Best personal loans for fair credit
The current economic landscape remains challenging for many individuals. Despite signs of improvement, such as easing inflation and the first Fed rate reduction of 2024, many people continue to face financial difficulties.
In these trying times, personal loans could offer a potential solution for those experiencing monetary constraints. However, it's crucial to understand that personal loan options can vary significantly, particularly for individuals with less-than-perfect credit histories.
If you're contemplating a personal loan and have a few blemishes on your credit report, don't lose hope. There are still viable options available for borrowers with fair credit. Let's explore some of the best choices for those with fair credit.
Find out how affordable the right personal loan could be now.
Best personal loans for fair credit
If you're looking for a loan with less-than-perfect credit, here are some of the best personal loans for fair credit, broken down into five categories.
- Best overall: Upstart
- Best for large amounts: PenFed
- Best for quick approval: Prosper
- Best for low rates: LightStream
- Best for extended terms: SoFi
Best overall: Upstart
Online lender Upstart is our pick for best personal loan. The company offers a blend of low, fixed interest rates, fasting funding times and high loan amounts (up to $50,000), and it considers non-credit information when evaluating your application — things like education and employment.
Applying for a loan takes less than five minutes, and most borrowers can get approved instantly. Funds are then issued in 24 hours or less for many applicants. Upstart offers three- and five-year terms.
Learn more about Upstart loans here.
Best for large amounts: PenFed
PenFed is another option if you're looking for a large loan amount. The credit union offers personal loans with limits up to $50,000 and terms of up to five years. You can use the loan for debt consolidation, home improvements, adoption, weddings and more, and there are no origination, early payoff or balance transfer fees. Funding happens as quickly as the next business day.
Learn more about your PenFed loan options here.
Best for quick approval: Prosper
Prosper's a smart option if you're looking to get your personal loan quickly. You can check your rate online in minutes, customize your term and monthly payment, and then receive funding in as little as one business day. Funds are direct-deposited into your bank account for immediate use. Prosper's loan terms range from two to five years.
Best for low rates: LightStream
If snagging the lowest interest rate is your goal, look to LightStream. The lender offers the lowest potential APRs of all companies we considered, with rates starting at just 6.99% (with a 0.50% autopay discount included).
Loans can be used for home improvements, debt consolidation, car purchases or refinancing, boat/RV/aircraft purchases, K-12 education, medical costs, buying a timeshare and more. And if you're approved, you can even receive your funds the same day.
Explore your LightStream loan options here.
Best for extended terms: SoFi
For a longer payoff time, consider SoFi. The online bank offers personal loans that range from two years to seven — much longer than the typical five years offered by most lenders.
The lender also lets you prequalify in 60 seconds, and you can get funding the same day you apply. There are no fees and interest rates are fixed so your rate and payment will never change.
Learn more about SoFi personal loans here.
The bottom line
Make sure you shop around and compare at least a few lenders before getting a personal loan. Look at rates, terms, and repayment options — and consider customer reviews and ratings, too. This will ensure you get the best possible loan for your needs and budget.
