Need a personal loan? Our comprehensive guide to personal loans will help you find the best personal loans. Learn about different loan types, interest rates, fees, repayment terms, and more. Find the perfect loan for you with our expert tips and comparisons.
Table of Contents
- Best Personal Loans
- Personal Loan
- Personal Loans for Excellent Credit
- Personal Loans for Good Credit
- Best Personal Loans for Fair Credit
- Personal Debt for Poor Credit
- Best Personal Loans for Bad Credit
- How personal loans work
- Factors to consider when choosing a personal loan
- The Approval time from 20 personal loan lenders
- Personal loan interest rates Vs Loans Fees
- The Personal loans Fees Fees You might Pay
- Personal loan terms and repayment options
- Personal loan eligibility requirements
- How to apply for a personal loan
- Tips for improving your chances of being approved for a personal loan
- Alternatives to personal loans
- How to use a personal loan responsibly
- Personal loan Repayment strategies
- Personal loan consolidation options
- Conclusion
Best Personal Loans
We reviewed the best companies for personal loans and what they offer this month. The best personal loan companies list includes Sofi, Upgrade, Universal Credit, Discover Personal Loan, Upstart, Avant, Credible, Best Egg, , LightStream, Marcus, LendingPoint, LendYou, and more. Hopefully, you’ll find one that will work for you!
| Lenders | Interest Rate | Loan Amount | Repayment terms |
|---|---|---|---|
| Prosper | 6.95% – 35.99% | $2,000+ | 3-5 years |
| LendingClub | 7.97% – 35.89% | $1,000+ | 3-5 years |
| Marcus by Goldman Sachs | 6.99% – 19.99% | $3,500+ | 3-6 years |
| SoFi | 5.99% – 20.00% | $5,000+ | 2-7 years |
| Upstart | 7.98% – 35.99% | $1,000+ | 3-5 years |
| LightStream | 3.49% – 19.99% | $5,000+ | 2-12 years |
| Best Egg | 5.99% – 29.99% | $2,000+ | 3-5 years |
| Avant | 9.95% – 35.99% | $2,000+ | 2-5 years |
| OneMain Financial | 18.00% – 35.99% | $1,500+ | 2-5 years |
| PenFed Credit Union | 7.49% – 17.99% | $500+ | 1-5 years |
Personal Loan
A personal loan is a type of unsecured loan that can be used for a variety of purposes, including debt consolidation, home improvements, medical expenses, and more. Personal loans are offered by banks, credit unions, and online lenders, and they typically have fixed interest rates and repayment terms.
One of the main benefits of personal loans is that they offer a fixed repayment schedule, which can make it easier to budget and plan for loan repayment. Additionally, personal loans can often be obtained quickly, with some lenders offering funding as soon as the same day.
However, it’s important to keep in mind that personal loans also come with risks. If you default on a personal loan, your credit score could be damaged and you could potentially face legal action. It’s important to carefully consider whether a personal loan is the right financial decision for you and to only borrow what you can afford to pay back.
Here is how personal loans may be categorized based on credit score:
- Excellent credit (750+): Borrowers with excellent credit may have the best chances of being approved for a personal loan and may be offered the lowest interest rates.
- Good credit (700-749): Borrowers with good credit may be able to get approved for a personal loan, but may have a higher interest rate than those with excellent credit.
- Fair credit (640-699): Borrowers with fair credit may have more difficulty getting approved for a personal loan and may be offered higher interest rates.
- Poor credit (600-639): Borrowers with poor credit may have the most difficulty getting approved for a personal loan and may be offered the highest interest rates.
- Bad credit (below 600): Borrowers with bad credit may have difficulty getting approved for a personal loan from a traditional lender and may need to consider alternative financing options.
It’s important to note that these categories are generalizations and that personal loan availability and terms can vary significantly from one lender to another and from one borrower to another. Your credit score is just one factor that lenders may consider when evaluating your loan application.
