Best personal loans for fair credit
Consider these lenders if you have credit score below 670
Partner Disclosures
A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,008 for a term of 36 months, with an interest rate of 11.74% and a 6.00% origination fee of $1,140 for an APR of 16.09%. In this example, the borrower will receive $17,868 and will make 36 monthly payments of $629. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states. For Personal Loans, APR ranges from 8.91% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of Oct 10, 2024 and are subject to change without notice. Unless otherwise specified, loans are made by LendingClub Bank, N.A., Member FDIC (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. LendingClub Bank is not an affiliate of Consumer Affairs and is not responsible for the products and services provided by Consumer Affairs. Loans are subject to credit approval and sufficient investor commitment. If a credit union is selected to invest in the loan, credit union membership will be required. Certain information that LendingClub Bank subsequently obtains as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that you request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com. “LendingClub” is a trademark of LendingClub Bank.
Partner Disclosures
*Trustpilot TrustScore as of June 2024. Best Egg loans are personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, N.A., Member FDIC, Equal Housing Lender. The Best Egg Credit Card is issued exclusively by First Bank & Trust, Member FDIC, Brookings SD pursuant to a license by Visa International. Visa is a registered trademark, and the Visa logo design is a trademark of Visa International Incorporated. “Best Egg” is a trademark of Best Egg Technologies, LLC. Offers may be sent pursuant to a joint marketing agreement between Cross River Bank, Blue Ridge Bank, N.A. and/or First Bank & Trust and Marlette Marketing, LLC, a subsidiary of Best Egg, Inc. The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500; Ohio, $5,001; and Georgia, $3,001. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $100,000. Annual Percentage Rates (APRs) range from 6.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%– 9.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. For example: a 5?year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3?year $5,000 loan with 6.99% APR has 36 scheduled monthly payments of $152.83. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories. TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR CALL– Operations Manager, Email: crt resolutions@bestegg.com, Address: P.O. Box 42912, Philadelphia, PA 19101, Phone: 1-855- 282-6353. This lender is licensed and regulated by the New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints, contact the division by telephone at (505) 476-4885 or visit the website https://www.rld.nm.gov/financial-institutions/
A personal loan can be an effective way to gain fast access to cash. If you have excellent credit, you’re in a good position to secure a personal loan with a low interest rate. With a fair credit score, which FICO defines as ranging from 580 to 669, it's still possible to get approved for a loan, but you might not qualify for the best rates or terms.
Key insights
- Qualifying for a personal loan with a fair credit score (580 to 669) can be challenging, but it is possible.
- Before selecting a lender, compare and evaluate your options based on interest rates, repayment terms and fees.
- To improve your chances of qualifying for a personal loan and secure better terms, consider increasing your credit score above 670 (into FICO’s “good” credit score range) before applying.
Our recommendations for personal loans for fair credit
To make our choices for the best personal loans for fair credit, we collected 806 data points (26 individual data points for 31 lenders), including customer reviews and overall ratings from ConsumerAffairs readers, for popular lenders. We used these data points to evaluate factors that have the most impact on borrowers, including credit score requirements, APRs, time to funding and fees, before making our final selections.
Our picks may be Authorized Partners who compensate us. This does not affect our recommendations or evaluations but may impact the order in which the companies appear.
If you have fair credit and are looking for a personal loan you can use for almost anything, you might want to consider Best Egg. It’s an online loan servicer, and it offers personal loans that you can use for debt consolidation, credit card refinancing, home improvement, moving, vacations, special occasions, baby and adoption expenses, and major purchases.
At the time of publication, its personal loans range from $2,000 to $50,000 with APRs from 7.99% to 35.99% and three- or five-year terms.
After filling out an application online, Best Egg claims you will know if you are approved in a few minutes. If you qualify, you can then choose an offer, and you’ll be asked to verify the information you submitted in your application. Once you’ve verified your info, you can expect the money in your account within one to three business days.
Our full profile of Best Egg provides more details about this lender.
