Get Personal Loan Rates
Best Low-Interest Personal Loan for Fair Credit: LendingClub
- 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
- Loan amount: $1,000 - $35,000
- Rates: 7.99% - 35.97%
- 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 $35,000, 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
- 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 Institution||Eligibility Criteria|
|Navy Federal Credit Union|
|Pentagon Federal Credit Union|
|Digital Federal Credit Union|
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.