The largest loan amount typically available for borrowers with fair credit is up to $50,000.
When you evaluate offers, consider also the monthly payments.
On-time payments will help you improve your credit score, so make sure the loan terms fit your budget.
Top Online Personal Loans for Fair Credit Right Now
- Upstart: Best overall for fair credit personal loans
- Upgrade: Best for fair credit personal loans with flexible terms
- LoansUnder36: Best for comparing multiple lenders
- 5KFunds: Best for fair credit personal loans that offer quick funding
- Low Credit Finance: Good for very low credit scores
Methodology: Our team evaluated over 30 online lenders and took in consideration factors such as: eligibility requirements, loan amounts, interest rates, fees, terms, funding time, customer service, customer satisfaction, lender transparency, prequalifying process and special features among others.
Best Personal Loans for Fair Credit in October 2024
Here are the lenders that cater to borrowers with fair credit scores (typically between 580 and 669) and offer the best personal loans for fair credit in October 2024.
Compare their APRs, check their terms and features, and consider prequalifying with a few of them.
This will allow you to see offers tailored to you, side by side.
1. Upstart: Best Overall for Fair Credit Personal Loans
Chosen 10,163 times- Fast Funding
- High Trustpilot Rating
- High Acceptance Rate
- No Repayment Penalty Fees
Upstart offers loans for fair credit online and is particularly suited for borrowers with scores ranging from 580 to 669.
They also have a low minimum anual income criteria of $12,000 and this income can come from a job, regular employment, or even a job offer that starts within six months.
Upstart does not require a co-signer and the company provides next-day funding.
Flexible Eligibility: No minimum credit score requirement. Instead they consider factors such as educational background and consistent job history.
Competitive APRs: One of the lowest available APRs among lenders providing online personal loans for fair credit.
Fast Funding: Funds as soon as one business day after approval, which might be great for you if you’re looking for urgent funding.
Diverse Loan Amounts: Loans ranging from $1,000 to $50,000, providing flexibility in the amount needed.
High Customer Satisfaction: Trustpilot score of 4.9/5 stars, which is the highest among all lenders reviewed, indicating a high level of customer satisfaction.
Upstart’s Pros
Origination Fees Might Be High: Upstart charges an origination fee that can range from 0.00% to 12.00%.
Limited Loan Terms: Upstart offers fewer repayment term options compared to many other lenders, with only 36 or 60 months available. This lack of flexibility may not suit you, if you prefer longer repayment periods to lower your monthly payments.
No Joint Loans or Cosigners: This can be a disadvantage for borrowers who might benefit from a co-borrower to improve their chances of approval or secure a lower interest rate.
Upstart’s Cons
Overall, Upstart might be the best option for a fair credit personal loan for you, if you:
Need funds quickly.
Have a limited credit history but a strong educational background or promising career trajectory.
Prefer to apply for a loan independently without needing a cosigner.
Are comfortable with potentially higher origination fees (up to 12%), because you believe that the benefits of Upstart’s flexible lending criteria outweigh the costs.
Since Upstart allows you to prequalify for a loan without impacting your credit score, you can fill-out an application on their website and check your rate with no strings attached.
2. Upgrade: Best for Fair Credit Personal Loans with Flexible Terms
Chosen 2,159 times- High Trustpilot Rating
- No prepayment fees
- Fast Funding
- Helpful Support Team
Upgrade borrowers can choose repayment terms from 24 to 84 months, providing flexibility in managing monthly payments.
With this company you can get personal loans ranging from $1,000 to $50,000.
As a requirement here, you will find that you must have at least one account on your credit history and a minimum length of credit history of two years.
Accessible Credit Requirements: Minimum credit score of 580, making it suitable for borrowers with fair credit.
Autopay Discount: 0.5 percentage point discount on the APR for setting up automatic payments, helping you lower borrowing costs.
Quick Funding: Funds can be made available within one business day after signing the loan agreement, ideal if you need cash urgently.
Co-borrowing Options: Upgrade allows joint applications, which can help you qualify for better rates or larger amounts by combining incomes and credit profiles.
No Prepayment Penalties: You can repay your loan early without incurring any penalties.
User-Friendly Mobile App: Easy loan management and access to free credit score monitoring and insights.
Direct Pay Discount: Provides a 1 to 3 percentage point discount for loans used to consolidate debt when creditors are paid directly.
Upgrade’s Pros
High Origination Fees: Similar to Upstart, Upgrade charges origination fees ranging from 1.85% to 9.99%.
Late Fees: Upgrade charges late fees if payments are not made on time, which can add to the overall cost of the loan.
Limited Loan Uses: While Upgrade allows for various loan purposes, it prohibits using funds for certain expenses, such as post-secondary education, investments, gambling, or illegal activities.
