Personal Loans for Fair Credit Borrowers (Credit Score 580-669)

Personal Loans for Fair Credit Borrowers (Credit Score 580-669)
Amy Fontinelle
on May 7, 2019
Read in 5 min

For people with fair credit—a score in the 600 to 700 range — they might know what it’s like to apply for a loan or credit card and get rejected. The unfortunate reality is that for people with fair or poor credit, it can be difficult to get personal loans from traditional sources like a big bank or credit union. This might leave people with fair or poor credit feeling discouraged about their ability to get the funds they need. However, in today’s lending environment, in many ways, it is easier than ever to find a loan, even with less than perfect credit.

But the good news is that it is possible to get a personal loan with a decent interest rate even if with fair or poor credit. The key is knowing where to look and what things are required. Because of the internet, there are now more options than ever when it comes to finding a personal loan. And many of these lenders make the process as fast and easy as possible, so virtually anyone can get the funds they need.

In this article, we’ll reveal some important things to know about these loans and where to start searching.

How can I get a personal loan with fair credit?

There are generally three main options when it comes to finding personal loans – banks, credit unions, or online lenders. So what is the best option? Well, it depends on a variety of factors, including credit, desired interest rate, whether you are looking for unsecured personal loans or secured personal loans, and how easy or fast you want the process to be.

Applying with a bank or credit union, for example, may take more time. But for a good easy option, it might be worth taking the search online. Not only does it take less time than going to a bank, but on the internet, people can also get access to more good lenders because many lenders these days operate mostly online.

If you decide that an online loan is a good option, LendGenius can connect you with a personal loan lender with our safe and easy form. Using LendGenius can be a good option for people who want to start the loan request process from the comfort of home, without having to wait in line at the bank or credit union. In some cases, you might get approved in as fast as 24 hours.

There are a number of lenders who operate online that can offer both secured personal loans and unsecured personal loans. And many of them offer small personal loans for fair credit or even bad credit.

For example, the lenders in the LendGenius network offer personal loans that can be used for a variety of emergency purposes, such as auto repairs, medical expenses, and other major life events. And many lenders can offer personal loans to people with fair or poor credit.

personal loan for fair credit

LendingClub is another option to find online loans. Like the lenders in the LendGenius network, LendingClub can help locate loans for credit card consolidation, home improvement, and other needs. You can read our complete review for Lending Club to learn more.

LendingTree is another service that can connect potential borrowers to lenders online. They allow you to compare various loan offers which can be helpful if you have some extra time to look at the various options.

And CashNet USA is an online lender that many people have used in the past. Although there are limits to the amount that may be allowed to borrow, they have 24-hour customer service, which is a useful resource.

Whether you decide to use LendGenius to help find a loan or turn to one of these other options, there are plenty of online lenders who may be willing to offer the funds that you need.

When is a personal loan a good idea?

A personal loan could be a good idea when you need to borrow a fixed sum and expect to have enough cash flow to repay it over the next 24 to 60 months.

A personal loan could be used to:

  • pay for dental work;
  • car repairs;
  • home repairs;
  • travel expenses;
  • taxes;
  • veterinary bills;
  • anything else that you need to pay for now but don’t have enough cash to cover.

If you want to buy something that isn’t essential, however, saving up ahead of time is a less expensive and more prudent option than borrowing.

The important thing is to consider all the options ahead of time and make sure that a loan is the best thing for your current situation. If you are confident that you’ll be able to meet the terms, including the interest rate and payment timeline, and if you need funds that you don’t already have access to, then a personal loan might be a good idea. And even with fair or poor credit, it’s possible to find a loan that can suit your needs.

Documents and requirements for a personal loan application

Many lenders are required by law or regulations to ask for certain personal information before they can give a personal loan to a potential borrower. Before requesting a loan, it’s wise to gather together the necessary information to make the process as fast and easy as possible.

A potential borrower will often need:

  • Some proof of income
  • To be at least 18 years old
  • Valid identification (including social security number and photo ID)
  • A checking or savings account
  • A phone number for verification
  • Residence in the state where you are applying for a loan

How to improve credit score

To improve the odds of getting approved for a loan, one place to start is by improving your overall credit score. There are a number of strategies that can help in this area. One is to take out a credit card. There are many credit cards that are available even for people with fair or poor credit. Making small monthly purchases and paying back the credit card bills on time is a great way to build and improve credit.

And if you do get approved for a loan, that’s another great way to improve credit. By making loan payments on time, it shows that you are a responsible borrower, which can raise your credit score and make it easier to get more loans in the future. The better your credit score, the more likely you are to get access to loans at a low-interest rate.

