It's no secret that a lot of Americans (30 percent, to be exact) are dealing with bad or poor credit scores. What about all the people in the middle, though, whose scores aren't bad, but also aren't great?
If you're part of this group and have a fair credit score, you may be wondering what's out there for you as far as personal loan options go. The good news is that you have plenty of options from which you can choose.
Read on to learn about some of the best personal loans for fair credit.
What is a Fair Credit Score?
Based on typical credit scoring criteria, a fair credit score is one that falls between 580 and 669. You can check your credit score for free from Credit Knocks website.
This is kind of a grey area as far as credit scores are concerned. You're not in a bad enough position to seek out bad credit loans or payday loans, but you're also not in a good enough position to qualify for loans with really good interest rates and terms.
Being in this position doesn't mean you're out of luck, though.
Best Personal Loans for Fair Credit
If your credit score falls into the "Fair" category, there are lots of loans out there for which you have the potential to qualify. Start by considering the following.
LendingClub Personal Loans
For those whose credit scores are 600 or higher, personal loans from LendingClub are definitely worth considering.
They offer a co-sign option for those who don't meet the minimum credit score requirement, as well as a financial hardship option in the event that you cannot make your payments on time.
With these loans, you can borrow between $1,000 and $40,000.
Prosper Peer-to-Peer Loans
Prosper offers peer-to-peer loans and doesn't require a hard credit check before you can be approved.
They do have a higher minimum credit score requirement (640), but they also offer a faster approval process, so they're a good option if you need money right away.
With Prosper peer-to-peer loans, you can borrow between $2,000 and $40,000.
LightStream Personal Loans
LightStream offers personal loans that range from $5,000 to $100,000. They require a minimum credit score of 660, but they also offer lower-than-average interest rates — between 3.99 and 16.99 percent.
LightStream also doesn't charge any fees when you apply, and many people get funding on the same day that they submit their application and have it approved.
Marcus by Goldman Sachs Personal Loans
If you've been put off by some of the credit score minimums the above loans require, don't worry. Personal loans from Marcus by Goldman Sachs may be what you need.
There's no minimum credit score requirement for these loans, but keep in mind that your approval will be subject to a review of your credit score and credit history.
Avant Personal Loans
Avant personal loans are also good options for individuals with credit scores on the lower end of the Fair spectrum.
People with lower credit scores can often get approved for these loans, and they come with fixed terms and fixed interest rates, so you won't get any unpleasant surprises.
OneMain Personal Loans
If your credit score is at least 600 and you have a good history of making payments on time, you may qualify for a personal loan from OneMain.
OneMain offers personal loans up of to $20,000 and interest rates that range from 18.00 to 35.99 percent. In order to qualify for one of these loans, you'll also need to attend an in-person meeting at a OneMain branch.
FreedomPlus Personal Loans
FreedomPlus is one of the best lenders to consider if you have a fair (or lower) credit score, as they have no minimum credit requirements.
They offer loans from $7,500 to $40,000 with interest rates between 5.99 and 29.99 percent. FreedomPlus also offers same-day approval and fund availability within 48 hours of your application being approved.
LendingPoint Personal Loans
LendingPoint loans are also good personal loans for those with fair credit scores.
LendingPoint is known as one of the best online lenders, and they offer a simple and straightforward application process. With LendingPoint, you can qualify for personal loans of up to $25,000.
As long as you can provide proof of employment and income, as well as a valid ID, it'll be easy for you to get approved for loans from LendingPoint.
Tips for Applying for Personal Loans
As you can see, you have plenty of choices when it comes to personal loans for those with fair credit scores.
If you have a fair credit score — especially if it's on the higher end of the fair credit range — you shouldn't have any trouble qualifying for these loans.
To increase your chances of getting approved, though, you may still want to keep these tips in mind when filling out your applications.
Check Your Credit Report
Take a careful look at your credit report to check for errors. If you notice any, get them fixed before you apply for any loans.
Pay Down Your Debt
If possible, try to pay down your credit card and loan debt before applying for another loan. This will boost your credit score and improve your chances of approval.
Only Ask for What You Need
The less you ask for, the more likely you are to get approved. Be sure to ask for the lowest amount possible.
Have Your Documentation Ready to Go
Make sure you have all your necessary documents ready to go when you're applying for the loan. This includes a copy of your ID, bank statements, and other documents that provide proof of your income.
Get Your Personal Loan Today
If you've been on the hunt for great personal loans for fair credit scores, here are some of the best ones that you ought to consider.
All of these loans have good interest rates and fair terms.
If you take one of these out and pay it back on time, you'll likely see an increase in your credit score and will have an easier time qualifying for better loans in the future.
Do you want to find other good loan options? If so, head to the Loans section of our site today to learn more.