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Best Personal Loans for Fair or Average Credit of 2024

Review Updated
Matt Frankel, CFP®
Author: Matt Frankel, CFP®
Matt Frankel, CFP®
Matt Frankel, CFP®
Writer, Analyst

Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for Motley Fool Money and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column for the Motley Fool ("Ask a Fool") that is syndicated in USA Today, and his work with Motley Fool Money has also been syndicated to MSN and Yahoo! Finance. He has been regularly featured on Fox Business and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.

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Ashley Maready
Fact Checked: Ashley Maready
Ashley Maready
Ashley Maready
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Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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There is no formal definition, but most experts agree that a fair or average credit score ranges from 580 to 669. If that's where your credit score currently stands and you're looking for a personal loan, you've come to the right place. Whether you're looking to make home repairs or pay off medical bills, a personal loan can help you accomplish your goal.

But first, you'll need to find a loan that meets your needs. The following lenders offer some of the best personal loans for borrowers with credit scores between 580 and 669.

Best personal loans for fair or average credit

As of Oct. 01, 2024
Lending Partner Min. Credit Score Loan Amounts Apr Range Next Steps
Award Icon 2025 Award Winner
Upstart
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Min. Credit Score: 300 Loan Amounts: $1,000 - $50,000 APR Range: 7.80% - 35.99%
Check Rates for Upstart
Avant
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Min. Credit Score: 580 Loan Amounts: $2,000 - $35,000 APR Range: 9.95% - 35.99%
Check Rates for Avant

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Upgrade
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Min. Credit Score: 580 Loan Amounts: $1,000 - $50,000 APR Range: 9.99%- 35.99% APR
Check Rates for Upgrade

Powered by Credible
LendingPoint
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Min. Credit Score: 620 Loan Amounts: $2,000- $36,500 APR Range: 7.99% - 35.99%
Read Review
Disclaimers

Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 9.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.

*Upstart Loan Disclaimer

The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.

Best for flexible lending requirements

Award Icon 2025 Award Winner

Upstart

Great for: Reducing high interest debt

Check Rates for Upstart
Logo for Upstart
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Check Rates for Upstart
Minimum Credit Score
300
Loan Amounts
$1,000 - $50,000
APR Range
7.80% - 35.99%
Term Length
36 or 60 months

Upstart is a best personal loans lender for fair or average credit because it offers more flexible lending requirements than many other lenders. We like that applicants need only a 580 credit score to apply and the minimum loan amount is just $1,000. Most loans fund in one business day.

  • Accepts borrowers with low credit scores
  • Wide range of loan amounts
  • No prepayment penalty
  • Payment grace period
  • High upper-range interest rate
  • High origination fees
  • No cosigner allowed
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Best for longer repayment periods

Avant

Great for: Borrowers with poor credit scores

Check Rates for Avant

Powered by Credible

Logo for Avant
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Check Rates for Avant

Powered by Credible

Minimum Credit Score
580
Loan Amounts
$2,000 - $35,000
APR Range
9.95% - 35.99%
Term Length
12-60 months

We chose Avant as a best personal loan lender for fair or average credit because applicants can apply here with a credit score of just 580. That's lower than what many other lenders require. The minimum loan amount is just $2,000 and borrowers can extend payments out for as long as 60 months.

  • Lower credit score requirements
  • Relatively low minimum loan amounts
  • Fast funding
  • No prepayment penalties
  • Higher APRs
  • Administration fee of up to 4.75%
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Best for using collateral to lower interest rates

Upgrade

Great for: Debt consolidation and fair credit

Check Rates for Upgrade

Powered by Credible

Logo for Upgrade
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Check Rates for Upgrade

Powered by Credible

Minimum Credit Score
580
Loan Amounts
$1,000 - $50,000
APR Range
9.99%- 35.99% APR
Term Length
24 - 84 months

Upgrade makes our list of best personal loans for fair or average credit. You can apply with a credit score of at least 620 (and in some cases, lower credit scores are accepted). There are rate discounts for debt payoff, auto payments, and if you use your vehicle as collateral.

