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Updated onOctober 07, 2023

Personal Loan with 650 Credit Score

7 Min  Read
Difficulty:moderate
Ann Bloomquist
Written by:Ann Schreiber
Seasoned Copywriter & Content Marketer
How Much Can I Borrow with a 650 Credit Score?
All content presented here and elsewhere is solely intended for informational purposes only. The reader is required to seek professional counsel before beginning any legal or financial endeavor.

A 650 credit score falls in what the credit bureaus and FICO consider the fair range. Though you can undoubtedly find a personal loan for fair credit, it will mean higher interest rates and less favorable terms than what you could get with a higher score. Unlike traditional bank loans, online lenders may have more lenient application requirements, making it easier for those with fair or bad credit to get approved. 

Highlights & Key Takeaways

  • Personal loans are available for consumers with a 650 credit score
  • A 650 credit score falls into the fair range
  • Personal loans for a 650 credit score may have a higher APR, an origination fee, and specific qualification requirements.
  • The average FICO score is 714, which is considered a good credit score

Where to Get a Personal Loan with a 650 Credit Score

If you've been searching online for personal loans fair credit, know that we've identified some of the best personal loans for fair credit. And though this list is undoubtedly handy, it is crucial to do some homework on what each lender offers before deciding where to apply. Remember that applying for loans from more than one lender can cause a hit to your credit score and make it harder for you to get approved.

Discover - Best for low fees

Discover personal loans
Pros
No minimum credit score requirement
Loan terms up to 84 months
No origination fees
Max of 24.99% APR
Cons
Can only borrow up to $35,000
Low borrowing limit
Loan options vary by state

Discover offers more than credit cards - they offer personal loans for fair credit too. The ideal applicant should have a minimum credit score of 660 and can borrow between $2,500 and $35,000 at an APR of 5.99% to 24.99%. Loans must be paid back within 36 to 84 months.

The secret to acquiring a small business loan that meets the needs of your business is to find a loan company that offers you acceptable interest rates and terms. In this article, our experts have outlined the pros and cons of the best small business loans currently on the market. Now, you simply have to decide which loan is right for your business, and apply. It’s that easy!

Try Discover

Rocket Loans - Best personal loan for same-day funding

Rocket Loans personal loans
Pros
Same-day funding available
Offers an autopay discount and helps ensure you don’t miss a payment
Competitive interest rates
Cons
Charges origination and late fees
Not available in all states
No option for joint borrowers or co-signers

To qualify for a Rocket Loan, applicants will need a minimum credit score of 640. Loan amounts fall between $2,000 and $45,000 and must be paid back within 36 - 60 months. The average APR ranges from 5.97% to 29.99%.

The secret to acquiring a small business loan that meets the needs of your business is to find a loan company that offers you acceptable interest rates and terms. In this article, our experts have outlined the pros and cons of the best small business loans currently on the market. Now, you simply have to decide which loan is right for your business, and apply. It’s that easy!

Try Rocket Loans

Figure - Best for restriction-free loans

Figure
Pros
Offers an autopay discount and helps ensure you don’t miss a payment
Very few restrictions on how the loan is used
Provides next-day funding
Cons
Charges an origination fee
Not available in all states
No option for joint borrowers or co-signers

Figure is a good choice for personal loans due to its strong user reviews and easy online application process. A minimum credit score of 600 is necessary to qualify, and you can borrow up to $50,000. Figure loans must be paid back within 36 to 60 months. The average APR ranges from 5.75% to 22.87%.

The secret to acquiring a small business loan that meets the needs of your business is to find a loan company that offers you acceptable interest rates and terms. In this article, our experts have outlined the pros and cons of the best small business loans currently on the market. Now, you simply have to decide which loan is right for your business, and apply. It’s that easy!

Try Figure

Oportun - Best for secured personal loans

Oportun
Pros
Secured loan options are available
Funds can be applied via direct deposit to your savings or checking account
Has physical branches for in-person customer service as needed
Cons
Higher APRs than some other personal loan options
Can only borrow up to $10,000
Loan options vary by state

Applicants must have a credit score of 580 or higher. Loan amounts can be as low as $300 or as high as $10,000 at an APR of up to 35.99%. Loans must be repaid within 24 to 60 months.

