Best Personal Loans for Fair Credit of February 2023
Compare rates and terms among lenders offering personal loans for fair credit.
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Your credit score is a key factor that determines whether you qualify for a personal loan. Applicants with fair credit scores — generally from 630 to 689 — may have a harder time qualifying for a loan than those with good or excellent credit.
But it’s still possible. Many lenders consider additional factors on an application, such as education, whether you rent or own your home, income and outstanding debts.
Here are the best personal loans for fair credit, plus information about how to qualify and build your credit.
Upstart: Best fair-credit personal loans for thin credit histories.
LendingClub: Best fair-credit personal loans with budgeting help.
Best Egg: Best fair-credit personal loans with low rates.
Happy Money: Best fair-credit personal loans for debt consolidation.
Achieve: Best joint fair-credit personal loans.
Rocket Loans: Best fair-credit personal loans with fast approval.
First Tech: Best fair-credit personal loans from a credit union.
Prosper: Best flexible fair-credit personal loans.
» COMPARE: See your bad-credit loan options
Your credit score is a key factor that determines whether you qualify for a personal loan. Applicants with fair credit scores — generally from 630 to 689 — may have a harder time qualifying for a loan than those with good or excellent credit.
But it’s still possible. Many lenders consider additional factors on an application, such as education, whether you rent or own your home, income and outstanding debts.
Here are the best personal loans for fair credit, plus information about how to qualify and build your credit.
Upstart: Best fair-credit personal loans for thin credit histories.
LendingClub: Best fair-credit personal loans with budgeting help.
Best Egg: Best fair-credit personal loans with low rates.
Happy Money: Best fair-credit personal loans for debt consolidation.
Achieve: Best joint fair-credit personal loans.
Rocket Loans: Best fair-credit personal loans with fast approval.
First Tech: Best fair-credit personal loans from a credit union.
Prosper: Best flexible fair-credit personal loans.
» COMPARE: See your bad-credit loan options
Best Personal Loans for Fair Credit
Lender | NerdWallet rating | Est. APR | Loan amount | Min. credit score | Learn more |
---|---|---|---|---|---|
Upstart Get rate on Upstart's website | Best for Fair-credit personal loans for thin credit histories | 6.50- | $1,000- | None | Get rate on Upstart's website |
LendingClub Get rate on LendingClub's website | Best for Fair-credit personal loans with budgeting help | 8.30- | $1,000- | 600 | Get rate on LendingClub's website |
Best Egg Get rate on Best Egg's website | Best for Fair-credit personal loans with low rates | 8.99- | $2,000- | 600 | Get rate on Best Egg's website |
Happy Money Get rate on Happy Money's website | Best for Fair-credit personal loans for debt consolidation | 7.99- | $5,000- | 640 | Get rate on Happy Money's website |
![]() Achieve Personal Loans Get rate on Achieve's website | Best for Joint fair-credit personal loans | 7.99- | $5,000- | 620 | Get rate on Achieve's website |
![]() Rocket Loans Get rate on Rocket Loans' website | Best for Fair-credit personal loans with fast approval | 7.73- | $2,000- | 640 | Get rate on Rocket Loans' website |
![]() First Tech Credit Union Personal Loan See my rates on NerdWallet's secure website | Best for Fair-credit personal loans from a credit union | 6.70- | $500- | 660 | See my rates on NerdWallet's secure website |
Prosper See my rates on NerdWallet's secure website | Best for Flexible fair-credit personal loans | 6.99- | $2,000- | 560 | See my rates on NerdWallet's secure website |
Our pick for
Fair-credit personal loans for thin credit histories
Our pick for
Fair-credit personal loans with budgeting help
Our pick for
Fair-credit personal loans with low rates
Our pick for
Fair-credit personal loans for debt consolidation
Our pick for
Joint fair-credit personal loans
Our pick for
Fair-credit personal loans with fast approval
Our pick for
Fair-credit personal loans from a credit union

on NerdWallet's secure website
First Tech Credit Union Personal Loan

Est. APR
6.70-Loan amount
$500-Min. credit score
660on NerdWallet's secure website
Our pick for
Flexible fair-credit personal loans
on NerdWallet's secure website
Prosper
Est. APR
6.99-Loan amount
$2,000-Min. credit score
560on NerdWallet's secure website
How we chose the best personal loans for fair credit
We compared more than a dozen lenders that require a minimum credit score between 560 and 660 to choose the best personal loans for fair credit. We reviewed factors such as income and other borrowing requirements, APR ranges, loan amounts, funding time and the ability to add a co-applicant or collateral.
What is fair credit?
A fair credit score is generally from 630 to 689. Lenders may use different definitions of fair credit based on different credit scoring companies. Most lenders use either FICO, which defines fair credit as 580 to 669, or VantageScore, which puts fair credit or “near prime” scores, between 601 and 660.
If you have a fair credit score, do what you can to move it into the good credit range because consumers in that range often have access to a wider range of personal loan options and often get lower rates.
Can you get a personal loan with fair credit?
You can get a personal loan with a fair credit score, but your options may be limited. Many banks and some online lenders look for borrowers with good or excellent credit.
A lower credit score usually means your personal loan will have a higher annual percentage rate. Use a personal loan calculator to estimate monthly payments based on your credit score.
