Personal Loans for Fair Credit FAQs
Personal loans for fair credit are possible, but it’s important to understand what you’re getting into before applying.
What do I need to get loan approval with fair credit?
Along with your credit score, lenders will look at your income, assets, and debt-to-equity ratio. Lenders will review documents such as bank statements, tax returns, and pay stubs to make sure you can afford the loan and will pay it back.
What is the minimum credit score for a personal loan?
The minimum credit score required will depend on the lender. Lenders generally want at least a 640 credit score for a personal loan. However, some lenders may allow credit scores as low as 610.
How much do personal loans with fair credit scores cost?
Personal loans usually don’t have a lot of fees. However, lenders may charge origination fees if you have a fair credit rating. This is a percentage of your loan amount. For example, if you pay 2% on a loan amount of $20,000, you will pay $800 in origination fees. Setup fees are usually initial costs. You will also want to consider what you will pay in interest over the life of the loan.
How do personal loans affect my credit rating?
Personal loans may initially lower your credit score because it is new debt. Additionally, investigation and reduced length of credit history can negatively affect your credit score. However, with timely payments and proper use of your loan, a personal loan can help boost your credit score.