8 Best Loans for Fair Credit

PenFed offers loans starting at only $600, competitive rates, and a relatively low 650 credit score to qualify. PenFed is a national credit union that offers banking services and loans to members. You do need to join PenFed to qualify for a loan, but membership is free.

PenFed offers pre-qualification on all personal loans, meaning you can submit a short application and check your rate without hurting your credit score. You can even pre-qualify without being a member just to see your rate, but you do need to join to actually receive funding.

PenFed also doesn’t charge any loan fees, such as origination fees or prepayment penalties. And though co-signers are not allowed, co-applicants are, meaning you can have someone else apply with you to help you qualify. Overall, PenFed offers great loan rates, no fees, and minimal credit to receive a loan.

• Be a PenFed member
• Live in the United States
• Be the age of majority as defined by state of residence
• Be a United States citizen (PenFed does not support non-citizen permanent residents)
• Minimum credit score of 650
• Qualify based on financial history, credit history, and other factors

Upgrade offers personal loans starting at just $1,000, with a low recommended minimum credit score of just 560. This presents an opportunity for more applicants to qualify, but take note that borrowers with poor credit will tend to get higher fees and rates. But if you do have poor credit, you can apply with a co-applicant to help you qualify for a better rate.

The application process is seamless, with the ability to pre-qualify within a few minutes to see your rates and loan options. You can then complete the application online and receive your funds within a day or so. Loan terms are available from 24 months up to 84 months, and rates start as low as 8.49%.

Upgrade charges an origination fee, which is taken directly from your loan balance. The fee is up to 9.99%, which can be costly on larger loans. And there is a late fee for payments at least 15 days late, but it is only $10, which is relatively small. Overall, Upgrade makes the process of obtaining a loan simple and is a good choice for people who don’t have the best credit.

• Be a U.S. citizen or permanent resident, or living in the U.S. on a valid visa
• Be at least 18 years old (19 years old in Alabama and certain other states)
• Provide a verifiable bank account
• Provide a valid email address.
• Borrow a minimum of $1,000
• Have a recommended minimum credit score of 560
• Qualify based on credit history, credit usage, and payment history
• Apply with a qualifying co-applicant if needed

LendingPoint offers personal loans with minimal fees and low interest rates. There are no application or prepayment fees assessed, and select borrowers may qualify to have the origination fee waived as well.

Loans are available from $2,000 up to $36,500, and interest rates start at only 7.99%. Loan repayment terms are available from 24 months up to 72 months in length, and you can pre-qualify to check your rates and terms without hurting your credit score.

There is no minimum credit score needed to apply, though you can’t apply with a co-signer or co-applicant, so you’ll need to qualify on your own. LendingPoint is a good option for borrowers with fair credit looking to save on fees for smaller loans.

• Be 18 years or older
• Be able to provide a U.S federal, state, or local government-issued photo ID
• Have a Social Security number
• Have a minimum annual income of $35,000 (from employment, retirement, or some other source)
• Have a verifiable personal banking account in your name
• Not reside in Nevada or West Virginia

LightStream is part of Truist Bank and offers personal loans up to $100,000 in total. Borrowers can choose from a wide range of repayment terms (up to 12 years in length). There are no fees on LightStream loans, including no application, origination, prepayment, or late payment fees. It’s recommended that you have a minimum 660 credit score for the best chance of approval.

LightStream offers an online application process, and funds may arrive the same business day if you complete your application and verification by 2:30 p.m. ET. You can’t apply at a Truist Bank location, as LightStream is a separate company that only offers online loans.

LightStream applicants can apply with a co-borrower, further increasing the chances of qualifying and getting a better rate. But LightStream doesn’t offer pre-qualification, which means you need to submit a completed application to see your loan rates and terms.

If you are looking for a large personal loan, LightStream is a great option.

