Whether you want to remodel your kitchen or consolidate debt, you can use a personal loan to fund almost anything. If you have fair credit, it can be difficult to get a good interest rate. But it’s possible, especially if you have a high income, a willing cosigner, or a low debt-to-income ratio (DTI), and compare lenders before applying.
Compare personal loan rates for fair credit in March 2024
Advertiser DisclosureOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — as of this writing, Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Note that unlike most lenders, Lightstream does not let you prequalify. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 12 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Read full reviewOverview
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Eligibility
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Read full reviewOverview
PenFed is a credit union that offers personal loans to applicants with good credit. Though you'll need to become a member to receive a loan, membership is open to everyone. PenFed shines with no origination fees, small available loan amounts, and low interest rates. If you don't have a FICO score above 700, you may not qualify on your own, but can apply with a cosigner with good credit — which is not something most lenders offer.
PenFed doesn't have a minimum income amount, and offers live chat and an entirely online loan application process.
Fees
Unsuccessful payment fee, late fee
Time to get funds
Typically 1 to 2 business days after verification
Loan uses
Debt consolidation, home improvement, credit card refinancing
Read full reviewOverview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full reviewOverview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number. Once you have a loan with SoFi, you may be eligible for unemployment protection and unemployment assistance.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Read full reviewOverview
Best Egg is a solid lender for a wide range of borrowers. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 6%.
Eligibility
Available in all 50 states
Time to get funds
Usually takes about 2 days
Loan uses
Debt consolidation, paying off credit cards
Read full reviewOverview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 4.75%, and its top-range interest rates are among the highest of the lenders we reviewed.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
Read full reviewOverview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 710). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Time to get funds
Same day available, typically 1-3 days
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewOverview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Eligibility
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Read full reviewOverview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Read full reviewFees
Origination Fee, $15 Late Fee, $25 NSF Fee
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
Read full reviewOverview
OneMain Financial has multiple options for bad-credit personal loans. The minimum credit score required is 540, which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full reviewBest personal loans for fair credit
If you have fair credit — a FICO score between 580 and 669 — you may be eligible for a personal loan with multiple lenders, but you can expect to pay a higher rate. The average APR for fair credit borrowers was between 27.03% and 29.50% in September of 2023, according to Credible prequalified data. Compare lenders to find the best rate for you.
Loan Amount
$1000 to $50000
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Best Close Rates if Pre-approved
Loan Amount
$2000 to $50000
Secured loans available
Low minimum income requirement
Funds in 1-3 business days
High close rate on loans through Credible platform
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Overview
Best Egg is a solid lender for a wide range of borrowers. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Loan Amount
$1000 to $40000
Mobile app
Low minimum income requirement
High close rate on loans made through Credible
Available in all states
Origination fee
No discounts
Only 3- and 5-year repayment terms available
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 6%.
Eligibility
Available in all 50 states
Time to get funds
Usually takes about 2 days
Loan uses
Debt consolidation, paying off credit cards
Best for no origination fees (and low rates)
Loan Amount
$2500 to $40000
Low minimum APR
May fund the next business day
Long loan terms available
Direct pay to creditors
No origination fee
No discounts offered
Secured loans not available
Overview
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Eligibility
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Best for large personal loans
Loan Amount
$20000 to $200000
Eligible applicants can borrow up to $200,000
Considers borrowers with fair credit
Long repayment terms
Cosigners allowed
Not available in MD or IL
No discounts
Minimum income required of $100,000 annually
Overview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Methodology
Credible evaluated the best personal loans for fair credit based on customer experience, interest rates and origination fees, loan amounts, funding times, loan terms, discounts, the availability of secured loans, whether cosigners are accepted, and more. Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.
Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.
What is fair credit?
Your credit score is a three-digit number that suggests your level of risk to lenders. FICO credit scores range from 300 to 850, with a lower score indicating a higher level of risk. A credit score between 580 and 669 qualifies as a fair score, according to FICO.
FICO score ranges include:
- Poor: less than 580
- Fair: 580-669
- Good: 670-739
- Very Good: 740-799
- Exceptional: 800+
Your credit score can vary depending on which of the three national credit bureaus (Equifax, Experian, or TransUnion) creates the credit report. Lenders and creditors don’t always report credit data to all three national credit bureaus. Instead, they may only report to one or two.
Personal loan interest rates for fair credit
The average personal loan interest rate for fair credit regularly fluctuates. In September 2023, the average annual percentage rate (APR) was between 27.03% and 29.50% for fair-credit borrowers, according to Credible prequalification data.
If you’re able to increase your credit score into the good range (a FICO score from 670 to 739), you could get an APR below 20% for a three-year loan. The difference between securing a personal loan with a good versus fair credit score can result in considerable savings.
Tip: The APR is a better indicator of the cost of the loan, since it considers the interest rate and upfront loan fees.
For example, if you take out a $15,000 personal loan with a five-year term at 28%, you can expect the following:
- Monthly payments: $467
- Total interest: $13,022
- Total payment: $28,022
Now, if you take time to build your credit to a good score, and you secure a lower rate at 19%, the $15,000 loan over five years will result in:
- Monthly payments: $389
- Total interest: $8,347
- Total payment: $23,347
That’s a difference of $78 in savings each month and $4,675 in overall savings. Use a personal loan calculator to estimate how much you can save on a personal loan if you increase your credit score.
