Dori Zinn has been a personal finance journalist for more than a decade. Aside from her work for Bankrate, her bylines have appeared on CNET, Yahoo Finance, MSN Money, Wirecutter, Quartz, Inc. and more. She loves helping people learn about money, specializing in topics like investing, real estate, borrowing money and financial literacy.
Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information.
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What To Know First
Seventeen percent of Americans have a fair credit score, or a FICO score between 580 and 669, according to Experian. With a less-than-stellar score, you might have a hard time finding ways to borrow money. Luckily, personal loans for fair credit are available. We’ve named the best fair credit loans below.
Methodology
To select the top personal loan lenders, Bankrate considered factors that help consumers decide whether a lender is a good fit for them, such as credit requirements and minimum APRs. We sought lenders with low fees and a range of loan amounts for borrowers with varying budgets and credit profiles. We also looked for conveniences like online applications and fast funding.
In addition, the lenders featured here were evaluated for notable features like customer discounts and flexible repayment options.
The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.
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Bankrate’s scores for personal loan lenders evaluate 11 data points related to loan costs and terms, as well as customer experience.
The annual percentage rate (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
The range of loan amounts that a lender will service. The maximum value is the largest amount a lender will give although this amount may not be available to borrowers who don’t have good or excellent credit. Amount ranges may vary for non-loan products. Term refers to the amount of time you have to repay the loan.
The minimum credit score typically required to qualify for a loan with a given lender. Exact thresholds are not always disclosed by a lender and in certain cases the minimum score is the best estimate based on publicly available information. Credit score refers to FICO 9.0 unless otherwise stated.
Personal loans up to $50,000 with low fixed rates that will never change
Affordable monthly payments that fit your budget and no prepayment penalties
Fast funding, money is sent to your bank account within a day of clearing any verifications
No obligation and no impact to your credit score when you check your rate
Use your loan through Upgrade to pay on high interest credit cards, make a large purchase, finish that home improvement project, or almost any life event!
Personal loans made through Upgrade feature APRs of 5.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/.
**Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.
Get a personal loan up to $50,000 with a fixed APR from 5.99% to 35.99%,Get money in as little as one business day, upon approval and verification,Join more than 450,000 customers at a trusted company with an A+ BBB rating,Use it for almost anything: consolidate debt or other unexpected expenses
DISCLOSURE UPDATE AS OF 07.2021
Trustpilot TrustScore as of June 2020.
Best Egg personal loans, including the Best Egg Secured Loan, are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. "Best Egg" is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of "Best Egg" refer to "the Best Egg personal loan", "the Best Egg Secured Loan", and/or "Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan," as applicable.
The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank's policies. Loan amounts range from $2,000 - $50,000. Residents of Massachusetts have a minimum loan amount of $6,500; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99% - 35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99% - 5.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate.
You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Low fixed rates (with AutoPay) and no origination fees
Checking your rate will not affect your credit score
Simple online application and live customer support
Fixed rates from 6.99% APR to 22.28% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 1/18/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
No Fees. Ever. We don't deduct a sign-up fee from your loan amount.
Loans from $3,500 to $40,000 and fixed rates from 6.99% to 19.99% APR. Only the most creditworthy applications qualify for the largest loan amounts and lowest rates.
Discount when enrolled in Autopay
You may be required to have some of your funds sent directly to creditors to pay down certain types of unsecured debt
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose, our evaluation of your creditworthiness, your credit history, if we have recently declined your loan application and the number of loans you already have with us. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. You may be required to have some of your funds sent directly to creditors to pay down certain types of unsecured debt. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.
9 out of 10 customers would recommend Prosper to friends or family*
Co-borrower option available. Applying with a co-borrower could help improve your rates
Get your money in as few as 3 business days, your monthly payment stays the same
For example, a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.90. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers.
Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank, Member FDIC.
