A personal loan may allow you to borrow money at a reasonable rate and pay it back with fixed monthly payments. The catch: You need to meet credit score requirements to qualify.
With a fair credit score, you could qualify for personal loans to pay for debt consolidation, home improvement or other expenses. They could be a better option than credit cards, which may charge higher interest rates than personal loans, and payday loans, where you risk falling into a cycle of debt all too easily. Here’s what you need to know about getting a personal loan for fair credit.
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Lender |
Learn More |
APR |
Max. Loan Amount |
Min. Credit Score |
|---|---|---|---|---|
 |
As low as 10.49% | $50,000 | Not disclosed | |
 |
7.74% to 17.99% | $50,000 | 650 | |
 |
6.99% to 24.99% | $35,000 | 660 | |
 |
7.99% to 23.43% | $100,000 | Not disclosed | |
 |
6.99% to 24.99% | $40,000 | 660 | |
 |
6.50% to 35.99% | $50,000 | 300 | |
 |
8.99% to 29.99% | $40,000 | Not disclosed | |
 |
8.99% to 35.99% | $50,000 | Not disclosed | |
 |
8.99% to 21.49% | $50,000 | 660 | |
 |
6.49% to 14.04% | $35,000 | Not disclosed |
If you need money fast, Alliant Credit Union typically makes same-day online personal loans between $1,000 and $50,000. The $14 billion Chicago-based credit union, founded in 1935, is one of the biggest in the nation, with 600,000 members. In addition to personal loans, Alliant offers home and auto loans, credit cards, checking and savings accounts, individual retirement accounts, trust accounts, and insurance policies.
Although PenFed Credit Union – officially Pentagon Federal Credit Union – serves members of the armed forces, military associations, veterans and retirees, and their families, a military connection is not required to become a member. The credit union offers personal loans for eligible members and eligible co-borrowers in all 50 states, as well as in Guam, Puerto Rico and Okinawa, Japan.
Discover is a digital bank and payment services company known for its credit cards. But Discover also offers other products, including fixed-rate personal loans of up to $35,000 to borrowers nationwide. The lender charges no fees as long as you pay on time.
SoFi, short for Social Finance, offers personal loans of up to $100,000 to borrowers with very good to excellent credit. The nationwide lender was founded in 2011 and is known for offering loans with no fees. In addition to personal loans, SoFi offers student loans, auto and student loan refinancing, home loans, and small-business financing.
Marcus is the consumer bank and lending arm of investment bank Goldman Sachs. Established in 2016, the lender offers personal loans of up to $40,000.
Upstart is a lending platform that uses artificial intelligence to improve access to affordable credit. Based in California and founded by former Google employees in 2012, Upstart also applies AI to reduce lending risks and costs for its bank partners. The lending intermediary provides unsecured personal loans from $1,000 to $50,000 to borrowers anywhere in the U.S. except West Virginia or Iowa.
Happy Money offers Payoff personal loans designed to consolidate credit card debt. It operates in all but two states and provides loans of up to $40,000. Happy Money is not a bank and instead works with lending partners that originate the loans. The California-based financial wellness company takes a psychological approach to money matters.
Best Egg is an online lender founded in 2014 that financial technology company Marlette Holdings Inc. owns and operates. Best Egg offers personal loans starting at $2,000 that can be used to cover medical bills, home remodeling and a variety of other expenses. Cross River Bank in New Jersey issues Best Egg loans, which can be funded in as little as one business day.
U.S. Bank has physical locations in more than 25 states and offers both short- and long-term personal loans with fixed annual percentage rates. Current customers may qualify to borrow up to $50,000 with a credit score of 660 or above, and options are available for noncustomers willing to open a checking or savings account.
PNC Bank can trace its history back to 1852 and the Pittsburgh Trust and Savings Co. Today, PNC Bank is the seventh-largest bank in the U.S., and it features a wide range of consumer and business banking services. Among its suite of products, PNC offers personal, unsecured installment loans up to $35,000. Applicants are considered based on satisfactory credit history, ability to repay and income.
