Best Unsecured Personal Loans for Fair Credit in 2019

Get Personal Loan Rates

on LendingTree's secure website

By clicking "See Offers" you'll be directed to our ultimate parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

Best Low-Interest Personal Loan for Fair Credit: LendingClub

LendingClub
LendingClub

Consider this if you have a credit score of 600 or higher and want a reasonable interest rate.

APR Range 6.95% - 35.89%
Loan Amount Range $1,000 - $40,000
Loan Term Range 3 or 5 years
Funding Time 6 days on average or sooner

Loan Details

  • Loan amount: $1,000 - $40,000
  • Rates: 6.95% - 35.89%
  • Term: 3 or 5 years
  • Funding Time: 6 days on average or sooner

Out of all the companies that offer personal loans for fair credit borrowers, LendingClub has some of the most competitive rates. While fair credit applicants shouldn’t expect to get the company’s lowest rates, the company offers rates from 6.95% to 35.89%. LendingClub also provides a few options that many other online personal loan companies don’t: You can apply for a loan with a cosigner, which can help you get approved or a better interest rate, and in some cases, the company will directly pay your creditors if you’re applying for a loan to consolidate outstanding debt. LendingClub is also available in all states, with the exception of Iowa. Applicants looking to qualify at this company should be U.S. citizens, permanent residents or on an eligible visa, and they must be at least 18 years old. Applicants should have a credit score of at least 600 and a debt-to-income ratio under 31%.

Drawbacks: Prospective borrowers should be aware that LendingClub charges a variety of fees, including origination fees of 1% to 6%, late payment fees and returned payment fees. The company will also charge a fee of $7 if you decide to pay your loan by check. LendingClub is a marketplace lending company, meaning that investors fund your loan offer. As a result, it takes six days on average to receive funds. Many fair credit loan lenders can provide funds within one to two days.

Best Large Personal Loan for Fair Credit: Upgrade

Upgrade
Upgrade

Consider this if you have a credit score of 620 or higher and want a loan of up to $50,000.

APR Range 5.99% - 35.89%
Loan Amount Range $1,000 - $50,000
Loan Term Range 3 or 5 years
Funding Time 1-4 business days

Loan Details

  • Loan amount: $1,000 - $50,000
  • Rates: 5.99% - 35.89%
  • Term: 3 or 5 years
  • Funding Time: 1-4 business days

Most lenders that offer unsecured personal loans up to $100,000 also require applicants to have credit scores of 680 and above. This isn’t the case at Upgrade, which offers unsecured personal loans for average credit. While Upgrade doesn’t make loans quite that high, you can still borrow up to $50,000, which is more than most other fair credit loan lender thresholds allow. APRs at Upgrade are competitive, with rates comparable to those at LendingClub, and funding is quick—most applicants receive money within one to four business days after approval. To qualify at Upgrade, you’ll need a minimum FICO score of 620 and a verifiable bank account and email address. You should also be a U.S. citizen or permanent resident and the age of majority in your state.

Drawbacks: Similarly to LendingClub, Upgrade does charge a variety of fees. Expect to pay an origination fee between 1% and 5% of the loan amount. There are also fees for late or returned payments. Upgrade is not available to individuals in Connecticut, Colorado, Iowa, Massachusetts, Maryland, Vermont or West Virginia.

Best Online Personal Loan for Fair Credit: Upstart

Upstart
Upstart

Consider this if you have a credit score of 620 or higher and need funds within one to two days.

APR Range 7.46% - 35.99%
Loan Amount Range $1,000 - $50,000
Loan Term Range 3 or 5 years
Funding Time 1+ days

Loan Details

  • Loan amount: $1,000 - $50,000
  • Rates: 7.46% - 35.99%
  • Term: 3 or 5 years
  • Funding Time: 1+ days

Completing an application at Upstart only takes a few minutes, and if approved, you will generally receive funds the next day, which makes Upstart a very convenient online option. Upstart also takes a slightly different approach to evaluating your loan application, by factoring in your educational and employment history. This means that applicants with a four-year degree or stable employment history may be more likely to be approved than applicants without. Another feature that makes Upstart stand out among lenders that offer personal loan for fair credit is that you can use your loan to pay for college or grad school—most lenders restrict the use of funds for postsecondary educational purposes. Applicants must have a credit score of 620 and a regular source of income or a full-time job starting within six months (exceptions apply if you’re accepted into a coding boot camp). You must be a U.S. citizen or permanent resident living in the U.S. and the age of majority in your state, and you must have a personal bank account and email address.

Drawbacks: Upstart charges origination fees on each loan, which amount to 1% to 6% of the loan amount. Like most other lenders, there are also fees for late or returned payments. Upstart is not available to residents of West Virginia.

Best Banks for Fair-Credit Personal Loans

Many national banks don’t offer personal loans, especially loans for fair credit borrowers. The ones that do, generally require applicants to have good to excellent credit, which is a FICO score of 680 and above. That said, many regional banks and credit unions offer both secured and unsecured personal loans for fair credit borrowers and lines of credit without the same strict eligibility criteria. We recommend would-be borrowers approach a financial institution in their area first, but we list a few options that average-credit borrowers may be eligible for below.

Financial InstitutionEligibility Criteria
Navy Federal Credit Union
  • Must be Navy Federal Credit Union member
Regions Bank
  • At least 18 years old
  • Must have a Regions checking account at time of loan closing
KeyBank
  • At least 18 years old
  • Must live in a state KeyBank serves
Pentagon Federal Credit Union
  • Must be a Pentagon Federal Credit Union member.
  • Credit score in the mid-600s or higher.
Digital Federal Credit Union
  • Must be a Digital Federal Credit Union member.

Summary of Our Top Picks

To help you quickly compare your loan options, we’ve summarized our top picks for borrowers with fair to average credit in the table below.

Best for...CompanyRates
Low-interest loansLendingClub6.95% - 35.89%
Large personal loansUpgrade5.99% - 35.89%
Online loansUpstart7.46% - 35.99%
Madison Miller

Madison is a former Research Analyst at ValuePenguin and focuses on student loans and personal loans. She graduated from the University of Rochester with a B.A. in Financial Economics with a double minor in Business and Psychology.

Comments and Questions

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.