A strong credit score can open up many loan opportunities, from mortgages to personal loans. But what if you only have a fair credit score? It’s important to note that making on-time payments on personal loans can be one of the best ways to raise your score. Unfortunately, many lenders hesitate to lend money to those with fair credit, limiting options for those trying to improve their scores.
But don’t worry; you still have options!
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While loan terms may be less flexible with higher origination fees and APRs, many lenders are still willing to grant personal loans for medical emergencies, home or car repairs, and more.
Check out our list of the best personal loans for fair credit borrowers. These options are perfect for debt consolidation, home renovation, and emergency expenses.
What Does a Fair Credit Score Look Like?
Before we get into the ten best personal loans for borrowers with fair credit, let’s take a look at what qualifies as “fair.” Fair credit is generally considered to be any score between 580 and 669. If you need to know your credit score, try websites like Credit Karma or Experian to check your credit score for free.
The 10 Best Personal Loans for People With Fair Credit:
Now that you know what fair credit looks like, here are the best personal loans for those with fair credit scores.
Upgrade
Upgrade stands out for its low minimum credit score requirement of 560, which caters to borrowers with bad credit. While this option may seem appealing, it comes with a few caveats. Borrowers should be prepared for high origination fees, inflexible repayment terms, and high-interest rates. But for those looking to improve their credit, Upgrade may be the solution.
Highlights:
- Accepts Credit Scores as low as 560
- Next-Day Funding Available
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If you’re starting to repair your credit score, consider Upgrade. With Upgrade, you can get a personal loan starting at $1,000 to consolidate debt or cover an emergency, even if your score is as low as 560. This loan can be a crucial step in improving your credit score. Making regular payments will demonstrate your reliability as a borrower. Plus, with next-day funding and no prepayment penalty, Upgrade provides convenience and flexibility. While the loan terms could be more flexible, the availability of small loan amounts makes Upgrade a solid choice.
Upstart
Upstart offers personal loan options for borrowers with fair, poor, or no credit history. This means you can still access much-needed funds even with a less-than-perfect credit score. While there may be a high origination fee and APR (up to 35.99%), it’s essential to know that Upstart understands the struggles faced by those with credit challenges and offers a solution to help them in their time of need.
Highlights:
- Accepts Borrowers with Zero Credit History
- Small Loans Options Available
- Next-Day Funding Available
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If you need a personal loan for a car repair or medical emergency but have no credit history, look no further than Upstart. With flexible loan amounts and next-day funding, Upstart offers the best option for those without a credit history.
However, suppose your fair credit score falls on the higher end. In that case, better deals may be available with more flexible loan terms and lower APR. Keep in mind that Upstart is only recommended for those with fair credit and is not advisable for those with good or excellent credit. Trust Upstart to help you get the funding you need without a credit history holding you back.
Discover
Discover’s personal loans are accessible even with bad credit. There’s no disclosed minimum credit score requirement. Instead, the lender considers the borrower’s debt-to-income ratio (DTI) and annual income ($25,000 annually required), among other factors.
Moreover, paying off the loan within 30 days completely frees you from interest charges. Discover’s flexible terms and conditions make it an excellent option for quick cash loans without breaking the bank.
Highlights:
- Zero Origination Fees
- Low APR
- 30-Day Payoff Reward
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While it may be more challenging to qualify for a personal loan with fair credit through Discover than other lenders on our list, the benefits are worth the extra effort. Discover offers no fees, lower interest rates, and quick funding. The only downside is that the loan amounts may not be as flexible as you’d like, with a minimum of $2,500, higher than some other lenders. However, Discover could be the perfect choice for your financial needs if you can meet the qualifications.
Rocket Loans
If you have fair credit, Rocket Loans may be your right lender. However, a fair warning, they do have a minimum credit score requirement of 640. However, this puts them on the higher end of the fair credit range and could make them a valuable option for those looking to improve their credit. Rocket Loans offers a lower maximum APR (uncommon for fair credit personal loans) and a speedy approval and funding process.
Highlights:
- Same-Day Funding
- Low APR
- User-Friendly Website
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Rocket Loans offers an excellent option for borrowers looking to improve their credit through debt consolidation. While fair credit scores can qualify, a credit score of 640 or more is preferred for a lower interest rate and faster funding.
It is worth noting that there are drawbacks to consider, such as steeper repayment terms and origination fees that can go as high as 7%. However, loan amounts begin at $2,000 – twice as high as the lowest contenders on our list.
Rocket Loans is a solid choice for anyone looking to consolidate their debt and improve their credit.
Lending Club
With LendingClub, obtaining a personal loan is easier than ever with their 600 credit score requirement. Covering small home and auto repairs is a breeze with a minimum loan amount of $1,000. While 48-hour or even 24-hour funding is possible, it’s important to note that it’s not guaranteed. Additionally, borrowers with fair credit can expect an APR on the higher side.