* Applications submitted on this website may be funded by one of several lenders, including: FinWise bank, a Utah-chartered bank Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates ("APR") may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. Loans are offered from $2,000 to $36,500, at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 60 months. Georgia loans have a minimum $3,500 loan amount. For a well-qualified customer, a $10,000 loan for a period of 48 months with an APR of 23.72% and origination fee of 6% will have a payment of $324.48 per month. (Actual terms and rate depend on credit history, income, and other factors.) Customers may have the option to deduct the origination fee from the disbursed loan amount if desired. The total amount due is the total amount of the loan you will have paid after you have made all payments as scheduled.
Personal and auto loans from $1,500-$20,000 (GA minimum $1,500 existing customers for new loans $3100 for others)
A quick decision on your loan request
Clear loan terms with no hidden fees and no prepayment penalties
Apply online, by phone or at your local branch.
Not all applicants will qualify for larger loan amounts or most favorable loan terms. 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). 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. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. 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 $300. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.
Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. New York: $20,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
Competitive rates from 9.95% - 35.99% APR and terms from 24 to 60 months
Checking your loan options has no impact to your credit score.
Fast Decisions, see your loan options in minutes
Funding as soon as next business day
*A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. Minimum loan amounts may vary by state. If approved, the actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. An administration fee of up to 4.75% will be deducted from the loan proceeds. Avant branded credit products are issued by Webbank, member FDIC.
The leader in the debt negotiation with over $10 billion in debt resolved and over 500,000 clients enrolled since 2002. Request a free debt consultation to find out if you could settle your debt for less than you currently owe. Get debt relief in as little as 24-48 months (Terms Apply).
Please Note: National Debt Relief does not offer loans. They provide professional debt relief services. You must have over $10,000 in unsecured credit card debt to qualify for debt relief assistance. Service is not available in: CT, GA, KS, ME, NH, SC, OR, VT, or WV.
Nearly 20 years of experience helping consumers resolve debt
Team of certified debt counselors who will review all options available to you. Pacific Debt Relief has been helping consumers since 2002. Zero up front fees - program costs are 100% contingent on your success.
Stilt is a mission-driven fintech company focused on providing credit to international students, immigrants and the underserved. We build products to improve financial inclusion and democratize access to the credit through providing accessible and reasonable personal loans.
Immigrants, international students, other visa
holders and those underserved by the traditional banking system often encounter many struggles while trying to build credit, apply for personal loans and build their financial future. Stilt’s services allow them to take a step forward in their path to financial health by applying for a personal loan with a unique qualifying process like Stilt’s.
Stilt is focused on improving financial inclusion and access to credit at reasonable rates.
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The Bankrate guide to choosing the best personal loan for fair credit
Why trust Bankrate?
At Bankrate, our mission is to empower you to make smarter financial decisions. We’ve been comparing and surveying financial institutions for more than 40 years to help you find the right products for your situation. Our award-winning editorial team follows strict guidelines to ensure the content is not influenced by advertisers. Additionally, our content is thoroughly reported and vigorously edited to ensure accuracy.
When comparing the best loans for people with fair credit, the first thing to look for is the lender’s minimum credit score requirement. Then, it’s important to compare interest rates across multiple lenders; unsecured loans for fair credit tend to carry higher APRs than loans for good or excellent credit, so shopping around is critical. Also, before deciding on a lender, make sure it offers flexible repayment terms and keeps fees to a minimum.
Loan details presented here are current as of the publication date. Check the lenders’ websites for more current information. The lenders listed below were selected based on factors such as credit requirements, APR, loan amounts and fees. To learn more, read our methodology section.
Overview:Avant targets bad- and fair-credit borrowers. Most of its borrowers have credit scores between 600 and 700, which covers much of the range for fair credit.
Why Avant is best for very low credit: While Avant doesn't advertise its eligibility requirements on its website, a representative says the lender requires a 580 FICO score and 550 Vantage score.
Pros
No prepayment penalty
Mobile app available
Low minimum credit score
Cons
Cosigners not allowed
High APRs
Origination fee
Who lender is best for: Avant has a low minimum borrowing amount of $2,000, making it an ideal lender for borrowers who want to take out a smaller loan.
