Key takeaways:
- A 600 credit score falls in the “fair” range.
- Some personal loan lenders approve fair credit borrowers while others don't.
- Finance companies tend to be more lenient than banks and credit unions.
- You need to prepare, shop around, and compare quotes to find the best deal.
A 600 credit score falls in the “fair” category and is considered below average for U.S. consumers, according to FICO.
You may find it more difficult to get approved for a personal loan if you have a 600 score — especially if you apply with banks and credit unions. However, some lenders will approve borrowers with fair, and even bad, credit.
Over the past two decades, finance companies specializing in online personal loans have gradually gained a significant market share by catering to borrowers with credit challenges.
In fact, Credible works with at least nine lenders that will consider applications with a 600 credit score. But since plenty of lenders won't, it's important to be strategic about the lender you choose and put your best foot forward. Here's how.
Advertiser DisclosureOverview
If you have fair credit (a FICO score between 580 and 669), 60 Month Loans is one of a few personal loan lenders that may consider your application. Plus, the company doesn’t conduct a hard credit check. That means, unlike most other personal loan lenders, your credit score won’t take a hit if you apply for a 60 Month Loan. It should be pointed out that the company offers a range of repayment terms, from one year to five years.
However, the maximum loan amount is low relative to other lenders, some of which offer loans up to $50,000 or more. And APRs start high, making the company a poor choice for applicants with excellent credit. Check your state for availability, as loans aren’t available nationwide.
pros
- No hard credit inquiry when applying
- Open to borrowers with fair credit
- Excellent customer reviews
- Funding as soon as the next business day
- Low minimum loan amount
cons
- Relatively high starting APRs
- Only available in 15 states
- Doesn't allow co-signers
- No mobile app
Loan amount
$1,000 - $10,000 (up to $7,000 for first time borrowers)
Eligibility
Available in all states except AK, AR, AZ, CO, CT, DC, FL, GU, HI, IL, IN, KS, LA, MA, ME, MD, MI, MN, MS, NE, NV, NJ, NY, NC, MP, OH, OK, PA, PR, RI, TN, TX, TT, VT, VI, WA, WV, WI, WY
Loan uses
Debt consolidation, home repair, emergency expenses, medical expenses
Overview
Reprise may be an excellent option if you need a loan with bad credit. The lender says it will consider applicants with FICO scores as low as 560, and offers secured loans as well as some cosigned loans to help you qualify. Loan funds can be available the next business day once you’re approved. Plus, the company has a 4.7 Trustpilot rating — indicating generally satisfied customers.
But Reprise is not for everyone. Available loan amounts are relatively low at $25,000, and the minimum repayment term is relatively high at three years. The lender also charges origination fees, does not offer discounts, does not consider income from self-employment, and is not available nationwide.
pros
- Loans for bad credit
- 4.7 Trustpilot rating
- Secured loans available
- Cosigners considered
- Next-day funding available
- Easy to contact
cons
- Does not accept self-employment income
- Minimum 3-year loan term
- Relatively low maximum loan amount ($25,000)
- Origination fees up to 6%
- Not available nationwide
- No mobile app
- No discounts for autopay or direct pay
Fees
$15 late fee except where the state has a different limit (ie. NM), return payment Fees - $20 except where state has a different limit (ie – NM), and no prepayment penalty
Eligibility
Unavailable in CO, CT, HI, IA, ME, MD, MA, NV, NJ, NY, SD, VT, WA, and WV
Min. income
Sufficient disposal income
Time to get funds
1-7 business days depending on loan security type
Loan uses
Credit card refinancing, debt consolidation, emergencies, major purchases, medical and dental expenses, moving expenses, special occasions, unexpected expenses, vacation and travel
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
- Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
Upstart has one of the lowest available APRs of all Credible partner lenders and non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
- May fund in 1 business day
- No minimum credit score requirement on lender site
- Low minimum APR
- Trustpilot score of 4.9/5 stars
cons
- May charge a high origination fee
- No discounts offered
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
Zable offers relatively small loan amounts — ranging from $1,000 to $35,000 — that can be deposited in your account as soon as the same day you are approved, if it is by the lender's deadline. It’s an option for fair-credit borrowers, with a minimum credit score of 600, as well as those with lower incomes.
Its origination fees range from 5% to 9%, however, and it does not offer discounts, secured loans, nor the option to add a cosigner to your application. Zable also currently does not offer loans in 21 states.
pros
- Funding as soon as the same day
- Low minimum income required
- 100% digital process
cons
- No discounts
- Maximum loan amount is lower than most other lenders
- Origination fee
- Not available in CO, CT, IA, IN, KS, LA, MD, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, WY, NC, FL
Fees
Origination fees (5% to 9%)
Eligibility
Not available in CO, CT, IA, IN, KS, LA, MD, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, WY, NC, FL
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchase, car financing
Overview
If you have fair credit (a FICO score between 580 and 669), 60 Month Loans is one of a few personal loan lenders that may consider your application. Plus, the company doesn’t conduct a hard credit check. That means, unlike most other personal loan lenders, your credit score won’t take a hit if you apply for a 60 Month Loan. It should be pointed out that the company offers a range of repayment terms, from one year to five years.
