If you have fair credit (typically a FICO score between 580 and 669), securing a personal loan can be challenging but not impossible. Many lenders specialize in offering fair credit personal loans with competitive rates and flexible terms. Whether you need funds for debt consolidation, home improvements, or unexpected expenses, this guide highlights the best lenders for fair credit personal loans to help you find the right option for approval.
What Is a Fair Credit Personal Loan?
A fair credit personal loan is an unsecured loan available to borrowers with credit scores in the fair range (580-669). While interest rates may be higher than those for excellent credit borrowers, these loans provide an opportunity to access funds without collateral. Lenders evaluate other factors like income, employment history, and debt-to-income ratio to determine eligibility.
Key Features of Fair Credit Personal Loans
- Loan amounts: Typically range from $1,000 to $50,000.
- APRs: Vary from 6% to 36%, depending on creditworthiness.
- Repayment terms: Usually 2 to 7 years.
- Funding speed: Some lenders offer same-day or next-day funding.
Top Lenders for Fair Credit Personal Loans
Here are some of the best lenders that offer personal loans to borrowers with fair credit:
1. Upstart
Upstart is a popular choice for borrowers with fair credit because it uses artificial intelligence to assess creditworthiness beyond just credit scores. This means you may qualify even with a limited credit history.
- Minimum credit score: 580
- Loan amounts: $1,000 – $50,000
- APR range: 6.40% – 35.99%
- Funding time: As fast as one business day
2. Avant
Avant specializes in fair credit borrowers, offering loans with manageable repayment terms and no prepayment penalties.
- Minimum credit score: 580
- Loan amounts: $2,000 – $35,000
- APR range: 9.95% – 35.99%
- Funding time: Next business day
3. LendingPoint
LendingPoint focuses on borrowers with fair to good credit, providing quick approvals and flexible loan options.
- Minimum credit score: 600
- Loan amounts: $2,000 – $36,500
- APR range: 7.99% – 35.99%
- Funding time: As fast as one business day
4. OneMain Financial
OneMain Financial offers secured and unsecured personal loans, making it a viable option for fair credit borrowers who may need collateral to secure better terms.
- Minimum credit score: Not specified (fair credit accepted)
- Loan amounts: $1,500 – $20,000
- APR range: 18.00% – 35.99%
- Funding time: Same day or next business day
How to Improve Your Chances of Approval
While these lenders cater to fair credit borrowers, improving your financial profile can increase approval odds and secure better rates.
1. Check Your Credit Report
Review your credit report for errors and dispute any inaccuracies that may be dragging your score down.
2. Lower Your Debt-to-Income Ratio (DTI)
Lenders prefer borrowers with a DTI below 36%. Pay down existing debt to improve your ratio.
3. Apply With a Co-Signer
Adding a co-signer with good credit can help you qualify for lower interest rates.
4. Compare Multiple Lenders
Pre-qualify with several lenders to compare offers without impacting your credit score.
Conclusion
Securing a personal loan with fair credit is possible with the right lender. Upstart, Avant, LendingPoint, and OneMain Financial are among the best options for borrowers with credit scores between 580 and 669. By improving your credit profile and comparing offers, you can find a loan that fits your needs and budget. Always read the fine print and ensure the monthly payments align with your financial situation before committing.