If your credit score is fair – that is, between 580 and 669 – you may qualify for a personal loan, but you’ll pay a higher rate than someone with good to excellent credit. You’ll also likely be on the hook for origination fees, which can run anywhere from 1% to 10% of the loan amount.
Keep in mind that lenders have raised their rates in response to the Fed’s hikes and are tightening requirements, which means that some lenders that once accepted fair credit may not right now. The lenders in this list offer some of the most competitive rates and terms available today, even if fair credit personal loans are somewhat harder to come by.
To find the lowest APR for your credit score, prequalify with multiple lenders to compare rates and fees. In particular, look for a lender that has a low maximum starting APR and considers other factors besides your credit score. You can also add a cosigner if the lender allows it to increase your chances of approval and secure a lower rate, too.
8 best personal loans for fair credit
Best overall: Upstart
Upstart is a fintech lender that accepts borrowers with credit scores as low as 300. It's one of the few lenders that considers your employment history and education when making a decision– making it ideal for students just out of college. Upstart offers loans between $1,000 and $50,000 and its rates start at a low 7.8% APR, but you could pay an origination fee of up to 12% on your loan if you have a lower credit score.
- Not available in: West Virginia
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Pros
- Rated highly by past customers
- Uses nontraditional underwriting process
- Preapproval available online
- Funding in as little as one day
Cons
- High maximum APR of 35.99%
- Origination fee up to 12%
- Only two loan term options
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Loan amount | $1,000 to $50,000 |
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APR | 7.80% to 35.99% |
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Interest Rate Type | Fixed |
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Min. credit score | 300 |
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Turnaround Time | 1 to 3 business days |
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Loan Term | 36 or 60 months |
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Best for quality customer service: Best Egg
In addition to working with good to excellent credit borrowers, Best Egg also accepts fair credit scores and gets high marks from customers for its customer service and fast funding. Its APRs range from 8.99% to 35.99%, and it charges an origination fee of 0.99% to 8.99% depending on your creditworthiness. The company has been accredited with the Better Business Bureau (BBB) since 2014 and gets an exceptionally high BBB rating from customers – a rarity on the BBB site.
- Not available in: Iowa, Vermont, West Virginia
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Pros
- Ranked #2 in customer satisfaction 2023 by JD Powers
- Multiple repayment methods, including Western Union Quick Collect
Cons
- High origination and late payment fees
- Harder to qualify if you're self-employed
- Not available in IA, DC, VT, WV, PR, or GU
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Loan amount | $2,000 to $50,000 |
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APR | 8.99% to 35.99% |
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Interest Rate Type | Fixed |
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Min. credit score | 600 |
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Turnaround Time | As soon as one business day |
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Loan Term | 3 to 5 years |
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Best for fast funding: Rocket Loans
Rocket Loans personal loans
As Rocket Loans' name suggests, it's fast — even for an online lender. You can get funded the same day you apply for loans under $25,000. And it claims that 90% of borrowers get funded as soon as the next business day. But while it has lower interest rates than some of its competitors, you'll need to have a credit score of 640 to qualify. On top of that, its actual loan amounts are more limited: If you need less than $2,000 or more than $45,000, it's best to look elsewhere.
- Not available in: Iowa, Nevada
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Pros
- Same-day funding available
- Reputation for good customer service
Cons
- Origination fee of 1% to 6%
- Strict credit and income requirements
- Only two loan term options
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Loan amount | $2,000 to $45,000 |
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APR | 9.116% to 29.99% |
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Interest Rate Type | Fixed |
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Min. credit score | 640 |
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Turnaround Time | As soon as the same day |
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Loan Term | 3 or 5 years |
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Best for debt consolidation: Happy Money
Happy Money works with lending partners that specialize in debt consolidation, offering loans between $5,000 and $40,000 with rates starting at 11.72% APR. Unlike some lenders, you can have funds deposited directly into your bank account or let Happy Money pay your creditors directly. But it's not the fastest option — it could take up to six days to receive your funds and you may be on the hook for an origination fee up to 5%.
- Not available in: Massachusetts, Nevada
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Pros
- No late fees, returned check fees or prepayment penalties
- Generally good customer reviews online
- Phone support available
Cons
- No cosigners or coborrowers allowed
- Not available in MA or NV
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Loan amount | $5,000 to $40,000 |
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APR | 11.72% to 24.50% |
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Interest Rate Type | Fixed |
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Min. credit score | 640 |
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Turnaround Time | 3 to 6 days |
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Loan Term | 2 to 5 years |
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Best for building credit: LendingPoint
LendingPoint personal loans
LendingPoint won't be the best choice if you're on the cusp of good credit, but if you're looking to build your credit score with a small loan, it's a solid option. You'll only be able to borrow up to $36,500 — with a potentially high interest rate and origination fee — but LendingPoint reports your payments to two of the three credit bureaus. You can also sign up for bimonthly payments to help lower the interest you pay and add more flexibility to your budget.