Personal loan interest rates rose this week, trending higher for three-year and five-year loan terms. Here are the average personal loan rates offered to well-qualified applicants with a credit score of 720 or greater, as of Jan. 9:
- Three-year personal loan term: 17.23% (down from 19.05% a week ago).
- Five-year personal loan term: 18.64% (down from 20.9% a week ago).
Personal loan rates vary widely based on creditworthiness. Borrowers with very good or excellent credit scores will see much lower interest rates than those with fair or poor credit, as seen in the chart below:
Fair credit can be a barrier to approval with some personal loan companies, but not all. Lenders may rely heavily on your credit score to determine whether you’ll be approved for a loan and the terms they’re willing to offer, though that’s not the only thing lenders consider. A fair credit score is considered below-average credit and falls between 580 and 669 on the FICO scale. It’s a step up from bad credit.
“Lenders don’t always disclose whether they have a minimum credit score for applicants, but often they prefer to see a good or excellent credit history,” says Lauren Anastasio, financial advice director at Stash, a financial services firm.
You can get a loan with a 600 or 650 credit score, though it depends on the lender. One lender might set the bar at 620, while another might require a score of 680 for loan approval.
Even though your credit score may be weighted heavily when applying for a personal loan, it is not the only thing that matters. Lenders that work with fair credit borrowers will weigh other approval factors, such as your annual income.
Your credit score is just one metric personal loan lenders use to determine your creditworthiness, says Leslie Tayne, debt resolution attorney and founder and managing director of Tayne Law Group. “Lenders also take your credit history, income and debt-to-income ratio into consideration to determine their risk of lending to you,” she says.
Lenders typically want to confirm that you can afford the monthly payment if you’re approved for a personal loan. You will likely verify your income or employment, and some lenders have a minimum annual income requirement. Your current expenses may be considered, such as rent and debt payments.
If your credit report has some blemishes, you have a short credit history or your credit score is on the lower end of fair, you might still get approved for a personal loan. But you likely won’t qualify for the lowest interest rates or the full loan amount you requested.
“Having a low score doesn’t mean you won’t get approved for the loan, but it could mean that you’ll pay more for the loan,” Tayne says. Expect the loan company to charge you higher interest rates and fees than borrowers with good credit, who typically get approved for the best rates and loan terms. If you’re taking out a loan for debt consolidation, that could make it tough to secure a lower interest rate than what you’re paying on credit card debt.
Find the Personal Loan That’s Right for You
One way to boost your odds of personal loan approval, especially with a fair credit score, is to improve your credit score before you apply.
Get a copy of your credit report. Start by getting a free copy of your credit reports from the three major national credit bureaus: Experian, Equifax and TransUnion. You can get one from each bureau weekly at AnnualCreditReport.com through 2023. Your credit report summarizes your credit history, including details about unpaid debts and your track record of paying bills. Review for errors and omissions that may be impacting the score.
Reduce credit utilization. The amount of credit you’re using compared with the total credit you have available also affects your credit score. The higher the amount of credit card debt you carry, the lower your score. Aim to use no more than 30% of your total credit by paying down credit card debt or by asking for a credit limit increase on your revolving accounts.
Add a co-borrower. If you are struggling to get approved on your own, you may still have options. “Adding a co-borrower may increase your chances of approval as well as help you get a better rate and terms,” Anastasio says. A co-borrower or co-signer essentially uses his or her good credit history to vouch for your loan. But before you apply for a personal loan with a co-signer, make sure you know the risks, as co-signers are legally responsible for your debt.
Finding the right personal loan offers can give you the financial opportunity you need. The best personal loan for fair credit depends on your financial situation. Compare loan companies based on:
Rates. This is the most important factor to consider when you choose a loan, even with fair credit. Competitive interest rates can save you money, so shop around for the lowest rate. Keep in mind your actual rate depends on your credit score and other approval factors. Most lenders will allow you to check your estimated interest rate with a soft credit inquiry, which has no impact on your credit score.