Personal Loans for Excellent Credit
If you have excellent credit (750+), you may have the best chances of being approved for a personal loan and may be offered the lowest interest rates. Some options for personal loans for borrowers with excellent credit include:
- Unsecured personal loans: These loans do not require collateral and may be available from banks, credit unions, and online lenders. Examples of lenders that may offer personal loans to borrowers with excellent credit include Marcus by Goldman Sachs, LightStream, and SoFi. Interest rates for unsecured personal loans for borrowers with excellent credit may range from around 6% to 20%.
- Secured personal loans: These loans require collateral, such as a car or savings account, to secure the loan. Secured personal loans may be available from banks, credit unions, and online lenders and may have lower interest rates than unsecured loans. However, if you default on the loan, you could lose the collateral.
Fees for personal loans for borrowers with excellent credit may include origination fees, late payment fees, and prepayment fees. It’s important to carefully review the terms of the loan and compare offers from multiple lenders to find the best deal.
Personal Loans for Good Credit
If you have good credit (700-749), you may still be able to get approved for a personal loan, but you may have a higher interest rate than those with excellent credit. Some options for personal loans for borrowers with good credit include:
- Unsecured personal loans: Lenders that may offer unsecured personal loans to borrowers with good credit include Prosper, LendingClub, and Upstart. Interest rates for unsecured personal loans for borrowers with good credit may range from around 7% to 36%.
- Secured personal loans: Secured personal loans may be available from banks, credit unions, and online lenders and may have lower interest rates than unsecured loans. However, it’s important to carefully consider the risks of using collateral to secure the loan.
Fees for personal loans for borrowers with good credit may include origination fees, late payment fees, and prepayment fees. As with any loan, it’s important to carefully review the terms and compare offers from multiple lenders.
Best Personal Loans for Fair Credit
If you have fair credit (640-699), you may have more difficulty getting approved for a personal loan and may be offered higher interest rates. Some options for best personal loans for borrowers with fair credit include:
- Unsecured personal loans: Lenders that may offer unsecured personal loans to borrowers with fair credit include Avant, OneMain Financial, and CreditLoan. Interest rates for unsecured personal loans for borrowers with fair credit may range from around 10% to 36%.
- Secured personal loans: Secured personal loans may be available from banks, credit unions, and online lenders and may have lower interest rates than unsecured loans. However, it’s important to carefully consider the risks of using collateral to secure the loan.
Fees for best personal loan for borrowers with fair credit may include origination fees, late payment fees, and prepayment fees. As with any loan, it’s important to carefully review the terms and compare offers from multiple lenders.
Personal Debt for Poor Credit
If you have poor credit (600-639), you may have difficulty getting approved for a personal loan from a traditional lender and may need to consider alternative financing options. Some options for the best personal loans for borrowers with poor credit include:
- Secured personal loans: Secured personal loans may be available from banks, credit unions, and online lenders and may have lower interest rates than unsecured loans. However, it’s important to carefully consider the risks of using collateral to secure the loan.
- Short-term loans: Short-term loans, also known as payday loans, may be available to borrowers with poor credit, but they generally have very high interest rates and fees and should be used with caution. Examples of lenders that may offer short-term loans to borrowers with poor credit include OppLoans and BadCreditLoans.com. Interest rates for short-term loans for borrowers with poor credit may range from around 60% to 200%.
Fees for personal loans for borrowers with poor credit may include origination fees, late payment fees, and prepayment fees. As with any loan, it’s important to carefully review the terms and compare offers from multiple lenders.
Best Personal Loans for Bad Credit
If you have bad credit (below 600), you may have difficulty getting approved for a personal loan from a traditional lender and may need to consider alternative financing options. Top-rated personal loans for borrowers with bad credit include:
- Secured personal loans: Secured personal loans may be available from banks, credit unions, and online lenders and may have lower interest rates than unsecured loans.
