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A personal loan can be a good way to get quick cash for expenses like home improvement projects, moving costs, or a vacation. You'll pay it off in monthly installments, and your interest rate will be fixed for the life of the loan. Your credit score is a primary factor in determining the interest rate for your loan. There are plenty of lenders offering personal loans for fair credit.
Even though you may qualify for a loan with these lenders, the lower your credit score, the higher your interest rate will be. You may be able to get a lower rate with other options, such as a credit card (although they, too, can charge hefty rates).
Best Fair Credit Loan for Coborrowers: PenFed Credit Union Personal Loan
PenFed allows you to add a co-borrower to your application. If you don't have the best credit and are concerned your lender might not approve your loan as a result, you can choose to enlist a co-borrower and may qualify for a better rate.
You should also know that PenFed has membership requirements. You need to join the credit union to take out a loan. Members of the military and employees of qualifying organizations will be eligible, but if you don't qualify, you can join by opening a savings account with a $5 minimum deposit.
Best Fair Credit Loan for Small Loan Amounts: Upgrade Personal Loan
Upgrade has some of the smallest loan amounts available among the lenders on the list. You can borrow as little as $1,000. Other than Upgrade, credit unions are probably your only other option for such a small amount. If you just need a bit of cash to tide you over, Upgrade is a good choice.
Best Fair Credit Loan for Fast Funding: Avant Personal Loan
Avant offers quick access to personal loan funds. If your loan is approved by 4:30 p.m. CT Monday through Friday, funds are generally deposited by the next business day, per the company's website.
Borrowers need to look out for high fees from Avant. You'll pay up to up to 4.75% in administration fees with an undisclosed late fee and returned payment fee in administration fees with an undisclosed late fee and returned payment fee.
Best Fair Credit Loan for No Fees: Navy Federal Credit Union Personal Loan
Navy Federal has no origination fees or prepayment penalties. This could save you money on the overall cost of your loan, and other lenders on our list charge these fees.
Unfortunately for many borrowers, Navy Federal has strict membership requirements. It's relatively hard to qualify for Navy Federal membership. You're only eligible if you are an active military member, veteran, employee, or retiree of the Department of Defense or a family member of someone in one of those groups.
Best Fair Credit Loan for Poor Credit: LendingClub Personal Loan
LendingClub accepts loan applications with co-borrowers. If you have poorer credit and are worried your loan might not be approved as a result of your standing, you can choose to add a co-borrower and may qualify for a better rate.
You'll get access to your funds within two to four business days, and while that is relatively fast, you can get funds deposited more quickly from other personal loan companies.
Best Fair Credit Loan for Limited Credit History: Upstart Personal Loan
Upstart relies on more than credit scores and credit history when deciding whether or not to approve loan applications. For people who have struggled with credit in the past, Upstart will factor in a few other pieces of information, including employment history and education history, for a better shot at approval.
As a borrower, you'll need to watch out for Upstart's limited repayment terms. While other lenders offer several options on how long you'll have to repay, Upstart only offers three-year and five-year terms. This choice could be impractical for borrowers on either extreme of the borrowing scale. However, there is no prepayment penalty, so you can pay your loan off at any time without a fee.
Best Fair Credit Loan for Customer Service: Best Egg Personal Loan
Best Egg's high customer satisfaction makes it a standout personal loan lender. Best Egg has a 95% customer satisfaction rate, which is supported by its stellar A+ Better Business Bureau trustworthiness score.
Keep in mind that Best Egg does charge origination fees. You'll face an origination fee between 0.99% and 9.99%, which is baked into your APR. Best Egg also charges a late fee of $15.
Personal Loans for Fair Credit Lender Trustworthiness
To help you decide on a lender for a fair credit personal loan, we compared each institution's Better Business Bureau score. The BBB measures businesses based on factors like their responsiveness to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:
| Lender | BBB Grade |
| Upgrade Personal Loan | A+ |
| Avant Personal Loan | A+ |
| Best Egg Personal Loan | A+ |
| LendingClub Personal Loan | A- |
| Navy Federal Credit Union Personal Loan | NR |
| Upstart Personal Loan | A+ |
| PenFed Credit Union Personal Loan | A+ |
All of our top picks are rated A- or higher by the BBB, with the exception of Navy Federal. Navy Federal is not rated because the credit union is in the process of responding to formerly closed complaints. Previously, the business had an A+ rating from the BBB.