Impact on fair credit borrowers: Avant’s lower borrowing range and credit score requirements may make it easier for fair credit lenders to get the money they need quickly. However, Avant loans come with fees and a high minimum APR of 9.95 percent. Make sure you know what APR you qualify for and are aware of potential fees before signing off on a loan.
Time to receive funds: Borrowers can expect to receive funds as soon as the next business day after approval.
Fees: Personal loans from Avant come with an origination fee of up to 4.75 percent, a $25 late payment fee and a dishonored payment fee of $15.
Additional requirements: Borrowers must have a minimum credit score of 580 to qualify.
Overview:Best Egg offers personal loans to borrowers with credit scores ranging from fair to excellent. Terms are three to five years.
Why Best Egg is best for home improvements: Loan amounts range from $2,000 to $50,000, making them ideal for home improvement expenses from repairs to remodeling projects.
Pros
Wide range of loan amounts
No prepayment penalty
Unsecured and secured loans available
Cons
Origination fee
Limited repayment terms
Not available in all states
Who lender is best for: Best Egg is a good option for borrowers who want to be able to access online resources and financial tools. Best Egg’s website provides a lot of financial resources for borrowers.
Impact on fair credit borrowers: Best Egg’s flexible loan amounts and relatively low minimum APR of 5.99 percent make this lender a financially sound option for many borrowers. However, Best Egg charges an origination fee up to 5.99 percent, and APRs go as high as 35.99 percent. Fair credit borrowers should be wary of high interest and added costs.
Time to receive funds: Borrowers can expect to receive funds as soon as the next business day after approval.
Fees: Best Egg charges an origination fee of 0.99% to 5.99%, as well as a late fee of $15 and a returned payment fee of $15.
Additional requirements: Borrowers must have a minimum credit score of 640 and a debt to income ratio of 30 percent or less.
Overview:Upgrade offers loans ranging from $1,000 to $50,000 for a variety of purposes, like an emergency or debt consolidation.
Why Upgrade is best for fast funding: Once you’re approved for a loan and your information is verified, you could receive your funds within one business day.
Pros
Low minimum APR
Allows joint applications
Rate discount for checking account customers
Cons
Origination fee
No co-signers allowed
Late fee and returned check fee
Who lender is best for: Upgrade is best for borrowers looking for a small- to medium-sized loan, with a borrowing range from $1,000 to $50,000.
Impact on fair credit borrowers: Upgrade’s low minimum APR and flexible loan amounts make it a great option for borrowers who will qualify for the lowest APRs. However, borrowers should be aware of added fees and potentially high interest.
Time to receive funds: Borrowers can expect to receive funds within one business day of approval.
Fees: Upgrade charges an origination fee of 2.9 percent to 8 percent, as well as a late fee of up to $10 and a returned check fee of $10.
Additional requirements: Upgrade does not specify its eligibility requirements on its website, but the lender will consider your credit and overall financial health before approving a loan.
Overview: If you’re facing a mountain of credit card debt, you might be best suited for a Payoff personal loan for debt consolidation.
Why Payoff is best for credit card debt: Payoff’s loans are exclusively for consolidating credit card debt, and the company provides your FICO score for free each month to help you track your progress.
Pros
No late fee or prepayment penalty
Money management tools on website
Low minimum credit score
Cons
Funding takes up to 3 days
Origination fee
Can only be used for credit card debt consolidation
Who lender is best for: Payoff is best for borrowers who want attentive customer service. Payoff has customer phone support 7 days a week, as well as an online chat feature on its website.
Impact on fair credit borrowers: Since Payoff is designed to help people get out of debt, its maximum APR is low and it comes with few associated fees. A loan from Payoff could be a great way to get a handle on your credit card debt.
Time to receive funds: Borrowers can expect to receive funds within 3 days of approval.
Fees: Payoff charges an origination fee of up to 5 percent.
