A fair credit score ranges from 580 to 669. 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 a 670 (which is considered a good credit score), you’ll be more likely to qualify for loans and receive better offers.
Credit band | Credit type | Description |
---|---|---|
300 to 579 | Poor | Considered a risky borrower — may not qualify with many lenders |
580 to 669 | Fair | May have a thin credit history, have missed a couple of payments or have a high income-to-debt ratio |
670 to 739 | Good | Above-average borrower in the eyes of lenders and may qualify for most loans |
740 to 799 | Very good | Considered a dependable borrower and may be eligible for low APRs |
800 to 850 | Excellent | Considered a low-risk borrower and may receive the lowest APRs |
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 way to borrow money. Unfortunately, the internet can also be rife with scammers. Generally, the lower your credit score, the more of a target you may be for predatory lending.
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 that borrowing from a brick-and-mortar bank can provide. At the same time, banks typically have more stringent requirements compared to online lenders, so you might not qualify for a personal loan if you have fair credit.
Credit unions: Personal loans from credit unions come with lower APRs, but you have to be a member before you’re eligible. Some credit unions are only available for certain borrowers, such as military members or employees of a specific organization.
You might still be eligible for a loan with fair credit — but it’ll probably be more expensive, thanks to a high APR.
A 2022 LendingTree study analyzed random LendingTree borrowers across many forms of credit (mortgages, personal loans, credit cards and auto loans). The data found that increasing your credit score from fair to very good could save you up to $50,000 through lower interest rates and fewer fees.
Below you’ll find the average APRs provided to LendingTree users from our lending partners, organized by credit score:
Credit score range | Average APR |
---|---|
720+ | 14.37% |
680-719 | 20.86% |
660-679 | 32.14% |
640-659 | 44.09% |
620-639 | 61.13% |
580-619 | 87.74% |
560-579 | 122.22% |
Less than 560 | 160.81% |
Source: LendingTree data from 2023 Q1
Improving your credit score isn’t an overnight process. Still, the time and effort it takes 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:
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 up to 180 points, as payment history accounts for 35% of your score.
Credit monitoring can help you keep tabs on your financial health. Since many services will send you an alert when it detects suspicious activity, credit monitoring can make it easier for you to dispute anomalies or put a stop to credit-ruining identity theft.
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 consider 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.
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 be detrimental, as it lowers the average age of your credit history.
Unfortunately, it can be common to find a mistake on your credit report. The good news is that if you find one, you can dispute the credit report error with the relevant credit bureau. Start by checking your credit report at AnnualCreditReport.com and carefully analyzing your reported history.
Comparing lenders is key to finding the loan with the most attractive terms for your situation (and credit profile). If you’re on the hunt for a personal loan for fair credit, keep an eye on:
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, lowering it further. 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.
Add a cosigner: Using a cosigner to get a personal loan can help your chances of getting approved, 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.
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.
While personal loans for fair credit may be a good option for some people, other alternatives worth exploring may include the following:
Buy now, pay later (BNPL): Buy now, pay later apps allow you to make everyday purchases with a low (or no) down payment. However, these apps are easy to use, 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 are having trouble getting approved. A secured loan requires that you put down collateral (like a vehicle) in order 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.
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 annual percentage rates (APRs) and considered the following factors:
Although it may be more difficult to secure a personal loan with a fair credit score, there are many lenders that are willing to work with borrowers with less-than-perfect credit. However, 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 identification. 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 can charge interest rates as high as 400%. Instead, consider a payday alternative loan (PAL) or a secured loan.
The minimum credit score required for a personal loan will vary from lender to lender. Some lenders don’t specify their minimum required scores, so ask the lender directly before applying. Some lenders offer loan products specifically for borrowers with fair or bad credit.