Highlights:
- Accepts Credit Scores as Low as 600
- Next-Day Funding Possible
- Small Loan Options Available
More Info:
With a minimum loan amount of $1,000, LendingClub personal loans are perfect for covering small home and auto repairs. Plus, a 600 credit score requirement makes them easily accessible for many borrowers. While funding in as little as 24 or 48 hours is possible, it’s not guaranteed. Keep in mind that fair credit borrowers may face higher APRs.
Best Egg
Despite Best Egg’s high APR of up to 35.99% for fair credit personal loans, customers are consistently pleased with their experience, according to top review sites like TrustPilot and BBB. However, it’s important for potential borrowers with credit challenges to understand and accept the higher-than-average APR, strict loan payoff terms, and steep origination fees associated with Best Egg loans.
Highlights:
- Accepts Credit Scores as Low as 600
- Small Loan Options Available
- Great Customer Service
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Dealing with lenders can be a daunting task, especially when it comes to managing your finances. However, with Best Egg’s highly-rated customer service, borrowers can feel confident in their choice of lender.
While Best Egg may not offer the lowest APR for those with fair credit or the most flexible repayment terms, it’s always wise to get pre-qualified with them for a comparison point. That being said, you’ll likely find better rates and repayment conditions with another lender. Don’t settle for less; shop around and make informed decisions about your financial future.
Avant
Avant Personal Loan may not be the most attractive option for those with fair credit due to its high entry APR and maximum APR. However, it offers a true personal loan for fair credit borrowers with its low minimum credit score requirement. Additionally, Avant has a flat origination fee (also known as an administration fee), which means no surprises for borrowers. Despite its high low APR, Avant’s flexibility makes it worth considering for those with fair credit.
Highlights:
- Accepts Credit Scores as Low as 550
- Amazing Mobil App
- Next-Day Funding Available
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Avant is the perfect lending option for those on the lower end of the fair credit range. Unlike competitors who offer unclear origination fees, Avant provides predictable fees from the start, making it easier to budget for your loan. With the ability to receive a loan as small as $2,000, it’s important to note that the APR can reach up to 35.99%. However, Avant shines for digital-first borrowers with their highly rated mobile app, notably featured on the Apple App Store. Don’t let fair credit hold you back – turn to Avant for your lending needs.
LendingPoint
LendingPoint is an excellent option for most borrowers thanks to its low minimum credit score, next-day funding, and small loan options. While it’s easy to apply online and receive a fast decision, borrowers with bad credit should know they may receive a higher APR (35.99%). Despite this, LendingPoint remains a top choice for those seeking a hassle-free borrowing experience.
Highlights:
- Next-Day Funding Available
- Accepts Credit Scores as Low as 580
- Small Loan Options Available
More Info:
LendingPoint is a reputable lender that offers pre-qualification without a hard credit inquiry. This means you can check your eligibility without affecting your credit score.
While LendingPoint is a solid option, it’s important to note that other lenders on our list may offer lower interest rates. It may be worth considering if you qualify for a better rate elsewhere. It’s all about finding the loan that’s right for you.
SoFi
SoFi is an excellent option for borrowers seeking an online lender with low-interest rates and flexible repayment options. Although its minimum credit score requirement is slightly higher than other lenders on our list, SoFi offers competitively low APRs (as low as 5.99%), making it a popular choice among individuals with fair credit.
Highlights:
- No Origination Fees
- Accepts Credit Scores as Low as 620
- Flexible Repayment Options Available
More Info:
SoFi’s advantages are mainly in their highly user-friendly loan terms and origination fee-waiving policy. Unlike most other lenders, SoFi offers no origination fees – which can mean significant savings over the life of
What Personal Loan Company is Right for You?
Your choice will depend on your individual credit score and financial goals. So it’s essential to review the loan details and compare rates before making a decision. Remember that getting rejected for a loan doesn’t mean there isn’t an option – you may need to shop around or consider alternative lenders. When in doubt, speak with a financial advisor who can help you determine what kind of loan is right for your situation.
How to Compare Personal Loans
When comparing personal loan lenders, look at more than just the interest rate. Factors such as loan terms, repayment options, and fees should all be considered before making a decision. Additionally, it’s important to understand the impact of taking out a loan on your credit score – will the monthly payments lower or raise your score? Finding the right lender for you is essential to get the best deal possible while protecting your financial future.
What if I Get Rejected for a Loan?
If you’ve been rejected for a loan, it doesn’t necessarily mean that you won’t be able to get one. It may mean the lender wasn’t a good fit for your credit score or financial situation. The key is to find an alternative lender or try different loan terms. Make sure to shop around and compare offers before deciding so that you can get the best deal possible.
The Bottom Line
If you have fair credit, obtaining a personal loan might seem impossible. However, with lenders like Upstart, Lending Club, and Avant, you can get the financing you need to consolidate debt or cover an emergency expense. Before applying for a personal loan, check your credit score and compare loan offers to find the perfect fit for your needs. Remember, paying off a loan in monthly installments without missing a payment is one of the best ways to raise your credit score, so choose wisely and make sure you can afford the loan. With the right lender and loan terms, you can take control of your finances and improve your credit score.
