Top Personal Loans for Fair Credit in August 2023

Top Personal Loans for Fair Credit in August 2023

The Best Personal Loans for Fair Credit: Quick Cash for Every Need

Personal Loan

Are you looking for a quick way to finance your home improvement project, cover moving expenses, or plan an unforgettable vacation? A personal loan might be the answer. This type of loan allows you to borrow money and pay it back in fixed monthly installments. Your credit score plays a significant role in determining the interest rate you’ll receive. But even if your credit score is fair, there are plenty of lenders who can provide you with a personal loan.

The Best Lenders for Fair Credit

Finding the right lender for your fair credit score (defined by FICO as a score between 580 to 669) doesn’t have to be a challenge. We’ve compiled a list of the best personal loan providers who cater to borrowers with fair credit. Here are our top recommendations:

  1. PenFed Credit Union Personal Loan: Best for co-borrowers.
  2. Upgrade Personal Loan: Best for small loan amounts.
  3. Avant Personal Loan: Best for fast funding.
  4. Navy Federal Credit Union Personal Loan: Best for no fees.
  5. Happy Money: Best for consolidation loans.
  6. LendingClub Personal Loan: Best for poor credit.
  7. Upstart Personal Loan: Best for limited credit history.
  8. Best Egg Personal Loan: Best for customer service.

These lenders offer competitive rates and terms tailored to borrowers with fair credit. However, keep in mind that your interest rate may still be higher compared to borrowers with better credit scores. It’s always a good idea to explore other options, such as credit cards, which may offer lower rates despite potential fees.

Detailed Reviews of Our Top Picks

Let’s take a closer look at some of our top picks for personal loans:

PenFed Credit Union Personal Loans

PenFed Credit Union stands out for its option to add a co-borrower to your application. This feature can improve your chances of securing a better interest rate, even if you have less-than-perfect credit. However, keep in mind that membership requirements apply. The credit union primarily serves members of the military and employees of qualifying organizations. If you don’t meet these criteria, you can still join by opening a savings account with a minimum deposit of $5.

Read our complete PenFed Credit Union Personal Loan Review.

Upgrade Personal Loans

Upgrade offers a low minimum loan amount of $1,000, making it an excellent choice for borrowers seeking a small loan. If you only need a bit of cash to cover immediate expenses, Upgrade can provide a quick solution. However, keep in mind that credit unions are often the only alternative for such small loan amounts.

Read our complete Upgrade Personal Loan Review.

Avant Personal Loans

With Avant, you can expect quick access to funds. If your loan is approved by 4:30 p.m. CT from Monday to Friday, you can generally expect the funds to be deposited by the next business day. However, it’s essential to be aware of the potential high fees associated with Avant loans, including undisclosed late fees and returned payment fees.

Read our complete Avant Personal Loan Review.

Navy Federal Credit Union stands out for its lack of origination fees and prepayment penalties. This can save you money on the overall cost of your loan, as many other lenders charge these additional fees. However, it is worth noting that the credit union has lofty membership requirements, limiting eligibility primarily to military members, veterans, and employees or retirees of the Department of Defense.

Read our complete Navy Federal Credit Union Personal Loan Review.

Happy Money Personal Loans

Happy Money offers a solid minimum APR, making it an attractive choice if you have an excellent credit score. However, it’s important to keep in mind that Happy Money personal loans are specifically designed to help borrowers eliminate high-interest credit card debt. If you have a different purpose for your loan, you may want to explore other lenders.

Read our complete Happy Money Personal Loan Review.

LendingClub Personal Loans

LendingClub allows you to add a co-borrower to your application, which may improve your chances of getting a better rate, even with poor credit. However, it’s worth noting that you should expect longer funding times compared to other lenders. While you’ll typically receive your funds within two to four business days, some personal loan companies offer faster access.

Read our complete LendingClub Personal Loan Review.

Upstart Personal Loans

Upstart offers an alternative to solely relying on credit scores for loan approval. If you’ve had credit issues in the past, Upstart takes other factors into account, such as your employment and education history. However, keep in mind that Upstart only offers three-year and five-year repayment terms, which may not be suitable for borrowers on either extreme of the borrowing scale. On the positive side, there are no prepayment penalties, allowing you to pay off your loan at any time without a fee.

Read our complete Upstart Personal Loan Review.

Best Egg Personal Loans

Best Egg boasts a 95% customer satisfaction rate, supported by its stellar A+ Better Business Bureau trustworthiness score. The lender offers high-quality customer service for a positive borrowing experience. However, do keep in mind that Best Egg charges origination fees ranging from 0.99% to 5.99%, which are included in your APR. On loans with a term of four years or longer, an additional late fee of $15 may apply.

Read our complete Best Egg Personal Loan Review.

Other Lenders to Consider

While the lenders mentioned above are our top recommendations, here are a few other options to consider:

  • Rocket Loans Personal Loan: Fast funding and a competitive minimum APR. However, multiple types of fees, limited repayment terms, and inaccessibility in certain states are potential drawbacks. Additionally, the recommended minimum credit score is 650.
  • OneMain Financial Personal Loan: No minimum credit requirement, but high fees and starting interest rates make this lender a last resort option for borrowers who don’t qualify elsewhere.
  • LendingPoint Personal Loan: A low credit score minimum of 580, but limited maximum loan amount and hefty origination fees might not appeal to all borrowers.

Choosing the Best Fair Credit Personal Loan

To find the best personal loan for your fair credit score, consider several factors. While a low interest rate is important, also pay attention to any associated fees, the lender’s minimum credit score requirement, and the quality of their customer service. Ensure the lender offers loan terms that align with your needs and allows you to select a purpose for your loan. Additionally, check if prequalification is available to compare offers without impacting your credit score. Don’t forget to read individual lender reviews for more insights.

Trusting Our Recommendations: Our Methodology

We rate personal loan products based on a 1-5 scale in our reviews and guides, considering the following categories and their weight in the overall rating:

  • Interest rate: 20%
  • Fees: 20%
  • Term lengths and loan amounts: 15%
  • Funding speed: 15%
  • Borrower accessibility: 15%
  • Customer support: 7.5%
  • Ethics: 7.5%

Each category’s weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, making them the most prominent factors. While customer support and ethics are also important, they play a lesser role in determining the overall rating.

Remember that a high BBB score doesn’t guarantee a flawless relationship with a lender. Conduct thorough research and seek feedback from others who have used the company to make an informed decision.

Conclusion

If you have fair credit, don’t let that hinder your ability to secure a personal loan. Explore our top recommendations for lenders, each offering unique advantages tailored to borrowers with fair credit. Compare interest rates, fees, repayment terms, and customer reviews to find the lender that meets your specific needs. With the right personal loan, you can easily finance your next project or adventure without breaking the bank.