There are plenty of choices when coming to personal loans for people with average credit scores. The interest rate of the loans for borrowers in this group is expected to be higher but you should take it as a challenge for you to establish a good credit score. The following are the 3 best unsecured personal loans for people with average credit score.
1. Best Egg
Best Egg can extend personal loans to people with a FICO score as low as 660. They offer competitive interest rate from 5.99% if you have a good credit score. The maximum interest is capped at 29.99%. With Best Egg, you can apply for a loan of up to $35,000 and pay it off in installments in 3 – 5 years.
The origination fee which is around 0.99%-5.99% will be deducted from the loan amount. You should take into account the origination fee when deciding how much loan to apply. Best Egg charges a $15 late payment when the payment is submitted past the due date. It also charges a $15 returned fee for every bounced check. Best Egg allows customers to pay off the remaining balance early without incurring any extra charges.
2. Loan Moz
Loan Moz will help borrowers find personal loan applications from borrowers with credit score as low as 600. You can apply a maximum loan of up to $40K if you have the income to pay back. You can choose to repay the loan in 2 – 5 years. Many people who are tired of having to make repayment to multiple credit cards obtain a Lending Club personal loan to consolidate their credit card debts.
To apply a loan from Loan Moz, you can use their loan qualification engine to find the appropriate loan offer for your credit scores. Based on the soft inquiry, you will receive a risk grade from G5 – A1 which is used to determine the interest rate you are charged. The investors will decide whether they want to bid on your loan. If there are investors investing up to a satisfactory amount, they will give approval to your loan.
Upgrade personal loan can be applied by borrowers with a credit score as low as 620. Borrowers are expected to have more than $1,000 leftover after paying their bills as well as a debt to income ratio that is lower than 40%. Borrowers can submit a loan application from $1,000 – $50,000. The typical variable APR interest range from 5.96%-35.97%.
Customers can negotiate the payment plan with the manager. Usually, the repayment term will last from 3 – 5 years. Upgrade personal loans have 1%-6% origination fee charges. Customers can get a temporary reduction of the monthly payment if they suddenly lose their jobs and need time to find another job.