Our Top Picks For Personal Loans
Our top lenders and loan marketplaces have a great range of options and interest rates for consumers that are based on their credit, financial situation, reason for a loan, and the type of loan they are searching for.
Best Personal Loan Marketplace For Consolidating Credit Card Debt: Credible
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Minimum Credit Score: 600
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APR: 2.49% to 35.99%
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Loan Range: $1,000 to $100,000
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Term Length: 24 to 84 months
Why We Like It:
- $200 Best Rate Guarantee
- Get personalized loan rates in less than 2 minutes
- Partnered with 17 of the top lenders in the US
Credible offers personal loans through a loan marketplace to consumers with excellent credit.
To apply for Credible, you must:
- Be a US citizen or permanent resident
- Be at least 18 years of age
- Have a valid checking account in your name
- Have good to excellent credit
You can receive your personalized loan offers in just a couple of minutes by filling out a single online form.
You simply have to create an account and enter some basic personal and financial information. Credible authorizes a soft credit check to learn more about your financial history, which they can complete quickly since they work with the three major credit bureaus (Experian, Equifax, and TransUnion).
If you pre-qualify, you are sent your loan offers by Credible's vetted lenders. You can choose your desired loan and complete the full application with your lender.
Credible's client support team keeps in touch with you through the entire loan process. Customers can contact them through phone, email, or chat to speak directly with a representative.
Best Overall Personal Loan Marketplace: Monevo
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Minimum Credit Score: 450
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APR: 3.49% to 35.99%
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Loan Range: $1,000 to $100,000
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Term Length: 3 to 144 months
Why We Like It:
- Large network of lenders
- Competitive rates
- Variety of loan terms
Monevo Inc. is our top pick for the best loan marketplace. They offer personal loans to borrowers in the US and UK who are looking for unsecured personal loans with good terms, high loan amounts, and have fair to excellent credit.
To apply for Monevo, you must meet a few requirements:
- Be a US citizen or permanent resident
- Have a valid checking account in your name
- Be at least 18 years of age
Their application is easy to fill out and takes as little as 60 seconds. All you have to do is choose your desired loan amount, repayment term, and loan purpose from a drop-down list before filling in basic personal information like your income, employment, credit score, education, residence, and Social Security number.
Monevo's award-winning technology forwards your information to their partners to see if they have any real-time loan offers that match your needs. Their lending partners may run a soft credit check (which does not affect your credit) in order to verify your identity and credit score.
Once you receive your loan offers, you can compare them through a clear, organized table that shows you the various loan terms and interest rates. If you choose to follow through with an offer, you can finalize the loan on the lender's website and receive your funds via direct deposit as soon as the next business day.
Best Personal Loan For Bad Credit: 5KFunds
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Minimum Credit Score: No minimum credit score
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APR: 5.99% to 35.99%
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Loan Range: Up to $35,000
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Term Length: 2 to 72 months
What We Like:
- Competitive rates
- Large network of lenders
- US-based customer service that can be reached easily by phone or email
5KFunds is a completely free online lender comparison service that allows you to quickly find the best loan for your specific needs, regardless of your credit history. They have an extensive partner network of over 100 lenders that offer competitive interest rates and fast funding.
To apply for a loan from 5KFunds, you must meet the following criteria:
- Be at least 18 years of age
- Be a US citizen
- Have a steady stream of income
- Have a valid bank account, preferably with direct deposit
5KFunds' application process only requires you to fill out some basic financial information. They do not require an initial credit check requirement and pre-approval takes as little as 90 seconds.
If you pre-qualify, you will be contacted by your lender to complete the application process and receive your loan terms from them directly. Some lenders may perform a hard credit check at this time, which lowers your credit score.
5KFunds services are completely free, although partner lenders may charge fees that are disclosed in your loan terms. You can receive your funds directly deposited to your bank account as soon as the next business day.
Best Personal Loan For Fair Credit: Upgrade
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Minimum Credit Score: 600
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APR: 6.98% to 35.89%
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Loan Range: $1,000 to $50,000
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Term Length: 36 to 60 months
What We Like:
- Unsecured loans with fixed interest rates
- Funds that are directly deposited as quickly as the same business day
Upgrade is a fairly new personal loan company that offers online personal loans for those with fair to excellent credit.
To apply for a loan from Upgrade, you need to meet specific eligibility requirements:
- Be at least 18 years of age (or 19 in some states)
- Be a US citizen, permanent resident, or be living in the US with a valid visa
- Have a valid and verifiable bank account
- Have a valid email address
- Live in one of the eligible states
- Have at least 3 years of credit history
Upgrade's application process can be filled out on Upgrade’s home page. You simply enter some basic information like your loan amount, the reason you want to borrow, and some personal details in order to check your rate.
