Personal Loans for Fair Credit

Compare monthly payment options from several lenders in under 2 minutes.
How much would you like to finance?
won't affect credit score

Check offers in seconds

Get pre-qualified for loan offers with an easy online form

Won't impact your credit

Checking offers will not impact your credit score*

Competitive payment options

Funding up to $100,000 and APRs as low as 3.99%*

Receive funds quickly

Same-day and next-day available for certain offers*

Acorn Finance Icon

Fair Credit Loans

Quick. Simple. Secure.

How To Apply For Personal Loans for Fair Credit

1 Pre-qualify

Fill out easy online form to check for pre-qualified offers with no impact to your credit score

2 Select offer

Compare terms and payment options to select offer that’s best for you

3 Finish application

Complete application process on your selected lender’s website*

4 Receive funding

After loan approval, your funds should arrive within 1-2 business days*

“The process couldn’t have been any easier. I filled out a short form that took me less than 2 minutes and within seconds I got multiple offers from lenders.”

 

- Mike T. (TN)

“It was important to me that I could review my offers without any impact to my credit score, before deciding on the best loan option.”

 

- Carol R (FL)

“I like the easy online and 100% paperless experience of Acorn Finance. I received my money two days after completing my application.”

 

- Bob S (WI)

Are you a contractor?
Generate more revenue with Acorn Finance.

Offer customers the ability to finance their dreams with zero dealer fees.

FREQUENTLY ASKED QUESTIONS

Learn More About Personal Loans for Fair Credit

Finding a personal loan with fair credit can be challenging. You may be limited on what lenders you can work with and you will likely be facing high interest rates. The rules and terms of the loan agreement may also be stricter than for people who have good to excellent credit scores. This guide will help you know the options available to you and give you some insight on what to expect when looking for a personal loan with fair credit.

Read more - FAQ

What is the best personal loan for fair credit?

There are several loan companies that offer personal loans for fair credit. The APRs may range from 6.99%-24.99%, depending on credit score.

Personal loans with fair credit scores also may have lower loan amounts. Most lenders will not be willing to give high loan amounts to people with fair credit scores. Keep this in mind if you are looking for a way to pay a large expense or need a large personal loan.

How can I get a personal loan with fair credit?

Finding a personal loan with great terms may be challenging. While you may not have as many options, you will still want to secure the lowest rate possible. However, you should avoid applying with several lenders as this may impact your credit score. So how do you compare personal loan offers with fair credit without impacting your credit score? You check offers at Acorn Finance! Some of our lending partners may be able to help fair credit borrowers.

However, if you have fair credit it may be best to invest some time into improving your credit score before you apply for a loan. If you do not have time to spare, consider applying for a personal loan with a cosigner.

Can I get a personal loan with a 580 credit score?

Some loan companies will require a credit score of at least 550, so yes, you can qualify for a personal loan with some companies with a 580 credit score. You might pay a higher interest rate though compared to people with good or excellent credit scores. Try to pay off the loan as quickly as possible or you will be stuck paying off a high amount on the principal amount due to interest.

How much of a loan can I get with a 580 credit score?

With a 580 credit score, you may not be able to get loans more than $10,000 unless you work with a specific fair credit lender. You might also need a co-signer or have a very high-interest rate. If you can boost your score up to 650, you should have a better chance of approval for higher loan amounts.

What credit score is needed for a $10,000 loan?

This depends on the lender or institution that is offering the loan. Some lenders may be a little more lenient if you have a high income or low amounts of debt, even if your credit score is only fair. However, most lenders will require a credit score of at least 620 before offering a $10,000 loan.

You might want to consider methods that will help in raising your score or searching for other lenders if you require a personal loan more than $10,000.

What credit score do I need for a 50,000 loan?

To qualify for a $50,000 personal loan you should have a credit score 650 or higher. Even with a 650 credit score, you may not qualify for all lenders that offer $50,000 personal loans. In addition, the interest may be high. A high interest rate on a high loan amount can equal a very high total loan cost. If lenders are willing to give loans to people with lower credit scores, that may require an origination fee or a co-signer to approve you for this amount.

Which bank has the easiest personal loan approval?

This depends on exactly what your credit score is. It might also depend on your income and your debt-to-income ratio. The banks with the easiest loan approval are said to be places like USAA and Wells Fargo.

