In most cases, the better your credit score, the more likely you are to be approved for a personal loan and the more favorable terms you'll receive. But there are lenders with loans targeting borrowers with fair credit (FICO Score 580 to 669).
To find the best personal loans for fair credit, we considered interest rates, fees, loan limits, term lengths, discounts, funding speed and other factors. For more on how we made this list, check our methodology.
Best personal loans for fair credit
Best for low or no credit score: Upstart
Who's this for? Upstart allows borrowers to apply for up to $75,000 with a FICO Score of 300 (or no credit history at all). That's more flexibility than any other lender on this list.
Standout benefits: Most applicants receive a decision in moments and funds are typically available by the next business day.
We like that Upstart considers factors besides credit score, including education, income and employment history. However, co-signers aren't accepted.
- Accept applicants with bad or no credit
- Minimum APR is lower than many competitors'
- Approves personal loans up to $75,000
- Most loans are funded the next business day
- Origination fee of 0% to 10%
- Doesn't allow co-signers or co-borrowers
Does your credit score fall below 580? See our list of the best personal loans for bad credit.
Best for low income: Avant
Who's this for? Avant approves loans for borrowers with an after-tax income of $1,200 per month and a FICO Score of 580.
Standout benefits: Avant can typically provide funding as soon as the next business day after approval.
This online lender approves borrowers with lower credit and income requirements than many competitors. We also like its speedy approval process and next-day funding, although it won't pay your creditors directly if you have a debt consolidation loan. The APR and origination fee for applicants with weak credit can be high, but the tradeoff may be worth it if you've been unable to get approved elsewhere.
- Lends to applicants with poor credit
- Funding often available next day
- Late-payment grace period of 10 days
- Origination fee of up 9.99%
- No autopay discount
- Doesn't offer direct payment to creditors for debt consolidation loans
- No co-signers or collateral
Best for lower rates: Happy Money
Who's this for? Happy Money has a low starting APR and borrowers who enroll in autopay may be eligible for a 0.50% rate reduction.
Standout benefits: Borrowers can change their due date and, if facing hardship, apply for payment deferment or temporary reduction.
Happy Money's Payoff Loan is a solid option if you're looking to consolidate credit card bills. It offers borrowers with fair credit flexible repayment terms and the option to have the lender pay your creditors directly. The $5,000 minimum may be high for your needs, though, and the origination fee can run from 2% to 12%, which is deducted from your loan proceeds.
- Accepts fair credit.
- Lending marketplace makes it easy to check multiple offers.
- Direct pay option with debt consolidation loans.
- High $5,000 loan minimum.
- Origination fee runs 2% to 12%.
- Can only use funds for credit card debt.
- No joint or co-signed applications.
Best for a fast funding: OneMain Financial
Who's this for? OneMain Financial can disburse loan funds in as little as one hour after signing.
Standout benefits: OneMain allows borrowers to secure their loan with collateral. You can also apply with a co-applicant to improve your odds of approval.
We like that OneMain accepts borrowers with bad credit and offers secured loans and fast funding. However, its minimum APR is on the high side and the $30,000 financing maximum may be too low if you need a larger loan.
- Approves applicants with bad/fair credit
- Same-day funding available
- Can apply with collateral
- Co-applicants allowed
- High origination fee
- High minimum interest rate
- No autopay discount
- Co-signers not allowed
*You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant's state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.
Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant's name with valid insurance. APRs are generally higher on loans not secured by a vehicle.
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount.
For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees.
Current OneMain Customers: Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.
Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans.Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Time to Fund Loans: Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.
How do you get approved for a personal loan?
Applying for a personal loan is typically a fairly straightforward process with a quick turnaround (1–3 days). To improve the likelihood that you'll be approved for the loan, you may need a couple of things:
- Strong credit score: Many lenders consider a minimum credit score 580; some actually require a minimum score of 620. However, applying with healthier credit not only makes you a more appealing applicant, but it can also land you some of the better interest rates available.
- Co-signer: If your credit history is insufficient or poor, applying with a co-signer improves your chances of getting approved.
- Low debt-to-income ratio: Keep your debt-to-income (DTI) ratio below 36%.
What is the easiest personal loan to get approved for?
Some of the easiest personal loans to get approved for are lenders that consider applicants with low or no credit score. Again, though, applying with a low credit score means you'll likely receive some of the highest interest rates.
Payday loans are also generally easy to get approved for, however, they should be an absolute last resort since payday loans work out to six-figure interest rates, making it difficult to pay off even small amounts of money quickly.
FAQs
How much of a personal loan can I borrow?
The maximum amount you can borrow depends on the lender but the most you can typically borrow is $100,000 (depending on your creditworthiness).
What are personal loan fees?
Some lenders may charge an application fee, origination fee, late payment fees and prepayment penalties.
How do I check if a qualify for a loan?
Some lenders offer free online tools to help you check what rate you may receive. This isn't the same as submitting a formal application and it doesn't affect your credit score.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every personal loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To determine which personal loans are the best, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with no origination or signup fees, fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.
When narrowing down and ranking the best personal loans for fair credit, we focused on the following features:
- Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
- Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
- No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
- Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process.
- Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
- Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
- Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
- Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.
After reviewing the above features, we sorted our recommendations by best for low or no credit history, best for quick funding, best for lower interest rates and best for flexible terms.
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