Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

Best personal loans for fair credit of 2024

Our top picks for borrowers with credit scores between 580 and 669.

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

Why trust Finder

  • 50+ personal loan lenders reviewed and rated by our team of experts
  • 6+ types of personal loans analyzed
  • Evaluated under our unbiased rating system covering 9 categories
  • 20+ years of combined experience covering financial topics

We're big on editorial independence. That means our content, reviews and ratings are fair, accurate and trustworthy. We don't let advertisers or partners sway our opinions. Our financial experts put in the hard work, spending hours researching and analyzing hundreds of products based on data-driven methodologies to find the best accounts and providers for you. Explore our editorial guidelines to see how we work.

Best overall: Upstart

Upstart personal loans

8.3 Great

Go to site Read review
Min. credit score300
APR7.40% to 35.99%
Loan amount$1,000 to $50,000
  • Not available in: Connecticut, Iowa, Maine, Maryland, Nevada, New York, Oklahoma, Oregon, West Virginia

Best for quality customer service: Best Egg

Best Egg personal loans

7.6 Great

Go to site Read review
Min. credit score640
APR7.99% to 35.99%
Loan amount$2,000 to $50,000
  • Not available in: Iowa, Vermont, West Virginia

Best for fast funding: Rocket Loans

Rocket Loans personal loans

7.7 Great

Go to site Read review
Min. credit score640
APR9.116% to 29.99%
Loan amount$2,000 to $45,000
  • Not available in: Iowa, Nevada

Best for debt consolidation: Happy Money

Happy Money

7.6 Great

Go to site Read review
Min. credit score640
APR11.72% to 17.99%
Loan amount$5,000 to $40,000
  • Not available in: Iowa, Massachusetts, Nevada

Best for building credit: LendingPoint

LendingPoint personal loans

6.6 Standard

Go to site Read review
Min. credit scoreNot stated
APR7.99% to 35.99%
Loan amount$2,000 to $36,500
  • Not available in: Nevada, West Virginia

Best for flexible payments: Upgrade

Upgrade personal loans

8 Great

Go to site Read review
Min. credit score580
APR9.99% to 35.99%
Loan amount$1,000 to $50,000
  • Not available in: Colorado, Iowa, Maryland, Vermont, West Virginia

Best for comparing options: MoneyLion

MoneyLion personal loans

8.5 Great

Go to site
Min. credit scoreVaries by lender
APRVaries by lender
Loan amount$500 to $100,000
  • Not available in: Colorado, Connecticut, New York, Vermont, West Virginia

Best for small loan amounts

First Tech Federal Credit Union personal loans

8 Great

Min. credit score
APR8.79% to 18%
Loan amount$500 to $50,000
  • Not available in: Hawaii

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:

Monthly repayments calculator

Calculate how much you could expect to pay each month
Your loan
Loan amount
$
Loan terms (in years)
Interest rate
%

Fill out the form and click on “Calculate” to see your estimated monthly payment.

or

Compare personal loans now
You can expect to pay back $ per month
Based on your loan terms
Principal $
Interest $
Total Cost $

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.

Product USFPL Finder Score APR Min. credit score Loan Amount
Best Egg logo
Finder score
7.99% to 35.99%
640
$50,000
Fast and easy personal loan application process. See options first without affecting your credit score.
Money logo
Finder score
8.99% to 29.99%
620
$50,000
Consolidate debt and more with these low-interest loans. Cosigners welcome.
Natural Intelligence logo
Finder score
6.99% to 35.99%
Fair to excellent credit
$200,000
Get personalized prequalified rates in minutes and then choose an offer from a selection of top online lenders.
Varo Line of Credit
Varo logo
Finder score
No interest
300
$2,000
The Varo Line of Credit (VLOC) is a short term loan with credit limits ranging from $600 - $2000. A flat fee of $60 to $400 is assessed with each advance based on the amount.
Money logo
Finder score
6.94% to 25.99%
Good to excellent credit
$100,000
Borrow up to $100,000 with low rates and no fees.
loading

What is the Finder Score?

The Finder Score crunches 6+ types of personal loans across 50+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

Read the full Finder Score breakdown

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.

Holly Jennings's headshot
To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.
Kat Aoki's headshot
Written by

Writer

Kat Aoki was a personal finance writer at Finder, specializing in consumer and business lending. She’s written thousands of articles to help consumers make better decisions on their home loans, bank accounts, credit cards, cryptocurrency and more. Kat is well versed in working with leading brands in the real estate, mortgage and personal finance industries, and her expertise has been featured on Lifewire and financial comparison sites like iSelect and realestate.com.au. She holds a BS in business administration from California State University, Sacramento and enjoys hiking and yoga in her spare time. See full bio

Kat's expertise
Kat has written 176 Finder guides across topics including:
  • Mortgages
  • Home equity loans
  • Mortgage refinancing
More resources on Finder

Ask a question

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

More guides on Finder

Go to site