Best Personal Loans for Fair Credit in June 2024

Checking rates won’t affect your credit score

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Written by Lauren Nicholson | Edited by Amanda Push | Reviewed May 29, 2024

Achieve: Best for APR discounts

(5,211)
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8.99% - 35.99%

$5,000 - $50,000

24 to 60 months

1.99% - 6.99%

620

Pros

  • Multiple APR discounts available
  • Option of working with a dedicated loan specialist
  • No fee to pay off loan early

Cons

  • Charges an origination fee
  • High maximum APR
  • High minimum loan amount
  • No autopay discount

What to know

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While most top personal loan lenders offer at least one discount, Achieve has three. You can qualify for lower interest rates by allowing Achieve to repay your creditors directly, by showing proof of sufficient retirement savings and by applying with a co-borrower.

With a minimum loan amount of $5,000, Achieve may not be the right lender if you need a small personal loan.

Read our full Achieve personal loan review.

How to qualify

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  • Have a minimum credit score of 620
  • Provide Social Security number
  • Provide proof of identity
  • Provide proof of income and employment status

Avant: Best for fast funding

(2,682)
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9.95% - 35.99%

$2,000 - $35,000

24 to 60 months

Up to 9.99%

580

Pros

  • Offers prequalification
  • Short- and long-term loans available
  • May receive next-day funding

Cons

  • Not available in every state
  • $25 if your payment is 10+ days late
  • High minimum APR
  • Doesn’t allow cosigners
  • Charges an origination fee

What to know

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Avant distinguishes itself by offering a quick funding timeline and short term lengths. If you can afford the monthly payments for their 12-month repayment term, you’ll reduce the amount of interest you pay over the life of your loan.

Avant considers borrowers with credit scores as low as 580, but if your score isn’t quite up to snuff, you may have a hard time qualifying, since this lender doesn’t allow cosigners.

Read our full Avant personal loan review.

Eligibility requirements

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  • Have a minimum credit score of 580
  • Verify identity
  • Provide bank statements and pay stubs

Best Egg: Best for secured loans

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5.99% - 29.99%

$2,000 - $50,000

36 to 84 months

0.99% - 8.99%

600

Pros

  • Low minimum credit score
  • Relatively low APRs
  • Flexible repayment terms

Cons

  • Doesn’t allow co-borrowers
  • Charges an origination fee
  • Not available in Iowa, Vermont, West Virginia or Washington, D.C.

What to know

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Secured loans offer better terms and lower interest rates in exchange for collateral that the lender can legally seize if you don’t make your payments. If you’re confident in your ability to repay, Best Egg’s secured personal loans are worth considering for their flexible repayment terms and loan amounts.

If you don’t want to put up collateral, Best Egg also offers traditional unsecured personal loans.

Read our full Best Egg personal loan review.

Eligibility requirements

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  • For secured loans, provide collateral in the form of fixtures permanently attached to your home (e.g., bathroom vanities, built-in cabinetry and light fixtures)
  • Be of legal age
  • Have U.S. citizenship or permanent residency
  • Have a valid email address
  • Have a bank account
  • Have a physical address

Happy Money: Best for credit card refinancing

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11.72% - 17.99%

$5,000 - $40,000

24 to 60 months

1.50% - 5.50%

640

Pros

  • No late fees, returned payment fees or prepayment penalties
  • Transparent eligibility requirements
  • Can prequalify with soft credit pull

Cons

  • Slow funding timeline
  • No joint personal loans
  • High minimum APR
  • High minimum borrowing amount
  • Not available in Massachusetts or Nevada

What to know

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Happy Money lives up to its name by not charging late, returned payment or prepayment fees and allowing you to prequalify for a credit card refinancing loan without damaging your credit.

But if you need a personal loan for any other purpose, look elsewhere. Happy Money loans can only be used to consolidate credit card debt.

Read our full Happy Money personal loan review.