The secret to acquiring a small business loan that meets the needs of your business is to find a loan company that offers you acceptable interest rates and terms. In this article, our experts have outlined the pros and cons of the best small business loans currently on the market. Now, you simply have to decide which loan is right for your business, and apply. It’s that easy!

Try Oportun

One Main Financial - Best for borrowers who have been denied elsewhere

One Main Financial
Pros
Specializes in borrowers with bad credit
No minimum credit score requirement
Accepts collateral such as personal vehicles, watercraft, etc.
Cons
APR of up to 35.99%
Charges origination fees of approximately 10% of the loan amount or $500
Loan amounts are capped at $20,000

OneMain Financial offers personal loans ranging between $1,500 to $20,000 at an APR of 18% to 35.99%. Loan amounts can be as low as $300 and as high as $10,000. Repayment between 24 to 60 months from the date of the loan is required.

The secret to acquiring a small business loan that meets the needs of your business is to find a loan company that offers you acceptable interest rates and terms. In this article, our experts have outlined the pros and cons of the best small business loans currently on the market. Now, you simply have to decide which loan is right for your business, and apply. It’s that easy!

Try OneMain Financial

SoFi - Best for high borrowing limits

SoFi personal loans
Pros
No fees
Offers an autopay discount and helps ensure you don’t miss a payment
Offers a convenient mobile app where you can track the status of your loan and stay on top of your loan balance
Cons
Longer approval and funding times than other personal loan options
Not available in all states
May have a higher minimum credit score requirement

SoFi requires a minimum credit score of 680 to qualify and offers loans up to $100,000. Plus, you can pay back the loan over the course of 84 months. The average APR ranges from 6.99% to 21.78%.

If you qualify for a SoFi loan, you can get benefits, including access to education content and career coaching and the advantage of significantly higher borrowing limits than those offered by other lenders. With a sound credit score, you can lend up to $100,000.

Try SoFi

Upstart - Best personal loan for very low to no credit

Upstart
Pros
Upstart may approve loans for borrowers with credit scores as low as 300
Multiple loan options due to many lending partners
A wide range of loan amounts from $1,000 to $50,000
Cons
High APRs of up to 35.99%
Charges origination fees of approximately 7% of the loan amount

Upstart is a personal loan option for consumers with bad credit. A minimum credit score of 600 is required, and loan amounts range between $1,000 to $50,000. Upstart loans must be paid back within 36 to 60 months. Average APRs fall between 3.09% to 35.99%.

Upstart is a suitable option if you have no credit or bad credit. Borrowers with as little as 300 credit scores have better odds of securing a loan than they do with other lenders.

Try Upstart

Payoff - Best for consumers who need to pay off their credit cards

Payoff
Pros
Payoff may approve loans for borrowers with credit scores as low as 550
Low maximum APR of 24.99%
A wide range of loan terms for repayment (between 24 and 60 months)
Cons
Must pay off any delinquencies before applying
Charges origination fees of approximately 5% of the loan amount
Card is designed only for paying off higher-interest debt
The minimum loan amount is $5,000

These loans for bad credit require a minimum credit score of 640, and approved applicants can borrow between $5,000 and $40,000. Loans must be repaid within 24 to 60 months. APRs range between 5.99% - 24.99%.

The secret to acquiring a small business loan that meets the needs of your business is to find a loan company that offers you acceptable interest rates and terms. In this article, our experts have outlined the pros and cons of the best small business loans currently on the market. Now, you simply have to decide which loan is right for your business, and apply. It’s that easy!

Try Payoff

Types of Personal Loans for a 650 Credit Score

Several types of personal loans are available for consumers with a 650 credit score.

