How can I get a loan with fair credit?

Having a fair credit score makes it more challenging to secure a personal loan than it is for borrowers with good or excellent credit. Lenders might also charge you a higher interest rate. That said, it is still possible to get an outstanding personal loan with a fair credit score. It’s best to research potential lenders to know what to expect. You’ll also need to disclose some specific information, such as identification, address verification and proof of income.

Will a personal loan hurt my credit score?

If your lender conducts a [hard inquiry](https://www.moneygeek.com/credit-cards/advice/hard-vs-soft-credit-inquiry/), your credit score may be affected. It's usually five points or less taken off your FICO score after this kind of credit check. Failing to pay your monthly payments on time will also result in a lower credit score.

What is the average APR for a fair credit personal loan?

The APR interest range for personal loans is 6%–36% , but this varies between lenders. For example, LightStream has an APR range of 4.49%–20.49%. According to the Federal Reserve , the national average interest rate for personal loans was 9.41% as of February 2022. However, the actual rate that you get depends on your credit standing. Generally, the better your credit score is, the lower your interest rate is.

What’s a fair interest rate for a fair credit personal loan?

Generally, a fair interest rate is around or lower than the national average interest rate, which was 9.41% as of February 2022. If you get something lower, that’s a solid deal for a borrower with fair credit. However, you may receive a higher figure due to your credit history.

MoneyGeek’s Picks for 2022

Best Personal Loans for Fair Credit

Last Updated: 6/23/2022

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Reviewed By

Scott Strandberg

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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.

WHAT WE’RE GEEKING OUT ON

The Best Overall Personal Loans for Fair Credit
How to Choose the Right Personal Loan for You
Calculate Your Monthly Payment Using Personal Loan Calculator
Frequently Asked Questions About Personal Loans

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
LightStream requires a minimum credit score of 660 to qualify for a personal loan. It offers APRs ranging from 2.49% to 20.49%, but having a fair credit score may put you towards the higher end of the spectrum.
Allowing LightStream to withdraw your monthly payment automatically qualifies you for a 0.5% discount. You don’t have to worry about additional fees from the lender processing your application, as LightStream lacks origination fees, late fees and prepayment penalties. It also has a mobile app for iOS and Android users that makes managing your loan more convenient.
However, LightStream has some negatives as well, like the fact that it conducts hard credit checks that can affect your credit score. In addition, LightStream has quite a few restrictions regarding how you can use the money it lends you.
Pros
No origination fees, late fees or prepayment penalties
No minimum income requirement
Loans of up to $100,000 offered
Same-day loan processing
Auto-pay discount of 0.5%

Cons
Minimum credit score of 660
Conducts hard credit checks
Imposes restrictions on usage of funds
Debt consolidation loans will not be paid directly to the third-party lender
APR range: 4.49%–20.49%
Minimum/maximum loan amount: $5,000–$100,000
Minimum credit requirements: 660
Repayment terms: 24–84 months
Time to receive funds: Same-day
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
If you can meet the 680 minimum credit score requirement for their personal loans, SoFi is MoneyGeek’s second choice for fair credit personal loans. Its APR range only goes up to 20.28%, which is a lower top end than you’ll find with most competitors. This is important because, with fair credit, you likely won’t qualify for any company’s lowest interest rates.
You can qualify for a discount if you set up an automatic payment process with SoFi, and there are no origination fees or prepayment penalties. One of the best things about SoFi is they only do a soft inquiry credit check, which doesn't affect your credit scores.
That said, SoFi has a minimum gross income requirement of $50,000 and a debt-to-income limit of 43%, so this lender isn’t for everyone.
Pros
Up to $100,000 loans available
0.3% autopayment discount rate
Conducts soft credit checks
No origination fees
No prepayment penalty

Cons
Minimum gross income requirement of $50,000
Takes up to seven days to release funds
High credit score requirement
Debt-to-income limit of 43%
APR range: 5.74% to 20.28%
Minimum/maximum loan amount: $5,000–$100,000
Minimum credit requirements: 680
Repayment terms: 12 to 60 months
Time to receive funds: Two Days
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%
Learn More
Upstart
300
$1K–$50K
3.5%–35.99%
Learn More
American Express
660
$3.5K–$40K
4.93%–19.97%
Learn More
Upgrade
560
$1K–$50K
5.94%–35.97%
Learn More
Rocket Loans
640
$2K–$45K
5.97%–29.99%
Learn More

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.

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?

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.

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.

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.

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

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

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

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

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

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.

Month	Payment	Principal	Interest	Balance

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.