With a credit score of 650, you’re in the “fair” credit range, which can present some challenges when seeking a good personal loan rate. However, understanding what to expect and how to improve your chances can help you secure the best possible terms.First, let’s look at the expected interest rates. For borrowers with fair credit (630-689), the average APR is around 17.64%. You might see rates ranging from approximately 13.63% to 18.65%, though your actual rate could vary based on other factors.Your credit score is just one piece of the puzzle. Lenders also consider your debt-to-income ratio (DTI), income stability, credit history length, and employment status. A lower DTI, stable income, longer credit history with consistent on-time payments, and steady employment can all work in your favor.To improve your chances of getting a better rate, consider these strategies:

1. Boost your credit score: Focus on making all payments on time and reducing credit card balances. Even a small improvement in your score could lead to better loan terms.
2. Explore secured loan options: Offering collateral might help you qualify for a lower rate, as it reduces the lender’s risk.
3. Find a co-signer: If possible, having a co-signer with better credit could help you access lower rates.
4. Compare multiple lenders: Rates can vary significantly between lenders, so it’s crucial to shop around. Many lenders offer pre-qualification, which allows you to check potential rates without affecting your credit score.
5. Consider shorter loan terms: While this may result in higher monthly payments, shorter terms often come with lower interest rates.
6. Improve your overall financial picture: Work on reducing existing debts and increasing your income if possible. This can lower your DTI ratio, making you more attractive to lenders.

When applying for loans, be prepared to provide documentation of your income, employment, and existing debts. Lenders will use this information to assess your ability to repay the loan.It’s important to remember that while a 650 credit score may limit your options compared to those with excellent credit, you can still find reasonable loan terms. Some lenders specialize in working with borrowers who have fair credit, so don’t be discouraged if you receive a few rejections.Lastly, consider your long-term financial goals. If you don’t urgently need the loan, it might be worth spending a few months focusing on improving your credit score before applying. Even a small increase could potentially save you hundreds or thousands of dollars in interest over the life of the loan.By understanding your current position, exploring all available options, and taking steps to improve your financial profile, you can maximize your chances of securing the best possible loan rate with a credit score of 650.