Written by Amanda Push | Edited by Katie Lowery | Updated July 31, 2023
Read about how we chose the best loans for fair credit.
Borrowers who want to go through online lender Avant can receive their funds as quickly as one business day after they’re approved. Though Avant’s minimum APR is a bit higher than that of other lenders, it does offer flexible repayment terms of 12 to 60 months.
Unfortunately, aside from requiring a minimum credit score of 580, Avant is a bit vague about its other eligibility requirements. It also charges an origination fee Up to 4.75%, though this isn’t nearly as much as other lenders, such as OneMain Financial or Upgrade.
If your credit score isn’t quite up to Avant’s standards, you may have a hard time qualifying for a loan as this lender doesn’t offer a cosigning option.
| Pros | Cons |
|---|---|
| Receive funds as soon as the next business day Flexible loan terms No prepayment penalties | No option to apply with a cosigner Charges a high origination fee (Up to 4.75%) Unclear eligibility requirements |
Happy Money is an online lender that only provides loans for credit card debt consolidation. It requires a minimum 640 credit score, so they can be a good debt consolidation option for fair credit borrowers. However, you’ll likely be charged an origination fee of 0.00% - 5.00% of the loan amount. A 5% origination fee on a $5,000 loan is equal to $250.
Aside from an origination fee, Happy Money doesn’t charge fees, including late fees or prepayment penalties. Potential borrowers can also prequalify with a soft credit check. Prequalification doesn’t guarantee you’ll be approved, but it’s a good way to see the loan terms you may get before you formally apply.
Happy Money is available in most states, with the exception of Massachusetts and Nevada. Most loans are funded within two to five business days of loan approval.
| Pros | Cons |
|---|---|
Low, fixed rate APRs Prequalification and fast funding No late fees or prepayment penalties | Can be used for debt consolidation only High minimum borrowing amount No joint applications |
As an online personal loan marketplace, LendingClub offers loans ranging from $1,000 to $40,000.
Those with lower credit scores or a lack of credit history may benefit by going through LendingClub for a loan, as this company allows you to co-borrow. This means that you can apply with a second individual, which can increase your chances of getting approved for a loan. However, co-borrowing isn’t without its risks — the person who signs a loan with you will be held equally responsible if you’re unable to make repayments on it.
While LendingClub charges an origination fee between 3.00% - 8.00%, it does allow applicants to prequalify within minutes so they can check their potential rates, terms and loan amounts.
| Pros | Cons |
|---|---|
Allows borrowers to file joint applications Allows applicants to prequalify within minutes Offers the option to place funds into your bank account or directly pay your creditors | Charges an origination fee of 3.00% - 8.00% Funding can take several days, where other lenders provide funds within one business day APR can go as high as 35.99% |
To qualify for a LendingPoint loan, applicants must have a minimum credit score of 640, minimum income of $40,000 and not live in Nevada or West Virginia.
LendingPoint does offer borrowers a wide range of loan terms of 24 to 72 months, so borrowers seeking repayment flexibility may find it with this lender.
Depending on where they live, borrowers may also have to pay an origination fee of 0.00% - 8.00% if they decide to take out a personal loan with LendingPoint, which will be deducted from the total amount of the loan.
| Pros | Cons |
|---|---|
Flexible loan terms of 24 to 72 months Receive funds as soon as next business day No prepayment fees | May charge an origination fee of 0.00% - 8.00% No option for joint or cosigned loans Not available in all 50 states |
With available amounts up to $100,000, LightStream offers the largest loans on our list of fair credit lenders. However, the minimum amount borrowers can take out is $5,000, so this lender may not be a great choice for those looking for small personal loans.
LightStream’s lack of fees and lower APRs may make it an attractive lender for some borrowers. This lender even offers a 0.50% autopay discount as well as same-day funding.
Before applying for a personal loan, however, borrowers should keep in mind that Lightstream doesn’t offer prequalification. Borrowers will have to go through a hard credit check (which may temporarily impact your credit score) in order to see what rates and terms LightStream is willing to offer.
| Pros | Cons |
|---|---|
Low maximum APR rate of 7.99%-25.49% Offers autopay discount of 0.50% Can receive same-day funding | Doesn’t offer prequalification Requires a higher credit score than other fair credit lenders Borrowers need an established credit history to qualify |
OneMain Financial, a lender with an online application and 1,400 physical branches, offers loans for fair credit borrowers for a variety of purposes. If you need money for an auto repair or even a vacation, you can apply for a loan through OneMain Financial online to check your eligibility.
