Best Personal Loans for Fair Credit

If you’ve been shopping around for personal loans online, you might be bombarded with offers touting low interest rates for applicants with excellent credit scores. But where does that leave you if your credit falls in the “fair” bucket, in the 580 to 669 range? 

You still have plenty of options, from online lenders to big banks to credit unions. We’ll walk you through the top options below to help you find the best personal loan for fair credit for your specific situation.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

1. Best for Lower Credit Scores: Upstart

While Upstart doesn’t have a fixed minimum credit score, its website makes it clear that it looks at more than just your credit, including education and employment history, when deciding whether to approve your application. So even if you have a credit score at the lower end of the “fair” range, you may have luck getting approved through this lender. You can also check your rate to get a sense of what you might qualify for before submitting a formal application. 

You can borrow $1,000 to $75,000 with a personal loan through Upstart, with interest rates ranging from 6.2% to 35.99%. Like the other lenders on this list, Upstart charges an origination fee. The exact amount varies, but it can go as high as 12%.

2. Best for Quick Access to Cash: Avant

Avant requires a minimum credit score of 550, which is one of the lowest hard floors among lenders on this list. You can borrow $2,000 to $35,000, and APRs range from 9.95% to 35.99%. The exact term lengths available to you generally depend on how much you borrow, but the minimum is 2 years and the maximum is 5 years.

In addition to accepting lower credit scores, Avant stands out for offering funding as soon as the next business day. The lender charges an origination fee, which it calls an “administrative fee” of up to 9.99% of the loan principal.

3. Best for Secured Loans: OneMain

OneMain is another lender that doesn’t publish an official minimum credit score, but for those concerned about approval, the option to take out a secured personal loan can be helpful. With a secured loan, you put up an asset such as a car, that the lender can access if you don’t repay what you borrow. From the lender’s perspective, having your collateral can make the loan less risky, and from the borrower’s perspective, it can make getting a loan more accessible. Another benefit: Secured loans generally have lower APRs.

Unlike the other lenders on this list, OneMain has physical branch locations across the U.S. You can apply for a personal loan in-person or online, but applying in-person could get you access to your loan money as soon as the same day.

4. Best for Earning a Lower Rate Over Time: LendingPoint

LendingPoint doesn’t have a hard credit score minimum for its personal loans, but the lender works with borrowers in the fair credit category. 

It offers comparable terms to many other options on this list, including an APR range of 7.99% to 35.99% and an origination fee of up to 10%. One unique aspect is that LendingPoint will review your account after 6 months of on-time payments to assess whether you’re eligible for a rate reduction. It’s not guaranteed, but it’s a feature that could work in your favor.

5. Best for Low Rates: Best Egg

Best Egg requires a minimum credit score of 640 for its personal loans. If you meet that requirement, you could score a relatively low APR, even if your credit isn’t in the excellent range. The official interest rate range is 6.99% to 35.99% APR.

Your term length options range from 3 to 5 years, and you’ll pay an origination fee of up to 9.99%. Like most of the other lenders on this list, Best Egg lets you check your rates without a hard credit pull so you can see if it’s a viable option for your borrowing needs.

6. Best for Larger Loan Amounts: LendingClub

If you need to borrow a larger amount of money, LendingClub could be a solid choice, since it offers loans of up to $60,000, one of the higher caps on this list. Repayment terms run from 2 to 7 years, which can offer flexibility in how you structure repayment of a bigger balance.

There isn’t a minimum credit score requirement for LendingClub personal loans, and you can check your rate before submitting your formal application. One other perk for debt consolidation borrowers: The lender can send funds directly to up to 12 creditors on your behalf, which cuts out a step if you’re getting a loan to pay down existing balances.

7. Best for Flexible Repayment: Upgrade

While Upgrade doesn’t frame it as a hard requirement, it recommends having a minimum credit score of 600 before applying for a personal loan. If you’re approved, you can borrow from $1,000 to $50,000 with a repayment term of up to 7 years, which lets you structure repayment in a variety of ways based on your budget.

Upgrade charges an origination fee of 1.85% to 9.99%, and if you set up autopay and direct pay for debt repayment, you could be entitled to a rate discount. 

8. Best for Small Loan Amounts: Oportun

While all the other lenders on this list work with borrowers in the fair to low credit buckets, Oportun stands out for not requiring a credit history at all. This could make it an especially accessible option if you need to borrow money but you’re new to building credit. You may pay a higher interest rate in return, though. 

Oportun offers smaller loan amounts, ranging from $300 to $10,000. It charges an administrative fee of up to 10%, and term lengths vary from 1 to 4.5 years. While it’s available in most states, it’s not available in every single one.

How to Choose the Right Personal Loan for You

To find the best personal loan for fair credit, you’ll want to look at a few key factors, including the amount of money you need, whether you meet a lender’s credit score requirements and the interest rates you qualify for. Many lenders let you check your rates before applying, so you can get a sense of how much you’d pay before submitting an application that will result in a hard credit pull.

In addition to comparing APRs, compare fees and repayment terms across lenders. The shorter your repayment term, the more you’ll pay the lender each month, but the less interest you’ll pay over the life of the loan. If you need to minimize payments to fit your budget, look for a lender that offers longer term options.

Beyond the options on this list, you can also explore secured loans through banks or credit unions. It’s generally best to avoid relying on them in the long run, but you can also consider credit cards and buy now, pay later (BNPL) services like Affirm if you have an expense that you can’t cover in the short term.

Whatever you do, make sure to compare your options before making a final decision, and read the terms of your agreement carefully so you know exactly what fees and payments you’re responsible for and when.

FAQs

Can you get a personal loan with a fair credit score?

Yes, you can get a personal loan with a fair credit score. Many online lenders specifically work with borrowers who have fair or even poor credit scores.

What is the best personal loan company for fair credit?

The best personal loan company for fair credit depends on your exact needs. If you want to get your loan funds as quickly as possible, Avant is a top option. If you need to borrow a larger amount of money, LendingClub and Upstart are among the top lenders to consider.

How do I improve my credit score from fair to excellent?

You can improve your credit score from fair to excellent by making on-time payments, which contributes to 35% of your credit score. While you should never take a loan out for this purpose alone, borrowing money and paying it off on time can actually improve your credit score in the long run since the lender will usually report your payments to the credit bureaus. Other factors that impact your credit score include amounts owed (with a lower outstanding balance being better) and length of credit history (with a longer average age of accounts being better).

Sources

• Official Upstart website

• Official Avant website

• Official OneMain Financial website

• Official LendingPoint website

• Official Best Egg website

• Official LendingClub website

• Official Upgrade website

• Official Oportun website