Content articles
Personal loans for fair credit can help you finance emergency expenses, pay off high-interest rate debt or make home improvements. A personal loan can also improve your credit score if you make on-time payments.
You can use WalletHub’s personal loan comparison tool to find lenders that offer competitive rates for people with fair credit. These lenders typically have low minimum credit scores and minimal fees.
Discover
Finding the best personal loan with fair credit is a matter of understanding your financial needs and researching reputable lenders. Unlike HELOCs, which use your home’s equity as collateral, personal loans are unsecured and have lower interest rates. However, you should be aware of the lender’s terms and conditions. For example, Discover charges a $39 late fee if you fail to make your loan payment by the due date.
To apply for a personal loan with Discover, you must complete an online application and submit documents such as pay stubs, bank statements, tax records, and credit card balances. Applicants with excellent credit may qualify for a low APR, while those with poor credit will likely see higher rates.
Among lenders that offer personal loans to people with best personal loans for fair credit fair credit, Discover offers competitive rates and no origination fees. The company also offers a 15-day period during which borrowers can preview and accept loan offers without impacting their credit scores. This feature makes Discover an ideal choice for borrowers who want to pay off their debts.
SoFi
The lender offers a variety of personal loan amounts and terms. It also allows borrowers to pay optional origination fees to alter their APR and customize monthly payments to their needs. It also offers a 0.25 percent rate discount for borrowers who enroll in autopay. In addition to these features, SoFi’s loans are available to anyone with fair credit, as long as they meet minimum income and employment requirements.
The process of applying for a SoFi personal loan is simple. Borrowers can prequalify online or through the company’s iOS and Android mobile apps. The prequalification process involves a soft credit pull, and the results won’t affect your credit score. If you like the rates and terms, you can choose to complete the full application.
SoFi’s personal loan is one of the best options for borrowers with fair credit. Its low starting APR and flexible loan terms make it an ideal choice for debt consolidation, home improvements, or major purchases. It also offers a generous loan amount cap and co-borrower option. Plus, it’s a top-rated lender on review sites.
HELOC
A HELOC is a great option for those with fair credit who are looking to pay for large home improvement projects, consolidate debt or cover emergency expenses. To qualify for a HELOC, you will need to have enough available equity in your home and meet other requirements like a low debt-to-income ratio and a good combined loan-to-value ratio.
Personal loans are unsecured installment loans that offer flexible loan terms and repayment options. Many lenders have flexible eligibility requirements and offer competitive interest rates for borrowers with fair credit. To find the best personal loan, compare a variety of lenders and choose one that offers the best terms for your unique financial situation.
For example, Upgrade is an online lender that offers personal loans for fair credit with fixed interest rates and a simple application process. It also provides a range of discounts to help borrowers save money on their loans. Alternatively, you can try a secured loan, which requires that you put down collateral such as a car to reduce your risk to the lender.
Local banks
If you have fair credit, there are many lenders that offer personal loans. You can find a lender that fits your needs by comparing rates and terms. Some lenders require a cosigner or a higher credit score, but others are more flexible and may accept borrowers with a lower credit score or nontraditional credit history. You can also find lenders that offer unsecured personal loans, which do not require collateral.
In addition to evaluating your credit, you should also evaluate your budget and determine how much debt you can afford to take on. You should also pay down existing debts to improve your credit score before applying for a personal loan.
To help you find a personal loan with fair credit, WalletHub has compiled a list of the best lenders. These lenders offer competitive rates, transparent terms, and an easy application process. Some of these lenders are traditional banks, while others are online-only. Credit unions also offer personal loans and usually have lower rates than other lenders. However, they require that you be a member to qualify.
Secured personal loans
A secured personal loan can help borrowers with fair credit qualify for financing. These loans require a security deposit, such as a savings or certificate of deposit account, that lenders can access if you default on your repayment obligations. While this type of loan offers more competitive rates than unsecured personal loans, it’s best to only use it for debt consolidation, home improvement projects or other expenses that you can afford to repay within the term.
Personal loans for fair credit are available from online lenders, credit unions and local banks. However, you may have a hard time qualifying for a personal loan from a national bank if your credit score is below 650. A strong relationship with a credit union, on the other hand, may improve your chances of approval.
Before applying, compare lenders’ requirements and fees to find the right fit for your budget. Be sure to check whether the lender reports your payments to the credit bureaus and to make regular payments on time. Avoid overextending yourself by using a calculator to calculate your potential monthly payment and choosing a repayment term that will keep payments manageable.