Upgrade’s Cons
Our observartions show that Upgrade might be the best option for a fair credit personal loan for you, if you:
Prioritize flexibility to choose your payment due date.
Seek to consolidate high-interest debt. The lender can pay creditors directly, and you may qualify for a lower interest rate on the new loan compared to their existing debts.
Have a financial emergency or unexpected expenses and you’re on a tight deadline.
Are interested in an APR discount through automating repayments.
Prefer joint applications to secure better rates or larger loan amounts.
May want to pay off your loan early without incurring additional fees.
If you are interested, you can prequalify with Upgrade on their website.
They will perform a soft credit check, which will not impact your credit score.
After prequalifying, you will receive estimates of the loan amounts, terms, and rates you may qualify for. This will help you gauge your options before formally applying.
3. LoansUnder36: Best for Comparing Multiple Lenders
Chosen 7,420 times- Loans with APRs under 36%
- Loans from $500 to $35,000
- Fast and easy approval process
- No minimum credit score requirement to apply
LoansUnder36 is best suited for borrowers with fair credit who are seeking small personal loans to cover unexpected expenses, such as medical bills, debt consolidation, or necessary purchases.
The platform connects users with a network of over 100 lenders, offering flexible loan amounts ranging from $500 to $35,000 and interest rates capped at 35.99%
Variety of Repayment Terms: Repayment terms range from 61 days up to 72 months, giving you options to choose a term that fits your budget and needs.
Quick Application Process: The online application takes just minutes to complete. Borrowers can get matched with multiple lenders and receive offers quickly, often within 24 hours. LoansUnder36 uses 256-bit encryption to protect borrowers’ personal information.
Ability to Compare Personalized Offers in One Place: You can explore loan offers from multiple lenders without impactin your credit score. This allows you to swiftly compare rates and terms to find the best deal.
Flexible Loan Purposes: The lender does not restrict how the funds are used. You can use the money for purposes like debt consolidation, home improvements, medical bills, and more.
LoansUnder36′ Pros
Not a Direct Lender: LoansUnder36 acts as a marketplace connecting borrowers with lenders, meaning they cannot guarantee specific loan amounts or terms.
Limited Availability: LoansUnder36 is not available in all states, specifically excluding New York, Vermont, West Virginia, and Alaska. This limits access for potential borrowers in those regions.
Your Might Receive Multiple Marketing Materials.
Lack of Transparency: Since the company is not a direct lender, they cannot provide detailed information about the lending process. This can leave borrowers uncertain about what to expect.
LoansUnder36′ Cons
Applying for a loan through LoansUnder36 does not impact your credit score when checking offers and you can do it for free on their website.
The platform allows you to explore loan rates and terms without any effect on your credit score, and there is no obligation to accept any loan offers received.
However, if you proceed to accept a loan offer, the lender will perform a hard inquiry on your credit report, which can temporarily lower your credit score.
It’s important to differentiate between the initial soft inquiry for checking offers and the hard inquiry that occurs once you finalize a loan agreement.
4. 5KFunds: Best for Fair Credit Personal Loans That Offer Quick Funding
Chosen 80,153 times- Check Rates without Credit Impact
- No Minimum Credit Score
- Large Network of Lenders
5KFunds is particularly suited for those who require immediate financial assistance for unexpected expenses, such as medical bills or urgent car repairs.
Similar to LoansUnder36, 5KFunds offers access to multiple lenders.
Quick and Easy Application Process: Borrowers provide basic personal and financial information, and 5KFunds quickly matches them with potential lenders.
Wide Network of Lenders: The competition among lenders can lead to better offers for borrowers.
No Minimum Credit Score Requirement: Accessible to individuals with less-than-perfect or fair credit histories.
Fast Fund Disbursement: funds can often be delivered directly to the borrower’s bank account quickly, providing timely financial support for urgent needs.
Strong Customer Support: customer support through phone and email, with representatives available to assist borrowers with any questions or concerns during the application process.
5KFunds’ Pros
No Direct Lending: Connects borrowers with various lenders, not a direct lender.
Variable Interest Rates: Rates can vary widely based on individual lenders and the borrower’s creditworthiness.
Potential for Unwanted Contact: Some users report receiving numerous marketing calls, texts, and emails shortly after submitting their information through 5KFunds.
5KFunds’ Cons
The initial application process with 5KFunds does not require a credit check, so this step will not affect your credit score.
You can fill out the online form on their website and see if you pre-qualify without any impact on your credit report.
Keep in mind that once you select a loan offer and proceed with the lender, they may perform a hard credit inquiry as part of their underwriting process. This hard check can temporarily lower your credit score by a few points.
