Dori Zinn has been a personal finance journalist for more than a decade. Aside from her work for Bankrate, her bylines have appeared on CNET, Yahoo Finance, MSN Money, Wirecutter, Quartz, Inc. and more. She loves helping people learn about money, specializing in topics like investing, real estate, borrowing money and financial literacy.
Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information.
Bankrate's picks for the top personal loans considers the interest rates, terms and features each lender has to offer. We also lay out the benefits and drawbacks of personal loans along with rates and other information so you can decide if a personal loan is the right financial move for you.
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What To Know First
Personal loans allow you to borrow a lump-sum to pay for a large expense and then pay it back over time in monthly installments. They have a couple of key factors to keep in mind when comparing options. The ones Bankrate highlights in our best list include:
APR: The annual percentage rate — or the interest rate and fees expressed as a percentage.
Loan term: How long you have to pay back what you borrow.
Loan amount: How much you can borrow is often critical when taking out a personal loan. Make sure the lenders you're reviewing offer enough to cover your purchase.
Best for: What situation this lender best fits. Categories range from overall best to best in-person banking experience.
The best personal loan interest rates currently range from about 3 percent to 36 percent. The actual rate you receive depends on multiple factors, such as your credit score, annual income and debt-to-income ratio. The best rate that you can qualify for might not be the best loan you can qualify for — consider additional features offered and the other listed factors as well.
Methodology
To select the top personal loan lenders, Bankrate considers 15 factors. These factors include credit requirements, APR ranges, fees, loan amounts and flexibility to account for a wide range of credit profiles and budgets.
Of the 33 lenders reviewed, 12 made Bankrate's list of best personal loans. Each lender has a Bankrate rating, which consists of three categories. These categories include:
Affordability: The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score.
Availability: What the minimum loan amounts are, its eligibility requirements and loan turnaround are considered in this category.
Customer experience: This category covers customer service hours, if online applications are available, online account access and mobile apps.
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We’ve maintained this reputation over four decades by prioritizing facts and experience over hype and hearsay, and quickly responding to economic trends that offer our users a more relevant experience.
From our product comparison tools to award-winning editorial content, we provide objective information and actionable next steps to help you make informed decisions. It’s why over 100 million people put their trust in us every year.
The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.
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Bankrate’s scores for personal loan lenders evaluate 11 data points related to loan costs and terms, as well as customer experience.
The annual percentage rate (APR) includes your interest rate, plus any loan fees. It reflects the total cost of borrowing.
The range of loan amounts that a lender will service. The maximum value is the largest amount a lender will give although this amount may not be available to borrowers who don’t have good or excellent credit. Amount ranges may vary for non-loan products. Term refers to the amount of time you have to repay the loan.
The minimum credit score typically required to qualify for a loan with a given lender. Exact thresholds are not always disclosed by a lender and in certain cases the minimum score is the best estimate based on publicly available information. Credit score refers to FICO 9.0 unless otherwise stated.
Lowest rate is for excellent credit only. Rates 4.98% - 19.99% APR w/autopay.*
Loans from $5,000 - $100,000
Same-day funding available (conditions apply)
We guarantee your best-funded loan experience ever
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rates range from 4.98% - 19.99% APR w/AutoPay. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are .50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
Payment example: Monthly payments for a $10,000 loan at 4.98% APR with a term of 3 years would result in 36 monthly payments of $299.62. Truist Bank is an Equal Housing Lender. Copyright 2022 Truist Financial Corporation. SunTrust, Truist, LightStream, the LightStream logo, and the SunTrust logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Personal loans up to $50,000 with low fixed rates that will never change
Affordable monthly payments that fit your budget and no prepayment penalties
Fast funding, money is sent to your bank account within a day of clearing any verifications
No obligation and no impact to your credit score when you check your rate
Use your loan through Upgrade to pay on high interest credit cards, make a large purchase, finish that home improvement project, or almost any life event!
Personal loans made through Upgrade feature APRs of 5.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/.
**Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.
Get a personal loan up to $50,000 with a fixed APR from 5.99% to 35.99%,Get money in as little as one business day, upon approval and verification,Join more than 450,000 customers at a trusted company with an A+ BBB rating,Use it for almost anything: consolidate debt or other unexpected expenses
DISCLOSURE UPDATE AS OF 07.2021
Trustpilot TrustScore as of June 2020.
Best Egg personal loans, including the Best Egg Secured Loan, are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. "Best Egg" is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of "Best Egg" refer to "the Best Egg personal loan", "the Best Egg Secured Loan", and/or "Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan," as applicable.
The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank's policies. Loan amounts range from $2,000 - $50,000. Residents of Massachusetts have a minimum loan amount of $6,500; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99% - 35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99% - 5.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate.
You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Personal loans from $500-$50,000,Low fixed rates,Terms up to 60 months,No origination or hidden fees
Federally Insured by NCUA. *Annual Percentage Rate (APR) effective 08/27/2021 and subject to change. To receive any advertising product, you must become a member of PenFed Credit Union.
Low fixed rates (with AutoPay) and no origination fees
Checking your rate will not affect your credit score
Simple online application and live customer support
Fixed rates from 5.74% APR to 20.28% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 1/18/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
No Fees. Ever. We don't deduct a sign-up fee from your loan amount.
Loans from $3,500 to $40,000 and fixed rates from 6.99% to 19.99% APR. Only the most creditworthy applications qualify for the largest loan amounts and lowest rates.
Discount when enrolled in Autopay
You may be required to have some of your funds sent directly to creditors to pay down certain types of unsecured debt
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.
Receive an APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.
Join over 3 million members that have partnered with us
Check your rate with no impact to your credit score*
Get your cash in as little as 48 hours*
We offer flexible amounts and terms, with no pre-payment penalties
Take advantage of unique offerings-balance transfer loans, joint applications, auto loans, and member perks
A representative example of loan payment terms is as follows: you receive a loan of $13,411 for a term of 36 months, with an interest rate of 12.16% and a 5.30% origination fee of $711, for an APR of 15.99%. In this example, you will receive $12,700 and will make 36 monthly payments of $446.46. Loan amounts range from $1,000 to $40,000 and loan term lengths are 36 months or 60 months. Some amounts and term lengths may be unavailable in certain states. APR ranges from 7.04% to 35.89% and is determined at the time of application. Origination fee ranges from 3% to 6% of the loan amount. Lowest APR is available to borrowers with excellent credit. Advertised rates are subject to change without notice.
Loans are made by LendingClub Bank, N.A., Member FDIC ("LendingClub Bank"), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Loans are subject to credit approval and sufficient investor commitment before they can be funded or issued. Certain information that we subsequently obtain as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that your request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan from us. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com. "LendingClub" is a trademark of LendingClub Bank.
9 out of 10 customers would recommend Prosper to friends or family*
Co-borrower option available. Applying with a co-borrower could help improve your rates
Get your money in as few as 3 business days, your monthly payment stays the same
For example, a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.90. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers.
Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank, Member FDIC.
Competitive rates from 9.95% - 35.99% APR and terms from 24 to 60 months
Checking your loan options has no impact to your credit score.
Fast Decisions, see your loan options in minutes
Funding as soon as next business day
*A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. Minimum loan amounts may vary by state. If approved, the actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. An administration fee of up to 4.75% will be deducted from the loan proceeds. Avant branded credit products are issued by Webbank, member FDIC.
Figure’s mission is to create innovative financial solutions for our customers. We build products that offer unprecedented speed and ease, powered by blockchain technology. We continue to expand a comprehensive set of offerings that align with member needs throughout the course of their financial lives. We understand that financial lives are complex. It involves saving, spending and borrowing all at the same time, and we help you Figure it out.
We understand that financial lives are complex. It involves saving, spending and borrowing all at the same time, and we help you Figure it out.
