Best personal loans for fair credit in July 2024
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BLUEPRINT
Updated 5:20 a.m. UTC July 1, 2024
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Applying for a personal loan can be intimidating — especially for borrowers with less-than-stellar credit. However, some lenders impose less rigorous loan eligibility standards that can make it easier to qualify for a personal loan when you need it.
In 2024, the best personal loans for fair credit have low minimum credit score requirements and competitive interest rates. Some of the best personal loan lenders also allow you to apply with a co-signer to improve your approval odds. In addition to these factors, we also looked at each lender’s total borrowing costs, available repayment terms and funding speeds to identify the best lenders for your needs.
Best fair credit personal loans
- Prosper: Best overall.
- Avant: Best for building credit.
- Achieve: Best for discounts.
- LendingPoint: Best for quick approval decisions.
- LendingClub: Best for co-borrowers.
- Oportun: Best for small loans.
- U.S. Bank: Best for no origination fee.
- Universal Credit: Best for poor credit.
- Upstart: Best for thin credit.
Why trust our personal loan experts
Our team of experts evaluated hundreds of personal loan products and analyzed thousands of data points to help you find the best fit for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 23 personal loan lenders reviewed.
- 322 data points analyzed.
- 6-stage fact-checking process.
Compare the best personal loans for fair credit
| INTEREST RATES | LOAN AMOUNTS | REPAYMENT TERMS | MIN. CREDIT SCORE | |
|---|---|---|---|---|
Prosper
| 8.99% to 35.99%
| $2,000 to $50,000
| 2 to 5 years
| 560
|
Avant
| 9.95% to 35.99%
| $2,000 to $35,000
| 1 to 5 years
| 580
|
Achieve
| 8.99% to 35.99%
| $1,000 to $50,000
| 2 to 5 years
| 620
|
LendingPoint
| 7.99% to 35.99%
| $2,000 to $36,500
| 2 to 6 years
| 600
|
LendingClub
| 8.98% to 35.99%
| $1,000 to $40,000
| 2 to 5 years
| No minimum
|
Oportun
| 34.95% to 35.99%
| $300 to $18,500 (depending on your state and loan type)
| 1 to 5.33 years
| No minimum
|
U.S. Bank
| 8.74% to 24.99%
| $1,000 to $50,000 ($25,000 maximum for non-U.S. Bank customers)
| 1 to 7 years (5-year maximum for non-U.S. Bank customers)
| Does not disclose
|
Universal Credit
| 11.69% to 35.99%
| $1,000 to $50,000
| 3 to 5 years
| 620
|
Upstart
| 7.8% to 35.99%
| $1,000 to $50,000
| 3 or 5 years
| 300
|
All rates include autopay discounts where noted by the lender and are accurate as of June 11, 2024.
Methodology
Our expert writers and editors have reviewed and researched multiple lenders to help you find the best personal loan for fair credit. Out of all the lenders considered, the nine that made our list excelled in areas across the following categories (with weightings): loan cost (25%), loan details (15%), eligibility and accessibility (35%), customer service (15%) and direct creditor payment (10%).
Within each major category, we considered several characteristics, including APR ranges, prepayment penalties, maximum loan amounts and terms, minimum credit score requirements and co-signer acceptance. We also evaluated each provider’s customer support options and customer reviews.
Why some lenders didn’t make the cut
Of the personal loan lenders that we reviewed, only a fraction made the cut. The lenders that didn’t have high enough scores to be included, received lower ratings due to having stricter credit score requirements, limited customer service options and bad customer reviews as well as not allowing co-signers.
What is a fair credit score?
A fair credit score is generally considered a FICO score between 580 and 669. Borrowers with fair credit tend to pose more risk for the lender, so they may find it difficult to qualify for personal loans or get low interest rates.
How to get a personal loan with fair credit
It’s possible to get a personal loan with fair credit, though sometimes the terms and interest rates may not be as favorable as those offered to borrowers with good or excellent credit scores.
For example, some lenders are willing to offer personal loans to borrowers with fair credit if they demonstrate a financial history that shows they can responsibly manage their debt. Additionally, lenders may look at other factors, such as employment and income, to determine a borrower’s ability to repay the loan.
To increase your chances of approval, compare interest rates and terms from multiple lenders to find the right fit for your needs. Also, consider adding a co-signer or co-applicant with better credit to get approved for a personal loan with fair credit.
Tips for boosting your credit to get a better loan
If you’re in the fair range, consider improving your credit before applying for a personal loan. These strategies can help:
- Pay your bills on time. Payment history is one of the most important factors in a credit score. To strengthen your credit in the months before applying for a personal loan, focus on paying your credit cards and other bills on time.
- Ask for a credit limit increase. Some of your credit score is based on your credit utilization, which is the amount of available credit you’re using. Asking your credit card issuers to increase your credit limit automatically lowers your utilization — as long as you don’t charge more to your cards.
- Fix any errors. Credit-scoring companies use the information in your credit reports to calculate your scores, so any wrong information may hurt your credit. Request a copy of your reports from AnnualCreditReport.com, and dispute any errors with the credit bureaus.
- Become an authorized user. Ask a trusted friend or relative if they would consider adding you as an authorized user on one of their credit cards. This can help since it will then be on your credit report, too. Just keep in mind that although low balances and on-time payments can boost your credit score, high utilization rates and missed payments can do the opposite.
Frequently asked questions (FAQs)
It is possible to get a personal loan with a 600 credit score, though some lenders may require a higher score — especially for the loans with lower interest rates. Borrowers can prequalify with multiple lenders to see the rates they are likely to qualify for and then formally apply for the best offers.
The easiest loan to get approved for depends on the individual’s borrowing needs, credit score, income level and other financial factors. Generally speaking, secured loans such as auto loans or mortgages may be easier to get approved for than unsecured loans. This is because the presence of collateral reduces the risk the lender bears.
A personal loan can positively impact your credit in a few ways. Taking out a new type of debt can help diversify your credit mix, which can help improve your credit. Making payments on the loan can also help you build a positive payment history, which can boost your credit score.
But personal loans can sometimes hurt your credit, too. When you submit a loan application, the lender does a hard credit inquiry which will lower your credit score by a few points. New accounts can also lower the average age of your credit, which has a negative effect. However, both negative effects are usually minimal and temporary.
A bad credit score for a personal loan is generally a FICO score between 300. Some lenders don’t set a minimum score to qualify, so you may be able to get a personal loan if you lack a credit history or your credit score is on the lower end.
Lenders may also be willing to give personal loans to people with poor credit. But in either case, you’ll likely pay a higher interest rate because the lender is taking on more risk.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