5. LowCreditFinance: Good for Very Low Credit Scores
Chosen 2,240 times- All Credit Types Accepted
- Easy Online Application
- Approval decision in minutes
- Flexible Repayment Terms
LowCreditFinance is primarily designed for individuals who may have poor credit scores or limited access to traditional financing options.
If your credit score is fair, then some of the other options here will be better for you.
Accessible to Borrowers with Low Credit Scores: Designed for individuals with poor credit, making it easier for them to secure loans that they might not qualify for with traditional lenders.
Quick Approval Process: The platform typically offers a streamlined application process, allowing borrowers to receive loan approvals quickly, often within the same day.
No Collateral Required: Unsecured loans, meaning borrowers do not need to provide collateral to secure their loans.
Opportunity to Rebuild Credit: By making timely payments on loans from LowCreditFinance, borrowers can improve their credit scores over time.
Variety of Loan Uses: Can typically be used for various purposes, such as medical expenses, home repairs, or consolidating high-interest debts.
LowCreditFinance’s Pros
Higher Interest Rates: Significantly higher interest rates compared to traditional lenders. This is often due to the increased risk associated with lending to individuals with poor credit scores.
Potential for Hidden Fees: Some borrowers may encounter hidden fees or unfavorable terms that are not clearly disclosed upfront. This lack of transparency can lead to unexpected costs over the life of the loan.
No Direct Lending: Marketplace connecting borrowers with lenders, meaning the experience can vary significantly based on the lender chosen.
LowCreditFinance’s Cons
While the initial application may not impact credit scores, if you fail to make timely payments, it can lead to defaults that negatively affect your credit history, making future borrowing more difficult.
What is Fair Credit?
Fair credit typically refers to a FICO score range of 580 to 669. However, different lenders may have slightly different definitions.
Here’s a general breakdown of FICO score ranges:
| Credit | Score |
|---|---|
| Excellent | 800-850 |
| Very Good | 740-799 |
| Good | 670-739 |
| Fair | 580-669 |
| Poor | 300-579 |
According to Experian, about 17% of Americans have a FICO score between 580 and 669, which is considered fair credit.
How Fair Credit Affects Loan Eligibility
Your credit score is a key factor that lenders use to assess your creditworthiness. With fair credit, you may face certain challenges:
Higher Interest Rates: As of 2024, borrowers with fair credit can expect personal loan APRs ranging from 21.26% to 28.49%. This is significantly higher than the rates offered to those with good or excellent credit.
Smaller Loan Amounts: Lenders may offer lower loan limits to fair credit borrowers to mitigate their risk.
Stricter Terms: You might face shorter repayment periods or additional fees.
However, it’s not all bad news. The lenders featured here specialize in fair credit loans, and some factors can work in your favor:
Income and Debt-to-Income Ratio: A strong, stable income and low debt-to-income ratio can offset a fair credit score.
Employment Stability: Long-term employment can demonstrate reliability to lenders.
Collateral: While most personal loans are unsecured, offering collateral can improve your chances of approval and potentially lower your interest rate.
Cosigner: Having a cosigner with better credit can significantly improve your loan terms.
Understanding your credit situation is the first step in finding the best personal loans for fair credit.
How to Compare Loans for Fair Credit Online
Comparing loans for fair credit online can be tricky. There are lots of lenders out there, so you need to know what to look at when evaluating your options.
Let’s break down how to do it:
APR: This is the total cost of your loan, including interest and fees. In 2024, people with fair credit usually see APRs between 21.26% and 28.49%. But some lenders might offer better rates, so it pays to shop around.
Repayment Time: Longer loans mean smaller monthly payments, but you’ll pay more in interest over time. Most fair credit borrowers get loans for about 48 months.
Extra Costs: Watch out for fees when you get the loan, late payment fees, and fees for paying off your loan early.
How Much You Can Borrow: Check if the lender offers the amount you need. In 2023, the average personal loan balance was $19,402, according to Experian.
How Fast You Get the Money: If you need money quickly, look for lenders who can get it to you fast. Many online lenders now give you the money in a day or two.
Soft Credit Check: Look for lenders who let you check your rate without hurting your credit score. All of the options in our list of “Best Personal Loans for Fair Credit” perform soft checks only.
What to Check
Now that you know what to look for and which tools to use, let’s walk through the process of comparing loans step by step.
This method will help you find the best personal loan for your fair credit situation.
Remember, taking your time with this process can save you money and headaches down the road.
How To Compare Fair Credit Loans Online Step-By-Step
Steps
Check your credit score and report
To compare fair credit loans online, start by verifying your current credit score and getting a copy of your credit report. This gives you a clear picture of where you stand.
You can get a free credit report once a year from each of the three major credit bureaus at AnnualCreditReport.com.
