A personal loan can be a good choice for borrowers with fair credit. But be sure to shop around and choose a lender with flexible borrowing requirements. Check your credit score before applying, and use prequalification to compare offers without a hard inquiry on your report.
Upstart uses AI to aid its loan underwriting, which claims to lead to 43 percent higher approvals and lower rates for borrowers with thin credit profiles. It also offers multiple rate discounts and fast funding.
Upstart
Upstart is an online lender that offers a full suite of urgent loans for bad credit personal loans, including auto refinancing. They earn strong ratings on consumer sites and offer a quick and easy loan process. However, borrowers should review their terms and conditions carefully before applying. They also charge several fees and may not be the best choice for borrowers with bad credit.
In addition to its traditional underwriting criteria, Upstart’s AI lending platform considers factors like education and employment when assessing creditworthiness. This nontraditional approach makes it easier for borrowers with low scores or thin credit histories to qualify. You can check your rate in minutes without impacting your credit score, upload documents digitally, and receive funds within days of approval, compared to the weeks it can take at many traditional lenders.
Upstart’s flexible underwriting and diverse range of products make it an excellent option for borrowers with all types of financing needs. Its HELOCs provide competitive rates and are ideal for homeowners looking to tap into home equity for renovations, debt consolidation, or other purposes. HELOC rates vary by individual credit profile, and your final quote will be based on your unique situation. Its personal loans and auto refinancing are good choices for borrowers who want to consolidate debt or lower their car payments. It also has a solid reputation with customers for its customer service.
Discover
Discover is a strong personal loan option for borrowers with good credit who value customer service. It has a high borrower rating for LendingTree users and offers several repayment assistance options to help you manage your debt. It also has competitive minimum rates and no prepayment or late fees.
However, it’s important to note that it doesn’t accept all borrowers. Applicants must have at least a 720 FICO score to qualify for a personal loan. It’s also limited to a maximum loan amount of $40,000, which is lower than some other lenders. And it doesn’t allow borrowers to add a co-borrower to their application to boost their chances of approval.
To apply for a Discover personal loan, you must provide your name, address, employment information and a Social Security number (for a soft credit pull). You can also use the company’s personal loan calculator to see how much you might qualify for and what your monthly payments would be. In addition, you must agree to a hard credit inquiry if you decide to move forward with the application. Discover’s low maximum loan amount and 84-month term may not be best for some borrowers, but its competitive minimum rates, no origination fee and lack of prepayment or late fees make it a great choice for many. It isn’t, however, the best option for borrowers who want to consolidate debt with higher interest rates or pay off unsecured credit card debt.
Patelco
Patelco is a credit union that offers personal loans with reasonable terms and rates. They also offer free financial education to help you make the best decisions for your finances. They are dedicated to meeting their members where they are on their financial journey and treating them with respect. They offer a Skip-A-Pay service that allows members to defer their loan payments but still accrue interest during the month they are skipped.
Patelco also offers access to Banzai, a financial wellness tool that helps you reach your goals faster. Their Financial Advisors1 can create a personalized investment strategy that aligns with your long-term goals. They are available to meet with you face to face, online or over the phone. Their services are offered through LPL Financial, a registered investment adviser.
Personal loans are unsecured and typically paid back with interest over a set term. Unlike payday loans, which can have triple-digit interest rates and hidden fees, personal loans for fair credit can be an affordable option for borrowers with a score in the middle of the spectrum, or those who’ve had some financial issues in the past.
However, it’s important to know that your fair credit score can still impact the terms of a personal loan. In particular, it’s likely that you’ll pay a higher annual percentage rate (APR) than someone with a good or excellent credit score.
Additionally, some lenders may charge origination fees and prepayment penalties that increase the overall cost of a personal loan for fair credit borrowers. To avoid these additional charges, make sure to select the shortest possible repayment term that fits your budget and minimizes the amount of money you’ll have to repay upfront.
To help you find the best personal loans for fair credit, Investopedia has researched and ranked 59 businesses based on their APRs, fees, loan amounts and terms, customer service, and more. We also included lender relationship requirements, as some banks offer better terms for long-standing account holders.
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