Compare rates and terms among the best personal loans for fair credit.
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Last updated on May 14, 2024
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The best personal loans for fair credit offer low rates, a wide range of loan amounts and credit-building features such as free credit score access. Affordable monthly payments are key with fair-credit personal loans, because on-time payments help build your score.
You may have a harder time qualifying for a personal loan with a fair credit score — generally from 630 to 680 — but it's still possible. Here are the best personal loans for fair credit.
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NerdWallet's personal loans content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in consumer lending. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch and many other national, regional and local publications. They have been cited in publications including The Harvard Kennedy School, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.
Why trust NerdWallet
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
NerdWallet's personal loans content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in consumer lending. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch and many other national, regional and local publications. They have been cited in publications including The Harvard Kennedy School, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.
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Best Personal Loans for Fair Credit in 2024
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Est. APR ▾ ▾ | Loan amount ▾ ▾ | Min. credit score ▾ ▾ | Learn more |
|---|---|---|---|---|---|
Upgrade Visit Lenderon Upgrade's website on Upgrade's website Check Rateon NerdWallet on NerdWallet | 5.0 /5 Best for Debt consolidation loans for fair credit | 8.49-35.99% | $1,000-$50,000 | 560 | Visit Lenderon Upgrade's website on Upgrade's website Check Rateon NerdWallet on NerdWallet |
Achieve Personal Loans Visit Lenderon Achieve's website on Achieve's website Check Rateon NerdWallet on NerdWallet | 4.5 /5 Best for Joint fair-credit personal loans | 8.99-35.99% | $5,000-$50,000 | 620 | Visit Lenderon Achieve's website on Achieve's website Check Rateon NerdWallet on NerdWallet |
Prosper Check Rateon NerdWallet on NerdWallet | 4.5 /5 Best for Peer-to-peer personal loans for fair credit | 8.99-35.99% | $2,000-$50,000 | 560 | Check Rateon NerdWallet on NerdWallet |
Upstart Visit Lenderon Upstart's website on Upstart's website Check Rateon NerdWallet on NerdWallet | 🏆Top 3 most visited 4.5 /5 Best for Overall fair-credit personal loans Fast funding Flexible payments | 7.80-35.99% | $1,000-$50,000 | None | Visit Lenderon Upstart's website on Upstart's website Check Rateon NerdWallet on NerdWallet |
LendingPoint Visit Lenderon LendingPoint's website on LendingPoint's website Check Rateon NerdWallet on NerdWallet | 4.5 /5 Best for Fair-credit personal loans with fast funding | 7.99-35.99% | $2,000-$36,500 | 660 | Visit Lenderon LendingPoint's website on LendingPoint's website Check Rateon NerdWallet on NerdWallet |
Best Egg Visit Lenderon Best Egg's website on Best Egg's website Check Rateon NerdWallet on NerdWallet | 4.5 /5 Best for Secured fair-credit personal loans | 8.99-35.99% | $2,000-$50,000 | 600 | Visit Lenderon Best Egg's website on Best Egg's website Check Rateon NerdWallet on NerdWallet |
Happy Money Check Rateon NerdWallet on NerdWallet | 4.5 /5 Best for Credit card consolidation loans for fair credit | 11.72-17.99% | $5,000-$40,000 | 640 | Check Rateon NerdWallet on NerdWallet |
» COMPARE: See your bad-credit loan options
On this page…
How fair credit affects your personal loan rate
How to compare loans for fair credit
Where to get a personal loan with fair credit
How to get a personal loan with fair credit
How to improve fair credit
Alternatives to personal loans for fair-credit borrowers
Frequently asked questions
What is fair credit?
A fair credit score is generally from 630 to 689. Lenders can have their own definitions of fair credit, which may be informed by which credit scoring company they use to evaluate applications. FICO defines fair credit as 580 to 669, while VantageScore puts “near prime” scores between 601 and 660.
Some lenders review information from both companies to determine whether an applicant qualifies.
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How fair credit affects your personal loan rate
Your credit score is often a key factor that determines your personal loan rate, in addition to your income and outstanding debts. A low score due to missed payments on other loans or credit cards, or because you have a thin credit profile, may indicate to a lender that you could default on a new personal loan. Lenders make up for that risk by charging higher annual percentage rates.
