Many lenders offer personal loans for fair credit. You just need to know what to look for. The first thing is to check the minimum credit score required by the lender. Is it lower than yours? Next, make sure the lender offers the loan amount and terms you need. You can expect to pay a higher interest rate — personal loan interest rates for fair credit ranged from 27% to 30% in September 2023, according to Credible data. So shop multiple lenders to find the lowest rates and, ideally, loans with no origination fees.
Here’s everything you need to know about getting a personal loan with a 600 credit score:
Compare personal loan rates
Several personal loan lenders are willing to work with borrowers who have a fair credit score — generally meaning a FICO score between 580 and 669.
Here are Credible’s partner lenders that offer personal loans to borrowers with credit scores in the 600s:
3.93.9
Credible rating
Fixed (APR)
6.40% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
620
on Credible’s website
View Details
Overview
Upstart has the lowest available APRs of any Credible partner lenders and of all non-partners we reviewed — starting at 5.20%. It also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it a good choice if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Not available in Iowa or West Virginia
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposes
Read full review
4.44.4
Credible rating
Fixed (APR)
-
Loan Amounts
$2500 to $40000
Min. Credit Score
660
on Credible’s website
View Details
Overview
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $25,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Loan amount
$2,500 - $40,000
Repayment terms
3 - 7 years
Fees
Late fee
Discounts
None
Eligibility
Available in all 50 states
Min. income
$25,000
Customer service
Phone
Soft credit check
Yes
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Read full review
4.54.5
Credible rating
Fixed (APR)
8.49% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
600
on Credible’s website
View Details
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full review
44
Credible rating
Fixed (APR)
8.99% - 35.99%
Loan Amounts
$2000 to $50000
Min. Credit Score
600
on Credible’s website
View Details
Overview
Best Egg is a solid lender for a wide range of borrowers. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full review
44
Credible rating
Fixed (APR)
9.57% - 35.99%
Loan Amounts
$1000 to $40000
Min. Credit Score
660
on Credible’s website
View Details
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 6%.
Loan amount
$1,000 to $40,000
Fees
Origination fee
Discounts
None
Eligibility
Available in all 50 states
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
Usually takes about 2 days
Loan uses
Debt consolidation, paying off credit cards
Read full review
3.93.9
Credible rating
Fixed (APR)
9.95% - 35.99%
Loan Amounts
$2000 to $35000
Min. Credit Score
550
on Credible’s website
View Details
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 4.75%, and its top-range interest rates are among the highest of the lenders we reviewed.
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Discounts
None
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
Read full review
3.83.8
Credible rating
Fixed (APR)
11.72% - 24.67%
Loan Amounts
$3000 to $40000
Min. Credit Score
640
on Credible’s website
View Details
Loan amount
$5,000 to $40,000
Fees
Origination fee
Discounts
None
Eligibility
Available in all states except MA, MS, NV, and OH
Min. income
None
Customer service
Phone, email, chat
Soft credit check
Yes
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Read full review
4.54.5
Credible rating
Fixed (APR)
14.30% - 35.99%
Loan Amounts
$3500 to $40000
Min. Credit Score
640
on Credible’s website
View Details
Loan amount
$3,500 to $40,000
Fees
Origination Fee, $15 Late Fee, $25 NSF Fee
Discounts
None
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Min. income
$1,000 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
Read full review
3.93.9
Credible rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1500 to $20000
Min. Credit Score
Does not disclose
on Credible’s website
View Details
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score requirement, meaning you could get a personal loan with bad credit or no credit. Cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given. According to internal Credible data, OneMain had one of the lowest rates of loan approval after prequalification among partner lenders.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full review
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Compare Rates Now
9 personal loans for a 600 credit score
low origination fees for bad credit
Avant
3.9
Credible Rating
on Credible’s website
Est. APR
9.95 - 35.99%
Loan Amount
$2000 to $35000
Min. Credit Score
550
Pros and cons
Borrowers with bad credit considered
Funds as soon as the next business day
1-year loan terms available on Avant's website
Low maximum origination fee
No discounts offered
Origination fee
Not available in HI, IA, MA, ME, NY, VT, or WV
More details
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 4.75%, and its top-range interest rates are among the highest of the lenders we reviewed.
