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Credit Card Applications » Questions » User Questions » Limited/Bad/Fair Credit » What are the eligibility criteria for availing fair credit loans?

What are the eligibility criteria for availing fair credit loans?

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The different financial institutes are ready to grant financial loans to a loan seeker with a fair credit score. A fair credit score indicates that the person has tried to be honest in his financial transactions. This is the reason why a fair credit score can have as good an impact on the lenders as a good credit score.

What is a fair credit score?

The constitution of a fair credit score can vary from lender to lender. Again different situations for credit requirements will also have to be considered when giving score. Basically two types of credit scoring exist, they are FICO and Vantage Score. The ranges of both the scoring systems vary, therefore the fair score of one might stand out to be a poor score for the other. As per FICO, a score of 650 in the range of 300 to 850 stands to be a fair credit score. According to Vintage scoring system, a credit score in between 701 to 800 of the range 501 to 990 is considered to be a fair credit score.

Fair credit loans

A loan seeker with a fair credit score has the option to avail loans in two ways that is either secured or insecured loans. For secured variety of loans, the loan seeker has to deposit a collateral or mortgage assets to the lenders as security against loans. The loan amount that can be secured depends on the mortgage or value of the asset kept. The loans are offered at a good interest rate and have a flexible grace period and repayment schemes.

In case of insecured loans, the loan amount offered is lesser than that of secured fair credit loans. The interest rates are also high and the grace period remains fixed from a year to within ten years.

Instant fair credit loan options are also available both in secured and insecured loans. The financial strength and background of the loan seeker matters when availing an instant fair credit loan. Some of the other eligibility criteria for availing a fair credit loan are-

  1. The loan seeker must be above the age of eighteen years.
  2. The loan seeker must but be a citizen of the country.
  3. He should have a regular source of income and employed in an authorized company for at least six months.
  4. The loan seeker should possess a checking account.

The process of loan application is very simple. The lenders do not seek extra documentation. The loan seeker can also avail the loans online.

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