Best Personal Loan Rates for February 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 personal loans

By Dori Zinn

Last updated: February 05, 2020

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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 loans of 2020

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. They offer customers an autopay discount and unemployment protection in case you lose your job and can’t afford to repay your loan. They also offer 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. Variable interest rates on 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 20.01 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 4.1 / 5.0
Min. Credit Score 680
Est. APR 6.20% - 15.24% (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 anything: Lightstream

Overview: LightStream, a division of Truist, offers loans for practically any occasion and generous repayment terms. They offer auto loans, home improvement loans, loans for a medical emergency, a family need and countless other reasons you might need to borrow money.

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, 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, default and late payments could hurt your eligibility chances.

Lender Lightstream
Bankrate Rating 4.0 / 5.0
Min. Credit Score 660
Est. APR 4.99%-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: Good option for those who have a credit score of at least 580, although most customers have a score between 600 and 700. 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 compared to other lenders. Avant also charges a 4.75 percent administration fee and late fees can apply if you don’t make a payment on time.

Lender Avant
Bankrate Rating 4.0 / 5.0
Min. Credit Score 580
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 upwards of $40,000 to pay off outstanding debt. Marcus doesn’t charge any fees, ever. 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 3.7 / 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 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 and 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 3.7 / 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 percent to 5.99 percent 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 $50,000. 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 5.99 percent as long as you have strong credit to qualify for it.

What to watch out for: The 1.5 to 6 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 4.1 / 5.0
Min. Credit Score 620
Est. APR 5.99% - 35.89%
Loan Amount $1,000 - $50,000
Term Lengths 3 or 5 years
Min. Annual Income None
Fees Origination fee: 1.5 percent to 6 percent 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 continue to face 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 whenever you want. There are 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. There’s also an origination fee of 0 to 5 percent.

Lender Payoff
Bankrate Rating 3.6 / 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

Overiew: While Upstart has minimum credit score requirements, they evaluate 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 $1,000.

What to watch our for: Co-signers aren’t allowed and there’s a late fee of 5 percent or $15, whichever is less.

Lender Upstart
Bankrate Rating 3.8 / 5.0
Min. Credit Score 620
Est. APR 6.46% - 35.99%
Loan Amount $1,000 - $50,000
Term Lengths 3 and 5 years
Min. Annual Income None
Fees Late fee of 5% or $15

Read Bankrate's expert Upstart Review

Best loan for using a cosigner: LendingClub

Overview: If you’re struggling to find a lender who 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: 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 6.95 percent. There’s 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 1 to 6 percent.

Lender LendingClub
Bankrate Rating 3.3 / 5.0
Min. Credit Score 600
Est. APR 6.95% - 35.89%
Loan Amount $1,000 - $50,000
Term Lengths 3 and 5 years
Min. Annual Income None
Fees Origination fee 1% 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. Try a credit union near you or apply through PenFed. While PenFed is geared toward military and service members, there are other ways to become a member. But you will need to make a donation to a selection of charities before getting approved.

Perks: APRs start at 6.49 percent, and you can get a loan as low as $500.

What to watch out for: You’ll need to become a member of PenFed before applying for a personal loan. You can’t see if you prequalify before applying, which means you could get denied and still have the hard inquiry go on your credit report.

Lender PenFed
Min. Credit Score Mid-600s
Est. APR 6.49% - 17.99%
Loan Amount $500 - $25,000
Term Lengths 1 to 5 years
Min. Annual Income None
Fees None

Best loan for using a convenient bank: TD Bank

Overview: TD Bank has 1,300 locations across the East Coast, and they’re open seven days a week.

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. Their highest APR is 18.99 percent, while other lenders go as high as 35.99 percent. They also offer 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: Late fee of 5 percent or $10, whichever is less.

