Personal loans are commonly unsecured. This suggests that your approval and interest rate will be based on your income and credit profile. Furthermore, if your credit score falls into the fair range (which is often between 580 and 669 on the FICO scale), you can still be approved for a personal loan.
However, the rate will probably be higher. This article identifies the best personal loan lenders that accept consumers with fair credit after analyzing various financial institutions. Even though there may be higher rates if your credit score is higher, we looked for lenders with flexible qualification standards and longer payback terms.
Best Personal Loan for Fair Credit
The best personal loan for people with fair credit provides low interest rates, flexible loan terms, and credit-building tools such as free credit score monitoring. In addition, timely payments are critical for fair-credit personal loans because they greatly improve your credit score. Moreover, an excellent credit score between 630 and 680 may make it harder to get approved for a personal loan, but it is still feasible. For a fair credit score, these are the best personal loans.
Happy Money
Happy Money personal loans are available to qualified customers for a minimum of $5,000 and a maximum of $40,000. The loans can only be used for debt consolidation. The lender’s website allows online application for a Happy Money loan in as little as two minutes. Additionally, it offers loan amounts ranging from $5,000 to $40,000 with loan terms ranging from 24 to 60 months.
Furthermore, Happy Money is an excellent starting point for individuals with bad credit who are primarily focused on debt consolidation. This is because the lender requires a minimum credit score of 550 to qualify for a personal loan.
Upgrade
Upgraded personal loans provide direct payment to creditors together with several rate reductions. The benefits are enhanced by a low required minimum credit score making it the second personal loan for fair credit. The lender requires a minimum credit score of 560, one account, a 75% debt-to-income ratio, a two-year credit history, and no income requirement, accepting income from various sources. The loan offers terms ranging from 3 to 7 years, with an origination fee of 1.85% to 9.99%. Furthermore, it offers a late fee of $10 and a failed payment fee of $10.
Avant
Avant personal loans provide a range of repayment options with variable payback terms ranging from two to five years. This lender focuses on middle-class consumers with acceptable to good credit and provides both secured and unsecured loans. To qualify, all you need to do is get at least 580.
Additionally, the lender offers a flexible repayment plan with a minimum amount of two to five years, making it an attractive option for borrowers. Avant personal loans, like many subprime loans, come with a cost.
PenFed Credit Union
If you need a personal loan with any credit score, PenFed is the credit union we recommend. Credit union loans with fair credit may be easier to approve than for-profit loans due to their lower rates. Furthermore, PenFed will create an account for you instantly if you are accepted for a personal loan.
If your credit is fair, you might want to consider a personal loan from PenFed. Moreover, loan approval requires a minimum score of 580, allowing you to qualify for lower rates than at a bank.
Prosper
Prosper is a peer-to-peer (P2P) lender with headquarters in San Francisco that matches borrowers with loans between $2,000 and $50,000. The lender is unique in that it offers speedy funding times despite having origination fees that range from 1% to 7.99%. Your money will be available as soon as one business day following verification.
Moreover, the lender is an excellent choice for borrowers seeking quick acceptance and access to personal loan funds. The lender offers interest rates ranging from 8.99% to 35.99%, with repayment terms ranging from 2 to 5 years. Furthermore, it includes origination, check, late and insufficient funds fees, with a minimum credit score of 600.
Upstart
Upstart is a suitable option for candidates meeting the requirements due to its low accessible APRs among Credible partner lenders and non-partners. The lender’s website application process is one of the few lenders that does not require a minimum credit score requirement. Therefore, it’s still a possibility if you have poor credit or no credit history.
Also, while Upstart may impose one as high as 12%, borrowers with excellent credit may not be assessed an origination fee at all. Its loan amount ranges from $1,000 to $50,000, with an origination fee and no discounts. Furthermore, it requires a minimum income of $12,000, offers quick fund approval, and requires a minimum credit score of 620.
Achieve
Achieve Personal Loans are provided by Pathward, N.A., Equal Housing Lenders, or Cross River Bank, a New Jersey State Chartered Commercial Bank. The borrower has an average credit score of 700, the minimum credit score is 620, and the maximum debt-to-income ratio is 45%, excluding the mortgage. To be authorized, the loan applications also need to meet underwriting requirements and pass a credit evaluation.
Furthermore, loan availability varies by state and there are fees associated with obtaining a loan. There is a $5,000 to $50,000 range for loans. Origination expenses are included in the APR ranges, which are 1.99% to 6.99% and 8.99% to 35.99%, respectively, with payback durations varying from 24 to 60 months.
LightStream
LightStream offers unsecured personal loans ranging from $5,000 to $100,000 with low interest rates. Few lenders offer a larger maximum loan, even if many offer loans that are smaller than the LightStream minimum. With repayment lengths ranging from two to seven years, it’s a great choice for anyone who wishes to stretch out the cost of big purchases over time.
LightStream not only provides flexible and attractive terms, but it also waives origination, late payment, and prepayment fees. In addition, the lender provides borrowers who sign up for autopay with a 0.50% rate reduction. Furthermore, it offers a minimum credit score of 660.
SoFi
Social Finance, or SoFi for short, provides two- to seven-year-term personal loans up to $100,000. The California-based lender was established in 2011 and provides same-day funding for personal loans without origination fees or prepayment penalties. Apart from personal loans, SoFi provides house loans, auto and student loan refinancing, insurance, and banking services. Furthermore, it offers a minimum credit score of 680.
Discover
As one of its credit-improving offerings, Discover offers free FICO score monitoring. This is the greatest option for people with less-than-perfect credit who need a little assistance. However, you will like Discover’s ability to pay your lenders directly if you’re using the loan for debt consolidation.
Among the few lenders on our list that do this is Discover. Discover offers a minimum credit score of 660 and you need to make at least $25,000 in household income to be eligible for a loan from this lender. Furthermore, Discover claims that credit history, application data, and loan duration are taken into consideration when calculating eligibility and rates.
Final Thought
Due to increased interest rates, fees, and difficulties making on-time payments, getting a personal loan with good credit might be tough. Furthermore, collateral can be needed, which could result in collateral loss. to pay off debt, raise credit, and maintain timely payments for some years before requesting a loan.