  • Unsecured loan - doesn’t require any collateral
  • Secured loan - backed by collateral (assets that you own)
  • Installment loans - a loan that you repay over time with regularly scheduled payments
  • Peer-to-peer loans - a loan obtained from another individual which doesn’t require a financial institution
  • Payday loans - a short-term, high-cost loan, generally for $500 or less, that must be repaid before your next payday 

 

How to Choose The Best Personal Loan with a 650 Credit Score

If you want to get a loan for a 650 credit score, here is what you should look for.

  • Loan features - pay attention to the loan terms, loan amounts, and loan use limitations.
  • Interest rates and fees - understand if there is an application origination fee and what interest rates they typically charge (never sign your loan agreement if you don’t understand the APR you will be responsible for).
  • Application process - find out if they will do a hard-pull or soft-pull on your credit (hard-pulls can impact your credit score) and how long it will take to fund the loan.
  • Qualification process - different lenders have different qualification criteria. Make sure you understand the requirements for a minimum credit score for a personal loan, income requirements if you will need a co-signer and any membership requirements.
  • Customer support - find out if they have a physical branch or reasonable customer support hours should you need help.
  • Online reviews - check Google or the lender's website for reviews from other customers.
  • Perks & bonuses - Look at payment flexibility, advertising transparency, and advanced technology to make it easy to find your balance and balance due at any time.

 

How to Get a Personal Loan with a 650 Credit Score

If you want to get a loan with fair credit, you should understand that all lenders have different steps involved in their process. But typically, the process looks as follows:

  • Research lenders that have the features you want
  • ​​Understand the lender’s minimum and maximum loan amount requirements so you know you can get the amount you need
  • Understand any fees that you might be charged such as origination fees, prepayment penalties, and the potential APR
  • Prequalify for loans, so you understand your options
  • Compare the loan amounts, fees, APRs, and repayment terms for any loans that are you pre-approved for  
  • Submit your application for the loan that will best fit your needs

 

How to Improve a Credit Score of 650

If you have a credit score of 650, the chances are that you are going to want to improve your credit. And you are probably wondering if your 650 credit score is good or bad. It is fair, and you will want to take steps to get your score closer to a good credit score.

Your FICO score may be 650 if you:

  • Have missed payments in the past
  • You typically have balances over 30% of your credit limit (this is called utilization)
  • You’ve applied for too many loans
  • You are young and haven’t yet developed a good credit history

To improve your 650 credit score to a good credit score, do the following:

  • Pay your bills on time
  • Keep your utilization under 30%
  • Pay attention to your credit score - many banks or credit card companies offer you the ability to check on your credit score periodically
  • Avoid taking on new debt if you don’t have to
  • Avoid having too many credit lines in the same bucket (the best strategy is to have a healthy mix of credit - perhaps a home loan, one or two credit cards, and an auto loan)

 

Alternatives to Personal Loans with a 650 Credit Score

If you are unable to get a personal loan, there are other creative options for you to pursue. Here are some of the best alternatives to personal loans with a 650 FICO score.

  • Borrow from family members or friends. Though some people feel this is a last resort, it’s often a great option if you are still working on building credit and know you have the means to pay them back.
  • Look for low-interest credit cards for consumers with poor credit. Using your credit card responsibly is an excellent strategy to help you improve your credit. Just be sure you are paying your bill on time, keep your balance to credit limit ratio under 30%, and pay at least the minimum due (if not more) each month.
  • Take out a loan against your mortgage. Home equity loans enable homeowners to borrow money by leveraging the equity they have built in their homes. Loan amounts are dispersed in one sum and can be paid back monthly.

 

Final Word

All in all, a personal loan with a 650 credit score is attainable, but you might not be able to get as good of terms as you would if your score was 700 or higher. If you need money, consider one of the options suggested above. However, at the same time, start following the recommendations to help improve your credit score. The better you pay your bill on time, pay attention to what you owe, and manage a decent mix of credit, the more your score will rise.

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About the Authors

Ann Bloomquist

Written by: Ann Schreiber

Seasoned Copywriter & Content Marketer
223 2,910

Ann have been a marketer and a content writer for over 20 years. She have worked for financial institutions such as FICO, Experian, and BlueChip Financial as a director of content and brand marketing.

More about me
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