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Best personal loan rates for December 2024

Updated Dec 04, 2024

What to know first: The best personal loan rates start below 7 percent and go to the most creditworthy borrowers. However, most current personal loan rates range from 8 percent to 36 percent, with the average rate at 12.31 percent. They offer fast access to cash for everything from home improvement to debt consolidation.

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PERSONAL LOANS

LightStream: Bankrate 2024 Awards Winner For Excellent Credit

4.7

Est. APR
6.94- 25.29%
* with AutoPay
Loan term
2-7 yrs*
Loan amount
$5k- $100K
Min credit score
695

PERSONAL LOANS

Upstart: Best loan for little credit history

4.8

Est. APR
7.40- 35.99%
Loan term
3-5 yrs
Loan amount
$1k- $50K
Min credit score
300

PERSONAL LOANS

Achieve: Bankrate 2024 Awards Winner For Best Debt Consolidation

4.7

Est. APR
8.99- 29.99%
Loan term
2-5 yrs
Loan amount
$5k- $50K
Min credit score
620

PERSONAL LOANS

LendingClub: Best for small loan amounts

4.5

Est. APR
8.98- 35.99%
Loan term
2-5 yrs
Loan amount
$1k- $40K
Min credit score
600

PERSONAL LOANS

Happy Money: Best for credit card debt consolidation

4.6

Est. APR
8.95- 17.48%
Loan term
2-5 yrs
Loan amount
$5k- $40K
Min credit score
640

PERSONAL LOANS

OneMain Financial: Best for same-day bad credit loans

4.4

Est. APR
18.00- 35.99%
Loan term
2-5 yrs
Loan amount
$1.5k- $20K
Min credit score
Not disclosed

PERSONAL LOANS

Citi® Personal Loan: Best for no fees

4.6

Est. APR
11.49- 20.49%
Loan term
1-5 yrs
Loan amount
$2k- $30K
Min credit score
720
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PERSONAL LOANS

Upgrade: Best for fair credit and longer terms

4.7

Est. APR
9.99- 35.99%
with AutoPay
Loan term
2-7 yrs
Loan amount
$1k- $50K
Min credit score
580

PERSONAL LOANS

Best Egg: Best for unique secured loans

4.6

Est. APR
6.99- 35.99%
Loan term
3-5 yrs
Loan amount
$2k- $50K
Min credit score
600

PERSONAL LOANS

Prosper: Best for peer-to-peer lending

4.6

Est. APR
8.99- 35.99%
Loan term
2-5 yrs
Loan amount
$2k- $50K
Min credit score
640

PERSONAL LOANS

Avant: Best for bad credit

4.7

Est. APR
9.95- 35.99%
Loan term
2-5 yrs
Loan amount
$2k- $35K
Min credit score
550

PERSONAL LOANS

LendingPoint: Best for small, low-interest loans

4.4

Est. APR
7.99- 35.99%
Loan term
2-6 yrs
Loan amount
$1k- $36.5K
Min credit score
600

PERSONAL LOANS

SoFi: Bankrate 2024 Awards Winner for Best Online Lender

4.7

Est. APR
8.99- 29.49%
with all discounts
Loan term
2-7 yrs
Loan amount
$5k- $100K
Min credit score
300

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Compare personal loan rates from Bankrate's top picks 

Bankrate's top personal loan picks serve the needs of many kinds of borrowers. Use this table to compare everything from the best personal loan rates to the best loans for borrowers with bad credit. Have your basic financial information like your credit score available as you skim through the details to make sure you qualify for the best rates.

APR ranges are subject to change by the lender. Also, the minimum APR is only offered to the most creditworthy borrowers. If you have low credit or don't exceed the minimum eligibility requirements, you'll likely be offered higher rates and fees.

