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.
Edited by
Aylea WilkinsLoans Editor, Former Insurance Editor
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.
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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.
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 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.
If you decide that a personal loan is right for your situation, you would follow these steps:
1
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.
2
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.
3
Get prequalified.
This lets you check your rates with multiple lenders without hurting your credit score.
4
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.
5
Complete the application process.
You’ll need to submit documents such as pay stubs, tax returns and personal identification.
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:
1
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.
2
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.
3
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.
4
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.
5
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.
6
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.
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Answer a few questions in two minutes or less to see which personal loans you pre-qualify for. It's free and will not impact your credit score.
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.
o Lowest rate is with AutoPay and for excellent credit only
o Loans from $5,000 - $100,000
o Same-day funding available (conditions apply)
o We guarantee your best-funded loan experience ever
* Applications submitted on this website may be funded by one of several lenders, including: FinWise Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Actual loan offers and loan amounts, terms, and annual percentage rates ("APR") may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 7% may apply depending upon your state of residence. Upon final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. Loans are offered from $2,000 to $36,500, at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 72 months. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $1,500. For a well-qualified customer, a $10,000 loan for a period of 48 months with an APR of 24.34% and origination fee of 7% will have a payment of $327.89 per month. (Actual terms and rate depend on credit history, income, and other factors.) Customers may have the option to deduct the origination fee from the disbursed loan amount if desired. If the origination fee is added to the financed amount, interest is charged on the full principal amount. The total amount due is the total amount of the loan you will have paid after you have made all payments as scheduled.
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 —You should receive your funds within a day of clearing 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 Annual Percentage Rates (APRs) of 6.95%-35.97%. All personal loans have a 1.85% 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 17.59% APR (which includes a 13.94% 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 $341.48. Over the life of the loan, your payments would total $12,293.46. 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.
†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 one (1) business day. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.
Fast Funding —You should receive your funds within a day of clearing verifications†
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 08.2022
*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 7.99%–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%–8.99% 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. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories.
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
*Personal Loan Disclaimer Fixed rates from 7.99% APR to 22.73% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 8/1/22 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 prepayment penalties, application fees, late fees, or hidden fees. Because no one wants to do that
You can consolidate all your credit card payments down to one monthly, affordable, fixed-rate payment between 5.99% and 24.99% APR
"This does not constitute an actual commitment to lend or an offer to extend credit. Upon submitting a loan application, you may be asked to provide additional documents to enable us to verify your income, assets, and financial condition. Your interest rate and terms for which you are approved will be shown to you as part of the online application process. Most applicants will receive a variety of loan offerings to choose from, with varying loan amounts and interest rates. Borrower subject to a loan origination fee, which is deducted from the loan proceeds. Refer to full borrower agreement for all terms, conditions and requirements."
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, our evaluation of your creditworthiness, your credit history, if we have recently declined your loan application and the number of loans you already have with us. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. 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. You may be required to have some of your funds sent directly to creditors to pay down certain types of unsecured debt. Receive a 0.25% 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.
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.
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.
Check rate with Bankrate
The Bankrate guide to choosing the best personal loan
Why trust Bankrate?
At Bankrate, we strive to make the personal loan experience simple and straightforward. 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.
We compare lenders based on availability, affordability and customer experience. Our goal is to provide you with all the information you need to make informed borrowing decisions. The lenders we highlight have been assessed for low APRs, good lending terms, low fees and good customer service.
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 typically 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.
Overview:SoFi offers a variety of loan amounts and repayment terms, and does not charge any fees. SoFi offers loans from $5,000 to $100,000 with term lengths from 2 to 7 years.
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, several repayment terms and zero fees. It also adds perks to help borrowers improve their financial stability and career, including the option to add a co-signer to your loan.
Pros
Soft credit check with prequalification
Variety of loan amounts and term lengths
Unemployment protection in case of job loss
Cons
Minimum credit annual income of $45,000 required
Minimum credit score of 680 required
No co-signers
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.
Time to receive funds: Money is generally available within a few days. Larger loans may take longer than usual to process.
Fees: SoFi does not charge any kind of fees.
Additional requirements: SoFi does not provide additional requirement details on its website. However, its average borrower tends to have a high annual income.
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.
Overview:Lightstream is ideal for borrowers who want a longer repayment term and lower monthly payments on their loan. Lightstream also lets borrowers choose when to receive the loan money, allowing for further financial planning.
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.
