Best personal loan rates for August 2024

Written by
Denny Ceizyk
Edited by
Pippin Wilbers
Reviewed by
Mark Kantrowitz
Edited by
Pippin Wilbers
Reviewed by
Mark Kantrowitz
Updated Aug 12, 2024

What to know first: The best personal loan rates start below 8 percent and go to the most creditworthy borrowers. Personal loan interest rates currently range from about 8 percent to 36 percent, with the average rate at 12.38 percent.

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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.

Remember that the 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 7.49%-25.49%* (with AutoPay) $5,000-$100,000 2 - 7 years 695
Citi No fees 11.49%-20.49% $2,000-$30,000 1 - 5 years 720
Upgrade Fast funding 9.99%-35.99% (with autopay) $1,000-$50,000 2 - 7 years 600
Best Egg Unique secured loans 8.99%-35.99% $2,000-$50,000 3 - 5 years 600
Achieve Debt consolidation 8.99%-35.99% $5,000-$50,000 2 - 5 years 620
OneMain Financial Same-day bad credit loans 18.00%-35.99% $1,500-$20,000 2 - 5 years Not specified
Upstart Little credit history 7.80%-35.99% $1,000-$50,000 3 - 5 years No requirement
SoFi Overall online lender 8.99%-29.49% (with autopay) $5,000-$100,000 2 - 7 years 680
LendingPoint Small, low-interest loans 7.99%-35.99% $1,000-$36,500 2 - 6 years 600
Prosper Peer-to-peer lending 8.99%-35.99% $2,000-$50,000 2 - 5 years 640
LendingClub Using a co-borrower 8.98%-35.99% $1,000-$40,000 2 - 5 years 600
Happy Money Credit card debt consolidation 11.72%-17.99% $5,000-$40,000 2 - 5 years 640
Avant Bad credit with a range of term options 9.95%-35.99% $2,000-$35,000 2 - 5 years 580

A closer look at our top personal loan lenders

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 how Bankrate users are using their loan funds. 

LightStream: Bankrate 2024 awards winner for excellent credit

LightStream
4.7

Overview: LightStream is best for borrowers with good credit who need to take out a large personal loan with a longer term to reduce monthly payments. Due to the higher loan amount and longer terms, individuals looking to consolidate large amounts of high-interest debt and those financing large home renovations may benefit most from a LightStream loan. 

Read Bankrate's Expert LightStream Review
Est. APR
7.49%–25.49%
Loan amount
$5k– $100k
Min credit score
695

Upstart: Best loan for little credit history

Upstart
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. 

Read Bankrate's Expert Upstart Review
Est. APR
7.80%–35.99%
Loan amount
$1k– $50k
Min credit score
300

Achieve: Bankrate 2024 awards winner for best debt consolidation

Achieve
4.7

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. Plus, unlike some of the lenders we review, it opens up the eligibility pool by offering joint applications.

Read Bankrate's Expert Achieve Review
Est. APR
8.99%–35.99%
Loan amount
$5k– $50k
Min credit score
620

LendingClub: Best for small amounts

LendingClub
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, which can help avoid overborrowing. 

Read Bankrate's Expert LendingClub Review
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
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. 

Read Bankrate's Expert Happy Money Review
Est. APR
11.72%–17.99%
Loan amount
$5k– $40k
Min credit score
640

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

OneMain
4.4

Overview: Only three of our top lenders offer secured loans, and OneMain takes the number one spot as the best secured loan provider. It’s also one of few lenders to offer same-day funding for borrowers with less-than-stellar credit.

Read Bankrate's Expert OneMain Financial Review
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
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. 

Read Bankrate's Expert Citi Review
Est. APR
11.49%–20.49%
Loan amount
$2k– $30k
Min credit score
720

Upgrade: Best for fair credit

Upgrade
4.7

Overview: While many of the lenders we reviewed offer fast funding, most don't approve borrowers with fair credit. However, Upgrade takes the cake as the best personal loan lender for fair credit and fast funding. It has a lower credit minimum of 600 and serves a wider range of applicants.

Read Bankrate's Expert Upgrade Review
Est. APR
9.99%–35.99%
Loan amount
$1k– $50k
Min credit score
600

Best Egg: Best for unique secured loans

Best Egg
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.