Moving a fair score into the good credit range (generally 690 to 719) gets you access to a wider range of personal loan options and often lower rates.
Qualified borrowers may get the most affordable loans from federal credit unions because they cap APRs at 18%.
Here are average personal loan rates by credit score:
Borrower credit rating | Score range | Estimated APR |
Excellent | 720-850. | 12.37%. |
Good | 690-719. | 14.87%. |
Fair | 630-689. | 18.40%. |
Bad | 300-629. | 21.93%. |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from April 1, 2024, through April 30, 2024. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.
Calculate your fair-credit loan rate
Use this personal loan calculator to estimate your potential monthly payment, based on your loan amount, rate and repayment term.
Your loan estimateMonthly payment
$212.47
Total principal
$10,000.00Total interest payments
$2,748.23Total loan payments
$12,748.23Payoff date
05 / 2029
Show amortization schedule
| Payment date | Principal | Interest | Monthly payment | Principal balance |
|---|---|---|---|---|
| May 2024 | $129.14 | $83.33 | $212.47 | $9,870.86 |
| Jun 2024 | $130.21 | $82.26 | $212.47 | $9,740.65 |
| Jul 2024 | $131.30 | $81.17 | $212.47 | $9,609.35 |
| Aug 2024 | $132.39 | $80.08 | $212.47 | $9,476.96 |
| Sep 2024 | $133.50 | $78.97 | $212.47 | $9,343.46 |
| Oct 2024 | $134.61 | $77.86 | $212.47 | $9,208.85 |
| Nov 2024 | $135.73 | $76.74 | $212.47 | $9,073.12 |
| Dec 2024 | $136.86 | $75.61 | $212.47 | $8,936.26 |
| Jan 2025 | $138.00 | $74.47 | $212.47 | $8,798.26 |
| Feb 2025 | $139.15 | $73.32 | $212.47 | $8,659.11 |
| Mar 2025 | $140.31 | $72.16 | $212.47 | $8,518.80 |
| Apr 2025 | $141.48 | $70.99 | $212.47 | $8,377.32 |
| May 2025 | $142.66 | $69.81 | $212.47 | $8,234.66 |
| Jun 2025 | $143.85 | $68.62 | $212.47 | $8,090.81 |
| Jul 2025 | $145.05 | $67.42 | $212.47 | $7,945.76 |
| Aug 2025 | $146.26 | $66.21 | $212.47 | $7,799.51 |
| Sep 2025 | $147.47 | $65.00 | $212.47 | $7,652.03 |
| Oct 2025 | $148.70 | $63.77 | $212.47 | $7,503.33 |
| Nov 2025 | $149.94 | $62.53 | $212.47 | $7,353.39 |
| Dec 2025 | $151.19 | $61.28 | $212.47 | $7,202.20 |
| Jan 2026 | $152.45 | $60.02 | $212.47 | $7,049.74 |
| Feb 2026 | $153.72 | $58.75 | $212.47 | $6,896.02 |
| Mar 2026 | $155.00 | $57.47 | $212.47 | $6,741.02 |
| Apr 2026 | $156.30 | $56.18 | $212.47 | $6,584.72 |
| May 2026 | $157.60 | $54.87 | $212.47 | $6,427.12 |
| Jun 2026 | $158.91 | $53.56 | $212.47 | $6,268.21 |
| Jul 2026 | $160.24 | $52.24 | $212.47 | $6,107.98 |
| Aug 2026 | $161.57 | $50.90 | $212.47 | $5,946.41 |
| Sep 2026 | $162.92 | $49.55 | $212.47 | $5,783.49 |
| Oct 2026 | $164.27 | $48.20 | $212.47 | $5,619.22 |
| Nov 2026 | $165.64 | $46.83 | $212.47 | $5,453.57 |
| Dec 2026 | $167.02 | $45.45 | $212.47 | $5,286.55 |
| Jan 2027 | $168.42 | $44.05 | $212.47 | $5,118.13 |
| Feb 2027 | $169.82 | $42.65 | $212.47 | $4,948.31 |
| Mar 2027 | $171.23 | $41.24 | $212.47 | $4,777.08 |
| Apr 2027 | $172.66 | $39.81 | $212.47 | $4,604.42 |
| May 2027 | $174.10 | $38.37 | $212.47 | $4,430.32 |
| Jun 2027 | $175.55 | $36.92 | $212.47 | $4,254.76 |
| Jul 2027 | $177.01 | $35.46 | $212.47 | $4,077.75 |
| Aug 2027 | $178.49 | $33.98 | $212.47 | $3,899.26 |
| Sep 2027 | $179.98 | $32.49 | $212.47 | $3,719.28 |
| Oct 2027 | $181.48 | $30.99 | $212.47 | $3,537.81 |