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Discounts
None
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
close rates if pre-approved
Best Egg
4
Credible Rating
on Credible’s website
Est. APR
8.99 - 35.99%
Loan Amount
$2000 to $50000
Min. Credit Score
600
Pros and cons
Secured loans available
Low minimum income requirement
Funds in 1-3 business days
High close rate on loans through Credible platform
Origination fees
No discounts
Not available in DC, IA, VT, or WV
More details
Overview
Best Egg is a solid lender for a wide range of borrowers. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Low interest rate personal loans
Discover Personal Loans
4.4
Credible Rating
on Credible’s website
Est. APR
-
Loan Amount
$2500 to $40000
Min. Credit Score
660
Pros and cons
Low minimum APR
May fund the next business day
Long loan terms available
Direct pay to creditors
No origination fee
No discounts offered
Secured loans not available
More details
Overview
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $25,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Loan amount
$2,500 - $40,000
Repayment terms
3 - 7 years
Fees
Late fee
Discounts
None
Eligibility
Available in all 50 states
Min. income
$25,000
Customer service
Phone
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Consolidating credit card debt, boosting your credit score
Happy Money
3.8
Credible Rating
on Credible’s website
Est. APR
11.72 - 24.67%
Loan Amount
$3000 to $40000
Min. Credit Score
640
Pros and cons
Mobile app
Live chat
Low maximum APR
Limited loan terms available
No discounts
Origination fees
Not available in MA or NV
More details
Loan amount
$5,000 to $40,000
Fees
Origination fee
Discounts
None
Eligibility
Available in all states except MA, MS, NV, and OH
Min. income
None
Customer service
Phone, email, chat
Soft credit check
Yes
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
online experience
LendingClub
4
Credible Rating
on Credible’s website
Est. APR
9.57 - 35.99%
Loan Amount
$1000 to $40000
Min. Credit Score
660
Pros and cons
Mobile app
Low minimum income requirement
High close rate on loans made through Credible
Available in all states
Origination fee
No discounts
Only 3- and 5-year repayment terms available
More details
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 6%.
Loan amount
$1,000 to $40,000
Fees
Origination fee
Discounts
None
Eligibility
Available in all 50 states
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
Usually takes about 2 days
Loan uses
Debt consolidation, paying off credit cards
personal loans for bad credit
OneMain Financial
3.9
Credible Rating
on Credible’s website
Est. APR
18.00 - 35.99%
Loan Amount
$1500 to $20000
Min. Credit Score
Does not disclose
Pros and cons
Borrowers with poor credit may be eligible
Secured loans available
Allows cosigners
Can fund as soon as one business day after approval
High minimum APR
Process not 100% digital
Not available in AK, AR, CT, DC, MA, RI or VT
High maximum origination fee
More details
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score requirement, meaning you could get a personal loan with bad credit or no credit. Cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given. According to internal Credible data, OneMain had one of the lowest rates of loan approval after prequalification among partner lenders.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Small loan amounts from online lenders
Reach Financial
4.5
Credible Rating
on Credible’s website
Est. APR
14.30 - 35.99%
Loan Amount
$3500 to $40000
Min. Credit Score
640
Pros and cons
May fund within 1 day
Fair-credit borrowers may be eligible
Social Security number not required to prequalify
Origination fee
No discounts
Not available in CO, CT, ME, NV, NH, TN, VT, WV, or WY
More details
Loan amount
$3,500 to $40,000
Fees
Origination Fee, $15 Late Fee, $25 NSF Fee
Discounts
None
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Min. income
$1,000 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
personal loans for fair credit
Upgrade
4.5
Credible Rating
on Credible’s website
Est. APR
8.49 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
600
Pros and cons
Autopay and direct pay discounts
Can fund in as little as 1 business day
Longer loan terms available
High maximum origination fee
Cosigners not accepted
More details
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Fast personal loans for bad credit
Upstart
3.9
Credible Rating
on Credible’s website
Est. APR
6.40 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
620
Pros and cons
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
May charge a high origination fee
Not available in Iowa or West Virginia
No discounts offered
More details
Overview
Upstart has the lowest available APRs of any Credible partner lenders and of all non-partners we reviewed — starting at 5.20%. It also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it a good choice if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Not available in Iowa or West Virginia
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposes
How to apply for a personal loan with a 600 credit score
If you’re ready to apply for a fair credit personal loan, follow these four steps:
- Review your credit. Lenders will check your credit to determine if they should lend to you. It’s a good idea to review your credit report ahead of time to make sure there aren’t any errors dragging down your credit score. You can check your credit report for free at AnnualCreditReport.com.
