Best Personal Loans for Fair Credit
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I’m pretty sure we’ve all found ourselves in a sticky situation where we need money quickly at least once in our lives. All it takes is an unexpected medical bill or a broken HVAC system to throw our financial game plan off. Fortunately, there are personal loans precisely for this reason. There is a loan for just about any loan purpose you can imagine, from debt consolidation loans to childhood education loans and everything in between. Even fair credit loans are available if your is somewhere in between the fair credit score range of 630 to 689. Here are some of the best personal loans you can get with fair credit or higher.
In this article
Overview of the best personal loans for fair credit
Personal loan | Best for |
Avant | If you need funds quickly |
LendingClub | If you don’t want to pay an application fee |
LendingPoint | If you want quick, personalized loan solutions to choose from |
LightStream | If you want to borrow more than $50,000 |
PenFed | If you want to apply with a cosigner |
Rocket Loans | If you want a same-day approval process |
Upstart | If your credit score is in the poor to fair range |
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
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The best personal loans for fair credit
Avant
Avant was established in 2012 to ease the borrowing experience for middle-income consumers. Currently, it offers two product types — personal loans and credit cards. Avant’s personal loans are offered in partnership with WebBank.
Avant’s personal loans are unsecured, meaning they do not require collateral. Personal loan applications are considered based on the credit history of the borrower. Typically, Avant requires its borrowers to have a minimum credit score of 580. To see if you are eligible for a personal loan, check Avant’s website for loan options. Checking your eligibility does not affect your credit score, so there’s no risk.
Loan availability and terms can vary based on the state you live in, but Avant advertises some general ranges. Loan amounts can range from $2,000 to $35,000, and loan lengths can range from 2 to 5 years. The annual percentage rate (APR) for Avant’s loans ranges from 9.95% to 35.99%. You will also need to pay an administration fee of up to 9.99% if you take out a personal loan from Avant.
There are several reasons why Avant is a good pick if you need a personal loan. One of its greatest benefits is funding as soon as the next business day after your loan application is approved. There are also fixed monthly payments to plan your monthly budget around a single amount. You can even pay via the Avant app or set up autopay to ensure that you always pay on time. In addition to all of these benefits, Avant’s customer service team is available seven days a week by phone or email.
LendingClub
LendingClub is a fintech marketplace that has helped more than 3 million people since its founding in 2007. It offers personal loans in a wide range of loan amounts, making them a good choice for various loan uses. Additionally, LendingClub offers business loans and auto refinancing.
LendingClub offers personal loans to those with a fair credit score. However, the minimum credit score requirement is 600, making it out of reach for those at the lower end of the fair credit range. The company uses and debt-to-income ratio to determine your eligibility and APR. Personal loans from LendingClub can have an APR of anywhere from 8.98% to 35.99%.
There are several benefits to taking out a loan from LendingClub. First, it claims to have a lower average fixed rate than most competitors. After your loan is approved, LendingClub distributes your loan within 48 hours. You will also receive your payment schedule and set up auto payments if you want to when you receive your funds. The No. 1 benefit of LendingClub’s personal loans is that there are no application or prepayment fees associated with the loan.
Personal loans from LendingClub can range from $1,000 to $40,000. Repayment terms are anywhere from 2 to 5 years. LendingClub allows you to compare your options to choose the loan amount and repayment term that works best for your budget and needs.
LendingPoint
LendingPoint is a company that believes that everyone deserves access to credit when it’s most needed. It provides personalized and innovative solutions based on the needs of each consumer. The company continues to grow and expand access to affordable loans for consumers across the credit spectrum.
To get your loan solution from LendingPoint, you start with a simple application to give the company an idea of your credit history. The initial application does not impact your credit score, and you’ll receive your loan offers within seconds after submitting your application. Then, if you decide to move forward, you’ll select the loan option you want and submit additional information and documents. LendingPoint then reviews your complete application and works toward officially approving your loan.
The benefits of using LendingPoint for your personal loan include access to its proprietary smart technology, which is how the company can show you the perfect loan options within seconds of applying. When determining eligibility, LendingPoint only considers the person's creditworthiness and does not look at household or joint income. There are no application fees, nor are there fees for extra payments or loan pre-payments. In some states, there may be an origination fee of up to 10% included in your total loan amount.