  • Allows borrowers with poor credit to get approved
  • No prepayment fees
  • Multiple discounts
  • Low minimum loan amount
  • Wide variation in origination fees
  • High interest rates
Read Full Review

Best for poor credit history

LendingPoint

Great for: Borrowers with poor credit scores

Read Review
Logo for LendingPoint
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Read Review
Minimum Credit Score
620
Loan Amounts
$2,000- $36,500
APR Range
7.99% - 35.99%
Term Length
24 - 72 months

We selected LendingPoint for best personal loans for fair or average credit because you don't need good or excellent credit to apply. You can borrow up to $35,000 so long as your credit score is at least 585. Some borrowers turned away by other lenders can get a loan here.

  • Soft credit check
  • Low minimum loan amount
  • No prepayment penalty
  • Fast funding
  • Instant approval
  • Higher upper-end APR
  • Expensive origination fee

How to qualify for a personal loan with fair credit

There are a few things you can do to give yourself a leg up on your loan application.

Ways to increase your chances of qualifying for a personal loan with fair credit include:

Increase your credit score

Two ways to quickly improve your credit score: check your credit reports for mistakes and pay down debt. Methods that take a bit longer include making on-time payments, avoiding applying for new credit, and consolidating debt.

Consider getting a cosigner

If your credit score or income is low, or your debt level is high, you might have trouble getting approved for a loan. Applying with a creditworthy cosigner improves your chances of getting approved.

Shop around

If your application is denied once or twice, don't get discouraged. Different lenders have different requirements for loan approval. Get prequalified with several lenders to increase your chances of getting approved. If you're having a lot of trouble, you can also look at personal loans for bad credit -- it might be easier for you to get approved for a bad credit loan.

Need to build credit? Check out our list of the Best Credit Cards For Bad Credit.

How to apply for a personal loan

Once you're ready to apply for a personal loan, follow these steps to get a loan:

Submit your loan application

You'll need to provide some personal details, like your Social Security number, income information, and address.

Wait for a decision

How long it takes to get a loan depends on the lender -- and, sometimes, the borrower. Sometimes, you'll hear back the same day or the next day. Other times, you may need to wait a couple days to hear back.

Agree to the loan terms

Make sure the loan terms meet your needs. Then, formally agree to pay back the loan according to the terms.

Receive loan funds

At this point, your lender will give you the loan funds.

If your loan application is denied, don't give up hope. Check our guide on how to get approved for a personal loan to find out the best next steps for your situation.

What is a fair or average credit score?

A fair credit score is generally in the 580-669 range. The average credit score for a U.S. consumer varies a bit from year to year, but is generally around 700.

FICO® Scores are the most commonly used credit scores. These scores range from 300 to 850, with higher scores being better. There's no official cutoff point that determines what is considered good credit, fair credit, poor credit, and so on, but FICO does offer some guidelines:

If your FICO® credit score is in this range… ...then your score is generally considered…
800-850 Exceptional credit
740-799 Very good credit
670-739 Good credit
580-669 Fair credit
579 or lower Poor credit
Data source: www.myFICO.com

We'll use FICO's definition and say you have fair credit if your FICO® Score is in the 580-669 range. That means if your credit score is 600, you have fair credit. The above best personal loans for fair credit are a great place to start looking for a personal loan if your credit score falls in this range.

If your credit score is well under 600, then you may want to consider some of the best personal loans for bad credit instead. A bad credit loan can also help you raise your credit score. If you make your monthly payments on time, you can eventually qualify for a fair credit loan.

If you aren't sure what your credit score is, there are several websites where you can check it before applying for a personal loan. You may be able to access a free FICO® Score through certain credit card issuers if you're a cardholder. My personal favorite (although it isn't free) is myFICO, which is run by the Fair Isaac Corporation -- the company that created the FICO® Score. I've been a customer for well over a decade and love the comprehensive score reports and tools I have access to.

Choosing the best personal loan for credit scores ranging from 580-669

When you're looking for the best personal loans for fair credit, make sure you shop around. Find out which bank or lender offers an interest rate and loan term that works for you. You can also compare loan amounts between different personal loan companies.

There are four important parts of a loan offer every borrower should compare before agreeing to work with a personal loan business.

