When people face unexpected expenses or need money for big purchases, personal loans are often a go-to solution. However, individuals with fair or average credit scores don’t always have easy access to such loans.
Many lenders require high credit scores, making it harder for people with fair credit to qualify. Fortunately, Investopedia reviewed and compared 59 lenders and found six that are more open to approving borrowers with fair credit—and even offer them favorable loan terms.
After thorough research and a survey involving hundreds of borrowers, Investopedia rated Patelco Credit Union as the best personal loan provider for people with fair credit, mainly because of its flexible repayment options and wide range of loan amounts.
Top Personal Loans for Fair Credit – August 2025
You can use filters such as loan amount or estimated credit score to compare options.
| Company | APR Range | Estimated Credit Score | Loan Amount Range |
|---|---|---|---|
| Patelco Credit Union | 9.30% – 17.90% | 640 | $300 – $100,000 |
| Achieve | 8.99% – 29.99% | 620 | $5,000 – $50,000 |
| Upgrade | 7.99% – 35.99% | 580 | $1,000 – $50,000 |
| Upstart | 6.70% – 35.99% | 300 | $1,000 – $50,000 |
| Discover | 7.99% – 24.99% | 660 | $2,500 – $40,000 |
| Lake Michigan CU | 9.99% – 18.00% | 650 | $250 – $25,000 |
1. Patelco Credit Union
Best Overall | Best for Repayment Terms | Best for Co-Borrowers
Investopedia Rating: ★★★★☆ (4.6/5)
Why It’s a Top Choice
Patelco provides excellent flexibility in both how much you can borrow and how long you have to repay. Even if you only have fair credit, you may qualify for a better interest rate by applying with a co-borrower.
Highlights
- Loan Amounts: $300 – $100,000
- Terms: 6 to 84 months
- No origination fee
- Possible discount for good payment history
- Same-day funding available
Drawbacks
- Must be a member to apply
- Branches only in California
2. Achieve
Also Great for Co-Borrowers
Investopedia Rating: ★★★★☆ (4.3/5)
Why It’s Worth Considering
Achieve accepts slightly lower credit scores than Patelco, unless you’re applying for more than $35,000. If your credit isn’t strong, applying jointly can boost your chances and help you get a lower rate.
Highlights
- Loan Amounts: $5,000 – $50,000
- Terms: 24 to 60 months
- Various rate discounts available
- Direct payments to creditors
- Co-borrowers allowed
Drawbacks
- Higher loan amounts need better credit (660+)
- High origination fee (up to 8.99%)
- No small loan options (minimum $5,000)
3. Upgrade
Best for Quick Access to Money
Investopedia Rating: ★★★★☆ (4.2/5)
Why It’s a Good Option
Upgrade offers quick loan approvals and fast funding, even to borrowers with fair or lower credit. You can also lower your rate through available discounts. However, watch out for its relatively high fees.
Highlights
- Loan Amounts: $1,000 – $50,000
- Terms: 24 to 84 months
- Same or next-day funding
- Offers debt consolidation via direct payments
Drawbacks
- APR can go as high as 35.99%
- Origination fee may reach up to 9.99%
4. Upstart
Best for Very Low Credit Scores
Investopedia Rating: ★★★★☆ (4/5)
Why It Stands Out
Upstart is ideal if your credit score is below the fair range (580). While it’s not the cheapest option, it gives more people access to personal loans than most lenders.
Highlights
- Credit score requirement starts at just 300
- APR as low as 6.70%
- Loan Amounts: $1,000 – $50,000
- Terms: 36 to 60 months
Drawbacks
- High fees (up to 12% origination fee)
- Doesn’t allow co-signers or co-borrowers
- Max APR is 35.99%
5. Discover
Best for Debt Consolidation
Investopedia Rating: ★★★★☆ (4.4/5)
Why It Works Well for Consolidating Debt
Discover offers lower interest rates, no fees, and long repayment terms, making it ideal for people trying to pay off high-interest debt.