LENDER BEST FOR EST. APR LOAN AMOUNT LOAN TERM MIN CREDIT SCORE
LightStream Excellent credit 6.94%-25.29%* (with AutoPay) $5,000-$100,000 2 - 7 years 695
Upstart Little credit history 7.40%-35.99% $1,000-$50,000 3 - 5 years No Requirement
Achieve Debt consolidation 8.99%-29.99% $5,000-$50,000 2 - 5 years 620
LendingClub Small loan amounts 8.98%-35.99% $1,000-$40,000 2 - 5 years 600
Happy Money Credit card debt consolidation 8.95%-17.48% $5,000-$40,000 2 - 5 years 640
OneMain Financial Same-day bad credit loans 18.00%-35.99% $1,500-$20,000 2 - 5 years Not specified
Citi No fees 11.49%-20.49% $2,000-$30,000 1 - 5 years 720
Upgrade Fair credit and longer terms 9.99%-35.99% (with autopay) $1,000-$50,000 2 - 7 years 580
Best Egg Unique secured loans 6.99%-35.99% $2,000-$50,000 3 - 5 years 600
Prosper Peer-to-peer lending 8.99%-35.99% $2,000-$50,000 2 - 5 years 640
Avant Bad credit 9.95%-35.99% $2,000-$35,000 2 - 5 years 550
LendingPoint Small, low-interest loans 7.99%-35.99% $1,000-$36,500 2 - 6 years 600
SoFi Overall online lender 8.99%-29.49% (with autopay) $5,000-$100,000 2 - 7 years No requirement

A closer look at our top lenders for personal loans

This section puts each top personal loan lender pick under a microscope. Before applying, consider each lender's loan details and what makes them stand out for your particular borrowing needs.

We outline what each lender excels at to help you find the best option for your needs. Where available, we also provide proprietary data showing what Bankrate users are doing with their loan funds.

LightStream: Bankrate 2024 awards winner for excellent credit

LightStream
Rating: 4.7 stars out of 5
4.7

Overview: LightStream is a top choice for those with good credit who need to take out a large personal loan with a longer term to reduce monthly payments. Loans up to $100,00 and longer terms make a LightStream a fit match if you’re looking to consolidate large amounts of high-interest debt or finance a home renovation.

Est. APR
6.94%–25.29%
Loan amount
$5k– $100k
Min credit score
695

Upstart: Best loan for little credit history

Upstart
Rating: 4.8 stars out of 5
4.8

Overview: Upstart touts a unique approval criteria with low, competitive rates that start at 7.80 percent. In fact, the company claims its lending model offers rates that are 38 percent lower and approves 101 percent more applicants compared to a traditional model. 

Est. APR
7.40%–35.99%
Loan amount
$1k– $50k
Min credit score
300

Achieve: Bankrate 2024 awards winner for best debt consolidation

Achieve
Rating: 4.7 stars out of 5
4.7

Overview: Overview: Formerly known as Freedom Plus, Achieve is a digital finance company that has become a trustworthy lender known for its flexible terms, discounts and rates. Unlike some of the lenders we review, it offers joint applications, which could earn you a lower rate or a bigger loan amount.

Est. APR
8.99%–29.99%
Loan amount
$5k– $50k
Min credit score
620

LendingClub: Best for small amounts

LendingClub
Rating: 4.5 stars out of 5
4.5

Overview: LendingClub started as a peer-to-peer lender in 2007, and has since evolved into a loan marketplace. If you’re struggling to find a lender that will let you borrow at a good rate, LendingClub offers joint applicant availability, which may help you score a lower rate. Plus it offers low amounts if you need a loan for a small expense, like new tires or kitchen appliances.

Est. APR
8.98%–35.99%
Loan amount
$1k– $40k
Min credit score
600

Happy Money: Best loan for paying credit card debt

Happy Money
Rating: 4.6 stars out of 5
4.6

Overview: Happy Money offers one loan — called the Payoff Loan — designed specifically for consolidating credit card debt. According to an internal Happy Money 2022 study, members who paid off at least $5,000 in credit card debt saw an average FICO score increase of 49 points within four months of getting their loan. 

Est. APR
8.95%–17.48%
Loan amount
$5k– $40k
Min credit score
640

OneMain Financial: Best for same-day bad-credit loans

OneMain
Rating: 4.4 stars out of 5
4.4

Overview: OneMain is one of a few lenders that offers same-day funding — but you may need to provide collateral. While it doesn't disclose a minimum credit score, OneMain does work with those who don't have the best of credit.