- Short-term loans: Short-term loans, also known as payday loans, may be available to borrowers with bad credit, but they generally have very high interest rates and fees and should be used with caution. Interest rates for short-term loans for borrowers with bad credit may range from around 60% to 200%.
| Lender | Interest rate | Loan amount | Repayment terms |
|---|---|---|---|
| Avant | 9.95% – 35.99% | $2,000+ | 2-5 years |
| OneMain Financial | 18.00% – 35.99% | $1,500+ | 2-5 years |
| LendingPoint | 15.49% – 35.99% | $2,000+ | 2-4 years |
| OppLoans | 59% – 199% | $500+ | 3-36 months |
| CreditLoan | 5.99% – 35.99% | $500+ | 3-60 months |
| NetCredit | 34% – 155% | $1,000+ | 6-60 months |
| BadCreditLoans.com | 5.99% – 35.99% | $500+ | 3-60 months |
Fees for the best personal loans for borrowers with bad credit may include origination fees, late payment fees, and prepayment fees. As with any loan, it’s important to carefully review the terms and compare offers from multiple lenders. It’s also a good idea to consider alternative financing options, such as a secured loan or a loan from a credit union, which may have more lenient eligibility requirements.
How personal loans work
To apply for a personal loan, you’ll typically need to provide the lender with information about your income, employment, and credit history. The lender will use this information to determine your creditworthiness and the terms of the loan, including the interest rate and fees.
Personal loan interest rates are typically based on your credit score and financial history. A higher credit score can result in a lower interest rate, while a lower credit score may result in a higher interest rate. It’s important to shop around and compare rates from multiple lenders to find the best deal.
Personal loans also come with fees, which can vary depending on the lender. Common fees include an origination fee, which is a percentage of the loan amount that is charged to cover the cost of processing the loan, and a late payment fee, which is charged if you miss a payment.
Personal loan terms and repayment options can also vary. Most personal loans have fixed terms, ranging from one to seven years, but some lenders may offer longer terms. Repayment options may include monthly payments, biweekly payments, or weekly payments.
Secured Vs Unsecured Personal Loans
Personal unsecured loans and personal secured loans are two types of financing options that differ in the way they are collateralized. An unsecured personal loan does not require the borrower to put up any assets as collateral, while a secured personal loan requires the borrower to use an asset, such as a car or savings account, to secure the loan.
Here is a table comparing the pros and cons of unsecured and secured personal loans:
| Unsecured personal loans | Secured personal loans |
|---|---|
| May be easier to qualify for | May have lower interest rates |
| Do not require collateral | May require collateral |
| May have higher interest rates | May be more difficult to qualify for |
| May be used for a variety of purposes | May be used for a variety of purposes |
It’s important to carefully consider the terms and compare offers from multiple lenders to find the best option for your financial situation. Whether you are looking for a personal unsecured loan to consolidate debt, finance a home improvement project, or make a large purchase, or a personal secured loan for the same purposes.
Factors to consider when choosing a personal loan
When choosing a personal loan, there are several factors to consider:
- Credit score and credit history: Your credit score and credit history can significantly impact the interest rate and fees you’ll pay on a personal loan. It’s a good idea to check your credit report and score before applying for a loan to see where you stand.
- Loan amount and purpose: Personal loans are typically available in amounts ranging from $1,000 to $100,000, but the amount you can borrow will depend on your creditworthiness and the lender’s policies. It’s important to carefully consider how much you need to borrow and for what purpose, as borrowing more than you need can result in paying more in interest and fees.
- Interest rates and fees: As mentioned, interest rates and fees can vary significantly from lender to lender. It’s important to compare rates and fees from multiple lenders to find the best deal.
- Repayment terms and options: Personal loan repayment terms can range from one to seven years, and some lenders may offer longer terms. It’s important to choose a repayment term that you feel comfortable with and that fits your budget. Additionally, consider the repayment options offered by different lenders to find a plan that works for you.
Maximum Loan Amount of best personal loan companies
Here is a table listing the maximum loan amounts offered by some personal loan lenders in the USA:
| Lender | Maximum loan amount |
|---|---|
| Marcus by Goldman Sachs | $40,000 |
| SoFi | $100,000 |
| LightStream | $100,000 |
| Best Egg | $35,000 |
| Avant | $35,000 |
| OneMain Financial | $20,000 |
| PenFed Credit Union | $25,000 |
| Prosper | $40,000 |
| LendingClub | $40,000 |
| Upstart | $50,000 |
It’s important to note that these maximum loan amounts may vary based on the borrower’s creditworthiness, income, and other factors. It’s a good idea to compare offers from multiple lenders to find the best deal for your financial situation.
