Best Personal Loans For Fair Credit In 2024

For many consumers with a limited income, keeping a fair credit score may be better to avoid being charged higher interest rates on loans and credit cards. However, other types of loan agreements are available for people with a fair credit rating.

For example, a personal loan is a good option for people with a fair credit rating and can be used for any purpose. This means that an individual can use a personal loan to pay off bills, invest in stocks or bonds, make a down payment on a home, or pay for renovations to a property.

Personal Loans For Fair Credit: Best Offers

If you have fair credit, you may still qualify for a fair credit personal loan from several different lenders. However, you may not be able to get the best interest rates or terms on your personal loan.

Here, we have compiled a list of some of the best fair credit lenders for personal loans for fair credit. These personal loan lenders offer competitive rates and terms and can help you get the financing you need.

Upgrade

Upgrade provides fair credit personal loans ranging from $1,000 to $50,000—perfect for borrowers who need a smaller personal loan. In addition, those with fair and high credit scores have a better chance of getting approved and qualifying for the company’s lowest interest rates.

Eligible applicants for an Upgrade personal loan may access a lower rate by taking out a secured loan. This means that the personal loan will be backed by collateral, such as a home or car, which the fair credit lender can seize if the borrower defaults on the personal loan.

Details

Here are some details about Upgrade personal loan providers:

• Loan Amount: $1,000 to up to $50,000;
• Interest Rate: 8.24% to 35.97%;
• Loan Term: 24 to 84 months;
• Fees: origination fee (1.85% and 8.99%), late payment fees ($10 once per late payment);
• Required score: minimum credit score requirement 580.

Key Features

Payment Flexibility: Upgrade lender allows users to change the repayment terms and dates to fit the budget better.

Autopay Discount: If borrowers sign up for automatic payments, they are eligible for a rate discount from Upgrade. Although the size of the discount is not stated on the company website, it is supposedly 0.5% off the annual percentage rate (APR).

Mobile App: The Upgrade lending service has a mobile app that makes applying for loans easier and more convenient. The app allows you to fill out an application, upload documents, and track the status of your personal loan, all from your mobile device.

Pros And Cons

There are several pros and cons of using this service.

Pros:

• Direct payment to third-party creditors;
• Low minimum credit amount;
• Fast funding;
• Available joint applications.

Cons:

• Origination fees;
• High APR;
• Available maximum amount of $50,000.

Avant

AvantAvant, established in 2012, is an online lender that offers personal loans, home loans, and business loans to its customers. Avant is an online lender that was established in 2012. It provides personal loans, home loans, and business loans. They offer a range of repayment terms depending on the customer’s needs.

Details

A brief overview of Avant online lender.

• Loan Amount: $2,000 to $35,000;
• Interest Rate: 9.95%—35.95%;
• Loan Terms: 1 to 5 years;
• Fees: Origination fee (0% to 4.75%), late monthly payment fee (around $25), return check fee ($15);
• Required score: The minimum credit score is 550.

Key Features

Fast funding: Avant promises to approve personal loan applications quickly and release funds by the following business day. Many lenders may take another business day for loan approval, even though fast funding has become the standard.

Mobile app: The Avant mobile app allows borrowers to manage and keep track of payments and adjust payment dates. This app is a convenient way to stay on top of your loan and ensure you make your payments on time.

Soft check: Avant offers soft credit report checks, which will not affect your credit score. This is an excellent option if you’re unsure if you can qualify for a personal loan.

Pros And Cons

Here are some of the pros and cons of using Avant lender service.

Pros:

• Fast funding;
• Lower credit score needed;
• Available mobile app;
• Soft credit reports check available;

Cons:

• High APR;
• No rate discounts;
• Origination fee.

Upstart

Upstart issues personal loans for fair credit to borrowers with average credit, considering several factors besides standard measures such as credit history. The platform is appropriate for applicants who require access to funds expediently but who would not likely be approved for a personal loan from a traditional lender.

Details

Some of the features that distinguish Upstart from most lenders are.

• Loan Amount: $1,000 to $50,000;
• Interest Rate: 6.50% to 35.99%;
• Loan Terms: 36 or 60 months;
• Fees: origination fee (0% to 8%), late fee (5%).
• Required score: The minimum credit score needed is 600.

Key Features

Fast funding: Upstart’s application process can take up to a business day from start to finish. Once you submit your application, one of our team members will review it and reply with any questions or comments. After the application is approved, the funds will be transferred to the applicant’s account immediately.

Available soft credit report check: Personal loans typically have higher interest rates than other types of loans, so it’s important to compare rates before you apply. Upstart’s pre-qualification feature lets you do this without impacting your credit score.