- Compare lenders and choose a loan option. Be sure to compare as many lenders as possible to find the right loan for you. Consider not only rates but also repayment terms and any fees the lender charges. After shopping around, choose the loan that best fits your needs.
- Submit the application. After deciding on a lender, you’ll need to complete a full application and submit any required documentation, such as tax returns or bank statements.
- Get your funds. If you’re approved, the lender will have you sign for the loan so they can release the funds to you (often through direct deposit). The time to fund for personal loans is typically a week or less — though some lenders offer same or next-day funding.
It’s also a good idea to consider how much a low interest personal loan will cost you over time. You can estimate how much you’ll pay for a loan using our personal loan calculator below.
Check Out: 17 Installment Loans to Consider
Can you get a personal loan with a 600 credit score?
Yes, you can get a personal loan with a 600 credit score — there are even lenders that specialize in offering fair credit personal loans.
But keep in mind that if you have a credit score between 580 and 669, you’ll generally be considered a “subprime” borrower — meaning lenders might see you as a more risky investment. Because of this, you’ll likely pay a higher interest rate than borrowers with good to excellent credit.
In addition to your credit score, lenders may also consider your Credit Information Bureau (India) Limited, or CIBIL, rating. Your CIBIL rating is calculated by your payment history for different loan types and credit institutions over a period of time. CIBIL scores range from 300 to 900, and a score above 700 is considered good.
Even if you don’t need a cosigner to qualify, having one might get you a lower interest rate than you’d get on your own.
Here are lenders that offer cosigned personal loans:
4.64.6
Credible rating
Fixed (APR)
8.49% - 17.99%
Loan Amounts
$600 to $50000
Min. Credit Score
760
on Credible’s website
View Details
Overview
PenFed is a credit union that offers personal loans to applicants with good credit. Though you'll need to become a member to receive a loan, membership is open to everyone. PenFed shines with no origination fees, small available loan amounts, and low interest rates. If you don't have a FICO score above 700, you may not qualify on your own, but can apply with a cosigner with good credit — which is not something most lenders offer.
PenFed doesn't have a minimum income amount, and offers live chat and an entirely online loan application process.
Loan amount
$600 to $50,000
Fees
Unsuccessful payment fee, late fee
Discounts
None
Eligibility
Does not disclose
Min. income
No flat restriction
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically 1 to 2 business days after verification
Loan uses
Debt consolidation, home improvement, credit card refinancing
Repayment terms
12 to 60 months
Read full review
44
Credible rating
Fixed (APR)
-
Loan Amounts
$20000 to $200000
Min. Credit Score
660
on Credible’s website
View Details
Overview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees
Discounts
None
Eligibility
Available in all states except Maryland and Illinois
Min. income
$100,000
Customer service
Email, phone
Soft credit check
Not on lender's site
Time to get funds
In as few as 5 days
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Read full review
3.93.9
Credible rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1500 to $20000
Min. Credit Score
Does not disclose
on Credible’s website
View Details
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score requirement, meaning you could get a personal loan with bad credit or no credit. Cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given. According to internal Credible data, OneMain had one of the lowest rates of loan approval after prequalification among partner lenders.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Min. income
Does not disclose
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
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All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
If you decide to take out a personal loan, remember to consider as many lenders as possible to find a loan that fits your needs. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
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How to raise your credit score
If you can wait to take out a loan, spending some time improving your credit score first could help you qualify for lower interest rates and better loan terms. Having a lower interest rate could help you save money on your loan over time.
