By Pavel Stich / COPYWRITER & SEO SPECIALIST
Last Updated: December 2025
If you have a credit score between 580 and 669, you likely feel stuck in the financial “middle.” You are not a “subprime” borrower with a history of defaults, yet traditional banks like Chase or Citibank often deny your applications, reserving their capital for those with “Excellent” credit (740+).
Applying does NOT affect your credit score!
This is the “Fair Credit” zone, and in late 2025, it is one of the most dynamic segments of the US lending economy.
Millions of Americans fall into this category. Perhaps you missed a few payments three years ago, or maybe your credit utilization is simply too high. Whatever the reason, the good news is that the fintech revolution has bridged the gap. There are now reputable, direct lenders specifically designing products for the 600-660 FICO range.
In this definitive guide, we have tested and analyzed over 20 lenders to identify the Best Personal Loans for Fair Credit. We prioritized transparency, reasonable fees, and, most importantly, legitimate approval odds for this specific credit tier.
Note: This article focuses specifically on the 580-669 range. If your score is below 580, please visit our guide on Best Personal Loans for Bad Credit. If you want a general market overview, check our Personal Loans Guide 2025.
The Top 7 Personal Loans for Fair Credit: December 2025
We have selected these lenders because they look beyond the raw FICO number. They analyze your cash flow, employment stability, and payment trends.
| Lender | Best For… | Est. APR Range | Min. Credit Score | Origination Fee |
| 1. Upgrade | Overall Best for Fair Credit | 8.49% – 35.99% | ~580 | 1.85% – 9.99% |
| 2. LendingPoint | The “Near-Prime” Specialist | 7.99% – 35.99% | ~600 | 0% – 8% |
| 3. Upstart | Short Credit History | 7.80% – 35.99% | None (AI Model) | 0% – 12% |
| 4. LendingClub | Flexible Co-Borrowers | 9.57% – 35.99% | ~600 | 3% – 8% |
| 5. Prosper | Peer-to-Peer Model | 8.99% – 35.99% | ~640 | 1% – 5% |
| 6. Best Egg | Established History (640+) | 8.99% – 35.99% | ~600 | 0.99% – 8.99% |
| 7. Avant | Lower End (580-600) | 9.95% – 35.95% | ~580 | Up to 4.75% |
In-Depth Analysis: Who Should You Choose?
Choosing a lender in the fair credit range requires strategy. Unlike “Excellent” credit borrowers who just look for the lowest rate, you must balance the APR with the Approval Odds.
1. Upgrade: The Market Leader for Fair Credit
Best For: Borrowers looking to consolidate debt and improve their credit health.
Upgrade has firmly established itself as the go-to lender for the 580-660 demographic. They understand that fair credit borrowers are often reliable payers who just have high credit card balances.
Why it wins:
Upgrade offers a unique “Rate Discount” if you enable direct pay. This means if you let Upgrade send the loan funds directly to your credit card issuers (Visa, Amex, etc.) to pay off debt, they lower your interest rate and increase your approval odds.
- Loan Amounts: $1,000 – $50,000
- Funding Speed: Within 1 business day.
- The Catch: Like most fair credit lenders, they charge an origination fee (deducted from the loan proceeds).
Applying does NOT affect your credit score!
2. LendingPoint: The “Proprietary Score” Expert
Best For: Scores between 600 and 650.
LendingPoint calls themselves the lender for the “Near-Prime.” They do not just pull your FICO score and make a decision. They use a proprietary scoring model that looks at your financial track record over a shorter timeframe. If you had financial trouble two years ago but have been perfect for the last 12 months, LendingPoint rewards that upward trend.
Why it wins:
They offer extreme flexibility. You can often choose your payment due date or choose between bi-weekly or monthly payments to match your paycheck.
- Loan Amounts: $2,000 – $36,500
- Funding Speed: As soon as the next business day.
- The Catch: Not available in all 50 states (check their map for 2025).
3. Upstart: The AI Revolutionary
Best For: Younger borrowers or those with “thin” files.
We mention Upstart frequently because their technology is genuinely different. Upstart uses artificial intelligence to underwrite loans. They look at your education (college degree), area of study, and job history.
