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A personal loan is an unsecured debt that you repay in installments with interest. These loans can help you cover large expenses or consolidate debt.
Many lenders offer personal loans for fair credit. These lenders may have fewer borrowing requirements and lower annual percentage rates than banks or credit unions.
Santander Bank
Santander Bank offers unsecured personal loans to people with good to excellent credit in some states. The lender provides competitive rates and fees, including no origination fee. It also offers online and in-person service. Its checking and savings accounts earn high interest rates, and the bank has a network of more than 2,000 branches and ATMs across the Northeast.
The lender also offers a mobile app to manage loan payments and contact customer service. Santander’s loan application requires the typical information about income, debt and employment, as well as a Social Security number and a bank account. Its underwriting department will perform a hard inquiry that could cause a temporary dip in your credit score.
Unlike some online lenders, Santander does not charge an origination fee, which is a percentage of the loan amount that is deducted from the total loan proceeds at disbursement. This makes Santander a good choice for borrowers who are consolidating debt and want to minimize upfront expenses. The lender also reports loan payments to the three major credit bureaus, so on-time repayment will help your credit. However, Santander does not offer a hardship program that allows borrowers to delay payments if they’re struggling financially. In addition, the bank does not accept applications for guarantor or co-signer loans. This could be a drawback for some borrowers.
Discover
Discover personal loans offer low rates for creditworthy borrowers. The lender has a high borrower satisfaction rating on LendingTree and $1000 loan provides repayment assistance options for struggling borrowers. It also has a mobile app and provides free credit score access for its customers.
Discover takes a holistic approach to reviewing applicants for loan eligibility, including debt-to-income ratio, employment and income verification. It uses a soft credit pull to prequalify borrowers, which doesn’t hurt their credit score. Borrowers can then apply online, over the phone or at a physical branch. Discover requires supporting documents such as pay stubs, bank statements and tax documents. If approved, borrowers can receive funds within a business day.
Discover’s minimum loan amount is $2,500, which is lower than some lenders. It also offers a flexible loan term and no prepayment penalty. Its repayment assistance services include deferment, short-term and long-term payment extensions. It also pays creditors directly for its debt consolidation loans, which can help borrowers keep their payments current and prevent them from defaulting on their debts. This lender doesn’t charge an origination fee and has customer service available seven days a week. However, its minimum credit score requirement and inability to provide a cosigner may limit its appeal for fair-credit borrowers.
American Express
American Express is a credit lender with an online personal loan product, offering loans up to $50,000. Applicants can use the funds to pay off debt, cover a major expense or for other reasons. The lender’s minimum credit score requirement is 660, but it also considers other factors when making approval decisions. American Express offers competitive interest rates and terms, and it doesn’t charge an origination fee or prepayment penalties. However, it’s important to shop around first because other lenders may offer lower rates and better loan terms.
American Express National Bank is a publicly traded financial services company that offers credit lending and network processing transaction services. Its products include credit cards, cash back rewards and personal loans. The company also has an extensive global network of ATMs and branches. It is a member of the Federal Deposit Insurance Corporation.
The company provides checking and savings accounts with competitive yields, as well as CDs with high interest rates. Its online banking service allows users to manage multiple financial accounts from one place. The bank doesn’t require an opening deposit or a minimum account balance and offers 24/7 customer support by phone. However, it has low consumer satisfaction ratings in the J.D. Power 2024 Direct Banking Satisfaction Study. In addition, it doesn’t have a mobile app or weekend customer service hours.
Wells Fargo
Wells Fargo is an established brick-and-mortar lender that offers unsecured personal loans for fair credit. It is a good option for those who need to borrow larger amounts of money, because it offers loan amounts up to $100,000. The bank also does not charge any origination fees or prepayment penalties. Additionally, it does not require borrowers to be existing bank account holders to qualify for a personal loan. Instead, it suggests that non-customers make an appointment at one of its 4,900 branches to talk with a credit specialist.
The company does a hard inquiry when you apply, so your credit score may dip slightly. Once you get prequalified, you will receive a list of potential loan offers. You can then choose which one makes sense for your budget. You should also know that the lender reports your loan payments to the three major credit bureaus, so missing or late payments will hurt your credit score.
You should also be aware that Wells Fargo only offers single-applicant personal loans. This means that you cannot use a co-signer or joint applicant on the loan, which can be helpful for debt consolidation purposes. Moreover, the lender does not send your loan funds directly to your creditors, which is a feature that some lenders offer for debt consolidation. In addition, the company has an F grade from the Better Business Bureau and a poor rating on Trustpilot.
