Personal Loans for Fair Credit: Best of January 2020

Compare rates and terms at online lenders offering personal loans to borrowers with fair or average credit.

Summary of Personal Loans for Fair Credit: Best of January 2020

Lender	Best For	Est. APR	Min. Credit Score	Learn More
LendingClub NerdWallet rating Check Rate on LendingClub's website	Personal loans for fair or average credit	6.95 - 35.89%	600	Check Rate on LendingClub's website
Prosper NerdWallet rating Check Rate on Prosper's website	Personal loans for fair or average credit	6.95 - 35.99%	640	Check Rate on Prosper's website
Upgrade NerdWallet rating Check Rate on Upgrade's website	Personal loans for fair or average credit	6.98 - 35.89%	600	Check Rate on Upgrade's website
Avant NerdWallet rating Check Rate on Avant's website	Personal loans for fair or average credit	9.95 - 35.99%	580	Check Rate on Avant's website
FreedomPlus NerdWallet rating Check Rate on FreedomPlus's website	Personal loans for fair or average credit	5.99 - 29.99%	640	Check Rate on FreedomPlus's website
Upstart NerdWallet rating Check Rate on Upstart's website	Personal loans for fair or average credit	6.14 - 35.99%	580	Check Rate on Upstart's website

Lender	Best For	Est. APR	Min. Credit Score	Learn More
LendingClub NerdWallet rating Check Rate on LendingClub's website	Personal loans for fair or average credit	6.95 - 35.89%	600	Check Rate on LendingClub's website
Prosper NerdWallet rating Check Rate on Prosper's website	Personal loans for fair or average credit	6.95 - 35.99%	640	Check Rate on Prosper's website
Upgrade NerdWallet rating Check Rate on Upgrade's website	Personal loans for fair or average credit	6.98 - 35.89%	600	Check Rate on Upgrade's website
Avant NerdWallet rating Check Rate on Avant's website	Personal loans for fair or average credit	9.95 - 35.99%	580	Check Rate on Avant's website
FreedomPlus NerdWallet rating Check Rate on FreedomPlus's website	Personal loans for fair or average credit	5.99 - 29.99%	640	Check Rate on FreedomPlus's website
Upstart NerdWallet rating Check Rate on Upstart's website	Personal loans for fair or average credit	6.14 - 35.99%	580	Check Rate on Upstart's website

Our picks for

Personal loans for fair or average credit

Check Rate

on LendingClub's website

LendingClub

4.0

NerdWallet rating

Min. Credit Score

600

Est. APR

6.95 - 35.89%

Loan Amount

$1,000 - $40,000

Check Rate

on LendingClub's website

Min. Credit Score

600

Key facts

LendingClub is a pioneer of peer-to-peer lending and a good option if you want to consolidate your debt.

Pros

May offer direct payment to creditors with debt consolidation loans.
Joint loan option.

Cons

Charges origination fee.
Charges late fee.

Qualifications

Minimum credit score of 600.
Minimum credit history of three years.
Debt-to-income ratio of less than 40% for single applications, 35% combined for joint applicants.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 1% - 6%.
Late fee: Greater of $15 or 5% of payment after 15-day grace period.

Disclaimer

*All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 6.95% to 35.89%. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long-term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: 595 Market St suite 200 San Francisco Ca 94105. **Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between Jan. 1, 2018, and July 20, 2018. The time it will take to fund your loan may vary.

Read Full Review

Check Rate

on Prosper's website

Prosper

4.0

NerdWallet rating

Min. Credit Score

640

Est. APR

6.95 - 35.99%

Loan Amount

$2,000 - $40,000

Check Rate

on Prosper's website

Min. Credit Score

640

Key facts

Prosper is a peer-to-peer lender with rates and fees that compare to other personal loan lenders.

Pros

No prepayment fee.
Option to change your payment date.

Cons

Charges origination fee.
Charges late fee of $15 or 5% of the unpaid loan amount.

Qualifications

Minimum credit score: 640, but average is 717.
Minimum credit history: Two years, but average is 11.
Minimum annual income: None, but average is $89,000.
Maximum debt-to-income ratio: 50% (excluding mortgage).
No bankruptcies filed within the last year.
Fewer than five credit bureau inquiries in the last six months.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 2.4% - 5%.
Late fee: $15 or 5% of unpaid amount (whichever is greater).
Insufficient funds fee: $15.

Disclaimer

For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.

Read Full Review

Check Rate

on Upgrade's website

Upgrade

4.5

NerdWallet rating

Min. Credit Score

600

Est. APR

6.98 - 35.89%

Loan Amount

$1,000 - $50,000

Check Rate

on Upgrade's website

Min. Credit Score

600

Key facts

Upgrade offers personal loans plus credit-building tools; you'll need strong cash flow to qualify.

Pros

Credit health tools.
Hardship plans.
Directly pays creditors for debt consolidation loans used to pay off credit cards.

Cons

Origination and late fees.

Qualifications

Minimum credit score: 600.
Minimum annual income: None, but most applicants earn more than $30,000.
Minimum monthly free cash flow: $800.
Maximum debt-to-income ratio: 60%.
Unavailable to borrowers in: Colorado, Iowa, Maryland, Vermont or West Virginia.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 1.5% - 6%.

Disclaimer

Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/. Please refer to Upgrade's Terms of Use and Borrower Agreement for all terms, conditions and requirements.