This is not an offer of credit; this is an invitation to apply. To obtain a loan, you must submit additional documentation including an application that will require hard credit pull, which may affect your credit score. Approval of your application is subject to verification of your identity and credit information. Rates change frequently so your exact rate will depend on the date you apply. You will be responsible for an origination fee of up to 3.00% of your loan amount, depending on the state in which you reside. Loan terms and fees are also subject to change. Figure Lending LLC dba Figure is an equal opportunity lender. NMLS # 1717824.
Stilt is a mission-driven fintech company focused on providing credit to international students, immigrants and the underserved. We build products to improve financial inclusion and democratize access to the credit through providing accessible and reasonable personal loans.
Immigrants, international students, other visa
holders and those underserved by the traditional banking system often encounter many struggles while trying to build credit, apply for personal loans and build their financial future. Stilt’s services allow them to take a step forward in their path to financial health by applying for a personal loan with a unique qualifying process like Stilt’s.
Stilt is focused on improving financial inclusion and access to credit at reasonable rates.
Stilt loans are originated by Stilt Inc., NMLS#1641523. Terms and conditions apply. To qualify for a Stilt loan you must reside in an eligible state and meet Stilt’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have excellent credit, a responsible financial history and meet other conditions Stilt requires. Rates and terms are subject to change at anytime without notice and are subject to state restrictions. Not all amounts and rates are available in all states. To check rates and terms Stilt may be able offer you a soft credit inquiry that will be made. This soft inquiry will not affect your credit score. However, if you choose to accept a Stilt loan offer, a hard inquiry from one or more of the consumer reporting agencies will be required. A hard inquiry may affect your credit score. There will be an origination fee charged for the loans for up to 8% of the loan amount. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, repayment ability, income and other factors. All applications are subject to additional terms and conditions. If you could receive a $10,000 loan with a term of 18 months with an APR of 13.00%, the monthly payment will be $614.48. No down payment is required. The minimum loan amount in $6,001 in MA, $3,001 in GA and $10,001 in CA.
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The Bankrate guide to choosing the best personal loan
Why trust Bankrate?
At Bankrate, our mission is to empower you to make smarter financial decisions. We’ve been comparing and surveying financial institutions for more than 40 years to help you find the right products for your situation. Our award-winning editorial team follows strict guidelines to ensure the content is not influenced by advertisers. Additionally, our content is thoroughly reported and vigorously edited to ensure accuracy.
When shopping for a personal loan, compare APRs across multiple lenders to make sure you’re getting a competitive rate. Look for lenders that keep fees to a minimum and offer repayment terms that fit your needs. Loan details presented here are current as of the publication date. Check the lenders’ websites for more current information. The personal loan lenders listed here are selected based on factors such as APR, loan amounts, fees and credit requirements.
What is a personal loan?
Personal loans are short-term loans that consumers can receive from banks, credit unions or private lenders like online marketplace lenders and peer-to-peer lenders. The loan funds can be used for just about any purpose, such as paying off other debt, financing a home renovation or paying for family needs, like a wedding or adoption.
A personal loan is repaid in monthly installments, similar to a car loan or home mortgage, with loan terms ranging from 24 months to 60 months or even longer. Personal loans are typically unsecured, meaning they are not backed by collateral such as a car, house or other assets. If you need cash fast, these loans are a good choice because the approval and funding process is often faster than that of a home equity line of credit, which lets you borrow funds as you need them rather than in a lump sum.
How to choose the best personal loan lender
It's always best to get quotes from a few lenders before applying for a personal loan so you can determine which has the best overall offerings for your situation. When comparing lenders, keep an eye on the following factors.
Approval requirements. Every lender has its own threshold for approving potential borrowers, considering things like your income, credit score and debt-to-income ratio. If you have below-average credit, look for lenders that utilize other approval criteria; some will take into account things like your area of study or job history.
Interest rates. The lowest advertised rate is never guaranteed, so compare your actual quotes. When comparing interest rates, also make sure to incorporate any fees or penalties; origination fees or application fees can significantly add to the overall cost of your loan.