Eligibility requirements

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  • Have a minimum credit score of 640
  • Be at least 18 years old
  • Have no payment delinquencies on credit report
  • Have a checking account
  • Have a Social Security number

LendingClub: Best for smaller loans

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8.98% - 35.99%

$1,000 - $40,000

24 to 60 months

3.00% - 8.00%

600

Pros

  • Low minimum loan amount
  • Can add a co-borrower
  • May be approved in just a few hours
  • Available in all 50 states

Cons

  • Potential for high origination fee
  • High minimum APR
  • Charges a late payment fee, but doesn’t disclose fee amount

What to know

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LendingClub’s low minimum borrowing amount — $1,000 — is perfect if you’re looking for a personal loan for everyday bills. Plus, borrowers with fair credit might qualify for lower rates by adding a creditworthy co-borrower to their loan.

Read our full LendingClub personal loan review.

Eligibility requirements

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  • Have a minimum credit score of 600
  • Be at least 18 years old
  • Be a U.S. citizen or current resident
  • Have a bank account

LendingPoint: Best for mobile app loan management

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7.99% - 35.99%

$1,000 - $36,500

24 to 72 months

Up to 10%

660

Pros

  • Quick approval decisions
  • No prepayment penalties
  • May receive a lower interest rate after six months of on-time payments

Cons

  • No cosigners or joint loans
  • Potential for high origination fee
  • Not available in Nevada or West Virginia
  • Fair-credit borrowers may see an APR of nearly 36%
  • Not available in Nevada or West Virginia

What to know

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LendingPoint’s mobile app appeals to tech-savvy borrowers who use it to prequalify and apply for a loan, check credit scores and track finances. The LendingPoint app has high ratings on Apple (4.8) and Android (4.2).

Keep in mind, though, that you could be facing a steep origination fee with LendingPoint, and their maximum annual percentage rate (APR) is a bit high.

Read our full LendingPoint personal loan review.

Eligibility requirements

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  • Have a minimum credit score of 660
  • Have an annual income of $35,000+
  • Be at least 18 years old
  • Have U.S. government-issued ID
  • Have a bank account
  • Have a Social Security number

Prosper: Best for peer-to-peer lending

(3,639)
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8.99% - 35.99%

$2,000 - $50,000

24 to 60 months

1.00% - 9.99%

560

Pros

  • Joint applications welcome
  • No prepayment penalties
  • Can be used for almost anything

Cons

  • Not available in Iowa or West Virginia
  • Origination fees, late payment fees, insufficient fund fees and check processing fees
  • Loan approval and disbursement may be slow

What to know

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Prosper loans come with fixed rates and no prepayment penalties, so you’ll know what to expect from your monthly payments and can get ahead when you are able.

As is typical with peer-to-peer lending, the application process can take longer than if you worked with a direct lender. Prosper’s loan approval process takes up to five business days, and it typically disburses funds within one to three business days.

Read our full Prosper personal loan review.

Eligibility requirements

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  • Have a minimum credit score of 560
  • Be a U.S. resident
  • Have a personal bank account
  • Have a Social Security number

Upgrade: Best for flexible loan terms

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8.49% - 35.99% (with discounts)

$1,000 - $50,000

24 to 84 months

1.85% - 9.99%

580

Pros

  • Funds may be available as soon as one business day after approval
  • Offers joint personal loans
  • APR discounts for autopay and allowing Upgrade to pay off creditors directly

Cons

  • Funds may be available as soon as one business day after approval
  • Offers joint personal loans
  • APR discounts for autopay and allowing Upgrade to pay off creditors directly

What to know

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Upgrade offers one of the longest personal loan terms around (84 months). This extended repayment period could give you some breathing room, especially if you’re borrowing the maximum loan amount of $50,000. Keep in mind, though, that a long loan term means you may pay more in total interest charges.

Read our full Upgrade personal loan review.

Eligibility requirements

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  • Have a minimum credit score of 580
  • Be at least 18 years old (or above the age of majority in your state)
  • Have a bank account
  • Have an email address

Upstart: Best for low credit scores

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7.80% - 35.99%

$1,000 - $50,000

36 and 60 months

0.00% - 12.00%

300

Pros

  • Low minimum credit score requirement
  • Offers a wide range of loan amounts
  • Minimum APR is the lowest on this list

Cons

  • Maximum origination fee is the highest on this list
  • No option for co-borrowers
  • Limited repayment term options

What to know

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Upstart’s AI modeling helps it look past low credit scores and instead predict whether an applicant will default based on additional criteria. This makes it a top contender for bad-credit loans.