Additional requirements: Borrowers must have a FICO credit score of 550 or higher, as well as zero delinquencies on current debts to qualify.
Overview: While Upstart evaluates your credit score to determine your creditworthiness, it’s not the company’s only method. It will also consider your education and job history, which might be helpful if you’re struggling to qualify for a personal loan based on your credit score.
Why Upstart is best for short credit history: You can apply for a personal loan even with little credit on your report, and Upstart has no minimum credit score requirement.
Pros
Option to choose and change payment date
Low minimum APR
Fast funding
Cons
Origination fee
High maximum APR
Cosigners not allowed
Who lender is best for: Upstart is best for borrowers who want the ability to pay their loan off early. This lender has a wide borrowing range from $1,000 to $50,000 and does not charge a fee for making payments early.
Impact on fair credit borrowers: Upstart presents a unique opportunity for borrowers with limited credit history to get into lending. However, Upstart’s maximum APR is fairly high at 35.99 percent. Make sure you know what APR you qualify for before signing on.
Time to receive funds: Borrowers can expect to receive funds as soon as one business day after approval.
Fees: Upstart charges an origination fee up to 8 percent, as well as a $15 check refund fee and a $10 fee for switching from eSign to paper.
Additional requirements: Borrowers must be at least 18 years old, have a U.S. residential street address, a valid email address, a full time job, a U.S. bank account and a verifiable social security number to qualify. Borrowers also need either a minimum credit score of 300 or insufficient credit history to apply.
Overview:LendingClub offers personal loans of $1,000 to $40,000 for three- or five-year terms.
Why LendingClub is best for availability in most states: While some lenders only operate in a limited number of states, LendingClub accepts applications from borrowers in every part of the United States.
Pros
Joint applications allowed
Option to change payment date
Low minimum credit score
Cons
Only two repayment period options
Origination fee
High minimum APR
Who lender is best for: LendingClub is best for borrowers who will qualify for the lender’s lowest APRs. LendingClub has APRs from 7.04 percent to 35.89 percent, a fairly high range.
Impact on fair credit borrowers: LendingClub is accessible to fair credit borrowers with a minimum credit score of 600, and it does not charge any late fees until after a 15 day grace period. However, the starting APR of 7.04 is relatively high and borrowers should be aware of an origination fee of 3 to 6 percent.
Time to receive funds: Borrowers can expect to receive funds in as few as two business days after approval.
Fees: LendingClub charges an origination fee of 3 to 6 percent, as well as a late fee of $15 or 5%, whichever is greater.
Additional requirements: Borrowers must have a minimum credit score of 600 to qualify.
Overview: Prosper offers loans to borrowers with fair credit that’s on the higher side. The minimum credit score is 640, so if you’re still in the fair range but moving up, you might qualify.
Why Prosper is best for joint applications: Prosper accepts joint applications, and having a co-borrower could improve your chances of being approved for a loan or for a larger loan amount.
Pros
Option to change payment date
No prepayment penalty
Wide range of loan amounts
Cons
Origination fee
High APRs
No same day approval
Who lender is best for: Prosper is best for borrowers who have good credit and will qualify for the lender’s minimum APR.
Impact on fair credit borrowers: Prosper is a great option for fair credit borrowers working toward good credit, particularly if you plan to have a cosigner on your loan. However, borrowers should be aware of Prosper’s high starting APR of 7.95, as well as a variety of fees.
Time to receive funds: Borrowers can expect to receive funds as soon as one business day after approval.
Fees: Proser charges an origination fee of 2.41 percent to 5 percent, a late fee of 5 percent or $15 (whichever is greater), an insufficient funds fee of $15, and a check fee of 5 percent or $5 (whichever is less).
Additional requirements: Borrowers must have a FICO score of at least 640, some proof of income, debt to income ratio of 50 percent or less, at least three open trades on your credit report, fewer than five credit bureau inquiries within the last six months, and have not filed for bankruptcy in the last 12 months to qualify.
