Why You Should Trust Us: How We Chose the Best Personal Loans for Fair Credit
Business Insider rates all personal loan products in our reviews and guides on a 1-5 scale. The assigned rating is a weighted average that takes into account several categories, such as:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each weighting reflects the importance of these various criteria. The interest rates and fees you'll pay are among the most important considerations, so they are given the most weight. Other factors like customer service and company ethics are still important, but are weighted less heavily.
A personal loan can be a good way to get quick cash for expenses like home improvement projects, moving costs, or a vacation. You'll pay it off in monthly installments, and your interest rate will be fixed for the life of the loan.
Your credit score is a primary factor in determining the interest rate for your loan. There are plenty of lenders offering the best personal loans for fair credit.
Even though you may qualify for a loan with these lenders, the lower your credit score, the higher your interest rate will be. You may be able to get a lower rate with other options, such as a credit card (although they, too, can charge hefty rates).
Best Personal Loans for Fair Credit
- Best for coborrowers: PenFed Credit Union Personal Loan
- Best for small loan amount: Upgrade Personal Loan
- Best for fast funding: Avant Personal Loan
- Best for no fees: Navy Federal Credit Union Personal Loan
- Best for limited credit history: Upstart Personal Loan
- Best for customer service: Best Egg Personal Loan
Apply for a Loan
Best for Coborrowers
8.99% to 17.99%
$600 to $50,000
Pros
Cons
For borrowers with excellent credit, PenFed Credit Union has great minimum interest rates on its personal loans. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
PenFed Credit Union Personal Loan- Loan amounts range from $600 to $50,000
- Term lengths between one to five years
- Loans originated by Pentagon Federal Credit Union
PenFed allows you to add a co-borrower to your application. If you don't have the best credit and are concerned your lender might not approve your loan as a result, you can choose to enlist a co-borrower and may qualify for a better rate.
You should also know that PenFed has membership requirements. You need to join the credit union to take out a loan. Members of the military and employees of qualifying organizations will be eligible, but if you don't qualify, you can join by opening a savings account with a $5 minimum deposit.
Best for Small Loan Amounts
9.99% to 35.99%
$1,000 to $50,000
580
Pros
Cons
Upgrade is a solid lender if you can qualify for its lowest interest rate. But if your credit isn't in great shape, you may be able to find a better deal elsewhere.
Upgrade Personal Loan- Loan amounts range from $1,000 to $50,000
- Loan term lengths range between 2 to 7 years
- You can get your money within one business day after your loan is reviewed and approved
- Loans made by Upgrade's lending partners
Upgrade has some of the smallest loan amounts available among the lenders on the list. You can borrow as little as $1,000. Other than Upgrade, credit unions are probably your only other option for such a small amount. If you just need a bit of cash to tide you over, Upgrade is one of the best personal loans for fair credit.
Best for Fast Funding
9.95% to 35.99%
$2,000 to $35,000
600
Pros
Cons
Avant Personal Loan is a good personal loan provider, especially if you have a lower credit score and need to receive your loan money quickly. Just be prepared to pay a high APR if you do have a low score.
Avant- Loan amounts range from $2,000 to $35,000
- Loan term lengths range between 2 to 5 years
- Administration fee of up to 4.75%, which will be deducted from your loan proceeds when the loan is funded, and late fee that varies by state
- Loans made by WebBank, member FDIC
Avant offers quick access to personal loan funds. If your loan is approved by 4:30 p.m. CT Monday through Friday, funds are generally deposited by the next business day, per the company's website.
Borrowers need to look out for high fees from Avant. You'll pay up to up to 4.75% in administration fees with an undisclosed late fee and returned payment fee in administration fees with an undisclosed late fee and returned payment fee.
Best for No Fees
8.99% to 18.00%
$250 to $50,000
Undisclosed
Pros
Cons
- Loan amounts range from $250 to $50,000
- Term lengths between six months to five years
- Loans originated by Navy Federal Credit Union
Navy Federal has no origination fees or prepayment penalties. This could save you money on the overall cost of your loan, and other lenders on our list charge these fees.
Unfortunately for many borrowers, Navy Federal has strict membership requirements. It's relatively hard to qualify for Navy Federal membership.
You're only eligible if you are an active military member, veteran, employee, or retiree of the Department of Defense or a family member of someone in one of those groups.
Navy Federal Personal Loans Review
Best for Limited Credit History
6.60% to 35.99% fixed
$1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100)
300
Pros
Cons
Upstart could be the right lender if you have a strong work and education history, but you have a low credit score or limited credit history. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
Upstart- Loan amounts range from $1,000 to $50,000. However, borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100
- Loan term lengths are either 3 or 5 years
- Can have origination fees up to 8%
- Considers employment and education history when making loan approval decisions
- Loans are made through one of several Upstart-powered bank partners
Upstart relies on more than credit scores and credit history when deciding whether or not to approve loan applications. For people who have struggled with credit in the past, Upstart will factor in a few other pieces of information, including employment history and education history, for a better shot at approval.
