5 Personal Loan Lenders To Consider If Your Credit Score Is Below 670

Emily Parkin

Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We earn a commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

If your credit score is less than ideal, you may feel like you face additional challenges when it comes to accessing good financial products, like the best credit cards or the best personal loans. However, there are a few lenders that actually cater to applicants with lower credit scores in the poor/fair range (669 and below for the FICO® Score model, and 660 and below for the VantageScore® model) to help them borrow money for emergency expenses, a medical bill, debt consolidation and other financing needs.

Below, Select rounded up five of the best personal loan lenders that still accept applicants who have credit scores below 670. We looked at fees, interest rates and flexible repayment options for different credit scores. (You can read more about our methodology below.)

In the meantime, remember that if you are applying for loans — or any line of credit — with a lower credit score, you are likely to receive higher interest rates because lenders will see you as more of a “riskier” borrower. It’s important to compare rates with different lenders and do your homework before signing on the dotted line to make sure you’re comfortable with your new loan terms.

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Best personal loan lenders for a credit score below 670

Compare offers to find the best loan

This tool is provided and powered by Even Financial, a search and comparison engine that matches you with third-party lenders. Any information you provide is given directly to Even Financial and it may use this information in accordance with its own privacy policies and terms of service. By submitting your information, you agree to receive emails from Even. Select does not control and is not responsible for third party policies or practices, nor does Select have access to any data you provide. Select may receive an affiliate commission from partner offers in the Even Financial tool. The commission does not influence the selection in order of offers. 

Best for people without credit history

Upstart Personal Loans

  • Annual Percentage Rate (APR)

  • Loan purpose

    Debt consolidation, credit card refinancing, home improvement, wedding, moving or medical

  • Loan amounts

  • Terms

  • Credit needed

    FICO or Vantage score of 600 (but will accept applicants whose credit history is so insufficient they don’t have a credit score)

  • Origination fee

    0% to 8% of the target amount

  • Early payoff penalty

  • Late fee

    The greater of 5% of monthly past due amount or $15

Pros

  • Open to borrowers with fair credit (minimum 600 score)
  • Will accept applicants who have insufficient credit history and don’t have a credit score
  • No early payoff fees
  • 99% of personal loan funds are sent the next business day after completing required paperwork before 5 p.m. Monday through Friday

Cons

  • High late fees
  • Origination fee of 0% to 8% of the target amount (automatically withheld from the loan before it’s delivered to you)
  • $10 fee to request paper copies of loan agreement (no fee for eSigned virtual copies)
  • Must have a social security number

Who’s this for? Sometimes, a potential borrower may have a low credit score because they have extremely limited credit activity. Other times, a lack of credit history may result in them having no credit score at all. Because of this, Upstart accepts applicants with no credit history — though this lender also looks at applicants with a FICO score of 600 or higher. Just keep in mind that if you are approved for the loan with a lower (or no) credit score, you may be subject to a higher interest rate.

You can apply for loan amounts as low as $1,000 and as much as $50,000. And while there are no penalties for paying off your balance early, Upstart does charge an origination fee (up to 8% of the amount you borrow) and late fees ($15 or 5% of the past due balance, whichever is greater).

When it comes to repaying the balance, loan terms range from 36 to 60 months, which can be appealing to borrowers who think they may need a longer time horizon to repay the entire loan.

Best for borrowing smaller loan amounts

Upgrade Personal Loans

  • Annual Percentage Rate (APR)

  • Loan purpose

    Debt consolidation/refinancing, home improvement, major purchase

  • Loan amounts

  • Terms

  • Credit needed

  • Origination fee

    2.9% to 8%, deducted from loan proceeds

  • Early payoff penalty

  • Late fee

    Up to $10 (with 15-day grace period)

Pros

  • No early payoff fees
  • Loans up to $50,000
  • Fixed interest rates (no surprises)
  • Can pay creditors directly (may take up to two weeks)
  • Fast funding in as little as four days

Cons

  • No joint applications or co-signers
  • Origination fee of up to 8% (deducted from your loan)
  • Not available in Colorado, Connecticut, Iowa, Maryland, Vermont and West Virginia

Why Upgrade is the best for financial literacy:

  • Free credit score simulator to help you visualize how different scenarios and actions may impact your credit
  • Charts that track your trends and credit health over time, helping you understand how certain financial choices affect your credit score
  • Ability to sign up for free credit monitoring and weekly VantageScore updates

Who’s this for? Upgrade typically looks at borrowers who have fair or good credit. With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780.

