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Why You Should Go for These Best Loans for Fair Credit

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FICO defines “fair credit” as having a credit score between 580 and 669. So, this list of lenders is good for people with good credit, even though many personal loans require credit scores above this level.

Even though you’ll be able to get a loan with a score under 670, you shouldn’t anticipate the best terms. The best credit scores often get the most significant loan limits and lowest interest rates. 

Lenders are willing to offer you financing even if your credit score is between 580 and 669. The best loans for fair credit are listed below for you.

Loans for People with Bad Credit

Lendersminimum credit scoreAPR rangeLoan amounts
Upgrade5807.46% to 35.97%$1,000 to $35,000
Avant5809.95% to 35.99%$2,000 to $35,000
LightStream6605.99% to 21.49%$5,000 to $100,000
MarcusN/A6.74% to 19.74%$3,500 to $40,000
Rocket Loans5808.416% to 29.99%$2,000 to $45,000
  1. Upgrade
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Upgrade has online and mobile banking services available in all but three states: Iowa, Vermont, and West Virginia.

Over 10 million applicants have already been approved for credit through the platform, making more than $3 billion in credit available to them. It also continues to grow its web and mobile offerings.

Loan amounts are adjustable and start at just $1,000. Still, they are capped at $35,000, which is less than lenders who concentrate on clients with better credit ratings. In addition, there are loan lengths of three and five years available. This is one of the best loans for people with fair credit.

There are no reductions for auto-pay, and Upgrade charges an origination cost that ranges from 2.9% to 8% of the loan. Additionally, borrowers will be charged a $10 fee if their payment is more than 15 days late or fails to process.

  1. Avant

To use the platform, you need a credit score of at least 580, and it focuses on customers from the middle class who have fair to good credit.

The low minimum loan amount and flexible payback terms (two to five years) make it an accessible alternative for borrowers despite the low maximum loan amounts compared to other lenders. Avant personal loans do, however, have a cost, as do many subprime loans.

There is no autopay discount and an administrative fee of up to 4.75% of the loan amount. However, the platform excels for borrowers with subpar credit requiring immediate fund access.

  1. LightStream

A division of Trust, which was created as a result of the union of SunTrust Bank and BB&T, is called LightStream. The lending platform provides unsecured personal loans ranging in size from $5,000 to $100,000. It falls under the category of best loans for fair credit.

Although many lenders offer loans smaller than the LightStream minimum, few make loans more significant than the maximum.

It’s an excellent choice for people who wish to spread out the payment of substantial expenses over time because repayment terms range from two to seven years.

  1. Marcus

Personal loans between $3,500 and $40,000 are offered by Marcus by Goldman Sachs, a division of the financial bank Goldman Sachs.

Marcus still offers flexible nationwide loans with terms ranging from three to six years, even though there might be better options for people who need a high loan amount.

  1. Rocket Loans

Rocket Loans might be a good choice if you need money quickly and have a fair credit score (580 or higher). Cheaper loan options might be available, depending on your creditworthiness, but the platform levies origination fees of 1% to 6% of the loan amount and APRs that range from 7.161% to 29.99%.

How to Compare Loans for People with Bad Credit

When comparing personal loans for fair credit, keep the following in mind: 

  1. Compare the maximum interest rates: With fair credit, you’re likely to receive an interest rate at the high end of the range because your qualifying credit score heavily influences interest rates. So it is essential to evaluate the maximum speed when comparing personal loans for people with bad credit.
  1. If possible, prequalify with a provider. You can prequalify for a personal loan with several lenders. This means that you can tell them about your income, why you want the loan, the condition of your home, and other things to find out about possible loan limits, interest rates, and ways to pay back the loan.
  1. Check for additional fees: Some personal loan lenders do not charge origination fees, late payment penalties, or prepayment penalties.Some, though, might tack on all or some of these fees.

What is fair credit?

Before learning about the best loans for bad credit, you should first understand what bad credit is.A score between 669 and 580 is regarded as fair credit according to the 300–850 FICO credit score range.

In addition to other credit accounts like credit cards or mortgages, borrowers with fair credit are more likely to be riskier. They may have a more challenging time being approved for personal loans.

To maximize your chances of getting a loan with better terms, you should raise your credit score before applying. Poor payment history, extensive credit use, excessive credit applications, or hard credit inquiries are the usual causes of fair credit ratings. If you want to increase your credit score, you must focus on these features of your credit profile.

Frequently Asked Questions

1. Can someone with a credit score of 600 obtain a personal loan?

Ans. While borrowers with credit scores typically above 670 are given the best deals, many lenders accept credit scores as low as 600. Fortunately, you can still get financing if your credit score is 600. However, you might only be eligible for a smaller loan amount or interest rates almost as high as the lender’s maximum rate.

2. How can I get a personal loan with fair credit?

Ans. Borrowers with fair credit—scores between 580 and 669—can apply for personal loans. Through a prequalification process, some lenders let you send in your information before you apply to see what terms you can get.

3. What is the minimum credit score for a personal loan?

Ans. Credit ratings as low as 580 are accepted for some personal loans, including loans for people with terrible credit. However, you won’t qualify for low interest rates or large loan amounts with a score at this level.

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