Loan amounts. If you need a loan for something small, like a minor car repair, you'll look at different lenders than you would if you need to pay for tens of thousands of dollars in medical bills.
Repayment options. A good personal loan lender usually offers multiple repayment terms so you can choose the one that makes the most sense for your situation. If you're borrowing a lot of money, you may want to look for a lender with long repayment terms to decrease your monthly payment. If you have a smaller loan, a shorter repayment term will cut back on the amount of interest you pay overall.
Unique features. Keep an eye out for lenders with any unique perks (or restrictions). Be sure to check that any lender you're considering will allow you to use your loan for the purpose you're intending. Some, like Payoff, restrict their personal loans to specific uses, like debt consolidation.
Customer service. It's also wise to investigate a company's customer service options, particularly if you prefer in-person service to online. If you need more information, you can always look up reviews about the company or check out its Better Business Bureau profile.
Why SoFi is the best overall for personal loans: SoFi has all the features you would expect in a top-quality lender, including a variety of loan amounts and repayment terms and zero fees. It also adds perks to help borrowers improve their financial stability and career.
Who this lender is best for: Qualified lenders or borrowers who plan to use a cosigner.
Impact on financial wellness: SoFi offers a wide range of benefits that go beyond just funding your personal loan, including an autopay discount and unemployment protection in case you lose your job and need to pause payments on your loan.
Special features: SoFi has customer support channels seven days a week. It also offers benefits to members such as financial education, estate planning and career coaches.
LightStream:
Best loans for generous repayment terms
Why LightStream is the best personal loan for generous repayment terms: Its loan terms range from two to seven years for most loans (and up to 12 years for loans for home improvement, swimming pools and solar energy systems), which means you can take longer to pay off your loan and benefit from lower monthly payments.
Who this lender is best for: People who have a strong demonstrated financial history and want a longer loan period for bigger projects.
Impact on financial wellness: The longer repayment terms with set payments make it easier to manage a loan over time.
Special features: LightStream lets borrowers choose when to receive the money, which can help you plan payments or align the loan with the start of the expense the loan is covering.
LENDER:
LightStream
BANKRATE RATING:
4.6 / 5.0
MIN. CREDIT SCORE:
Not specified
EST. APR:
4.98%–19.99% (with autopay)
LOAN AMOUNT:
$5,000–$100,000
TERM LENGTHS:
2 to 12 years
MIN. ANNUAL INCOME:
Not specified
FEES:
None
ADDITIONAL REQUIREMENTS:
Several years of credit history with multiple types of credit; Payment history with few delinquencies; Retirement savings, investments or other savings showing the ability to save money
Why Avant is the best personal loan for people with bad credit: Avant specializes in lending to people with fair or poor credit. Most of its customers have credit scores between 600 and 700.
Who this lender is best for: Anyone with poor credit, including people who need loans but haven’t had time to establish a strong credit history.
Impact on financial wellness: Avant has interest rates that are comparable with other lenders that offer services for lower credit scores, meaning people can qualify who might not find a loan elsewhere.
Special features: Avant claims it can deposit funds the day after the loan is approved.
LENDER:
Avant
BANKRATE RATING :
4.5 / 5.0
MIN. CREDIT SCORE:
580 FICO and 550 Vantage
EST. APR:
9.95%–35.99%
LOAN AMOUNT:
$2,000–$35,000
TERM LENGTHS:
2 to 5 years
MIN. ANNUAL INCOME:
Not specified
FEES:
Administration fee: up to 4.75%; Late fee: $25; Dishonored payment fee: $15
Why Marcus by Goldman Sachs is the best personal loan for debt consolidation: Marcus specializes in debt consolidation loans with broad loan amounts and a relatively low APR cap of 19.99 percent. With a debt consolidation loan, you borrow money with one loan to pay off many smaller loans or credit cards that were charging much higher interest rates.
Who this lender is best for: People needing a debt consolidation loan or looking for customizable terms.
Impact on financial wellness: Marcus doesn’t have fees for people with good credit, and the ability to defer payment without interest helps if borrowers have an unexpected situation that makes a payment late.