Here are several ways to potentially build credit:
- Pay your bills on time. Your payment history accounts for 35% of your credit score. Paying all of your bills — such as utility and credit card bills — on time could help improve your credit over time, especially if you’ve missed payments in the past.
- Pay down existing debt. Your credit utilization (the amount of credit you’ve used compared to your total available credit) makes up 30% of your credit score. If you can pay down the balances on your accounts, you might see a boost to your credit.
- Dispute errors on your credit report. One in five people have errors on their credit reports, according to the Federal Trade Commission. If you’re one of these people, you could end up with less favorable loan terms — or even damaged credit. Take some time to review your credit report and dispute any issues with the major credit bureaus.
- Reduce your debt-to-income ratio. Your debt-to-income (DTI) ratio measures the amount you pay in monthly debt compared to your income. This ratio informs lenders of your ability to manage monthly payments, and a good one is considered to be 40% or less.
To calculate your DTI, add up your monthly debt payments and divide the total payment cost by your gross monthly income. Your DTI doesn’t directly affect your credit, but many lenders take it into consideration when deciding if they should approve your loan.
What credit score should I aim for?
Generally, borrowers with good to excellent credit get better loan terms.
If you want to improve your fair credit score, aiming for a score anywhere from 670 to 739 is a good place to start — this will put you in the good credit range and will likely qualify you for better rates and terms.
Meet the expert:
Kat Tretina
Kat Tretina is a freelance writer who covers everything from student loans to personal loans to mortgages. Her work has appeared in publications like the Huffington Post, Money Magazine, MarketWatch, Business Insider, and more.
Thank you for diving into this comprehensive guide on personal loans for fair credit. As someone deeply immersed in the world of personal finance, I can attest to the importance of understanding the nuances of credit scores and the lending landscape. Now, let's break down the key concepts covered in the article:
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Credit Score Ranges:
- Fair credit scores typically fall between 580 and 669 on the FICO scale. This range categorizes individuals as subprime borrowers, leading to higher interest rates.
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Interest Rates for Fair Credit:
- The article mentions that personal loan interest rates for fair credit ranged from 27% to 30% in September 2023, according to Credible data. This underscores the impact of credit scores on loan costs.
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Choosing a Lender:
- When seeking a personal loan, the article advises borrowers to check the minimum credit score required by the lender, ensuring it is lower than their own score.
- It emphasizes the importance of evaluating the loan amount, terms, and potential origination fees. Shopping around for the lowest rates is crucial.
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Lender Options for 600 Credit Score:
- The article introduces several lenders catering to individuals with credit scores in the 600s, including Upstart, Discover Personal Loans, Upgrade, Best Egg, LendingClub, Avant, Happy Money, Reach Financial, and OneMain Financial.
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Lender Details:
- Each lender is described with details such as APR range, loan amounts, minimum credit score requirements, eligibility criteria, fees, and the time it takes to receive funds.
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Considerations for Borrowers:
- The article provides insights into factors like Trustpilot ratings, origination fees, discounts (such as autopay and direct pay), and eligibility criteria like minimum income requirements.
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Loan Uses:
- Lenders offer personal loans for various purposes, including paying off credit cards, debt consolidation, home improvement, major purchases, and more.
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Cosigned Personal Loans:
- For those with fair credit, having a cosigner can enhance approval chances and potentially result in lower interest rates. Lenders like PenFed and BHG Money offer such options.
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Improving Credit Score:
- The article concludes with advice on how to raise a credit score before applying for a loan. Tips include paying bills on time, reducing debt, disputing errors in credit reports, and improving the debt-to-income ratio.
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Credit Score Targets:
- Aspiring to achieve a credit score in the range of 670 to 739 is recommended for better loan terms and improved financial health.
In summary, this article serves as a valuable resource for individuals with fair credit looking to navigate the personal loan landscape. It covers not only the available options but also provides actionable steps to enhance creditworthiness and secure more favorable loan terms.