Read Full Review

Check Rate

on Avant's website

Avant

4.0

NerdWallet rating

Min. Credit Score

580

Est. APR

9.95 - 35.99%

Loan Amount

$2,000 - $35,000

Check Rate

on Avant's website

Min. Credit Score

580

Key facts

Avant's low starting rates make it a good option for borrowers with low credit scores and income.

Pros

Low minimum credit score.
Refinancing option.
No prepayment fee.

Cons

No co-sign or secured loan option.
Does not offer direct payment to creditors for debt consolidation loans.

Qualifications

Minimum credit score of 580.
At least $20,000 in gross annual income.

Available Term Lengths

2 to 5 years

Fees

Administrative fee: 4.75%.
Late fee: $25 (most states).
Unsuccessful payment fee: $15 (most states).

Disclaimer

$5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Avant branded credit products are issued by WebBank, member FDIC

Read Full Review

Check Rate

on FreedomPlus's website

FreedomPlus

4.0

NerdWallet rating

Min. Credit Score

640

Est. APR

5.99 - 29.99%

Loan Amount

$7,500 - $40,000

Check Rate

on FreedomPlus's website

Min. Credit Score

640

Key facts

FreedomPlus works for debt consolidation, with low starting rates and direct payment to creditors.

Pros

Low starting rates.
Co-sign option.
Directly pays creditors for debt consolidation loans.

Cons

May charge origination fee.
Minimum loan amount of $7,500.

Qualifications

Minimum credit score of 640.
At least $40,000 in annual income.
Debt-to-income ratio of less than 40%. Average borrowers have a DTI of 20%.

Available Term Lengths

2 to 5 years

Fees

Origination fee: 0.0% - 5.0%.
Late fee: $15 or 5% of amount due, whichever is greater.
Unsuccessful payment fee: $15.

Disclaimer

All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99% APR. The APR calculation includes all applicable fees, including the loan origination fee. For example, a four-year, $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.

Read Full Review

Check Rate

on Upstart's website

Upstart

4.5

NerdWallet rating

Min. Credit Score

580

Est. APR

6.14 - 35.99%

Loan Amount

$1,000 - $50,000

Check Rate

on Upstart's website

Min. Credit Score

580

Key facts

Upstart is a good option for those who have short credit histories and promising financial futures.

Pros

Accepts borrowers new to credit.
Fast funding.

Cons

Origination and late fees.
No secured or co-sign option.

Qualifications

Minimum credit score: 580.
Minimum credit history: None.
Minimum annual income: $12,000.
Max debt-to-income ratio: 45%.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 0% - 8%.
Late fee: 5% of past due amount or $15, whichever is greater.

Disclaimer

Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5,001. The minimum loan amount in GA is $3,100. The full range of available rates varies by state. The average 3-year loan on Upstart will have an APR of 20% and 36 monthly payments of $35 per $1,000 borrowed. There is no down payment and no prepayment penalty. The average APR on Upstart is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

Read Full Review

» MORE: Best debt consolidation loans

How much will it cost?

As with most credit products, the rate you receive on a personal loan depends a lot on your credit score. Borrowers with fair or average credit will pay a higher rate — somewhere around 20%, according to a NerdWallet lender survey — than those with good credit. The interest rate also affects your total monthly payment, as does the term length; a longer term means lower monthly payments, but more interest.

Use our personal loan calculator to estimate your monthly payments based on your credit score.

» MORE: Best personal loan interest rates

How to qualify for fair credit loans

Focus on your credit score. Even if lenders look at other factors, your credit score is a key consideration, and building your score can mean better odds of qualifying and getting a lower rate.

Add a co-applicant or co-signer to your application. There are risks to co-signing, but it’s an option that can help you qualify for a loan that you wouldn’t be able to on your own because of fair credit or low income.

Consider a credit union. Credit unions tend to know their members and their financial histories and may offer lower rates and more flexible terms to borrowers with average credit. Federal credit unions cap interest rates at 18%.

Pre-qualify with multiple lenders. Many online lenders allow you to pre-qualify to see rates and terms you may receive. This usually involves a soft credit check, which doesn’t affect your credit score.

» MORE: 5 ways to boost your chances of qualifying

Pre-qualify for a personal loan

Most online lenders will give you preview of the rates and terms you may receive by performing a soft check of your credit. This won’t affect your credit score, so it pays to take the steps to pre-qualify for a loan with multiple lenders and compare rates and loan features. You can pre-qualify on NerdWallet and see rates from lenders that partner with us.

Last updated on December 2, 2019

Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.

To recap our selections...

NerdWallet's Personal Loans for Fair Credit: Best of January 2020

LendingClub: Best for Personal loans for fair or average credit
Prosper: Best for Personal loans for fair or average credit
Upgrade: Best for Personal loans for fair or average credit
Avant: Best for Personal loans for fair or average credit
FreedomPlus: Best for Personal loans for fair or average credit
Upstart: Best for Personal loans for fair or average credit

Best of

Personal Loans for Fair Credit: Best of January 2020

Summary of Personal Loans for Fair Credit: Best of January 2020

LendingClub

Prosper

Upgrade

Avant

FreedomPlus

Upstart

How much will it cost?

How to qualify for fair credit loans

Pre-qualify for a personal loan

Methodology

NerdWallet's Personal Loans for Fair Credit: Best of January 2020

Further reading.

LendingClub vs. Prosper: How They Compare for Personal Loans

5 Steps to Consolidate Your Debt With a Personal Loan