Here are average personal loan rates by credit score:
How's your credit? | Score range | Estimated APR |
Excellent | 720-850. | 11.3%. |
Good | 690-719. | 15.6% |
Fair | 630-689. | 22.3%. |
Bad | 300-629. | 25.2%. |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace from July 1, 2022, to Oct. 31, 2022. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below a 500 credit score — are unlikely to qualify. Information in this table applies only to lenders with APRs below 36%.
How to compare fair-credit personal loans
Here are the most important features to compare on fair-credit loans.
Annual percentage rate
The APR on a personal loan is the loan’s interest rate plus any fees a lender charges. Use this number to compare the cost of one personal loan with another and with other financing options like credit cards.
Monthly payments
A lender should disclose the monthly payments before you sign a loan agreement — usually during pre-qualification or once you’re approved. Personal loans have fixed rates, so the monthly payment won’t change over the life of the loan.
Repayment term
Repayment terms for fair-credit loans typically range from two to seven years. A longer term lowers your monthly payments, but increases the total interest cost. Choose a repayment term that keeps payments affordable and helps you clear the debt within the term or even earlier.
Fees
Prepayment fees aren’t common with personal loans, but some fair-credit lenders charge origination fees. This is usually 1% to 10% of the loan amount, and a lender typically takes the fee before depositing the funds into your bank account.
Other features
If you’re choosing between two affordable offers, compare these other features:
Time to fund: Personal loans are often funded in less than a week, but some lenders can fund a loan the business day after you apply. If you need the funds quickly, consider lenders that offer fast funding.
Credit building tools: Ideally, you’ll leave this loan with better credit than when you got it. Most lenders report payments to all three major credit bureaus, but be sure yours does before signing the loan agreement to get credit for on-time payments. Some lenders offer credit score monitoring, so you can see it change as you repay the loan.
Payment flexibility: Some lenders require you to keep your original payment date for the lifetime of the loan. If you think you’ll need more flexibility, look for a lender that lets you change the payment date.
How to get a personal loan with fair credit
1. Compare lender requirements
The lenders listed above accept borrowers with fair credit, but some look for a lower debt-to-income ratio. Others may consider a wide range of factors, like where you attended college or where you live. Compare qualification criteria to learn what each lender requires on a loan application.
2. Pre-qualify
Pre-qualifying can show how likely you are to be approved for a personal loan and let you preview potential rates and loan amounts. The process involves a soft credit check, which doesn't affect your credit score. You can pre-qualify with NerdWallet and see estimated rates from lenders that partner with us.
3. Submit an application
Once you’ve found a lender, it’s time to apply. Many large lenders have online applications that take only a few minutes to complete, but smaller 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.
» MORE: How to apply for a personal loan
How to improve fair credit
Since having good credit could mean a lower personal loan rate, it might be helpful to build your credit before you apply for a personal loan. Here are a few ways to build your credit quickly:
Check your credit report. Your credit report doesn’t contain your score, but it shows what lenders see when they review your credit. If you spot an error, correct it. You can view credit reports from all three major credit bureaus — Equifax, Experian and TransUnion — at AnnualCreditReport.com.
Make on-time payments. Your payment history is the biggest factor affecting your credit score. The more consistently you make payments toward your credit cards, mortgage or car loan, the more likely you are to build your score.
Keep your credit utilization low. The portion of available credit that you use is called credit utilization and it’s the second-biggest factor determining your credit score. Try to use less than 30% of your credit card’s limit to keep utilization low. You can quickly lower your utilization by asking your credit card company to increase your limit, but the request may trigger a hard credit inquiry.
Tips to boost your chances of qualifying for a fair-credit loan
Consider a credit union: A credit union may weigh your history as a member alongside your credit score, so members in good standing may have a better shot at qualifying for a personal loan.
Secure the loan: Most personal loans are unsecured, but some lenders offer secured personal loans, which require collateral. Giving the bank something to take if you can’t repay makes the loan less risky for the bank. Banks typically let you use a savings or investment account to secure the loan, while online lenders prefer a vehicle.
Add a co-applicant: Adding a co-signer with better credit and a higher income to your loan 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 will take a hit.
» MORE: Personal loans with a co-signer
Last updated on December 13, 2022
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. 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. 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.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
To recap our selections...
NerdWallet's Best Personal Loans for Fair Credit of February 2023
- Upstart: Best for Fair-credit personal loans for thin credit histories
- LendingClub: Best for Fair-credit personal loans with budgeting help
- Best Egg: Best for Fair-credit personal loans with low rates
- Happy Money: Best for Fair-credit personal loans for debt consolidation
- Achieve Personal Loans: Best for Joint fair-credit personal loans
- Rocket Loans: Best for Fair-credit personal loans with fast approval
- First Tech Credit Union Personal Loan: Best for Fair-credit personal loans from a credit union
- Prosper: Best for Flexible fair-credit personal loans
Frequently asked questions
In general, the best personal loan is the one with an APR that’s low enough to keep your monthly payments manageable without charging too much interest. Look for a lender that reports payments to all three credit bureaus so you can build your score through on-time payments.
You can often get a personal loan with a fair credit score, however, your annual percentage rate may be high. Some lenders tailor their loans to borrowers with fair or bad credit (689 or lower). You can pre-qualify to see what loan rates and terms different lenders can offer you. If you don’t qualify, consider a secured or co-signed loan.
Credit unions may offer low-rate personal loans to fair-credit borrowers. These organizations look beyond your credit score and consider your membership history when determining whether you qualify for a loan. Federal credit unions also cap APRs at 18%. If you aren’t a credit union member, some online lenders offer personal loans for fair credit.