Best Personal Loans for Fair Credit in March 2025

Getting a loan with fair credit can be difficult, especially if you don’t know where to look. However, some lenders, like Upgrade and Upstart, offer personal loans for fair credit that can be used for emergencies, debt consolidation, major purchases, and more. 

We’ll show you which lenders offer loans for fair credit, how to improve your chances of getting a loan with fair credit, plus how to lower your rate. We’ll also cover how to improve your credit score, plus personal loan alternatives.

Best personal loans for fair credit

Methodology

Credible evaluated the best personal loans for fair credit based primarily on whether loans are available to borrowers with fair credit, as well as whether secured loans or cosigned loans are available, minimum and maximum rates and terms, customer experience, available loan amounts, available discounts, and income requirements. We also considered each lender’s approval rates, average interest rates, average FICO scores, average loan amounts, and approved loan purposes based on Credible proprietary data. 

Credible’s team of experts gathered information from lender websites, customer service departments, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication.

Learn more about our personal loan lender rating methodology.

Average personal loan rates for fair-credit borrowers

Interest rates on personal loans for fair credit average around 30% APR, in general. Here’s how they compare to average personal loan rates for good credit, very good credit, and excellent credit. 

Current personal loan interest rates by credit score

Interest rates on fair credit loans by loan purpose

However, personal loan rates can vary somewhat based on the loan’s purpose as well.

Fair credit interest cost

The APR on a loan is extremely important, as it can lead to thousands of dollars either saved or spent when borrowing the same amount. To illustrate this difference, we compare the total cost of three different $20,000 personal loans, each with a five-year repayment term but with varying APRs.

$20,000 personal loan example

How to compare fair credit personal loan lenders

Key criteria to compare when evaluating fair credit personal loan lenders include:

1. Minimum credit score requirement: Some lenders disclose the minimum credit score they require to get a loan — look for this information before applying to avoid a loan denial. 

2. Loan amounts: Does the lender offer the loan amount you need? Keep in mind that loan size can vary by state.

3. Funding speed: Some lenders offer same-day or next-day loans.

4. Annual percentage rate (APR): APR captures both the interest rate and upfront fees on a loan so you can compare loan costs on an annual basis across lenders.

5. Fees: Expect to pay an origination fee if you have fair credit. This fee is accounted for in the APR, but it typically reduces the amount of money you receive since it's subtracted upfront from the loan funds. The higher the fee, the more you'll have to borrow to end up with the amount you need. Also, look for late payment and other lender fees.

6. Discounts: Some lenders offer rate discounts for autopay or if you direct the lender to pay off your creditors directly (if you're using the loan to consolidate credit card debt or other debt).

7. Repayment terms: Choose a repayment term that balances manageable monthly payments with the overall interest cost. Longer loan terms typically have lower monthly payments but cost more overall in interest. The opposite is true of shorter loan terms.

8. Other borrower requirements: In addition to requiring a minimum credit score, lenders often have a minimum income requirement and a maximum debt-to-income requirement. You might find this information in the lender's FAQ, in third-party lender reviews, or on a personal loan comparison website.

9. Customer reviews: Customers who write reviews are often motivated by a bad experience with the lender, which can skew ratings negatively. On the other hand, some companies actively request reviews from satisfied customers. With this in mind, check out reviews on sites like Trustpilot and the Better Business Bureau (BBB).

10. Availability: Some lenders don't offer personal loans in every state. Make sure your state isn't excluded.

What is fair credit?

Fair credit generally refers to a credit score between 580 and 669 on the FICO scale. Borrowers in this range may have a history of late payments, high credit utilization, limited credit history, or derogatory marks, such as collections, charge-offs, or bankruptcy on their credit reports. 

Lenders consider fair-credit borrowers to be a moderate risk. In other words, getting a loan with fair credit may be possible, but typically comes with a higher interest rate than what borrowers with good credit would pay.

What are fair-credit personal loans, and how do they work?

Fair credit loans are designed for individuals with FICO credit scores higher than 580 but below 669. They function similarly to other personal loans — they have fixed interest rates, fixed monthly payments, and a set repayment schedule. But they often have:

• Higher interest rates: Rates on fair credit loans were 30.30% APR on average in February 2025, according to Credible personal loan statistics. 
• Origination fees: Origination fees can range up to 12% of the loan amount, depending on the lender, though most lenders cap this fee at 10% or less.
• Lower loan amounts: The loan amount you qualify for is determined largely by the monthly payment you can afford. Since interest rates are higher on loans for fair credit, the monthly payment will also be higher. This limits the amount you can borrow relative to someone with good credit.

Related: How Do Personal Loans Work?

Secured vs. unsecured personal loans

Most personal loans are unsecured loans, but some lenders give fair credit (and bad credit) borrowers an easier avenue to approval via secured loans. Secured personal loans require collateral, like your car or a savings account, that can be seized by the lender if you default on the loan.

Compare: Secured vs. Unsecured Personal Loans

Where can I get a personal loan with fair credit?

If you have fair credit, credit unions and online lenders may be more willing to work with you than banks, which tend to have stricter qualification requirements. However, a solid relationship with a local bank could work in your favor, especially if you're looking for a small personal loan.

