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Before you apply for a personal loan, review your credit reports. This may help you spot errors or opportunities to improve your credit score, such as by paying down debt or becoming an authorized user on a family member’s card.
The lenders listed here offer personal loans to borrowers with fair credit, and they all allow prequalification without impacting your credit scores. Compare rates, terms and other features to find the best option for you.
Avant
Avant personal loans have a simple application process and offer borrowers a variety of loan terms. You can pre-qualify for a loan amount, annual percentage rate (APR) and repayment term on the Avant website with just a few basic pieces of information, such as your monthly housing or rental payment, income amount, Social Security number, and contact details. The pre-qualification uses a soft credit pull and won’t affect your credit score. If you decide to proceed with a full application, Avant will do a hard credit pull at that point and may require additional documents, such as pay stubs or bank statements.
Avant offers unsecured personal loans to borrowers with good to bad credit. Its rates are competitive with those of other personal lenders that cater to borrowers bad credit loans guaranteed approval with lower credit profiles, such as Achieve and Upgrade. However, Avant is light on perks that other lenders offer their borrowers, such as the ability to add a co-applicant or collateral and the option to consolidate debt with a secured loan.
You can expect Avant to fund your loan quickly once you are approved. The lender says it typically approves applications by 4:30 p.m. CT Monday through Friday and sends funds via ACH the following day. Depending on your bank’s policies, it can take one to three days for the funds to appear in your account after Avant sends them.
OneMain Financial
OneMain Financial is a personal loan lender that serves applicants with fair credit, and sometimes even those with bad or no credit. The lender has a simple online pre-qualification process that shows borrowers their potential loan amounts and whether they qualify for an unsecured or secured personal loan. Borrowers can also choose to secure their loans with a vehicle, which reduces the risk to the lender by placing a lien on the borrower’s automobile. However, borrowers should be aware that the lender charges a fee for this service.
Unlike many other lenders, OneMain Financial prioritizes a borrower’s ability to repay on a loan application and offers flexible repayment terms. It also has a mobile app that makes it easy to manage your OneMain loan account. The company also reports all loan activity to the three major credit bureaus, which can help borrowers improve their scores over time.
The company’s rates are relatively high, but it accepts borrowers with low credit scores. Its maximum loan amount is $10,000 and the lender will require that borrowers provide documentation of their income and other personal information. Applicants can also visit a branch in person to apply, and the lender has branches in all states where it offers personal loans. Customers can also use an online tool to calculate their monthly payments before applying for a loan.
Wells Fargo
Wells Fargo is a national brick-and-mortar bank that offers a full range of banking services. You can open checking and savings accounts, as well as credit cards and mortgage loans. The bank also has a robo-advisor platform and investment options. It has an extensive branch and ATM network, and you can access your account online or in person.
Wells Fargo has a lot to offer customers, including high-interest savings accounts and competitive credit card rates. However, it has a bad reputation for customer service. In fact, it ranked dead last in the 2023 J.D. Power U.S. National Banking Satisfaction Study. Moreover, the bank charges a monthly fee for some of its accounts. Fortunately, it will waive the fee for new and existing customers who meet certain requirements.
The bank has a highly-rated mobile app, which is available for iPhone and Android devices. The app has 4.8 out of 5 stars on the Apple App Store and Google Play. You can use the app to manage your money, check your FICO score, and deposit checks. The app also provides helpful budgeting tools and debt-to-income reports.
In 2016, Wells Fargo was fined by the Consumer Financial Protection Bureau for opening unauthorized accounts without the consent of its customers. Consequently, the bank is working with affected customers to provide remediation, including compensation, refunds, and correction of credit bureau information.
Bank of America
One of the largest banks in the country, Bank of America offers a variety of financial products including checking and savings accounts, credit cards and loans. It also has thousands of branches and ATMs across the country. Its online banking service is a top-rated option with many features, including bill pay and automated savings. Its mobile app also includes Erica, a virtual financial assistant that can help you manage your accounts and schedule payments.
Bank of America is a good choice for consumers who want access to a local branch, a large network of ATMs and a highly-rated app. However, its basic bank accounts offer dispiritingly low rates of return compared to other institutions. It doesn’t offer money market accounts, so if you’re looking for these types of investments, you should consider other options.
Before applying for a personal loan, make sure your credit score is at least fair. This will allow you to qualify for better interest rates and terms. Other ways to improve your credit include repaying past debt and reducing your credit utilization. You can also find lenders that accept a minimum credit score of 580 or higher. By taking these steps, you’ll increase your chances of qualifying for a personal loan.