responsibly to avoid damaging creditworthiness further.

      How to Get a Personal Loan for Fair Credit?

      Apply for a loan

      1. Check Your Credit Score. Start by obtaining a copy of your credit report and checking your credit score. This will give you an understanding of where you stand regarding creditworthiness.
      2. Improve Your Credit. Take steps to improve your credit score if possible. Pay your bills on time, reduce outstanding debts, and avoid applying for new credit in the months leading up to your loan application. These actions can help boost your credit profile.
      3. Research Lenders. Look for lenders who specialize in personal loans for fair credit borrowers. Research online, check with local banks and credit unions and compare their offerings, interest rates, and loan terms. Look for lenders that have a favorable reputation and reasonable terms.
      4. Gather Required Documentation. Prepare the necessary documentation that lenders typically request. This may include proof of identity, employment verification, income statements, bank statements, and other documentation demonstrating your financial stability.
      5. Prequalify with Multiple Lenders. Consider prequalifying with multiple lenders to gauge your eligibility and get an idea of the loan terms they can offer. Prequalification involves a soft credit check that won't impact your credit score.
      6. Apply for the Loan. Once you have identified a lender that meets your needs, submit a formal loan application. Provide accurate and complete information to increase your chances of approval.
      7. Provide Additional Information if Required. Be prepared to provide any additional information or documentation requested by the lender during the application process. Respond promptly to their inquiries to keep the process moving smoothly.
      8. Review Loan Offers. Review the terms and conditions after receiving loan offers. Compare the interest rates, loan amounts, repayment terms, and any associated fees. Consider the total cost of the loan over its duration.
      9. Choose the Best Option. Select the loan offer that best fits your needs and aligns with your financial capabilities. Remember to consider factors such as affordability, repayment flexibility, and any other specific requirements you may have.
      10. Accept the Loan and Repay Responsibly. Review and sign the loan agreement once you have chosen a loan offer. Make sure you understand the terms and conditions. Commit to repaying the loan responsibly and making timely payments throughout the loan term.

      Requirements and Conditions

      1. Credit Score Range. Lenders offering personal loans for fair credit typically set a specific minimum credit score. This range may vary, but it generally falls between 580 and 669. Some lenders may have a slightly broader or narrower range.
      2. Income Verification. Lenders will require proof of income to ensure that you have the financial means to repay the loan. This may involve providing recent pay stubs, tax returns, or bank statements. The specific income requirements can vary, but lenders generally prefer borrowers with stable and sufficient income.
      3. Employment History. Lenders may consider your employment history as part of their assessment. They may prefer borrowers with a steady job or a consistent source of income. Some lenders may have a minimum employment periods requirement, such as six months or a year with the same employer.
      4. Debt-to-Income Ratio. Lenders assess your debt-to-income ratio, which is the percentage of your monthly income that goes toward debt payments. They want to ensure that you have enough disposable income to handle loan repayments comfortably. A lower debt-to-income ratio generally improves your chances of approval.
      5. Loan Amounts. The loan amounts available for fair credit borrowers can vary. Lenders may set minimum and maximum loan limits. The specific loan amounts offered will depend on factors such as your creditworthiness, income, and the lender's policies.
      6. Interest Rates. Personal loans for fair credit often come with higher interest rates than loans for borrowers with excellent credit. The exact interest rate will depend on factors such as your credit score, income, and the lender's evaluation of your financial profile.
      7. Loan Terms. Loan terms refer to the duration of the loan and the repayment schedule. Personal loans for fair credit usually offer terms ranging from one to five years, but this can vary among lenders. Shorter loan terms typically come with higher monthly payments but lower overall interest costs.
      8. Origination Fees. Some lenders may charge an origination fee, which is a one-time fee deducted from the loan amount. The fee is typically a percentage of the loan and can vary among lenders. Consider the impact of origination fees on the total cost of the loan.
      9. Late Payment Fees. Lenders may impose late payment fees if you fail to make timely loan payments. These fees can vary, so it's important to understand the consequences of late payments and factor them into your budget.
      10. Credit Impact. Successfully repaying a personal loan for fair credit can help improve your credit score over time. On the other hand, defaulting on payments or late payments can negatively impact your credit. Making payments as agreed to maintain or enhance your creditworthiness is crucial.

