Best Personal Loans for Fair Credit Scores (650-700)
When you need a personal loan, you need money quickly so you can pay a bill or deal with a financial emergency. You can still get a personal loan even if your credit score isn't great but isn't bad, either. You just have to be willing to pay a bit more interest on the loan.
We looked at the deals offered by 48 different US lenders to find the best ones for people with fair credit. To get a loan with 650 credit score follow the link.
You can get a personal loan from any lender, but Upstart, Lending Club, and Prosper are the best choices for people with fair credit. Even though we can't know exactly what you need, these three lenders all offer loans that can be used in many different ways.
The best personal loans for people with fair credit
Upstart
Upgrade
Prosper
Payoff
LendingClub.com
Upstart
Upstart is a new kind of online lender that gives personal loans based on more than just your credit score. Upstart does look at your credit score when deciding whether or not to lend you money, but it also looks at your education, job history, and field of study. By taking these things into account, Upstart can figure out how risky it is to lend money. This means that at Upstart, you can get a lower interest rate. To learn more about getting a loan with 650 credit score follow the link.
Upstart gives loans for 3 or 5 years, with amounts from $1,000 to $50,000.
Pros and cons of personal loans from Upstart
Pros Cons
No prepayment penalty
Looks at your education, field of study, and work history to decide if you can get a loan.
Easy and quick to fill out an application
There are no loans with terms longer than 5 years.
There is an origination fee.
Chance of getting a high interest rate
Prosper
Terms
24-to-sixty months
Est. APR
6.99 - 35.99%
Look at your rate
More Details
Prosper is another online lender that helps people who qualify get quick loans.
To get a Prosper loan, your credit score needs to be at least 640. You also need a debt-to-income ratio of less than 50%, a way to make money, and you can't have gone bankrupt in the last year. You must also have had at least three open loan accounts and less than seven credit checks in the last six months.
Prosper offers low fees on loans from $2,000 to $35,000 if you meet the requirements.
Prosper Personal Loans Pros & Cons
Pros Cons
Part of the interest paid goes to investors.
No prepayment penalty
You can find out your rate in minutes, and it won't hurt your credit score.
The money can be sent out in as little as one day.
For the lowest rates, you need good credit and a high income.
There is an origination fee.
LendingClub.com
Terms
36 to 60 months
Est. APR
6.34 - 35.89%
Look at your rate
More Details
Lending Club is a way for people to lend money to each other. That means that when you ask Lending Club for a loan, you don't get the money from Lending Club. People who want to invest in personal loans will instead offer to pay for your loan. If you need $10,000, you might have to borrow $100 from 100 different people. Lending Club is just a place where people can find loans and get help with making payments.
Lending Club offers loans with terms of 3 or 5 years and amounts up to $40,000.
Pros and cons of personal loans from Lending Club
Pros Cons
No prepayment penalties
There are regular people who are investing in your loan.
A high APR is possible.
There is a one-time origination fee.
How We Picked
In this article, we list three of the best places to get a personal loan if you have fair credit.
We chose our options by looking for lenders who work with people who have fair credit. They know who they want to lend to, so they can make their loans work for people with fair credit. Then, we looked at everything each lender had to offer, including their interest rates, fees, loan limits, and any extra features.
Even though there is no perfect way to choose a personal loan, these lenders have loans that will work for most people. If these loans don't work for you because of how your money is set up, there are other great options out there.
The goal of this article is to help you start your search for a loan. It tells you how to find a good loan and gives you a few lenders to look at. There is a chance that these lenders won't accept your application or even applications from people in your area. Don't be afraid to look at other lenders if you think that's what's best for you.
We have more information below about credit scores and how to improve your chances of getting a loan if you want to learn more.
How do you get a credit score?
A credit score is a number that shows how likely someone is to pay back money they borrow. If a person has a good score, it's likely that they will pay back any money they borrow. If their score is low, they are less likely to pay back what they owe.
Most people mean their FICO score when they talk about their credit score. Fair Isaac Corporation came up with FICO scores in 1989. The FICO scores of consumers are now kept track of by the three main credit bureaus, Equifax, TransUnion, and Experian.
How do they figure out your credit score?
Your credit score is based on five different parts of your financial life.
History of payments
Your payment history is a part of your credit report that shows how well you pay your bills on time. Your score goes up every time you make a payment on time. Every payment you're late on lowers your score. When you pay late, your score goes down even more.
This is the thing that affects your credit score the most. The best way to improve your credit score is to make payments on time for many years.
Payments due
There are two parts to your debt load.
The first thing is just how much debt you have. The more money you owe to lenders, the harder it will be to make monthly payments. It will be easier if you have less debt. Try to owe as little as possible to creditors to improve your credit.
The second part is how much of your total credit limit you're actually using. Put all your credit card balances and credit card limits together. To find your credit utilization ratio, divide the amount you owe by the amount you can borrow. The better, the lower this number is.
How long a person has had credit
The better your score, the longer you've been on file with the credit bureaus. A long file shows that you've dealt with debt before. It also makes it easier for lenders to get a good idea of how you handle your money.
Your score also takes into account how old your average credit account is. Your credit score will go down if you open and close a lot of credit cards. Lenders like to see on your report that you have been borrowing money for a long time.
Ways to get credit
The more kinds of loans you've taken out, the better your credit score will be. One thing is to have a credit card and use it well. Lenders want to know if you can handle different kinds of debt, like mortgages and car loans.
The more kinds of loans you've had, the better your credit score will be.
New credit checks
When you ask for any kind of loan, the lender will ask a credit bureau for a copy of your credit report.
When a lender asks for your report, the credit bureau makes a note of it. The credit bureau will keep that "hard pull" on your credit report for two years. With each hard pull, you lose a few points. If you apply for a lot of loans in a short amount of time, it can hurt your score.
Lenders worry when you ask for a lot of loans at once. Why do you want so many loans if you don't need money badly? Lenders want to be sure you'll pay them back, and if you borrow too much at once, you might have trouble paying your bills.
To get a loan with 650 credit score go to https://www.debt.org/credit/improving-your-score/
