How we chose the best personal loans

Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.

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Lenders reviewed

We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.

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Categories assessed

Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.

60+

Data points analyzed

Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.

Star rating categories

We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.

NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.

NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.

NerdWallet’s picks for the best personal loans

Here's a closer look at why we think these lenders are the best.

Upgrade, the best personal loan overall

There’s a lot to like about Upgrade's personal loans. For one, it offers rate discounts for setting up autopay, signing up for multiple Upgrade products and — for debt consolidation loans — letting it directly pay your lenders. And that’s on top of already-competitive rates, running from 7.74% to 35.99%.

Upgrade also offers many ways to borrow, by offering a variety of repayment terms and loan types. Besides unsecured loans, borrowers can apply for secured and co-signed loans.

LendingClub, best for debt consolidation loans

If you’re aiming to pay off multiple debts, LendingClub can simplify the process by sending the loan proceeds to up to 12 creditors. LendingClub also shines by offering low rates and a joint loan option.

The lender also allows borrowers to choose their payments date before signing the loan agreement and change that date during repayment. That’s a convenient perk if you take a new job with a different pay schedule. Not all lenders offer such flexible payment options.

Discover, best for no fees and fast approval

Many lenders charge an origination fee of up to about 10% of the loan amount — but not Discover. There’s no upfront cost to taking out a loan and no fees for late payments, non-sufficient funds or anything else.

When you apply, the lender says it makes approval decisions on the same day. Then it sends funds on the same day you accept the loan if you’re depositing into a Discover checking or savings account. If not, funds are sent as early as the next business day.

Note that Discover’s minimum credit score is 660 — one of the highest among the lenders on this list.

Universal Credit, best for borrowers with bad to fair credit

Universal Credit’s minimum credit score is 560 — lower that of many other lenders on this list, but with many comparable features. If you’re consolidating debts, for example, Universal Credit will send loan funds directly to creditors and possibly offer you a rate discount if you choose this route.

This lender also stands out for offering a range of loan amounts, from $1,000 to $50,000. Lastly, Universal Credit says it approves most applications within about five minutes and typically sends funds within one business day.

LightStream, best for home improvement loans

LightStream boasts the lowest minimum annual percentage rate of all 34 lenders we surveyed: 6.49%. The lender also shines for charging no fees, offering multiple rate discounts and allowing co-borrowers.

LightStream is a solid option for covering large expenses, given that loan amounts range from $5,000 to $100,000, which is higher than most lenders. For loans greater than $25,000 and used for home improvement projects, LightStream offers repayment plans of up to 20 years.

Best Egg, best for secured personal loans

In addition to offering unsecured loans, Best Egg allows you to secure a loan with collateral. Specifically, the lender accepts two types of collateral: vehicles or permanent home fixtures, like built-in cabinets or vanities.

Beyond offering a secured loan option, Best Egg says it makes approval decisions instantly and typically funds loans the next business day. If you’re looking to consolidate debts, Best Egg will send loan funds directly to the lender.

Upstart, best for borrowers with short credit histories

Upstart is unique in that it says it doesn’t have a minimum requirement for credit score or credit history. While many lenders base approval decisions primarily on credit and income, Upstart also factors in details like college education and work history. So Upstart could be a strong option if you feel confident you can repay the loan but can’t necessarily prove it with traditional data.

Upstart also offers a secured loan option, allowing you to pledge your vehicle as collateral, which can also help approval chances.

Note that Upstart has a maximum origination fee of 12%, which is higher than that of most other lenders.

SoFi, best for large loan amounts

If you’re looking to finance a big expense, SoFi is one of only a few lenders that provides loans up to $100,000 for those who qualify. You can also get a joint loan if you and the co-borrower live together. Sharing responsibility could be one way to manage that large loan.

The lender also offers multiple rate discounts, including a reduction of 0.25 percentage points for setting up autopay.

First Tech, best for range of loan amounts and terms for members

First Tech is a credit union for the employees of about 900 tech companies, as well as their household and family members. So only its members can benefit from the many standout features of First Tech’s personal loans.