Est. APR
18.00%–35.99%
Loan amount
$1.5k– $20k
Min credit score
Not specified

Citi ® Personal Loan: Best for no fees

Citi® Personal Loan
Rating: 4.6 stars out of 5
4.6

Overview: For borrowers with excellent credit who already bank with Citi, getting a Citi personal loan may be the easiest option among our lender picks. The bank helps borrowers save by offering an autopay discount and charging no fees. Citigold or Citi Priority customers can take advantage of additional discounts. 

Est. APR
11.49%–20.49%
Loan amount
$2k– $30k
Min credit score
720

Upgrade: Best for fair credit

Upgrade
Rating: 4.7 stars out of 5
4.7

Overview: While several lenders we reviewed offer loans to fair credit borrowers, most don't offer terms as long as 84 months. Upgrade caters to borrowers with scores as low as 600, and even offers a low loan amount minimum for smaller borrowing needs.

Est. APR
9.99%–35.99%
Loan amount
$1k– $50k
Min credit score
580

Best Egg: Best for unique secured loans

Best Egg
Rating: 4.6 stars out of 5
4.6

Overview: Best Egg has funded over 1.1 million loans since 2014, making it a well-established lender in the personal loan space. It's also one of the few lenders that offers secured loans for those who wouldn't otherwise qualify for a personal loan.

Est. APR
6.99%–35.99%
Loan amount
$2k– $50k
Min credit score
600

Prosper: Best for peer-to-peer lending 

Prosper
Rating: 4.6 stars out of 5
4.6

Overview: Prosper is Bankrates's 2024 award winner for best personal loan for borrowers with fair credit. Its unique history of starting as a peer-to-peer lender puts your application in front of multiple investors to give you more odds for approval. As well as allowing joint applicants, Prosper boasts a quick funding time and a good online experience. Plus, borrowers can change their monthly payment date — a benefit not many lenders offer. 

Est. APR
8.99%–35.99%
Loan amount
$2k– $50k
Min credit score
640

Avant: Best for bad credit

Avant
Rating: 4.7 stars out of 5
4.7

Overview: Avant sets its minimum credit score at 550, much lower than the 600 to 640 requirement set by other lenders. Avant's convenient mobile app and easy-to-navigate website also make it easier to stay on top of your payments and manage your loan details than other lenders on the market.

Est. APR
9.95%–35.99%
Loan amount
$2k– $35k
Min credit score
550

LendingPoint: Best for small, low-interest loans

Lending Point
Rating: 4.4 stars out of 5
4.4

Overview: LendingPoint is based in Atlanta and offers personal loans in 48 states and Washington, D.C. While some lenders with tighter credit requirements require a $5,000 minimum for personal loans, LendingPoint lets bad-credit borrowers take out as little as $2,000.

Est. APR
7.99%–35.99%
Loan amount
$1k– $37k
Min credit score
600

SoFi: Best overall online lender 

SoFi
Rating: 4.7 stars out of 5
4.7

Overview: SoFi takes the spot as the best online personal loan for a number of reasons. For one, the lender offers the most robust portfolio of exclusive member benefits. It also hosts a fully online application and lending experience, as well as offering loans up to $100,000, higher than many of our top loan picks. 

Est. APR
8.99%–29.49%
Loan amount
$5k– $100k
Min credit score
300

What is a personal loan? 

A personal loan is a type of installment loan. You receive the funds all at once and repay them in monthly installments, similar to a car loan or home mortgage. They are usually paid over one to seven years. However, some lenders offer longer terms. Interest rates are usually fixed, making them a great option for paying off variable rate credit card balances. 

Possible personal loan uses include just about any purpose, such as paying off other debt, financing a home renovation or paying for family needs, like a wedding or adoption. They are also an excellent tool to pay off credit-score damaging revolving debt. Most personal loans are unsecured, meaning they aren’t backed by collateral such as a car, house or other assets. 

They are available from banks, credit unions or private lenders including online marketplaces and peer-to-peer lenders. Getting a personal loan takes as little as one or two business days. It is typically faster than a home equity loan or a cash-out refinance.