Once this is done, Upgrade shows you multiple loan options or will notify you that your application has been denied. If you decide on an offer, Upgrade authorizes a hard credit check and verifies your bank account information before directly depositing your cash as soon as the same business day.
Upgrade Disclaimer: Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/.
Best Personal Loan For Good Credit: GuideToLenders
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Minimum Credit Score: N/A
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APR: 4.99% to 35.99%
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Loan Range: $1,000 to $40,000
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Term Length: 24 to 84 months
What We Like:
- Peer-to-peer online marketplace
- Competitive rates
Guide to Lenders offers a P2P online marketplace to connect borrowers with interested investors.
To qualify, you must meet a few requirements:
- You must be a US citizen
- Be at least 18 years of age
- Have a verifiable bank account
- Have a steady source of income
Applicants can receive multiple offers based on their credit after filling out a secure form, which is a simple form that only takes a few minutes. You only need to provide some basic information like your name, annual income, date of birth, email, phone number, and zip code.
If you are preapproved for any loans, you can compare them and choose the best loan offer for your situation. Guide to Lenders does not authorize a hard credit pull, but your lender will conduct one after you have chosen a loan in order to check your credit history.
Best Personal Loan For Excellent Credit: SoFi
Minimum Credit Score: 660 APR: 5.95% to 14.75% for fixed rates with AutoPay, 5.825% to 14.365% for variable rates with Autopay Loan Range: $5,000 to $100,000 Term Length: 3, 5, or 7 years
Why We Like It:
- Competitive low rates
- High loan amounts up to $100,000
- Flexible loan terms
- Unemployment protection program
- No origination fees, closing costs, or prepayment penalties.
Social Finance, also known as SoFi, is an online lender that provides loans and exclusive benefits for individuals with excellent credit.
SoFi looks at several factors including credit history, a high-income career (or potential high-income career in a growing field), degree, education, financial history, and payment history in order to determine if you are a reliable borrower. You must also meet a few other requirements:
- Be a US citizen or permanent resident
- Be over 18 years of age
- Live in one of the eligible states
To apply, you simply create a username and password and fill out some basic personal information like your education and career. After SoFi has processed your information and performed a soft credit check, you can see which loans you are eligible for. From there you can choose between a fixed or variable rate loan.
Once you have chosen a loan, SoFi authorizes a hard credit check and if you are approved, you must upload documentation (like your driver’s license or paystub) and choose a bank account for your funds before signing the loan agreement.
In addition to their loans, SoFi also provides many value-added benefits, such as an unemployment protection program and exclusive networking events.
Best Personal Loan For Major Purchases: LightStream
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Minimum Credit Score: 660
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APR: 3.09% to 14.24% with AutoPay (rates vary by loan purpose)
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Loan Range: $5,000 to $100,000
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Term Length: 2 to 7 years
Why We Like It:
- No extra fees
- $100 loan experience guarantee and the ability to beat any qualifying rate
- Available nationwide
- Autopay discount
LightStream is our top pick for major purchases due to their high loan amount and lower-than-average rates. They provide fast funding times and a wide range of loan terms.
LightStream is unique in the fact that your interest rate is based on the reason you take out your loan. To apply for LightStream, you must meet several requirements:
- Be at least 18 years of age (or your state's minimum age requirement)
- Have an excellent credit score
- Have a credit history of at least five years
- Have a low debt-to-income ratio
- Have a minimum $50,000 annual income
- Have a history of on-time payments
You can apply directly on LightStream's website and choose the type of loan you want to take out. If your credit history isn't ideal, you can apply with a cosigner to qualify for better loan terms.
LightStream doesn't require a pre-approval process and instead authorizes a hard pull from Experian and Equifax. This look at your financial history helps determine your loan amount, term length, monthly payment, and interest rates.
After you have created your account and entered your personal information, you must upload documents proving your identification and income. Once your application is processed, you will be notified if you are approved and you can receive your funds as quickly as the same business day.
Contact: Please contact us with any questions at [email protected]
APR representative example: Assuming a loan of $10,000 with a 72 month (3 year) repayment period, 7.99% interest rate and 11.51% APR, and a $350 origination fee, the borrower will receive $9,650 after the loan funds and will repay $313.32/month (for a total amount repaid of $11,279.43).
What is a Personal Loan?
