Although it may be more difficult to secure a personal loan with a fair credit score, there are many lenders that are willing to work with borrowers with less-than-perfect credit. However, keep in mind you may receive a higher APR, as lower rates are typically reserved for borrowers with good or excellent credit.
Best Personal Loans for Fair Credit in December 2023
Checking rates won’t affect your credit score
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Best lenders for fair credit personal loans
Written by Carol Pope | Edited by Katie Lowery | Reviewed on November 27, 2023
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
| Lender | User ratings | Best for… | Minimum credit score | APR range | Loan terms | Loan amounts | |
|---|---|---|---|---|---|---|---|
 | APR discounts | 620 | 8.99% - 35.99% | 24 to 60 months | $5,000 - $50,000 | See Personalized Offers | |
 |
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Fast funding | 580 | 9.95% - 35.95% | 12 to 60 months | $2,000 - $35,000 | See Personalized Offers |
 | Secured loans | 600 | 5.99% - 29.99% | 36 to 84 months | $2,000 - $50,000 | See Personalized Offers | |
 | Credit card consolidation | 640 | 11.72% - 24.67% | 24 to 60 months | $5,000 - $40,000 | See Personalized Offers | |
 | Smaller loans | 600 | 9.57% - 35.99% | 24 to 60 months | $1,000 - $40,000 | See Personalized Offers | |
 | Mobile app loan management | 660 | 7.99% - 35.99% | 24 to 72 months | $2,000 - $36,500 | See Personalized Offers | |
 |
User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Peer-to-peer lending | 560 | 6.99% - 35.99% | 24 to 60 months | $2,000 - $50,000 | See Personalized Offers |
 | Flexible loan terms | 580 | 8.49% - 35.99% | 24 to 84 months | $1,000 - $50,000 | See Personalized Offers | |
 | Low credit scores | 300 | 6.40% - 35.99% | 36 and 60 months | $1,000 - $50,000 | See Personalized Offers |
Read more about how we chose the best loans for fair credit.
Achieve: Best for APR discounts
8.99% - 35.99%
$5,000 - $50,000
24 to 60 months
1.99% - 6.99%
620
Pros
- Multiple APR discounts available
- Option of working with a dedicated loan specialist
- No fee to pay off loan early
Cons
- Charges an origination fee
- High maximum APR
- High minimum loan amount
What to know
While most top personal loan lenders offer at least one discount, Achieve has three. You can qualify for lower interest rates by allowing Achieve to repay your creditors directly, by showing proof of sufficient retirement savings and by applying with a co-borrower.
With a minimum loan amount of $5,000, Achieve may not be the right lender if you need a small personal loan.
Read our full Achieve personal loan review.
How to qualify
- Have a minimum credit score of 620
- Provide Social Security number
- Provide proof of identity
- Provide proof of income and employment status
What is a fair credit score?
A fair credit score ranges from 580 to 669. If you have a fair credit score, you may not qualify for a lender’s lowest APR, and some lenders may not approve you for a personal loan at all.
If you get your credit score up to a 670 (which is considered a good credit score), you’ll be more likely to qualify for loans and receive better offers.
| Credit band | Credit type | Description |
|---|---|---|
| 300 to 579 | Poor | Considered a risky borrower — may not qualify with many lenders |
| 580 to 669 | Fair | May have a thin credit history, have missed a couple of payments or have a high income-to-debt ratio |
| 670 to 739 | Good | Above-average borrower in the eyes of lenders and may qualify for most loans |
| 740 to 799 | Very good | Considered a dependable borrower and may be eligible for low APRs |
| 800 to 850 | Excellent | Considered a low-risk borrower and may receive the lowest APRs |
Where to get a personal loan with fair credit
There are many places to get a personal loan if you have fair credit, including online lenders, brick-and-mortar banks and credit unions.
Online lenders: Online personal loans for fair credit are a fairly common way to borrow money. Unfortunately, the internet can also be rife with scammers. Generally, the lower your credit score, the more of a target you may be for predatory lending.
We’ve used our expert eye to vet each lender on this list. Still, always practice due diligence before providing personal information online.
Banks: Some borrowers may feel more comfortable with the in-person experience that borrowing from a brick-and-mortar bank can provide. At the same time, banks typically have more stringent requirements compared to online lenders, so you might not qualify for a personal loan if you have fair credit.
Credit unions: Personal loans from credit unions come with lower APRs, but you have to be a member before you’re eligible. Some credit unions are only available for certain borrowers, such as military members or employees of a specific organization.
Average rates for fair-credit personal loans
You might still be eligible for a loan with fair credit — but it’ll probably be more expensive, thanks to a high APR.
A 2022 LendingTree study analyzed random LendingTree borrowers across many forms of credit (mortgages, personal loans, credit cards and auto loans). The data found that increasing your credit score from fair to very good could save you up to $50,000 through lower interest rates and fewer fees.