Loan amounts offered

How much do you need to borrow? Some lenders specialize in funding larger loans, while others primarily offer small or mid-range loans. Knowing how much you need to borrow ahead of time can help you narrow down your list of lenders.

Interest rate and other fees

The interest rate is the fee your lender charges you for the service of lending you money. In general, it's good to look for low-interest personal loans.

An origination fee is something you pay the personal loan company for the service of processing your loan application and funding your loan. A prepayment penalty is a fee you'll pay if you pay off your loan before the loan term ends. The best personal loans for fair credit won't have these fees, or will not charge much for these services, although with fair credit it can be difficult to find a personal loan without an origination fee.

When you're comparing loans, look at each loan's annual percentage rate (APR). The APR combines interest with other fees to give you the true, total cost of getting a loan.

Repayment term

If you repay your fair credit loan over a long period of time, your monthly payments will be lower. However, you'll end up paying more in interest over the life of the loan. If you instead get a loan with a short repayment term, you'll have a higher monthly payment -- but you'll pay less in interest long term.

Missing loan payments can hurt your credit score, so it's important to pick a loan term and monthly payment that fits your budget. But if you can repay the loan quickly, you'll save yourself hundreds (or thousands) in cash by the time the loan term is up.

Before you look at loans, look at your budget. What sort of loan payments can you afford? This will help you narrow down possible loans to ones you can afford. For example, if you need to borrow a large amount, but you can't afford higher payments, you might want to stretch out repayment over several years. If you can afford bigger payments, you might want a shorter loan term.

Secured or unsecured loan

Also notice whether the loan you're interested in is a secured personal loan or unsecured personal loan. If you're approved for a secured personal loan, you'll need to provide collateral (like a savings account). The lender can take this collateral if you don't make payments. An unsecured personal loan won't require collateral.

TIP

Budgeting for loan payments

Before you look at loans, look at your budget. What sort of loan payments can you afford? This will help you narrow down possible loans to ones you can afford. For example, if you need to borrow a large amount, but you can't afford much in repayments, you might want to stretch out repayment over several years. If you can afford bigger payments, you might want a shorter loan term.

Get prequalified for a personal loan

What's the best way to find a fair credit personal loan? Get prequalified with many different personal loan lenders.

Prequalification doesn't hurt your credit score, and isn't a commitment to work with one specific lender. Prequalification is an opportunity for lenders to look at your credit history and offer you personalized fair credit loan offers.

Here are three steps to get prequalified for a personal loan with fair credit:

  1. Start the lender's prequalification process by giving the lender some basic information.
  2. Wait for the lender to look into your financial history and ensure you meet its requirements.
  3. Find out the types of loans and terms you'll probably qualify for with that lender.

The loan term and interest rate you're offered will differ from one fair credit lender to the next. If you really want to find the best personal loans for fair credit, you'll need to look at more than one loan option. Every time you're prequalified for a fair credit loan, you can add another loan offer to your list of options.

Lending Partner Min. Credit Score Loan Amounts APR Range Best For
Upstart 300 $1,000 - $50,000 7.80% - 35.99% Reducing high interest debt
Avant 580 $2,000 - $35,000 9.95% - 35.99% Borrowers with poor credit scores
Upgrade 580 $1,000 - $50,000 9.99%- 35.99% APR Debt consolidation and fair credit
LendingPoint 620 $2,000- $36,500 7.99% - 35.99% Borrowers with poor credit scores

FAQs

  • Yes. Before applying, though, get prequalified with multiple lenders. When you get prequalified, a lender will tell you whether you'll qualify for a loan (and what terms you can expect). This step doesn't hurt your credit score and can ensure you only apply for a loan you'll likely be approved for.

  • Yes. There are personal loans available for those with credit scores between 580 and 669, as well as options available for those with lower credit scores. If you're not sure what your credit score is, you can request it from several different consumer credit monitoring services, and many credit cards provide free FICO® Score access.

  • The ideal personal loan combines a low interest rate, reasonable repayment terms, and low fees. Each of these factors into your monthly payment, so look at these parts of your loan offer carefully before agreeing to a fair credit loan.