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Best Personal Loans for Fair Credit in March 2024

You may be able to qualify for a personal loan with fair credit, but expect to pay a higher rate.

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By Jessica Martel

Written by

Jessica Martel

Writer

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.

Edited by Jared Hughes

Written by

Jared Hughes

Editor

Jared Hughes is a personal loan editor for Credible and Fox Money, and has been producing digital content for more than six years.

Updated March 13, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances.

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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

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4.24.2

Credible rating

Fixed (APR)

7.49% - 25.49%

Loan Amounts

$5000 to $100000

Min. Credit Score

700

Check Rates

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

7.80% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

620

Check Rates

on Credible’s website

View Details

4.44.4

Credible rating

Fixed (APR)

-

Loan Amounts

$2500 to $40000

Min. Credit Score

660

Check Rates

on Credible’s website

View Details

4.64.6

Credible rating

Fixed (APR)

8.49% - 17.99%

Loan Amounts

$600 to $50000

Min. Credit Score

760

Check Rates

on Credible’s website

View Details

4.54.5

Credible rating

Fixed (APR)

8.49% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

600

Check Rates

on Credible’s website

View Details

4.94.9

Credible rating

Fixed (APR)

8.99% - 29.99%

Loan Amounts

$5000 to $100000

Min. Credit Score

Does not disclose

Check Rates

on Credible’s website

View Details

44

Credible rating

Fixed (APR)

8.99% - 35.99%

Loan Amounts

$2000 to $50000

Min. Credit Score

600

Check Rates

on Credible’s website

View Details

44

Credible rating

Fixed (APR)

9.57% - 35.99%

Loan Amounts

$1000 to $40000

Min. Credit Score

660

Check Rates

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

9.95% - 35.99%

Loan Amounts

$2000 to $35000

Min. Credit Score

550

Check Rates

on Credible’s website

View Details

4.34.3

Credible rating

Fixed (APR)

-

Loan Amounts

$5000 to $35000

Min. Credit Score

710

Check Rates

on Credible’s website

View Details

4.34.3

Credible rating

Fixed (APR)

11.69% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

560

Check Rates

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

11.72% - 17.99%

Loan Amounts

$3000 to $40000

Min. Credit Score

640

Check Rates

on Credible’s website

View Details

44

Credible rating

Fixed (APR)

-

Loan Amounts

$20000 to $200000

Min. Credit Score

660

Check Rates

on Credible’s website

View Details

3.73.7

Credible rating

Fixed (APR)

14.30% - 35.99%

Loan Amounts

$3500 to $40000

Min. Credit Score

640

Check Rates

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

18.00% - 35.99%

Loan Amounts

$1500 to $20000

Min. Credit Score

540

Check Rates

on Credible’s website

View Details

All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms

Best 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.

Best for fair credit

Upgrade

4.5

Credible Rating

Check Rates

on Credible’s website

Est. APR

8.49 - 35.99%

Loan Amount

$1000 to $50000

Min. Credit Score

600

Pros and cons

More details

Best Close Rates if Pre-approved

Best Egg

4

Credible Rating

Check Rates

on Credible’s website

Est. APR

8.99 - 35.99%

Loan Amount

$2000 to $50000

Min. Credit Score

600

Pros and cons

More details

Best online experience

LendingClub

4

Credible Rating

Check Rates

on Credible’s website

Est. APR

9.57 - 35.99%

Loan Amount

$1000 to $40000

Min. Credit Score

660

Pros and cons

More details

Best for no origination fees (and low rates)

Discover Personal Loans

4.4

Credible Rating

Check Rates

on Credible’s website

Est. APR

-

Loan Amount

$2500 to $40000

Min. Credit Score

660

Pros and cons

More details

Best for large personal loans

BHG Money

4

Credible Rating

Check Rates

on Credible’s website

Est. APR

-

Loan Amount

$20000 to $200000

Min. Credit Score

660

Pros and cons

More details

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.