• Be at least the age of majority in your state
• Be a U.S. citizen, eligible permanent resident, or non-permanent resident alien
• Reside in one of the 50 U.S. states or Washington, D.C. 
• Minimum recommended credit score of 660
• Qualify based on financial history, credit score, and other factors

Discover offers personal loans with low interest rates to applicants, with a recommended minimum 660 credit score. Discover loans can be repaid for 36 months up to 84 months, and there are no fees for applying for or funding your loan. Rates also remain the same, no matter which term length you apply for.

Discover offers loans starting at $2,500 up to $35,000, and rates start as low as 6.99%. This interest rate is lower than many lenders, and even the maximum of 24.99% isn’t that high compared to others. Discover loans are great for debt consolidation or other small to medium-sized needs.

Discover doesn’t allow co-signers or co-applicants on personal loans, so you must have a fair credit score and income to qualify on your own. And though there are no origination or application fees, Discover does charge a $39 late payment fee, even if you are only one day late.

• Be a U.S. citizen or permanent resident
• Be at least 18 years old
• Have a minimum household income of at least $25,000
• Qualify based on financial history, credit score, and other factors

Rocket Loans offers same-day funding on personal loans, allowing you to borrow up to $45,000 quickly. If your application is completed and the promissory note is signed by 1 p.m. Eastern Time, funds may be deposited into your account that same day.

Rocket Loans offers loans to borrowers with credit scores as low as 580, and rates start at 8.416%, although people with worse credit typically won’t get the best rates. Loans are available starting at $2,000, and borrowers can only choose between 36-month or 60-month repayment terms.

Rocket Loans does charge up to a 7% origination fee, and rates can be as high as 29.99%. Rocket Loans is a great choice for borrowers that need funds quickly, but keep an eye on the fees and compare overall costs to other lenders.

• Be at least 18 years old
• Be a U.S. resident
• Monthly income is reviewed
• Tax forms may be reviewed
• Debt-to-income ratio (DTI) is reviewed
• Overall credit history and credit score are reviewed

Achieve (formerly Freedom Plus) offers debt consolidation personal loans to borrowers with fair credit, only requiring a credit score of 620 to qualify. Loans can be funded in as soon as two business days, and there are several loan discounts available. There is a discount for applying with a co-applicant, and even a discount if you allow Achieve to pay your creditors directly when consolidating your debt.

Loans are available from $5,000 up to $50,000 in total, and rates start at 7.99%. Multiple debts can be consolidated into a single loan, helping lower your interest rates and simplify your monthly payments.

Achieve charges an origination fee, ranging from 1.99% up to 6.99%, so it is important to calculate the cost before completing your application. You can pre-qualify for the loan in just a few minutes online to see your rates and loan term options.

If you are hoping to consolidate your debt, Achieve is worth a look.

• Be a U.S. citizen or permanent resident
• Be at least 18 years old
• Have a valid Social Security number
• Provide proof of income and employment
• Provide proof of identity
• Qualify based on financial history, credit score, and other factors

Navy Federal is a credit union that is open to all military members and their families. Navy Federal offers personal loans with low rates, repayment terms up to 15 years in length and no origination fees. There is no minimum credit score required to apply, although your credit history will play a role in loan approval.

Navy Federal offers a few different loan options, including personal loans, home improvement loans and even secured loans. While shorter-term loans offer low rates (under 8% APR), longer term loans do charge a higher APR (over 14% for terms longer than three years).

Navy Federal also requires higher minimums for longer-term loans, with a $25,000 minimum for loan terms over five years, and a $30,000 minimum for loans over seven years. And prequalification isn’t available, so you will need to complete a full application to see your rates.

Navy Federal is a great option for military members to access personal loans, even with poor credit. But you must be a Navy Federal member to apply.

• Be a Navy Federal member
• Be at least the age of majority in your state
• Be a United States citizen, eligible permanent resident, or non-permanent resident alien
• Reside in one of the 50 U.S. states or Washington, D.C. 
• Qualify based on credit history, income, and other financial factors