Read Bankrate's Expert Best Egg Review
Est. APR
8.99%–35.99%
Loan amount
$2k– $50k
Min credit score
600

Prosper: Best for peer-to-peer lending 

Prosper
4.6

Overview: Prosper is Bankrates's 2024 award winner for best personal loan for borrowers with fair credit, and for a good reason. 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. 

Read Bankrate's Expert Prosper Review
Est. APR
8.99%–35.99%
Loan amount
$2k– $50k
Min credit score
640

Avant: Best for bad credit

Avant
4.7

Overview: Generally, borrowers need a credit score between 600 and 640 to qualify for a personal loan. However, Avant sets the minimum credit score at a much-lower 580. Plus, Avant's convenient mobile app and easy-to-navigate website make it easier to stay on top of your payments and manage your loan details than other lenders on the market.

Read Bankrate's Expert Avant Review
Est. APR
9.95%–35.99%
Loan amount
$2k– $35k
Min credit score
580

LendingPoint: Best for small, low-interest loans

Lending Point
4.4

Overview: Although LendingPoint is based in Atlanta, it 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.

Read Bankrate's Expert LendingPoint Review
Est. APR
7.99%–35.99%
Loan amount
$2k– $37k
Min credit score
600

SoFi: Best overall online lender 

SoFi
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 roughly 80 percent of our top loan picks. 

Read Bankrate's Expert SoFi Review
Est. APR
8.99%–29.49%
Loan amount
$5k– $100k
Min credit score
680

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. 

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. 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. Though the process is longer with some lenders, it is typically faster than a home equity loan or a cash-out refinance.

Financial wellness check: How a personal loan can give you a healthier wallet

If your wallet is filled with many credit cards, your credit score health may be struggling. That’s because credit cards are a type of revolving debt, and if you’ve been relying on them a lot, they have a direct negative impact on your score. A debt consolidation loan pays all of that revolving debt off, and replaces it with installment debt. You could see a big boost in your credit score, which leads to better longer term financial health — as long as you keep up on your payments and avoid carrying balances on your credit cards again.

Personal loan interest rates 

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

Average interest rates vary depending on your credit health and score. Lenders see borrowers with less-than-stellar credit as more likely to default. So, they are more likely to be offered higher rates. Borrowers with good or excellent credit are more eligible for the lender's most competitive rates and terms. 

Before applying for a loan, prequalify or look at the lender's requirements and rates. 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 August 07, 2024

Personal loans 12.38%

2024 Fed interest rate changes

After raising the key benchmark rate to a 23-year high of 5.25-5.5 percent, the Federal Open Market Committee (FOMC) has halted for the time being. The most recent Fed meeting in July made the eighth consecutive hold.

Because personal loan rates are tied more closely to short term rates, there is a chance they’ll start to drop when the Fed lowers rates. Although the Fed's next steps are up in the air, personal loan rates could go down should a rate cut or two occur in 2024.

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. 

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.
  • Fast funding times.
  • No collateral required in most cases.
  • Lower interest rates than credit cards.
  • Few restrictions on how funds are used.
  • Extended loan terms.
  • Easier to manage than multiple payments.
Red circle with an X inside

Cons

  • Interest rates can be higher than personal loan alternatives.
  • Eligibility requirements can be strict.
  • Potentially high fees and penalties.
  • Additional monthly payment.
  • Increases your debt load.
  • Higher monthly payments than credit cards.
  • Potential credit damage if you default.

When does taking out a personal loan make the most sense?

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:

  1. 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. If you’re having trouble making the minimum payments on credit cards due to unpredictable or inconsistent income, a personal loan may not be the best choice.
  2. You want a definite debt payoff date: Making minimum payments on credit cards with changing interest rates makes it difficult to pinpoint a 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.
  3. You don’t want to touch your home’s equity: If you’re sitting on a good amount of equity, converting some of it to cash with a home equity loan or a HELOC can be tempting. However, that cash comes with a debt that’s secured by your home. A personal loan leaves your home equity intact and doesn't risk your home.
  4. You want to avoid revolving credit and improve your credit score: Too much revolving credit is bad for your credit scores. The only thing worse is a late payment, which is more likely if you’re struggling to keep track of payments. 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 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 personal loan options.