Overview: FreedomPlus offers loans of $7,500 to $50,000, with funding in as few as 48 hours.
Why FreedomPlus is best for competitive interest rates: Whereas its maximum APR is 29.99 percent, some personal loan lenders charge as much as 36.00 percent.
Pros
Joint applications allowed
Low maximum APR
No prepayment penalty
Cons
High minimum loan amount
Origination fee
High minimum APR
Who lender is best for: FreedomPlus is a great option for borrowers who want to borrow a larger amount since the minimum borrowing amount is $7,500.
Impact on fair credit borrowers: FreedomPlus has a low maximum APR of 29.99 percent, meaning borrowers won’t have to worry about paying an unmanageable interest rate. However, FreedomPlus has a high minimum APR of 7.99 percent as well as a high minimum borrowing amount. Borrowers looking for a lower starting APR or a lower minimum loan amount should look elsewhere.
Time to receive funds: Borrowers can expect to receive funds within 48 hours of approval.
Fees: FreedomPlus charges an origination fee of 1.99 percent to 4.99 percent.
Additional requirements: FreedomPlus does not specify eligibility requirements on its website.
Overview: While Discover accepts borrowers with fair credit, it favors those on the higher end of the fair-credit spectrum; borrowers typically have credit in the mid-600 range to qualify for a personal loan. If you’re on the lower end of fair credit, you may not qualify.
Why Discover is best for long repayment terms: Its relatively long repayment terms — up to seven years — could mean lower monthly payments.
Pros
No origination fee
Mobile app available
Flexible repayment term options
Cons
Cosigners not allowed
High late fee
High minimum credit score
Who lender is best for: Discover is best for good credit borrowers looking for low interest rates. The lender’s maximum APR is 24.99 percent, lower than many lenders on this list.
Impact on fair credit borrowers: Discover personal loans come with fairly low APRs and flexible repayment term options, allowing for lower monthly payments. However, borrowers on the lower end of fair credit may not qualify and the lender charges a steep late fee.
Time to receive funds: Borrowers can expect to receive funds as soon as the next business day after approval.
Fees: Discover charges a late fee of $39.
Additional requirements: Borrowers must have a minimum credit score of 660 and a minimum income of $25,000 to qualify.
Overview: PenFed is a credit union offering unsecured personal loans of up to $50,000. Its loan eligibility requirements are undisclosed, but third-party sources claim credit score requirements hover in the mid-600s.
Why PenFed is best for credit union members: Anyone can join PenFed, and it serves all 50 states and Washington, D.C.
Pros
No origination fee
Low maximum APR
Joint applications accepted
Cons
Eligibility requirements not disclosed online
Must be a credit union member to apply
High late fee
Who lender is best for: PenFed is a great option for borrowers who want to take out a small loan since the minimum loan amount is $600.
Impact on fair credit borrowers: PenFed has an extremely low maximum APR of 17.99 percent and offers a wide range of loans with flexible repayment options. While PenFed only charges two fees, its late fee of $29 and returned check fee of $30 are a bit steep.
Time to receive funds: Borrowers can expect to receive funds within two business days of approval.
Fees: PenFed charges a late fee of $29 and a returned check fee of $30.
Additional requirements: You must be a PenFed credit union member to apply.
Overview:LendingPoint specializes in loans for subprime borrowers, with loan amounts of $2,000 to $36,500.
Why LendingPoint is best for subprime borrowers: You could get a loan with a credit score as low as 600, which is in the range of fair credit.
Pros
No prepayment penalty
Low minimum credit score
Option to change payment date
Cons
Cosigners not allowed
Origination fee
High maximum APR
Who lender is best for: LendingPoint is a great option for borrowers who want the flexibility of changing their payment date or making payments early.
Impact on fair credit borrowers: LendingPoint is accessible to borrowers with low credit and provides small loans with terms up to 5 years. However, this lender’s maximum APR of 35.99 percent is fairly high and it charges an origination fee of up to 6 percent.