| Nov 2027 | $182.99 | $29.48 | $212.47 | $3,354.82 |
| Dec 2027 | $184.51 | $27.96 | $212.47 | $3,170.31 |
| Jan 2028 | $186.05 | $26.42 | $212.47 | $2,984.25 |
| Feb 2028 | $187.60 | $24.87 | $212.47 | $2,796.65 |
| Mar 2028 | $189.17 | $23.31 | $212.47 | $2,607.49 |
| Apr 2028 | $190.74 | $21.73 | $212.47 | $2,416.75 |
| May 2028 | $192.33 | $20.14 | $212.47 | $2,224.42 |
| Jun 2028 | $193.93 | $18.54 | $212.47 | $2,030.48 |
| Jul 2028 | $195.55 | $16.92 | $212.47 | $1,834.93 |
| Aug 2028 | $197.18 | $15.29 | $212.47 | $1,637.75 |
| Sep 2028 | $198.82 | $13.65 | $212.47 | $1,438.93 |
| Oct 2028 | $200.48 | $11.99 | $212.47 | $1,238.45 |
| Nov 2028 | $202.15 | $10.32 | $212.47 | $1,036.30 |
| Dec 2028 | $203.83 | $8.64 | $212.47 | $832.47 |
| Jan 2029 | $205.53 | $6.94 | $212.47 | $626.93 |
| Feb 2029 | $207.25 | $5.22 | $212.47 | $419.69 |
| Mar 2029 | $208.97 | $3.50 | $212.47 | $210.71 |
| Apr 2029 | $210.71 | $1.76 | $212.47 | $0.00 |
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How to compare personal loans for fair credit
Here are the top features to compare on fair-credit loans.
Annual percentage rate
A personal loan APR is its interest rate plus any fees a lender charges. This is the best apples-to-apples cost comparison tool for personal loans and other financing options like credit cards. Lenders weigh your financial and credit information differently, so it pays to compare rates from multiple lenders.
» MORE: See this month’s average personal loan rates
Monthly payments
A lender should disclose the monthly payments before you sign a loan agreement — usually when you check your rate or once you’re approved. Aim for a monthly payment that leaves some extra room in your budget. Personal loans have fixed rates, so the monthly payment won’t change over the life of the loan.
Borrower requirements
Compare lenders’ borrowing requirements, including minimum credit score, income and maximum debt-to-income ratio (DTI). Because lenders consider your income and existing debts on an application, meeting the minimum credit requirements may not be enough to qualify, especially if the monthly payment would overextend your finances.
Repayment term
Repayment terms for fair-credit personal loans typically range from two to seven years. A longer term lowers your monthly payment, but increases the total interest cost. Choose a repayment term that keeps payments affordable and helps you clear the debt within the term or earlier.
Fees
Prepayment fees aren’t common with personal loans, but some fair-credit lenders charge origination fees. This fee is from 1% to 10% of the loan amount, and a lender typically takes it from the funds before depositing them into your bank account.
Other features
If you’re choosing between two affordable offers, compare these other features:
Time to fund: Personal loans are often funded in less than a week, but some lenders can fund a loan the business day after you’re approved. If you need the funds quickly, consider lenders that offer fast funding.
Credit building tools: Ideally, you’ll leave this loan with better credit than when you got it. Most lenders report payments to all three major credit bureaus, but be sure yours does before signing the loan agreement to get credit for on-time payments. Some lenders offer credit score monitoring, so you can see how payments affect your score.
