Best Personal Loans for Fair Credit

Some lenders consider factors beyond credit score for those with fair credit

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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 make it easier to budget for your monthly payments. And there’s no need to pledge collateral to get approved, which might be a requirement with some other types of loans.

If you have fair credit, which FICO defines as a score between 580 and 669, borrowing isn't as easy as it would be with excellent credit. But a variety of lenders can help you get a personal loan with reasonable terms.

For the list below, we've chosen lenders likely to provide the funding you need at a reasonable price and with fixed interest rates. These lenders either say they don't have a hard minimum credit score, or they're willing to lend to people in the "fair" range. 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 of September 2020

Lender Best For Fixed APR Loan Amounts Terms Recommended Credit Score
Prosper Best for a Long Track Record Online 5.99%-35.97% $2,000-$40,000 36 or 60 months 640+
Upstart Best for High Earners 8.69%-35.99% $1,000-$50,000 36 or 60 months 600+
LendingClub Best for Improving Credit Score 10.68%-35.89% $1,000-$40,000 36 or 60 months 580+
SoFi Best for Higher Credit Scores 5.99%-18.83% with autopay $5,000-$100,000 24-84 months 670+
Marcus by Goldman Sachs Best for No Fees 6.99%-19.99% with autopay $3,500-$40,000 36-72 months 660+

If you value customer service and are looking for personal attention from your lender, consider getting a loan from your local bank or credit union. They tend to be community-focused.

Prosper: Best for a Long Track Record Online

Prosper Logo

Prosper was a pioneer in online lending and claims its place as the first peer-to-peer (P2P) lender in the U.S., making it a long-standing name among online lending companies. 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

Prosper Personal Loan Details

Loan Amounts $2,000-$40,000
Fixed APR 5.99%-35.97%
Loan Terms 36 or 60 months
Fees Late fee of $15 or 5%, origination fee between 2.41%-5%
Time to Receive Funds As little as 1 to 5 business days
Recommended Credit Score 640+

Upstart: Best for High Earners

upstart logo

Upstart, launched in 2012 by former Google executives, takes a unique approach in 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 8.69% to 35.99%. 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

  • 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

Upstart Personal Loan Details

Loan Amounts $1,000-$50,000
Fixed APR 8.69%-35.99%
Loan Terms 36, 60 or 84 months
Fees Late fee of $15 or 5%, origination fee between 0%-8%
Time to Receive Funds At least 1 business day
Recommended Credit Score 600+

LendingClub: Best for Improving Credit Scores


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 580. Other factors, like your income and debt payments, affect whether or not you’ll get approved. Rates range from 10.68%-35.89% APR, and you pay an origination fee of 2% 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

LendingClub Personal Loan Details

Loan Amounts $1,000-$40,000
Fixed APR 10.68%-35.89%
Loan Terms 36 or 60 months
Fees Late fee of $15 or 5%, origination fee between 2%-6%
Time to Receive Funds At least 4 business days
Recommended Credit Score 580+

SoFi: Best for Higher Credit Scores


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 the low rates SoFi offers. Fixed APRs range from 5.99% to 18.83% (with autopay).

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

  • Competitive rates

  • No origination fee

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

  • You might not qualify with fair credit

SoFi Personal Loan Details

Loan Amounts $5,000-$100,000
Fixed APR 5.99%-18.83% with autopay
Loan Terms 24-84 months
Fees No late fees or origination fees
Time to Receive Funds Typically within a week
Recommended Credit Score 670+

Marcus by Goldman Sachs: Best for No Fees


Marcus by Goldman Sachs 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 (or lower, in some cases). Rates range from 6.99% to 19.99% APR. While the lender's rates are higher than others on this list, Marcus stands apart because it charges no fees: origination, late, prepayment or otherwise.

