the best personal loans for fair credit – My Blog

the best personal loans for fair credit

Personal loans can be used for a variety of expenses, including weddings, vacations, home repairs and even as a way to cover emergency costs. And while credit cards can certainly pay for these same expenses, personal loans are sometimes a more affordable alternative since they typically carry a lower interest rate (though the rate you receive will depend on your credit score).







Personal loan APRs average 9.58%, according to the Fed’s most recent data. By contrast, though, the average credit card interest rate is around 16.30%.

Generally, the better your credit score, the more favorable your personal loan terms will be. This doesn’t mean that you won’t be approved for a personal loan if you don’t have an excellent credit score. You just might not get the best rates and terms. But if you have a fair or good credit score, you do have some options. Fair credit is generally defined as a credit score between 580 and 669 and good credit is defined as a score between 670 to 739, if you go by the FICO model.

(Does your credit score fall below 580? See Select’s list for the best personal loans for bad credit.)









When reviewing personal loans for consumers with fair credit, we looked at key factors like interest rates, fees, loan amounts and term lengths offered, plus other features including how your funds are distributed, autopay discounts, customer service and how fast you can get your funds. (Read more about our methodology below.)

Best personal loans for fair creditCompare offers to find the best loan
This tool is provided and powered by Engine by MoneyLion, a search and comparison engine that matches you with third-party lenders. Any information you provide is given directly to Engine by MoneyLion and it may use this information in accordance with its own privacy policies and terms of service. By submitting your information, you agree to receive emails from Engine by MoneyLion. Select does not control and is not responsible for third party policies or practices, nor does Select have access to any data you provide. Select may receive an affiliate commission from partner offers in the Engine by MoneyLion tool. The commission does not influence the selection in order of offers.

Best overallUpstart Personal Loans
Annual Percentage Rate (APR)
Loan purpose
Debt consolidation, credit card refinancing, home improvement, wedding, moving or medical

• Loan amounts
• Terms
• Credit needed
Credit score of 300 on at least one credit report (but will accept applicants whose credit history is so insufficient they don’t have a credit score)

Origination fee
0% to 12% of the target amount

Early payoff penalty
Late fee
The greater of 5% of last amount due or $15, whichever is greater

Open to borrowers with fair credit (minimum 300 score)
Will accept applicants who have insufficient credit history and don’t have a credit score
No early payoff fees
99% of personal loan funds are sent the next business day after completing required paperwork before 5 p.m. Monday through Friday
High late fees
Origination fee of 0% to 10% of the target amount (automatically withheld from the loan before it’s delivered to you)
$10 fee to request paper copies of loan agreement (no fee for eSigned virtual copies)
Must have a Social Security number
Who’s this for? Upstart allows borrowers to apply for up to $50,000 and has a minimum credit score requirement of 600. The loan provider also accepts applicants with no credit history, making it a good choice for someone who needs to borrow a larger amount of money but doesn’t have sufficient credit history. Just keep in mind that if you are approved for the loan with a lower credit score, you may be subject to a higher interest rate.








While there are no penalties for paying off your balance early, Upstart does charge an origination fee (up to 12% of the amount you borrow) and late fees ($15 or 5% of the past due balance, whichever is greater).








When it comes to repaying the balance, loan terms range from 36 to 60 months, which can be appealing to borrowers who think they may need a longer time horizon to repay the entire loan.

Best for quick fundingAvant Personal • • • •Loans
• Annual Percentage Rate (APR)
• Loan purpose
• Debt consolidation, major expenses, emergency costs, home improvements

• Loan amounts
• Terms
• Credit needed
• Origination fee
• Early payoff penalty
• Late fee
Up to $25 per late payment after 10-day grace period

Lends to applicants with scores lower credit scores
No early payoff fees
Can pre-qualify with a soft credit check (no hard inquiry)
Quick funding (often by the next day)
Late payment grace period of 10 days
Origination fee
Potentially high interest (caps at 35.99% APR)
No autopay APR discount
No direct payments to creditors (for debt consolidation)
No co-signers
Who’s this for? If you need funding in a pinch, Avant can typically provide it as soon as the next business day after you’ve been approved. The lender also offers personal loan amounts as low as $2,000 and as high as $35,000.









Avant will consider applicants with credit scores under 600. The interest rates range from 9.95% to 35.99%, and there are no discounts for using autopay.

While there are no penalties for early payoff, there is an origination fee of up to 4.75% and a late fee of up to $25 after the 10-day grace period.

Before you decide to apply for this loan, you can see if you pre-qualify for a rate that’s on the lower end of the APR range. By checking to see if you pre-qualify, you can make sure you can afford the loan and avoid dinging your credit score.

Best for lower interest ratesHappy • • •Money
• Annual Percentage Rate (APR)
• Loan purpose
• Debt consolidation/refinancing

Loan amounts
Credit needed
Origination fee
0% to 5% (based on credit score and application)

Early payoff penalty
Late fee
5% of monthly payment amount or $15, whichever is greater (with 15-day grace period)

Peer-to-peer lending platform makes it easy to check multiple offers
Loan approval comes with Happy Money membership and customer support
No early payoff fees
No late fees
Fast and easy application
U.S.-based customer service
Higher loan minimums ($5,000)
Must submit soft inquiry to see origination fees and other details
How Payoff is designed to help you stay motivated:

Offers borrowers a dedicated “Empowerment Science” team that is available to take questions and provide encouragement
Free personality tests, stress assessments and cash flow trackers to help borrowers understand their money management style and nail down better habits
Free FICO tools help members track their progress*
*Based on a study of Happy Money Members between February 2020 to August 2020, members who use a Happy Money Loan to eliminate at least $5,000 of credit card balances reportedly see an average FICO Score boost of 40 points. (Results may vary and are not guaranteed.)

Leave a Comment