Loans for a 600 credit score: What to know and where to find one

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If you have fair credit, it’s possible to get a personal loan. But 600 credit score loans may not come with the best interest rates. Learn more. (iStock)

It’s easy to recognize the power of your credit score, especially if you’re planning to get a mortgage, open a new credit card account, or buy a car. The closer you are to a good credit score (a FICO Score of 670 to 739), the more likely you are to qualify for better interest rates and loan terms.

But what if you try taking out a loan with a fair credit score of around 600? Here’s how your credit affects your ability to get a loan, how lenders view fair credit, and the best personal loans for a 600 credit score.

Credible makes it easy to see your prequalified personal loan rates from various lenders, all in one place.

Can you get a personal loan with a 600 credit score?

Yes, it’s possible to get a personal loan with a 600 credit score — but there are some limitations.

Not all lenders offer 600 credit score loans. This is especially true if you’re hoping to borrow a lot of money, such as a $75,000 personal loan, as a lower credit score may limit how much you can borrow.

Additionally, you may not get the best interest rates with a credit score at or near 600. Lenders generally reserve their best interest rates for people with good to excellent credit. You can add a cosigner with good credit to your loan application if necessary, which can increase your chances of approval and help you qualify for better rates than you would on your own.

What does it mean to have a 600 credit score?

Your credit score can be calculated using one of many different scoring models. The most popular model, FICO, has a typical score range of 300 to 850.

Having a FICO credit score of 600 means that you fall in the fair score range. This isn’t a terrible credit score, per se, but it is considered below average.

Where to get a personal loan with a 600 credit score

If you’re looking for a 600 credit score loan, consider these nine Credible partner lenders:

Avant

Avant is available in all states except for Hawaii, Iowa, New York, Vermont, and West Virginia. The lender requires a minimum monthly income of $1,200.

Minimum credit score: 550
Loan terms: 2 to 5 years
Loan amount: $2,000 to $35,000
Fees: Origination fee of up to 4.75%; late fee of $25

Best Egg

Best Egg has no minimum income requirements but isn’t available in Iowa, Vermont, Washington, D.C., or West Virginia.

Minimum credit score: 600
Loan terms: 2 to 5 years
Loan amount: $2,000 to $50,000
Fees: Origination fee of 0.99% to 5.99%; late payment fee of $15

Happy Money

Happy Money, formerly Payoff, doesn’t have a minimum income requirement and is available in all states except Massachusetts, Nevada, and Ohio.

Minimum credit score: 600
Loan terms: 2 to 5 years
Loan amount: $5,000 to $50,000
Fees: Origination fee

LendingClub

LendingClub has no minimum income requirement and offers personal loans of up to $40,000 in all 50 states.

Minimum credit score: 600
Loan terms: 3 or 5 years
Loan amount: $1,000 to $40,000
Fees: Origination fee of 2% to 6%; late fee of $15 or 5% of overdue monthly payment

LendingPoint

LendingPoint loans are available in all states except Nevada and West Virginia. The lender requires a minimum annual income of $20,000, and offers funding as soon as the next business day.

Minimum credit score: 580
Loan terms: 2 to 4 years
Loan amount: $2,000 to $36,500
Fees: Origination fee

OneMain Financial

OneMain Financial doesn’t have a minimum credit score requirement and can fund loans as soon as the same day, though a visit to a branch office is usually required.

Minimum credit score: None
Loan terms: 2 to 5 years
Loan amount: $1,500 to $20,000
Fees: Origination fee

Universal Credit

Universal Credit offers loans in most states; its loans aren’t available in South Carolina, Washington, D.C., or West Virginia.

Minimum credit score: 560
Loan terms: 3 to 5 years
Loan amount: $1,000 to $50,000
Fees: Origination fee

Upgrade

Upgrade offers personal loans of up to $50,000 and is available in all states except West Virginia.

Minimum credit score: 560
Loan terms: 2 to 6 years
Loan amount: $1,000 to $50,000
Fees: Origination fee of 2.9% to 8%

Upstart

Upstart provides personal loans as low as $1,000 and is available in all 50 states. The lender does require a minimum income of $12,000.

