Best personal loan rates for January 2026
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Best personal loans
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Our team researched the best personal loan options available so you can compare lenders in one place.
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Fill out a quick form to be matched with lenders that meet your needs. The details you provide are for prequalification purposes only and will not impact your credit score.
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How to get a personal loan with Bankrate
When you compare rates with Bankrate's selection of top lenders, start by assessing what's most important to you in a personal loan. Ask yourself these questions:
- How fast do you need the funds? Some lenders offer funds the same day you apply. Others may take several business days.
- How quickly do you want to pay the loan off? Can your budget handle the payment on a two- or three-year repayment term? Or is your goal to have the lowest possible payment with a longer term?
- Is the loan part of a broader financial plan? Are you focused on increasing your credit scores by consolidating credit card debt? Are there home improvements that could boost your value without tying up your home's equity?
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Check your credit scores.
Your credit score has the most impact on the personal loan rate you’re offered: The higher your score, the lower your APR will generally be.
You can track your score free of charge in some cases, via your financial institution, the credit bureaus or a third-party service. If your score needs work, you may want to wait to apply if it’s not in tip-top shape.
One shortcut is to consider a joint personal loan with a co-applicant.
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Pick an affordable repayment term.
Being realistic about how much personal loan you can afford can save you money and stress down the road. Use a personal loan calculator to get started — it can illustrate how different terms, rates and fees could impact your budget.
Next, create or update your budget to determine how much of your cash-flow you could reasonably afford to put toward loan repayment. Once you know your ideal monthly payment amount, you can aim for a certain APR and term.
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Get prequalified.
Choose lenders that allow you to prequalify for a personal loan so you can compare rates without damaging your credit scores. You can start your prequalification application with lenders on this page that partner with Bankrate by clicking “See offers” and filling out a short form. You can also apply for prequalification from a lender's website.
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Compare requirements, APRs and fees with at least three lenders.
You can begin your search with lenders you prequalify with through Bankrate, or visit different lenders' websites if you don't find the terms you are looking for. Watch for fees — some lenders charge origination fees of more than 10% of the amount you borrow.
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Finalize your loan.
If you see an offer you like on Bankrate, click "Continue" to complete a full application. Lenders may require pay stubs, tax documents or other additional personal loan documents to prepare your final loan documents. Review the final terms of your loan to make sure the fees and APR match your expectations.
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Get your funds and start making payments.
Once you sign the loan agreement, some lenders may be able to fund your loan within one business day. Consider signing up for automatic payments to make repayment easier and take advantage of an APR discount, if your lender offers it.
When is the right time to get a personal loan?
The best time to get a personal loan is when you have a solid, predictable income and want a definite payoff date for the money you borrow. The economy can also impact whether you can and should get a personal loan.
Personal loan rates hinge on two things: the health of the economy and the strength of your credit. Borrowers with top-notch credit get the best deals, and if you have a strong score, you’re likely to land a much lower rate than the national average. Lenders, however, decide how much credit they’re willing to extend. Job losses or fears of a recession can cause them to quickly pull back, making it even harder to qualify.Sarah Foster, Principal U.S. Economy Reporter
However, Foster warns that movements from the Federal Reserve don't always translate to lower rates. "Rate cuts from the Fed don’t always mean cheaper borrowing costs, and personal loan rates prove it," Foster says. "Since September 2024, the Fed has cut rates by more than a full percentage point, yet the average personal loan rate has slipped just 15 basis points, Bankrate data shows. That’s because demand for personal loans tends to be inelastic, with a similar pool of applicants seeking them out regardless of where the Fed stands."
With that in mind, you should base your decision on whether to borrow a personal loan on your own financial goals and needs, rather than what the Fed is doing. Here are a few scenarios when a personal loan makes sense:
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Consolidating high-interest-rate credit cards.
Average rates on personal loans are nearly 8 percentage points lower than average credit card rates. That could save you a bundle in interest charges. A bonus: Your credit score could improve because of the drop in your credit utilization ratio.
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You need money fast for an emergency
Personal loans aren't secured, and approval typically involves little more than proof of a job and address, a qualifying credit score and I.D. Some lenders even offer same-day funding.
