Finding Personal Loans with a Credit Score Below 670: Your Complete Guide

In today’s financial landscape, having a credit score below 670 doesn’t mean you’re out of options when it comes to securing a personal loan. Many Americans find themselves in this credit range, yet still need access to funds for emergencies, debt consolidation, or major purchases. The good news? Several reputable lenders specialize in working with borrowers in the fair or average credit range.

Understanding Credit Scores and Personal Loan Eligibility

When you’re shopping for personal loans with a credit score below 670, it’s important to understand how lenders view your creditworthiness. According to the FICO model, scores between 580-669 are considered “fair,” while VantageScore considers anything below 660 to be in this category.

Having a sub-670 score doesn’t make you a bad borrower – it simply means lenders may view you as carrying slightly more risk. This typically translates to higher interest rates rather than outright rejection.

What impacts your credit score?

Payment history (35% of your FICO score)
Credit utilization (30%)
Length of credit history (15%)
New credit inquiries (10%)
Credit mix (10%)

Top Personal Loan Options for Credit Scores Below 670

Finding the right lender when your credit isn’t perfect requires understanding which companies specialize in this market segment. Here are some of the best options for borrowers with credit scores below 670:

1. Upstart: Best for Limited or No Credit History

Upstart stands out for its innovative approach to lending. Rather than focusing solely on credit scores, Upstart uses artificial intelligence and alternative data points to evaluate borrowers.

Key features:

Accepts borrowers with scores as low as 300
Will consider applicants with insufficient credit history
Loan amounts from $1,000 to $50,000
APRs range from 6.7% to 35.99%
Loan terms of 36 or 60 months
Quick funding – often by next business day

Upstart’s AI-driven approach makes it particularly valuable for borrowers who might have limited credit history but strong income or education credentials. According to a Consumer Financial Protection Bureau study, lenders using alternative data points can approve 27% more applicants than those using traditional credit scoring alone.

2. Upgrade: Best for Smaller Loan Amounts

If you need a modest loan amount and have a credit score in the fair range, Upgrade provides an accessible option with reasonable terms.

Key features:

Minimum credit score requirement of 600
Loan amounts starting at just $1,000 (up to $50,000)
APRs from 7.74% to 35.99%
Loan terms from 24 to 84 months
Fast funding within one business day in many cases
No early payoff penalties

Upgrade’s low minimum loan amount makes it ideal for borrowers who need smaller sums and don’t want to overextend themselves. The longer available terms also allow for more manageable monthly payments.

3. OneMain Financial: Best for Flexible Terms and Secured Options

OneMain Financial is one of the most established lenders for borrowers with fair credit, offering both unsecured and secured loan options.

Key features:

No minimum credit score requirement (focuses on overall financial picture)
Loan amounts from $1,500 to $20,000
APRs from 18.00% to 35.99%
Loan terms from 24 to 60 months
Option to secure your loan with collateral for potentially lower rates
Over 1,300 physical branches for in-person service

OneMain’s flexibility makes it particularly valuable for borrowers with credit challenges. The option to use collateral (like a vehicle) can help secure better terms, and their personalized approach considers factors beyond just credit scores.

4. Avant: Best for Quick Funding

When time is of the essence, Avant offers rapid funding for borrowers with credit scores below 670.

Key features:

Accepts credit scores as low as 580
Loan amounts from $2,000 to $35,000
APRs from 9.95% to 35.99%
Loan terms from 24 to 60 months
Funding as soon as the next business day
10-day grace period for late payments

Avant’s streamlined application process and quick funding make it ideal for emergency expenses when you can’t afford to wait.

5. FastLendGo: Emerging Option for Fair Credit Borrowers

FastLendGo offers personalized loan solutions for borrowers with credit scores in the fair range, focusing on individual financial situations rather than strict credit thresholds.

Key features:

Considers borrowers with credit scores of 620 and above
Competitive rates compared to other fair-credit lenders
Simple online application process
Quick decision timeframes
Transparent fee structure

Comparing Personal Loan Options for Credit Scores Below 670

When evaluating your options, consider these key factors that will affect your overall loan experience:

Lender	Min. Credit Score	APR Range	Loan Amounts	Special Features
Upstart	300	6.7% – 35.99%	$1,000 – $50,000	AI-powered underwriting, accepts no credit history
Upgrade	600	7.74% – 35.99%	$1,000 – $50,000	Low minimum loan amount, longer terms available
OneMain Financial	None specified	18.00% – 35.99%	$1,500 – $20,000	Secured loan options, physical branches
Avant	580	9.95% – 35.99%	$2,000 – $35,000	Next-day funding, late payment grace period
FastLendGo	620	Varies	Varies	Personalized approach, transparent terms

Understanding Loan Terms and Costs for Fair Credit Borrowers

When your credit score is below 670, it’s particularly important to understand the terms and potential costs of your personal loan:

Interest Rates and APR

With fair credit, you can expect APRs between 9% and 36%. The exact rate depends on:

Your specific credit score
Income and debt-to-income ratio
Loan amount and term
Whether the loan is secured or unsecured

Origination Fees

Many lenders that work with fair credit borrowers charge origination fees, typically 1-10% of the loan amount. This fee is usually deducted from your loan proceeds before disbursement.