Minimum credit score: 580
Loan terms: 3 to 5 years
Loan amount: $1,000 to $50,000
Fees: Origination fee and other fees from 0% to 10%; late fee of 5% of the past due balance or $15, whichever is greater; ACH return or check refund fee of $15

Compare personal loan rates from these and other lenders with Credible — without affecting your credit score.

How to get a personal loan with a 600 credit score

Interested in applying for a fair credit personal loan? Here’s how:

1. Determine where you stand, credit-wise. Take some time to check your credit history. This allows you to spot and correct any inaccuracies, and tells you where you’ll stand once potential lenders run a credit check. You can get a free credit report from each of the three major credit bureaus — Equifax, Experian, and TransUnion — each year by visiting AnnualCreditReport.com.

2. Compare lenders. Each lender has different loan eligibility requirements. Comparison shopping can help you determine which lenders offer the best loan options. Comparing lenders can also tell you what your lowest possible APR will be. Narrow down the options that suit you best.

3. Choose your terms. Once you’ve seen which lenders and loan options are available to you, it’s time to pick your loan. This involves comparing the various interest rates, maximum loan amounts, repayment terms, and potential fees to see which one works best for your situation. You can also pick a particular loan based on the monthly payment amount.

4. Finalize your application. You know what you need and which lender is the right pick; now it’s time to finish the loan application process. You’ll need to fill out and submit that lender’s complete application and provide certain financial documentation to support your application, such as bank statements or previous tax returns.

5. Get funded. After your loan has been submitted and approved, the only thing left is funding. Each lender has its own timeline, so you could receive funds as soon as the next business day or within a week. Once you finish signing for your loan, the lender will disburse your funds, often through direct deposit to your bank account.

Personal loan rates for fair credit

The lower your credit score and the greater the risk you represent to a lender, the higher you can expect your interest rate to be. And a higher interest rate will cost you more money over the life of your loan.

Personal loan rates can vary wildly from one borrower to the next, depending on the loan amount, repayment term, and your credit score. A borrower with fair credit may be offered an APR of 19.5%, for example, while a borrower with good credit may be offered an APR of 12.5%. On a $10,000 personal loan with a three-year repayment term, those rates would mean the difference between $3,287 and $2,043 in interest, respectively.

Personal loan fees to know

You may encounter a few potential fees when taking out a personal loan:

Origination fee — This is a one-time cost the lender charges up front when your loan is processed. It may also be referred to as an underwriting fee.
Late fee — If you make late payments on your personal loan after the scheduled due date, you may be charged a late fee, which typically costs between $25 and $45. Not paying your bill on time can also negatively affect your credit score.
Prepayment penalty — Some lenders may charge you a prepayment penalty fee if you repay your loan ahead of schedule.

If you have good or excellent credit, lenders might waive some of these fees. But if you have fair or poor credit, you’ll likely pay these personal loan fees, if applicable.

If you’re ready to apply for a personal loan, visit Credible to quickly and easily compare personal loan rates from various lenders.

How to raise your credit score

A higher credit score can make it easier to get approved for the various financial products you want, such as a personal loan. It can also help you qualify for a better loan term and lower interest rates, which can save you money over the life of your loan.

While there’s no minimum credit score requirement across the board, having the highest score you can is in your best interest. You should aim to have a credit score of at least 640 to 660 (if not higher) if you want a better chance of getting approved.

If your credit score is lower than you’d like, here are some ways to improve it:

Check your credit report for errors. The easiest and fastest way to boost your credit score is to remove any errors that might be bringing your score down. Check your reports carefully, looking for any mistakes, erroneous accounts, or negative reports that aren’t correct. Dispute them with the credit-reporting agencies, along with any evidence you may have to support your request.
Pay off existing debt. If you have too much existing debt, potential lenders may see you as a higher risk. This is especially true if you have accounts with a high credit utilization, such as a maxed out credit card. Consider paying off some of your existing debt to boost your score and improve your chances of approval with new lenders.
Make payments on time, every time. Your payment history is the biggest factor that makes up your credit score. Make sure that your monthly payments are always on time to help build a positive credit history and boost your score.