Personal loans for fair credit

Borrowers with fair credit typically see advertised APRs from 15.99% to 28.99%. The exact rate depends on income, existing debt, and other factors.

If the rates you see are high, consider whether you can wait and improve your credit, or whether a co-signer could help you qualify for a lower APR.

Between 630 and 689 the field narrows. Several lenders will still consider you, but APRs tend to sit in the upper half of the advertised range and origination fees are more common.

This is the band where it matters most to compare the total cost rather than the monthly payment, because a long term at a high APR can nearly double what you repay.

None of these are instant, but each one moves the APR a lender will quote someone with fair credit.

• Pay down card balances, which usually moves a fair score faster than anything else
• Consider a co-applicant if a lender allows one
• Ask whether a secured offer backed by a vehicle you own outright would price better than the unsecured one
• Borrow the smallest amount that solves the problem, over the shortest term you can afford
• Keep every payment on time for six months before applying if the need is not urgent

Most personal loans from our lending partners are unsecured and fixed rate. With no collateral involved, the lender prices the loan almost entirely on how likely it believes you are to repay. That judgment is built from your credit history, your income relative to your existing debt, how long you have been employed, and the amount and term you ask for.

Personal loans can also be secured by collateral, such as a motor vehicle. Pledging collateral can support a larger amount or a lower rate, but it puts the vehicle at risk if the loan is not repaid. Secured options vary by lender and may not be available through the lenders currently listed here.

The number that matters is the APR, not the interest rate. APR folds in the interest rate plus any origination fee, so it is the only figure that lets you line two offers up fairly. A loan quoted at a lower interest rate can easily cost more once a 6% origination fee is deducted from the money you actually receive.

• Credit history and score band: the single biggest driver of the rate you are offered
• Debt-to-income ratio: monthly debt payments measured against gross monthly income
• Loan amount and term: longer terms usually carry higher rates
• Income stability: length of employment and whether income is verifiable
• Whether the loan is secured: collateral can lower the rate a lender is willing to offer
• State of residence: not every lender lends in every state