Special features: Borrowers can choose from nine repayment plans to make the loan work for them.
Why Best Egg is the best personal loan for low APRs: Best Egg’s interest rates start as low as 4.99 percent APR for those with the best credit. At 35.99 percent, its rate cap is roughly 6 percentage points lower than that of some lenders profiled on this page.
Who this lender is best for: People who want to consolidate debt who have good credit or homeowners who want to use their home for a secured loan.
Impact on financial wellness: Best Egg’s low APRs can make loans less expensive in the long run.
Special features: If you get a debt consolidation loan, Best Egg can do direct payment to your creditors to make debt consolidation easier.
LENDER:
Best Egg
BANKRATE RATING:
4.6 / 5.0
MIN. CREDIT SCORE:
640
EST. APR:
5.99%–35.99%
LOAN AMOUNT:
$2,000–$50,000
TERM LENGTHS:
3 to 5 years
MIN. ANNUAL INCOME:
$5,000
FEES:
Origination fee: 0.99% to 5.99%; Late fee: $15; Returned payment fee: $15
Why Payoff is the best personal loan for paying credit card debt: While the average rate for credit cards currently hovers around 16 percent, Payoff loans start at 5.99 percent, which could save borrowers money on interest and help them get out of debt faster.
Who this lender is best for: People who want to consolidate credit card debt.
Impact on financial wellness: Payoff’s low rates are likely to be lower than credit card rates, which means people may be able to pay off their debt faster and for less.
Special features: Payoff offers free monthly FICO updates and reports payments to the major credit bureaus to help people build credit.
LENDER:
Payoff
BANKRATE RATING:
4.5 / 5.0
MIN. CREDIT SCORE:
640
EST. APR:
5.99%–24.99%
LOAN AMOUNT:
$5,000–$40,000
TERM LENGTHS:
2 to 5 years
MIN. ANNUAL INCOME:
Not specified
FEES:
Origination fee: 0% to 5%
ADDITIONAL REQUIREMENTS:
Minimum three years of credit history; at least two open credit accounts; no bankruptcies within last two years; zero credit delinquencies
Why Upstart is the best personal loan for little credit history: While Upstart has minimum credit score requirements, it evaluates more than just your credit score when you apply. The lender looks at your education, your job history and some credit score factors when determining your eligibility.
Who this lender is best for: Borrowers who don’t have credit history or good credit.
Impact on financial wellness: Because Upstart considers more than credit score when determining who to lend to, younger applicants and others with a short credit history can access loans when they need them.
Special features: Upstart lets borrowers change their payment date in some situations.
LENDER:
Upstart
BANKRATE RATING:
4.5 / 5.0
MIN. CREDIT SCORE:
No minimum credit score requirement
EST. APR:
3.50%–35.99%
LOAN AMOUNT:
$1,000–$50,000
TERM LENGTHS:
3 to 5 years
MIN. ANNUAL INCOME:
$12,000
FEES:
Late fee: greater of 5% of monthly amount past due or $15; Origination fee: up to 8%; Returned check fee: $15; One-time paper copies fee: $10
Why LendingClub is the best personal loan for using a co-borrower: If you’re struggling to find a lender that will let you borrow, you might need to enlist the help of a co-borrower. Not every lender offers the option to do this, but LendingClub lets you submit a joint application to help you qualify for a loan or get a better interest rate.
Who this lender is best for: People wanting to use a co-borrower or who want help building credit and managing their finances.
Impact on financial wellness: Being able to get help from a co-borrower can be a big advantage for people with low credit scores to improve their credit while likely paying lower interest rates.
Special features: This lender offers the ability to pay creditors directly with debt consolidation loans. Borrowers also have the option to change their payment date.
Why PenFed is the best personal loan for small loan amounts: You can get a PenFed personal loan for as little as $600, which is ideal if you don’t need a lot of cash and don’t want to incur much debt.