For one, First Tech offers a wide range of loan amounts ($500 to $50,000) and term lengths (six months to seven years). There’s also a secured loan option, allowing you to use an investment account, savings account or certificate of deposit as collateral. If you're looking to consolidate debt, First tech will directly pay the lenders with your funds.

U.S. Bank, best for range of loan amounts and terms for bank customers

While U.S. Bank provides loans to both existing customers and non-customers, only members receive its best benefits. So if you already have a checking or savings account with U.S. Bank, it’s worth looking into their loans.

Customers can apply for loans ranging from $1,000 to $5,000, with repayment terms of one to seven years. There’s also a rate discount of 0.5 percentage points for customers who set up automatic payments. Customers can also get funded quickly — the lender says they may receive the funds in their U.S. Bank checking or savings account within two hours

PenFed, best for fast funding for credit union members

PenFed offers a wide range of loans, from $600 to $50,000. It also charges no fees and typically funds on the same day or next day after approval.

You don’t have to be a PenFed member to apply for a loan, but you do have to join if you accept an offer. To become a member, you must open a savings account and deposit at least $5

What the nerds think

Expert take: How to find the best lender for you

"Finding the best lender takes some legwork, but it mostly comes down to what you can qualify for and the rate. Start by checking lenders' credit score requirements and focusing on those with minimums below your score. Also make sure their loan amounts and terms fit your needs. And most important: Pre-qualify with multiple lenders and compare the rates and terms you're offered. Then pick the best offer, which usually means the lowest rate."

Jackie VelingLead Writer & Content Strategist

How do personal loans work?

Personal loans are a type of installment loan you borrow from an online lender, bank or credit union that can be used for almost anything. These loans are repaid monthly with fixed interest. Consider these factors when comparing personal loans.

Loan amounts

Most personal loan lenders offer small to midsize loans of $2,000 to $50,000, although some fall outside that range. Depending on the amount you borrow, a personal loan can help with small unexpected expenses, debt consolidation or a large home improvement project.

Repayment terms

Personal loans tend to come with term lengths of two to seven years, though some lenders may offer longer terms for larger loan amounts. A shorter-term loan means you’ll pay less interest overall, while a longer repayment term gives you lower monthly payments.

Annual percentage rates

The loan’s APR includes interest and fees, making it the best way to compare affordability among loan options. The lower the APR, the less expensive the loan.

Unlike variable-rate products such as credit cards, personal loans have fixed rates, so the APR won’t change over the life of the loan.

Fees

Some personal loans have origination fees to cover the cost of processing the loan. This fee is included in the APR and often deducted from the loan funds. Lenders may also charge a late fee for late payments or a nonsufficient funds fee if you don’t have enough money in your bank account to cover the total amount of a payment.

Setting up autopay and keeping an eye on your checking account can help you avoid these fees.

Prepayment penalties

It’s rare for a lender to charge a prepayment penalty for paying off a personal loan early. This is important, since paying the loan off as soon as possible can save you money on interest.

Funding time

The time it takes to get a personal loan varies by lender, but some online lenders can approve your application in minutes and provide same-day funding or fund a loan o

See how different loan amounts, rates, and terms affect your monthly payment.

Estimated monthly payment

$309.92

Total interest over 3 years

$1,156.95

Total loan payment

$11,156.95

Loan amount

$10,000

Interest rate

7.25%

Loan term (years)

PRINCIPAL AMOUNT — $10,000TOTAL INTEREST PAID — $1,156.95

90%

10%

How to qualify for a personal loan

Personal loans are typically unsecured loans, meaning they don’t require collateral to back the loan. Instead, lenders look at the information on your loan application to determine eligibility.

Creditworthiness

Your credit score and credit history are two of the most important factors for getting approved for a personal loan. Though lenders are most likely to approve borrowers with good credit or higher (a score in the mid 600s and up), borrowers with fair or bad credit can still qualify. They just may receive a high interest rate.

Lenders also consider the length of your credit history and prefer to see at least two years across one to two accounts.