However, the maximum loan amount is low relative to other lenders, some of which offer loans up to $50,000 or more. And APRs start high, making the company a poor choice for applicants with excellent credit. Check your state for availability, as loans aren’t available nationwide.
pros
- No hard credit inquiry when applying
- Open to borrowers with fair credit
- Excellent customer reviews
- Funding as soon as the next business day
- Low minimum loan amount
cons
- Relatively high starting APRs
- Only available in 15 states
- Doesn't allow co-signers
- No mobile app
Loan amount
$1,000 - $10,000 (up to $7,000 for first time borrowers)
Eligibility
Available in all states except AK, AR, AZ, CO, CT, DC, FL, GU, HI, IL, IN, KS, LA, MA, ME, MD, MI, MN, MS, NE, NV, NJ, NY, NC, MP, OH, OK, PA, PR, RI, TN, TX, TT, VT, VI, WA, WV, WI, WY
Loan uses
Debt consolidation, home repair, emergency expenses, medical expenses
Overview
Reprise may be an excellent option if you need a loan with bad credit. The lender says it will consider applicants with FICO scores as low as 560, and offers secured loans as well as some cosigned loans to help you qualify. Loan funds can be available the next business day once you’re approved. Plus, the company has a 4.7 Trustpilot rating — indicating generally satisfied customers.
But Reprise is not for everyone. Available loan amounts are relatively low at $25,000, and the minimum repayment term is relatively high at three years. The lender also charges origination fees, does not offer discounts, does not consider income from self-employment, and is not available nationwide.
pros
- Loans for bad credit
- 4.7 Trustpilot rating
- Secured loans available
- Cosigners considered
- Next-day funding available
- Easy to contact
cons
- Does not accept self-employment income
- Minimum 3-year loan term
- Relatively low maximum loan amount ($25,000)
- Origination fees up to 6%
- Not available nationwide
- No mobile app
- No discounts for autopay or direct pay
Fees
$15 late fee except where the state has a different limit (ie. NM), return payment Fees - $20 except where state has a different limit (ie – NM), and no prepayment penalty
Eligibility
Unavailable in CO, CT, HI, IA, ME, MD, MA, NV, NJ, NY, SD, VT, WA, and WV
Min. income
Sufficient disposal income
Time to get funds
1-7 business days depending on loan security type
Loan uses
Credit card refinancing, debt consolidation, emergencies, major purchases, medical and dental expenses, moving expenses, special occasions, unexpected expenses, vacation and travel
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
- Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
Upstart has one of the lowest available APRs of all Credible partner lenders and non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
- May fund in 1 business day
- No minimum credit score requirement on lender site
- Low minimum APR
- Trustpilot score of 4.9/5 stars
cons
- May charge a high origination fee
- No discounts offered
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
Zable offers relatively small loan amounts — ranging from $1,000 to $35,000 — that can be deposited in your account as soon as the same day you are approved, if it is by the lender's deadline. It’s an option for fair-credit borrowers, with a minimum credit score of 600, as well as those with lower incomes.
Its origination fees range from 5% to 9%, however, and it does not offer discounts, secured loans, nor the option to add a cosigner to your application. Zable also currently does not offer loans in 21 states.
pros
- Funding as soon as the same day
- Low minimum income required
- 100% digital process
cons
- No discounts
- Maximum loan amount is lower than most other lenders
- Origination fee
- Not available in CO, CT, IA, IN, KS, LA, MD, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, WY, NC, FL
Fees
Origination fees (5% to 9%)
Eligibility
Not available in CO, CT, IA, IN, KS, LA, MD, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, WY, NC, FL
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchase, car financing
1. Confirm your 600 credit score
Before applying for a loan, take stock of your credit situation. Start by checking your credit reports with the three main credit bureaus: Experian, Equifax, and TransUnion. You can get free weekly reports from all three at AnnualCreditReport.com. If you find a mistake, file a dispute with the bureau providing the information.
Next, check your credit scores. FICO is the main credit scoring model in the U.S., but VantageScore is gaining popularity. Lenders may check either score tied to any of the three credit reporting bureaus, so it's good to check them all. While some companies charge you to view your credit scores, others like these include credit scores for free with their memberships:
- Experian offers free FICO scores from Experian
- MyFico offers free FICO scores from Equifax
- Discover offers free FICO scores from TransUnion
- OneMain Financial offers free VantageScores from Experian
- Equifax offers free VantageScores from Equifax
- Credible offers free VantageScores from TransUnion
Tip:
Check with your bank, credit card company, lender, or other financial service providers. You may already have access to one or more of your credit scores.
