Check your eligibility for a fair credit loan — without affecting your credit score.
If you’re looking for a fair credit personal loan, online lenders may be the answer. FICO, the most widely used credit scoring formula considers credit scores between 580-669 as fair. The good news is that fair credit loans are available online, with competitive APRs and repayment term. Plus, fair credit loans don’t require collateral.
With a no-collateral personal loan, you pay fixed-amount installments over a set period of time until the debt is completely repaid. It’s the best type of personal loan, allowing you to repay reasonable monthly payments or, repay the loan early with no prepayment penalty.
So, which lenders offer fair credit personal loans?
Upgrade is an online lender offering fair credit loans with fair rates. There may be other lenders offering loans for people with fair credit but the rates tend to be super high.
The difference with Upgrade is that APRs range from 7.99% and 35.89% . While these rates are slightly higher than prime rate borrowers, Upgrade considers borrowers with fair credit scores near-prime rate borrowers.
You get fair rates for fair credit.
Fair credit borrowers can expect to be offered personal loan amounts ranging from $1,000 up to $50,000.
Rarely can you find loan amounts up to $50,000 for fair credit borrowers, and at competitive rates. Upgrade offers loans to people who may have been turned down by banks but have the income to repay a personal loan.
Fair credit borrowers have an opportunity to get a fresh start on paying down and consolidating debt and building credit. Upgrade looks at more than just your credit score.
Read our review to learn about the pros and cons of fair credit loans from Upgrade as well as what you’ll need to qualify.
How does a fair credit loan from Upgrade work?
Upgrade gives borrowers access to money at fair rates by understanding your credit story and helping you grow financially stronger. With loan amounts ranging from $1,000 to $50,000 you have the option of using the money for a variety of needs. Fair credit loans can be offered because Upgrade looks at more than your credit score.
Factors like income and having $800 or more left over after paying bills each month can help determine loan approvals.
One of the best features in applying for a Upgrade personal loan is that you can check your eligibility without affecting your credit score.
Who is Upgrade?
Upgrade is a direct lender based in San Francisco, CA. Founded in 2016, Upgrade offers access to personal loans in 44 states (and Washington, DC). Upgrade is working to revolutionize access to consumer credit.
Build your credit.
Fair credit loans can help build your credit by adding a positive line of credit to your credit reports. Upgrade will report your monthly payments to the major credit bureaus. To improve credit, make sure you make all of your payments on time and never miss a payment. On-time payments will improve your credit scores over time.
100% online application and funding.
Application, loan documents and funding are completely processed online. As soon as you submit your application, you will receive an instant decision on your eligibility and the loan amount you qualify for. Once funded you can manage your account anytime online. Review your balance and make payments online at your convenience.
Choose your own terms.
Repay in fixed installments over time or pay off your loan anytime. It’s up to you.
Repay your loan early.
There is no penalty for repaying your loan early. Pay off the loan anytime without additional charges. Pay only the number of days you keep your loan, for example, if you pay off your loan in a month, you would only pay the finance charges accrued during the one-month period.
How to qualify for a loan with Upgrade?
Upgrade takes into account more than your credit score. They view a potential borrower’s ability to repay the loan based on current circumstances. While past credit history is important it’s not the only determinant.
Additionally, applicants should have the following:
- A credit score of at least 620
- An active checking account
- Must be 18+ years old.
- Must be a legal resident of the US.
- Upgrade requires applicants have $800 or more left over after paying bills each month.
- Personal information such as your Social Security Number and address.
- Monthly income from a job, self-employment or benefits like SSI, disability, unemployment check or retirement benefits.
- Financial information (such as information about your expenses like monthly rent or mortgage payment).
How long does it take to get loan funds?
The application process is quick, and you’ll know if you’ve been approved within minutes. If electronic funding is selected and your loan agreement is signed, submitted and approved, you could have funds in your bank account as quick as the next business day.
Loans for any reason.
The opportunities are endless: consolidate debt, vacation, fix things around your home, major purchase, moving expenses, tuition, holiday cash, wedding expenses, and much more. Get funds in your account by the next business day, though in some cases it can take several days.
It’s no secret that good credit borrowers get the lowest rates. Less than perfect borrowers often face much higher rates. With Upgrade, your creditworthiness is based on several factors, not just credit scores. Upgrade actually grades creditworthiness which means average or bad credit borrowers have an opportunity to get a fair rate.
Borrowers with a low credit score may actually earn a high grade and receive favorable loan terms. Most lenders only look at credit scores, giving borrowers little chance for fair rates and terms.
What are the APRs offered via Upgrade?
Upgrade offers a fixed APR personal loan product that ranges from 7.99% up to 35.99%. Your rate will depend on your credit scores, state you live in and how often you make a payment. As with most 620 credit score personal loans, Upgrade interest rates are slightly higher due to less than less perfect.
Does Upgrade charge an origination fee?
Yes, Upgrade charges a loan origination fee of 0% to 6% of the loan amount. Upgrade deducts the fee directly from your loan amount before depositing your money, so make sure you take this fee into account when deciding how much you need to borrow.
Does Upgrade charge a late fee?
Yes, Upgrade may charge borrowers a late payment fee.
Does Upgrade charge prepayment fees?
No, Upgrade does not charge prepayment fees. This means you will not have to pay additional fees if you decide to pay the loan off early.
How much can you borrow via Upgrade?
Loan amounts start at $1,000 and go up to $50,000.
What is the maximum loan term you can get with Upgrade?
Upgrade offers personal loans with terms ranging from 24 to 48 months. Having the option of longer terms allows borrowers to take on larger loan amounts while keeping monthly payments more affordable. However, the longer the term of your loan, the more interest you will pay.
Summary of Upgrade loan details.
- Minimum credit score: 620
- Minimum income: $12,000
- APR range: 7.99% – 35.99%
- Loan amount: $1,000 – $25,000
- Loan duration: 36 – 60 months
- Maximum debt-to-income ratio: 60%
Check your rate with no affect to your credit score.
What is the estimated funding time for a personal loan via Upgrade?
After loan approval and document validation, funds can be sent to your bank account as soon as the next business day.
Pros of using Upgrade
- Quick application process. If you’re in a hurry, Upgrade’s application only takes a few minutes to complete, and you’ll know if you’ve been approved shortly after.
- No prepayment penalty. Pay off your loan early, Upgrade doesn’t have a prepayment penalty. This means you can pay back your full loan amount at any time, which will reduce the total cost of interest you’ll pay.
- Apply with fair credit. The people at Upgrade know everyone does not have good credit. But emergencies happen to everyone, even people with fair credit. Upgrade looks at more than just credit scores to approve loans.
- Use your loan as you see fit. If you’ve been approved, use your loan funds for just about any purpose, whether you need a car repair or pay down debt.
Cons of using Upgrade
- Origination fees. Upgrade might charge you an origination fee of 1.5% to 6% depending on your state of residence and loan amount.
- Slightly higher rates. Any loan you qualify for with a less-than-stellar credit score is going to have higher rates, and Upgrade’s loans are no exception. Expect an interest rate around 15.49%–35.99%%.
What do customers say about Upgrade?
Upgrade received an average score of 9.6 out of 10 from reviewers on Trustpilot. Many customers cited the easy application and good customer service as reasons to go with the loan.