LendingPoint’s personal loans are available for between $1,000 and $36,500. APRs range from 7.99% to 35.99%, with repayment terms between 2 and 6 years. To qualify for a personal loan, you must have a credit score of 580 or higher and an annual income of at least $35,000.
LightStream
LightStream is a national online consumer lending division of SunTrust Bank. Its goal is to give customers a revolutionary loan experience through innovative products and competitive rates. LightStream is so confident in its loan process that it offers a $100 guarantee that you will be completely satisfied with your experience.
With LightStream, you can borrow funds for purchases that other lenders may reserve for a secured loan with collateral requirements. It can also offer loans for purchases with limited or no loan options. Some of the things that you can use a LightStream loan for include IVF financing, adoption financing, PreK-12 education loans, horse loans, and more.
LightStream takes its competitive rates so seriously that it offers to beat the rate of an approved loan from a competitor. The Rate Beat program offers a rate of .10 percentage points lower than the rate offered by a competing lender on an unsecured loan with the same terms. You must have been approved for the competing loan no later than 2 p.m. ET two days before loan funding to qualify. You can work with LightStream’s customer service team to confirm your eligibility.
No fees are associated with LightStream personal loans, including no prepayment penalties. Payments can be made by invoice or AutoPay, though the rate increases by 0.50% points if you choose to pay by invoice. Loan amounts can be as little as $5,000 or as much as $100,000.
Rocket Loans
Rocket Loans is the sister company of Rocket Mortgage, Rocket Homes, and Rocket Auto. As you can probably tell by the name, this Rocket company provides personal loans. Like the other Rocket companies, it offers a transparent process and is all done online.
When you use Rocket Loans, you start by providing basic information about your income and identity. This includes your name, address, annual income, and date of birth. Rocket Loans uses this information to provide you with loan options. Then, you can choose the option with the amount, rate, and repayment term that works best for you. The loan approval process begins after selecting your loan and completing the application. In some cases, you may be able to receive your loan funds on the same business day.
Rocket Loans can provide loan programs for as little as $2,000 or as much as $45,000. Like other loans, your financial profile determines your rate, including credit history and annual income. Rates can vary from 9.11% to 29.99%. The loan has to be repaid in either three years or five years.
Rocket Loans makes a conscious effort to disclose all of its fees upfront, so there are no surprises. There is no application fee and no prepayment penalty fees. However, Rocket Loans does charge an origination fee of upto 9%. The origination fee for your loan is based on your financial profile and is deducted from your loan amount before it is deposited into your account.
Upstart
Upstart is an artificial intelligence (AI) lending platform created to improve access to affordable credit for consumers. It does this by empowering banks to offer higher approval rates while minimizing their risk and loss rates. To qualify for a personal loan offered through Upstart, the minimum credit score is only 300. However, there are other requirements that you must meet to qualify, including a minimum debt-to-income ratio and no delinquent accounts.
Most of the personal loans offered through Upstart are unsecured and do not require any collateral. However, some credit unions it partners with may place a lien on your other accounts within that credit union. The interest rate of an Upstart personal loan can range between 7.8% and 35.99%. There are other fees that you should be aware of as well. There are no prepayment penalties associated with an Upstart personal loan, so you can pay as much as you want as early as you want. However, there is an origination fee of up to 12%.
Upstart’s loans can be as little as $1,000 or as much as $50,000. The amount you qualify for will depend on the information you provide during the application process. However, some states have higher minimum loan amounts. For example, the minimum loan amount in Massachusetts is $7,000, so Upstart would not be able to approve a loan for less than $7,000 if you live in Massachusetts. Loan repayment terms can be 3 or 5 years. You can receive your loan funds the next business day after you accept your loan.
PenFed
PenFed is a credit union offering unsecured personal loans without collateral. As a credit union, it’s important to note that while you do not need to be a member to apply for the loan, you do need to be a member to receive the loan. Fortunately, applying for membership is quick, easy, and only requires a minimum deposit of $5.