OneMain Financial has higher starting APRs than many other lenders, but it’s still worth checking your rate. Since you have fair credit, you might find that the rates are comparable to what other lenders are offering. You can prequalify online without hurting your credit score. You may be offered a secured or unsecured loan, depending on your creditworthiness.
It’s also easy to get fast cash from OneMain Financial. It takes just ten minutes to complete the online application, and once you sign the agreement at your local branch, you can get the money as soon as the next business day.
| Pros | Cons |
|---|---|
Can be used for almost any purpose Secured loan option Get your funds quickly | High origination fees of 1.00% - 10.00% Higher starting APRs Lack of transparency around eligibility |
Prosper is an online peer-to-peer lending marketplace, meaning your loan would be funded by individual investors. Depending on eligibility, you could access personal loans for fair credit that can be used for a variety of purposes, from home improvement projects to engagement ring financing. These loans come with a fixed rate and no prepayment penalty, so you’ll know what to expect from your monthly payments and can get ahead when you are able.
Compared with Happy Money, Prosper charges a potentially higher origination fee between 1.00% - 5.00% of the loan amount. Its maximum APR is also higher, at 35.99%. Still, if you have fair credit, you can expect your APR to be on the higher end, no matter the lender.
As is typical with peer-to-peer lending, the application process can take longer than if you worked with a direct lender. The formal loan approval decision takes up to five business days. Upon loan approval, funds can be disbursed within one to three business days after loan approval, but you can prequalify without a hard pull on your credit.
| Pros | Cons |
|---|---|
Can be used for almost any purpose Joint applications welcome No prepayment penalties | Not available in all 50 states Guaranteed origination fee Loan approval and disbursement may be slow |
Upgrade is a direct online lender that offers personal loans for almost any reason, from a major purchase to business expenses. As with other companies in this list, you can check your loan eligibility and potential terms online without affecting your credit score.
Upgrade charges a high origination fee between 1.85% - 9.99% of the loan amount, there are no other upfront fees. There’s no prepayment penalty, either, but you will be charged for late payments or insufficient funds. Once you’ve been formally approved for a personal loan, you can expect to receive the funds within one business day.
| Pros | Cons |
|---|---|
Can be used for almost any purpose Get your funds quickly No prepayment penalty Credit health tools included | Late payment and insufficient fund fees Origination fee can be high Charges late fees if you’re more than 15 days behind payments |
Ranging from $1,000 to $50,000, Upstart offers borrowers a wide variety of loan sizes to choose from, whether they want a large or small loan. Upstart also offers borrowers a quick turnaround time with approved borrowers receiving their funds within one business day.
Upstart does charge an origination fee of 0.00% - 12.00% depending on where you live, which is higher than some other lenders. Personal loans from Upstart aren’t available in all 50 states, so borrowers will need to check if they live in an area that Upstart serves.
| Pros | Cons |
|---|---|
Low minimum credit score of 300 Offers wide variety of loan amounts Flexible APRs | Charges an origination fee of 0.00% - 12.00% Limited repayment options of 36 and 60 months Not offered in Iowa or West Virginia |
When applying for personal loans with a low credit score, you should be aware that it could be costly to borrow money. That’s because typical personal loans are unsecured, and, thus, lenders will rely more heavily on your credit and financial information to make a loan decision. If approved, expect a higher interest rate; the starting APRs for these lenders are only available to borrowers with excellent credit. You can expect an origination fee as well.
You should only take out a fair credit personal loan if you need to borrow a larger amount and relatively quickly. For example, a credit card may have a lower cost depending on the loans you qualify for. In July 2021, the average APR on a fair credit personal loan (22.75%) was higher than the average APR on a new credit card that accrues interest (19.62%).
If you do need a personal loan, it’s best to compare rates from multiple lenders before making a decision.
While personal loans for fair credit may be a good option for some people, other alternative options worth exploring may include the following:
Personal line of credit: A personal line of credit is similar to a credit card in that you may withdraw funds up to a certain amount. You only owe interest on the amount you borrow. Unlike personal loans, personal lines of credit have variable interest rates.
Secured loan: 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 (such as a vehicle) in order to lower your risk in the eyes of lenders.
Credit card: A credit card, particularly one with a 0% intro APR, may be a good alternative to a fair personal loan, especially since you may be able to find a lower interest rate or skip out on paying interest for a set period of time.
Yes! 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 those with good or excellent credit.
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 ID and housing costs.
Loans that don’t require credit checks, like payday loans, can be easy for borrowers to qualify for as well as receive funds quickly. However, these types of loans are often predatory and can charge interest rates as high as 391%. 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 score, so be sure to ask the lender directly before applying. Some lenders offer loan products specifically for borrowers with fair or bad credit.