There is one recent controversy related to Navy Federal. A Navy Federal employee alleged that the lender pressured mortgage underwriters to approve loans even without proper reason to believe applicants could pay back the loans. She then filed a lawsuit and said Navy Federal retaliated against her whistleblowing by changing her job duties. She dropped the case in late 2020.
If Navy Federal's history bothers you, you may feel more comfortable with another lender on our list.
Keep in mind that a high BBB score does not guarantee a positive relationship with a lender and that you should continue to do research and talk to others who have used the company to get the most comprehensive information possible.
How to Choose the Best Fair Credit Personal Loan
To get the best fair credit personal loan, think about what means the most to you. Many borrowers focus on the lowest interest rate but also think about any fees, the minimum credit score needed, and the accessibility of the lender's customer service. You'll also want to make sure you're able to select a term length that works for you and that the lender you pick allows your reason for your loan.
You'll want to understand if you qualify for a loan or if you may need to add a cosigner to boost your chances of being eligible. See if you can prequalify for a personal loan to compare offers without a hard inquiry on your credit, too. Guides like this one will help you weigh multiple lenders to compare their pros and cons. Make sure to also read individual reviews of any lenders you're considering.
Tips for Getting Approved for a Fair Credit Personal Loan
Finding a personal loan lender when you have fair credit can be challenging. Here are tips to help you get approved for the loan you need:
- Review your credit report. Borrowers with fair credit should check their credit report prior to applying for a new loan. It's important to make sure it is free of any errors and that any issues are addressed beforehand.
- Try to improve your credit score. The higher your credit score, the better rates you're likely to qualify for. So, be sure to make payments on time, avoid opening new accounts leading up to applying for a new personal loan, and pay down any outstanding debt.
- Find a cosigner. If you're worried that you won't qualify for a loan or that the rates will be too high, then it's best to consider a cosigner. Finding a cosigner with good credit can increase your chances of approval and eligibility for lower rates.
- Compare lenders. It's usually worth the time to get quotes from multiple lenders to find the lowest rates and best terms.
- Consider a smaller loan amount. By starting with a smaller loan, you could demonstrate that you're a responsible borrower. This could potentially help you get approved for a larger loan with more desirable terms down the road.
FAQs About Fair Credit Personal Loans
Yes, many lenders offer personal loans for fair credit. All of the lenders on our list have options for borrowers with credit scores on the lower end of the scale. Improving your credit score will likely get you more favorable loan terms.
Your credit score determines what loans you can get. To get a personal loan with fair credit, you'll have to fill out an application and see if you qualify. If you don't, take steps to improve your credit score or add a cosigner.
While qualifications will differ among lenders, it is possible to get a $5,000 loan with fair credit. Remember, though, that the lower your credit score, the higher you're interest rate will be on a personal loan for fair credit.
The average personal loan rates can vary frequently. Most recently, the average APR for fair credit was 120.12%, with the minimum APR coming in at 23.50% and the maximum APR at 435.64%.
The first step to improving your credit score is to pay off any outstanding debt you have. Your payment history has a significant impact on your credit score and can prevent it from going up. Once you've improved your credit score, you should also qualify for more favorable loan terms.
You should only consider a personal loan for fair credit if you are committed to making payments on time. Otherwise, you risk falling deeper into debt and worsening your financial situation.
Why You Should Trust Us: How We Chose the Best Personal Loans for Fair Credit
Business Insider rates all personal loan products in our reviews and guides on a 1-5 scale. The assigned rating is a weighted average that takes into account several categories, such as:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each weighting reflects the importance of these various criteria. The interest rates and fees you'll pay are among the most important considerations, so they are given the most weight. Other factors like customer service and company ethics are still important, but are weighted less heavily.
See our full ratings methodology for personal loans »
OneMain Financial Personal Loan disclosure: Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral) and your state of residence. If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loanfees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: $3,100. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers in these states are subject to these maximum loan sizes: North Carolina: $9,000 for unsecured loans to all customers, $9,000 for secured loans to present customers. Maine: $7,000. Mississippi: $15,000. West Virginia: $14,000. Loans to purchase a motor vehicle or powersports equipment from select Maine, Mississippi, and North Carolina dealerships are not subject to these maximum loan sizes. Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07. Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.
