There are plenty of personal loan options for borrowers with fair credit. However, it’s important to compare rates and terms carefully. Some lenders require a specific score or debt-to-income ratio, while others offer discounts or allow cosigners.

You can improve your fair-credit score by making on-time payments and lowering best personal loans fair credit credit utilization. Additionally, you can lower your rate by requesting an increase in your credit card limit or becoming an authorized user on someone else’s account.

Credit unions

Credit unions are a great source of personal loans with fair credit. They often offer lower interest rates on loans and savings accounts, plus they may take a borrower’s repayment history into account when assessing their application. They are also subject to federal regulations on interest rates, so they are less likely to increase your rates than a bank. However, they may have fewer branch locations and be slower to adopt new technologies.

Another option for personal loans with fair credit is to use online lenders. These lenders are usually able to approve applicants with lower minimum credit scores and debt-to-income ratios than banks. They can also be more flexible with cosigners and other nontraditional loan requirements. If you have fair credit, consider applying with an online lender like OneMain Financial, Happy Money or Prosper’s peer-to-peer marketplace.

When applying for a personal loan, be sure to review your credit report for errors and inaccuracies. You can then work to fix any negative remarks and raise your credit score before applying for a new loan. It’s also a good idea to pay down your existing debt before seeking out additional borrowing. This will improve your debt-to-income ratio and may help you qualify for a better loan rate. In addition, you can always pre-qualify with multiple lenders to find out if you’re eligible without impacting your credit score.

Online lenders

You can find personal loans with fair credit through a variety of online lenders. These lenders often offer streamlined applications and allow you to apply online, though you may need to submit documentation or take pictures of documents to complete the process. Some online lenders also have live customer service representatives to answer questions and help you through the application process.

When comparing lenders, be sure to compare interest rates and fees. Look for lenders with low maximum APRs and avoid those with steep interest rate increases, which can add up to thousands in additional costs over the life of the loan. You should also consider whether you can qualify for a lower APR by adding a cosigner, who would be responsible for the debt if you fail to make payments.

Another option for people with fair credit is to get a balance transfer credit card. These cards typically have 0 percent APR introductory offers that can help you pay off high-interest credit card debt more quickly. However, it is important to note that the interest rate on these cards will rise once the introductory period ends.

It is also important to consider your income and debt-to-income ratio (DTI). If you are unable to qualify for a personal loan with fair credit, you may be able to improve your chances by paying down other outstanding debts or lowering your DTI.

Secured loans

A personal loan can help you pay for a major expense or finance a home renovation, but you’ll want to choose the right type of lender and loan for your financial goals. Compare lenders and rates online to make sure you’re getting the best deal. Also consider signing up for credit monitoring services like Experian. They’ll alert you when there’s a change to your credit report, which can help you spot errors before they affect your score.

A secured loan is backed by collateral, such as cash in a savings account or property, which reduces the risk for the lender. This often makes it easier to qualify for a secured loan than an unsecured one, and it may have lower interest rates as well. However, if you fail to make payments, the lender can take your assets to cover its losses.

You can find secured loans at banks, credit unions and some online lenders. To qualify, the lender will review your credit and finances to determine eligibility. The process typically involves a hard credit inquiry, which can hurt your score temporarily. Look for lenders who offer prequalification, which uses a soft credit inquiry to check your credit without affecting it. If you have fair credit, you’ll likely need to provide a cosigner with a good credit history to get approved for a secured loan.

Credit cards

There are several lenders that offer personal loans for borrowers with fair credit. Each lender has its own specific specifications, including minimum credit scores and debt-to-income ratios. It’s important to find a lender that meets your needs and offers competitive rates for borrowers with fair credit. You may also want to consider alternative financing options, such as credit cards, which can be helpful for small, recurring expenses.

When you’re looking for a personal loan, it’s best to compare lenders’ rates and terms side-by-side. You can do this by using a free credit-monitoring service like Credible, which lets you see what rates lenders are offering to borrowers with your specific credit score and income.

Credit unions and online lenders are often the best options for borrowers with fair credit. Credit unions typically have lower minimum credit score requirements and may take other factors into consideration, such as a long membership history and consistent repayment habits. Online lenders, on the other hand, may be willing to extend a personal loan to borrowers with fair credit as long as they can demonstrate their ability to repay the loan in a timely manner.