Below you’ll find the average APRs provided to LendingTree users from our lending partners, organized by credit score:
| Credit score range | Average APR |
|---|---|
| 720+ | 14.37% |
| 680-719 | 20.86% |
| 660-679 | 32.14% |
| 640-659 | 44.09% |
| 620-639 | 61.13% |
| 580-619 | 87.74% |
| 560-579 | 122.22% |
| Less than 560 | 160.81% |
Source: LendingTree data from 2023 Q1
How to improve your credit score
Improving your credit score isn’t an overnight process. Still, the time and effort it takes can open the door to a larger lender selection, lower APRs and higher loan amounts. Here’s what you can do to boost your credit score:
Pay your bills on time
Paying your bills in full and on time is the most important step to getting your credit in order. Just a single missed payment can cause your credit score to plummet by up to 180 points, as payment history accounts for 35% of your score.
Sign up for credit monitoring
Credit monitoring can help you keep tabs on your financial health. Since many services will send you an alert when it detects suspicious activity, credit monitoring can make it easier for you to dispute anomalies or put a stop to credit-ruining identity theft.
Consider a secured credit card
No credit is better than bad credit, but a thin credit history can prevent you from moving from fair credit into the good range. If you’re struggling to build credit, you might want to consider a secured credit card. You’ll need to put down a small deposit, but using a secured credit card responsibly might help you improve your score and gain access to better loan options in the future.
Eliminate excess debt
The amount of debt you have is one of the factors that affects your credit score. If you owe money on several credit cards, try to pay them down. After they’re paid off, it’s best to keep them open and use them sparingly. Closing your account completely can be detrimental, as it lowers the average age of your credit history.
Check your credit report for discrepancies
Unfortunately, it can be common to find a mistake on your credit report. The good news is that if you find one, you can dispute the credit report error with the relevant credit bureau. Start by checking your credit report at AnnualCreditReport.com and carefully analyzing your reported history.
How to compare personal loans for fair credit
Comparing lenders is key to finding the loan with the most attractive terms for your situation (and credit profile). If you’re on the hunt for a personal loan for fair credit, keep an eye on:
- APR: Because lenders reserve the lowest APRs for excellent-credit borrowers, look for lenders that have the lowest maximum APRs. Since you have fair credit, lenders are more likely to offer you an APR on the upper end of their range.
- Fees: Some lenders charge origination fees, late fees and prepayment penalties. Avoid these fees — but if you can’t, prioritize lenders with the lowest fees.
- Loan terms: A longer loan term may equal lower monthly payments, but you’ll pay more interest over the life of your loan. Choose the shortest loan term that provides a monthly loan payment you can comfortably afford.
- Loan amounts: Choose a lender that offers loans in the amount you need. If the lender charges an origination fee, be sure to factor that in when assessing loan amounts.
- Funding timeline: After loan approval, you could be waiting for your funds for anywhere between a few hours to a week, depending on the lender. If you need money quickly, pay special attention to each lender’s funding timeline.
How to get a loan with fair credit
Qualifying for a loan with fair credit isn’t always easy, but there are some steps you can take to make the process go a bit more smoothly.
Avoid applying for new credit: When you apply for new credit, lenders will typically perform a hard credit inquiry to examine your credit score and history. These hard pulls can temporarily damage your credit score, lowering it further. If you know you’ll need to apply for a personal loan, avoid applying for other credit to keep your score as high as possible.
Add a cosigner: Applying for a personal loan with a cosigner can help your chances of getting approved, especially if they have a strong credit profile. However, this isn’t a risk-free route: If you’re unable to repay the loan, it’ll negatively impact your cosigner’s credit and they may be held liable for repayment.
Prequalify: Prequalification doesn’t hurt your credit score and can help you see the loans you’re eligible for before jumping into the formal application process.
Click the button below and head over to LendingTree’s personal loan marketplace. There, you can prequalify with up to five lenders at once with just a few clicks and no impact to your credit score.
Alternatives to fair credit loans
While personal loans for fair credit may be a good option for some people, other alternatives worth exploring may include the following:
Buy now, pay later (BNPL): Buy now, pay later apps allow you to make everyday purchases with a low (or no) down payment. However, these apps are easy to use, so it can take discipline to avoid overspending.
Secured loans: Secured loans can be a good alternative to fair credit loans, especially if you have a lower credit score and are having trouble getting approved. A secured loan requires that you put down collateral (like a vehicle) in order to lower your risk in the eyes of lenders. Keep in mind that if you default on the loan, you risk losing your collateral.
Credit cards: If you need access to funds on a rolling basis rather than a lump sum, a credit card may be a better choice than a personal loan.
How we chose the best personal loans for fair credit
We reviewed more than 30 lenders to determine the overall best nine personal loans for borrowers with fair credit. To make our list, lenders must offer personal loans to borrowers with credit scores below 670. We further prioritized lenders with competitive annual percentage rates (APRs) and considered the following factors:
- Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
- Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
- Repayment experience: We consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.
Frequently asked questions
Loans for fair credit often require that you provide documents proving your income and identification. When applying for a personal loan, you’ll most likely need to provide documents such as W-2s, a government-issued form of ID and bank statements.
Loans that don’t require credit checks, like payday loans, can be easy for borrowers to qualify for and offer quick access to cash. However, these types of loans are often predatory and can charge interest rates as high as 400%. Instead, consider a payday alternative loan (PAL) or a secured loan.
The minimum credit score required for a personal loan will vary from lender to lender. Some lenders don’t specify their minimum required scores, so ask the lender directly before applying. Some lenders offer loan products specifically for borrowers with fair or bad credit.