Get Personal Loans with 620 Credit Score: Top Lenders & Tips

Are you considering a personal loan but worried about your 620 credit score? Fret not, as there are plenty of lenders willing to work with fair-credit borrowers. In this guide, we’ll explore the ins and outs of personal loans for a 620 credit score, helping you make an informed decision and secure the best possible rates.

Understanding Your 620 Credit Score

A credit score of 620 is considered ‘fair’ or ‘limited’ by most lenders. While it’s not ideal, it’s far from disqualifying. To put things into perspective, here’s a breakdown of FICO score ranges:

Exceptional: 800-850
Very Good: 740-799
Good: 670-739
Fair: 580-669
Poor: 300-579

With a 620 score, you’re still eligible for personal loans, but you might face higher interest rates compared to borrowers with excellent or good credit. The key is to compare offers from multiple lenders and consider various factors beyond just the APR.

Top Lenders for Personal Loans with a 620 Credit Score

To help you get started, we’ve compiled a table comparing some of the best personal loan options for borrowers with a 620 credit score. Keep in mind that actual rates may vary based on factors like loan amount, term, and your individual financial situation.

Lender	Est. APR Range	Loan Amount	Min. Credit Score
Upgrade	7.99-35.99%	1K−50K	580
Best Egg	5.99-35.99%	2K−50K	600
LendingPoint	9.99-35.99%	2K−50K	660
OneMain Financial	18.00-35.99%	1.5K−20K	No minimum score specified
Avant	4.99-35.99%	2K−50K	600

Upgrade: Best Overall for Fair-Credit Borrowers

Upgrade offers some of the most competitive rates for fair-credit borrowers, with APRs starting as low as 7.99%. They also provide flexible loan terms (12 to 84 months) and fast funding (as soon as one business day). Upgrade allows co-applicants and secured loans, further increasing your chances of approval or a lower rate.

Best Egg: Ideal for Debt Consolidation

Best Egg is an excellent choice if you’re looking to consolidate debt with a fair credit score. They offer competitive rates, flexible terms (36 to 60 months), and the option to secure your loan using a vehicle or permanent home fixtures. Best Egg also provides direct payment to creditors, streamlining the debt consolidation process.

LendingPoint: Fast Funding for Fair-Credit Borrowers

LendingPoint is perfect if you need funds quickly. Their application process takes only minutes, and qualified applicants can receive approval in as little as five minutes. Loans are typically funded within 24 hours. While their rates may be slightly higher than other lenders on this list, LendingPoint’s speed makes up for it when time is of the essence.

OneMain Financial: Personalized Service for Fair-Credit Borrowers

OneMain Financial offers personalized service and flexible loan amounts (up to $20,000). They cater to borrowers with limited credit history or those seeking smaller loan amounts. However, their APRs tend to be higher compared to other lenders on this list.

Avant: Competitive Rates for Fair-Credit Borrowers

Avant offers competitive rates starting at 4.99%, with loan terms ranging from 2 to 5 years. They have a quick and easy application process, and funds can be disbursed as soon as the next business day. Avant also reports payments to major credit bureaus, helping borrowers build or improve their credit scores.

Factors to Consider When Comparing Personal Loans

When comparing personal loan offers, consider the following factors beyond just the APR:

Loan Amount and Term: Ensure the lender offers a suitable loan amount and term that fits your budget and needs.
Fees: Some lenders charge origination fees or other additional costs. Be mindful of these when comparing offers.
Autopay Discounts: Many lenders offer a discount (usually 0.25-0.5%) for setting up automatic payments. This can help lower your overall cost.
Customer Support: Consider the lender’s customer service, including availability and responsiveness.
Fund Disbursement: Check how quickly funds are disbursed once approved. Some lenders offer same-day or next-business-day funding.

Tips to Boost Your Chances of Qualifying for a Personal Loan with a 620 Credit Score

Here are some tips to improve your chances of qualifying for a personal loan with a 620 credit score:

Improve Your Credit Score: Before applying, take steps to boost your credit score by making on-time payments, keeping credit utilization low, and addressing any negative items on your report.
Secure the Loan: Adding collateral can make the loan less risky for the lender, potentially improving your approval odds or securing a lower rate.
Add a Co-applicant or Co-signer: Adding someone with better credit and a higher income can help you qualify for a lower rate or improve your chances of approval.
Consider Alternative Income Sources: Lenders may accept various income streams when verifying your ability to repay the loan, so be sure to account for all sources.

Alternatives to Personal Loans for Fair-Credit Borrowers

If personal loans seem too expensive with a 620 credit score, consider these alternatives:

Credit Cards: Some fair-credit credit cards offer rewards or cashback benefits, making them an attractive option for everyday purchases.
Buy Now, Pay Later (BNPL) Services: BNPL services like Afterpay or Klarna allow you to purchase items in installments without interest. However, they typically only perform soft credit checks and may not report payments to major credit bureaus.
Cash Advance Apps: Cash advance apps like Dave or Earnin offer small loans (usually up to $500) with minimal eligibility requirements. Repayments are typically due within 7-14 days.

A 620 credit score doesn’t have to hinder your personal loan prospects. By exploring offers from various lenders, considering multiple factors beyond just APR, and taking steps to improve your creditworthiness, you can secure a personal loan tailored to your needs. Don’t forget to compare alternatives and weigh the pros and cons before making a decision.

Now that you’re equipped with the knowledge needed to navigate personal loans with a 620 credit score, it’s time to take action. Compare offers from top lenders, consider various factors, and choose the option that best suits your financial situation. With responsible borrowing habits, you’ll be well on your way to improving your credit score and unlocking better loan terms in the future.