The next step is to figure out how much you need to borrow. Brainstorm how you plan to use the personal loan and estimate the costs.
For example, if you plan to pay off two credit cards and a medical bill, look up the outstanding balances and add them together. Borrowing too little can leave you unable to accomplish your goal while borrowing too much can lead to unnecessary debt and borrowing costs.
3. Review your budget for the monthly payment
Personal loans require you to repay the amount you borrow through fixed payments over a set number of months. Before applying, review your budget to see how much discretionary income you have and how much you're willing to put toward a monthly loan payment.
Identify your target monthly payment as well as the maximum you're willing to pay per month. Having these numbers on hand can prevent you from overcommitting as you shop for a loan.
Tip:
If you’re getting a 600 credit score loan to consolidate debt, budget for a monthly payment that’s less than or equal to what you’re currently paying on those debts.
Related: How Does Debt Consolidation Work?
4. Gather important documents
Personal loan lenders typically require a few documents during the application process, including:
- Proof of identity: A copy of your driver's license or Social Security card
- Proof of income: Pay stubs, W-2s and 1099s, tax returns, or bank statements
- Proof of residence: Utility bill, rental agreement, mortgage statement, home or auto insurance, bank or credit card statement, voter registration card, or property tax receipt
You can avoid delays during the loan origination process by getting these ready in advance.
Check Out: What Are the Requirements for a Personal Loan?
5. Research lenders
Now you're ready to start shopping around. As you do, it's important to know that personal loan lenders vary greatly in their loan offerings and eligibility requirements.
“If someone has a credit score of 600, they should look for lenders who specifically work with those who have 'fair' credit. They are most likely to offer fair terms and agreements,” says Ryan Duitch, CEO of Arro Finance, a credit card for people with low or no credit scores.
You can find good fits by checking the eligibility requirements of lenders to see if they mention a minimum credit score or use terms like “helping underserved communities.”
Fair credit lenders also tend to have lower maximum loan limits and higher maximum APRs (around 36%) than lenders that target borrowers with higher credit scores. Additionally, fair-credit lenders tend to be financial companies and fintechs, rather than banks and credit unions.
“Be careful with lenders that advertise 'bad credit' loans. Sometimes, less trustworthy companies target borrowers with lower scores,” says Joseph Camberato, CEO of National Business Capital. Make sure the loan's APR is clearly displayed and pass on a lender that employs pressure tactics.
The goal in this step is to make a list of at least three lenders that look like they could be a good fit for your situation. For example, if you have a 600 credit score and are looking for a $10,000 loan, Upstart could be a good lender to add to your list. It considers applicants with credit scores below 600 and offers loan amounts from $1,000 to $50,000.
6. Get prequalified
Once you have a shortlist of at least three lenders, visit each lender's website and go through the prequalification process or use a personal loans marketplace to prequalify with multiple lenders at once. Most lenders allow you to check if you prequalify within a few minutes without hurting your credit.
During the process, lenders will collect basic information about you, the loan you want, and your credit (through a soft credit check). If you prequalify, the lender will present you with an estimate of the loan you may get.
Important:
Once you move forward with a prequalification quote and apply, most lenders will conduct a hard credit check, which could lower your credit score by a few points for up to one year.
If you're struggling to prequalify, consider reducing your debt-to-income ratio (DTI) by paying down balances. High balances could be contributing to a high debt-to-income ratio. If you can pay some balances down or off, you could lower your current monthly payments and may have an easier time getting approved for a new loan.
7. Compare quotes
To find a competitive deal, compare the quotes you received side by side. Look at APRs, origination fees, monthly payments, total interest costs, repayment terms, and loan amounts.
Rates are a good place to start, but make sure you can afford the monthly payment — a higher rate on a longer-term loan might actually have a lower monthly payment. “Being able to repay your loan is crucial in keeping your credit score healthy,” says Duitch.
Use a personal loan calculator to test out different interest rate, loan amount, and repayment term combinations. Consider making a chart like the one below so you can see the pros and cons of different loans at a glance.
Example comparison of personal loan quotes
Target loan amount: $5,000
Target monthly payment amount: $200
Maximum monthly payment limit: $225
In this scenario, the first quote has the lowest overall cost and APR but doesn't provide a large enough loan amount. Quote three has the lowest monthly payment but the overall cost is significantly higher than the other options.
Quote two looks to be the best route. While the monthly payment is a bit over the target, it's under the maximum limit and provides the desired loan amount with a competitive overall cost.