      Ways to Receive the Money

      1. Direct Deposit. The lender can deposit the loan funds directly into your bank account. This is a popular and convenient option as it allows you quick access to the funds. Once the loan is disbursed, you can use the money as needed.
      2. Check or Money Order. Some lenders may send you a check or money order for the loan amount. You can deposit or cash the check at your bank or a financial institution. This method provides a physical form of loan funds.
      3. Wire Transfer. In certain cases, the lender may choose to transfer the loan funds directly to your bank account using a wire transfer. This method ensures that the funds are available for immediate use.
      4. Prepaid Debit Card. Certain lenders may provide the loan funds through a prepaid debit card. They load the approved loan amount onto the card, which you can then use for purchases or withdraw cash as needed. This option can be useful if you don't have a bank account.

      Things to Pay Attention To

      1. APR (Annual Percentage Rate). Look for the APR, which represents the total cost of the loan, including both the interest rate and any applicable fees. Compare APRs from different lenders to find the most affordable option.
      2. Origination Fees. Check if the lender charges origination fees, which are upfront fees deducted from the loan amount. Consider the impact of these fees on the overall cost of the loan and factor them into your decision.
      3. Late Payment Policy. Understand the lender's policy regarding late payments. Determine the late payment fees and any grace period provided. Being aware of these terms will help you avoid unnecessary penalties.
      4. Prepayment Penalties. Some lenders impose prepayment penalties if you pay off the loan early. If you anticipate the possibility of repaying the loan ahead of schedule, choose a lender that does not charge prepayment penalties.
      5. Loan Security. Determine whether the loan is secured or unsecured. Secured loans require collateral, such as a vehicle or property, while unsecured loans do not. Consider the implications of loan security on your assets and the associated risks.
      6. Loan Approval Time. Find out the typical time it takes for the lender to approve and disburse the loan funds. If you need money urgently, look for lenders that offer quick approval and expedited funding.
      7. Customer Reviews and Reputation. Research customer reviews and ratings for the lender to gauge their reputation and customer satisfaction. This can provide insights into the lender's reliability, transparency, and overall quality of service.
      8. Credit Reporting. Understand how the lender reports loan activity to credit bureaus. A timely and positive loan repayment history can help improve your credit score over time. Ensure that the lender reports to major credit bureaus to maximize this benefit.
      9. Loan Terms and Conditions. Thoroughly read and understand the loan terms and conditions, including any clauses related to payment schedules, late fees, and potential modifications to the loan. Be aware of any potential risks or restrictions.
      10. Customer Support. Evaluate the lender's customer support quality and availability. Prompt and helpful customer service can make a significant difference in resolving queries or addressing concerns throughout the loan duration.

      How to Repay a Personal Loan for Fair Credit?

      1. Review Repayment Terms. Understand the repayment terms outlined in your loan agreement. Note the repayment schedule, due dates, and the total amount owed.
      2. Set Up Automatic Payments. Opt for automatic payments from your bank account. This ensures timely payments and helps you avoid late fees or missed payments. Contact your lender or set up automatic payments through your online banking platform.
      3. Maintain Sufficient Funds. Ensure that your bank account has sufficient funds to cover the loan payment on the scheduled due date. Consider setting up reminders or alerts to stay on top of payment deadlines.
      4. Make Extra Payments. If possible, make extra payments towards your loan. This can help reduce the principal amount and shorten the loan term, saving you on interest payments.
      5. Avoid Late Payments. Make payments on time to avoid late fees and protect your credit score. Set reminders, utilize automatic payments, or consider scheduling payments in advance to stay on track.
      6. Contact Lender if Needed. If you encounter financial difficulties or anticipate difficulties making payments, proactively contact your lender. They may offer alternative payment arrangements or provide guidance on managing your loan.
      7. Track Payments and Progress: Keep track of your loan payments and monitor your progress in paying off the loan. This can help you stay motivated and assess the impact on your overall financial goals.
      8. Pay Off the Loan Early. If feasible, consider paying off the loan early to save on interest costs. Contact your lender to confirm the process for early repayment and any potential prepayment penalties.
      9. Get Confirmation of Payment Completion. Once the loan is fully repaid, obtain confirmation from the lender. Keep records of this confirmation for future reference and to ensure accurate credit reporting.