The Approval time from 20 personal loan lenders
Here is a table listing 20 personal loan lenders in the USA and the estimated time it takes to get approved for a personal loan from each lender:
| Lender | Approval time |
|---|---|
| Marcus by Goldman Sachs | Same day |
| SoFi | Same day |
| LightStream | Same day |
| Best Egg | Same day |
| Avant | Same day |
| OneMain Financial | Same day |
| PenFed Credit Union | 1-2 days |
| Prosper | 1-3 days |
| LendingClub | 1-3 days |
| Upstart | 1-3 days |
| Ally Bank | 1-3 days |
| Discover Bank | 1-3 days |
| Wells Fargo | 1-3 days |
| Bank of America | 1-3 days |
| Capital One | 1-3 days |
| Citizens Bank | 1-3 days |
| PNC Bank | 1-3 days |
| TD Bank | 1-3 days |
| US Bank | 1-3 days |
This information might vary from time to time. The actual approval time may vary based on a variety of factors, such as the lender’s policies and procedures, the borrower’s creditworthiness and financial stability, and the volume of loan applications being processed.
Personal loan interest rates Vs Loans Fees
Personal loan interest rates can range from as low as 3.49% to as high as 35.99%. The interest rate you receive will depend on your credit score, financial history, and the lender you choose.
To get the best interest rate on a personal loan, it’s important to:
- Check your credit report and score: Make sure that your credit report is accurate and up-to-date, and work to improve your credit score if necessary. A higher credit score can result in a lower interest rate.
- Compare rates from multiple lenders to find the best deal.
- Negotiate: Some lenders may be willing to negotiate the interest rate on a personal loan, especially if you have a strong credit score and financial history.
Personal loan fees can vary depending on the lender, but common fees include an origination fee and a late payment fee.
An origination fee is a percentage of the loan amount that is charged to cover the cost of processing the loan. This fee is typically between 1% and 8% of the loan amount, and it is deducted from the loan proceeds.
A late payment fee is charged if you miss a payment on your personal loan. The fee can vary, but it is typically a percentage of the missed payment. Late payment fees can add up quickly, so it’s important to make sure you are able to make your payments on time.
It’s important to carefully review the fees associated with a personal loan before you agree to borrow. Some lenders may charge higher fees than others, and these fees can significantly impact the overall cost of the loan.
The Personal loans Fees Fees You might Pay
There are several types of loan fees that may be associated with a personal loan. These fees may include:
- Origination fee: An origination fee is a fee that is charged by the lender to cover the cost of processing the loan. This fee is typically a percentage of the loan amount and is usually paid upfront, either as a separate fee or as part of the loan amount. For example, if the origination fee is 1% of the loan amount and the loan amount is $10,000, the origination fee would be $100 ($10,000 x 1%).
- Processing fee: A processing fee is a fee that is charged by the lender to cover the cost of evaluating and approving the loan application. This fee is typically a flat fee and is usually paid upfront, either as a separate fee or as part of the loan amount. For example, if the processing fee is $50 and the loan amount is $10,000, the processing fee would be $50.
- Disbursement fee: A disbursement fee is a fee that is charged by the lender to cover the cost of disbursing the loan funds to the borrower. This fee is typically a flat fee and is usually paid upfront, either as a separate fee or as part of the loan amount. For example, if the disbursement fee is $50 and the loan amount is $10,000, the disbursement fee would be $50.
- Late payment fee: A late payment fee is a fee that is charged by the lender if the borrower fails to make a loan payment on time. This fee is typically a flat fee or a percentage of the missed payment amount. For example, if the late payment fee is $25 and the missed payment amount is $100, the late payment fee would be $25. Alternatively, if the late payment fee is 5% of the missed payment amount and the missed payment amount is $100, the late payment fee would be $5 ($100 x 5%).