Time to receive funds: Borrowers can expect to receive funds as soon as the next business day after approval.
Fees: LendingPoint charges an origination fee of up to 6 percent.
Additional requirements: Borrowers must have a minimum credit score of 600 and a minimum annual income of $35,000 to qualify.
Overview: Despite a minimum credit score requirement of 700, LightStream has personal loan options to cover all your borrowing needs.
Why LightStream is best for a wide range of repayment terms: Depending on how much you borrow, you can take up to 7 years to pay off your loan.
Pros
No fees
Same day funding
Low maximum APR
Cons
High minimum credit score
High minimum loan amount
Requires a long credit history
Who lender is best for: Lightstream is best for borrowers who want to take out a large sum of money since the maximum loan amount is $100,000.
Impact on fair credit borrowers: LightStream requires a minimum credit score of 700, meaning many fair credit borrowers may not qualify. For those who do qualify, LightStream offers a low rate cap, no fees and a variety of loan amount and repayment options.
Time to receive funds: Borrowers can expect to receive funds the same day they are approved.
Fees: LightStream does not charge any additional fees.
Additional requirements: Borrowers must have a minimum credit score of 700 to qualify.
Overview: National Debt Relief is a debt settlement company that negotiates with creditors to decrease your overall debt. Customers with at least $7,500 of unsecured debt qualify for its debt settlement service.
Why National Debt Relief is best for debt settlement: It includes many resources on its website to help customers understand their options, and it has a proven track record of significantly decreasing debt.
Pros
Offers money-back guarantee
Free initial consultation
Positive customer reviews
Cons
No guarantee all debts will be resolved
Initial damage to credit score
Closing costs from 15 to 25% of total debt
Who lender is best for: National Debt Relief is best for borrowers who are overwhelmed with unsecured debt and need someone to negotiate on their behalf.
Impact on fair credit borrowers: National Debt Relief could help customers significantly reduce debt, but the process causes initial damage to your credit score. There is also no guarantee that your creditors will work with a debt settlement company.
Time to settle debt: Customers can expect their debts to be settled between 24 to 48 months of signing on.
Fees: National Debt Relief charges a closing fee from 15 to 25 percent of your original debt balance.
Additional requirements: Customers must have at least $7,500 of unsecured debt and be able to make monthly payments to qualify.
Overview: Pacific Debt Inc. offers debt consolidation loans up to $100,000 with APRs starting at 4.99 percent. This debt relief company matches you with lenders when you apply and you get to choose the best offer.
Why Pacific Debt Inc. is best for debt consolidation: Its loan match program is specifically designed for debt consolidation.
Pros
Easy to compare lenders
Wide loan amount range
Online tools and features
Cons
Actual rates and fees depend on the lender you choose
No guarantee of being matched with a lender
Who lender is best for: Pacific Debt Inc.'s debt consolidation loans are best for borrowers who do not know where they qualify and want to be matched with a lender.
Impact on fair credit borrowers: Submitting an application allows you to compare lender offers without submitting multiple applications and hurting your credit score.
Time to receive funds: Fund delivery speed depends on the individual lender.
Fees: Pacific Debt Inc. does not charge any fees for this service, but the lender you choose may charge additional fees.
Additional requirements: Pacific Debt Inc. does not specify any requirements to use the lender match service on their website.
Having fair credit means that you have some credit history but a moderately low credit score. People with fair credit typically have credit scores ranging from 580 to 669.
If you have a 600 credit score, for instance, you may have missed a few payments or you might carry a high balance on your credit cards. You may still qualify for a loan, but only with select lenders. If you do qualify, you might not get the lowest interest rate available. Those are reserved for people who have excellent credit.
Lenders that offer personal loans for fair credit may charge more or higher fees than lenders that target borrowers with good or excellent credit. This means that in addition to repaying your principal balance and interest, you might be on the hook for more money over the life of your loan.