• Online lenders: Online lenders like Upgrade, Prosper, Best Egg, and Upstart specialize in lending to borrowers with fair credit. Other lenders, like OneMain Financial and Avant, offer loans for bad credit as well.
• Credit unions: Credit unions tend to have more flexible borrowing requirements than banks and lower rates. Some also offer payday alternative loans (PALs), which may be an option if you need $2,000 or less and a payment term of up to 1 year. Rates are capped at 28%, which is lower than what you'll find on many standard personal loans for fair credit.
• Traditional banks: Compared to credit unions and online lenders, banks may have the strictest credit requirements. While major national banks often require at least good credit for loan approval, having a strong relationship with your local bank might enhance your chances of getting a loan with fair credit.
• Peer-to-peer lenders: Perhaps the only true remaining P2P marketplace, Prosper, offers loans to borrowers with fair credit. These services allow individual investors to fund personal loans and potentially profit.

Related: Where Can I Get a Personal Loan?

How to get a personal loan with fair credit

1. Check your credit score: Know where you stand before applying. This will help you eliminate lenders who require a higher credit score than yours. Reviewing your credit report can also help you identify potential mistakes that could bring down your score. Dispute errors directly with the bureau that has the mistake.

Tip: Credible’s free credit score and credit monitoring tool lets you check your score anytime without hurting your credit and can show you how to improve it.

2. Prequalify with multiple lenders: Prequalifying lets you compare potential rates from multiple lenders without hurting your credit score. You can also see whether you're likely to be charged an origination fee, how much each lender might approve you for, and available repayment terms.

3. Gather documents: When you apply for a personal loan, you may need to provide proof of income, identity, and employment with paystubs or tax returns and a government ID.

4. Consider a cosigner or applying with a co-applicant: Either could help you get approved for a loan or lower your rate. The lender considers both your financial criteria and theirs when making a lending decision. Note that a cosigner doesn't share in the loan proceeds, while a co-applicant does. Few lenders offer personal loans with cosigners, but many more offer joint personal loans.

5. Consider a secured loan: You might improve your chances of qualifying for a loan or getting a lower interest rate if you offer collateral. Not all lenders offer secured personal loans, but OneMain Financial, Best Egg, and Upgrade are a few that do.

6. Apply for the loan: You'll submit your application online, in most cases. At this point, lenders typically conduct a hard credit check, which could ding your credit score by up to 10 points for up to 1 year.

7. Review the loan agreement: If approved for a loan, the lender will send a loan agreement with specific rates, fees, the repayment schedule, and other terms. This could differ from the prequalification quote you received, so examine it closely to make sure the terms work for you. If all looks good, sign the agreement to receive your money.

8. Await funding: Some lenders can send money the same day you're approved, while many others will send it as soon as the next business day.

Related: How To Get a Personal Loan

How to improve your credit score

If you have fair credit, improving your credit score — even by a few points — can help you get a better rate and save you hundreds or thousands of dollars. Here's how:

• Reduce credit card balances: By reducing your credit utilization (the percentage of available credit you use), you can make meaningful improvements to your credit score within one month. One way is to pay off new charges every month. Another is to use a debt consolidation loan to pay off your credit cards. It might seem counterintuitive to get one loan to improve your chances of getting another, but if you carry high balances (especially if you can get an equal or lower interest rate with a debt consolidation loan), it could be worthwhile
• Increase your credit limit: This tip is along the same lines as the previous one. If your existing creditors are willing to increase your credit limits, you can reduce your credit utilization — which can quickly boost your score. Another way to do this is to become an authorized user on a family member's or good friend's credit card. Just be sure they maintain a low or no balance and have good credit (otherwise, this tactic can backfire).
• Pay bills on time: This is an essential practice for getting and maintaining good credit. Start now since it can take a positive payment history of several months to see results.
• Avoid new hard credit inquiries: Don't apply for credit just to see if you can get approved. That costs you points off your credit score. Whenever you apply for a loan, do so with the intention of getting the loan to improve your situation.
• Check your credit report: Scour your report for errors and dispute any with the appropriate bureau. To view your free credit report from each bureau, visit AnnualCreditReport.com.
• Secured credit card: A secured credit card can help you build credit while giving you a small line of credit based on an initial deposit amount. Payments are reported to the credit bureaus, so timely payments can help improve your score.
• Credit-builder loan: If you need a relatively small loan and can wait for the money, consider a credit-builder loan. With this type of loan, you make a series of payments, usually from six months to two years, and then receive the full amount once you've finished paying the loan. Your payments are reported to the credit bureaus, which can improve your credit score.

Related: How To Build Credit: 10 Easy Strategies

How your FICO score is calculated

Alternatives to fair credit loans

If you’re struggling to get approved for a personal loan, consider these alternatives:

• Friends or family loan: Sometimes, the best place to turn for help is friends and family. Plus, you might prefer the idea of keeping money in your local circles instead of paying an unknown company. That said, be sure to clarify any agreement in writing and be aware of IRS requirements for minimum interest rates on non-gift loans if you’re borrowing $10,000 or more.
• Employer paycheck advance: Check with your HR department to see if you can get an advance on your next paycheck. Rates may be much lower than you’d find commercially, and qualification may be much easier. A paycheck advance could help you get through an emergency but is not best for long-term planning. 
• Government assistance: If you need a loan for bills or rent, visit 211.org for local assistance. 
• Debt management plan: A debt management plan through a certified credit counselor could be a good option if you’re looking for a loan to consolidate high-interest credit cards or other debt. The agency can potentially negotiate your rates down and eliminate fees. Note that this is different from debt settlement — a process by which a company attempts to eliminate a portion of the amount you owe. Debt settlement is generally not recommended as it can have a profoundly negative impact on your credit score and quality of life.