Their websites do not disclose a minimum credit score requirement as some other banks do. However, they do say they consider people below a 640 credit range. They might be good options if you are shopping for personal loans. Always remember to check and see if you prequalify though.

What credit score do I need for a $3,000 loan?

A $3,000 personal loan is considered a smaller loan amount. At Acorn Finance most of our lending partners have a FICO cutoff of 600. This means that if you are looking for a personal loan with a credit score under 600, or you may have less chance of approval. Keep in mind the loan may still have high-interest rates and you might want to try and pay it off as soon as possible if you can.

What is the minimum credit score for a personal loan?

The minimum credit score for a personal loan can vary depending on the lender. Lenders and financial institutions set this score themselves and will decide on their minimum credit score. Check with individual companies to see what their rules are and what they might require from you in terms of credit score. Most lenders require a FICO 600 or above. However, with high income and low debt-to-income, they may be able to make acceptions.

How can I get a 40,000 loan with bad credit?

Getting a $40,000 personal loan with bad credit may be nearly impossible. If you can find a lender that will do the loan, it’s likely that the interest rate will be extremely high and there will likely be an origination fee. If you need a personal loan with bad credit, you should try to find a cosigner. While you can try to apply on your own it may be a waste of time. Before applying you may want to reach out to the lender and see if they have any advice. If you have bad credit, it’s always recommended to try to rebuild your credit before applying for a loan, especially a $40,000 loan.

What loan can I get with a 600 credit score?

If you have a FICO 600 or above, you may qualify with an Acorn Finance lending partner. However, keep in mind, lenders consider other factors when approving loans. If you are looking for a personal loan with 600 credit score while plenty of income and minimal debt, qualifying may not be that hard. While you may have to pay a high interest rate, at least you qualify. On the other hand, if you have a credit score of 600 and lots of debt, it may be very hard to qualify for a personal loan. When it comes to applying for a personal loan you should use your judgement. Ask yourself questions like ‘can I really afford the monthly payment’ before you apply for the loan. It may be best to improve your credit score before you apply for a loan.

What are the advantages of personal loans for fair credit?

Personal loans are a great option for people looking to consolidate high-interest debts or looking to finance home improvement or other large expenses. Another huge benefit is that they can help borrowers build credit.

When you take out a personal loan, you have to pay it back. This is how you build credit, if you’re on time with all of your payments and pay them in full. Lenders will usually report all of your payments to three main credit bureaus: Equifax, Experian, and TransUnion.

Paying off a personal loan will also be good practice to paying back other loans you have, and can help you get in the habit of paying off loans.

Payment history is 35% of your FICO credit score. That means that being consistent with your payments can increase 35% of your score. Your FICO credit score is your three-digit number based on your credit report. It helps lenders estimate how likely you are to pay back a loan, which informs how much you can borrow, and what the interest rate will be. That means that if you have a good FICO credit score, you will get more loans at better deals. Being able to increase 35% of your credit score by paying back a personal loan will really help you out.

What are the disadvantages of personal loans for fair credit?

Taking out a personal loan can be risky. One disadvantage of a personal loan with fair credit is that you may only qualify for high interest rate loans with more fees. As a result, the cost of borrowing money can be high and so can the monthly payment. With good credit personal loans, you can qualify for a low APR. With fair credit, your APR may be as high as 36%. APR stands for “annual percentage rate” and is the annual rate of interest that borrowers have to pay to investors.

A lot of lenders charge fees for processing your loan, like application fees and origination fees. Also, you might be penalized if you make a late payment or can’t afford your payment. There is also such a thing as a prepayment penalty.

Lenders will report late payments and nonpayments to credit bureaus. This means that if you don’t pay on time, can’t afford a payment, or default on your loan, your credit score may go from fair to bad. In addition, taking out a personal loan increases your balance, which is 30% of your FICO credit score.

Another disadvantage is the risk of unnecessary spending. Before taking out a personal loan, regardless of credit score, you should make sure you need to borrow the money. If borrowing the money will cause financial stress with no significant benefit, you may want to hold off on taking a personal loan.

If your credit score isn’t high enough to qualify for an unsecured loan, which it may not be with fair credit, you might have to pledge personal assets as collateral. Collateral is things like your house, car, boat, or certificate of deposit (CD). A CD is a product offered by bank and credit unions that gives premium interest rates in exchange for the customer leaving an untouched deposit for a period of time.

