Updated March 2026·CompareBankLoans Editorial Team·Fact checked

Best Personal Loans for Fair Credit

Fair credit — roughly 580 to 669 FICO — limits your options but doesn't eliminate them. Here's where to look and what to expect.

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Best Match
L

LightStream

4.9/5

APR

7.49%

Est. mo. payment

$198

Loan range

$5K$100K

Total fees

$0

Get My Rate on LightStream
Terms vary by lenderSame day funding
U

Upstart

4.6/5

APR

7.80%

Est. mo. payment

$220

Loan range

$1K$50K

Total fees

$480

Get My Rate on Upstart
Terms vary by lenderNext-day funding
DP

Discover Personal Loans

4.7/5

APR

7.99%

Est. mo. payment

$197

Loan range

$3K$40K

Total fees

$0

Get My Rate on Discover
Terms vary by lender2 days funding
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How to compare offers for this profile

Fair credit (580–669 FICO) means lenders see you as a moderate risk — higher than a prime borrower, lower than a subprime one. You'll qualify at most of the lenders on this page, but the rates you're offered will be higher than what excellent-credit borrowers see, typically ranging from 14% to 28% depending on the lender, your income, and the specifics of what drove your score down. The lenders shown here were filtered for $8,000 at approximately 660 FICO — if your score is below 620, focus on lenders like Upgrade, Best Egg, and Upstart, which explicitly serve lower-score borrowers. One important note: some lenders that accept fair credit still have higher rejection rates in that range, meaning pre-qualification is valuable before formally applying anywhere.

1

Look for lenders that use more than just your FICO score

Some lenders — Upstart and Upgrade in particular — consider income stability, employment history, and banking behavior alongside your credit score. If your score is suppressed by a single negative item (a medical collection, one missed payment) but your financial situation is otherwise healthy, these lenders may be more sympathetic than score-focused ones.

2

A co-signer can unlock significantly better terms

If you have a creditworthy friend or family member willing to co-sign, the loan will be underwritten at their score, not yours. This can shift you from 22% APR to 10% APR on the same loan amount. Understand that the co-signer is equally liable — if you miss payments, it damages their credit too.

3

Borrow only what you need — total cost matters most here

At fair-credit rates (15–22%), every extra $1,000 borrowed costs roughly $150–$220 in interest over 3 years. Borrow the minimum amount that solves your problem. If you can pay off the loan in 2 years rather than 3, do so — prepayment penalties are rare among these lenders.

Watch out

Some lenders that accept fair credit charge origination fees of 5–10%, which can add $400–$800 to a $8,000 loan. Always calculate the total cost of the loan (interest + fees) over the full term, not just the monthly payment — a slightly higher APR at a no-fee lender can still be cheaper overall.

Frequently Asked Questions

What's considered a 'fair' credit score for personal loan purposes?
Most lenders consider FICO scores from 580 to 669 as 'fair.' The precise cutoffs vary: some lenders call 580–619 'poor' and 620–669 'fair.' For practical purposes, if your score is between 580 and 670, the lenders on this page are the most likely to approve you and offer reasonable rates.
What APR should I realistically expect with a 620–660 credit score?
At 620–660 FICO, expect APRs in the 15–26% range at most online lenders. Credit unions sometimes offer lower rates (10–18%) to members with fair credit, especially if you have a direct-deposit relationship. The exact rate depends on your debt-to-income ratio, employment stability, and how many negative items are on your credit report.
Will applying for a loan affect my credit score if I get rejected?
A hard inquiry from a formal loan application typically reduces your score by 2–5 points, whether you're approved or rejected. Pre-qualification — which this site uses — is a soft inquiry with no score impact. Pre-qualify first, compare offers, then formally apply only with the lender you intend to move forward with.
Is it better to apply at a credit union than an online lender with fair credit?
Credit unions are often more lenient with fair-credit members and offer lower rates than most online lenders. The tradeoff is membership requirements and a slower process. If you're already a credit union member, check their personal loan terms first. If not, online lenders like Upstart and Prosper are designed to serve this credit tier.
How can I improve my credit score enough to qualify for better rates?
The fastest moves are: pay down revolving balances (lowering your utilization below 30%), dispute any inaccurate negative items on your credit report, and make every payment on time for the next 6 months. Many borrowers in the fair-credit range can move up 40–80 points within a year with consistent on-time payments and reduced utilization.