Lender TD Bank
Bankrate Rating 4.2 / 5.0
Min. Credit Score 660
Est. APR 6.99% - 18.99%
Loan Amount $2,000 - $50,000
Term Lengths 1 to 5 years
Min. Annual Income None
Fees None

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. You can apply online, over the phone or in person. Minimum loan amounts start at $1,000 and you can have repayment terms as short as six months. You’re also allowed to 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 their offers. That means you might not have the same benefits or products as others that live somewhere else. APRs also vary by location, but you might get one as low as 5.74 percent. The more money you borrow, the lower your APR. There’s no prequalification option, which means you’ll face a hard inquiry when you apply, even if you’re rejected.

Lender PNC Bank
Bankrate Rating 4.1 / 5.0
Min. Credit Score 680
Est. APR 5.74% - 11.24%
Loan Amount $1,000 - $35,000
Term Lengths 6 months to 5 years
Min. Annual Income None
Fees Late payment of $10 or 40%, whichever is higher

Read Bankrate's expert PNC Bank Review

Summary of the best personal loan companies of 2020

Best for
Est. APR
Loan Term
Loan Amount
Best overall personal loan
6.20% - 15.24% (with autopay)
2 to 7 years
Best personal loan for anything
4.99%-16.79% (with autopay)
2 to 12 years
Best personal loan for people with bad credit
2 to 5 years
Marcus by Goldman Sachs
Best personal loan for debt consolidation
3 to 6 years
Best Egg
Best personal loan for home repairs
5.99% - 29.99%
3 to 5 years
Best personal loan for fast funding
5.99% - 35.89%
3 or 5 years
Best personal loan for paying credit card debt
5.99% - 24.99%
2 to 5 years
Best personal loan for little credit history
6.46% - 35.99%
3 and 5 years
Best personal loan for using a cosigner
6.95% - 35.89%
3 and 5 years
Best personal loan for credit union members
6.49% - 17.99%
1 to 5 years
TD Bank
Best personal loan for using a convenient bank
6.99% - 18.99%
1 to 5 years
PNC Bank
Best personal loan for in-person visits
5.74% - 11.24%
6 months to 5 years

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 loans 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 process is fairly quick and you can also receive your lump sum sooner than obtaining a home equity line of credit.

Personal loan interest rates

Personal loan rates currently range from about 5% to 36%, depending on your credit score. As of Feb. 19, 2020, the average personal loan interest rate is 11.44%.

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 2/19/2020

Reasons for personal loans

Some of the most common reasons people consider a personal loan are:

Pros and cons of personal loans


  • 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.
  • They’re 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%.


  • APRs are higher compared with 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 apply for a personal loan

How to get a personal loan in 8 steps:

  1. Run the numbers.
  2. Check your credit score.
  3. Consider your options.
  4. Choose your loan type.
  5. Shop around for the best rates.
  6. Pick a lender and apply.
  7. Provide necessary documentation.
  8. Accept the loan and start making payments.

Frequently asked questions about personal loans:

What is APR?

APR stands for Annual Percentage Rate. APR refers to the extra amount borrowers pay in interest and fees on an annual basis. Lenders calculate APR on a yearly basis, but borrowers are most often responsible for paying APR on a monthly basis.

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 can vary between one and ten 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. 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 APR. 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 8% 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.

The bottom line

The personal loan landscape has changed dramatically in ways that make it more efficient for both borrowers and lenders, McBride says.

“Credit availability is better, rates are more competitive and the quick turnaround is a sharp contrast from getting a home equity loan instead,” he says.

Personal loans that are used to pay off higher interest debt can be a great tool to save money on interest over time, Triggs adds.

“Avoiding the pitfalls of getting back into credit card debt, which is one of the biggest issues for consumers who struggle paying their personal loans, is critical to meeting your goal of paying off your debt in a shorter amount of time,” Triggs says. “Remember, you can never borrow your way out of debt. Moving debt from one place to another can save you money, but only your consistent payments and dedication towards your goal will get you out of debt.”

Personal loan companies reviewed by Bankrate

More personal loan options on Bankrate