Who this lender is best for: People who only need a small loan or people who prioritize the customer experience. It may also be ideal for existing PenFed members who may be able to get more favorable rates with lower credit scores by maintaining a good relationship with the financial institution.
Impact on financial wellness: Being able to take out a smaller loan in only the amount you need can prevent excess interest fees while allowing you to cover needed finances.
Special features: Because PenFed is a credit union, it has opportunities for its members’ overall financial wellness. It also has seven-day customer service and a well-functioning mobile app to help customers keep track of their loans.
LENDER:
PenFed
MIN. CREDIT SCORE:
Not specified by the lender, but individuals report at least 600
Why TD Bank is the best personal loan for few fees: TD Bank charges only one fee: a late payment fee of 5 percent of the minimum payment due or $10, whichever is less. It doesn't have any origination fees, monthly fees, annual fees, prepayment fees or insufficient funds fees.
Who this lender is best for: People who live in the 15 states TD Bank serves who want fast loan payments and no fees as long as they pay on time.
Impact on financial wellness: No fees from the lender other than late fees means that people may find the overall loan costs to be less expensive, and the funds being paid the next business day means that urgent financial needs can be covered by a loan with a more favorable interest rate than other options.
Special features: TD Bank offers fast payment to you and the ability to change your payment date.
LENDER:
TD Bank
BANKRATE RATING:
4.9 / 5.0
MIN. CREDIT SCORE:
None
EST. APR:
6.99%–18.99%
LOAN AMOUNT:
$2,000–$50,000
TERM LENGTHS:
3 to 5 years
MIN. ANNUAL INCOME:
Not specified
FEES:
Late fee: 5% of minimum payment due or $10, whichever is less
Why PNC Bank is the best personal loan for in-person banking: Sometimes you just need to see someone face-to-face. PNC Bank has nearly 2,300 locations across 23 states and Washington, D.C., making it a good choice for people who prefer in-person banking.
Who this lender is best for: People who want in-person banks and people who have an existing relationship with PNC Bank, who can get a small percentage rate discount with autopay.
Impact on financial wellness: Talking to someone in-person can help people explore their options and have someone address their unique financial situation. In-person interaction can also provide opportunities for help with financial questions.
Special features: PNC Bank offers a small discount to existing customers and joint applications.
Personal loan interest rates currently range from about 3 percent to 36 percent, depending on your credit score. As of September 8, 2021, the average personal loan interest rate is 10.46 percent. The better your credit score, the more likely you are to qualify for a personal loan with the lowest interest rate available. Compare personal loan offers to see what you are eligible for before applying for a personal loan.
Average personal loan interest rates by credit rating
Average personal loan interest rates range from 10.3 percent to 12.5 percent for “excellent” credit scores of 720 to 850, 13.5 percent to 15.5 percent for "good" credit scores of 690 to 719, 17.8 percent to 19.9 percent for "average" credit scores of 630 to 689 and 28.5 percent to 32.0 percent for “poor” credit scores of 300 to 629.
CREDIT BAND
CREDIT SCORE RANGE
AVERAGE PERSONAL LOAN INTEREST RATE
Excellent Credit
720–850
10.3%–12.5%
Good Credit
690–719
13.5%–15.5%
Average Credit
630–689
17.8%–19.9%
Bad Credit
300–629
28.5%–32.0%
Excellent-credit loans
Excellent-credit loans are loans that are geared toward borrowers with excellent credit, typically with credit scores between 720 and 850. Having such a high credit score can come with many benefits, including average APRs as low as 10.3 percent — though some lenders go even lower. If your credit score falls into this range, look for excellent-credit lenders with low advertised rates and few fees.
Good-credit loans
Good-credit loans offer competitive interest rates and generally low fees. You're considered to have good credit if you have a credit score between 690 and 719, and with such a high score, you may qualify for average APRs as low as 13.5 percent. However, if you have good credit and are interested in a personal loan, shop around; you may be able to qualify for an even lower interest rate.
Fair-credit loans
If you have a fair or average credit score, it can be hard to find a personal loan that offers reasonable rates and fees. If your credit score falls between 630 and 689, your credit score is average. While this is considered a less-than-stellar score, you still may be able to qualify for a personal loan with an average APR as low as 17.8 percent. This list of the best personal loans for fair credit features lenders that cater to people with scores in the mid-600s.
Bad-credit loans
You can get approved for a loan even with bad credit, although you won't qualify for the best APRs. If your credit score is between 300 and 629, the best interest rate available could be around 28.5 percent. However, a bad-credit loan, even one with a rate close to 30 percent, is a better financial option than a payday loan; to see what rates are available, compare offers from a few bad-credit lenders.
Pros and cons of personal loans
Pros:
One lump sum, usually with a fixed interest rate, which helps keep monthly payments on track.
Get money quickly, sometimes within as little as a day, depending on the lender you choose.
Many are unsecured loans, which means your home or car isn’t used to borrow money.
Interest rates are much lower than those of payday loans, which charge upward of 400 percent.
Unlike highly risky payday loans, personal loans give you a reasonable amount of time to repay the loan.
Cons:
APRs are generally higher than those of some secured loans.
If you have a low credit score, you might not qualify.
Some lenders charge fees, like origination, late and prepayment fees. The lower your credit score, the more likely you are to have a lender that charges more fees.
Some lenders don’t allowco-signers, which means you can only use your credit score and history to qualify.
You’re adding another bill to your monthly payments, which might stretch or even break your budget.
Types of personal loans and their uses
With the exception of loans from a few niche lenders, like Payoff, most personal loans can be used for any purpose. Personal loans come in a few common categories.
Debt consolidation
Debt consolidation is when you pay off several debts with a new personal loan, then pay off the personal loan through monthly payments.
Who it’s best for: Personal loans for debt consolidation are best for people who have several high-interest debts, generally through credit cards.
What to watch out for: Look carefully to make sure the debt will cost less in the long run. Don’t consolidate debt unless you can get a better interest rate, and check to make sure any fees don’t add costs to the loan.
When to get started: If you have several high-interest debts, generally through credit cards, and can qualify for a lower interest rate with a personal loan, you may want to consider it.
How to get started: Evaluate what debts to consolidate and how much money you could save on interest rates, then get quotes from debt consolidation lenders.
Emergency expenses
Unexpected expenses like a car repair or hospital bill can throw off your monthly budget, and a small personal loan can alleviate the immediate cost.
Who it’s best for: Anyone dealing with a large emergency expense who doesn’t have the option of rainy day savings or a payment plan to pay for it without putting it on a high-interest credit card.
What to watch out for: A loan will cost more because of interest rates, so it’s best to avoid getting a loan unless it is absolutely necessary. Look for the lowest APR you can qualify for, and don’t take out a large loan than you need. If possible, see if there are other options before getting a loan.
When to get started: If there’s an emergency and you need a significant amount of funds in a short time, get started as soon as you know that a personal loan is the best option for you.
How to get started: Apply for loans with lenders that you qualify for, especially considering lenders with quick payments after you are approved so you can handle the emergency as soon as possible.
Home renovations
A personal loan may be a great way to pay for a large home renovation project and boost the equity in your home.
Who it’s best for: People who can make home renovations that will increase the home’s value and can make the payments on the loan without financial hardship.
What to watch out for: The goal is to increase your financial stability, so don’t get a loan with high APRs or fees that will outweigh possible benefits.
When to get started: Apply for a loan once you determine how much you need by getting estimates from contractors. You don’t want to apply for more or less than you need, so you should have a good idea of what to expect first.
How to get started: After you have project estimates, look for lenders that will offer you low APRs.
Major purchases or events
Personal loans are often used to cover major expenses, such as a wedding or vacation.
Who it’s best for: Anyone who needs to make a large purchase.
What to watch out for: It’s not generally a good idea to take on a lot of debt, especially for something that only lasts for a short period of time. It’s better to save up or cut expenses than to be paying for something with added interest for years afterward.