Not all lenders offer loans to borrowers with fair credit since it's seen as a greater risk to the lender. However, many lenders will consider credit scores in the low 600s, though they'll likely charge higher interest rates.
Explore lenders that advertise fair credit scores before you apply. Additionally, check out lenders that offer prequalification. Prequalification lets you share some information with the lender but doesn’t result in a hard credit check, which would temporarily cause your credit score to dip. It also lets you see if you’re eligible for a loan from a particular lender.
What are the best personal loans for fair credit?
It's critical to choose a reputable lender for a fair-credit loan. In your search, you may encounter payday lenders or other predatory lenders, which advertise no-credit-check loans in exchange for extremely high APRs and fees. If you see a loan offer that's too good to be true or that has very short repayment terms or APRs in the triple digits, it's best to steer clear.
The best personal loans for borrowers with fair credit, such as those with a 600 credit score, generally come with APRs between 10 percent and 30 percent, few fees and a variety of repayment terms. The lenders profiled on this page are good places to start. They are reputable companies with loans for a variety of needs.
How to qualify for a loan with fair credit
To improve your chances of obtaining a personal loan with fair credit, try taking the following steps before you apply:
Use a co-signer: While a co-signer adopts some responsibility for your loan — and therefore some risk — they may also make it easier for you to qualify. Choosing a co-signer with good credit will improve your overall creditworthiness.
Prequalify: If you're unsure if you'll qualify for a loan with a particular lender, see if it offers prequalification. That way, you'll avoid harming your credit score even further before applying.
Pay down debt: Many lenders consider your debt-to-income ratio in addition to your credit score. By paying down credit card debt before applying for a loan, you'll look better to potential lenders.
Use a local bank or credit union: Your existing bank or a local credit union may be more lenient when it comes to your credit score, especially if you have a history of timely payments on your accounts.
How to improve your fair credit score
Raising your credit score will give you the best chance of qualifying for a personal loan with lower rates. Ways to improve your credit score include:
Pay off existing debt: Your credit utilization ratio makes up 30 percent of your FICO score. Lowering your total debt shows more responsible use of credit.
Make payments on time: Payment history makes up 35 percent of your credit score, so making late payments or missing payments altogether will tank your score.
Keep old accounts open and don't open new ones: Keeping old, unused accounts open raises the average age of your accounts, which makes up 15 percent of your credit score. Don’t open new credit accounts before applying for a loan, as that will lower the average age of your account.
How to choose a fair-credit lender
If you don’t have good or excellent credit, you might not find favorable lending terms for your personal loan needs. To find the best lender for you, keep an eye on the factors below.
Watch out for high interest rates
Many personal loan lenders advertise low APRs, but those rates are reserved for people with the best credit. With fair credit, you can expect higher APRs. When researching personal loan lenders, look for those that offer the lowest interest rates based on your credit score.
Assess fees and repayment terms
Find a lender that has minimal fees and flexible repayment terms, such as choosing your due date. Additionally, some lenders offer longer repayment terms that could reduce your monthly payment amount.
Find lenders that allow co-signers
If you can’t find a lender because of your fair credit score, search for one that allows co-signers. Also, consider waiting until you can boost your score.
Alternative loan options for fair credit
If you’re unable to take out a personal loan due to your fair credit, you may want to look at other options.
Credit union: While you usually have to join a credit union before taking out a personal loan, they tend to be more forgiving to those with fair credit. Talk to your local credit union about what you need to qualify.
0 percent APR credit card balance transfer: If you’re looking to pay off credit card debt, consider getting a credit card with a 0 percent APR introductory offer. That way, you can move your balance over and keep interest from adding up. Keep in mind that you might not qualify for the full balance to be moved over, so there’s a chance that you’ll end up paying off your new card while still making payments on your old one.
Home equity loan or line of credit: If you have a home, you may be able to use that as collateral and take out a home equity loan or home equity line of credit (HELOC). Remember, your home is used to secure the loan, so if you miss payments, the house could be subject to foreclosure.