Highlights
- Loan Amounts: $2,500 – $40,000
- Terms: 36 to 84 months
- No origination or late fees
- Offers direct creditor payments
Drawbacks
- Requires a minimum credit score of 660
- Doesn’t allow co-signers or co-borrowers
- Loan amount range is somewhat limited
6. Lake Michigan Credit Union (LMCU)
Best for Small Loans
Investopedia Rating: ★★★☆☆ (3.7/5)
Why It’s Useful
LMCU is one of the few lenders that allows you to borrow very small amounts, making it a good choice for those who don’t need much money.
Highlights
- Borrow as little as $250
- No origination fee
- Loan Terms: 1 to 60 months
Drawbacks
- You need to be a member
- Limited details on its website
- APR starts higher than others
Comparison Table: Top Fair Credit Loans – August 2025
| Lender | Best For | APR Range | Origination Fee | Late Fee | Funding Time | Loan Amount | Max Term |
|---|---|---|---|---|---|---|---|
| Patelco CU | Overall, Repayment Terms, Co-Borrower | 9.30% – 17.90% | 0% | $5 or 3% of payment | Same day | $300 – $100,000 | 84 months |
| Achieve | Co-Borrower Friendly | 8.99% – 29.99% | 1.99% – 8.99% | None | 1 day | $5,000 – $50,000 | 60 months |
| Upgrade | Fast Funding | 7.99% – 35.99% | 1.85% – 9.99% | $10 | 1 day | $1,000 – $50,000 | 84 months |
| Upstart | Low Credit Score | 6.70% – 35.99% | 0% – 12% | $15 or 5% of late payment | 1 day | $1,000 – $50,000 | 60 months |
| Discover | Debt Consolidation | 7.99% – 24.99% | 0% | $0 | 2 days | $2,500 – $40,000 | 84 months |
| Lake Michigan CU | Small Loan Amounts | 9.99% – 18.00% | 0% | 4% of balance due | 1 day | $250 – $25,000 | 60 months |
What Is a Personal Loan for Fair Credit?
A personal loan for someone with fair credit is usually an unsecured loan, meaning you don’t need to offer any collateral. These loans are paid back in fixed monthly payments over a set number of months or years. You can use the funds for nearly any purpose—like paying off other debts, covering medical bills, or handling emergency expenses.
When applying, you’ll need to provide:
- Proof of income (like pay stubs)
- Social Security number (for a credit check)
- Bank account details (to receive your funds)
You might also get a lower interest rate if you allow automatic payments, which can also help you avoid late payment fees.
Who Should Consider These Loans?
If you have fair credit and are:
- Struggling with high-interest debt (consider debt consolidation)
- Facing sudden medical, tax, or moving expenses
- Looking to improve your finances over time
Then a personal loan may be a good fit. Applying with a co-borrower could improve your loan terms and approval odds.
Common Terms You Should Know
- Credit Score: A number (300 to 850) that shows how reliable you are with credit. Scores from 580 to 669 are considered fair.
- Origination Fee: A charge by the lender for processing your loan—usually a percentage of the loan.
- APR (Annual Percentage Rate): This includes your interest rate plus any fees—representing the total yearly cost of the loan.
- Joint Application: Adding a co-borrower can increase your chances of approval and may lead to better rates. Both applicants are equally responsible for the loan.
Pros and Cons of Fair Credit Personal Loans
Pros
- Fast funding (sometimes same day)
- Flexible repayment periods
- Some lenders pay your creditors directly if consolidating debt
Cons
- Higher interest rates and fees
- Limited loan options if you don’t have a co-borrower
- Credit unions may require membership to apply
How We Chose These Lenders
Investopedia analyzed 59 lenders using 45 criteria, divided into four categories:
- Loan Costs (30%)
- Borrowing Requirements (24%)
- Lender Features (24%)
- Loan Terms (22%)
They also conducted surveys with hundreds of borrowers to better understand real-life lending experiences. This helped ensure their recommendations are based on detailed, reliable, and unbiased research.
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