BEST OF
Best Personal Loans of February 2021
Compare personal loans for good and bad credit, debt consolidation and more.
Personal loans have fixed annual percentage rates, generally between 6% and 36%. The loan with the lowest rate is the least expensive — and usually the best choice. Other features, including no fees, soft credit checks and whether lenders directly pay creditors if you’re consolidating debt, set some loans apart.
We spent hours reviewing loans from over 30 personal loan companies to find the best online rates and loan features.
LightStream: Best for home improvement loans.
SoFi: Best for good to excellent credit.
Marcus by Goldman Sachs: Best for bank loans.
Upgrade: Best for fair credit.
Upstart: Best for short credit history.
Avant: Best for bad credit.
Payoff: Best for credit card consolidation.
Discover: Best for debt consolidation.
Rocket Loans: Best for fast funding.
We always recommend you know your credit score and compare loans from multiple lenders before making a choice.
Personal loans have fixed annual percentage rates, generally between 6% and 36%. The loan with the lowest rate is the least expensive — and usually the best choice. Other features, including no fees, soft credit checks and whether lenders directly pay creditors if you’re consolidating debt, set some loans apart.
We spent hours reviewing loans from over 30 personal loan companies to find the best online rates and loan features.
LightStream: Best for home improvement loans.
SoFi: Best for good to excellent credit.
Marcus by Goldman Sachs: Best for bank loans.
Upgrade: Best for fair credit.
Upstart: Best for short credit history.
Avant: Best for bad credit.
Payoff: Best for credit card consolidation.
Discover: Best for debt consolidation.
Rocket Loans: Best for fast funding.
We always recommend you know your credit score and compare loans from multiple lenders before making a choice.
Summary of Best Personal Loans of February 2021
Lender | NerdWallet Rating | Est. APR | Min. Credit Score | Learn More |
---|---|---|---|---|
Best for Personal loans for credit card consolidation | 5.99 - 24.99% | 640 | on Payoff's website | |
Best for Personal loans for good to excellent credit | 5.99 - 20.69% | 680 | on SoFi's website | |
Best for Personal loans for fair credit | 6.94 - 35.97% | 580 | on Upgrade's website | |
Best for Personal loans for bad credit | 9.95 - 35.99% | 550 | on Avant's website | |
Best for Home improvement loans | 4.49 - 20.49% | 660 | on LightStream's website | |
Best for Bank loans | 6.99 - 19.99% | 660 | on Goldman Sachs's website | |
Best for Personal loans for short credit history | 6.16 - 35.99% | 580 | on Upstart's website | |
Best for Personal loans for fast funding | 7.16 - 29.99% | 580 | See my rates on NerdWallet's secure website | |
Best for Debt consolidation loans | 6.99 - 24.99% | 660 | See my rates on NerdWallet's secure website |
Our pick for
Personal loans for credit card consolidation
on Payoff's website
Payoff
Min. Credit Score
Est. APR
Loan Amount
on Payoff's website
Our pick for
Personal loans for good to excellent credit
on SoFi's website
SoFi

Min. Credit Score
Est. APR
Loan Amount
on SoFi's website
Our pick for
Personal loans for fair credit
on Upgrade's website
Upgrade
Min. Credit Score
Est. APR
Loan Amount
on Upgrade's website
Our pick for
Personal loans for bad credit
on Avant's website
Avant
Min. Credit Score
Est. APR
Loan Amount
on Avant's website
Our pick for
Home improvement loans
on LightStream's website
LightStream
Min. Credit Score
Est. APR
Loan Amount
on LightStream's website
Our pick for
Bank loans
on Goldman Sachs's website
Marcus by Goldman Sachs
Min. Credit Score
Est. APR
Loan Amount
on Goldman Sachs's website
Our pick for
Personal loans for short credit history
on Upstart's website
Upstart
Min. Credit Score
Est. APR
Loan Amount
on Upstart's website
Our pick for
Personal loans for fast funding

