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A personal loan can be a good way to get quick cash for expenses like home improvement projects, moving costs, or a vacation. You'll pay it off in monthly installments, and your interest rate will be fixed for the life of the loan. Your credit score is a primary factor in determining the interest rate for your loan. There are plenty of lenders offering personal loans for fair credit.
There are many options for borrowers with fair credit, which is defined by FICO as a score between 580 to 669. We've put together a list of lenders that offer personal loans for fair credit.
For borrowers with excellent credit, PenFed Credit Union has great minimum interest rates on its personal loans. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
Upgrade is a solid lender if you can qualify for its lowest interest rate. But if your credit isn't in great shape, you may be able to find a better deal elsewhere.
Details
Regular Annual Percentage Rate (APR)
8.49% to 35.99%
Loan Amount Range
$1,000 to $50,000
Minimum Credit Score
580
Editor's Rating
4/5
4 out of
5 Stars
Pros & Cons
Pros
Small minimum loan amount
Quick access to funds
Low minimum credit score
Cons
Origination and late fees
Highlights
More Information
Loan amounts range from $1,000 to $50,000
Loan term lengths range between 2 to 7 years
You can get your money within one business day after your loan is reviewed and approved
Avant Personal Loan is a good personal loan provider, especially if you have a lower credit score and need to receive your loan money quickly. Just be prepared to pay a high APR if you do have a low score.
Details
Regular Annual Percentage Rate (APR)
9.95% to 35.99%
Loan Amount Range
$2,000 to $35,000
Minimum Credit Score
600
Editor's Rating
3.75/5
3.75 out of
5 Stars
Pros & Cons
Pros
Funds generally deposited by the next business day
No prepayment penalty
Cons
Multiple types of fees
High maximum APR
Low maximum loan limit
Highlights
More Information
Loan amounts range from $2,000 to $35,000
Loan term lengths range between 2 to 5 years
Administration fee of up to 4.75%, which will be deducted from your loan proceeds when the loan is funded, and late fee that varies by state
LendingClub is a solid personal loan provider, especially if you have a lower credit score and want to add a co-borrower to boost your chances of a better rate. However, you could be charged high rates and fees compared to competitors.
Details
Regular Annual Percentage Rate (APR)
9.57% to 36.00%
Loan Amount Range
$1,000 to $40,000
Minimum Credit Score
600
Editor's Rating
3.25/5
3.25 out of
5 Stars
Pros & Cons
Pros
Low minimum loan amount
Can add co-borrower to loan application
No prepayment penalties
Cons
Multiple types of fees
High maximum APR
Slower access to funds
Highlights
More Information
Origination fee between 3% to 8%
You'll get access to your funds within two to four business days
Loan amount range between $1,000 to $40,000
Loan terms are between 24 months and 60 months
Loans made through either WebBank, Member FDIC or LendingClub Bank, N.A., Member FDIC
$1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100)
Upstart could be the right lender if you have a strong work and education history, but you have a low credit score or limited credit history. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
Details
Regular Annual Percentage Rate (APR)
4.60% to 35.99%
Loan Amount Range
$1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100)
Minimum Credit Score
300
Editor's Rating
3.25/5
3.25 out of
5 Stars
Pros & Cons
Pros
Small minimum loan amounts
No prepayment penalty
Quick loan fund disbursement
Cons
Only three and five year terms
Potential for high origination fees
Highlights
More Information
Loan amounts range from $1,000 to $50,000. However, borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100
Loan term lengths are either 3 or 5 years
Can have origination fees up to 8%
Considers employment and education history when making loan approval decisions
Loans are made through one of several Upstart-powered bank partners
Fair Credit Personal Loan Frequently Asked Questions
How can I get a personal loan with fair credit?
Your credit score determines what loans you can get. To get a personal loan with fair credit (generally defined as a credit score between 630 to 689, you'll have to fill out an application and see if you qualify. If you don't, take steps to improve your credit score or add a cosigner.
Can I get a personal loan with a fair credit score?
Yes, many lenders offer personal loans for fair credit. All of the lenders on our list have options for borrowers with credit scores on the lower end of the scale. Improving your credit score will likely get you more favorable loan terms.
Can I get a $5,000 loan with fair credit?
While qualifications will differ among lenders, it is possible to get a $5,000 loan with fair credit. Remember, though, that the lower your credit score, the higher you're interest rate will be on a personal loan for fair credit.
What are alternatives to personal loans for fair credit?
There might be cheaper avenues available if you aren't comfortable taking out a personal loan, including asking friends or family, getting a paycheck advance, or applying for a credit card.
Best Fair Credit Personal Loan Company Reviews
PenFed Credit Union Personal Loans
PenFed allows you to add a co-borrower to your application. If you don't have the best credit and are concerned your lender might not approve your loan as a result, you can choose to enlist a co-borrower and may qualify for a better rate.
What to watch out for: Membership requirements. You need to join the credit union to take out a loan. Members of the military and employees of qualifying organizations will be eligible, but if you don't qualify, you can join by opening a savings account with a $5 minimum deposit.
Upgrade's has some of the smallest loan amounts available among the lenders on the list. You can borrow as little as $1,000. Other than Upgrade, credit unions are probably your only other option for such a small amount. If you just need a bit of cash to tide you over, Upgrade is a good choice.
Avant offers quick access to personal loan funds. If your loan is approved by 4:30 p.m. CT Monday through Friday, funds are generally deposited by the next business day, per the company's website.
What to look out for: High fees. You'll pay an administration fee of up to up to 4.75% in administration fees with an undisclosed late fee and returned payment fee.
