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A personal loan is a type of credit that can be used for almost any purpose. To find the best banks for personal loans with fair credit, WalletHub analyzed fees, repayment terms and minimum credit score requirements.
While lenders set their own rules regarding minimum credit scores, we found that those who have a fair credit score can still get approved for an unsecured personal loan with a decent interest rate.
1. Bank of America
Bank of America offers unsecured personal loans up to $100,000 with a credit score requirement of 660 or higher. Borrowers can get $1000 loan approved and funded as soon as the same day they apply, with a payoff period of 12 – 84 months. Its interest rates are slightly lower than those of other banks on our list, and its fees are fairly low.
Its online banking experience is relatively easy to navigate, and its mobile app has a high rating on both the Google Play and Apple app stores from over 1 million users each. It also includes a digital assistant called Erica that can help track spending and send bill payment reminders.
The minimum credit score required to open an account varies by location and is usually between 680 and 740. It may be possible to qualify for a personal loan with a fair credit score as long as you can demonstrate good income and debt-to-income ratios. However, it is important to shop around and compare all of your options before applying for a personal loan.
2. Chase
With a massive branch network and a wide range of banking products, Chase is considered the country’s signature bank. It offers personal loans and credit cards in all states, along with checking accounts, savings accounts and certificates of deposit. Its highly rated mobile app allows customers to send money, pay bills and set up a budget.
There is no minimum credit score for personal loans, but the higher your score, the better your approval odds and the lower your interest rates will be. FICO considers a fair credit score to be 580 to 669.
The best banks for personal loans with fair credit offer low APRs, 0% origination fees and long payoff periods. They also provide flexible loan amounts and quick application processes. Before you apply, check your credit score for free and try to limit the number of hard inquiries on your report, which can temporarily hurt your score. You can also prequalify for a personal loan without impacting your credit score. If you are able to raise your credit score, a personal loan can be helpful for big purchases or debt consolidation.
3. Bank of New York Mellon
There’s no set minimum credit score for personal loans, but your creditworthiness affects your approval odds and loan terms. Personal loans for fair credit have higher APRs than those for good or excellent scores, and they may come with additional fees like origination or late charges.
You’ll likely have better approval chances with a bank that specializes in personal loans, such as USAA or Wells Fargo. However, you can also find personal loans at credit unions and online lenders. Credit unions and online lenders often offer better rates than banks on personal loans, but their availability varies by state and region.
To identify the best banks for personal loans with fair credit, WalletHub compared offers from national and regional lenders. We considered factors including APRs, fees, loan sizes and payoff periods. Our top picks include Discover, Citibank and Wells Fargo. Discover offers competitive terms that include low APRs, 0% origination fees and large loan amounts. You can use WalletHub’s free personal loan pre-qualification tool to see your loan options without hurting your credit score.
4. Wells Fargo
Wells Fargo is one of the largest banks in the country and a name that’s synonymous with personal banking. The bank offers a variety of loan products, including personal loans, mortgages and credit cards. It also has a good reputation for customer service. However, it’s important to remember that the company was recently embroiled in a scandal related to employees’ incentive-based sales goals and cross-selling of products like checking and credit card accounts, which resulted in unauthorized fees and accounts.
For those seeking a personal loan with fair credit, it’s worth considering applying with Wells Fargo. The company reports that the average person’s credit score is around 660, which is above the minimum requirement for most lenders.
Some lenders, such as Avant and LendingPoint, offer personal loans to borrowers with credit scores below 580. These loans tend to have higher interest rates than those offered to borrowers with better credit. However, they can be helpful to borrowers who need to make large purchases or consolidate debt. These companies also typically have a shorter application process and funding timeline than traditional banks.
5. Capital One
A personal loan can be a good option for paying for a large purchase or consolidating debt. It’s important to shop around and compare offers to find the best deal on your interest rate. You should also consider other factors, such as the amount of the loan and the length of the repayment term.
While there isn’t a minimum credit score required to qualify for a personal loan, your creditworthiness will factor into your approval odds. You can improve your chances by lowering your debt-to-income ratio and making timely payments. Additionally, you can use a free credit-score monitoring service to see how your scores are trending and check your eligibility for different loans.
If you have fair credit, it may be difficult to get approved for a personal loan with a bank. However, online lenders and credit unions can often provide better approval odds than banks, and they offer a variety of loan options for all credit levels. You can also check your eligibility for loans with WalletHub’s free pre-qualification tool, which doesn’t impact your credit.