on NerdWallet's secure website
Rocket Loans

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
Our pick for
Debt consolidation loans
on NerdWallet's secure website
Discover® Personal Loans
Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
When should I get a personal loan?
Taking a personal loan makes sense when it's the least expensive form of credit, when it's used toward something that has the potential to increase your financial standing, like debt consolidation or home improvements, and when you can manage the monthly payments without stressing your budget.
On the other hand, a personal loan used for discretionary expenses, like a vacation, can be expensive. NerdWallet recommends using savings for nonessentials, to avoid finance charges.
If you're borrowing for emergency or medical expenses, consider less-expensive alternatives first, such as community assistance or payment plans.
Loan interest rates and fees
Personal loan interest rates vary by lender, and the rate you receive will depend on factors such as your credit score, income and debt-to-income ratio.
Borrowers with high credit scores generally receive lower rates, from 10% to 12%, while those with low credit scores might get an APR around 30%. Here’s what interest rates on personal loans look like, on average:
How's your credit? | Score range | Estimated APR |
---|---|---|
Excellent | 720-850 | 11.8% |
Good | 690-719 | 17.4% |
Fair | 630-689 | 23.4% |
Bad | 300-629 | 28.7% (Lowest scores unlikely to qualify.) |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace between Jan. 1, 2020, and Dec. 31, 2020. Rates are estimates only and not specific to any lender.
Some lenders charge origination fees to cover the cost of processing the loan. Lenders deduct the fee from the loan proceeds or roll it into the balance. This one-time, upfront fee is included in the loan’s APR, so keep this in mind when comparing costs between lenders.
Other fees to watch out for include late fees, fees for paying off your loan early and insufficient funds fees.
Personal loans vs. credit cards
Average interest rates on personal loans can be lower for good-credit borrowers than average rates on credit cards. In some situations, the fixed interest and monthly payments associated with personal loans, which are installment loans, can be preferable to the revolving credit that credit cards have.
In general, personal loans work better for large expenses that you can repay over years, while credit cards are best for smaller expenses that you can pay off each month.
Before you take a personal loan
You don't need perfect credit to get a personal loan, but doing what you can to strengthen your credit before you apply can boost your chances of qualifying and get you a lower interest rate.
Use our personal loan calculator to see estimated rates and payments based on credit scores.
Shop around and compare loans, not just interest rates but also fees and features. The APR gives an apples-to-apples way to compare total costs between loans.
If you're getting a personal loan to consolidate debt, make a plan to pay off your creditors and avoid running up debt again. Building a budget that accounts for debt repayments is a good place to start.
Pre-qualify for a personal loan
Most online lenders will give you an estimated interest rate by performing a soft check of your credit. This won’t affect your credit score, so it pays to take the steps to pre-qualify for a loan with multiple lenders and compare rates and loan features. You can pre-qualify on NerdWallet and see rates from lenders that partner with us.
After you compare offers and select a loan with the lowest rate and payments that fit your budget, you'll formally apply for the loan.
The loan application may require additional personal information, including employment status and education history. You may also need to authorize the lender to pull your credit reports and verify your income.
Your first loan payment is usually due within 30 days of loan approval and funding.
Learn more about the loans and lenders in each of these categories:
Explore more uses for personal loans:
Last updated on January 11, 2021
Methodology
NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.
To recap our selections...
NerdWallet's Best Personal Loans of February 2021
- Payoff: Best for Personal loans for credit card consolidation
- SoFi: Best for Personal loans for good to excellent credit
- Upgrade: Best for Personal loans for fair credit
- Avant: Best for Personal loans for bad credit
- LightStream: Best for Home improvement loans
- Marcus by Goldman Sachs: Best for Bank loans
- Upstart: Best for Personal loans for short credit history
- Rocket Loans: Best for Personal loans for fast funding
- Discover® Personal Loans: Best for Debt consolidation loans
Frequently asked questions
Credit score requirements vary among lenders. Some lenders accept only borrowers with good or better credit; others will loan to bad-credit borrowers. Learn how to get a loan with bad credit.
Many online lenders can approve qualified borrowers' applications and fund loans the same or next day, while others may take up to a week. Compare fast personal loans.
Online lenders, banks and credit unions all offer unsecured personal loans. While some online lenders can offer low rates and fast funding to many people, you may get a better offer from your credit union or bank if you're an existing customer. Learn more about where to get a personal loan.