Payment date change: Upstart allows for payments to be made up to 15 days before or after the originally scheduled date – effectively making it possible for borrowers to change their payment deadline an unlimited number of times.

Pros And Cons

Here are some pros and cons of using Upstart online lender services.

Pros:

• Fast funding;
• Free financial education;
• Soft check is available;
• Allow changing the payment date.

Cons:

• High APR;
• Origination fees, prepayment fees, late fees;
• No secured loan.

PersonalLoans

PersonalLoans is a lending service that specializes in unsecured loans. The company strives to provide the most efficient and effective loans by giving loans that are repaid via online payment. The company offers personal loans from $1,000 to $35,000. PersonalLoans was founded in 1998 by professionals who saw a need for an alternative personal loan option outside the traditional banks and personal loan companies. PersonalLoans works with multiple lending partners to provide competitive interest rates and flexible repayment terms.

Details

Closer overview of PersonalLoans online service.

• Loan Amount: $1,000 to $35,000;
• Interest Rate: 5.99 to 35.99%;
• Loan Terms: 61 days to 96 months;
• Fees: origination fee (1% to 5%);
• Required score: minimum credit score 580.

Key Features

Wide range of products: With PersonalLoans, you have a variety of loans to choose from. These rocket loans can be used for any occasion, from major life events such as weddings or renovations to personal emergencies (medical, renovation, education, and auto personal loans).

Fast funding: With PersonalLoans, you can get approved in less than an hour and borrow the money you need in a business day. The application process is easy, which allows you to fill it in several minutes.

Available education resources: PersonalLoans not only provides an online personal loan marketplace but also acts as an excellent resource for financial education. You can find articles on topics such as debt management, financial discipline, and credit score improvement in the ‘Loan Guides’ section.

Pros And Cons

When using such a lender as PersonalLoans, it is good to know its pros and cons. So here are some of them.

Pros:

• Fast funding;
• Available educational resources;
• Wide range of payday loans available;
• Loans up to $35,000.

Cons:

• High APR;
• No direct lending;
• Origination fee.

Best Egg

Best Egg provides personal loans (both unsecured and secured) to individuals with fair to good or excellent credit through an online platform. Best Egg offers personal loan amounts from $2,000 to $50,000 and terms from 3 to 5 years, making it an excellent option for various borrowing needs.

Additionally, Best Egg’s application process is entirely digital, making it quick and easy to apply for a loan. Best Egg provides a variety of ways for customers to use their personal loan funds, including home improvement, college tuition payments, and other personal expenses.

The company also has flexible repayment terms, including automatic monthly deductions from a customer’s bank account or credit card, which can help make the repayment terms even easier.

Details

General overview of Best Egg online lender.

• Loan Amount: $2,000 to $50,000;
• Interest Rate: 8.99 to 35.99%;
• Loan Terms: 3 to 5 years;
• Fees: origination fees (0.99% to 8.99%). Return check fee ($15);
• Required score: The minimum credit score is 600.

Key Features

Wide loan types range: Best Egg offers loans for various purposes, including home equity, moving expenses, and home improvement.

Free credit score access: Borrowers who have taken out personal loans with Best Egg can view their scores through their accounts. This feature lets customers see how making timely payments affects their credit scores.

Secured loans available: Best Egg personal loans can be either unsecured, not needing collateral, or secured, which requires some form of security. Although unsecured loans often have higher interest rates, it is simpler to qualify for than secured loan.

Pros And Cons

Here are some pros of using Best Egg online lender.

Pros:

• Available secured and unsecured loans;
• Wide range of loan types;
• Available soft credit check;
• Available for fair credit scores.

Cons:

• Origination fee;
• There is no option to select the initial payment date;

Discover

Discover offers unsecured personal loans that can be used for various purposes to borrowers with high credit scores. No collateral is required for these rocket loans, making them an excellent option for those who may not have any assets to use as collateral. As with all loans offered by Discover, the unsecured personal loan has no origination fee, and there are no deferred interest or balloon payments.

Details

Here are some vital information borrowers should know before applying for a personal loan.

• Loan Amounts: $2,500 to $35,000;
• Interest Rate: 6.99 to 24.99%;
• Loan Terms: 3 to 7 years;
• Fees: late fee ($39);
• Required score: The minimum credit score is 660.

Key Features

Credit scorecard: Discover offers customers a free FICO credit score every month, detailing credit utilization; see payment history and credit length. Customers can use this scorecard to track their credit progress and identify improvement areas.

