Nicole Dow
Annie Millerbernd
Laura McMullen
The best personal loans for fair credit let you repay a lump sum of money over a few years with monthly payments you can comfortably afford.
Checking rates is free and won't impact your credit score.
Best for secured loans
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt.
Read our review of Best EggBest Egg is worth considering for borrowers looking for a secured loan or to consolidate debt.
Read our review of Best EggBest for joint loans
2025 NerdWallet award winner
7.90 - 35.99%
$1K - $60K
600
2 to 7 years
A LendingClub personal loan is a standout option for qualified borrowers who want to pay off debt with flexible terms.
Read our review of LendingClubA LendingClub personal loan is a standout option for qualified borrowers who want to pay off debt with flexible terms.
Read our review of LendingClubBest for debt consolidation
2025 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Upgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
Read our review of UpgradeUpgrade accepts lower credit scores than similar lenders, and it offers multiple rate discounts for its personal loans.
Read our review of UpgradeBest for fast funding
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Read our review of UpstartUpstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases.
Read our review of UpstartOur team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
Your credit score is often a key factor that determines whether you qualify for a personal loan and at what rate.
Having fair credit (a score from the mid-500s to the low 600s) won’t exclude you from getting a personal loan. You just might have fewer borrowing options and a higher annual percentage rate than if you had good or excellent credit.
Our picks for the best personal loans for fair credit accept borrowers with credit scores as low as 600. In addition, we selected lenders that have favorable features such as fast-funding, rate discounts and the ability to secure a loan or add a co-borrower.
Here’s how the top personal loans for fair credit stand out.
Best Egg offers two ways to secure a personal loan. Borrowers can either use a vehicle as collateral or, if they’re homeowners, they can secure their loan using permanent home fixtures like kitchen cabinets or bathroom vanities. Fair-credit borrowers will likely get a lower rate by opting for a secured loan from Best Egg rather than an unsecured loan from the lender.
LendingClub offers the option to apply for joint loans with a co-borrower, which can be especially useful for fair-credit borrowers. A co-borrower has equal access to the loan funds and shares responsibility for repayment. Adding a co-borrower with a higher credit score or income could boost loan approval chances or help borrowers get a lower rate or higher loan amount.
Fair-credit borrowers who get debt consolidation loans through Upgrade can have funds sent directly to their creditors, streamlining the debt payoff process. They can also receive a rate discount of 1 to 4 percentage points for opting for direct pay on a debt consolidation loan.
Upstart boasts instant approval and can fund loans in one business day. When you need money quickly, being able to get a personal loan in 24 hours is helpful.
» COMPARE: See your bad-credit loan options
Check your credit reports from the three major credit bureaus to spot any errors or opportunities to improve your credit. If you don’t need a loan right away, consider taking extra time to build your credit before you apply for a personal loan.
Pre-qualifying for a personal loan lets you see how likely you are to be approved and preview potential offers. Lenders typically use a soft credit check to pre-qualify loan applicants, which doesn’t impact one’s credit. Check offers from multiple lenders to find the best rate and terms.
Here are key factors to consider when comparing loan offers:
» MORE: Features to compare on a personal loan
Once you’ve selected the right lender for you, it’s time to apply. Online applications usually take only a few minutes to complete, but some banks and credit unions may require an in-person visit.
A tip to speed things up: Gather documents, including W-2s, pay stubs and government-issued IDs, before you apply.
Lenders will often perform a hard credit check once you apply, which can cause your credit score to dip by a few points.
If approved, your final step is to sign your loan documents. Read the fine print so you understand all aspects of the loan agreement. Most lenders will fund a loan within a few days, and your first payment is often due about 30 days after funding.
» MORE: How to get a personal loan
Most personal loans are unsecured, but some lenders offer secured personal loans, which require collateral. Pledging something valuable a lender can take if you can’t repay makes the loan less risky, which may mean better approval odds for you. Banks and credit unions typically let you use a savings or investment account to secure the loan, while online lenders may prefer a vehicle.
Adding a co-signer with better credit or a higher income may help you qualify for a lower rate. A co-signer is someone who agrees to pay the loan if you can’t, but that person doesn’t have access to the money.
You may also consider a joint personal loan, which is similar to a co-signed loan except that your co-applicant can access the funds. In both cases, if you fail to repay the loan, your co-applicant is responsible for repayment — and both of your credit scores can take a hit.
Lenders verify your income to make sure you’re able to repay a loan. Many personal loan lenders accept income from not just from employment, but from alimony, Social Security payments, child support and retirement. Be sure to account for all your income on a personal loan application.
» MORE: How to boost your chances of personal loan approval
Our expert take
"Personal loans are likely less expensive for fair-credit borrowers than credit cards and payday loans. Fair-credit borrowers may qualify for a personal loan with a rate around 20%, while rates could be closer to 30% for a credit card and in the triple digits with a payday loan."
— Nicole Dow, Lead Writer and Content Strategist
While personal loans work best for large, one-time expenses, credit cards are better for everyday use. Some cards for fair credit even come with rewards.
Like personal loans, your credit is a factor in determining whether you qualify for a credit card. Your rate will likely be high, which is especially important to remember if you tend to carry a balance.
» MORE: Best credit cards for fair credit
If you need to make a large purchase such as a mattress or laptop, a “buy now, pay later” loan may be an inexpensive alternative to personal loans and credit cards.
BNPL apps often only do a soft credit check and don’t charge interest on their short-term payment plans. BNPL is offered at many major retailers. Proceed with caution, though, as these plans can lead to overspending.
» MORE: What is buy now, pay later?
A cash advance app lets you borrow up to a few hundred dollars from your next paycheck. Like payday loans, apps don’t check credit and withdraw repayment on your next payday, but they usually have lower fees. If you can repay the money in two weeks or less, an advance from an app can get you cash quickly.
» MORE: Top cash advance apps
Though it could be awkward to ask, a loan from a friend or family member can be an affordable, no-credit-check borrowing option. You and the lender can draw up a loan agreement, including rates, terms and interest, to avoid any misunderstandings. Tread lightly with this type of loan — your relationship with the lender could be damaged if you fail to repay the loan as promised.
» MORE: What is a family loan?