Good to know:
A longer repayment period can lower monthly payments but increase overall loan and interest costs.
Check Out: How To Compare Personal Loans
8. Select a lender and apply
Once you find the best loan for your situation, go back to the lender's website or loan marketplace and accept the quote. From there, you'll complete the full loan application.
Lenders will dig deeper into your income, expenses, employment, and credit as part of their underwriting process. Most perform a hard credit inquiry at this stage that may cause your credit score to drop by up to five points. Keep in mind that the interest rate and terms of the loan offer could be different from the prequalified quote.
Learn More: Does Applying for a Loan Hurt Your Credit Score?
9. Submit the necessary documents
As the lender reviews your application, it may ask for documentation to confirm your income and housing status. However, the process for submissions can vary by lender.
Some may ask you to send pictures or scans of hard documents, while others may offer more advanced features like bank syncing. The bottom line is lenders will need to do their due diligence to ensure everything you've submitted is accurate.
10. Accept the loan and start making payments
If all goes well and you're approved for the loan, the lender should send you a loan contract to review and sign. In many cases, contracts are electronic and sent through secure portals.
Once you receive it, review the terms carefully to ensure everything works for you. If it does, sign and submit it. The lender will then send the loan funds to you and your repayment schedule will begin.
Related: How Long Does It Take To Get a Personal Loan?
How to raise your credit score
If you shop around but don't find a suitable personal loan or are denied a personal loan, work on improving your credit score. Here are some steps you can take:
- Make timely payments: Make all of your credit payments on time. Payment history accounts for 35% of your FICO credit score, the largest factor. Late payments count against you and stay on your record for 7 years.
- Keep credit utilization low: If you have revolving credit lines like credit cards, keep the balances as low as possible. Aim for no greater than 30% credit utilization. Credit utilization is a component of the “amounts owed” factor, which makes up 30% of your credit score.
- Limit new credit: Be mindful about the credit accounts you open, as they typically require hard credit inquiries and shorten your average credit account age, both of which can hurt your score. New credit and length of credit history contribute 10% and 15% to your score, respectively.
- Add bills to your credit report: Experian Boost is one example of a free program that lets you add bills and rent payments to your Experian credit report. You can self-report rent payments for free to all 3 credit bureaus with a service like Self. Research these and other rent- and bill-reporting services to find the best for you.
- Check for drop-off dates: If you have negative marks, check the dates they'll drop off your reports. Most items only stay on credit reports for 7 years. If negative marks are going to drop off soon, score improvements will likely follow.
- Become an authorized user: If you have a close friend or family member willing to make you an authorized user on their credit card, you could see a boost in your own score within a month — as long as they make on-time monthly payments and maintain a low or zero balance. High balances and late payment activity on their part could impact your credit report and score.
Camberato recommends you start by trying to figure out what's pulling your score down. “Is it high balances, missed payments, or something else? This will give you a clear starting point.” He adds that you often can't improve your credit score overnight, but if you stick with it, you'll see real progress over time.
FAQ
Is 600 a good credit score?
Open
A 600 credit score falls into the lower end of the “fair” category, which ranges from 580 to 669 in the FICO credit scoring model. It's better than “poor” but is not considered “good.”
Can you get a personal loan with a 600 credit score?
Open
You may be able to get a personal loan with a 600 credit score from lenders that cater to fair-credit borrowers. To improve your odds, find lenders that have a minimum credit score requirement lower than or equal to your score.
Some lenders, like Upstart, use AI-assisted underwriting to make loans more available to borrowers with compromised credit and to underserved communities.
How much can I borrow with a 600 credit score?
Open
The loan amount you can borrow is based on a variety of factors including your credit score, your income, your DTI, the lender's loan limits, and more. The best way to estimate how much a lender will let you borrow is to request a quote.
Does a personal loan hurt your credit?
Open
Getting a personal loan can cause an initial drop in your credit score with subsequent gains if managed wisely. A hard inquiry for new credit, a new account on your report, and an increase in the amounts you owe could all bring your score down.
But if you use the loan to consolidate credit card debt, you could see quick and significant gains once those cards are paid off. And over time, the loan can help your score as you build a track record of on-time payments.
What are personal loans used for?
Open
The beauty of personal loans is that they can be used for a number of purposes, with a few exceptions. But not all lenders will approve all loan purposes.
You'll need to specify what you want to use the loan for when you apply. Some common uses include funding home renovations, emergency expenses, debt consolidation, moving expenses, weddings, funerals, and medical bills.
Meet the expert:
Jessica Walrack
Jessica Walrack is an experienced freelance writer who has spent more than 11 years in personal finance, with expertise on loans, insurance, banking, mortgages, credit cards, budgeting, and taxes. Her work has been published by CNN, CBS MoneyWatch, U.S. News & World Report, and USA Today.