- Prepayment fee: A prepayment fee is a fee that is charged by the lender if the borrower pays off the loan before the end of the loan term. This fee is typically a percentage of the remaining loan balance and is designed to compensate the lender for the loss of interest income. For example, if the prepayment fee is 3% of the remaining loan balance and the remaining loan balance is $10,000, the prepayment fee would be $300 ($10,000 x 3%).
- Non-sufficient funds fee: A non-sufficient funds fee (NSF fee) is a fee that is charged by the lender if the borrower’s payment is returned due to insufficient funds in the borrower’s account. This fee is typically a flat fee and is designed to compensate the lender for the inconvenience and additional processing costs associated with a returned payment. For example, if the NSF fee is $35 and the payment amount is $100, the NSF fee would be $35.
Personal loan terms and repayment options
Personal loan terms can range from one to seven years, and some lenders may offer longer terms. The repayment term you choose will depend on your financial situation and the amount you are borrowing.
A shorter repayment term can result in higher monthly payments, but it can also save you money on interest in the long run. A longer repayment term can result in lower monthly payments, but it can also result in paying more in interest over time.
Personal loan repayment options may include monthly payments, biweekly payments, or weekly payments. The option you choose will depend on your financial situation and your preference.
Personal loan eligibility requirements
Personal loan eligibility requirements can vary from lender to lender, but common requirements include:
- Minimum credit score: Most lenders will have a minimum credit score requirement for personal loans. A higher credit score can improve your chances of being approved and may result in a lower interest rate.
- Minimum income: Some lenders may have a minimum income requirement for personal loans. This requirement may vary depending on the lender and the loan amount.
- Employment status: Most lenders will require you to be employed or have a steady source of income to qualify for a personal loan.
- Debt-to-income ratio: Your debt-to-income ratio is the amount of debt you have compared to your income. Lenders may consider your debt-to-income ratio when determining your eligibility for a personal loan.
To improve your chances of being approved for a personal loan, it’s a good idea to:
- Check your credit report and score: Make sure that your credit report is accurate and up-to-date, and work to improve your credit score if necessary.
- Demonstrate financial stability: Lenders may be more likely to approve your loan if you have a stable income and a low debt-to-income ratio.
- Consider a co-signer: If you don’t meet the eligibility requirements for a personal loan on your own, you may be able to improve your chances of being approved by having a co-signer with stronger credit and financial stability.
How to apply for a personal loan
Applying for a personal loan is typically a straightforward process, but it can vary depending on the lender. Here are the general steps to follow:
- Shop around: Compare rates, fees, and terms from multiple lenders to find the best deal.
- Gather your documentation: Most lenders will require you to provide documentation, such as proof of income, proof of employment, and a list of debts and assets.
- Fill out the application: Most personal loan applications can be completed online, but some lenders may require you to apply in person.
- Wait for a decision: Once you submit your application, the lender reviews your information and make a decision. This process can take a few days to a week, depending on the lender.
- Review the offer: If your application is approved, the lender will provide you with an offer, which will include the loan amount, interest rate, fees, and repayment terms. It’s important to carefully review the offer and ask any questions you may have before accepting.
- Accept the offer: If you decide to accept the offer, you’ll need to sign a loan agreement and provide any additional documentation that may be required.
- Wait for funding: Once the lender has all of the necessary documentation, it will disburse the loan funds to you. This process can take a few days to a week, depending on the lender.
Tips for improving your chances of being approved for a personal loan
If you’re concerned about being approved for a personal loan, here are some tips to improve your chances:
- Improve your credit score: A higher credit score can improve your chances of being approved for a personal loan and may result in a lower interest rate. To improve your credit score, pay your bills on time, reduce your credit card balances, and avoid taking on new debt.
- Demonstrate financial stability: Lenders may be more likely to approve your loan if you have a stable income and a low debt-to-income ratio.
- Consider a co-signer: If you don’t meet the eligibility requirements for a personal loan on your own, you may be able to improve your chances of being approved by having a co-signer with stronger credit and financial stability.