What we like
- Personal loans can be used for a variety of purposes
- Direct creditor payment option on debt consolidation loans
- Quick access to funds (1 to 3 business days)
What to consider
- Origination fee of 0.99% to 8.99% of your loan amount
- Only two repayment terms (either 3 or 5 years)
What reviewers say
The reviews for Best Egg on ConsumerAffairs are overwhelmingly positive. Customers appreciate the straightforward application process and how quickly they were approved. One reviewer stated that “the process was straight to the point, and it was one of the easiest I've done applying for anything.” However, a few reviewers felt that the interest rates were too high, and some were hesitant about the required automatic payments
- $40,000 max loan amount
- 36- to 72-month repayment terms
- 660 minimum credit score recommended
- Consumer rating: 2.0
Marcus by Goldman Sachs is a good option for borrowers with fair credit who want an online lender and no-fee personal loans. Loan options include debt consolidation loans, home improvement loans and MarcusPay point-of-sale loans for travel expenses.
Most of the company’s personal loans, including debt consolidation and home improvement loans, range from $3,500 to $40,000, with APRs between 6.99% and 24.99%. Terms vary from three to six years. MarcusPay loans are different, ranging from $300 to $10,000 with APRs of 8.99% to 29.99% and payment terms of six, 12 or 18 months.
To apply, complete an online application form, and if you’re approved, you can get your funds within five days. (MarcusPay loans are available when purchasing travel accommodations through official partners.)
Read our full profile of Marcus by Goldman Sachs for more information.
As of February 2023, Marcus by Goldman Sachs is offering personal loans by invitation only. Rates and loan terms may have changed.
What we like
- No fees
- Direct creditor payment option on debt consolidation loans
- 0.25% APR discount if you sign up for automatic payments
- One-month payment deferral available after a year of on-time payments
What to consider
- Can take 5 days or longer to receive funds
- Recommended credit score is on the high end of the fair range
What reviewers say
At the time of publishing, there were few ConsumerAffairs reviews specific to Marcus by Goldman Sachs personal loans. Some reviewers were impressed with the quality of the company’s customer service, but some felt the application and approval process took too long.
- $35,000 max loan amount
- 12- to 60-month repayment terms
- Undisclosed minimum credit score
- User star rating: 1.1
Avant, formerly AvantCredit, is a Chicago-based financial technology (fintech) company that specializes in lending to middle-income consumers. It’s a good choice for those looking for quick funding.
Avant offers a variety of personal loan programs, including debt consolidation, emergency, home improvement and installment loans. Personal loans range from $2,000 to $35,000, with APRs between 9.95% and 35.95% and loan terms between one and five years.
To apply for an Avant loan, you must complete an online application. If approved, Avant will deposit your loan as soon as the next business day.
For more details, you can read our full Avant profile.
What we like
- Flexible loan terms (1 to 5 years)
- Funds are deposited as soon as the next day following approval
What to consider
- Higher APR range than many competitors
- Most borrowers have credits scores between 600 and 700
What reviewers say
ConsumerAffairs readers praise Avant’s customer service and application process. One reviewer stated, “I could not believe how fast and easy it was to apply and receive my deposit!” However, others were concerned with the higher interest rates on its loans, and there are several negative reviews regarding the Avant credit card.
LendingClub is a California-based fintech marketplace bank offering a range of financial products and services.
LendingClub advertises its personal loans for a variety of purposes, including credit card consolidation, balance transfers, consolidating other debts and home improvement. With a LendingClub personal loan, you can borrow between $1,000 and $40,000. Personal loan APRs range from 9.06% to 35.99%, and terms of three to five years are available.
You can request for LendingClub to send your loan directly to your creditors, and you also have the option to apply for a joint loan with another borrower.
To apply for a LendingClub loan, you need to provide some personal and financial details on its website. If your request is approved, you can then select a loan offer based on the rate, terms and payment options you prefer. Once your loan is approved, the money is sent straight to your bank account or directly to your creditors.
Loans are available to residents of all U.S. states except Iowa.
You can read more information about this lender in our full LendingClub profile.
