MoneyGeek’s Picks for 2022

Best Personal Loans for Fair Credit

Last Updated: 6/23/2022
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Lenders consider several factors when assessing personal loan applications — your credit score is one of them. Although you can successfully get a personal loan with a fair credit score, it may result in less-than-ideal loan terms. Expect higher interest rates than someone with a higher credit rating, which means you’ll pay more to borrow money.

That said, personal loans with favorable interest rates, borrowing amounts and other features are still available if you have a fair credit score. MoneyGeek evaluated some of the top lenders to help you find the best personal loans for fair credit.

Best Personal Loans for Fair Credit for 2022

One area that significantly affects your chances of being approved for a loan is your credit score.

A fair credit rating means having a FICO score between 580 and 699. Having a fair credit score may impact your loan application experience in several ways, but you should still be able to secure a loan from most mainstream lenders. However, you should expect a higher interest rate than a borrower with a good or excellent credit score.

To help you find the lenders offering the best personal loan for fair credit scores, MoneyGeek looked at various loan features, including APR ranges, loan amounts, payment options, the availability of mobile apps and much more.

MoneyGeek’s Top Pick for Fair Credit: LightStream


  • LightStream

    • 4.49% to 20.49%APR Range
    • 660Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 24 to 84 monthsRepayment Terms
    • Same DayTime To Recieve Funds

    on LightStream Website

Runner-Up: SoFi


  • SoFi

    • 5.74% to 20.28%APR Range
    • 680Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms
    • Two DaysTime To Recieve Funds

    on SoFi Website

Other Personal Loan Options for Those With Fair Credit
  • Lender
    Minimum Credit Score
    Loan Amounts
    APR Range
    Ready To Apply?
  • Truist

    660

    $5K–$100K

    2.49%–20.49%

  • Upstart

    300

    $1K–$50K

    3.5%–35.99%

  • American Express

    660

    $3.5K–$40K

    4.93%–19.97%

  • Upgrade

    560

    $1K–$50K

    5.94%–35.97%

  • Rocket Loans

    640

    $2K–$45K

    5.97%–29.99%

Where to Start: Choosing the Best Personal Loan for Fair Credit

A personal loan is an attractive option for many consumers. You can use your loan for several things, from purchasing new appliances for your home to spending it on your wedding. However, taking out a personal loan isn’t something you should decide on a whim. You have to consider several factors, such as your credit score, current income and existing debts. Take the following steps to see if it’s the best decision for you.

1

Ask Yourself the Important Questions

It’s best to clearly understand your current situation to determine whether taking out a personal loan is a good idea. How much money do you need to borrow? What’s your credit score? Lenders often look into this when considering you for a loan. You’ll also need to assess whether you can afford the monthly payment — remember, it’s something you’ll have to build into your household budget for years. Lastly, review any existing debts you have. Do you really want to add another?

2

Do Your Research

If you think it’s still a viable course of action after looking at your current financial situation, then it’s time to do some legwork. Don’t simply go with the first lender you come across. A personal loan is a long-term commitment, so it’s essential to look into your prospective lenders and compare their rates.

It typically takes two to six years to pay off a loan, so you need to ensure you can afford the monthly payments for that long. Our study provides a lot of necessary information, but don’t hesitate to do your own research and explore other options.

3

Wait

Looking into the details of what each lender can offer narrows down your options. It may tempt you to proceed with the loan application immediately. Although you’re better positioned to make a sound financial decision, it’s still best to give yourself breathing space. Take a day to two to let the initial excitement wear off.

Once it passes, you can revisit your option with a more objective eye. It gives you the chance to reevaluate your pending decision. The pause also allows you to take a step back and consider all angles again. Fair credit personal loans are a long-term commitment, so you need to be 100% sure about your decision.

4

Read the Fine Print

At this point, you’ve decided to move forward with getting a fair credit personal loan. All that’s left before you apply is to make sure you’re aware of all possible fees that come with it: prepayment penalties, origination fees and early payoff fees, among others. Knowing all these can help you develop a long-term strategy. For example, if there are prepayment penalties, you might not want to pay off your loan early.

5

Apply

After completing all the steps, all that’s left for you to do is apply. Lenders typically require you to submit information during the process, including your identification, address verification and proof of income. Most lenders have an online application process to make it easier for you. You can go this route or visit or call their office instead, if you prefer.

Key Takeaways

fairCredit

Ask yourself pertinent questions to determine whether you should pursue a fair credit personal loan.

find

Look into multiple lenders to find which one can offer you the best deal.

moon

Take a day or two and revisit the information with a clear head.

financialPlanning

Find out if you’ll need to deal with other fees connected to the loan.

money2

Make sure you’re ready with your information and submit your application.


Calculate Your Monthly Payment

Knowing how much you’ll pay each month for a fair credit personal loan is crucial. Since you’ll need to include this in your household budget, it’s best to compute it even before applying for a loan to make sure you can afford it.

years
months
%



Principal

+ $114.98

Interest

+ $8.33

Origination Fee Percentage

+
%

Origination Fee Fixed amount

+

Total monthly payment

$123.31

FAQs About Personal Loans for Those With Fair Credit

The lenders offering the best personal loans for fair credit depend on your unique profile. Here are some of the most commonly asked questions about fair credit personal loans to provide you with more information.

Methodology

We reviewed more than 30 personal loan lenders using 35+ individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

We considered several individual data points that we feel carry the most weight when choosing a personal loan lender within each ranking criteria category. For this ranking, we sought lenders that offered the best loan terms for individuals with fair credit scores.

Here at MoneyGeek, we value you, the consumer, so we also factor in each lender’s customer support, business ratings and additional features that could make your experience easier and more accessible, like prequalification, payment options and mobile apps. Our personal loan recommendations and expert tips can help you make the best decision when choosing a lender that meets your needs.

Read More on Personal Loans

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*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, credit card issuer, hotel, airline, or other entity.
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