Best Personal Loans for Fair Credit

personal loans for fair credit

Personal loans for Fair credit ratings can be hard to find. While many lenders are leery to work with people who have fair credit scores because of the increased risk, several others are more than willing to provide both unsecured and secured options. This best-of guide will walk through several of these options and explain the basics of each.

1. Payoff

Payoff is an excellent option for credit card consolidation. However, it does require a higher minimum loan amount than the other lenders on this list, $5,000. You will need a credit history of at least three years and a score of 640 to qualify. Loans range between $5,000 and $40,000, with an estimated APR between 5.99% and 24.99% and term lengths between two and five years. You might have to pay an origination fee of up to 5%.

2. Upgrade

Upgrade provides loans to qualifying applicants with a minimum credit score of 580, meaning most borrowers with a fair rating can qualify. The company offers secured, joint, and co-signed loans. One potential drawback is the hefty origination fee of up to 8% of the loan’s value. Loan amounts vary between $1,000 and $50,000, with an APR between 6.94% and 35.97% and a term limit of up to 40 months. You can get a rate discount when you enroll in autopay.

3. Upstart

Upstart is an excellent option if you do not have a long credit history. It is also an excellent option for people with lower-end fair credit scores, at least 580. Loan values range between $1,000 and $50,000, with estimated APRs between 8.27% and 35.99% and terms between three and five years. Like some of the other lenders on this list, Upstart can charge up to an 8% origination fee.

4. Prosper

If you are looking for a lender with flexible payment options, look no further than Prosper. Prosper is another peer-to-peer lender, but unlike LendingClub, it requires a minimum credit score of 640. With APR rates between 7.95% and 35.99%, the company is a typical fair credit lender. You can borrow amounts between $2,000 and $40,000 for up to five years. You will have to pay an origination fee between 2.41% and 5% of the loan’s value, which is lower than other options on this list.

5. FreedomPlus

FreedomPlus is not a typical lender; it specializes in debt consolidation and will make direct payments to creditors. Loan amounts through this company can be up to $40,000, with the estimated APR between 7.99% and 29.99%, depending on your qualifications. This lender requires a minimum credit score of 620 and a credit history of at least three years. This lender is known for its joint loans.

6. LendingClub

LendingClub is a peer-to-peer or aggregate lender, meaning that it connects qualified borrowers with willing and available lenders. It is best for debt consolidation and provides options for loans between $1,000 and $40,000, with an estimated APR between 8.05% and 35.89% and term lengths between three and five years. Prospective borrowers will need a credit score of at least 600 to qualify.

7. Rocket Loans

Another excellent option with fast funding is Rocket Loans. This lender offers a prequalification option that performs a soft credit check to see your chances of approval. You can also get a rate discount with autopay, and the company can fund many loans on the same day. Loan amounts vary between $2,000 and $45,000, with an APR between 7.16% and 29.99%. Applicants should have a minimum credit score of 640.

Bottom Line

The above seven loan options are only a fraction of those available to borrowers with fair credit. The only thing to remember is that lower credit scores and shorter histories often equate to higher interest rates.

Quick Questions

Can you get personal loans for fair credit borrowers?

Like banks, many conventional lenders will not lend to people with fair credit; however, other private lenders will. Consider using a loan aggregator or peer-to-peer network to review your best options for securing a personal loan with fair credit.

When should you apply for personal loans for fair credit?

Reasons for taking out a personal loan vary from person to person. One of the most common reasons for securing a fair credit personal loan is for debt consolidation.

What factors does a lender consider before approving a loan?

All lenders have specific requirements they expect applicants to meet before approving a loan. Several common factors will include:

Credit score
Credit history
Relationship with the lender

Fair credit does not exclude you from acquiring a loan. If you want more information about your loan options, check out our guide to the Best Loans of 2021.

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