Debt consolidation: If Discover approves your debt consolidation loan request, you may qualify for a low interest rate, and your creditors could receive funding within 24 hours. This can be an excellent option for those struggling to keep up with multiple monthly payments.

Pros And Cons

Here are some pros and cons of Discover online lender.

Pros:

• Fast funding;
• No origination fee;
• Mobile app available;
• Debt consolidation available;
• Soft check available.

Cons:

• High APR;
• No rate discount;
• No joint loan option.

Happy Money

If you have fair to average credit and need a consolidated debt for your existing credit card debt, then Happy Money is the best personal loan option for you. Happy Money only offers loans for credit card debt consolidation, so the platform is inadequate for consumers who require other types of financing.

Details

Before applying for credit card debt consolidation loans in Happy Money, consider the following details.

• Loan Amounts: $5,000 to $40,000;
• Interest Rate: 7.99% to 29.99%;
• Loan Terms: 2 to 5 years;
• Fees: origination fee (0% to 5%);
• Required score: The minimum credit score is 640.

Key Features

Soft check: Happy Money’s website offers potential borrowers rate and term estimates – without affecting their score. However, if a loan offer is accepted, your score may dip slightly as they initiate a hard credit pull.

Direct payment to creditors: This loan consolidation process will be much more straightforward for the borrower, as the lender will deposit the loan funds into their account and pay off any outstanding credit cards.

Pros And Cons

Here are some pros and cons of using Happy Money’s website offers.

Pros:

• Fast funding;
• No late fee;
• Available soft check.

Cons:

• Origination fee;
• No joint loan offer.

PenFed

PenFed personal loans are a perfect option for those looking for a long-term loan with fair credit score requirements. While they primarily serve military members, anyone can become a member by opening a savings account with as little as $5.

Details

Here are some details to know before applying for the best personal loans on PenFed.

• Loan Amounts: $600 to $50,000;
• Interest Rate: 7.74 to 17.99%;
• Loan Terms: 1 to 5 years;
• Fees: late payment ($29);
• Required score: The minimum credit score is 700.

Key Features

Soft check: PenFed is unique compared to other credit bureaus and banks because it offers online pre-qualification. This lets customers see potential rates and loan amounts without negatively impacting their payment history.

Joint loans: Adding a co-borrower or cosigner to your loan application can help increase your chances of qualifying for the loan or getting a lower interest rate. This is because cosigners can help improve your credit score and debt-to-income ratio.

Pros And Cons

Let’s examine some pros and cons of using the PenFed credit service.

Pros:

• Available soft credit check;
• Wide range of loans available;
• Relatively low APR;
• Offers credits for fair credit score;
• Low credit amount.

Cons:

• No direct payment;
• No rate discount.

LightStream

LightStream offers the best personal loans with competitive interest rates, and no personal loan lenders charge for borrowers with good to excellent credit scores. Loan amounts start at $5,000 and can go up to $100,000, making LightStream a good option for fair credit borrowers who need a large loan.

Details

General overview of LightStream lending service.

• Loan Amount: $5,000 to $100,000;
• Interest Rate: 5.99% to 23.99%;
• Loan Terms: 2 to 7 years;
• Fees: no fees;
• Required score: The minimum credit score is 660.

Key Features

Term availability: LightStream offers borrowers repayment terms of two to seven years, allowing them to choose an overall interest or monthly payment.

No fees: LightStream has low variable rates based on the loan amount, purpose and repayment terms, and the applicant’s credit history – with some loans having no fees, according to the lender.

Pros And Cons

Here are some advantages and disadvantages of using LightStream service.

Pros:

• Rate discounts;
• No origination fee;
• Experience Guarantee program available.

Cons:

• No direct payments;
• Need stable credit history.

LendingPoint

LendingPoint personal loans originated in 2014. This financial technology company specializes in online personal loans that provide borrowers anywhere from $2,000 to $36,500. They offer personal loans to borrowers who need cash flow, face challenging financial circumstances, and seek a solution.

Details

Before applying, let’s find out what features LendingPoint has.

• Loan Amount: $2,000 to $36,500;
• Interest Rate: 7.99% to 35.99%;
• Loan Term: 2 to 5 years;
• Fees: origination fee (0% to 8%);
• Required score: minimum credit score requirements 600.

Key Features

Soft check: LendingPoint is an excellent option for a personal loan because you can pre-qualify for loan offers without damaging your credit score.

Fast funding: LendingPoint’s streamlined application process only takes minutes to complete. Once you have submitted your application, personal loan lenders can make personal loan approval decisions in seconds.