Pros
Range of repayment term length options from 2 to 12 years
Range of loan amount options up to $100,000
Borrowers can choose when to receive the money
Cons
Requires several years of credit history
High minimum loan amount of $5,000
No due date flexibility
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.
Time to receive funds: Money may be available as soon as the same day if the loan is approved before 2:30 EST on a weekday.
Fees: LightStream does not charge any fees.
Additional requirements: Borrowers must have several years of credit history with multiple types of credit, payment history with few delinquencies, as well as retirement savings, investments or other savings showing the ability to save money.
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.
Overview:Avant is a popular lender for borrowers with fair to poor credit. Its minimum credit score requirement is 580 FICO and 550 Vantage, lower than many other lenders. Avant is also a good choice for borrowers who haven’t built up much credit yet.
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.
Pros
Long possible loan terms
Low minimum credit score of 580
Other household members' income can be used to qualify
Cons
High minimum APR of 9.95 percent
No co-signers or co-borrowers
Maximum debt-to-income ratio of 70 percent
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.
Time to receive funds: Money may be available as soon as the next business day. Certain banks and other financial institutions may take longer.
Fees: Avant charges an administration fee of 4.75 percent, a late fee of $25 and a dishonored payment fee of $15.
Additional requirements: Borrowers must have a debt-to income ratio of 70 percent or lower to qualify. While Avant does not allow co-borrowers or co-signers, the income of household members can help someone qualify for a loan.
Special features: Avant claims it can deposit funds the day after the loan is approved.
Overview:Marcus allows borrowers to choose from nine different repayment plans and allows deferred payments with no added interest. These parameters make it easier for borrowers to customize their loan experience and consolidate existing debt without too many added costs.
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.
Pros
No fees with good credit
Option to defer payment without interest
Variety of repayment options
Cons
Required at least a good credit score
No joint loans
Eligibility requirements not disclosed
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.
Time to receive funds: Approval generally takes less than 24 hours, but funding may take up to four business days.
Fees: Marcus does not charge any fees.
Additional requirements: Borrowers may have to provide proof of income. Marcus does not specify many of the eligibility requirements.
Special features: Borrowers can choose from nine repayment plans to make the loan work for them.
Overview:Best Egg offers a low minimum APR of 7.99 percent and a reasonable rate cap of 35.99 percent. These relatively low rates make Best Egg a good option for borrowers looking to cut down on interest. This lender also offers flexible loan amounts ranging from $2,000 to $50,000 and is able to make direct payments to creditors on behalf of borrowers who take out debt consolidation loans.
Why Best Egg is the best personal loan for low APRs: Best Egg’s interest rates start as low as 7.99 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.
Pros
Low starting loan amounts in some states
Direct payment to creditors for debt consolidation borrowers
Range of loan amount options from $2,000 to $50,000
Cons
Minimum credit score of 640
Loan information unclear on the website
APRs up to 35.99%
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.
Time to receive funds: Money will be available as soon as the next business day after approval.
Fees: Best Egg charges an origination fee of 0.99% to 8.99%, a late fee of $15 and a returned payment fee of $15.
Additional requirements: Borrowers must have a debt-to-income ratio of 40 to 65 percent or lower to qualify.
Special features: If you get a debt consolidation loan, Best Egg can do direct payment to your creditors to make debt consolidation easier.
Overview:Upgrade offers a wide range of loan amounts from $1,000 to $50,000 and a reasonable rate cap of 35.97 percent. Borrowers are able to receive their money as soon as the next business day after being approved, making Upgrade an ideal lender for those who need quick funding.
Why Upgrade is the best personal loan for fast funding: You can get your funds within one business day after approval with an Upgrade loan.
Pros
Option to add a co-borrower
Range of loan amounts from $1,000 to $50,000
Direct payment to creditors for debt consolidation borrowers
Cons
Minimum income and credit score not specified
Origination fee of 1.85 to 8 percent
Maximum debt-to-income ratio of 75 percent
Who this lender is best for: People with fair or bad credit who need help improving credit or want to use a co-borrower for their loan.
Impact on financial wellness: Upgrade has co-borrower and secured options so people can get a loan that may help improve their credit.
Time to receive funds: Money could be available the next day after the loan is approved. Generally, funds will arrive within four business days, but loans sent directly to creditors may take up to two weeks.
Fees: Upgrade charges an origination fee of 2.9 percent to 8 percent, a late fee of up to $10 and a returned check fee of $10.
Additional requirements: Borrowers must have at least two credit accounts and a debt-to-income ratio of less than 75 percent to apply.