A personal loan is a type of loan that can be used for almost any purpose. You receive a lump sum from a lender and can put that money toward things like home improvement, debt consolidation, unexpected bills, or any other purpose.
Typically, personal loans are unsecured, which means you don’t have to provide any collateral when you apply.
Depending on the lender, you can borrow as little as $1,000 or less or as much as $100,000, though limits around $35,000 are more common. Repayment terms usually range from 2 to 7 years, making the monthly payment flexible. Keep in mind that loans with longer terms usually cost more overall.
Your credit score can have a big impact on your ability to get personal loans as well as their cost. People with good credit can secure low rates, making these loans inexpensive. However, borrowers with poor credit can expect to pay very high interest rates.
When to Get a Personal Loan?
Personal loans are highly flexible. You can use them for many different purposes. That means there are a few situations when you might consider applying for one.
One common reason to apply for a personal loan is to consolidate other debts. Personal loans can have lower interest rates than many unsecured debts, especially credit card balances. You can use a loan to consolidate your credit card balances into one monthly payment and reduce your interest rate.
You might also consider a personal loan to help fund home improvements or other things that improve your financial standing.
Under less ideal circumstances, you might turn to a personal loan to cover an unexpected expense, like a car repair or medical bill. Often, personal loans are a less expensive option than putting the expense on a credit card and carrying a balance.
Using a personal loan for discretionary expenses, like going on vacation, is usually a bad idea.
How to Choose the Best Personal Loans
A personal loan is a tool that you can use to assist your financial needs in any situation, such as funding your education, renovating your home, and even paying off other debts.
Personal loans have much more competitive interest rates and terms than credit cards, making it an ideal option for consolidating your credit card debt or anything that requires a large amount of cash.
Picking a personal loan is an important decision and it can be difficult to find the best one for your situation, so we've assembled a list of the best lenders and marketplaces that fit your personal profile. We use the following criteria to assess the best lenders:
- Transparency: Look for a company that provides important information upfront. Many companies have a loan calculator to help you find your interest rate based on your financial situation, while your loan terms and ranges can be easily found by filling out a short online loan request form or calling the company directly.
- Time in business: Longevity in the personal loan industry is always a good sign of a reputable company.
- Customer service and reviews: Check reviews to determine if a company is right for you. Your lender's reputation, customer service, responsiveness, and accreditation matter. You can check the BBB, Trustpilot, and Yelp to see real customer reviews and find the answers to the following questions:
- Can this company be easily contacted by phone, email, or live chat 24/7?
- Do they respond quickly to any questions or concerns I may have?
- Will they keep me updated during the process?
- Pricing and fees: In addition to your interest rates, some lenders may charge you extra fees such as application fees, late fees, origination fees, or processing fees -- these could become costly over time. Be sure to take this into consideration before agreeing to your loan terms. Most of our top lenders charge competitive rates, minimal fees, and no prepayment penalties.
- Loan amounts: Your lender should offer loan amounts that go as high as you need, all while keeping reasonable interest rates. Some of our recommended lenders only offer amounts up to $5,000, while others may offer loans up to $100,000.
- Speed of funding: Online lenders are well known for being able to directly deposit your funds to your checking account, which means you can receive your loan much quicker than if you went through a bank or credit union. Most of our top lenders offer same-day funding.
- Types of loans offered: In addition to interest rates and fees, you can also choose between a variety of loans, such as fixed and variable loans. Fixed rates stay the same throughout the life of the loan, while variable rates fluctuate depending on the economy. These usually start lower and increase during the loan term; however, most lenders cap the interest rates at a certain point. Lenders may also allow cosigned loans, which is when a trusted friend or family member cosigns a loan with you. While this can help you get lower interest rates, it is a risky option since your credit and your co-signer's credit is on the line. If one person defaults, the other is responsible for paying the loan back.
- Repayment period: If you are able to, it's better to choose a shorter repayment period and save money over the life of the loan. If you pick a long repayment term, you end up paying more over the life of the loan due to interest -- even if your monthly fixed amount is lower. Monevo offers the lowest starting interest rates out of all the top loan comparison marketplaces we reviewed.
- Nationwide service: Most of our recommended lenders offer their services in most US states.
- Ease of application: Top online lenders make applying for a loan much simpler and quicker than banks and credit unions. The majority of online lenders and marketplaces will have you fill out one single online application that asks for basic personal and financial information like your name, address, employment information, income information, Social Security number, and loan information before connecting you with your loan offers.
- Your personal credit history: This last factor depends on you. Whether or not you have good or bad credit determines what type of loans you qualify for. Your creditworthiness is determined by a number of factors, such as your loan repayment history, which gives lenders an idea of how much of a risk you are as a borrower. With a high credit score, your interest rates will be much lower; however, you can still get a loan even with lower credit scores.