Use a comparison website to find lenders
Comparison websites save you time by showing multiple loan offers side by side.
Financer.com is an excellent tool for this. We help you compare fair credit loans from various lenders and choose the best fit for your needs.
Select your top 3-5 options
Based on your list, narrow down your choices to the top 3-5 lenders.
Focus on those offering the best combination of low APR, favorable terms, and minimal fees. Remember, the lowest rate isn’t always the best deal if it comes with high fees or unfavorable terms.
Prequalify and evaluate offers
Submit prequalification requests to your top lenders. They’ll run a soft credit check and show you personalized loan offers based on your financial profile.
Compare these custom offers side by side
These personalized offers will give you a more accurate picture of what you might actually get.
Look for prepayment penalties, late payment fees, and any other hidden costs. Check if the interest rate is fixed or variable, and use an online calculator to calculate your monthly payments and overall cost of the loan.
Finally, choose the loan that offers the best overall value. This might not always be the one with the lowest rate.
Consider the full package: interest rate, fees, term length, customer service quality, and how well it fits your financial needs and goals.
By following these steps, you’ll be well-equipped to find a personal loan that works best for your fair credit situation.
Don’t forget that the goal is to find a loan that not only meets your immediate needs but also supports your long-term financial health.
Tips for Improving Your Chances of Approval
Having fair credit doesn’t mean you’re out of options. Here are some ways to boost your approval odds:
1. Clean Up Your Credit Report
Get a free copy of your credit report from AnnualCreditReport.com. Go through it line by line, looking for any errors.
Common mistakes include incorrect account balances, wrongly reported late payments, or accounts that aren’t yours.
2. Pay Down Existing Debt
Focus on lowering your credit utilization ratio to less than 30%.
For example, if you have a credit card with a $1,000 limit, aim to keep the balance below $300.
If you can’t pay off high balances all at once, try the “snowball method.”
3. Make All Payments On Time
Set up automatic payments for all your bills, even if it’s just for the minimum amount. Use your phone’s calendar app to set reminders a few days before each due date.
4. Add an Income Stream
Look for opportunities to earn extra money. If you can’t get overtime at your current job, consider freelance work on platforms like Upwork or Fiverr.
Skills like writing, graphic design, or data entry are always in demand.
5. Get a Co-signer
If you’re considering a co-signer, have an honest conversation about responsibilities.
Show them your plan for repayment, including a budget that demonstrates how you’ll make the payments. Offer to set up a legal agreement that outlines what happens if you can’t pay.
Remember, missed payments will affect their credit too, so treat this option with care.
Learn more: Co-Borrower vs Cosigner
6. Offer Collateral
If you’re considering a secured loan, calculate the risks carefully.
For example, if you use your car as collateral, make sure the loan payment is significantly less than your current car payment (if you have one).
This ensures you’re not putting your transportation at risk.
Learn more: What Can Be Used As Collateral for a Personal Loan?
FAQ Personal Loans for Fair Credit
What credit score is considered “fair”?
Generally, a FICO score between 580 and 669 is considered fair credit. However, some lenders may have their own definitions of fair credit.
Can I get a personal loan with a credit score of 600?
Yes, it’s possible to get a personal loan with a credit score of 600. Many online lenders cater to borrowers with fair credit. However, you may face higher interest rates compared to those with good or excellent credit
How much can I borrow with fair credit?
Loan amounts vary by lender, but many offer between $1,000 and $50,000 for borrowers with fair credit. Your income and debt-to-income ratio also play a role in determining how much you can borrow.
Will applying for a loan hurt my credit score?
When you apply for a loan, the lender will typically do a hard credit inquiry, which can temporarily lower your score by a few points. However, if you’re shopping around, multiple inquiries for the same type of loan within a 14-45 day period are usually counted as one inquiry.
Read more: Does a Personal Loan Affect My Credit Score? | Ask Financer
How long does it take to get approved for an online personal loan for fair credit?
Many online lenders offer quick decisions, sometimes within minutes of applying. However, if additional verification is needed, it could take a few business days.
Once approved, funds are typically deposited within 1-7 business days.
Can I pay off my loan early?
Most lenders allow you to pay off your loan early. However, some may charge prepayment penalties. Always check the loan terms before signing.
Are there alternatives to personal loans for fair credit?
Yes, alternatives include credit card balance transfers, home equity loans (if you’re a homeowner), peer-to-peer lending platforms, or borrowing from family or friends.
How do I know if I’m getting a good deal on a loan?
Compare offers from multiple lenders, looking at the APR, fees, loan terms, and total cost of the loan over its lifetime. The lowest interest rate isn’t always the best deal when you factor in fees and other terms.