Payment flexibility: Some lenders require you to keep your original payment date for the lifetime of the loan. If you think you’ll need more flexibility, look for a lender that lets you change the payment date.
» MORE: Features to compare on a personal loan
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Where to get a personal loan with fair credit
Credit unions and online lenders are your best bets for getting a personal loan with fair credit. A strong relationship with a local bank may go a long way, though.
Credit unions: Your credit union may consider your membership history, in addition to credit and income, on a personal loan application. If you’ve been a member for several years, usually repay your debts and keep your account in good standing, the credit union may take that into account.
» MORE: Credit union personal loans have low rates and flexible terms
Online lenders: An online lender may use alternative data to make a loan decision based on your full financial picture rather than just your credit and income. Pre-qualify with multiple online lenders to see your likelihood of qualifying and what rate to expect without affecting your credit score.
» MORE: How to pre-qualify for a personal loan
Banks: Fair-credit borrowers may not qualify for a loan from major national banks, which prefer borrowers with good or excellent credit scores (690 or higher). However, a strong relationship with your local bank could improve your chances.
» MORE: Best bank loans
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How to get a personal loan with fair credit
Review your credit reports. Check your reports from the three credit bureaus to spot any errors or opportunities to improve your credit. If your score is already on the rise, consider taking extra time to build it before you apply for a personal loan.
Check in with your budget. Review your budget to determine what an affordable personal loan payment would be. Consider whether you’ll need to cut back on any regular expenses before you borrow.
Compare lender requirements. The lenders listed above accept borrowers with fair credit, but many also consider income and DTI. Some lenders review a wide range of factors, like your education and work history. Compare qualification criteria to learn what each lender requires on a loan application.
Pre-qualify. Pre-qualify to see how likely you are to be approved for a personal loan and preview potential offers. Check offers from multiple lenders to find the best rate and terms.
Submit an application Once you’ve found a lender, it’s time to apply. Many lenders have online applications that take only a few minutes to complete, but some banks and credit unions may require an in-person visit. A tip to speed things up: Gather documents, including W-2s, pay stubs and government-issued IDs, before you apply.
Get funded. If approved, most lenders can fund a loan within a few days. Your first payment date will usually be 30 days after funding, so make sure to add your new loan payment to your budget.
» MORE: How to apply for a personal loan
Tips to boost your chances of qualifying for a personal loan with fair credit
Secure the loan: Most personal loans are unsecured, but some lenders offer secured personal loans, which require collateral. Giving the bank something to take if you can’t repay makes the loan less risky for the bank, which may mean better approval odds for you. Banks and credit unions typically let you use a savings or investment account to secure the loan, while online lenders prefer a vehicle.
Add a co-applicant: Adding a co-signer with better credit and a higher income may help you qualify for a lower rate. A co-signer is someone who agrees to pay the loan if you can’t, but that person doesn’t have access to the money. You may also consider a joint personal loan, which is similar to a co-signed loan except that your co-applicant can access the funds. In both cases, if you fail to repay the loan, your co-applicant is responsible for repayment — and both of your credit scores will take a hit.
Add up income streams: Most personal loan lenders accept income from alimony, Social Security payments, child support and retirement. Be sure to account for all your income on a personal loan application.
» MORE: How to boost your chances of personal loan approval
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How to improve fair credit
Taking the time to build credit before applying for a personal loan could get you a lower APR or larger loan amount. The best way to start improving credit is to first understand what’s holding it down.
Here are the factors that go into creating your credit score, according to FICO:
Payment history (35%)
A payment history that shows consistent, on-time payments toward other creditors will help build your score. On the other hand, having missed payments on your credit report will reflect poorly in your score.
Amounts owed (30%)
This is also known as credit utilization. Using too much of your available credit may mean that your finances are overextended and you’re relying on credit to get by. NerdWallet recommends using 30% or less of your available credit.
Length of credit history (15%)
The age of your credit accounts, how recently you’ve used them and the age of your oldest account are all factors that help make up your score. If you’re new to credit, this category may not help you, but a short history may not directly hurt your score, according to FICO.
Credit mix (10%)
More types of credit — credit cards, installment loans, mortgages, retail accounts —can help your score. FICO says it’s not necessary to have one of each, but having a few can show your ability to manage multiple types of debt.