      Alternatives

      1. Secured Line of Credit. It allows you to borrow against a collateral asset, such as a savings account, certificate of deposit, or home equity. Since it's secured, the interest rates may be more favorable than unsecured personal loans.
      2. Credit Starter Loan. Some lenders offer credit starter loans specifically designed for individuals with fair credit score or limited credit history. These loans often have lower borrowing amounts and may require a cosigner or collateral. They provide an opportunity to build credit while accessing funds.
      3. Credit Cards. You may qualify for credit cards tailored to this credit range if you have fair credit. Look for credit cards that offer reasonable interest rates, low annual fees, and potential rewards or benefits. Responsible credit card use can help improve your credit score over time.
      4. Peer-to-Peer Lending. These platforms connect borrowers with individual investors. They may consider alternative factors beyond just credit scores, providing an opportunity to secure a loan based on your unique circumstances.
      5. Credit Union Loans. Local credit unions often offer more flexible lending options to their members. They may have specific loan programs for individuals with fair credit, offering more personalized service and favorable terms.
      6. Debt Consolidation Loans. If you have multiple debts, consolidating them into a single loan can make repayment more manageable. Look for debt consolidation programs or loans specifically tailored for individuals with fair credit.

      Editorial Opinion

      Personal loans offer a crucial avenue for those with fair credit scores, a group too often sidelined. These loans are more than just financial tools; they represent a beacon of hope and opportunity, enabling individuals to pursue their goals, alleviate debt, and navigate unforeseen financial hurdles. Personal loans for fair credit are about breaking down barriers, offering a chance to not only meet immediate financial needs but also to enhance credit scores through responsible management. This, in turn, paves the way for better loan conditions in the future, illustrating the loans' role in fostering long-term financial growth and stability.

      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 state. 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 Community Financial Services Association of America. 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 100 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.

      Other Personal Loans

      FAQ

      What is the lowest credit score for a personal loan?

      The lowest credit score for a personal loan can vary depending on the lender and their specific requirements. Generally, lenders have a minimum credit score requirement that applicants must meet to be eligible for a personal loan.

      While some lenders may have a minimum credit score requirement as low as 580 or even lower, it's important to note that having a credit score at or near the minimum threshold may limit your options and result in higher interest rates. Lenders often consider other factors such as income, employment history, debt-to-income ratio, and credit score when evaluating loan applications.

      It's worth mentioning that having a higher credit score generally increases your chances of qualifying for a personal loan with more favorable terms and lower interest rates. If your credit score is below the minimum requirement of most lenders, you may need to explore alternative lending options or take steps to improve your credit before applying for a personal loan.

      Can I get a loan with a 600 credit score?

      Yes, getting a loan with a credit score of 600 is possible. A credit score of 600 falls within the fair credit range, which means you may still qualify for certain loan options. However, it's important to note that the specific loan terms, interest rates, and eligibility requirements may vary among lenders.

      With a credit score of 600, you may have access to personal loans designed for individuals with fair credit. These loans may have slightly higher interest rates than loans offered to borrowers with excellent credit. When evaluating your loan application, lenders may also consider other factors, such as your income, employment history, and debt-to-income ratio.

      To increase your chances of approval and secure more favorable loan terms, you can work on improving your credit score over time. Make timely payments, reduce outstanding debts, and maintain responsible credit behavior. These actions can help boost your creditworthiness and open up more loan options with better terms in the future.

      Can I get a $50,000 personal loan with bad credit?

      Obtaining a $50,000 personal loan with bad credit can be challenging, as lenders typically consider creditworthiness when approving loan applications. Bad credit indicates a higher risk for lenders, making it more difficult to secure a large loan amount. However, it's not impossible to find options. Some lenders specialize in providing loans to individuals with bad credit. Still, they may offer smaller loan amounts, higher interest rates, or require collateral or a co-signer to mitigate the risk. It's important to evaluate your financial situation carefully, consider alternative loan options, and explore ways to improve your credit before applying for a $50,000 personal loan.

      What credit score is needed to get the lowest interest rates on loans?

      To secure the lowest interest rates on loans, generally, a credit score in the range of 720 or higher is considered favorable. However, it's important to note that the specific credit score requirements can vary among lenders and loan types. Some lenders may offer competitive rates to borrowers with credit scores above 700, while others may require a score above 750 or even 800 for the best rates.

      Having a higher credit score demonstrates to lenders that you have a strong credit history, responsible financial behavior, and are less likely to default on loan payments. Lenders view borrowers with higher credit scores as lower risk, which often translates to more favorable loan terms, including lower interest rates.