Navy Federal has no origination fees or prepayment penalties. This could save you money on the overall cost of your loan, and other lenders on our list charge these fees.
What to watch out for: Membership requirements. It's relatively hard to qualify for Navy Federal membership. You're only eligible if you are active military member, veteran, employee or retiree of the Department of Defense, or family member of someone in one of those groups.
Lending club accepts loan applications with co-borrowers. If you have poorer credit and are worried your loan might not be approved as a result of your standing, you can choose to add a co-borrower and may qualify for a better rate.
What to watch out for: Slower access to funds. You'll get access to your funds within two to four business days, and while that is relatively fast, you can get funds deposited more quickly from other personal loan companies.
Upstart relies on more than credit scores and credit history when deciding whether or not to approve loan applications. For people who have struggled with credit in the past, Upstart will factor in a few other pieces of information for a better shot at approval, including employment history and education history.
What to watch out for: Limited repayment terms. While other lenders offer several options on how long you'll have to repay, Upstart only offers three-year and five-year terms. This choice could be impractical for borrowers on either extreme of the borrowing scale. However, there is no prepayment penalty, so you can pay your loan off at any time without a fee.
Best Egg's high customer satisfaction makes it a standout personal loan lender. Best Egg has a 95% customer satisfaction rate, which is supported by its stellar A+ Better Business Bureau trustworthiness score.
What to watch out for:Origination fees. You'll face an origination fee between 0.99% and 5.99%, which is baked into your APR. On a loan term of four years or longer, the origination fee will be between late fee of $15.
Other Personal Loans for Fair Credit We Considered
Rocket Loans Personal Loan: While Rocket Loans has fast funding and a competitive minimum APR, the lender's loans also come with multiple types of fees, limited repayment terms, and inaccessibility to borrowers in some states. Additionally, the company's recommended minimum credit score is 650.
OneMain Financial Personal Loan: This lender has no minimum credit requirement, but comes with extremely high fees and starting interest rates. It may be an option of last resort for borrowers who don't qualify elsewhere.
LendingPoint Personal Loan: LendingPoint has a low credit score minimum of 580, but has a low maximum loan amount and comes with hefty origination fees.
Personal Loans for Fair Credit Lender Trustworthiness
To help you decide on a lender, we've compared each institution's Better Business Bureau score. The BBB measures businesses based on factors like their responsiveness to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:
Lender
BBB Grade
Upgrade Personal Loan
A+
Avant Personal Loan
A+
Best Egg Personal Loan
A+
LendingClub Personal Loan
A-
Navy Federal Credit Union Personal Loan
NR
Upstart Personal Loan
A+
PenFed Credit Union Personal Loan
A+
Payoff Loan™
A+
All of our top picks are rated A- or higher by the BBB, with the exception of Navy Federal. Navy Federal is not rated because the credit union is in the process of responding to formerly closed complaints. Previously, the business had an A+ rating from the BBB.
There is one recent controversy related to Navy Federal. A Navy Federal employee alleged that the lender pressured mortgage underwriters to approve loans even without proper reason to believe applicants could pay back the loans. She then filed a lawsuit and said Navy Federal retaliated against her whistleblowing by changing her job duties. She dropped the case in late 2020.
If Navy Federal's history bothers you, you may feel more comfortable with another lender on our list.
Keep in mind that a high BBB score does not guarantee a positive relationship with a lender, and that you should continue to do research and talk to others who have used the company to get the most comprehensive information possible.
How to Choose the Best Fair Credit Personal Loan
To get the best fair credit personal loan, think about what means the most to you. Many borrowers focus on the lowest interest rate, but also think about any fees, the minimum credit score needed, and the accessibility of the lender's customer service. You'll also want to make sure you're able to select a term length that works for you and that the lender you pick allows your reason for your loan.
You'll want to understand if you qualify for a loan or if you may need to add a cosigner to boost your chances of being eligible. See if you can prequalify for a personal loan to compare offers without a hard inquiry on your credit, too. Guides like this one will help you weigh multiple lenders to compare their pros and cons. Make sure to also read individual reviews of any lenders you're considering.
Why You Should Trust Us: Our Methodology
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
Interest rate (20% of rating)
Fees (20% of rating)
Term lengths and loan amounts (15% of rating)
Funding speed (15% of rating)
Borrower accessibility (15% of rating)
Customer support (7.5% of rating)
Ethics (7.5% of rating)
Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.
OneMain Financial Personal Loan disclosure: Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral) and your state of residence. If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loanfees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: $3,100. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers in these states are subject to these maximum loan sizes: North Carolina: $9,000 for unsecured loans to all customers, $9,000 for secured loans to present customers. Maine: $7,000. Mississippi: $15,000. West Virginia: $14,000. Loans to purchase a motor vehicle or powersports equipment from select Maine, Mississippi, and North Carolina dealerships are not subject to these maximum loan sizes. Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07. Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.
Ryan Wangman was a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe. Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services here >>
Elias Shaya is a junior compliance associate on the Personal Finance Insider team based in New York City.Personal Finance Insider is Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that readers already know and love. The compliance team's mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions.The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up to date and accurate.He joined Insider in February 2022 as a fellow on the compliance team.Elias has a Bachelor of Science in International Business from the CUNY College of Staten Island. Prior to joining Insider, he volunteered at the New York Presbyterian Hospital, where he worked with the biomedical engineering department. In his spare time, Elias enjoys exploring new restaurants, traveling to visit his family in Lebanon, and spending time with friends.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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