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You're avoiding or don't qualify for secured loan financing.
Whether you're a homeowner wanting to make improvements or a lake lover buying an older used boat, a personal loan can give you the funds you need without tying up your asset.
Foster adds, "Improving your credit score can do more to get you a better rate than anything the Fed does. Pay your bills on time, use less than 30% of your available credit and check your credit report for errors. For many households, personal loans can be a valuable safety net between an unexpected expense and costly credit card debt."
Personal loans vs. credit cards
Still not sure whether to opt for a personal loan over a credit card? Knowing the costs and benefits of each may help guide you in the right direction.
| Personal loan pros | Credit card pros | Personal loan cons | Credit card cons |
|---|---|---|---|
| Fixed rate and payment | Minimum payment option | No minimum payment option | Average rates are higher than personal loans |
| Could boost your credit scores | Balance can be reused | Funds are not reusable | Overuse could damage your credit score |
| Can be funded quickly | May offer cash-back or travel reward options | Fees may be as high as 10% of your loan amount | Variable rates could change |
| Average rates lower than credit cards | Payment is only based on amount you use | Bad credit rates may be very high | May charge annual fees |
Does it make more sense to borrow with a personal loan or a HELOC right now?
"Recent spikes in mortgage rates may make personal loans a better choice than home equity loans. People with high credit scores may find personal loan rates as competitive as home equity loan interest rates. In addition, a personal loan isn’t secured by your home, which means you don’t have to pay it off when you sell your home, and don’t risk losing your home to foreclosure if you can’t pay it off."
"As always, the answer is a personal one. If you have strong credit and can realistically afford the shorter repayment term on unsecured debt, a personal loan could be the way to go. Given its finite loan amount and payoff timeline, it can also help you avoid overborrowing. However, if you're a homeowner with sufficient equity and could nab an even lower APR on a HELOC, it could be wise to consider this secured line of credit. That might be especially the case if you don't plan on selling your home for the foreseeable future. The good news is you don't have to guess which product is best for your situation: Rate-shop both among banks, credit unions and online lenders without submitting to hard checks on your credit. Then, you can weigh, say, whether a potentially lower rate on a HELOC is worth putting your home up as collateral."
Our picks for the best lenders for every need
Best home improvement loans
Make value-improving renovations to your home without touching your home equity with a personal loan for home improvement.
Best debt consolidation loans
If you're tired of juggling multiple credit card bills or want to boost your credit score by paying off balances, check out our picks of the best debt consolidation lenders.
Best bad credit loans
Have you hit some major credit potholes on your financial journey? Our bad credit lenders may offer some solutions while you're on the road to repair.
Best emergency loan rates
Need cash fast for a sudden emergency? Find out how fast you could have the funds you need by checking our recommendations for the best emergency loans.
Learn more about personal loans
Want to know a little bit more about personal loans before you start shopping? Get the knowledge you need to feel comfortable about your final loan decision.
What happens if you default on a personal loan?
Find out what happens if you can't repay a personal loan, and what you can do to avoid major credit damage.
5 ways to pay off a personal loan early
Paying off a personal loan quickly could save big dollars on interest, but could also strain your budget if you're not careful.
How to boost your personal loan approval odds
Learn what you can do to boost your odds of a thumbs up on your personal loan application.
The best way to pay off a personal loan
Find out what happens if you can't repay a personal loan, and what you can do to avoid major credit damage.
Frequently asked questions about personal loans
How we choose our best personal loan lenders
Bankrate's trusted personal loans industry expertise
48
years in business
45
lenders reviewed
20
loan features weighed
900
data points collected
To select the best personal loans, Bankrate’s team of experts evaluated over 40 lenders. The lenders that earned a spot on our best personal loans list offer competitive APRs (many starting below 8%), multiple repayment term options, a wide variety of loan amounts, fast funding and accessible credit criteria. We also considered each lender's track record for customer service, as measured by consumer reviews and independent third-party agencies like the BBB and JD Power. Lenders that offer opportunities for rate discounts, hardship options and unique perks also fared well.
We also assign each lender a Bankrate score based on a meticulous 20-point system, focusing on four main categories:
- Mortgage Loan Originator (MLO)
- Personal loans
- Debt management