Personal loan interest rates

The interest rate you're offered will depend on several factors, including your credit score, your income, your current debts, the Federal Reserve's actions and the type of loan you're interested in.

Average interest rates vary depending on your credit health and score. Lenders offer borrowers with fair or bad credit higher rates because they see them as more likely to default.

Borrowers with good or excellent credit are more eligible for the lender's most competitive rates and terms. Lenders often also charge lower rates for shorter terms, higher loan amounts and may offer discounts for auto payment set up.

Check your credit score to calculate your potential interest rate.

CREDIT BAND CREDIT SCORE RANGE AVERAGE PERSONAL LOAN INTEREST RATE
Excellent 720-850 10.73%-12.50%
Good 690-719 13.50%-15.50%
Average 630-689 17.80%-19.90%
Bad 300-629 28.50%-32.00%

Average rates as of December 04, 2024

Personal loans 12.31%

2024 Fed interest rate changes

After raising the key benchmark rate to a 23-year high, the Federal Open Market Committee (FOMC) has cut rates for the second time in four years. The most recent Fed meeting in November dropped the range by a quarter percentage point, bringing it to 4.5-4.75 percent.

Because personal loan rates are tied more closely to short-term rates, there is a chance they’ll start to drop as the Fed lowers rates. Although the Fed's next steps are up in the air, especially with the recent election results, personal loan rates could start to trend down with additional cuts.

“The Fed was behind the curve when raising interest rates to corral inflation and the lesson appears to have been learned,” says Greg McBride CFA, Bankrate chief analyst. “By making a larger half-point interest rate cut right from the get-go, the Fed is taking out some insurance against being behind the curve again.” 

The Federal Reserve will be cutting interest rates in the remaining months of 2024 in an effort to engineer a soft economic landing – getting inflation to 2 percent while the economy continues to grow at a sustainable pace. But interest rates will come down much slower than they increased in 2022-2023. — Greg McBride, Bankrate Chief Financial Analyst

Personal loan uses 

Borrowers take out different types of personal loans for different loan purposes. While there are many options out there, here are a few of the most common. 

Does it make more sense to borrow with a personal loan or a HELOC right now?


Nationally recognized finance expert

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.

Loans Senior Writer

Despite the record highs in home equity, I’d recommend personal loans as a better alternative for two reasons. First, they don’t tie up your home’s equity since they’re typically unsecured. That means you net more profit if you plan to sell your home soon and avoid the risk of losing your home if you can’t repay the HELOC. Second, you could keep using a HELOC over at least the first 10 years, reducing your housing wealth. A personal loan forces you to pick a repayment period with a definite end date. Homeowners who rack up credit card debt over the holidays may be better off using a personal loan for debt consolidation, too.

Pros and cons of personal loans 

While helpful, personal loans aren't the best financing tool or solution for everyone. Consider the pros and cons of personal loans. If you feel that the cons outweigh the pros, look into personal loan alternatives, like home equity products or a credit card.

Green circle with a checkmark inside

Pros

  • Money in one lump sum with lower interest rates than credit cards.
  • Faster funding times than secured loan options like home equity loans.
  • May help improve your credit score if used to pay off revolving credit.
  • Few restrictions on how funds are used.
Red circle with an X inside

Cons

  • Interest rates can be higher than credit cards for bad credit borrowers.
  • Shorter terms could result in unaffordable monthly payments.
  • Potentially high fees and penalties.
  • Income must be stable to qualify — not good for gig or self-employed income.

How to calculate your loan payment

Use our calculator to find the perfect loan repayment plan for you. Enter in the loan amount, term and interest rate to get your estimated monthly payment and total interest accrual.

When to take out a personal loan

Assess your finances and situation to decide whether now is a good time for a personal loan.

Here are four scenarios when a personal loan is a good financial choice:

  • You have a steady, reliable income: A personal loan requires a regular monthly payment you can’t change, making it best for people with a regular salary or full-time job. 
  • You want a definite debt payoff date: With a personal loan, you choose a fixed-rate term that usually ranges between one to seven years, putting you on a countdown to being debt free.
  • You don’t want to touch your home’s equity: A personal loan leaves your home equity intact and doesn't risk your home.
  • You want to avoid revolving credit and improve your credit score: A personal loan can help replace reusable revolving debt with one-and-done installment debt, and usually gives your credit scores a major boost once the balances are paid off.