- Not available in: Colorado, Connecticut, Idaho, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New York, Vermont, West Virginia, Wisconsin, Wyoming
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Pros
- Accepts credit scores as low as REQUIREMENTS.CREDIT_SCORE_MIN
- Reports to TransUnion and Experian
- Bimonthly payment option
Cons
- High APR of 7.99% to 35.99%
- Origination fee up to 8%
- Low maximum loan amount of $36,500
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Loan amount | $2,000 to $36,500 |
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APR | 7.99% to 35.99% |
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Interest Rate Type | Fixed |
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Min. credit score | 620 |
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Turnaround Time | As soon as 1 business day |
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Loan Term | 2 to 5 years |
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Best for flexible payments: Upgrade
Upgrade not only has lower starting interest rates than many competitors, but its hardship program allows you to change your payment date or make a partial payment of 30% to 50% if cash is tight. You'll also have a grace period of 10 days before having to pay a late fee. And it considers borrowers with a credit score of 620 and a debt-to-income ratio of 50% — more lenient than most lenders. But its maximum rate is a high 35.99%, which means fair credit borrowers could face hefty interest charges
- Not available in: Colorado, Iowa, Maryland, Vermont, West Virginia
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Pros
- Access to free credit monitoring
- Hardship programs
- Lines of credit also available
Cons
- Origination fee of to
- Need monthly cash flow of $1,000+
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Loan amount | $1,000 to $50,000 |
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APR | 8.49% to 35.99% |
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Interest Rate Type | Fixed |
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Min. credit score | 620 |
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Turnaround Time | 1 to 4 business days |
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Loan Term | 2 to 7 years |
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Best for comparing options: Fiona
Fiona (formerly Even) is a free connection service that partners with 31 personal loan providers. The benefit of using Fiona is that you can search and prequalify with multiple lenders at once just by filling out a single form. As a fair credit borrower, this means you'll know right away which lenders are willing to work with your credit score. The downside is you may be inundated with marketing emails and calls from Fiona's partners after applying.
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Pros
- Free to use with soft credit check
- Compare multiple offers in minutes
- Highly-rated by BBB and past users
Cons
- Shares your information with third-parties
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Loan amount | $1,000 to $100,000 |
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APR | 5.20% to 35.99% |
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Interest Rate Type | Fixed |
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Min. credit score | Poor |
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Turnaround Time | Varies by lender |
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Loan Term | 4 months to 12 years |
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Best for small loan amounts
First Tech Federal Credit Union personal loans
First Tech Federal Credit Union is a good option if you're willing to become a member. It offers loans as small as $500, and because it's a credit union, you may be able to qualify with fair credit — and loan terms up to 84 months. There are no origination fees, but its minimum interest rates start at a high 6.70%. And if you want to borrow a larger loan, you may be on the hook for a higher interest rate.
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Pros
- Small minimum loan amount of $500
- No origination fee
- Loan terms up to 84 months
Cons
- Must become a member to qualify
- High starting APR of 6.70%
- Larger loans have higher interest rates
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Loan amount | $500 to $50,000 |
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APR | 7.99% to 13.29% |
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Interest Rate Type | Fixed |
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Min. credit score | |
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Loan Term | 2 to 7 years |
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Min. credit score | |
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APR | 7.99% to 13.29% |
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Loan amount | $500 to $50,000 |
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Methodology: How we picked the best fair credit loans
Finder’s lending experts review more than 120 lenders against 16 key metrics to narrow down the best personal loans:
- Minimum APR
- Maximum APR
- Origination fees
- Minimum loan amount
- Maximum loan amount
- Minimum loan term
- Maximum loan term
- Number of states served
- Minimum credit score
- Joint application availability
- Turnaround time
- Online application availability
- Prequalification process
- BBB ratings
- Trustpilot ratings
- Other features, such as rate discounts
We weigh the lender’s minimum and maximum APR to focus on the best low-interest personal loans. And we regularly review our top selections as lenders enter and leave the market.
