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Best-Of Awards 2026 Methodologies

Best Personal Loan for Fair Credit

How we picked the companies to evaluate:

NerdWallet reviewed and rated personal loan products offered by eight of the largest national banks based on asset volume, and by digital lenders and lending platforms that met these criteria: They cap interest rates at 36%, the maximum rate that is allowed by some states and considered affordable by consumer advocacy groups; they serve consumers in more than one state; and they are the top lenders by search volume. Some of the providers are NerdWallet partners, but this did not influence our selection of the winner.

How we chose the winner:

NerdWallet scored each provider in six categories and 27 subcategories. We weighted five of the categories in this way:

  • Features that affect affordability for consumers, including competitive rates, no origination fees, and rate discounts for autopayments (25%).
  • Features that assess lenders’ underwriting and consumers’ eligibility, including affordability verification and loan options for consumers across credit bands and in most states (20%).
  • Features that give consumers flexibility, including multiple loan types; wide ranges of loan amounts and terms; and an option for direct-to-creditor payments (20%).
  • Features that enhance the consumer experience, including options to change payment due dates; available and convenient customer support; and mobile apps with loan servicing features (20%).
  • Features that enhance the loan application process, including clearly presented rates, terms, fees and loan amounts; comprehensive answers to common questions; pre-qualification with a soft credit check; and fast funding (15%).

The sixth category is unweighted and discretionary. A lender’s score may be lowered if it has faced governmental regulatory action in the past three years or been accused of predatory practices by a reputable source.

To determine the award winner, we grouped lenders that cater to consumers with fair credit scores (generally any score in the mid-500s to low 600s). Within that group, the lender with the highest weighted score was the winner.

How we verified our data:

NerdWallet writers sent a comprehensive list of more than 60 questions to all loan companies we reviewed. We interviewed company representatives to better understand their products and confirm details. NerdWallet writers and editors cross-checked fees, rates and other features on each company's website. At least three writers and editors verified the scores and ratings we gave to lenders.


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