If your credit score falls somewhere between 580 and 669, your personal loan options are slightly limited. Since you might not qualify for the lowest rates, look for a lender that has a high maximum APR and considers other factors besides credit.
To help you get started, our team of experts reviewed over 100 personal loan providers to come up with a list of the cream of the crop. We compared rates, terms and borrowing amounts, as well as customer reviews on sites like Trustpilot and the Better Business Bureau. We also made a point to pick providers that served a wide range of needs, from consolidating debt to investing in home improvements.
We improved our rating system for 2020 and made two updates to our list:
Best overall: Alliant is now our pick for “best overall” — largely because of its low rates and wide accessibility.
Best for flexible repayments: LendingPoint has been replaced by Upgrade because of its lower APR and helpful repayment options, including a hardship program if you find yourself in a difficult financial situation.
We also added a new category: Best for limited credit history. Upstart takes the spotlight here because of its holistic approach to reviewing applicants — it doesn’t just rely on your credit score.
Upgrade not only has a lower starting APR, but its hardship program allows you to change your repayment due date, defer two repayments or make a partial payment if cash is tight. You'll also have a grace period of 15 days before having to pay a late fee.
In addition, you'll still be able to qualify with a credit score of 600 and a debt-to-income ratio of 50% — much higher than many other lenders. Just remember that its maximum rate is a high 35.97%. So while you may still be approved with fair credit, you could face hefty interest charges over the life of your loan.
Potential next-day turnaround
Prequalify without affecting your credit
Access to free credit monitoring
High origination fee between 1.5% and 6%
Harder to qualify if you're self-employed
Need at least $1,000 in free cash flow a month to qualify
Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by WebBank, Member FDIC.
You'll need a credit score of at least 580 or 620 depending on your state of residence to qualify with Upstart. But unlike other lenders, Upstart considers more than just that score. Your education may also play a role. And if you don't have enough credit history to have a FICO score, Upstart will still consider you.
Combined with its low starting APR and high maximum loan amount, it may be a good choice if you don't have many lines on your credit report. Just watch out for its high origination fee and high maximum APR of 35.99%. These can make it much more expensive to borrow if you're on the lower end of the fair-credit range.
Available in all states but West Virginia and Iowa
Considers more than just your credit score
Might be able to get your funds the next business day
Payoff is a lender that specializes in helping you pay off your credit cards. It offers extra features to keep you on track — like credit score updates — and claims borrowers improve their credit by an average of 40 points.
It also offers an unusual amount of career support. This includes a team of experts that can help you find a new job and the flexibility to change your repayment plan if you lose your job.
Specializes in credit card consolidation
Career support
Stay on top of your credit score
Low maximum loan amount
Origination fee of 2% to 5%
At least three years of positive credit history required
With fair credit, you likely aren’t going to qualify for the lowest advertised rate. While Alliant’s rates start on the high end, they offer some of the lowest maximum APRs out there — lower than where some fair-credit lenders start.
The downside is that you must become a member, which might involve making a $5 donation to the Illinois-based credit union’s partner charity.
PenFed is one of the few personal loan providers that offers loans as low as $500. It also has highly competitive rates, which top off where some fair-credit providers start.
Like with Alliant, you have to become a member to join — but everyone's eligible, and you don't have to pay a fee to join. While you can borrow online from anywhere in the country, it only has branches in some states.
Green Sky Direct offers financing specifically made for home improvement projects. Rather than giving you a lump sum, you get a card you can use to spend on your home improvement costs over six months. After those six months are up, you repay your balance like a term loan.
The downside is that you have to pay off any interest that adds up each month during those first six months — it’s more flexible than your typical personal loan, but it can be more expensive.
Only borrow the exact cost of your home improvement project
As Rocket Loans’ name suggests, it’s fast — even for an online lender. You can get funded as soon as the same day for loans under $25,000, as long as you apply early enough. And it claims that 90% of borrowers get funded as soon as the next business day.
But its rates aren’t that competitive. And it charges an origination fee that can get as high as 6% — most personal loan providers don’t charge more than 5%.
MoneyLion Plus is a service you can sign up for to receive loans up to $500 in seconds. Everyone gets the same 5.99% APR with a term of one year to repay. It's a credit-builder loan — MoneyLion claims that most members improve their credit score by 20 points in the first month.
And members get access to a wide range of services — from investment portfolios to bonuses for healthy financial behavior. But you'll have to pay a monthly membership fee of $29, which might not be worth it for a one-time expense.
Instant funding for members
Everyone gets 5.99% APR
Rewards good financial habits
Monthly membership fee
No loans over $500
Not worth it for a one-time expense
Loan Amount
Up to $1,000
APR
5.99% to 29.99%
Interest Rate Type
Fixed
Min term
12 months
Summary of best personal loans for fair credit
Lender
APR
Best for …
What sets it apart
Payoff
5.99% to 24.99%
Credit card consolidation
A stellar customer care team to walk you through the credit card consolidation process.
PenFed Credit Union
6.49% to 17.99%
Small-dollar loans
Loans as low as $500 and one of the lowest maximum APRs available to fair credit.
Upgrade
7.99% to 35.97%
Flexible repayments
The options to change your due date, defer or make partial repayments.
Upstart
7.98% to 35.99%
Limited credit history
An emphasis on education and career instead of just your credit score.
Alliant Credit Union
6.24% to 27.24%
Fair credit in general
No fees and protections for if you lose your job, become disabled or die.
GreenSky
3.99% to 26.99%
Home improvements
You get six months to rack up expenses before the balance turns into a loan.
Rocket Loans
7.16% to 29.99%
Fast funding
A turnaround time as fast as the same day for loans under $25,000.
How to choose the best personal loan with fair credit
Keep these tips in mind to find a competitive deal on a loan when you have fair credit:
Consider the maximum APR. You likely won’t qualify for the lowest potential rate with fair credit, so looking at the maximum rate a lender offers might be a better way to find a good deal.
Prequalify with multiple lenders. Fill out prequalification forms to find out what rates, terms and loan amounts you might qualify for with multiple lenders to make a more personalized comparison.
Apply with a cosigner. Applying with a cosigner with excellent credit can help you qualify for more competitive rates and higher loan amounts.
Where else can I get a fair-credit loan?
You can get a fair-credit personal loan from most types of lenders, including:
Online lenders. Online lenders tend to have more relaxed credit requirements than other types of providers — many rely on other signals of financial health beyond your credit score.
Credit unions. Credit unions are nonprofit, member-run financial institutions that tend to offer more competitive rates than their bank or online counterparts to fair-credit borrowers.
Banks. While large banks tend to require good to excellent credit, you might be able to find a good deal at a local or regional bank with fair credit.
Connection services. Connection services can help you prequalify with multiple lenders at once. This gives you an idea of what rates, loan amounts and terms you can qualify for, and which lender offers the best deal for you.
Peer-to-peer lenders. These online platforms connect borrowers with investors to fund your loan. They work a lot like online lenders, though it can take as long as a week to receive your funds.
How much will my loan cost me?
It generally depends on how much you borrow, your interest rate and term. You can use our monthly repayment calculator to find out how much that loan you had in mind costs each month and overall:
Bottom line
Your options are limited when you have fair credit, but it’s still possible to find a good deal. Online lenders, credit unions and small banks might be your best bet. But if you have a credit score below 640, you might want to consider applying with a cosigner — that’s the cutoff for most fair-credit lenders.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 950 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
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