5 personal loan lenders that accept applicants with credit scores below 670

If your credit score is less than ideal, you may feel like you face additional challenges when it comes to accessing good financial products, like the best credit cards or the best personal loans. However, there are a few lenders that actually cater to applicants with lower credit scores in the poor/fair range (669 and below for the FICO® Score model, and 660 and below for the VantageScore^® model) to help them borrow money for emergency expenses, a medical bill, debt consolidation and other financing needs.

Below, CNBC Select rounded up five of the best personal loan lenders that still accept applicants who have credit scores below 670. We looked at fees, interest rates and flexible repayment options for different credit scores. (You can read more about our methodology below.)

In the meantime, remember that if you are applying for loans — or any line of credit — with a lower credit score, you are likely to receive higher interest rates because lenders will see you as more of a "riskier" borrower. It's important to compare rates with different lenders and do your homework before signing on the dotted line to make sure you're comfortable with your new loan terms.

• Best for people without credit history: Upstart Personal Loans
• Best for borrowing smaller loan amounts: Upgrade Personal Loans
• Best for flexible terms: OneMain Financial Personal Loans
• Best if you need a co-applicant: SoFi Personal Loans
• Best for quick funding: Avant Personal Loans

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Who's this for? Sometimes, a potential borrower may have a low credit score because they have extremely limited credit activity. Other times, a lack of credit history may result in them having no credit score at all. Because of this, Upstart accepts applicants with no credit history — though this lender also looks at applicants with a FICO score of 600 or higher. Just keep in mind that if you are approved for the loan with a lower (or no) credit score, you may be subject to a higher interest rate.

You can apply for loan amounts as low as $1,000 and as much as $50,000. And while there are no penalties for paying off your balance early, Upstart does charge an origination fee (up to 12% of the amount you borrow) and late fees ($15 or 5% of the past due balance, whichever is greater).

When it comes to repaying the balance, loan terms range from 36 to 60 months, which can be appealing to borrowers who think they may need a longer time horizon to repay the entire loan.

Who's this for? Upgrade typically looks at borrowers who have fair or good credit. With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780.

Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000). The $1,000 minimum makes the loan feel a little more digestible for those who don't need to borrow too much money. This is especially important because it's generally best to only apply for what you'll need since borrowing more will result in higher monthly payments.

Also keep in mind that Upgrade personal loans have an origination fee of up to 9.99%, which is deducted directly from your loan proceeds. So, if you know you'll need $1,000, you should account for the origination fee and apply for a loan amount closer to $1,080 to cover all your bases.

Upgrade doesn't have any prepayment penalties, but it does have a late fee: If you pay late or miss a payment, you could be hit with a $10 late fee if your payment is not received in full within 15 calendar days of the due date. 

Otherwise, these loans are fast and easy to secure, and the funds should arrive in your checking account within one business day of submitting the required documents and being approved.

Who's this for? OneMain Financial offers loan options that are much less rigid compared to other lenders. This lender generally accepts applicants with at least a poor or fair credit score, but if you're worried your credit score will hurt your chances of securing a better interest rate, you may be able to submit your application with a co-applicant. Plus, borrowers can take advantage of repayment terms with a bit more flexibility compared to that of some lenders as terms range from 24 months to 60 months.

Another feature that makes this lender a little more flexible is the ability to secure your loan with collateral. Personal loans are generally unsecured debt, meaning you can borrow the money outright without having to offer up something of value. But with secured loans, a borrower essentially uses another asset as a "promise" that if they fail to repay their loan in full, the lender can seize that asset from them as collateral. Not only does OneMain Financial give you this option, but doing so also lets you potentially receive an even lower interest rate. Plus, borrowers can actually choose the date their monthly payments are due.

The origination fee with OneMain Financial is on the higher end: either a fixed fee between $25 and $500 or up to 10% of the loan amount, depending on which state you live in. And while there aren't any penalties for paying off the loan early, there is a late fee that will run you either $30 or up to 15% (depending on your state).

Who's this for? SoFi actually only considers applicants with good or excellent credit for its personal loan products. However, because this lender is very open to borrowers who need a co-applicant, it's still worth considering if your credit score is closer to the poor/fair range.

A co-applicant on a personal loan can be beneficial for someone who has damaged credit, poor credit or a credit history that's so insufficient that they likely may not be approved for the loan if they applied alone. Or, sometimes a co-applicant can be used to give qualifying borrowers with an already good credit score an extra boost for securing better interest rates.