As a borrower, you'll need to watch out for Upstart's limited repayment terms. While other lenders offer several options on how long you'll have to repay, Upstart only offers three-year and five-year terms. This choice could be impractical for borrowers on either extreme of the borrowing scale. However, there is no prepayment penalty, so you can pay your loan off at any time without a fee.
Best for Customer Service
6.99% to 35.99%
$2,000 to $50,000
600
Pros
Cons
- Loan amounts range from $2,000 to $35,000
- Loan term lengths range between 3 to 5 years
- You may get your money by the next business day after your loan is reviewed and approved
- Loans made by Best Egg's lending partners
- Unavailable if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories
Best Egg's high customer satisfaction makes it one of the best personal loans for fair credit. Best Egg has a 95% customer satisfaction rate, which is supported by its stellar A+ Better Business Bureau trustworthiness score.
Keep in mind that Best Egg does charge origination fees. You'll face an origination fee between 0.99% and 9.99%, which is baked into your APR. Best Egg also charges a late fee of $15.
Best Egg Personal Loans Review
Compare Today's Rates
Personal Loans for Fair Credit Lender Trustworthiness
To help you decide on loans for fair credit, we compared each institution's Better Business Bureau score. The BBB measures businesses based on factors like their responsiveness to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:
| Lender | BBB Grade |
| Upgrade Personal Loan | A+ |
| Avant Personal Loan | A+ |
| Best Egg Personal Loan | A+ |
| Navy Federal Credit Union Personal Loan | NR |
| Upstart Personal Loan | A+ |
| PenFed Credit Union Personal Loan | A+ |
All of our top picks are rated A- or higher by the BBB, with the exception of Navy Federal. Navy Federal is not rated because the credit union is in the process of responding to formerly closed complaints. Previously, the business had an A+ rating from the BBB.
In November 2024, the Consumer Financial Protection Bureau required Navy Federal to pay over $80 million to customers for illegal overdraft fees.
Navy Federal Credit Union released a statement following the investigation. In the statement, it said, "Navy Federal fully cooperated with the CFPB's investigation and we will continue to comply with all applicable laws and regulations, just as we always have and as we believe we did here."
The statement also says Navy Federal Credit Union has previously announced that it will be eliminating non-sufficient funds fees for checking accounts in the beginning of 2025, and will also look for ways to help members avoid fees.
Keep in mind that a high BBB score does not guarantee a positive relationship with a lender and that you should continue to do research and talk to others who have used the company to get the most comprehensive information possible.
How to Choose the Best Personal Loan for Fair Credit
To get a personal loan for fair credit, think about what means the most to you. Many borrowers focus on the lowest interest rate but also think about any fees, the minimum credit score needed, and the accessibility of the lender's customer service. You'll also want to make sure you're able to select a term length that works for you and that the lender you pick allows your reason for your loan.
You'll want to understand if you qualify for a loan or if you may need to add a cosigner to boost your chances of being eligible. See if you can prequalify for a personal loan to compare offers without a hard inquiry on your credit, too. Guides like this one will help you weigh multiple lenders to compare their pros and cons. Make sure to also read individual reviews of any lenders you're considering.
Tips for Getting Approved for a Personal Loan with Fair Credit
Finding a personal loan for fair credit can be challenging. Here are tips to help you get approved for the loan you need:
- Review your credit report. Borrowers with fair credit should check their free credit report prior to applying for a new loan. It's important to make sure it is free of any errors and that any issues are addressed beforehand.
- Try to improve your credit score. The higher your credit score, the better rates you're likely to qualify for. So, be sure to make payments on time, avoid opening new accounts leading up to applying for a new personal loan, and pay down any outstanding debt.
- Find a cosigner. If you're worried that you won't qualify for a loan or that the rates will be too high, then it's best to consider a cosigner. Finding a cosigner with good credit can increase your chances of approval and eligibility for lower rates.
- Compare lenders. It's usually worth the time to get quotes from multiple lenders to find the lowest rates and best terms.
- Consider a smaller loan amount. By starting with a smaller loan, you could demonstrate that you're a responsible borrower. This could potentially help you get approved for a larger loan with more desirable terms down the road.
FAQs
How can I get a personal loan with fair credit?
Your credit score determines what loans you can get. To get a personal loan with fair credit, you'll have to fill out an application and see if you qualify. If you don't, take steps to improve your credit score or add a cosigner.
What is the average interest rate for fair credit loans?
The average personal loan rates can vary frequently. Most recently, the average APR for fair credit was 23.95%, with the minimum APR coming in at 11% and the maximum APR at 34.92%.
What are alternatives to fair credit personal loans?
Alternatives to taking out a personal loan include asking friends or family, getting a paycheck advance, or applying for a 0% APR credit card.
What is a fair credit score?
Credit scores categorized as fair differ depending on the credit scoring model used to determine them, FICO or VantageScore. In general, a credit score falling between 580 and 669 is considered fair.
Are there any risks associated with loans for fair credit?
You should only consider a personal loan for fair credit if you are committed to making payments on time. Otherwise, you risk falling deeper into debt and worsening your financial situation.