Personal loan rates for fair credit
The average APR on personal loans for borrowers with scores between 580 to 619 is a high 89.86%, with this group carrying an average loan amount of $4,811.89. For borrowers with scores between 620 and 639, the average APR is slightly lower, at 62.90%, and for those between 640 and 659, it’s 44.50%.
These high average APRs for all fair credit groups is likely due to the inclusion of installment and payday loans APRs into these averages. Unlike personal loans, which are capped at 36% APR, installment loans and payday loans charge interest and financing fees resulting in APRs as high as 400% and up.
Fair credit borrowers don’t qualify for the lowest rates, even with a lender that specializes in fair credit loans. For example, fair credit lender Upstart states on its website that “the average 5-year loan offered across all lenders using the Upstart platform will have an APR of 26.57% and 60 monthly payments of $27.29 per $1,000 borrowed.”
When to get a personal loan with fair credit
While you won’t get the best rates and fees on a personal loan if you have fair credit, it’s still a good idea if it helps you with the following:
- Consolidate high-interest debt. If you can qualify for a lower interest rate on a personal loan than you’re currently paying on credit card debt, debt consolidation can help you save on interest and simplify your payments.
- Get rid of payday or installment loans. With payday or installment loans charging APRs in excess of 400%, using a personal loan to pay off these types of loans can help you get out of a cycle of debt faster.
- Pay for necessary living expenses. Sometimes taking out a personal loan may be necessary to pay for emergency or living expenses when not having the money would cause a problem.
When to avoid personal loans
However, there are some situations when getting a personal loan with fair credit isn’t necessarily a good idea:
- When interest rates are high. With the current market, taking on fair credit debt is expensive and it may not make sense to take on more debt unless you’re using it to pay for necessities or for debt consolidation.
- You’re in an unstable financial situation. If your finances are looking unstable for any reason, taking out a new loan can cause additional stress and hurt your credit score if you miss a payment.
- Your credit score has taken a hit. If you have fair credit due to recent negative items on your credit report, your interest rate will likely be higher and your loan will cost more over the long run. Sometimes it’s better to wait to get a loan until your credit score has improved.
Our Consumer Confidence Index reported that people found personal loan debt to be more stressful than credit card debt, so think before taking out a personal loan if any of the above factors are true for you.
Where to get a fair credit personal loan
Many traditional lenders and banks consider borrowers with a credit score below 670 to be “subprime” borrowers, but some lenders recognize that there is a fair credit bracket between the two, including:
- Online lenders. Online fintech lenders use algorithms to determine a borrower’s ability to repay a loan. These algorithms consider multiple factors in addition to your credit score when making a decision to extend a loan. Plus, many online lenders can offer loans with low doc requirements and same-day funding.
- Federal credit unions. The National Credit Union Administration (NCUA) has the ability to cap rates, which means that rates on loans at credit unions may be lower than other lenders. See our credit union personal loans guide for more information.
- Community development financial institutions (CDFIs). These are nonprofit lenders that specialize in serving a specific community. They often have lower interest rates for fair credit borrowers – or may not even consider your credit at all.
- Community banks. Local banks tend to be more flexible with their credit requirements compared to big banks, since they often have a stated commitment to serve their local communities.
- Peer-to-peer (P2P) lenders. Catering to lower credit borrowers, P2P lenders offer more options to people who may have a harder time finding a loan elsewhere.
Personal loan alternatives
A personal loan may not be the best option especially when rates are high and it’s difficult to qualify for a low rate.
These alternatives may work better for you:
- Cash advance apps. Cash advance apps offer no-interest paycheck advances, typically between $20 and $500, often for a small monthly fee or tip. But to qualify for advance, you’ll need to establish a history of regular direct deposits for a month or two.
- Credit builder loans. If you’re considering taking out a personal loan to build credit, a credit build loan is an alternative that works in reverse. With this option, you make fixed monthly payments towards a loan, then access funds once all payments have been made.
- Home equity lines of credit (HELOCs). A HELOC is a revolving line of credit secured against your home equity with a 10-year draw period and a 20-year repayment period. They generally have lower rates than personal loans, but carry higher risk since you’re using your home as collateral.
- Personal lines of credit. These work like a credit card but give you funds in cash for expenses you can’t pay on credit. They may offer lower interest rates than credit cards, but they’re not offered by all lenders.
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:
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Compare more personal loans for fair credit
Narrow down top lenders by APR, loan amount and more to find the right loan for your credit score. Select Compare on up to four lenders to see their details side by side. Select Learn more to visit a partner’s site or select More info to read our editorial review.
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.
To find the best borrowing options you can take a look at our guide to the best personal loans.