Best Personal Loans for Fair Credit of U.S - December 2023

Best Personal Loans for Fair Credit of December 2023

In December 2023, a comprehensive review of more than 40 lenders identified top options for individuals with fair credit scores. These lenders offer competitive rates, flexible terms, and various loan amounts to suit a range of financial needs. Explore the top choices to find the right personal loan for your circumstances.

Upgrade

Upgrade is recognized as one of the top choices for individuals with fair credit-seeking personal loans. Upgrade offers a comprehensive solution for borrowers, positioning itself as the best overall personal loan provider.

Their commitment to accessibility is evident in the relatively moderate minimum credit score requirement of 580. Upgrade stands out for its competitive APR range, making it a favorable option for those looking for financial flexibility and reasonable repayment terms.

Avant

Avant is a reputable company that caters to individuals with fair credit. Noteworthy for its diverse range of repayment options, Avant accommodates borrowers with different financial needs and preferences.

The minimum credit score requirement of 580 makes Avant accessible to a broad audience. Through Fiona.com's platform, Avant provides a user-friendly interface for potential borrowers to compare rates easily, ensuring transparency and informed decision-making.

LightStream

For borrowers seeking lower interest rates, LightStream stands out as a competitive option.  LightStream targets individuals with a minimum credit score of 660.

The company's emphasis on providing favorable APR ranges, ranging from 7.49% to 25.49%, positions it as an attractive choice for those looking to minimize the overall cost of borrowing. LightStream's commitment to offering favorable terms makes it a standout option in the landscape of personal loans for fair credit.

Rocket Loans

Rocket Loans caters to individuals with fair credit histories, particularly those with at least two years of credit experience. With a Forbes Advisor Rating of 3.5 stars, Rocket Loans extends its services to a broad range of borrowers, acknowledging the importance of a credit history.

The minimum credit score requirement of 580, coupled with a competitive APR range, makes Rocket Loans a compelling choice for those with a more established credit background. By providing accessible rates via Credible.com, Rocket Loans ensures transparency and ease of comparison for potential borrowers.

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Can You Get a Personal Loan if Your Credit Score is Fair?

Yes, it is possible to get a personal loan if your credit score is fair. A fair credit score, typically ranging from 580 to 669 according to FICO, may present some challenges, but lenders are still available to work with individuals in this credit category. While having fair credit might make the loan search a bit more challenging, lenders are willing to extend personal loans.

It's important to note that individuals with fair credit may encounter higher interest rates and fees compared to those with excellent credit. Additionally, the loan amount may be smaller, and the repayment terms might be shorter.

To enhance the likelihood of approval and secure more favorable terms, it's advisable to check your credit, assess your financial needs, and consider improving your credit score before applying for a personal loan. By following these steps and exploring different lenders, individuals with fair credit can find suitable loan options to address their financial needs.

Related >> Best Personal Loans for Bad Credit

What Does Fair Credit Mean?

Fair credit refers to a credit score falling within the range of 580 to 669 on the FICO credit score scale, which spans from 300 to 850. When someone has a fair credit score, it suggests that they present a moderate level of risk to lenders due to factors such as a history of late payments, high credit card balances, or multiple recent credit applications.

Individuals with fair credit may find it more challenging to qualify for various financial products like personal loans, credit cards, or mortgages and often work to improve their credit scores for better borrowing opportunities and more favorable terms.

Where to Get a Personal Loan With Fair Credit?

If you have fair credit and are looking to obtain a personal loan, there are several options available to you. Here's a summary of where you can get a personal loan with fair credit and what factors to consider when comparing lenders:

Online Lenders

Online lenders are a popular choice for individuals with fair credit. These lenders often work with a network of banks and credit unions, which allows them to provide loans to a wider range of borrowers. Some online lenders specifically advertise loans for people with fair credit. They typically offer the advantage of a quick and convenient application process. Some of the well-known online personal loan lenders to consider are LendingClub, Upgrade, and Avant.

Credit Unions

Certain credit unions, both online and local, may be willing to offer personal loans to individuals with fair credit. Some credit unions, like First Tech Federal Credit Union, cater to borrowers in the fair credit range. If you're already a member of a credit union, you may find it easier to qualify for a loan through them.

Traditional Banks

While traditional banks like Discover, TD Bank, and U.S. Bank might have stricter lending criteria, it's still worth checking their rates and terms. Pre-qualifying with these banks is typically free and won't impact your credit score, so you can explore your options without committing to a loan.

How to Apply for a Fair Credit Personal Loan?

Applying for a fair credit personal loan involves a series of steps to help you secure the funds you need. Here's a detailed guide on how to apply for a fair credit personal loan:

Determine Your Loan Needs

Before you start the application process, assess your financial situation and determine how much money you need and for what purpose. Have a clear understanding of the loan amount and the desired repayment period.

Research Lenders

Look for lenders that specialize in fair credit personal loans. Research and compare different lending institutions, including banks, credit unions, and online lenders. Check their interest rates, fees, and eligibility criteria.

Submit a Preliminary Application

Begin by filling out a preliminary application with the lender of your choice. This initial application will typically require basic information, such as your name, contact details, Social Security number, birth date, and income information. Some lenders may also ask for the purpose of the loan.

Review Pre-Qualification Offers

Depending on the lender, you may receive pre-qualification offers after submitting your preliminary application. These offers will provide you with an idea of the rates and terms you might qualify for without a hard credit check. Review these offers and decide if you want to proceed.

Agree to a Hard Credit Check

If you decide to move forward with a specific loan offer, the lender will conduct a hard credit check. Be aware that this can temporarily impact your credit score. Make sure you understand when and how the credit check will be performed.

Complete the Full Application

After accepting a pre-qualification offer, you'll need to complete a full application. This will include more detailed information about your financial situation and personal history. It may also require you to specify the loan amount, repayment term, and other loan details.

Accept the Loan Terms

Once the lender has assessed your full application and credit profile, they will provide you with the final loan terms. This includes interest rates, fees, and the repayment schedule. Carefully review and understand these terms before accepting them.

Provide Additional Documentation

Some lenders may request additional documentation to verify your income, identity, or other aspects of your application. Common documents include tax returns, pay stubs, and a driver's license. Providing these promptly can expedite the approval process.

Funding and Disbursement

After your application is approved and you've accepted the loan terms, the lender will disburse the funds according to your preferences. You can usually choose to have the money deposited into your bank account or sent directly to your creditors. Funding can occur as quickly as the same day or take a few days.

Loan Management

Once you receive the loan, set up an online account with the lender to manage your loan. This may include accessing a customer portal or mobile app, where you can monitor your balance, make monthly payments, and track your loan's progress.