Why it wins:
If your credit score is 620 simply because you haven’t had credit for very long, Upstart is likely your best bet. Their model approves 44% more applicants than traditional models.
- Loan Amounts: $1,000 – $50,000
- Funding Speed: Instant automated approvals are common.
- The Catch: If the AI deems you “high risk,” the origination fee can be steep.
4. LendingClub: The Co-Borrower Champion
Best For: Borrowers who want to add a spouse or partner to the loan.
LendingClub (now a fully chartered bank) invented the online lending space. For fair credit borrowers, their strongest feature is the ability to apply with a co-borrower.
Why it wins:
If your score is 600 but your spouse has a score of 720, applying together through LendingClub can significantly lower your interest rate and increase your loan amount. Furthermore, taking a joint loan can help both of you build credit history.
- Loan Amounts: $1,000 – $40,000
- Funding Speed: roughly 48 hours.
- The Catch: You must pay a membership fee if you pay by check (avoid this by using auto-pay).
5. Prosper: The Peer-to-Peer Option
Best For: Borrowers who have been rejected by banks.
Prosper operates as a peer-to-peer marketplace. Investors fund your loan. While this sounds complex, for you (the borrower), it works just like a standard loan.
Why it wins:
Prosper has a very specific niche for scores around 640. They offer fixed rates and no prepayment penalties. If you plan to pay the loan off early to save interest, Prosper is a great vehicle for that.
- Loan Amounts: $2,000 – $50,000
- Funding Speed: 3 to 5 days (slower than Upstart).
- The Catch: Funding isn’t guaranteed instantly; investors must commit to your loan, though this happens quickly in 2025.
What Does “Fair Credit” Actually Mean in 2025?
Understanding where you stand is half the battle. FICO scores range from 300 to 850. The “Fair” category typically spans 580 to 669.
- 580 – 619: This is the lower end. You are on the border of “Bad Credit.” You will face higher origination fees (4% – 8%) and APRs near 25-30%.
- 620 – 669: This is the “sweet spot” of fair credit. You have passed the critical 620 threshold that many mortgage lenders and serious banks use as a cutoff. In this range, you can find APRs between 15% and 22%.
Why is your score here?
Usually, fair credit is the result of:
- High Utilization: Your credit cards are near their limit (most common).
- Age of Credit: You haven’t used credit long enough.
- Old Mistakes: A missed payment from 2+ years ago that is fading but still visible.
Applying does NOT affect your credit score!
Critical Strategy: Secured vs. Unsecured Loans
If you are struggling to get approved with a score of 590 or 600, you have a powerful card to play: Collateral.
Unsecured Loans
These are standard. The lender trusts your promise to pay.
- Pros: No risk to your property.
- Cons: Higher interest rates; stricter approval for fair credit.
Secured Loans
You pledge an asset (usually your car or a savings account) to back the loan.
- Pros: Much easier to get approved with a 580-600 score. Rates are often 5-10% lower.
- Cons: If you default, the lender can take your car or savings.
- Who offers them? Upgrade and Best Egg both offer excellent secured options for fair credit borrowers.
What Reddit Says: The “Real Talk” on Fair Credit
As part of our research, we analyze community sentiment on platforms like Reddit (r/PersonalFinance and r/Loans) to see what real users are experiencing in 2025.
The Consensus:
- Avoid “Tribal Lenders”: Redditors frequently warn against lenders operating from sovereign tribal land, as they are immune to state usury laws and can charge 400% APR. Stick to the state-licensed lenders listed in this article.
- Credit Unions are King: For fair credit, local Credit Unions often beat online lenders. However, they require you to visit a branch and the process is slower.
- Upgrade is a Favorite: Many users with scores around 620 report success with Upgrade, specifically praising their user interface and transparency regarding fees.
The Economics of a Fair Credit Loan: Realistic Expectations
It is vital to be realistic. You will not get the 7% APR advertised on TV. That is for people with 800 scores.
For a 640 Credit Score in 2025:
- Expected APR: 17% – 24%
- Origination Fee: 3% – 6% of the loan amount.
- Loan Term: 3 to 5 years.