Alternatives to personal loans
Personal loans are not the only financing option available. Other alternatives to consider include:
- Credit cards: Credit cards can be a good option for small purchases or short-term financing, but they can be expensive if you carry a balance.
- Home equity loans: If you own a home, you may be able to take out a home equity loan, which is a loan secured by your home. Home equity loans can have lower interest rates than personal loans, but they also come with the risk of losing your home if you default on the loan.
- Peer-to-peer loans: Peer-to-peer loans are loans that are funded by individual investors rather than traditional lenders. Peer-to-peer loans can have competitive rates, but they may be more difficult to qualify for.
It’s important to carefully consider the pros and cons of each financing option to determine which one is right for you.
How to use a personal loan responsibly
If you do decide to take out a personal loan, it’s important to use it responsibly:
- Only borrow what you can afford: It’s important to only borrow what you can realistically afford to pay back.
- Make a budget: Create a budget to help you plan for loan repayment and avoid financial trouble.
- Make payments on time: Missing payments on a personal loan can result in late fees and damage to your credit score.
- Consider consolidation: If you have multiple personal loans, you may be able to save money by consolidating them into a single loan with a lower interest rate.
Personal loan Repayment strategies
There are several strategies you can use to pay off your personal loan as quickly as possible:
- Make larger payments: Making larger payments on your personal loan can help you pay it off faster and save money on interest.
- Make payments more frequently: Making payments more frequently, such as biweekly or weekly, can help you pay off your loan faster.
- Refinance: If you have a personal loan with a high interest rate, you may be able to save money by refinancing to a loan with a lower rate.
Personal loan consolidation options
If you have multiple personal loans, you may be able to save money by consolidating them into a single loan. Personal loan consolidation can result in a lower interest rate and simplified repayment, but it’s important to carefully consider the pros and cons before making a decision.
To consolidate your personal loans, you’ll need to:
- Compare rates: Compare rates from multiple lenders to find the best deal.
- Consider the terms: Make sure that the terms of the consolidation loan are favorable, including the interest rate, fees, and repayment terms.
- Transfer the balances: Once you’ve chosen a lender, you’ll need to transfer the balances of your existing loans to the new consolidation loan.
Can I get a personal loan with bad credit?
It’s possible to get a personal loan with bad credit, but it may be more difficult and the interest rate may be higher.
Consider working to improve your credit score and consider alternative financing options, such as a secured loan or a co-signer, if you are having difficulty getting approved.
Is it a good idea to take out unsecured loans to pay off credit card debt?
Taking out a personal loan to pay off credit card debt can be a good idea if you are able to get a lower interest rate on the personal loan than you are paying on your credit card consolidation debt. However, it’s important to carefully consider the terms of the personal loan, including the fees and repayment terms, before making a decision.
Can I use a personal loan for any purpose?
Personal loans can be used for a variety of purposes, including debt consolidation for personal loans, home improvements, medical expenses, and more. However, some lenders may have restrictions on how the loan can be used. It’s important to carefully review the terms of the loan and the lender’s policies before borrowing.
Can I prepay my consumer loans?
Most consumer loans, also known as personal loans allow you to prepay the loan without penalty. Prepaying a loan can save you money on interest, but it’s important to carefully consider whether you will have the funds available to make the prepayment.
Can I use a personal loan for credit card consolidation?
Yes, you can use a personal loan to consolidate credit card debt. Taking out a personal loan to pay off credit card debt can be a good idea if you are able to get a lower interest rate on the personal loan than you are paying on your credit card debt. This can help you save money on interest and potentially pay off your debt faster. If you are having difficulty paying off your credit card debt, it may be helpful to consider credit counseling or a debt management plan.
Conclusion
Personal loans can be a useful financial tool, but it’s important to carefully consider the terms and risks before borrowing. By shopping around and comparing rates and fees from multiple lenders, you can find the best personal loan for your needs. Use a personal loan responsibly, and consider consolidation or refinancing if it can help you save money on interest and simplify repayment.