What we like
- Offers personal loans from $1,000 to $40,000
- Direct creditor payment option on debt consolidation loans
- Offers joint personal loans for co-borrowers
- No application or prepayment fees
What to consider
- Charges origination fees between 3% and 6%
- Charges late fees on payments more than 15 days late
What reviewers say
ConsumerAffairs readers give LendingClub mixed reviews. Some state that LendingClub was willing to give them a loan despite low credit scores or negative marks like bankruptcies on their credit reports ( one reviewer even stated, “To be honest, I never thought anyone would ever give me another line of credit or loan for that matter.”). At the same time, others thought the customer service was lacking and, in some cases, the interest rates were too high.
- $40,000 max loan amount
- 24- to 60-month repayment terms
- 640 minimum credit score
- User star rating: N/A*
*Not enough user reviews
Happy Money, previously known as Payoff, is a California-based financial technology company offering a debt consolidation loan called the “Payoff Loan.”
You can borrow between $5,000 and $40,000 from Happy Money. APRs range from 7.99% to 29.99%, and terms vary from two to five years.
You can apply for a Happy Money loan online. If you qualify, you can choose from multiple loan options based on your monthly payment, rate and terms. Once you’ve selected an option, Happy Money will finalize the legal documents and verify your information before sending the money to your account. You can also request Happy Money to pay off your creditors directly.
Happy Money is available to borrowers in 48 U.S. states (not available in Massachusetts and Nevada).
You can learn more by reading our profile of Happy Money.
What we like
- No prepayment or late fees
- Direct creditor payment option on debt consolidation loans
- Reports to all three major credit bureaus
What to consider
- Only offers a credit card consolidation loan
- No joint applications
- Requires 3+ years of credit history
What reviewers say
There are few reviews of Happy Money from ConsumerAffairs readers, but the feedback has been mixed. Some borrowers are pleased with their experiences and willing to use the company again. However, some readers report being unhappy with the customer service and delays in application processing.
How to get a loan with fair credit
Securing a loan with fair credit is possible, but don’t expect to score the lowest interest rate or the best terms. Here are some things to consider when trying to get a fair credit loan.
Improve your credit score
If you want to qualify for a better interest rate and you don’t need a loan immediately, you might want to try increasing your credit score above 670. This is the lowest score that FICO considers a “good” credit score, so it may help you qualify for more loan options with better terms
Compare fair credit lenders
If you’re in a pinch and you need to borrow with a fair score, make sure you do your research and shop around between lenders that offer personal loans to people with fair credit.
Compare lenders on factors like interest rates, fees and repayment terms. Also, confirm that you have the necessary qualifications to apply. For instance — if the lender’s minimum credit score is 660, make sure you meet this target. If you don’t know what the qualifications are, you can usually complete an online application to see if you pre-qualify. Pre-qualifying for a loan typically will not hurt your credit score as only a soft credit check is performed, but it will give you a better idea of the loans you are eligible for.
» MORE: How to obtain a personal loan pre-qualification
Consider adding a co-signer or a co-borrower
If you’re struggling to qualify for a loan, look for one that permits a co-signer or co-borrower:
- A co-signer is someone who takes on the responsibility to repay the loan if you (the primary borrower) miss a payment.
- A co-borrower is a person who applies for a loan with you and gets equal access to the funds. You are both responsible for repayment.
Including a co-signer or co-borrower can provide the lender with the extra reassurance they may need to lend you money.
Frequently asked questions
What is considered a fair credit score?
According to FICO, a fair credit score ranges from 580 to 669.
How much of a loan can I get with fair credit?
How much of a loan you can get with a fair credit score will vary by lender. Our top personal loan lenders for people with fair credit have loan maximums ranging from $35,000 to $50,000.
Factors including your income, employment, whether you own a home and how much debt you have may also impact how much you can borrow.
Are personal loans for fair credit legit?
It is absolutely possible to get a personal loan from a legitimate lender if you have fair credit. However, not every lender is trustworthy, and don’t expect to qualify for the best interest rates or repayment terms — those are typically reserved for people with excellent credit.
Bottom line
A personal loan can be an effective way to gain fast access to cash. With a fair credit score, it is possible to get approved for a loan, but you can expect fewer options and higher interest rates than someone with an excellent credit score.
When looking for a fair credit lender, compare them on factors like interest rates, repayment terms and fees. If you don’t need a loan immediately, you may also want to consider improving your credit score to potentially increase the number of loan options you qualify for.