Example:
If you borrow $10,000 at 18% APR for 3 years:
- Monthly Payment: ~$361
- Total Interest Paid: ~$3,015
- Origination Fee (5%): $500 (You receive $9,500).
Is this expensive? Yes. But if you are using this loan to pay off credit cards with 29% APR, you are saving significant money.
Answering Your Key Questions
We receive hundreds of emails from readers. Here are the definitive answers to the most specific questions regarding fair credit.
How much of a personal loan can you get with a 600 credit score?
With a 600 FICO score, the loan amount is typically capped by your income, not just your score.
- Realistic Range: $2,000 to $10,000.
- The Upper Limit: If you have a high income (e.g., $80k/year) and low existing debt, lenders like Upgrade may approve up to $20,000. However, borrowing more than $20,000 with a 600 score is difficult without a secured loan or a co-signer.
What credit score is needed for a $10,000 personal loan?
To borrow $10,000 unsecured, lenders generally look for:
- Minimum Score: 600 – 620.
- Income Requirement: Stable employment with monthly income of at least $3,000.
- If your score is 640+, getting $10,000 is relatively easy with lenders like LendingPoint or Best Egg.
- If your score is below 600, you may be offered a smaller amount first (e.g., $5,000) to prove your reliability.
Can someone with a 500 credit score get a loan?
We must be honest: It is very difficult.
A 500 score falls deep into “Poor” territory. Most reputable personal loan lenders (including Upgrade and Best Egg) have a hard cutoff around 560-580.
Your Options at 500:
- Secured Loans: OneMain Financial is a viable option here, but interest rates will be high.
- Credit Union PALs: Payday Alternative Loans from federal credit unions are capped at 28% APR and are designed for this situation.
- Avoid: Do not take a payday loan. It will trap you in debt forever.
Can I get a personal loan with a 650 credit score?
Yes, absolutely.
A 650 score is a strong “Fair” score, bordering on “Good.”
- You qualify for: Almost all online lenders (SoFi might still be tough, but Upgrade, LendingClub, and Prosper will compete for your business).
- Advantage: You should likely avoid subprime lenders (like OneMain) because you qualify for better rates at prime-adjacent lenders. You should aim for an APR under 20%.
Frequently Asked Questions (FAQ)
1. What is the difference between a hard pull and a soft pull?
This is crucial for shopping around.
- Soft Pull: Occurs when you check your rate (“Pre-qualify”). It does not hurt your credit score. All lenders listed in this article offer this.
- Hard Pull: Occurs when you sign the final loan agreement. This usually drops your score by 5 points temporarily.
- Strategy: You can do 10 soft pulls to compare rates with zero damage. Do this before choosing one lender for the hard pull.
2. Are online lenders safe?
Yes, provided you stick to established companies. The lenders we review (Upgrade, LendingClub, etc.) are public companies or bank-chartered institutions regulated by US federal law. They use 256-bit encryption to protect your data. Always check that the website URL begins with https://.
3. How can I lower my interest rate?
If the offers you receive are too expensive (e.g., 30% APR), try these steps:
- Add a Co-signer: A co-signer with good credit is the #1 way to drop your rate.
- Lower the Term: Choosing a 2-year repayment instead of 5 years often lowers the rate.
- Show More Income: Ensure you are including all household income (spousal income, side hustles) if the application allows it.
Final Thoughts: Moving from Fair to Good
Getting a personal loan with fair credit is not just a transaction; it is a stepping stone.
By taking a loan from a reporter lender like Upgrade or LendingPoint and making on-time payments, you are adding positive data to your credit file every month. Many borrowers find that after 12 to 18 months of managing a fair credit loan, their score has migrated into the 700s, unlocking the door to prime rates and premium credit cards.
Ready to see your offers?
Checking your rate is free and takes less than 2 minutes. We recommend comparing at least three lenders to ensure you aren’t leaving money on the table.
- Check Rates at Upgrade (Best for 580-660)
- Check Rates at Upstart (Best for Thin Credit)
- Back to Main Guide: Personal Loans Guide 2025
Applying does NOT affect your credit score!
Disclaimer: Cashlendy.com is an independent review site. We may receive compensation from the companies mentioned, which helps support our writers. This does not influence our recommendations. Interest rates and terms are subject to change.
