Best Personal Loans for Fair Credit of May 2022
Compare rates and terms among lenders offering personal loans for fair credit.
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There’s no way to sugarcoat it: It’s harder for borrowers with fair credit to qualify for a personal loan than it is for borrowers with good or excellent credit.
But it’s still possible. Lenders pay attention to credit scores, but some consider additional factors when determining your creditworthiness. Here are the best personal loans for fair credit, plus information about how to qualify and build your credit.
Upstart: Best overall fair-credit personal loans.
LendingClub: Best debt consolidation loans for fair credit.
Upgrade: Best fair-credit personal loans with credit-building tools.
Best Egg: Best fair-credit personal loans with low rates.
Rocket Loans: Best fair-credit personal loans with fast approval.
PenFed: Best fair-credit personal loans from a credit union.
First Tech: Best fair-credit personal loans for existing credit union members.
There’s no way to sugarcoat it: It’s harder for borrowers with fair credit to qualify for a personal loan than it is for borrowers with good or excellent credit.
But it’s still possible. Lenders pay attention to credit scores, but some consider additional factors when determining your creditworthiness. Here are the best personal loans for fair credit, plus information about how to qualify and build your credit.
Upstart: Best overall fair-credit personal loans.
LendingClub: Best debt consolidation loans for fair credit.
Upgrade: Best fair-credit personal loans with credit-building tools.
Best Egg: Best fair-credit personal loans with low rates.
Rocket Loans: Best fair-credit personal loans with fast approval.
PenFed: Best fair-credit personal loans from a credit union.
First Tech: Best fair-credit personal loans for existing credit union members.
Best Personal Loans for Fair Credit
Lender | NerdWallet Rating | Est. APR | Loan amount | Min. credit score | Learn More |
---|---|---|---|---|---|
Best Egg Get rate on Best Egg's website | Best for Fair-credit personal loans with low rates | 5.99- | $2,000- | 600 | Get rate on Best Egg's website |
LendingClub Get rate on LendingClub's website | Best for Debt consolidation loans for fair credit | 6.34- | $1,000- | 600 | Get rate on LendingClub's website |
Upgrade Get rate on Upgrade's website | Best for Fair-credit personal loans with credit-building tools | 5.44- | $1,000- | 560 | Get rate on Upgrade's website |
Upstart Get rate on Upstart's website | Best for Overall fair-credit personal loans | 5.40- | $1,000- | None | Get rate on Upstart's website |
![]() PenFed Credit Union Personal Loan See my rates on NerdWallet's secure website | Best for Credit union personal loans for fair credit | 4.99- | $600- | None | See my rates on NerdWallet's secure website |
![]() Rocket Loans See my rates on NerdWallet's secure website | Best for Fair-credit personal loans with fast approval | 5.97- | $2,000- | 640 | See my rates on NerdWallet's secure website |
![]() First Tech Credit Union Personal Loan See my rates on NerdWallet's secure website | Best for Fair-credit personal loans for existing credit union members | 6.70- | $500- | 660 | See my rates on NerdWallet's secure website |
Our pick for
Fair-credit personal loans with low rates
Our pick for
Debt consolidation loans for fair credit
Our pick for
Fair-credit personal loans with credit-building tools
Our pick for
Overall fair-credit personal loans
Our pick for
Credit union personal loans for fair credit

on NerdWallet's secure website
PenFed Credit Union Personal Loan

Est. APR
4.99-Loan amount
$600-Min. credit score
Noneon NerdWallet's secure website
Our pick for
Fair-credit personal loans with fast approval

on NerdWallet's secure website
Rocket Loans

Est. APR
5.97-Loan amount
$2,000-Min. credit score
640on NerdWallet's secure website
Our pick for
Fair-credit personal loans for existing credit union members

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
» COMPARE: Find the right bad-credit loan for you
What is fair credit?
Having fair credit means your FICO score is from 630 to 689. If you have a fair credit score, try to move it into the good credit range (starting at 690) because consumers in that range often have access to a wider range of personal loan options and often get lower rates.
How does fair credit affect your personal loan?
A fair credit score doesn’t mean you won’t qualify for a personal loan, but it limits your options. Many banks and some online lenders look for borrowers with good or excellent credit.
Though your credit score is a major factor on a loan application, your income and other outstanding debts are also considered, and some lenders use non-traditional data in a loan decision.
A lower credit score usually means your personal loan will have a higher annual percentage rate. Personal loan borrowers with fair or average credit can expect to get an APR above 20%. Use our personal loan calculator to estimate monthly payments based on your credit score.
Here's what personal loan rates look like on average:
How's your credit? | Score range | Estimated APR |
Excellent | 720-850. | 10.5%. |
Good | 690-719. | 15.5%. |
Fair | 630-689. | 20.8%. |
Bad | 300-629. | 26.1%. |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace from Oct. 27, 2021, to April 27, 2022. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 FICO — are unlikely to qualify. Information in this table applies only to lenders with APRs below 36%.
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 better.
Keep your credit utilization low. The portion of available credit that you use is called credit utilization. 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.
How to compare fair-credit loans
Compare different lenders and shop around to find the lowest rates and best features. Here are features to compare with fair-credit loans.
APR: The annual percentage rate is the interest rate plus any other 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 will also disclose during pre-qualification or approval how much the loan will cost each month. Most personal loans have fixed rates, so this amount won’t change over the life of the loan.
Repayment term: Repayment terms for fair-credit loans typically range from one to seven years. A longer repayment term lowers your monthly payments, but increases the total interest costs. 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 many online lenders charge origination fees. This is usually 1% to 10% of the loan amount, and a lender typically takes the fee before depositing the loan into your bank account.
If you’re choosing between two affordable offers, compare these other aspects:
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 let you monitor your credit score, so you can see how your payments impact it.
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 move the payment date.
How to qualify for a personal loan with fair credit
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.
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. Lenders use a soft credit check, which doesn't affect your credit score. You can pre-qualify with multiple lenders at once with NerdWallet.
Submit an application: Once you’ve found a lender, it’s time to apply. Many national lenders have online applications that take only a few minutes to complete, but smaller banks and credit unions may require an in-person visit to close the loans. 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 your chances of qualifying with fair credit
Here are a few ways to improve your chances of qualifying for a personal loan or getting a lower rate:
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 it. 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 or co-borrower 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. A co-borrower has access to 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.
Last updated on May 2, 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 May 2022
- Best Egg: Best for Fair-credit personal loans with low rates
- LendingClub: Best for Debt consolidation loans for fair credit
- Upgrade: Best for Fair-credit personal loans with credit-building tools
- Upstart: Best for Overall fair-credit personal loans
- PenFed Credit Union Personal Loan: Best for Credit union personal loans for fair credit
- Rocket Loans: Best for Fair-credit personal loans with fast approval
- First Tech Credit Union Personal Loan: Best for Fair-credit personal loans for existing credit union members
Frequently asked questions
The best personal loan for fair-credit borrowers is one with an APR low enough to make your monthly payments manageable over the life of the loan. Look for a lender that reports on-time payments to all three credit bureaus so your loan can help your credit score.
Some lenders focus their product on borrowers with fair or bad credit scores (689 or lower). You can pre-qualify to see what loan rates and terms some online lenders can offer you. If you don't qualify, consider adding a co-signer to your application or getting a secured loan.