Best Place to Get a Personal Loan
There are three primary sources for personal loans.
- Banks. Most banks, including both national chains and local institutions, offer personal loans in addition to their other services. If you have a checking or savings account at a bank, check to see if that bank offers loans and if it offers perks for account holders, such as an interest rate discount.
- Credit unions. Credit unions are community institutions that operate for the benefit of their account holders. If you’re a member of one, you should definitely check if it has personal loans available. There’s a good chance your credit union will offer the best deal.
- Online lenders. There are many specialized companies that focus on offering personal loans online. These companies usually offer fast funding and low rates, but you might need excellent credit to qualify for the best deals.
In general, it’s worth putting in the effort to shop around and compare multiple lenders to find the one offering the lowest interest rates and fees.
Frequently Asked Questions
What are some signs of a reputable personal loan lender?
It's easy for borrowers to fall victim to a scam, especially when their options are limited by having bad credit and lenders try to take advantage of their situation. Before you take out a loan, keep an eye out for the following in order to find a reputable lender:
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Check their basic information and reputation: Be sure to check the lender’s physical address, their BBB profile, and read through online reviews from sites like Trustpilot for real customer feedback. In general, the longer a company has been in business, the better.
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Online transparency: Reputable lenders will list out fees, APR ranges, and additional terms.
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Compliance with state regulations: Check to see if they are registered in your state by contacting the state’s financial regulatory bureau.
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Credit bureau reporting: You can also check to see if a lender reports to the three major bureaus (Experian, Equifax, and TransUnion).
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Reasonable fees and interest rates: While you're probably not going to get low interest rates with bad credit, a good lender will not charge exorbitant fees (for late payments, prepayments, unsuccessful payments, or origination) and they will keep their interest rates competitive.
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Higher loan amounts: While most lenders will only offer loans up to $1,000 if you have bad credit, some of the top lenders in the industry will allow for larger loans if you are in need of it.
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Flexible loan terms: A good lender will allow you to have flexible terms. For example, if you want to pay off a loan quickly and save on interest, they will not force you to have a long loan term.
What are the benefits of a personal loan?
Personal loans can be used for a variety of reasons. Whether you need the funds for an emergency, home improvement, debt consolidation, or a major life event, these loans are flexible enough for any purpose.
Do personal loans affect my credit?
Your credit may take a slight hit once you submit your application -- usually around 5 points due to the initial credit inquiry. (If you make multiple inquiries within a few weeks, it will only count as one.)
Once you receive your personal loan, your credit may be affected due to your new higher debt (unless you are taking out a debt consolidation loan for credit card debt).
Thankfully, you can build your credit history by making regular on-time payments on your personal loan.
What is a bad credit personal loan?
A bad credit loan is a specific kind of personal loan for borrowers with poor, bad, or no credit. These usually come with lower amounts, and higher interest rates; borrowers may even have to put up collateral in case they default.
What are the benefits of online loans?
Any loan for consumers with bad credit carries high interest rates, but there are some unexpected benefits to taking out these personal loans:
- You can receive your funds quickly -- sometimes in as little as one business day.
- You will have fixed rates, so you don’t have to worry about the rates changing over time.
- Most of the loans are unsecured, so you don’t have to provide any collateral.
- Personal loans allow you to use them for any purpose, including paying off your debt or using it for car repairs and home renovations.
- You don’t receive any prepayment penalties for paying off your loan early, which also helps reduce your interest in the long run.
- If you take out a credit builder loan, you can use that to improve your credit score by making on-time payments.
What is a personal loan?
A personal loan is a large cash fund you can borrow for personal use, like paying off consolidated debt, investing in your home, a vacation, or wedding.
How does a personal loan work?
A personal loan works like any other lump sum loan. When you apply for the loan, you describe your reason for applying and how much money you need to borrow.
If you’re approved, you’ll receive a lump sum of cash, minus any origination fees you pay. Your lender will send you a monthly bill that requires you to pay a portion of the principal plus any accrued interest. As you make your payments, you’ll pay down the balance until the loan is repaid in full.
Reasons to apply for a personal loan
There are many reasons to consider applying for a personal loan.
One is that they can be a less expensive way to deal with financial emergencies than using a credit card.
Another is that they can be used for many things that improve your financial situation, including consolidating debt or paying for home improvements.
Are personal loans tax deductible?
No, personal loans are not tax deductible in the same way that some other loans, like mortgages, are.
