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Lenders may require verification of income and identification. Look for lenders that allow cosigners and offer flexible loan terms and repayment periods. Be sure to evaluate your budget and only borrow what you need, since personal loans must be repaid with interest.
Before applying for a personal loan, consider prequalifying with several lenders to see what you might qualify for without a hard credit pull that could ding your score.
1. Wells Fargo
Wells Fargo is one of the largest banks in the United States and offers a personal loan for consumers with fair credit. Its advantages include a competitive range of rates, an unusually wide variety of loan terms and relatively low loan fees. However, it also has some disadvantages, including a mixed customer service reputation and past regulatory fines.
For borrowers who qualify, Wells Fargo personal loans can be used for debt consolidation, home improvement projects, vacations and more. Loan amounts range from $3,000 to $100,000 and terms can be as short as a year or as long as 84 months. The lender also doesn’t charge origination or early repayment fees, though it does have a late fee of up to $39 if payments are more than 10 days overdue.
Applicants can expect to receive funds from their approved personal loan within one to three business days after they’ve accepted the terms of their loan agreement. The lender typically disburses funds via wire transfer or directly into a borrower’s Wells Fargo consumer checking account. Wells Fargo is one of the few lenders that offer a relationship discount, which reduces the APR on personal loans by up to 0.5% for customers who pay their loans through a Wells Fargo consumer checking account and enroll in autopay. In addition, Wells Fargo offers refinance options for existing personal loan borrowers who want to change their term or achieve a lower monthly payment.
2. Laurel Road
Laurel Road is one of the most well-known personal loan providers for fair credit. Its advantages include low rates, no origination fees and a fast funding timeline. It also provides a variety of loan amounts, repayment terms and cosigner options. However, its minimum credit score requirement of 660 is higher than many other lenders. Fortunately, you can apply with a cosigner to improve your chances of approval.
Another lender that offers personal loans for fair credit is Sofi. While it has a lower maximum loan amount than Laurel Road, it doesn’t charge origination fees and can offer an autopay rate discount. It also has more borrower-friendly features, including unemployment protection and career advice for medical professionals.
Both guaranteed $500 loan with bad credit Laurel Road and Sofi are owned by KeyBank, which serves as the loan servicer for both lenders. KeyBank also offers a full range of deposit products, including high-yield savings accounts, cash-back rewards checking accounts and short- and long-term CDs.
For full-service online banking, consider Discover. Its high-yield savings and checking accounts can earn you a competitive rate, and it offers a variety of loans and credit cards for all types of credit. The bank’s checking and savings accounts are both FDIC-insured, and you can open an account in minutes from the company’s website or mobile app. You can even sign up for a checking account using an email address or phone number instead of a physical ID.
3. Avant
Avant is one of the best lenders for personal loans with fair credit, offering competitive rates and terms for borrowers with scores in the 580 to 680 range. Its loan application is completely online and typically takes two to three business days to process, depending on how long it takes to verify your income and other information. The lender offers flexible repayment terms, including the option to choose your monthly payment due date, and a highly rated mobile app for managing your loan.
Avant does not require a co-signer or collateral, but it does perform a hard credit inquiry when you apply, which could drop your score by a few points temporarily. The lender also does not offer secured personal loans or debt consolidation.
On Trust Pilot, Avant has an excellent customer rating of 4.6 stars, and it is among the top lenders in this category. It also has a hardship program for borrowers who experience financial difficulties and may be able to defer payments or extend their loan term.
However, Avant does not currently offer personal loans in the states of Colorado, Hawaii, Iowa, Montana, New York, Rhode Island, Vermont and West Virginia. And its minimum credit score is 680, which is higher than what most lenders consider to be fair credit. Regardless, Avant is still worth considering if you’re looking for a personal loan to consolidate debt or finance an expense.
4. OneMain Financial
Like many lenders, OneMain Financial sets a minimum credit score for personal loans, but you may still qualify with lower scores if you meet other criteria. OneMain also looks at your state of residence, credit history, income and debt-to-income ratio to decide if you can afford the loan. It doesn’t disclose its other underwriting requirements, including the maximum loan amount you can get or whether you must have a co-borrower.
Its advantages include a fast application process and multiple repayment terms. You can choose to borrow up to five years and pay off the loan early without paying a penalty. Its disadvantages include high rates and the fact that it only lends in 44 states.
You can check your rates with OneMain Financial online without having to submit a full application. It uses a soft credit pull to prequalify you, and it only performs a hard check when you submit a formal application. It requires borrowers to submit documentation such as a valid government-issued ID, proof of income and residency.
You can apply for a OneMain Financial personal loan online or over the phone. The lender typically funds loans within an hour for in-person applicants and a day or two for those who apply online. OneMain also lets borrowers choose their payment date and change it twice during repayment.