How will having fair credit affect getting a personal loan?

You don’t need a good or perfect credit score to get a personal loan. While you may qualify for a personal loan with a fair credit score, it may be harder to find competitive rates and terms. It may also be harder to find a lender that is willing to give you a loan. A FICO score ranges between 300 to 850. A fair score is considered to be between 580 and 669.

There are concrete steps to applying for a personal loan. First, think about your credit. You can get your credit score for free. Next, find the right lender. Look at the bank or credit union you already use and see what options they have available to you. There are also services online that help you find a good match. At Acorn Finance, you can check personal loan offers without impacting your credit score. This allows you to shop with several lenders all in one place. If you don’t qualify for a loan or are stunned by the terms, consider adding a cosigner to your application. If this is not an option you may want to rebuild your credit and apply for a loan at a later date.

Is it hard to get a personal loan with fair credit?

A personal loan lets you borrow money from a lender and pay it back over a set term with interest. In most cases, it’s fairly easy to get a personal loan, but if you have fair credit, you may encounter some challenges.

Having a fair credit score can limit your options when it comes to getting a personal loan. Fewer lenders are willing to work with borrowers with fair credit. However, it’s likely they will charge a high interest rate and fees for the risk they are willing to take.

Your credit score may be fair for a number of reasons: payment history, debt, loans, credit age, and new credit applications.

Before you apply for a personal loan, you should check your credit score. This will allow you to prepare for the responses you may receive from lenders. If you can hold off on getting a personal loan, you should try to rebuild your credit before applying. There are many online tools to look at, and track, your credit score. Some will even provide tips on how to improve your credit score. Be careful though, because sometimes checking your credit affects your score negatively. Be sure to find a tool that doesn’t affect your credit score.

If you decide to apply for a personal loan with fair credit, look for banks, credit unions, and online lenders that accept fair credit. Your options may be limited. Having a co-signer will improve your chances.

If you’re having a really hard time getting a personal loan, consider alternatives, such as credit cards, balance transfers, cash advances, and peer-to-peer lending companies.

What can I do with a personal loan with fair credit?

There are a lot of things you can do with a personal loan.

One thing you can use a personal loan for is debt consolidation. If you are currently being charged high interest rates, a personal loan can consolidate all of your old debts under one lower rate. Something to be careful of is continuing to use your credit lines while paying off your loans. This can put you in the same boat you were in before, if you’re not mindful.

Another thing you can use a personal loan for is medical bills. Depending on your insurance, you might accrue large amounts of medical bills for emergency room visits, testing for illnesses, chemotherapy, and other medical treatments. First, try to negotiate your medical bills down first. You might also be able to pay in installments. If neither of these options are available to you, a personal loan might be a good option.

Student debt can also be paid off with a personal loan. However, student loan interest rates tend to be lower than the interest rates of other loans, and the payment on your personal loan may be higher than your original interest rate. In addition, you may lose your option of flexible payment or debt forgiveness.

Personal loans are great for home repairs, especially if they are pressing or vital, such as a damaged roof. You might be able to get necessary home repairs covered by your home insurance, so check that first.

Divorce can be expensive, and the average divorce costs roughly $16,000. On top of the emotional burden, it can also cause a huge financial burden. A personal loan is a way to pay off your divorce fees.

On the other hand, weddings can also be expensive. Instead of saving away money for your wedding, a personal loan might be a good option so you can have the wedding of your dreams.

Closing Thoughts
In conclusion, fair credit borrowers may need to put in extra effort when it comes to securing a personal loan. Since you are susceptible to high interest rates and origination fees, you’ll need to be especially cautious. If you can’t justify or afford the loan, you should not go through with it. So do you qualify for a personal loan? You can check offers at Acorn Finance and find out.Acorn Finance has trustworthy lending partners that can offer APRs as low as 3.99%, depending on your credit score. Individuals can discover simple and competitive payment options through Acorn Finance. At Acorn Finance, you can submit one application and receive loan offers in 60 seconds or less with no impact to your credit score. Once you have claimed the best offer and finalized the loan, you can receive funds quickly.
Get prequalified for a personal loan. . . apply online today!

Trending home improvement projects

Barn Financing Options