How to get a personal loan

Knowing the steps to getting a personal loan will make the application and approval process easier. 

  1. Know how much you want to borrow: Use a personal loan calculator to see how different terms, rates and fees could impact your total balance.
  2. Choose what type of personal loan makes sense: Many personal loans are best suited for different scenarios, such as debt consolidation or emergency borrowing. Know the difference between the types to help you determine which is best for you. 
  3. Learn lender rules and get your paperwork together: Check the lender’s website for eligibility information to ensure you match the lender’s requirements. Paperwork requirements vary, but most lenders require a pay stub, address and government-issued ID for approval.
  4. Shop at least three different lenders: Get prequalified with at least three lenders and compare your predicted loan costs. 
  5. Pick a lender and finalize your approval: Once you officially apply, your credit will be pulled. The lender or institution will notify you of the results usually within a few business days, but it can take up to a week. 
  6. Provide the necessary documentation: Lenders may require an extra pay stub or other additional documents to prepare your final loan documents.
  7. Get your funds and start making payments: Once you sign the loan agreement, the funds will likely be directly deposited into your bank account, usually within one business day. Consider signing up for automatic payments to make repayment easier.

How to compare personal loans 

Get quotes from a few lenders before applying for a personal loan and compare their offers to make the best choice for your situation. Keep the following factors in mind as you compare your options.

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The author’s expert insight

"As someone who used to broker loans for a living, I know that the lowest rate lenders are not always the best choice for your circumstances. Those low rates may come with extra fees, short terms, and requirements that don’t fit your financial needs or that you can’t qualify for. A lender that offers slightly higher rates but longer terms may give your budget more breathing room than a lender that offers super low rates on loan balances you have to pay off quickly at a high monthly payment."

- Denny Ceizyk, Bankrate Senior Loans Writer

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How To Get A Personal Loan In 8 Steps

Get more details about how to get approved for the best personal loan for your credit situation.

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How to manage a personal loan 

Effectively managing a personal loan requires understanding the repayment timeline before taking out the loan. Your spending habits and budget may have to change to accommodate for the monthly payment.

This is especially true if you take out a personal loan to consolidate credit card debt. Unlike a credit card, personal loans have a fixed amount and no minimum payment options.

If you miss payments or cannot make them, ask your lender about hardship payment relief options as soon as possible. Many lenders offer relief programs and they may be more willing to work with you if you notify them of your situation immediately.

How to refinance a personal loan

A personal loan refinance can reduce your monthly payment and save you hundreds in interest charges by paying off your current high rate loan replacing it with a new one with a lower rate. And with the Fed now starting to cut the funds rate, there may be more opportunities to save money with a personal loan refinance in the near future, especially if your credit scores have improved.

For example, the average rate for someone with a credit score of 629 or lower could drop from 32 percent to just under 20 percent if your score rises above 630. That’s more than a 10 percent rate improvement, which could translate to big monthly payment and interest savings. 

How and when to refinance a personal loan depends on five factors.

  1. How close you are to paying off your current loan: If your score improved substantially after a debt consolidation loan and you still have three to five years left, a refinance probably makes sense. If you have less than a year left, extending the term out for another three to five years — even at a lower rate — will probably cost you more in the long run. 
  2. How much your credit score has improved: If your credit has improved by 70 to 100 points, check to see what rates you might be eligible for. 
  3. How stable your income is: If you recently switched jobs to a higher pay rate or from commission to salary income, you have an easier time qualifying for a refinance. 
  4. Whether the Federal Reserve continues to cut rates: The Federal Reserve has already cut the funds rate twice this year. Although those cuts don’t immediately affect personal loan rates, over time, lenders may begin to offer lower rates. Be sure to periodically check personal loan rates when you hear news about Fed rate cuts. 

Frequently asked questions about personal loans