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When an individual applies for a loan, lenders generally look at the credit history of a person and especially the credit scores of the individual. Credit scores can play a very crucial role in the decision to give a loan, and for those with a fair credit score it may be a little difficult but certainly not impossible to get a loan. The FICO scores of a person with fair credit rating will typically fall in the range of 640 to 680. However, this is just one aspect and the lender would be looking at something more than just credit scores. One has to give proof of income, and the lender will look at the type of loan that has been requested, loan to value ratio, and zip codes etc. In the case of having a fair credit report, a secured steady income is another advantage as the lender would be assured of the payments on time.

Most of the time there are errors in the credit report of the customer, but they are unaware of that fact. This is largely because people generally don't bother to take time out to verify the report. As per the rules, one is entitled to get a free copy of the credit report once a year, on request from any of the three credit reporting agencies. These reports could also be obtained online, but must be verified, and if any irregularities are found the same must be reported to the agencies without any further delay.

These credit reports are generally obtained free of cost, but there are many scams that are happening, and it is better to avoid any agency that claims to make corrections for a sum. There are many instances where people have managed to get their errors rectified, and thereby increasing their credit scores.

The main component in availing the loan is the type of loan that is required. Secured loans are far more easily available than unsecured loans. For secured loans, one needs to provide collateral whereas unsecured loans do not require any collateral. There is a less risk for the lender with secured loans, and hence the interest rates are much lower. However, with unsecured loans the lender is at greater risk and the interest rates are much higher.

Getting a loan for those with fair credit is not impossible, but one will have to work diligently to get the scores up in the future.