Pros And Cons

There are some advantages and disadvantages of using LendingPoint.

Pros:

• Fast funding;
• Available soft credit check;
• Change payment date option;
• The mobile app is available.

Cons:

• Origination fee;
• No joint loan options.

Summing Up Of Personal Loans For Fair Credit 2024

Many people with fair credit have a difficult time obtaining personal loans for fair credit. Furthermore, even people with fairly nice credit might find it challenging to repay their loans if they have to do so over a long period. This is why it is always important to carefully consider the terms of a loan before accepting it. Here, we have provided a table with a visualization of each lender’s terms.

What Fair Credit Score Means

A “fair credit score” is paramount to any lending company, bank, or financial institution providing money to the public. Fair credit is calculated by dividing a borrower’s credit score by credit utilization and multiplying that by 100.

This score is then translated into a scale from 0-100. A fair credit score is considered to be above 60 but below excellent. A higher credit score means a better chance of being approved for loans.

How To Qualify For A Personal Loan With Fair Credit

Several factors impact credit scores, but one is of the utmost importance: the utilization rate. The utilization rate measures how much credit you’ve used compared to your total available credit.

So, the utilization rate is the percentage of credit you have used. So, if you owe $5,000 on a card with a limit of $10,000, your utilization rate is 50%. For a fair chance at qualifying for a loan, keep your utilization rate below 50%. A lower credit utilization will result in a higher credit score.

How To Improve Your Credit Score

Improving your credit score is one of the best ways to boost your financial security and protect your borrowing rights. There are a few things you can do to improve your credit score. You can:

• Pay your bills on time. This will help your credit score because it shows you’re a responsible borrower.
• Keep your credit utilization low. This means you’re using your credit cards and loans for the minimum amount required to pay off your debts.
• Keep your credit score updated. This will help you understand how your credit score changes and ensure you take steps to improve it.

Where To Get Fair Credit Loans

Getting a loan is no easy task. And if you have bad credit, the challenge can be even more significant. For those with fair credit looking for a financial solution, there are a few places where the user can get the best fair credit loans.

Banks

Banks often extend loans to individuals with fair credit, so it can be worthwhile to consider a personal loan. It can be a great way to cover necessary expenses without incurring more debt. Some banks even offer zero percent introductory interest rates for a certain period, which can help reduce what you owe.

Credit Unions

These organizations often offer more lenient requirements for customers seeking loans than other creditors. So, if your credit rating is fair, there is a good chance you can find a loan at a credit union and not have to deal with high interest rates and strict requirements like a bank.

Online Lenders

Depending on the user’s needs, many lenders can offer personal loans with various additional options. For example, loans with fixed or variable interest rates may be available. Additionally, online lenders may offer loans with varying terms, such as short-term or long-term.

It is advisable to speak with a financial advisor before taking out a loan with fair credit. In addition, it is essential to thoroughly read over the terms and conditions of any online loans before completing an application.

Peer-to-Peer Lenders

P2P lending is a great way to get a fair credit loan. People whom a bank has denied still have a chance of getting a loan from a P2P lender. This is a win-win situation since the bank has a client it cannot serve, and the borrower can obtain a loan. A user’s credit score can range from 300 to 850, and the higher the score, the more likely the user will be approved for a loan.

Alternatives to Loans For Fair Credit

Many multiple lenders will get a loan for those with bad credit. Some people may get a loan from a friend or family member, while others may choose to use a credit card or take out a personal loan from a lender. Here are some other options you can choose from to get a personal loan.

Credit Union

These non-profit organizations are typically cooperatives of people trying to help each other. They keep transaction fees low and are much easier to get a loan from than banks. Credit unions work hard to get you credit when needed so you can get a financial foot on the ground. Getting a loan from a credit union is an excellent way for middle or low-income families to start saving and building their credit.

0 Percent APR Credit Card Balance Transfer

A credit card balance transfer helps consumers with their credit card debt by avoiding high interest charges and penalties for missed payments. The 0% credit card balance transfers are an excellent alternative to loans for people with fair credit. Generally, when a consumer goes for a balance transfer, they have a set time. Therefore, it is essential to pay off that period to avoid interest and other penalties.

Home Equity Loan Or Line Of Credit

A home equity loan is a secure line of credit that funds in one lump sum and requires borrowers to make payments over a fixed amount of time. Fair credit borrowers may have to pay interest and fees on a credit card even if they pay their balances off sooner than expected.

A home equity loan is a loan that may be used for various purposes, including funding a financial project, consolidating higher-interest debts, or buying a car. The lender could seize the property if a borrower fails to make monthly payments.