New credit (10%)
New credit can refer to how many credit accounts you’ve recently opened. Many hard credit inquiries — which happen when you apply for credit — in a short period could lower your score. New loans and credit lines also lower the average age of your accounts, which can hurt your credit score.
Here are a few tips to build credit quickly:
Make on-time payments. The more consistently you make on-time payments toward your credit cards, mortgage or car loan, the more likely you are to build your score.
Keep utilization low. You can quickly lower your utilization by asking your credit card company to increase your limit, but the request may trigger a hard credit inquiry.
Become an authorized user. If you can get yourself added as an authorized user to a family member’s or partner’s credit card, the positive payment history they’ve built up can benefit your credit. You don’t have to get access to the card to become an authorized user.
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Alternatives to personal loans for fair-credit borrowers
Fair-credit personal loan rates can be high, so compare alternative borrowing options to find the right one for your budget and expense.
Credit cards: While personal loans work best for large, one-time expenses, credit cards are better for everyday use. Some cards for fair credit even come with rewards. Like personal loans, your credit is a factor in determining whether you qualify for a credit card, and your rate will likely be high, which is especially important to remember if you tend to carry a balance.
» MORE: Best credit cards for fair credit
Buy now, pay later: If you need to make a large purchase such as a mattress or laptop, a “buy now, pay later” loan may be an inexpensive alternative to personal loans and credit cards. BNPL apps often only do a soft credit check and don’t charge interest on their short-term payment plans. BNPL is offered at most major retailers. Proceed with caution, though, as these plans can encourage overspending.
» MORE: What is buy now, pay later?
Cash advance apps: A cash advance app lets you borrow up to a couple of hundred dollars to bridge an income gap or cover an unexpected expense. Like payday loans, apps don’t check credit and withdraw repayment on your next payday, but they usually have lower fees. If you can repay the money in two weeks or less, an advance from an app can get you cash quickly.
» MORE: Cash advance apps that cover you until payday
Family loans: Though it could be uncomfortable to ask, a loan from a friend or family member can be an affordable, no-credit-check borrowing option. You and the lender can draw up a loan agreement, including rates, terms and interest, to avoid any misunderstandings. Tread lightly with this type of loan — your relationship with the lender may be collateral.
» MORE: What is a family loan?
Lending circle: You may have friends or family members who could occasionally use extra cash, in which case, consider starting a lending circle. The group raises money for one member at a time by contributing a set amount of money each month. Once the funds are sent to that member, the cycle starts over and moves on to the next person.
» LEARN MORE: What is a lending circle?
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Frequently asked questions
Can you get a personal loan with a 600 credit score?
Some lenders set their minimum credit scores at or below 600. This means you may qualify for a personal loan with a 600 credit score, but meeting the minimum requirements doesn’t mean you’ll qualify. Standing out in other ways — like having an exceptionally high income or low debt — may improve your chances of getting a loan.
What’s the largest loan you can get with fair credit?
Fair-credit lenders typically offer loans from $1,000 to $50,000. Your state, lender, credit and finances may affect your loan amount.
What is the best personal loan company for fair credit?
The best lender for fair credit is generally the one that offers you the lowest APR and best terms. The lenders listed here all offer features that may fit a fair-credit borrower, such as low minimum credit scores, joint or secured loan offerings, fast funding and credit-building features.
Is it hard to get a loan with fair credit?
Lenders may view fair-credit borrowers as riskier than good- or excellent-credit borrowers, so it may be harder to qualify for a personal loan with fair credit. If you have fair credit, you may have the best chance of qualifying with a credit union or online lender.
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Last updated on May 14, 2024
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
NerdWallet's Best Personal Loans for Fair Credit in 2024
- Achieve Personal Loans: Best for Joint fair-credit personal loans
- Prosper: Best for Peer-to-peer personal loans for fair credit
- Upstart: Best for Overall fair-credit personal loans
- Upgrade: Best for Debt consolidation loans for fair credit
- LendingPoint: Best for Fair-credit personal loans with fast funding
- Best Egg: Best for Secured fair-credit personal loans
- Happy Money: Best for Credit card consolidation loans for fair credit