Most personal loan lenders offer amounts starting around $3,000 or $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000). The $1,000 minimum makes the loan feel a little more digestible for those who don’t need to borrow too much money. This is especially important because it’s generally best to only apply for what you’ll need since borrowing more will result in higher monthly payments.

Also keep in mind that Upgrade personal loans have an origination fee of up to 8%, which is deducted directly from your loan proceeds. So, if you know you’ll need $1,000, you should account for the origination fee and apply for a loan amount closer to $1,080 to cover all your bases.

Upgrade doesn’t have any prepayment penalties, but it does have a late fee: If you pay late or miss a payment, you could be hit with a $10 late fee if your payment is not received in full within 15 calendar days of the due date. 

Otherwise, these loans are fast and easy to secure, and the funds should arrive in your checking account within one business day of submitting the required documents and being approved.

Best for flexible terms

OneMain Financial Personal Loans

  • Annual Percentage Rate (APR)

  • Loan purpose

    Debt consolidation, major expenses, emergency costs

  • Loan amounts

  • Terms

  • Credit needed

  • Origination fee

    Flat fee starting at $25 to $500 or percentage ranging from 1% to 10% (depends on your state)

  • Early payoff penalty

  • Late fee

    Up to $30 per late payment or up to 15% (depends on your state)

Pros

  • Approves applicants with bad or fair credit
  • No early payoff fees
  • Reasonable loan minimums ($1,500) for smaller needs
  • Can pre-qualify with a soft credit check (no hard inquiry right away)
  • ACH funding within 1-2 business days (sometimes same day with proper paperwork)
  • Option to apply for secured loan (with collateral) for potentially lower rates
  • Borrowers can choose the date the bill is due each month
  • Applicants may apply with a co-applicant or, if married, may apply for a loan separately from spouse

Cons

  • High origination fee
  • High interest rates
  • No autopay APR discount
  • No co-signers

Information about OneMain Financial’s secured loans:

While not required, applicants who don’t qualify for an unsecured personal loan with OneMain Financial may be offered a secured loan. A secured loan lets borrowers who want to use the equity from their car potentially qualify for lower interest that way. Rates, repayment terms and agreements vary by individual and the state in which apply. Learn more by checking for offers on OneMain Financial’s site.

OneMain Financial link provided by Even Financial.

OneMain Financial consumer loans are offered in 44 states (we do not lend in AK, AR, CT, DC, MA, RI, and VT). Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.

Example loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.

Additional conditions for secured offers: Secured offers require a first lien on a motor vehicle that meets our value requirements, titled in your name with valid insurance. The lender places a lien on the collateral until the loan is paid in full. Active duty military, their spouse or dependents covered by the Military Lending Act may not pledge any vehicle as collateral.

Funding options; availability of funds: Loan proceeds may be disbursed by check or electronically deposited to the borrower’s bank account through the Automated Clearing House (ACH) or debit card (SpeedFunds) networks. ACH funds are available approximately 1 to 2 business days after the loan closing date. Funds through SpeedFunds can be accessed on the loan closing date by using a bank-issued debit card.

Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500.

Who’s this for? OneMain Financial offers loan options that are much less rigid compared to other lenders. This lender generally accepts applicants with at least a poor or fair credit score, but if you’re worried your credit score will hurt your chances of securing a better interest rate, you may be able to submit your application with a co-applicant. Plus, borrowers can take advantage of repayment terms with a bit more flexibility compared to that of some lenders as terms range from 24 months to 60 months.

Another feature that makes this lender a little more flexible is the ability to secure your loan with collateral. Personal loans are generally unsecured debt, meaning you can borrow the money outright without having to offer up something of value. But with secured loans, a borrower essentially uses another asset as a “promise” that if they fail to repay their loan in full, the lender can seize that asset from them as collateral. Not only does OneMain Financial give you this option, but doing so also lets you potentially receive an even lower interest rate. Plus, borrowers can actually choose the date their monthly payments are due.

The origination fee with OneMain Financial is on the higher end: either a fixed fee between $25 and $500 or up to 10% of the loan amount, depending on which state you live in. And while there aren’t any penalties for paying off the loan early, there is a late fee that will run you either $30 or up to 15% (depending on your state).

