- Scores of 630–689 averaged an estimated 27.38% APR on marketplace offers (NerdWallet, Nov. 2026), nearly double the average for excellent credit.
- Fair-credit borrowers are more likely to be charged origination fees, so compare APRs, not interest rates.
- Credit unions, secured loans and co-borrowers can bring your cost down.
- Only accept a loan with an APR below 36% and a payment you can afford every month.
“Fair” credit usually means you’ve had a few late payments, high card balances, or a short credit history. Lenders will still work with you, but the price of borrowing rises quickly in this range. The goal is to borrow only what you need, at the lowest APR you can find, on a payment you can keep up with.
What APR to expect with fair credit
| Score range | Estimated average APR |
|---|---|
| 720–850 (excellent) | 15.10% |
| 690–719 (good) | 19.49% |
| 630–689 (fair) | 27.38% |
| 300–629 (bad) | 44.02% |
Moving up just one tier, from fair to good, cut the average APR by about eight percentage points in this data. That’s why small credit improvements before you apply can be worth more than any rate discount.
Representative cost example
Example: $5,000 over 36 months at 27.00% APR = about $204.13 per month, $2,348.54 in total interest, and $7,348.54 repaid in total. At 20% APR over 24 months, the same $5,000 costs about $254.48 a month but only $1,107.50 in interest.
How to qualify for a better rate
Pay down revolving balances
If your cards are near their limits, high utilization may be what’s keeping you in the fair tier. Even partial pay-downs before your statement date can help your score.
Apply with a co-borrower or co-signer
A person with stronger credit and income can help you qualify for a lower APR. They take on equal legal responsibility for the debt, and missed payments hurt both of your credit reports.
Try a credit union
Federal credit unions are generally capped at an 18% interest rate on most loans, and they may weigh your membership history, not only your score. Some also offer “credit builder” loans.
Consider a secured personal loan
Some banks and credit unions let you secure a loan with a savings account, certificate of deposit or vehicle. Collateral can lower the rate, but you can lose the asset if you don’t repay.
Borrow less, for less time
Every extra dollar and month costs more at a high APR. Try our personal loan calculator to see how much a shorter term saves.
Fees to watch with fair credit
- Origination fees: often charged to fair-credit borrowers. A 6% fee on $5,000 means you receive $4,700 but repay $5,000 plus interest.
- Late fees: set up autopay to avoid them and to protect your score.
- Add-on products: decline optional credit insurance or “debt protection” unless you’ve compared its cost.
Is a personal loan right for you?
A loan at a fair-credit APR can still save money if it replaces credit card debt at a higher rate. Use our debt consolidation calculator to compare. But if the loan would only cover regular monthly bills, or if the payment would strain your budget, consider talking to a nonprofit credit counselor first.
If your score is below 630, see personal loans for bad credit under 36% APR. If you’re close to 690, see personal loans for good credit.
Frequently asked questions
Can I get a personal loan with a 650 credit score?
Yes. Many online lenders and credit unions approve applicants in the 630–689 range, though rates are higher than for good or excellent credit.
What APR is typical for fair credit?
NerdWallet’s marketplace data estimated an average APR of 27.38% for scores of 630–689 in November 2026.
How can I get a lower rate with fair credit?
Lower your credit card balances, borrow less, choose a shorter term, apply with a creditworthy co-borrower, or check credit unions, which are often limited to an 18% interest rate cap.