Different types of personal loans for low or fair credit

There are two main categories of personal loans, and they both are potential options for people with low or fair credit – unsecured personal loans and secured personal loans. So what is the difference? A secured personal loan requires collateral, something of value that can be exchanged when the loan is taken out. Two of the most common types of secured loans are home mortgages and car loans. If the borrower does not pay back the loan within a certain timeframe, the collateral may be claimed by the lender to recoup the cost.

But an unsecured personal loan requires no collateral. Common types of unsecured loans include credit cards and personal lines of credit. Depending on what type of loan you are looking for, either secured personal loans or unsecured personal loans might be the best option.

Bottom line, it’s important to do the research and think about whether or not a loan is the best choice. Make sure to read any loan terms carefully, to understand the payments, interest rate, and timeframe that are expected. And if you do decide to request a loan to help get some extra cash, now you know that there are many options available. Whether choosing to visit a bank in person or request a loan online, there’s a good chance of finding one that fits your situation.

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Disclaimer: This is not legal or financial advice. Please consult a legal or financial advisor for your specific situation.

Amy Fontinelle Finance Journalist

Amy Fontinelle is a writer, editor, and personal finance expert.

Her articles have appeared at Investopedia, Bankrate, MassMutual.com, The Simple Dollar, Interest.com, Yahoo, Forbes.com, SFGate.com, Bankaholic, Mortgage-Calc.com, Saving Advice and other sites.

Amy’s clients include personal finance websites, financial institutions, public policy organizations, academic journals, and professional economists.

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Persons facing serious financial difficulties should consider other alternatives or should seek out professional financial advice. This website is not an offer to lend. Lendgenius.com is not a lender or lending partner and does not make loan or credit decisions. Lendgenius.com connects interested persons with a lender or lending partner from its network of approved lenders and lending partners. Lendgenius.com does not control and is not responsible for the actions or inactions of any lender or lending partner, is not an agent, representative or broker of any lender or lending partner, and does not endorse any lender or lending partner. Lendgenius.com receives compensation from its lenders and lending partners, often based on a ping-tree model similar to Google AdWords where the highest available bidder is connected to the consumer. Regardless, Lendgenius.com’s service is always free to you. This service is not available in all states. If you request to connect with a lender or lending partner in a particular state where such loans are prohibited, or in a location where Lendgenius.com does not have an available lender or lending partner, you will not be connected to a lender or lending partner. You are urged to read and understand the terms of any loan offered by any lender or lending partner, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you. By submitting your information via this website, you are authorizing Lendgenius.com and/or lenders and lending partners in its network or other intermediaries to do a credit check, which may include verifying your social security number, driver license number or other identification, and a review of your creditworthiness. Credit checks are usually performed by one of the major credit bureaus such as Experian, Equifax and Trans Union, but also may include alternative credit bureaus such as Teletrack, DP Bureau or others. You also authorize Lendgenius.com to share your information and credit history with its network of approved lenders and lending partners. For qualified consumers, our lenders offer loans with an Annual Percentage Rate (APR) of 35.99% and below. For qualified consumers, the maximum APR (including the interest rates plus fees and other costs) is 35.99%. All loans are subject to the lender’s approval based on its own unique underwriting criteria. Example: Loan Amount: $4,300.00, Annual Percentage Rate: 35.99%. Number of Monthly Payments: 30. Monthly Payment Amount: $219.36. Total Amount Payable: $6,581.78 Loans include a minimum repayment plan of 12 months and a maximum repayment plan of 30 months. In some cases, you may be given the option of obtaining a loan from a tribal lender. Tribal lenders are subject to tribal and certain federal laws while being immune from state law including usury caps. If you are connected to a tribal lender, please understand that the tribal lender’s rates and fees may be higher than state-licensed lenders. Additionally, tribal lenders may require you to agree to resolve any disputes in a tribal jurisdiction. You are urged to read and understand the terms of any loan offered by any lender, whether tribal or state-licensed, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

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The lenders and lending partners you are connected to will provide documents that contain all fees and rate information pertaining to the loan being offered, including any potential fees for late-payments and the rules under which you may be allowed (if permitted by applicable law) to refinance, renew or rollover your loan. Loan fees and interest rates are determined solely by the lender or lending partner based on the lender’s or lending partner’s internal policies, underwriting criteria and applicable law. Lendgenius.com has no knowledge of or control over the loan terms offered by a lender and lending partner. You are urged to read and understand the terms of any loan offered by any lenders and lending partners and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

Late Payments Hurt Your Credit Score

Please be aware that missing a payment or making a late payment can negatively impact your credit score. To protect yourself and your credit history, make sure you only accept loan terms that you can afford to repay. If you cannot make a payment on time, you should contact your lenders and lending partners immediately and discuss how to handle late payments.