Special features: Upgrade can send funds directly to creditors with debt consolidation loans.
Overview:Payoff offers low APRs of 5.99 percent to 24.99 percent, making it an ideal lender for borrowers trying to consolidate credit card debt at a lower interest rate. This lender also offers free monthly FICO updates and reports payments to major credit bureaus in order to help borrowers build credit.
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.
Pros
Low minimum APR of 5.99 percent
Free monthly FICO updates
7 days a week customer service
Cons
Origination fee up to 5 percent
Requires several years of credit history
Can only be used for credit card consolidation
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.
Time to receive funds: Funds generally arrive between three and five business days.
Fees: Payoff charges an origination fee of up to 5 percent, but it does not charge other common fees.
Additional requirements: Borrowers must have a minimum of three years of credit history, at least two open credit accounts, no bankruptcies within the last two years and zero credit delinquencies.
Special features: Payoff offers free monthly FICO updates and reports payments to the major credit bureaus to help people build credit.
Overview:Upstart evaluates an individual’s entire financial picture when considering loan applications, not just credit history. This lender also lets borrowers change their payment dates in certain situations.
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.
Pros
No minimum credit score requirement
Option to change payment dates
Range of loan amounts from $1,000 to $50,000
Cons
No joint loan options
Paper copies fee
Eligibility requirements not specified
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.
Time to receive funds: Money may be available in as soon as one business day.
Fees: Upstart charges a late fee of either 5 percent of the monthly amount past due or $15, whichever is greater. It also charges an origination fee of up to 8 percent, a returned check fee of $15 and a one-time paper copies fee of $10.
Additional requirements: Applicants need a full-time job or job offer or another source of regular income that provides at least $12,000 a year. Upstart does not disclose additional requirements on its website.
Special features: Upstart lets borrowers change their payment date in some situations.
Overview:LendingClub allows borrowers to add co-signers to their loans, making this a good fit for those who may not be able to qualify for a loan on their own, or who haven’t had a chance to build up their credit history yet. LendingClub is also a good option for debt consolidation, as it offers the option to pay creditors directly. This lender also allows borrowers to change their payment dates, providing flexibility for those who need it.
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.
Pros
Option to submit joint application
Option to change payment date
Direct payment to creditors for debt consolidation borrowers
Cons
High maximum APR of 35.89 percent
Origination and late fees
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.
Time to receive funds: Money may be available as soon as two days after approval.
Fees: LendingClub charges an origination fee of 3 to 6 percent and a late fee of either 5 percent or $15.
Additional requirements: Applicants must be U.S. citizens, permanent residents or long-time Visa holders and have a verifiable bank account. LendingClub does not disclose additional requirements on its website.
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.
Overview:PenFed offers a wide range of loan amounts from $600 to $50,000, making it ideal for borrowers who only need to borrow a small amount. PenFed also has seven days a week customer service and a low minimum APR of 6.74 percent. Since PenFed is a credit union, becoming a member also comes with added perks and opportunities to improve your financial wellness.
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.
Pros
Low minimum loan amount of $600
Seven days a week customer service
Low minimum APR of 6.74 percent
Cons
Eligibility requirements not specified
PenFed savings account required
Co-signers are not permitted
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.
Time to receive funds: Money will be available in one to two business days after approval, or the same day if the borrower closes at a branch location. Checks may take five to seven business days.
Fees: PenFed charges a late fee of $29 and a returned payment fee of $30.
Additional requirements: PenFed does not disclose additional requirements on its website, but borrowers are required to maintain a PenFed savings account.
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.
Overview:TD Bank offers personal loans from $2,000 to $50,000 and has a low APR rate cap of 18.99 percent. TD Bank offers personal loans in 15 states.
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.
Pros
Wide range of loan amounts
Soft credit check with prequalification
Option to change the payment date
Cons
Eligibility requirements not specified
Only available in 15 states
No direct payments to creditors
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.
Time to receive funds: Money may be available as soon as the day after approval.
Fees: TD Bank charges a late fee of 5% of the minimum payment due or $10, whichever is less.
Additional requirements: Borrowers must be at least eighteen-years-old and give a Social Security Number. TD Bank does not disclose additional requirements on its website.
Special features: TD Bank offers fast payment to you and the ability to change your payment date.
Overview:For those looking for in-person service, PNC has 2,300 locations. Borrowers who already have a relationship with PNC are eligible for an autopay percentage rate discount. PNC Bank also allows borrowers to submit joint applications.
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.