What We Like
  • No origination fee

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

  • You can skip a payment if you make 12 consecutive on-time payments

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

Marcus by Goldman Sachs Personal Loan Details

Loan Amounts $3,500-$40,000
Fixed APR 6.99%-19.99% with autopay
Loan Terms 36-72 months
Fees No late fees or origination fees
Time to Receive Funds As little as 1 to 4 business days
Recommended Credit Score 660+

Local Banks and Credit Unions: Best for Personal Attention

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 particularly 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

How Do You Know What Credit Score Range You're In?

The term “fair credit” refers to your FICO score. Recent versions of FICO scores ranges from 300 to 850 points. Here's how the scores are categorized:

  • Excellent credit: 750-850
  • Good credit: 700-749
  • Fair credit: 650 to 699
  • Poor credit: 300-649

If you have a FICO score below 650, check out our list of best personal loans for bad credit.

As of Aug. 4, the average interest rate advertised by lenders that offer personal loans for fair credit is 16.23% across the more than two dozen lenders we track.

Will Shopping for a Loan Hurt My Credit Score?

You should shop around and compare personal loan terms before you decide on one. But getting quotes can ding your credit score if the lender performs a "hard pull" on your credit record to see if you qualify. That's why you should 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. 

Also, target loans like those on this list that indicate they may be available to people with fair credit. That way you won't waste your time or a credit pull on a product that isn't suited to you.

How Can I Improve My Chances of Getting a Loan?

There are several steps you can take to improve your chances of getting a loan:

  1. Check your credit report: You can get a free copy of your credit report from each of the three main credit bureaus (Experian, Equifax, and TransUnion) every year at Look over your credit reports to make sure there aren't any errors that could be hurting your credit score.
  2. Pay down your debt: If you have a high debt-to-income ratio when you apply for a loan, it could hurt your chances of getting approved. DTI compares your monthly gross income to your monthly debt payments. Paying down debt can lower your DTI and make you a less risky customer for lenders.
  3. Consider getting a co-signer: A co-signer, or co-borrower, is someone who signs the loan agreement with you and is responsible for payments if you default on the loan. If they have a better credit score or more income, a lender may feel more comfortable giving you the loan.

How Should I Choose a Fair Credit Lender?

When looking for a lender, you won't have as many choices as if you had excellent credit. But it's still important to find the best lender you can for your circumstances. Pay attention to these factors:

  • Interest rates: Lenders generally reserve the lowest interest rates for applicants with high credit scores. But you should still look for the lowest APR available to you.
  • Fees: Some lenders charge personal loan origination fees when you borrow. Fees may range from 1% to 8% of the amount you borrow, though some lenders charge flat fees and others don't charge any fees. But be careful not to jump at the first no-fee loan you see. Do the math to make sure that the lender isn't making up for those costs with a higher APR.
  • Repayment terms: Consider how long you want to pay off the loan. A shorter repayment time will cost you less in interest overall but could stretch your monthly budget. Choose a lender that offers terms that are a good fit for you. Some let you choose which day of the month to make your payments as well, which could help you time your due dates around your paydays.

How We Chose the Best Personal Loans for Fair Credit

Our writers spent hours researching loan options from more than 50 different lenders. Recommendations are based on personal loan companies offering a combination of good interest rates, loan terms, low fees, loan amounts, speed of funding, and more. These loan recommendations take into account that all borrowers have different needs and financial situations that may require loans that meet various priorities. Not every recommendation is right for every borrower, so consider all of your options before applying.

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. Fair Isaac Corporation. "What Is a FICO Score and Why Is It Important?" Accessed Sept. 2, 2020.

  2. Prosper. "Personal Loans Rates and Fees." Accessed Sept. 2, 2020.

  3. Upstart. "What Fees am I Charged?" Accessed Sept. 2, 2020.

  4. LendingClub. "Personal Loan Rates and Fees." Accessed Sept. 2, 2020.

  5. SoFi. "Compare Rates and Terms." Accessed Sept. 2, 2020.

  6. Marcus by Goldman Sachs. "We're Offering Personal Loans With No Fees. Ever." Accessed Sept. 2, 2020.

  7. FICO. "Updated Infographic: What Does a High Credit Scorer Look Like?" Accessed Sept. 2, 2020.