  • Approval requirements: Every lender sets its own threshold for approving potential borrowers based on factors like income, credit score and debt-to-income ratio.
  • Interest rates and fees: Personal loan APRs vary widely based on your credit score and the lender. The lowest advertised rate may come with extra fees or penalties, so read the fine print on your prequalification offers. 
  • Co-signers: If you have fair or poor credit and need a co-signer to be approved or land a good rate, make sure the lender you’re examining allows them.
  • Loan amounts: Make sure the lenders you're researching offer as little or as much as you need. Check that you qualify for the full loan amount needed.
  • Repayment options: Personal loan terms generally range between one and seven years. You’ll typically find the lowest rates on shorter terms, but your monthly payment will be higher. Look for lenders that offer multiple repayment terms and choose the one you can best afford.
  • Unique features: Keep an eye out for lenders with unique perks like rate discounts for automatic payments or extended grace periods for existing customers.
  • Customer service: Investigate a company's customer service options and read the company reviews to ensure you have the support you need. Look specifically for any trends among negative reviews and how the company responds to the complaints.
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The author’s expert insight

"As someone who used to broker loans for a living, finding the best lender for your needs is more important than chasing the lowest advertised online rate. That’s because 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 you more breathing room in your budget 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

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: Your rate, monthly payment and fees will vary based on your loan amount. Use a personal loan calculator to crunch numbers before you apply. 
  2. Learn lender rules and get your paperwork together: Lender websites usually list the minimum credit scores and basic requirements to qualify. Have a pay stub, address and a picture ID ready — most lenders need them to finalize your approval. 
  3. Weigh your options: A personal loan commits you to a fixed payment for up to seven years. Choose a payment you can realistically afford and that helps improve your overall financial situation. 
  4. Choose what type of personal loan makes sense: You can decide between debt consolidation, credit card refinancing or personal loans for home improvement if you’re not in an immediate cash crunch. Or, you may need an emergency loan for a sudden medical expense or car repair. 
  5. Shop at least three different lenders: Get prequalified with at least three lenders and compare their rates, terms and any costs. You can choose from banks, credit unions or online lenders. 
  6. Pick a lender and finalize your approval: Once you’ve chosen the best offer, you’ll officially apply and have your credit pulled. Review the final approval to make sure rate and costs haven’t changed. 
  7. Provide the necessary documentation: Lenders may require an extra pay stub or other documents to prepare your final loan documents. Provide them quickly to avoid delays. 
  8. Get your funds and start making payments: Your funds will usually be directly deposited into your bank account. In some cases, you’ll receive the funds in one business day. If the lender offers automatic payments, consider signing up.
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How To Get A Personal Loan In 8 Steps

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How to calculate your loan payment

After considering the options above, 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.

How to manage a personal loan 

Effectively managing a personal loan requires understanding the full responsibility and predicted repayment timeline before taking out the loan. Your spending habits and budgeting plans may have to change to accommodate for the new monthly expense.

This is especially true if you take out a personal loan to consolidate credit card debt. There are no minimum payment options and you can’t reuse credit as you pay it off like you can with a credit card.

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

Frequently asked questions about personal loans

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

Mark Kantrowitz

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.

Denny Ceizyk

Loans Senior Writer

Although I usually recommend HELOCs because they offer lower rates and more flexible payment options than personal loans, personal loans have some distinct advantages in certain circumstances. I’d suggest homeowners planning to sell their homes in the spring avoid tying up their equity with a HELOC, especially if they need the cash from their sale for a down payment on a new home. A personal loan can give them quicker access to cash to spruce up their home for resale without the paperwork hassle that comes with getting a HELOC. Homeowners who racked up credit card debt over the holidays may be better off using a personal loan for debt consolidation too. Getting rid of that revolving debt could boost their credit score by the time the spring homebuying season kicks in, and help them get a lower rate, especially with mortgage rates stuck at record highs.

How we choose our best personal loan lenders

Bankrate's trusted personal loans industry expertise

Read our full methodology

48

years in business

30

lenders reviewed

20

loan features weighed

665

data points collected

To select the best personal loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories: