Best Personal Loan Rates for May 2020

Personal loan interest rates currently range from about 5% to 36%. The actual rate you receive depends on multiple factors, such as your credit score, annual income and debt ratios.

Bankrate's guide to choosing the best personal loan rates

By Dori Zinn

As of Sunday, May 24, 2020

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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. Also 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 publish 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, credit requirements and more.

Best personal loan rates in May 2020

Bank
Current APR Range
Loan Term
Min. Loan Amount
Max. Loan Amount
Best for:
SoFi
5.99% - 18.64% (with autopay)
2 to 7 years
$5,000
$100,000
Best overall personal loan
LightStream
3.49% - 16.79% (with autopay)
2 to 12 years
$5,000
$100,000
Best personal loan for generous repayment terms
Avant
9.95% - 35.99%
2 to 5 years
$2,000
$35,000
Best personal loan for people with bad credit
Marcus by Goldman Sachs
6.99% - 28.99%
3 to 6 years
$3,500
$40,000
Best personal loan for debt consolidation
Best Egg
5.99% - 29.99%
3 to 5 years
$2,000
$35,000
Best personal loan for home repairs
Upgrade
7.99% - 35.97%
3 or 5 years
$1,000
$35,000
Best personal loan for fast funding
Payoff
5.99% - 24.99%
2 to 5 years
$5,000
$35,000
Best personal loan for paying credit card debt
Upstart
6.18% - 35.99%
3 and 5 years
$5,000
$30,000
Best personal loan for little credit history
LendingClub
10.68% - 35.89%
3 and 5 years
$1,000
$40,000
Best personal loan for using a cosigner
PenFed
6.49% - 17.99%
1 to 5 years
$600
$20,000
Best personal loan for credit union members
TD Bank
5.67% - 18.99%
1 to 5 years
$2,000
$50,000
Best personal loan for secured options
PNC Bank
Rates as low as 7.49%
Not specified
$1,000
$35,000
Best personal loan for in-person visits

Summary: personal loans in 2020

What is a personal loan?

Personal loans are shorter-term loans consumers can receive from banks, credit unions or private lenders, like online marketplace lenders and non-bank 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.

Borrowers receive a single lump sum that’s repaid over a number of years. Most personal loan terms range from 24 months to 60 months, but some can go as high as 72 months. The typical personal loan is repaid in monthly installments, similar to a car loan or home mortgage.

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 alternative because the approval and funding process is often faster than that of a home equity line of credit.

What are current personal loan rates?

As of May 20, 2020, the average personal loan interest rate is 11.58%. Personal loan rates currently range from about 5% to 36%, depending on your credit score.

The average personal loan interest rates range from 10.3% to 12.5% for “excellent” credit scores ranging from 720-850, 13.5% to 15.5% for "good" credit scores of 690-719, 17.8% to 19.9% for "average" credit scores of 630-689 and 28.5% to 32.0% for “poor” credit scores of 300-629.

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 rates by credit rating

Credit Rating / Score Range Average personal loan interest rate
Excellent (720 - 850) 10.3% - 12.5%
Good (690 to 719) 13.5% - 15.5%
Average (630 to 689) 17.8% - 19.9%
Bad (300 to 629) 28.5% - 32.0%

Rates as of 05/20/2020

How does the coronavirus affect personal loans?

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 have announced new loan offerings and lower interest rates, though many have also begun tightening their eligibility requirements. Borrowers with existing personal loans may be able to take advantage of loan relief programs: While programs vary by lender, it may be possible to temporarily defer payments or waive fees.

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 compared with payday loans, which charge upward of 400%.
  • Unlike highly risky payday loans, personal loans give you a reasonable amount of time to repay.

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 offer co-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.

How to get a personal loan

With so many lenders to choose from, getting a personal loan can be a daunting task. Here are five steps to take when searching for the best personal loan for you:

  1. Determine how much you need. Write down the amount of money you'll need for your loan purpose, whether that's debt consolidation or a home repair. Make sure to factor in any origination fees, which some lenders take out of the total loan amount.
  2. Check your credit score. The lower your credit score, the better APR you'll receive. If you have fair or poor credit, consider adding a co-signer to your loan; a co-signer with good credit will improve your overall credit picture and earn you more favorable rates.
  3. Compare lenders. Many lenders allow you to check your rates using a process called prequalification, which won't hurt your credit score. Look at rates from a variety of lenders, including online lenders, banks and credit unions, to see which offers you the best deal.
  4. Complete the approval process. Once you receive an offer and accept the loan, you will likely have to submit pay stubs, tax documents and personal identification. Many lenders allow you to submit these documents online.
  5. Begin loan payments. After finalizing your loan, you'll likely receive your loan within a week, although many online lenders boast funding in as little as one business day. Make sure to note your first payment due date, and consider setting up automatic payments if they're available; many lenders offer discounts for doing so.

For more information, check out our article on how to get a personal loan.

Reasons to get a personal loan

With the exception of loans from a few niche lenders, like Payoff, most personal loans can be used for any purpose. The most common reasons to get a personal loan are:

  • Debt consolidation. If you have multiple lines of credit card debt, for instance, you can pay them off with a personal loan and repay the loan over time, often with a better interest rate.
  • 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.
  • Home renovations. A personal loan is a great way to pay for a large home renovation project and boost the equity in your home.
  • Major purchase or event. Personal loans are often used to cover major expenses, such as a wedding or vacation.

To learn more, read our article on top 6 reasons to apply for a personal loan.

Details: personal loan rates in 2020

  • Best overall personal loan: SoFi
  • Best personal loan for generous repayment terms: LightStream
  • Best personal loan for people with bad credit: Avant
  • Best personal loan for debt consolidation: Marcus by Goldman Sachs
  • Best personal loan for home repairs: Best Egg
  • Best personal loan for fast funding: Upgrade
  • Best personal loan for paying credit card debt: Payoff
  • Best personal loan for little credit history: Upstart
  • Best personal loan for using a cosigner: LendingClub
  • Best personal loan for credit union members: PenFed
  • Best personal loan for secured options: TD Bank
  • Best personal loan for in-person visits: PNC Bank

Best overall: SoFi

Overview: SoFi, a digital lender, offers products ranging from personal loans to student loan refinancing, private student loans, home loans, investing and various types of insurance. It’s working on becoming an all-encompassing place to save, spend and manage your money.

Perks: SoFi offers a wide range of benefits that go beyond just funding your personal loan. It offers customers an autopay discount and unemployment protection in case you lose your job and can’t afford to repay your loan. It also offers career counseling and a referral bonus if a qualifying friend signs up. Members get personalized financial planning and aren’t charged any fees. Loans, which are fee-free, range from $5,000 to $100,000 and must be repaid in two to seven years. APRs for variable-interest personal loans are capped at 14.95 percent, while other lenders may charge as much as 36 percent. Fixed-rate loans range from 5.99 percent APR to 18.64 percent APR.

What to watch out for: You’ll need to have a solid credit score -- at least 680 -- to take advantage of these perks.

Lender SoFi
Bankrate Rating 4.7 / 5.0
Min. Credit Score 680
Est. APR 5.99% - 18.64% (with autopay)
Loan Amount $5,000 - $100,000
Term Lengths 2 to 7 years
Min. Annual Income None
Fees None

Read Bankrate's expert SoFi Review

Best loans for generous repayment terms: LightStream

Overview: LightStream, a division of Truist, offers loans for practically any occasion and generous repayment terms. It offers auto loans, home improvement loans, loans for a medical emergency, loans for a family need and more.

Perks: Repayment terms range from two to 12 years, which means you can take longer to pay off your loan and benefit from lower monthly payments. Maximum loan amounts go up to $100,000, which is good if you need to borrow more money. There are no fees and no prepayment penalties, and you get a discount on your interest rate when you sign up for autopay.

What to watch out for: You’ll need to prove you have a few years’ worth of credit history with many different account types to qualify. Delinquencies, defaults and late payments could hurt your eligibility chances.

Lender LightStream
Bankrate Rating 4.6 / 5.0
Min. Credit Score 660
Est. APR 3.49% - 16.79% (with autopay)
Loan Amount $5,000 - $100,000
Term Lengths 2 to 12 years
Min. Annual Income None
Fees None

Read Bankrate's expert LightStream Review

Best loan for people with bad credit: Avant

Overview: Avant specializes in lending to people with fair or poor credit. Not everyone has great credit, but that doesn’t mean they shouldn’t be able to have the chance to borrow a loan.

Perks: Most Avant customers have a credit score between 600 and 700. You can get your money within a day after getting approved and take advantage of fixed interest rates. Loans start as low as $2,000, which is helpful if you don’t need to borrow a lot of money but still need access to cash. Terms go as high as five years. This is helpful if you need to have low monthly payments to ensure you make them on time.

What to watch out for: Interest rates start at 9.95 percent APR and can go as high as 35.99 percent APR, which is higher than those of other lenders. Avant also charges a 4.75 percent administration fee and late fees as high as $25.

Lender Avant
Bankrate Rating 4.5 / 5.0
Min. Credit Score 600
Est. APR 9.95% - 35.99%
Loan Amount $2,000 - $35,000
Term Lengths 2 to 5 years
Min. Annual Income None
Fees Administration fee, late fee

Read Bankrate's expert Avant Review

Best loan for debt consolidation: Marcus by Goldman Sachs

Overview: A debt consolidation loan is a loan that is used to pay off multiple outstanding debts. You’ll borrow money with one loan to pay off many smaller loans or credit cards that were charging much higher interest rates. Then you make one monthly payment to your new loan. Marcus offers debt consolidation loans to simplify your debt, making it easier to pay so you don’t fall behind.

Perks: Interest rates start as low as 6.99 percent, and you can borrow as much as $40,000 to pay off outstanding debt. Marcus doesn’t charge any fees. You also have the chance to change your monthly due date up to three times during the life of the loan based on what works best for your finances.

What to watch out for: You’ll need a credit score of at least 660 to qualify for a Marcus personal loan. No co-signers are allowed.

Lender Marcus by Goldman Sachs
Bankrate Rating 4.8 / 5.0
Min. Credit Score 660
Est. APR 6.99% - 28.99%
Loan Amount $3,500 - $40,000
Term Lengths 3 to 6 years
Min. Annual Income None
Fees None

Read Bankrate's expert Marcus by Goldman Sachs Review

Best for home repairs: Best Egg

Overview: Best Egg offers personal loans for a variety of purposes, whether it’s debt consolidation, credit card refinancing, family needs or home improvements.

Perks: Best Egg offers loans starting as low as $2,000, and you can borrow as much as $35,000. Interest rates start as low as 5.99 percent for those with the best credit. There are no prepayment penalties for paying off your loan early.

What to watch out for: Origination fees range from 0.99 percent to 5.99 percent, and $15 late payment fees are charged within three days of a missed payment.

Lender Best Egg
Bankrate Rating 4.7 / 5.0
Min. Credit Score 640
Est. APR 5.99% - 29.99%
Loan Amount $2,000 - $35,000
Term Lengths 3 to 5 years
Min. Annual Income None
Fees Origination fee: 0.99% to 5.99% of the loan amount; Late fee: $15

Read Bankrate's expert Best Egg Review

Best for fast funding: Upgrade

Overview: You can get your funds within a day with an Upgrade loan. Loan amounts range from $1,000 to $35,000, and you can use your personal loan for anything: debt consolidation, home improvement or covering a major expense.

Perks: Terms from three to six years let you pay off your loan on a schedule that’s best for your budget. Interest rates start at 7.99 percent as long as you have strong credit to qualify for it.

What to watch out for: All personal loans come with a 2.9 to 8 percent origination fee. There’s also a $10 failed payment or late fee if you don’t pay within 15 days of your due date.

Lender Upgrade
Bankrate Rating 4.8 / 5.0
Min. Credit Score Not specified
Est. APR 7.99% - 35.97%
Loan Amount $1,000 - $35,000
Term Lengths 3 or 5 years
Min. Annual Income None
Fees Origination fee: 2.9% to 8% of the loan amount; Late fee: Up to $10

Read Bankrate's expert Upgrade Review

Best loan for paying credit card debt: Payoff

Overview: Payoff loans are specifically geared toward borrowers who want to pay off high-interest credit card debt. If you’re struggling to get out of credit card debt and facing mounting interest rates, you can use a Payoff loan to get rid of it and then make fixed monthly payments to your one Payoff loan.

Perks: You have access to your free FICO score, updated monthly. There’s no penalty for paying off your loan early or making additional payments. There are also no late payment fees or fees if you have a returned check.

What to watch out for: You’ll need to have a credit score of at least 640 and three years of established credit to qualify. Loans get funded between two and five business days after approval, which is slower than many other online lenders. There’s also an origination fee of 0 to 5 percent.

Lender Payoff
Bankrate Rating 4.6 / 5.0
Min. Credit Score 640
Est. APR 5.99% - 24.99%
Loan Amount $5,000 - $35,000
Term Lengths 2 to 5 years
Min. Annual Income None
Fees Origination fee

Read Bankrate's expert Payoff Review

Best loan for little credit history: Upstart

Overview: 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.

Perks: You can apply even if you don’t have a long credit history. If you’re relatively new to borrowing money, you might be eligible. There’s no prepayment penalty for paying off your loan early, and you can borrow as little as $5,000.

What to watch out for: Co-signers aren’t allowed, and Upstart charges an origination fee and a late fee.

Lender Upstart
Bankrate Rating 3.8 / 5.0
Min. Credit Score 620
Est. APR 6.18% - 35.99%
Loan Amount $5,000 - $30,000
Term Lengths 3 and 5 years
Min. Annual Income None
Fees Late fee of 5% or $15, origination fee of up to 8%

Read Bankrate's expert Upstart Review

Best loan for using a cosigner: LendingClub

Overview: If you’re struggling to find a lender that will let you borrow, you might need to enlist the help of a co-signer. Unfortunately, not every lender offers the option to do this. LendingClub lets you apply with a co-signer or a joint application.

Perks: LendingClub allows you to use a co-signer to qualify for a loan you wouldn’t otherwise have gotten. Or, use a co-signer to qualify for the lowest interest rate available. At LendingClub, rates start at 10.68 percent. There’s also a 15-day grace period in case you can’t pay your loan the day it’s due.

What to watch out for: It takes around four days to receive your funds. There’s also an origination fee ranging from 2 to 6 percent.

Lender Partner LendingClub
Bankrate Rating 4.5 / 5.0
Min. Credit Score 600
Est. APR 10.68% - 35.89%
Loan Amount $1,000 - $40,000
Term Lengths 3 and 5 years
Min. Annual Income None
Fees Origination fee 2% to 6%

Read Bankrate's expert LendingClub Review

Best loan for credit union members: PenFed

Overview: You don’t need to go with a traditional bank or online lender to find the best deals. Credit unions also offer personal loans. While PenFed is geared toward military and service members, there are other ways to become a member.

Perks: APRs start at 6.49 percent, and you can get a loan as low as $600.

What to watch out for: You’ll need to become a member of PenFed before receiving a personal loan.

Lender PenFed
Min. Credit Score Not specified
Est. APR 6.49% - 17.99%
Loan Amount $600 - $20,000
Term Lengths 1 to 5 years
Min. Annual Income None
Fees None

Best loan for secured options: TD Bank

Overview: TD Bank offers three different types of personal loans: the TD Express Loan, the Unsecured Loan and the Personal Secured Loan. Each type comes with its own APR range, loan amounts and terms, so you have the flexibility to choose the personal loan that's right for you.

Perks: While getting an online loan is usually fast and easy, it’s not always the most convenient option for everyone. If you need to visit a branch to talk to a human about borrowing a personal loan, try TD Bank. You can apply online, over the phone or at your local branch. The highest APR is 18.99 percent, while other lenders go as high as 35.99 percent. The bank also offers a 0.25 percent autopay discount if you use your TD Bank personal checking or savings account to make payments.

What to watch out for: TD Bank charges a late fee of 5 percent or $10, whichever is less. Its Secured Loan also charges a $50 origination fee.

Lender TD Bank
Bankrate Rating 4.2 / 5.0
Min. Credit Score 660
Est. APR 5.67% - 18.99%
Loan Amount $2,000 - $50,000
Term Lengths 1 to 5 years
Min. Annual Income None
Fees Late fee of 5% or $10, origination fee of $50 for secured loan

Read Bankrate's expert TD Bank Review

Best loan for in-person visits: PNC Bank

Overview: Sometimes you just need to see someone face to face. PNC Bank has 2,400 locations across 37 states.

Perks: There are no application, origination or prepayment fees with PNC personal loans. You can apply online, over the phone or in person. Loan amounts start at $1,000, and you can apply with a co-applicant, which can help you qualify if you wouldn’t on your own.

What to watch out for: PNC products and features vary by location. When you visit PNC Bank online, you’re required to enter your ZIP code before seeing offers. PNC is also not transparent about its eligibility requirements and repayment terms, making it harder to determine if the bank is the right choice for you.

Lender PNC Bank
Bankrate Rating 4.1 / 5.0
Min. Credit Score Not specified
Est. APR Rates as low as 7.49%
Loan Amount $1,000 - $35,000
Term Lengths Not specified
Min. Annual Income None
Fees None

Read Bankrate's expert PNC Bank Review

What you need to know about personal loans:

What is APR?

APR stands for Annual Percentage Rate. APR 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.

For more detail on how APR can affect your monthly payments, check out our personal loan calculator.

What's the difference between a secured loan and an unsecured loan?

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 an unsecured loan have a higher-than-average credit score.

What's a repayment term?

A repayment term refers to the length of time borrowers have to repay their loan. A personal loan's repayment term is typically between one and 10 years, depending on the lender.

How does my credit score affect my offer?

Because personal loans are often unsecured, they may come with higher APRs than other types of loans. With unsecured loans, lenders tend to pay extra attention to a borrower's credit score.

The lower a borrower's credit score is, the more they'll have to pay in interest. Lower credit scores can lead to APRs in the double digits. Loan rates differ by lender, but often opting for a secured loan can help lower APR, even for someone with bad credit. In some cases, secured loans can offer up to 6% less in APR than unsecured loans.

What’s the difference between fixed-rate and variable interest?

Depending on the loan and the lender, you may have a choice between fixed rate (which stays the same over the life of the loan) or variable (which can rise or fall depending on changes in the market).

The interest on a variable-rate loan often starts low but may increase over time. The terms of the loan agreement will specify how often the lender is allowed to raise the interest rate, and some loans cap the maximum rate at a certain percentage. By contrast, the payments and interest charges on a fixed-rate loan will remain the same.

Base your decision on whether you prefer the stability of a fixed rate or the possibility of saving on interest with a variable rate.

Is a personal loan worth it?

A personal loan could be a good option for you if you need a large sum of money upfront and the stability of a predictable monthly payment. Personal loans typically have better APRs than credit cards or lines of credit, and most personal loans maintain that fixed rate over the life of the loan.

However, before committing to a personal loan, make sure to carefully weigh the APR you're offered to make sure a monthly loan payment fits into your budget. Some loans have repayment periods as long as 10 years, and some companies charge a fee if you choose to pay off your loan early. It's also important to take out only as much as you need for your project or expense; borrowing extra will increase your monthly payments and the total amount you'll pay in interest.

If you're unsure if you can afford a loan, try using a personal loan calculator to see how much you'll pay in interest on top of the cost of your loan.

What is a good interest rate on a personal loan?

A "good" interest rate on a personal loan depends on your credit score. In general, you should look for a rate below the average APR — 10.3 percent to 12.5 percent for excellent credit, 13.5 percent to 15.5 percent for good credit, 17.8 percent to 19.9 percent for average credit and 28.5 percent to 32 percent for bad credit.

The rate you're quoted depends on many factors, including your credit score, credit history and annual income. Many lenders allow for prequalification, a step which allows you to see if you're eligible for a loan without a hard pull on your credit score. Checking your rate with a few companies can help you determine which will offer you the best APR.

Additional personal loan resources