Can you get a personal loan with fair credit?

Your credit score is a key that could open doors to loans. This number tells lenders how well you have managed credit and debt in the past. The better your credit score is, the more options you generally have for borrowing.

Can you get a personal loan with fair credit? Yes, there are loans out there to meet your needs with a score in this range. You just need to do a little prep work to find the right loan and the right lender to work with.

This article covers what fair credit means for your borrowing options, how to strengthen your application, where to look for loans, and what to look for along the way.

What is fair credit?

Fair credit typically means a FICO credit score between 580 and 669. This could be a high enough credit score for a loan. For perspective, the lowest FICO Score someone can have is 300; the highest is 850.

Fair credit usually means your score is in recovery mode from a past negative mark, or that you're still working on establishing a positive credit history in the first place. To a lender, fair credit signals a bit more uncertainty—but it's not a closed door. Many lenders work with borrowers at this score range, and your full financial picture matters too.

What credit score do I need for a personal loan? The answer is specific to the lender. Some lenders may approve you for a personal loan with a score of 580, if you have steady income or a co-signer. Others may prefer a score of 670 or better. That's good credit territory on the FICO scale.

Can you get approved for a personal loan with fair credit?

Yes, there are lenders that approve borrowers with fair credit. The rate you receive will reflect your full financial profile, including your credit score, income, and existing debts.

Prequalification lets you see estimated rates and terms before you formally apply. Most lenders use a soft inquiry for prequalification. A soft inquiry does not affect your credit score. Final terms depend on full underwriting and may differ from your prequalification estimate.

Can I get a personal loan with a 600 credit score? A 600 credit score falls within the fair credit range, and several lenders accept scores in that tier. The lowest advertised rates would likely be out of reach, but lenders do work with borrowers at this score. Even if your score is below 580, you might find lenders offering bad credit personal loans. If your score falls below the 580 mark, the main downside is that loans are likely to be expensive compared to what's available for someone with a higher score.

Checking personal loan credit score requirements with different lenders could give you an idea of where you have the best chances of getting a loan. Many online lenders list minimum credit score and other eligibility requirements on their websites, which makes it easier to weed out loans you may not qualify for.

What kind of personal loan can you get with fair credit?

You could qualify for secured or unsecured personal loans with fair credit. A secured loan is guaranteed by collateral, or something of value that you own. For example, you might use money in a savings account or a certificate of deposit as collateral for a loan. If you don't pay back what you borrow, the lender keeps your collateral.

Unsecured loans don't have that requirement. That may mean you need to apply for an unsecured loan in a smaller amount. It's often easier to get approved with fair credit when you borrow less.

As you look for personal loans for fair credit, pay attention to rates. Advertised rates that you see on a lender's website typically reflect the best-case scenario. They may be lower than what you're actually approved for. Getting prequalified could help you get a sense of your general rates.

How much could you expect to pay? Rates vary by lender and depend on your full financial picture. Credit score, income, existing debts, and loan amount all play a role. For fair credit borrowers, APRs often land in a wide range, from single digits to the mid-30s. Comparing multiple lenders gives you the best shot at finding a rate that works for your budget.

How to improve your chances of personal loan approval

There are several ways to make yourself more appealing to a lender. Here's what you can try.

Dispute credit report errors

Your credit reports are used to generate your credit scores. They include information about your credit accounts, like payment history and balances.

Errors or mistakes on your reports could hurt your credit scores. You can get free copies of your credit reports from AnnualCreditReport.com and review them for errors. If you spot any mistakes, dispute them with the credit bureaus to have them removed or corrected.

Borrow less

Requesting a smaller loan amount could improve your chances of approval. A smaller loan means less risk for the lender. You can add points to your credit score when you take out a small loan and repay it on time. That could help you qualify for a larger loan down the line.

Apply with a co-signer

If you have a friend or family member with good credit, they could co-sign your loan. Co-signers agree to take responsibility for the loan if you can't repay it, so lenders may be more willing to approve your application if you have a co-signer with strong credit.

Pay down some of your credit card debt

Your credit utilization (how much of your available credit you use at any given time) factors into your credit score calculation. If you have one or more credit cards that are close to or at the limit, paying some of that debt down could help your credit scores. Lower utilization is generally better. The closer to 0% the better.

Talk to the lender

You could also talk to your lender about why your credit score may have dropped in the past, if it was the result of a temporary financial hardship. If you've had a consistent income since then and your score is slowly rising, a lender may be more willing to offer you a loan.

Personal loan options for fair credit

Where can you find personal loans for fair credit? Start with Achieve Personal Loans, then compare banks, credit unions, and online lenders to find the best rate for your situation. It could be easier to get approved with some lenders than others.

If you're a member of a credit union, for example, you may be able to get a personal loan if you've always been a good customer. Credit unions may also offer lower rates and charge fewer fees for loans than banks.

Online lenders may work with a broader range of credit scores, including fair credit. Another advantage of online lenders is speed. You could get approved for an unsecured personal loan in minutes and get funded as soon as the next day.

Shopping around and comparing personal loans from several sources gives you the best chance of finding favorable terms.

How to compare lenders

When you're loan shopping, spend time researching lenders to make sure they're legit. Be wary of any lender that promises you guaranteed approval with no credit check. That's usually a sign of a scam or a marketing tactic to sell borrowers on extremely high-interest, high-risk personal loans.

Read the fine print on loan eligibility requirements and terms. Look at the fees you'll pay, including application fees, credit check fees, origination fees, late fees, and prepayment penalties. If there's a fee you don't understand, ask the lender to explain. If you don't get a straight answer, you might want to consider looking elsewhere for a loan.

Check lender reviews on sites like Trustpilot and search for its profile on the Better Business Bureau website. Consumer reviews can be a valuable source of information about what a lender does well—and where it could use improvement.

Moving from fair to good credit

If you're close to the good credit range, there may be some small things you can do to bump your score up. Making on-time payments every month, for example, could boost your credit score over time.

Achieve is not a Credit Repair Organization and does not provide, or offer, services or advice to repair, modify, or improve your credit.

Keep your credit utilization low. The closer to 0% the better. Even small paydowns on revolving balances can make a noticeable difference.

Avoid applying for several new credit accounts in a short period. Each application triggers a hard inquiry, and too many hard inquiries can drag your score down.

Keep older credit accounts open, even if you don't use them often. The length of your credit history factors into your score, so closing a long-standing account could shorten your average account age and lower your score.

Set up automatic payments so you never miss a due date. Payment history carries the most weight in your credit score calculation, and consistency here is one of the most reliable ways to build your score over time.

Ready to start your search for a personal loan? Find out if you qualify. It takes about two minutes and won't impact your credit.