Best Personal Loans for Fair Credit of 2020

Get approved at a reasonable rate

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A personal loan can help you take control of high-interest debts or fund a major purchase. Most of them have fixed monthly payments, which can make it easier to budget for your payments. And there’s no need to pledge collateral to get approved, as there is with some other types of loans. If you have fair credit, a variety of lenders can help you get a personal loan with reasonable terms.

It’s wise to shop around and compare terms from several lenders. But stick to lenders who do a “soft pull” or “soft inquiry” of your credit report or those who say that checking offers won’t hurt your credit score. 

What it Means to Have Fair Credit

The term “fair credit” here refers to your FICO score. We’re assuming lenders use the FICO 9 scoring model, and we’re targeting personal loans for scores in the 650 to 699 range. If you have a lower credit score, check out our list of best personal loans for bad credit.

For the list below, we’ve chosen lenders likely to provide the funding you need at a reasonable price and with fixed interest rates. What’s more, these lenders should be easy to work with because your time is valuable. The process doesn’t need to be painful. 

Best Personal Loans for Fair Credit

Best for a Long Track Record Online:

Prosper Logo was a pioneer in online lending and claims its place as the first peer-to-peer (P2P) lender in the U.S. Prosper keeps it simple with a three-year repayment term or a five-year option, and you can pay off your loan early at no additional charge. Rates range from 5.99% to 35.97% APR. However, with fair credit, expect rates near the middle of that range—the lowest rates are only available to borrowers with excellent credit.

What We Like
  • Fixed rates make it easy to budget while you pay off debt

  • Three- and five-year terms keep payments manageable without piling up interest costs

  • No prepayment penalty

  • Easy to check your rate before borrowing

What We Don't Like
  • Depending on creditworthiness, high rates can make borrowing expensive

  • Origination fees require borrowers to take out extra to fund major purchases

Best for High Earners: Upstart

upstart logo

Upstart, launched in 2014 by former Google executives, takes a unique approach to evaluating personal loan applications. In addition to reviewing your credit history and income, Upstart takes your education and work history into account when approving loans. APRs range from 6.14% to 35.99%, and Upstart reports that the average borrower pays 20% APR. Upstart may charge a one-time origination fee, as well.

What We Like
  • Your degree or work history can help you get approved with fair credit

  • Loans as small as $1,000

  • Three- and five-year repayment terms

  • Next-day funding available

  • Fixed interest rates

What We Don't Like
  • Origination fees as high as 8%

  • Potential for high rates, depending on your application

Best for Improving Credit Scores: LendingClub


LendingClub is a marketplace lender offering P2P loans as well as funding from institutional investors. According to a LendingClub representative, you can qualify with a credit score as low as 600. Other factors, like your income and debt payments, affect whether or not you’ll get approved. Rates range from 6.95%-35.89% APR, and you pay an origination fee of 1% to 6% when you receive funds.

What We Like
  • Personalized rate quotes are quick and easy to get

  • Fixed interest rates keep loan payments stable

  • Loan amounts as little as $1,000 available

  • No prepayment fees, so you can repay early

What We Don't Like
  • Potentially expensive borrowing source if you pay the highest rates

  • It can take seven days to receive funds after you apply

  • Origination fee

Best for Higher Credit Scores: SoFi


SoFi has relatively low rates and no origination fee. But it requires a credit score of at least 680, making it harder for those with fair credit to obtain a personal loan. That said, if your credit score is high enough, factors like your work history and your income can help you secure those lower rates. APRs range from 5.99% to 20.91%.

What We Like
  • No late payment fees, though late payments can damage your credit

  • Signing up for automatic payments reduces your rate by 0.25 percentage points

  • Fixed rate prevents surprise payment increases

  • No origination fee

What We Don't Like
  • Minimum loan amount of $5,000 ($10,000 in CA) might be more than you need

  • You might not qualify with fair credit

Best Newcomer: Marcus by Goldman Sachs


Marcus is a relative newcomer to personal loans, but Goldman Sachs is a well-established financial services company. Marcus evaluates your credit history alongside other financial details like your income and housing expenses to determine your creditworthiness. According to a Marcus representative, you can qualify with a FICO Score as low as 660. Rates range from 6.99% to 28.99% APR, and there are no fees to borrow with Marcus.

What We Like
  • No origination fee

  • No late fees, though paying late can increase costs and damage your credit

  • Fixed interest rate for consistent payments

What We Don't Like
  • Minimum loan amount of $3,500 could exceed your needs

Best for Personal Attention: Local Banks and Credit Unions

When you’re applying for a personal loan, it’s wise to include a local financial institution in your search. Particularly with fair credit, you might benefit from having a human rather than an automated system review your finances. 

For example, you might be able to explain temporarily-high credit card balances that were a result of unexpected medical bills. Plus, if a bank employee can see your checking and savings accounts—which shows healthy financial behavior—they may be more likely to make exceptions. 

Credit unions, as community-focused, not-for-profit organizations, might be especially willing to approve your application. 

What We Like
  • Potential same-day funding

  • A loan officer at the financial institution might review your credit history

  • If you have accounts at your local bank, they have visibility into your finances, which could help you get approved

  • Support for organizations in your area

What We Don't Like
  • An in-person visit may be inconvenient

  • The application process may be cumbersome and require substantial manual input

  • May require credit union membership

Article Sources

The Balance requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. Prosper. "Personal Loans Rates and Fees," Accessed Dec. 4, 2019.

  2. Upstart. "Personal Loans," Accessed Dec. 4, 2019.

  3. Upstart. "What Fees am I Charged?" Accessed Dec. 4, 2019.

  4. LendingClub. "Personal Loan Rates and Fees," Accessed Dec. 4, 2019.

  5. SoFi. "Compare Rates and Terms," Accessed Dec. 4, 2019.

  6. Marcus: By Goldman Sachs. "We're Offering Personal Loans With No Fees. Ever." Accessed Dec. 4, 2019.