Fees. Compare loan fees, including late fees and origination fees.
Loan type. Many lenders offer loans for credit card refinancing, also known as debt consolidation loans. If you’re looking for another type of loan, such as one that can cover home improvements or medical expenses, verify the lender allows you to use the funds for that purpose.
Credit score requirements. Check each lender’s minimum credit score requirement to make sure you can at least get your foot in the door.
Loan amounts. Some lenders set maximum and minimum loan amounts, and most have specific repayment terms or term lengths.
Disbursement. If speed is a factor, find out when you receive funds, which is sometimes as soon as the next business day.
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. Personal loan companies are evaluated based on customer service ratings, interest rates, maximum loan term, minimum and maximum loan amounts, minimum FICO score, online features, and origination fees.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks:
Best Personal Loans for Fair Credit of January 2023
Upgrade offers access to personal loans, the Upgrade card with a personal line of credit, rewards checking, and credit monitoring and educational tools. Founded in 2017 in San Francisco, the firm also has operations offices in Chicago, Phoenix and Montreal.
LendingUSA was founded in 2015 to be a lending solution for merchants. LendingUSA provides point-of-sale customer financing through more than 10,000 merchant partners in various sectors including medical services, pet services, funeral services and consumer services.
Rocket Loans offers personal loans to qualified borrowers in all 50 states. These loans are designed for people with fair to excellent credit who need to borrow up to $45,000 for debt consolidation, home improvements, medical expenses and business or other expenses.
Founded in 2005 and based in San Carlos, California, Oportun originates unsecured personal loans of up to $12,000 in 11 states. Loans are available in 30 additional states through Oportun’s partnership with Pathward, formerly known as MetaBank. The lender has no credit history requirement, making its loans an option for consumers with no credit or limited credit. In addition to unsecured personal loans, the lender offers secured personal loans to borrowers in Arizona, California, Florida, New Jersey and Texas.
LendingClub connects borrowers and investors through its online marketplace. LendingClub originated on Facebook and evolved into an extensive peer-to-peer lender, though it no longer offers peer-to-peer loans. Borrowers in all U.S. states can apply for $1,000 to $40,000 loans with LendingClub.
Chicago-based Avant has lent more than $6.5 billion to borrowers since its 2012 founding. In partnership with WebBank, Avant offers secured and unsecured personal loans and a credit card. The online lender helps borrowers with fair to excellent credit, or average scores from 600 to 800.
LendingPoint is an online lender specializing in unsecured personal loans from $2,000 to $36,500 for borrowers with fair credit. The Georgia-based lender issues loans with annual percentage rates of 7.99% to 35.99% and repayment terms of two to six years to people in every state but Nevada or West Virginia. Funds may be available as soon as the next business day after the lender approves the loan and receives all documents.
FreedomPlus is an online lender affiliated with Freedom Financial Network offering personal loans from $5,000 to $50,000 and promising quick approval and disbursal. A prospective borrower can apply online and talk with a loan consultant. All loans available through FreedomPlus are made by New Jersey-based Cross River Bank.
Prosper is a peer-to-peer lending marketplace that allows borrowers to apply online for fixed-rate, fixed-term loans from $2,000 to $50,000. Investors such as Sequoia Capital, Francisco Partners and Institutional Venture Partners provide backing for Prosper. Since its founding in 2005, Prosper has made possible more than $22 billion in loans. Prosper lends to borrowers with at least a 640 FICO score.
Universal Credit is an online lending platform that is powered by the fintech firm Upgrade, which has been in operation since 2017. Universal Credit is not a bank itself, but facilitates loans through its lending partners. It specializes in personal loans, especially for debt consolidation.
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who are advertising clients of U.S. News. Advertising considerations may impact
where offers appear on the site but do not affect any editorial decisions,
such as which loan products we write about and how we evaluate them. This site
does not include all loan companies or all loan offers available in the marketplace.