The benefits of accepting a loan from PenFed include no origination, application, or prepayment penalty fees. You can estimate your payments before submitting an initial application using the PenFed website's payment calculator. The payment calculator uses your estimated credit score and desired loan amount to calculate your estimated payments. There is also a mobile app that you can use to track your loan application status, manage your accounts, and more.
Another benefit that sets PenFed apart from some competitors is that you can apply with a co-borrower. Applying with a co-borrower may be a good idea, especially if you have a lower credit score. PenFed does not disclose its minimum credit score requirement, but applying with a co-borrower could increase your chances of approval and help you qualify for lower interest rates.
This lender has a wide range of loan amounts available, from as little as $500 to as much as $50,000. After your loan has been approved, you can receive your funds via direct deposit in as little as one business day. You may also request your funds via check, which can take up to 7 business days to arrive. Repayment terms can be up to 5 years. PenFed does not disclose its entire APR range, but states rates can be as low as 8.99%.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
Best personal loans for fair credit comparison
Personal loan | Minimum credit score required | APR | Loan amounts available |
Avant | 580 | 9.95% - 35.99% | $2,000 - $35,000 |
LendingClub | 600 | 8.98% - 35.99% | $1,000 - $40,000 |
LendingPoint | 580 | 7.99% - 35.99% | $1,000 - $36,500 |
LightStream | Unspecified | 4.98% - 19.99% | $5,000 - $100,000 |
PenFed | Unspecified | As low as 8.99% | $500 - $50,000 |
Rocket Loans | 580 | 9.11% - 29.99% | $2,000 - $45,000 |
Upstart | 300 | 7.8% - 35.99% | $1,000 - $50,000 |
FAQs
What can I use a personal loan for?
Personal loans can be used for just about anything. The most common uses of personal loans include paying off credit cards, consolidating debt, and covering large expenses such as medical bills and home improvement projects. You should check with your lender to see if there are any exclusions to the way you can use your personal loan. Typically, personal loans cannot be used to pay for further education or fund an investment account.
Do I need to do a credit check to apply for a personal loan?
When you apply for a personal loan, you will provide information so the lender can do a soft credit check to see if you pre-qualify for one of its loans. This does not have an impact on your credit score. However, when you choose one of your qualifying loan offers and submit the official application, the lender must pull a hard credit check to process your loan. The hard credit check does show up on your credit report and can impact your score. If you have bad credit, you may not be eligible for a loan. Generally speaking, those with higher credit scores have access to the lowest rates.
Where can I get a personal loan?
Personal loans typically come from banks, credit unions, or peer-to-peer online lending platforms.
Why you should use a personal loan
There are many lines of credit to choose from, so you may be wondering why a personal loan is the right one. If you need money quickly to pay for an unexpected purchase, a personal loan is often the best way. Personal loans usually come with lower interest rates when compared to credit cards, making them a better financial option to help you save in the long run.
That being said, it’s important to compare your options to choose a loan with the best rates and maximum loan amounts based on your needs. You also need to keep loan fees in mind. Like credit cards, personal loans charge late fees for late payments. In addition to late payment fees, some personal loans charge origination fees.
Use Quicken Loans to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience.
The bottom line
Personal loans are a good option if you’re strapped for cash and need help with a big purchase. A personal loan can also be a good option if you’re looking to pay off credit cards or consolidate your debt. The application process is typically relatively quick, and some lenders can even distribute your funds on the same day your application is approved.
You’ll need to choose one or more lenders to request rates from to get a personal loan. Each lender will use your basic information to determine which loans, loan amounts, and rates you qualify for. It’s good to compare your options to choose the best loan for your budget. In addition to looking for the lowest rates, you’ll want to find out what fees each lender charges so you can factor that into the total cost of your loan.
Applying to pre-qualify for a personal loan does not obligate you to get a personal loan. For that reason, there is no harm in looking around and comparing rates if a personal loan is something that you’re considering soon. Taking time to look around before you desperately need the money can help you find the best loan for your needs.
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Ashley Hart is a lead copywriter and digital marketing expert covering finance, law, real estate, music, entertainment, health and wellness.
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