Example of how origination fees affect your loan:

Loan Amount	Origination Fee	Amount Received
$10,000	3% ($300)	$9,700
$10,000	5% ($500)	$9,500
$10,000	8% ($800)	$9,200

Other Potential Fees

Be aware of these additional fees that might apply:

Late payment fees (typically 15−30 or a percentage of the payment)
Returned payment fees
Check processing fees
Prepayment penalties (though most modern lenders don’t charge these)

Strategies to Improve Approval Odds with a Credit Score Below 670

If you’re concerned about qualifying with a credit score below 670, consider these strategies to strengthen your application:

1. Apply with a Co-Applicant or Co-Signer

Adding a co-applicant with stronger credit can significantly improve your approval odds and potentially secure better rates. Lenders like SoFi specifically allow for co-applicants on their personal loans.

2. Consider Secured Loan Options

Offering collateral (like a vehicle or savings account) can reduce the lender’s risk and improve your chances of approval. OneMain Financial specializes in these types of arrangements.

3. Demonstrate Strong Income and Employment

Stable employment and sufficient income can offset credit concerns. Be prepared to provide:

Recent pay stubs
Tax returns
Bank statements
Employment verification

4. Reduce Your Debt-to-Income Ratio

Before applying, try to pay down existing debts to improve your debt-to-income ratio (DTI). Most lenders prefer a DTI below 40%.

5. Check for Pre-Qualification

Many lenders offer pre-qualification with a soft credit check, allowing you to see potential rates without impacting your credit score.

Common Questions About Getting a Personal Loan with a Credit Score Below 670

What’s the minimum credit score needed for a personal loan?

While some lenders advertise minimum scores as low as 300 (Upstart) or 580 (Avant), a score of 620 or higher will give you access to more options and better rates. According to CNBC Select, borrowers with scores below 620 are often considered “subprime” and face more limited options.

How much can I borrow with a credit score below 670?

Loan amounts typically range from $1,000 to $50,000 for borrowers with fair credit. Your specific approval amount will depend on your income, existing debt, and the lender’s policies.

Will applying for a personal loan hurt my credit score?

When you formally apply for a loan, the lender will perform a hard credit inquiry, which typically lowers your score by 5-10 points temporarily. However, many lenders offer pre-qualification with only a soft inquiry, which doesn’t affect your score.

Can I get a personal loan with a 620 credit score?

Yes, a 620 credit score puts you in the fair credit category, making you eligible for many personal loan options, including those from Upgrade, Avant, and FastLendGo. While your rates may be higher than those offered to borrowers with good or excellent credit, you should still have multiple lenders willing to work with you.

How can I improve my chances of approval?

Apply with a co-signer or co-applicant
Offer collateral (secured loan)
Demonstrate stable income
Lower your debt-to-income ratio
Consider a smaller loan amount
Address any errors on your credit report

How to Apply for a Personal Loan with a Credit Score Below 670

Step 1: Check Your Credit Report

Before applying, review your credit reports from all three bureaus to identify and address any errors. You can get free weekly reports through AnnualCreditReport.com.

Step 2: Research and Compare Lenders

Focus on lenders known to work with fair credit borrowers. Compare:

Interest rates and APRs
Fees (especially origination fees)
Loan terms and amounts
Funding speed
Customer reviews

Step 3: Get Pre-Qualified

Use pre-qualification tools to see your potential rates without a hard credit check. This allows you to compare offers without impacting your credit score.

Step 4: Gather Documentation

Prepare common required documents:

Government-issued ID
Proof of income (pay stubs, tax returns)
Proof of residence (utility bills, lease agreement)
Bank account information
Social Security Number

Step 5: Complete the Full Application

Once you’ve selected a lender, complete the formal application. Be thorough and accurate to avoid delays.

Step 6: Accept the Loan and Receive Funds

Review the final loan terms carefully before accepting. Once approved, funding times range from one business day to a week, depending on the lender.

Building Your Credit While Repaying Your Loan

A personal loan can actually help improve your credit score if managed responsibly. Here’s how to maximize the positive impact:

1. Set Up Automatic Payments

Never miss a payment by setting up autopay. On-time payments are the single biggest factor in your credit score.

2. Pay More Than the Minimum When Possible

Making extra payments reduces interest costs and helps you build a positive payment history faster.

3. Monitor Your Credit Score

Track your progress with free credit monitoring services. Many lenders (including Upgrade) offer free credit score access.

4. Don’t Take on Additional Debt

Avoid accumulating new debt while repaying your personal loan, as this can strain your finances and potentially lead to missed payments.

Final Thoughts on Personal Loans for Credit Scores Below 670

Having a credit score below 670 doesn’t mean you can’t access personal loans – it simply means you need to be more strategic in your approach. By understanding your options, comparing offers carefully, and presenting the strongest possible application, you can secure the funding you need at terms you can manage.

Remember that responsible use of a personal loan can be a stepping stone to better credit and improved financial options in the future. With each on-time payment, you’re building a positive credit history that will serve you well for years to come.

Whether you’re consolidating debt, handling an emergency, or financing a major purchase, lenders like Upstart, Upgrade, OneMain Financial, Avant, and FastLendGo provide viable pathways to personal loans for borrowers with credit scores below 670.

Your journey from fair credit to better financial standing starts here. Take the first step today by exploring your options and finding the right lender for your needs.