Pros
Range of term lengths from 6 months to 5 years
Autopay discount for existing PNC customers
Option to submit joint applications
Cons
Low maximum loan amount of $35,000
Eligibility requirements not disclosed
Branch visit may be required to close
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.
Time to receive funds: PNC does not specify how long funding takes after approval.
Fees: PNC charges a fee for late payments, but the exact amount is not specified.
Additional requirements: PNC does not disclose additional requirements on its website.
Special features: PNC Bank offers a small discount to existing customers and joint applications.
What are current personal loan interest rates?
Personal loan interest rates currently range from about 3 percent to 36 percent, depending on your credit score. As of July 20th, 2022, the average personal loan interest rate is 10.60 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.
How the 2022 Fed hike impacts personal loans
In order to combat inflation, the Federal Open Market Committee (FOMC) raised interest rates three-quarters of a percentage point in June, making the new benchmark 1.5-1.75 percent. Officials from the Federal Reserve have indicated that there is likely to be another 0.75 percentage-point rate rise at the FOMC’s upcoming meeting.
These rate hikes impact personal loan interest rates. Most personal loans have fixed interest rates, so borrowers who already have personal loans do not need to worry. However, those looking to take out a personal loan may face higher interest rates.
The average personal loan interest rate has risen from 10.41 percent at the beginning of May 2022 to 10.60 percent as of July 20th, 2022. Personal loan interest rates are likely to continue rising if the Fed raises the prime rate again at its next meeting.
Despite rising interest rates, there are things borrowers can do to cut down on costs when taking out personal loans. The rate you receive from a lender depends on factors within your control such as your credit score, desired loan amount and existing debts.
If you want to take out a personal loan and are looking to qualify for a better interest rate, here are some things you can do:
Prequalify. If you are unsure what interest rate you might qualify for with a lender, the easiest way to find out is by prequalifying online. Most lenders allow you to do this without hurting your credit score. Prequalifying can help you decide between lenders as well as help you determine what you might need to work on.
Check your credit. Your credit score impacts the rates and lenders you will likely qualify for. Knowing where you stand can help you figure out where to look. If you have less than stellar credit, bad credit loans tend to have reasonable interest rates for low credit borrowers.
Pay off other debts. If you have time and are able to do so, it is smart to work down existing debt before taking on more. Having less debt when you apply for a personal loan improves your chances of getting a lower interest rate.
Reduce your loan amount and repayment term. If you are able to, it may be smart to take out a smaller loan. The larger the loan you take out, the higher the interest rate is likely to be. In addition, larger loans come with longer repayment periods, which means you will pay more in interest over the life of the loan.
Apply with a co-borrower. Applying for a loan with someone else may allow you to qualify for a lower interest rate, especially if your co-applicant has stronger credit.
Shop around and compare rates. Each lender offers unique features, requirements and benefits. It is always important to do your research and prequalify with a few lenders before deciding on one. The best lender for someone else may not be best for you.
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:
Personal loans come in one lump sum, usually with a fixed interest rate, which helps keep monthly payments on track.
You can get money quickly, sometimes within as little as a day, depending on the lender you choose.
Many are unsecured loans, which means you don't need collateral like your home or car to borrow money.
Interest rates are much lower than those of payday loans, which charge upward of 400 percent.
Flexibility and versatility allow you to use a personal loan for almost any purchase.
Unlike highly risky payday loans, personal loans give you a reasonable amount of time to repay the loan.
You may have easer payments if you conslidate debt and have a single, fixed-rate monthly payment instead of several accounts to manage.
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.
You can increase your overall debt if you use it to consolidate your debt but continue to spend on your credit cards.
Personal loans often have higher monthly payments than the minimum payment on credit cards, which can make it harder to manage your finances.
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 compare top lenders. Get quotes from lenders to estimate how much you could save.
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: After you have project estimates, look for lenders that offer home improvement loans and find the one that will offer you low APRs.
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. The lender that will work best for you depends on your needs. For example, if you are looking to buy a boat, try looking into lenders that offer boat loans. If you want to buy an RV, an RV loan may help you find options that will work best for you.
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.
You will generally need several documents to apply for a personal loan, including documents that prove your identity and financial status. You'll generally need at least ID, income verification and proof of address. These documents and the rest of your information will help the lender determine what origination fee you will pay if applicable.
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.
Lenders use this information to determine if you meet their borrowing criteria, so it helps to calculate your debt-to-income ratio before you apply. First, add up your debts and your monthly income. Divide your monthly debts by your monthly gross income to determine your ratio.
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.
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 32 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.