An ideal co-applicant will have a higher credit score and higher income. These attributes tell lenders that the borrowers are more likely to be able to afford to repay the loan. The co-applicant is also financially on the hook for repaying the loan if the other co-applicant fails to make payments.

SoFi doesn't charge any late fees or early payoff fees. And, you can borrow between $5,000 to $100,000, which makes SoFi an attractive option for people who need to borrow larger amounts for bigger expenses.

You can get your loan funded the same day, or the next business day, provided you don't need to apply with additional information. Plus, when you sign up for a SoFi Personal Loan, you can join its membership platform to take advantage of a host of other perks like career counseling, financial advising and more.

Who's this for? Avant is one personal loan lender that can typically provide funding as soon as the next business day after you're approved — of course, you'll need to be sure you have all the correct information handy and that you've accurately filled out your application to make sure you can receive funding without a hitch. Avant will consider applicants with credit scores under 600, but, again, we remind you that the higher your credit score, the more likely you are to receive the lowest, best rates. This lender also offers personal loan amounts as low as $2,000 and as high as $35,000.

While there are no penalties for early payoff, there is an origination fee of up to 4.75% and a late fee of up to $25 after the 10-day grace period.

Here are some common personal loan terms you need to know before applying for one.

• Co-applicants or joint applications: A co-applicant is a broad term for another person who helps you qualify by attaching their name (and financial details) to your application. A co-applicant can be a co-signer or a co-borrower. Having a co-applicant can be helpful when you have a poor or fair credit score. If your co-applicant has a good credit score, you might be offered better terms, including qualifying for a lower APR and/or a bigger loan. However, both applicants' credit scores will be affected if you don't pay back your loan, so be sure that your co-applicant is someone you feel comfortable sharing financial responsibility with. 
• Co-signers: A co-signer agrees to help you qualify for the loan, but they are only responsible for making payments if you are unable to. The co-signer does not receive the loan, nor do they necessarily make decisions about how it is used. However, the co-signers credit will be negatively affected if the main borrower misses payments or defaults.
• Co-borrower: Unlike a co-signer, a co-borrower is responsible for paying back the loan and deciding how it is used. Co-borrowers are usually involved in decisions about how the loan is used. Some lenders will only consider two co-borrowers who share a home or business address, as this is a firm indicator that they are sharing the responsibility of money in mutually beneficial ways. Both co-borrowers' credit scores are on the hook if either one stops making payments or defaults.
• Direct payments: Some lenders offer direct payments when you select debt consolidation as the reason for taking out a personal loan. With direct payments, the lender pays your creditors directly, and then deposits any leftover funds into your checking or savings account. Until you see your account balance is fully paid off, it's best to keep making payments so that you don't get hit with additional late fees and interest charges.
• Early payoff penalty: Before you accept a loan, look to see if the lender charges an early payoff or prepayment penalty. Because lenders expect to get paid interest for the full term of your loan, they could charge you a fee if you make extra payments to pay your debt down quicker. The fees could equal either the remaining interest you would have owed, a percentage of your payoff balance or a flat rate.
• Origination fee: An origination fee is a one-time upfront charge that your lender subtracts from your loan to pay for administration and processing costs. It is usually between 1% and 5%, but sometimes it is charged as a flat-rate fee. For example, if you took out a loan for $20,000 and there was a 5% origination fee, you would only receive $19,000 when you got your funds. Your lender would get $1,000 of the loan off the top, and you'd still have to pay back the full $20,000 plus interest. It's best to avoid origination fees if possible.
• Unsecured versus secured loans: Most personal loans are unsecured, meaning they are not tied to collateral. However, if your credit score is less-than-stellar and you're finding it hard to qualify for the best loans, you can sometimes use a car, house or other assets to act as collateral in case you default on your payments. When you put an asset up as collateral, you are giving your lender permission to repossess it if you don't pay back your debts on time and in full.

To determine which personal loans are the best, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.

When narrowing down and ranking the best personal loans for fair or good credit, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders offer the ability to pay your creditors directly.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

After reviewing the above features, we sorted our recommendations by best for having no credit history, borrowing smaller loan amounts, flexible terms, applying with a co-applicant and getting secured loan options.

Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. Before providing a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more. 

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