Having fair credit, or a score of 640 to 699, doesn’t mean you have bad credit. It might mean you don’t qualify for some credit cards and loans with a certain interest rate, but there are personal loans designed specifically for you if you have fair credit without you having to resort to payday loans.
Remember that not all personal loans have the same terms, so it’s a good idea to compare prequalified rates with multiple lenders before making your decision. Here are some personal loan lenders that specialize in making sure those with less-than-stellar credit have personal loan options.
- Best for fair credit: LendingClub, Prosper, Marcus, LightStream
- Best for little or no credit history: Avant, Upgrade, Upstart
- Best for debt consolidation: FreedomPlus, Payoff
Best personal loans for fair credit
You can qualify for a loan with a credit score as low as 600. On top of that, you can borrow as much as $40,000.
Check out our LendingClub review for more information.
You can get a minimum loan amount as low as $2,000 as long as you have at least a 640 credit score. Bigger loans are available, too, going as high as $40,000.
Check out our Prosper review for more information.
Marcus by Goldman Sachs
If you’re on the higher end of fair credit, you might qualify for a loan from Marcus. Loans here require at least a 660 credit score.
Check out our Marcus review for more information.
If you have at least a 660 credit score, you could borrow as much as $100,000. Terms range from two to twelve years for home improvement loans and two to seven for all other purposes.
Check out our LightStream review for more information.
Best if you have little or no credit history
You can qualify for a loan from Avant with a credit score as low as 580. Loans go as high as $35,000. Loan terms are as long as 5 years.
Check out our Avant review for more information.
A minimum credit score of 620 qualifies you for a personal loan from Upgrade. Loan amounts go as high as $50,000.
Check out our Upgrade review for more information.
If you have at least a 620 credit score, you could get a loan through Upstart. You can get your money in as quickly as the next business day.
Check out our Upstart review for more information.
Best for debt consolidation
You can get a FreedomPlus loan with a credit score as low as 640. You can get money in your credit union or bank account within two days.
Check out our FreedomPlus review for more information.
You’ll need a 640 FICO score to qualify for a Payoff loan. You can borrow as low as $5,000. Payoff loans are specifically for credit card consolidation, which is a great way to target your specific debt.
Check out our Payoff review for more information.
Regardless of what you need a personal loan for (like debt consolidation), be sure to review each lender and what they offer before getting one.
See the Full List: Best Personal Loan Lenders in 2019
How to qualify for a loan with fair credit
Although lenders look at other factors when considering you for a personal loan, the biggest determining factor is your credit report and credit history. Always do what you can to improve your credit score, so you can ensure you get the best interest rate for your situation.
Here are a few things you can do to increase your chances of getting a personal loan:
- Make on-time monthly payments: Continue making on-time monthly payments. This is the most important thing you can do to prove your creditworthiness, since late loan payments can cause your score to go down significantly.
- Consider a cosigner: If you can’t qualify for a loan on your own, or you just want the option of having the lowest rate you can get, consider getting a cosigner.
- Compare prequalified rates with Credible: You can use Credible to compare prequalified personal loan rates with different lenders in just three minutes — without it impacting your credit.
The better your credit, the better your options for getting credit in the future. Having fair credit isn’t bad, but having good credit or excellent credit is better.