When to get started: If you have determined that a personal loan is the best way to go, apply for the loan by the deadlines you would need for the major event or when you plan to make the large purchase.
How to get started: Shop around with different lenders to find the best option for what you have in mind for your purchase or event.
FAQs about personal loans
APR stands for annual percentage rate. It refers to the extra amount borrowers pay on top of their loan amount, or principal. APR is different from your interest rate; it equals your interest rate plus any loan fees.
Secured loans are backed by a piece of the borrower’s property as collateral, typically a vehicle or house. Because the borrower stands to lose personal property if they default, secured loans tend to have lower interest rates.
Unsecured loans are not backed by collateral, but instead by the borrower’s creditworthiness. Because the lender takes on more of a risk with an unsecured loan, interest rates tend to be higher. Lenders also require that borrowers seeking unsecured loans have higher-than-average credit scores. Learn more about the key differences between secured and unsecured loans.
Personal loan costs vary by lender. For excellent credit, there are some lenders that don’t charge any fees. You’re only responsible for paying back the principal (or the amount you borrowed) plus interest. The lower your interest charges, the less you’ll pay back over the life of the loan.
When it comes to shopping for personal loans, the better your credit score, the more options you have. Generally speaking, there are three main places to get a personal loan:
Online lenders: Because all of the loan application process can be done online, this could be a convenient way to apply and receive funds quickly. Online lenders also make it easy to compare rates, APRs and fees.
Banks: Some banks, like USAA and CitiBank, offer personal loans. Applying with a bank could get you a lower rate if you have an existing checking or savings account with the bank. This could also be a good option if you prefer in-person customer service.
Credit unions: A local credit union may offer more affordable rates and fees than banks and online lenders, especially if you're already a member. However, it's important to be aware that some credit unions may not offer prequalification, so applying could cause a temporary dip in your credit score.
How your personal loan can be used is open as long as it’s for a legal purpose. The most common uses for a personal loan are debt consolidation, home renovations and emergency expenses. However, you can't use personal loan funds to pay for your education costs, and some lenders may restrict usage further. Payoff, for instance, limits its personal loans to credit card debt consolidation.
The exact loan amounts available often depend on your credit score. The good news is that with excellent credit, you'll likely have access to the full range of loan amounts that a lender offers. Most lenders have minimum loan amounts from $1,000 to $5,000, and maximums can stretch from $50,000 to $100,000.
The impact of COVID-19 has left millions of Americans without a reliable source of income, and many may be searching for personal loans to cover emergency expenses. In response to unprecedented market conditions, some banks announced new loan offerings and lower interest rates, though many have also tightened their eligibility requirements.
For existing borrowers, some lenders have extended their loan relief programs into 2021, waiving fees or letting customers temporarily defer payments. Long-term unemployment will mean some borrowers continue to rely on these programs, says Greg McBride, Bankrate’s chief financial analyst. He encourages those who are having trouble making payments on their personal loans to contact their lenders rather than ignoring the problem.
Coronavirus hardship loans are short-term personal loans designed by lenders specifically to help people affected by the coronavirus pandemic. These loans are typically less than $5,000 and may have to be repaid within three years or less. Coronavirus hardship loans are popular among credit unions, in particular. If you need short-term relief, ask your local credit union about its offerings.
Next steps
If you decide that a personal loan is right for your situation, you would follow these steps:
Determine how much you need. Calculate how much money you need, and actor in any origination fees that may be deducted from your loan proceeds.
Check your credit score. The higher your credit score, the better APR you'll receive. Consider a co-signer if you have fair or bad credit for more favorable rates.
Get prequalified. This lets you check your rates with multiple lenders without hurting your credit score.
Compare rates and loan terms. Look at a variety of lenders, including banks, credit unions and online lenders to see which offers you the best deal.
Complete the application process. You’ll need to submit documents such as pay stubs, tax returns and personal identification.
By considering your loan options carefully, you can use personal loans to your advantage and avoid some of the potential financial pitfalls of taking on additional debt.
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