Learn More: APR vs. Interest Rate on a Personal Loan
How to get a personal loan with fair credit
While it is possible to get a personal loan with fair credit, you may have a harder time qualifying, and you’ll likely have to pay a higher interest rate. There are a few things you can do to increase your chances of getting a personal loan with fair credit:
- Know your credit score: You can request a free copy of your credit report and credit score from the three national credit bureaus with AnnualCreditReport.com. Once you know your credit score, start researching lenders that require a minimum credit score below yours.
- Consider a secured loan: If you want a lower APR, consider a secured loan, also known as a collateralized loan. This is a loan that requires you to put up an asset as collateral. Putting up collateral lowers the lender's risk and can often help you get a better rate. If you default on your loan, however, you risk losing your collateral.
- Look for lenders that accept cosigners: Cosigners are often family members or good friends who agree to take responsibility if you do not pay your debt. Having a cosigner can help you qualify for a loan or get a better rate, as having a cosigner with a good credit score reduces the risk to the lender.
- Find lenders with low minimum credit score requirements: Another option is to look for lenders that offer personal loans to borrowers with low credit scores. In this case, you probably won’t find lenders offering the best rates, but you may be more likely to be approved without a cosigner or collateral.
How to improve your credit score
Securing a lower interest rate on a personal loan can help you save money. Before applying, consider taking some time to improve your score. This can increase your chance of qualifying for a better rate.
Your FICO score is calculated based on five main categories:
- Payment history (35%): Lenders want to know if you pay your bills on time.
- Amount owed (30%): This is also referred to as credit utilization. If you’re using most of your available credit, it can seem to lenders like you’re overextending yourself.
- Length of credit history (15%): Generally, the longer your credit history, the better.
- New accounts (10%): Opening multiple credit accounts in a short period can reduce your credit score.
- Types of credit used (10%): Lenders like to see a mix of credit cards, installment loans, and retail accounts.
To boost your score, consider the following tips:
- Pay your bills on time: Make sure you pay your bills on time, every time. Consider automating your bill payments to help ensure you never miss a deadline.
- Avoid maxing out your cards: Aim to use less than 30% of your available credit.
- Consolidate your debt: Consolidating high-interest credit card debt with a debt consolidation loan can increase the available credit on your credit cards, which can increase your score in a short period of time.
- Avoid closing old accounts: If you have old accounts that you no longer use, avoid closing them. The longer you have a credit account open, the better it can be for your credit history and credit utilization. But if you’re tempted to spend on the card when you shouldn’t, it may be better to close it.
- Avoid taking on new credit: To prevent your score from falling due to hard inquiries, only take out credit when you really need it.
- Refinancing: If you already have a personal loan, consider refinancing once you’ve improved your credit score to get a better rate.
Alternatives to fair-credit loans
If you’re struggling to qualify for a fair-credit loan or want to avoid paying high APRs, consider the following alternatives:
- Credit union: A credit union is a not-for-profit financial institution that is owned by its members. If you’re a member of a credit union, or open to becoming one, it is often easier to qualify for a personal loan than with a traditional lender like a bank. While the credit union will still consider your credit score, it also looks at other factors, such as your payment history with the union. In addition, most credit unions cap personal loan interest rates at 18%.
- Credit card: It is possible to qualify for a credit card with a fair credit score. However, you can expect to pay a higher rate than those with a good or excellent score. If you are careful to make your payments on time, this can help build your credit score over time.
- Credit-builder loan: If you need a loan up to $1,000 and can wait for the money, consider a credit-builder loan. With this type of loan, you make a series of payments, usually from 6 months to 2 years, and then receive the money. Your payments are reported to the credit bureaus and can help restore your credit score.
- Peer-to-peer lending: Using a peer-to-peer (P2P) lending platform, individual investors can lend money to other individuals. While it is often easier to access capital through P2P lending, interest rates can be higher than traditional bank loans for borrowers with low credit scores.
FAQ
What loans do I qualify for with fair credit?
If you have a fair credit score with regular income, you may be able to qualify for a personal loan. But you can expect to pay a higher interest rate than someone with a good or excellent credit score. You could also qualify for a payday loan or cash advance via an app or credit card, since none of them check your credit. But payday loans, in particular, can be very expensive and difficult to pay back.
Where can I find loans for fair credit?
Fair-credit loans may be available from credit unions, online lenders, and some banks. You can also find no-credit-check loans in the form of cash advance apps and payday loans, but APRs on these loans can be in the triple digits, depending on how high fees are and how quickly you’re required to repay the money.
What banks offer personal loans for fair credit?
Discover, TD Bank, and CITI all offer loans that you may qualify for with fair credit. However, if you have a cosigner, you may be able to qualify with Achieve, OneMain Financial, BHG Money, and PenFed. (OneMain and PenFed are Credible partners.) Many banks will allow you to check to see if you qualify for a personal loan using a soft credit check. A soft credit check won’t impact your credit score, but your score will be dinged when you formally apply for a loan.
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Meet the expert:
Jessica Martel
Jessica Martel is a professional researcher, freelance writer, and mother of two rambunctious little boys. She specializes in the areas of personal finance, financial literacy, and women and money.