Best if you need a co-applicant

SoFi Personal Loans

  • Annual Percentage Rate (APR)

    5.74% – 21.28% when you sign up for autopay

  • Loan purpose

    Debt consolidation/refinancing, home improvement, relocation assistance or medical expenses

  • Loan amounts

  • Terms

  • Credit needed

  • Origination fee

  • Early payoff penalty

  • Late fee

Pros

  • No origination fees, no early payoff fees, no late fees
  • Unemployment protection if you lose your job
  • DACA recipients can apply with a creditworthy co-borrower who is a U.S. citizen/permanent resident by calling 877-936-2269
  • Can have more than one SoFi loan at a time (state-permitting) 
  • May accept offer of employment (to start within the next 90 days) as proof of income
  • Co-applicants may apply

Cons

  • Applicants who are U.S. visa holders must have more than two years remaining on visa to be eligible
  • No co-signers allowed (co-applicants only)

Who’s this for? SoFi actually only considers applicants with good or excellent credit for its personal loan products. However, because this lender is very open to borrowers who need a co-applicant, it’s still worth considering if your credit score is closer to the poor/fair range.

A co-applicant on a personal loan can be beneficial for someone who has damaged credit, poor credit or a credit history that’s so insufficient that they likely may not be approved for the loan if they applied alone. Or, sometimes a co-applicant can be used to give qualifying borrowers with an already good credit score an extra boost for securing better interest rates.

An ideal co-applicant will have a higher credit score and higher income. These attributes tell lenders that the borrowers are more likely to be able to afford to repay the loan. The co-applicant is also financially on the hook for repaying the loan if the other co-applicant fails to make payments.

SoFi doesn’t charge any origination fees, late fees or early payoff fees. And, you can borrow between $5,000 to $100,000, which makes SoFi an attractive option for people who need to borrow larger amounts for bigger expenses.

You can get your loan funded the same day, or the next business day, provided you don’t need to apply with additional information. Plus, when you sign up for a SoFi Personal Loan, you can join its membership platform to take advantage of a host of other perks like career counseling, financial advising and more.

Best for secured loan options

Avant Personal Loans

  • Annual Percentage Rate (APR)

  • Loan purpose

    Debt consolidation, major expenses, emergency costs, home improvements

  • Loan amounts

  • Terms

  • Credit needed

  • Origination fee

  • Early payoff penalty

  • Late fee

    Up to $25 per late payment after 10-day grace period

Pros

  • Lends to applicants with scores lower than 600
  • No early payoff fees
  • Can pre-qualify with a soft credit check (no hard inquiry)
  • Quick funding (often by the next day)
  • Late payment grace period of 10 days
  • Option to apply for secured loan (against title of your car) for potentially lower interest

Cons

  • Origination fee
  • Potentially high interest (caps at 35.99% APR)
  • No autopay APR discount
  • No direct payments to creditors (for debt consolidation)
  • No co-signers

Information about Avant’s secured loans:

In 40 states, Avant offers an alternative to title loans for borrowers who want to use the equity from their car to potentially qualify for lower interest.

  • Repayment options between two to four years.
  • Applicant’s entire credit profile is evaluated, including credit score, income and borrowing history (not just the value of the car)
  • Rates as low as 9.95% (capped at 35.99% APR)

Who’s this for? Similar to OneMain Financial, Avant also provides the option for borrowers to secure their personal loan with collateral. One key difference between the two, however, is that OneMain Financial’s interest rates can range from 18.00% to 35.99% while Avant’s range from 9.95% to 35.99%, giving borrowers the ability to potentially secure a lower interest rate with Avant.

Avant will consider applicants with credit scores under 600, but, again, we remind you that the higher your credit score, the more likely you are to receive the lowest, best rates. This lender also offers personal loan amounts as low as $2,000 and as high as $35,000, and you can typically receive your funds as soon as the next business day after you’ve been approved.

While there are no penalties for early payoff, there is an origination fee of up to 4.75% and a late fee of up to $25 after the 10-day grace period.

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Our methodology

To determine which personal loans are the best, Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.

When narrowing down and ranking the best personal loans for fair or good credit, we focused on the following features:

  • Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
  • Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
  • No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
  • Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
  • Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
  • Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders offer the ability to pay your creditors directly.
  • Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
  • Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

After reviewing the above features, we sorted our recommendations by best for having no credit history, borrowing smaller loan amounts, flexible terms, applying with a co-applicant and getting secured loan options.

Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. Before providing a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more. 

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.


https://www.cnbc.com/select/personal-loan-lenders-credit-score-below-670/

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