While Upstart’s minimum loan term is on the long end, you can pay off your loan early with no prepayment penalty.

Read our full Upstart personal loan review.

Eligibility requirements

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  • Have a minimum credit score of 300
  • Be at least 18 years old
  • Have an annual income of $12,000+
  • Have an email address
  • Have a Social Security number
  • Have a personal bank account
  • Have a job — job offers that start within six months are also eligible — or a regular source of income

How to compare personal loans for fair credit

Comparing lenders is key to finding the loan with the best terms for your situation (and credit profile). If you’re on the hunt for a personal loan for fair credit, keep an eye on:

APR: Because lenders reserve the lowest APRs for excellent-credit borrowers, look for lenders with the lowest maximum APRs. Since you have fair credit, lenders are more likely to offer you an APR on the upper end of their range.

Fees: Some lenders charge origination fees, late fees and prepayment penalties. Avoid these fees — but if you can’t, prioritize lenders with the lowest fees.

Loan terms: A longer loan term may mean lower monthly payments, but you’ll likely pay more interest over the life of your loan. Choose the shortest loan term that provides a monthly loan payment you can comfortably afford.

Loan amounts: Choose a lender that offers loans in the amount you need. Be sure to factor in any origination fees when assessing loan amounts, since the origination fee will be subtracted from the funds deposited in your account.

Funding timeline: After loan approval, you could be waiting for your funds for anywhere between a few hours to a week, depending on the lender. If you need money quickly, pay special attention to each lender’s funding timeline.

What is a fair credit score?

A fair credit score ranges from 580 to 669 on the FICO model. If you have a fair credit score, you may not qualify for a lender’s lowest APR, and some lenders may not approve you for a personal loan at all.

If you get your credit score up to 670 (which is considered a good credit score), you’ll be more likely to qualify for loans and receive better offers.

Credit bandCredit typeDescription
300 to 579PoorConsidered a risky borrower — may not qualify with many lenders
580 to 669FairMay have a thin credit history, have missed a couple of payments or have a high debt-to-income ratio
670 to 739GoodAbove-average borrower in the eyes of lenders and may qualify for most loans
740 to 799Very goodConsidered a dependable borrower and may be eligible for low APRs
800 to 850ExcellentConsidered a low-risk borrower and may receive the lowest APRs

Where to get a personal loan with fair credit

There are many places to get a personal loan if you have fair credit, including online lenders, brick-and-mortar banks and credit unions.

Online lenders

Online personal loans for fair credit are a fairly common (and convenient) way to borrow money. We’ve used our expert eye to vet each lender on this list. Still, always practice due diligence before providing personal information online.

Banks

Some borrowers may feel more comfortable with the in-person experience of borrowing from a brick-and-mortar bank. At the same time, banks typically have more stringent requirements than online lenders, so you might not qualify for a personal loan from a bank if you have fair credit.

Credit unions

Fair credit personal loans from credit unions come with lower APRs, but you have to become a member to be eligible. Some credit unions are only available for certain borrowers, such as military members or employees of a specific organization.

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Personal loan rates for fair credit

You might still be eligible for a loan with fair credit — but it’ll probably be more expensive, thanks to a high APR.

A 2024 LendingTree study found that increasing your credit score from fair to very good could save you almost $1,500 in personal loan interest payments and fees.

Below you’ll find the average APRs provided to LendingTree users from our lending partners, organized by credit score.

Credit score rangeAverage APRAverage loan amount
720+14.80%$18,979
680-71923.48%$15,494
660-67932.06%$11,197
640-65945.00%$8,107
620-63958.69%$6,133
580-61989.33%$4,143
560-579127.20%$3,070
Less than 560165.66%$2,392

Source: LendingTree user data on closed personal loans for the fourth quarter of 2023.

How to improve your credit score

Improving your credit score can open the door to a larger lender selection, lower APRs and higher loan amounts. Here’s what you can do to boost your credit score:

Pay your bills on time: Paying your bills in full and on time is the most important step to getting your credit in order. Just a single missed payment can cause your credit score to plummet by 50 to 100 points, as payment history accounts for 35% of your score.