Debt-to-income ratio

Debt-to-income ratio, or DTI, is another important consideration for loan approval. This measures your monthly debt payments against your gross monthly income.

If you have too much debt compared to your income, a lender may not approve you. Most lenders prefer applicants with a DTI below 50% (excluding mortgage).

» MORE: Calculate your debt-to-income ratio here

Loan details

Information about the loan you’re applying for can also influence your loan decision. For example, a larger loan with a long term is often harder to get approved for, since it means more risk for the lender. Choosing the minimum loan amount you need to cover the expense may be a better option.

» MORE: See your estimated payment amount with NerdWallet’s loan calculator

You may also choose to apply for a co-signed, joint or secured loan, which can help boost your application by adding someone with better credit to the loan or guaranteeing the loan with collateral, like your car.

Pre-qualification

It’s smart to pre-qualify for a personal loan to check your chances of approval and what loan interest rate you may get. This helps you compare loan offers between different lenders, too. Though you’ll need to provide your Social Security number, there’s no impact on your credit score.

Frequently asked questions

What can I use a personal loan for?
Common uses of personal loans include debt consolidation, home renovations and life events. Even when you see loans advertised as wedding, adoption or travel loans, that’s just branding — you’re still getting a personal loan.
An equally important question is: Should you get a personal loan? If you get a loan with a lower rate and affordable monthly payments — and it's the cheapest option available to you — then a personal loan may be a good option for you.
Check out loans for these purposes: Debt consolidation | Home improvement | Emergencies | Weddings
What credit score do I need to get a personal loan?
There’s no universal credit score requirement for a personal loan, but most lenders look for scores in at least the high-500s to mid-600s (out of 850). Borrowers with higher scores usually get more competitive rates and terms. Lenders also consider your credit history and annual income before making a credit approval decision. The better your credit and finances, the more likely you are to get approved and qualify for a lower interest rate and higher loan amount.
Shop loans by credit: Personal loans for good credit | Personal loans for bad credit
Will checking my rates affect my credit score?
Shopping around for the best rate is a good idea, but be strategic so you don’t harm your credit. Find lenders that allow you to pre-qualify for a personal loan with a soft inquiry. Pre-qualifying won’t ding your score, so you can check multiple lenders for the best terms. Time your credit applications, including credit cards and loans, roughly six months apart to avoid credit damage.
Can I qualify for a personal loan if I have bad credit?
A bad credit score doesn’t exclude you from getting a personal loan. Some online lenders have low minimum credit score requirements and consider factors like your employment and education — not just your credit score. Still, check your credit report before you apply, and fix any errors that may be bringing down your score. Opting for a secured loan, joint loan or adding a co-signer can all strengthen your chances of getting a personal loan with bad credit.
See options for bad-credit: Cosign and joint loans | Secured loans
What personal loan interest rates can I expect in February?
Personal loan rates tend to hold steady, collectively ranging from about 7% to 36% APR. Currently, average rates on personal loans are higher than rates pre-pandemic. The actual rate you get depends largely on your credit score, income and how much debt you already have. Borrowers with good to excellent credit scores may receive rates around 15% or lower, while those with bad credit will see rates above 20%.
How can I be sure a loan is safe?
A small loan from a predatory lender can damage your finances and trap you in a cycle of debt. You can avoid that by knowing the red flags of unsafe loans, such as rates above 36%, short repayment terms and no credit checks. If you need money to cover an emergency, consider options that don't require borrowing, like local nonprofits and community groups that can help with necessary expenses like rent, utilities and groceries.
How fast can I get a personal loan?
The personal loan process — from application to funding — varies by lender, but it can be as fast as one or two days. If you need a quick loan, look for lenders with instant approvals and quick funding, and make sure the information you submit is complete and accurate.
Need fast funding? See how to get a quick loan
What is the smallest amount for a personal loan?
Most personal loan lenders offer loans starting around $2,000, but some lenders offer smaller amounts you can use for small emergencies or expenses. When shopping for small loans, stick to reputable lenders that check your credit and ability to repay the loan.
Small personal loans: How to get a $1,000 loan or less