Personal loans for fair credit are available for consumers whose credit is not bad, but it is not that great, either. Bankers know that people go through tough times now and then, and that they need a little help. Though they may be reluctant to lend to someone with bad credit, they will often welcome those who fall in between good and bad. That is because those borrowers show hope. It can mean they are recovering from hard times and have started to rebuild, or it may mean that there are minor blemishes due to a lay off or maybe medical bills. Those things can happen to anyone.
People with the highest credit ratings get the best rates; those with the lowest get high rates. A fair credit history will fall somewhere in between. Rates, of course, vary from year to year, but overall you can figure that good rates will be around 10 percent or less. Higher ones can be up in the 20-percent range. Fair, or average credit, will normally be around 12 to 18 percent, depending on the prime rate, which typically runs about three percent higher than the federal funds rate.
Do not rule yourself out of the game if your credit is not perfect! You are a long way from being on the sidelines, thanks to the availability of personal loans for fair credit. As long as you understand the interest rate will be a little higher, you will do fine. In fact, one of these loans is the perfect opportunity to get that good credit history you deserve. By taking out the loan and paying it back as agreed, your next loan will likely have a lower interest rate. If you keep that up, financing will be easy for you to get, and it will be much more affordable. Some people with excellent credit qualify for personal loan interest rates that are so low that they practically nonexistent. In that situation, it is almost like the bank borrowed money from you!