Sign up for credit monitoring: Credit monitoring can help you keep tabs on your financial health. Since many services send you an alert when they detect suspicious activity, credit monitoring can make it easier for you to dispute anomalies or put a stop to credit-ruining identity theft.

Consider a secured credit card: No credit is better than bad credit, but a thin credit history can prevent you from moving from fair credit into the good range. If you’re struggling to build credit, you might want to apply for a secured credit card. You’ll need to put down a small deposit, but using a secured credit card responsibly might help you improve your score and gain access to better loan options in the future.

Eliminate debt: The amount of debt you have is one of the factors that affects your credit score. If you owe money on several credit cards, try to pay them down. After they’re paid off, it’s best to keep them open and use them sparingly. Closing your account completely can cause your score to drop as it lowers the average age of your credit history.

Check your credit report for discrepancies: Unfortunately, it can be common to find a mistake on your credit report. You can dispute a credit report error with the relevant credit bureau. Start by checking your credit report at AnnualCreditReport.com and carefully analyzing your reported history.

How to get a loan with fair credit

Qualifying for a loan with fair credit isn’t always easy, but there are some steps you can take to make the process go a bit more smoothly.

Avoid applying for new credit: When you apply for new credit, lenders will typically perform a hard credit inquiry to examine your credit score and history. These hard pulls can temporarily damage your credit score. If you know you’ll need to apply for a personal loan, avoid applying for other credit to keep your score as high as possible.

Prequalify: Prequalification doesn’t hurt your credit score and can help you see the loans you’re eligible for before jumping into the formal application process.

  Click the button below and head over to LendingTree’s personal loan marketplace. There, you can prequalify with up to five lenders at once with just a few clicks and no impact to your credit score.

Add a cosigner: Using a cosigner to get a personal loan can improve your chances of approval, especially if they have a strong credit profile. However, this isn’t a risk-free route: If you’re unable to repay the loan, it’ll negatively impact your cosigner’s credit and they may be held liable for repayment.

Alternatives to fair credit loans

While personal loans for fair credit may be a good option for some people, other alternatives worth exploring include:

 Buy now, pay later

Buy now, pay later apps allow you to make everyday purchases with a low down payment (or none at all). However, these apps are easy to use and don’t require much for approval, so it can take discipline to avoid overspending.

 Secured loans

Secured loans can be a good alternative to fair credit loans, especially if you have a lower credit score and have trouble getting approved. A secured loan requires that you put down collateral (like a vehicle) to lower your risk in the eyes of lenders. Keep in mind that if you default on the loan, you risk losing your collateral.

 Credit cards

If you need access to funds on a rolling basis rather than a lump sum, a credit card may be a better choice than a personal loan. Credit cards are especially helpful for small, recurring expenses like bills. Keep in mind that credit card interest rates can be high for borrowers who don’t have good to excellent credit.

How we chose the best personal loans for fair credit

We reviewed more than 30 lenders to determine the overall best nine personal loans for borrowers with fair credit. To make our list, lenders must offer personal loans to borrowers with credit scores below 670. We further prioritized lenders with competitive APRs and considered the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

Frequently asked questions

Although it may be more difficult to secure a personal loan with a fair credit score, many lenders are willing to work with borrowers with less-than-perfect credit. Keep in mind, you may receive a higher APR, as lower rates are typically reserved for borrowers with good or excellent credit.

Loans for fair credit often require that you provide documents proving your income and identity. When applying for a personal loan, you’ll most likely need to provide documents such as W-2s, a government-issued form of ID and bank statements.

Loans that don’t require credit checks, like payday loans, can be easy for borrowers to qualify for and offer quick access to cash. However, these types of loans are often predatory and charge interest rates as high as 400%. Instead, consider a payday alternative loan or a secured loan.

The minimum credit score required for a personal loan varies from lender to lender. Some lenders don’t specify their minimum required scores, so be sure to ask the lender directly before applying. Some lenders offer loan products specifically for borrowers with fair or bad credit.