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Offer terms:
SoFi Personal Loan: Best for borrowers with good to excellent credit
Est. APR
8.99-29.99%
Loan amount
$5K-$100K
Min. credit score
None
View details
Qualifications:
SoFi is a strong option for good-credit consumers and offers low rates, no fees and flexible payments.
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
- Origination fee: 0% to 7%.
- Late fee: None.
LightStream: Best for home improvement loans
Est. APR
6.99-25.29%
Loan amount
$5K-$100K
Min. credit score
660
View details
Qualifications:
LightStream targets strong-credit borrowers for loans with no fees and low rates that vary based on loan purpose.
- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
- Origination fee: None.
- Late fee: None.
Discover® Personal Loans: Best for debt consolidation loans
Est. APR
7.99-24.99%
Loan amount
$2.5K-$40K
Min. credit score
660
View details
Qualifications:
- Minimum credit score: 660.
- Minimum annual household income: $25,000. Income can come from employment, retirement, alimony, child support, Social Security payments and disability benefits.
- Must provide a valid U.S. address and email address.
- Must be 18 years old with a valid Social Security number.
- Origination fee: None.
- Late fee: $39.
Upstart: Best for borrowers with short credit histories
Est. APR
7.80-35.99%
Loan amount
$1K-$50K
Min. credit score
None
View details
Qualifications:
Upstart is a good option for those who have short credit histories and promising financial futures.
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Upgrade: Best for borrowers with bad to fair credit
Est. APR
9.99-35.99%
Loan amount
$1K-$50K
Min. credit score
580
View details
Qualifications:
Upgrade offers personal loans plus credit-building tools; you'll need strong cash flow to qualify.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Best Egg: Best for secured personal loans
Est. APR
7.99-35.99%
Loan amount
$2K-$50K
Min. credit score
600
View details
Qualifications:
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt, but the loans come with an origination fee.
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
LendingClub: Best for joint personal loans
Est. APR
8.91-35.99%
Loan amount
$1K-$40K
Min. credit score
600
View details
Qualifications:
LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
SoFi Personal Loan: Best for borrowers with good to excellent credit
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
SoFi is a strong option for good-credit consumers and offers low rates, no fees and flexible payments.
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
- Origination fee: 0% to 7%.
- Late fee: None.
LightStream: Best for home improvement loans
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
LightStream targets strong-credit borrowers for loans with no fees and low rates that vary based on loan purpose.
- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
- Origination fee: None.
- Late fee: None.
Discover® Personal Loans: Best for debt consolidation loans
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
- Minimum credit score: 660.
- Minimum annual household income: $25,000. Income can come from employment, retirement, alimony, child support, Social Security payments and disability benefits.
- Must provide a valid U.S. address and email address.
- Must be 18 years old with a valid Social Security number.
- Origination fee: None.
- Late fee: $39.
Upstart: Best for borrowers with short credit histories
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
Upstart is a good option for those who have short credit histories and promising financial futures.
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Upgrade: Best for borrowers with bad to fair credit
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
Upgrade offers personal loans plus credit-building tools; you'll need strong cash flow to qualify.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Best Egg: Best for secured personal loans
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt, but the loans come with an origination fee.
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
LendingClub: Best for joint personal loans
Est. APR
Loan amount
Min. credit score
View details
Qualifications:
LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
A closer look at the best personal loan lenders
You can get a personal loan from online lenders, banks and credit unions. The best place to get a personal loan is from a lender that gives you the rate, term and features that fit your financial situation.
Here’s what makes our picks for the best personal loan lenders stand out:
SoFi: Best for good to excellent credit
Although SoFi doesn’t have a specific credit score requirement, the lender told NerdWallet that it caters its loans to good- and excellent-credit borrowers. The average borrower with a SoFi personal loan has a credit score of 745.
LightStream: Best for home improvement
One of the most common reasons borrowers choose a LightStream personal loan is for home improvement. LightStream offers loans of up to $100,000, which can fund expensive remodels or home addition projects. Repayment terms of up to 20 years are available for home improvement loans over $25,000.
Discover: Best debt consolidation loans
Debt consolidation is one of the most common reasons borrowers get a Discover personal loan. Discover streamlines the debt consolidation process by sending loan proceeds directly to your creditors, saving you from having to do that step. The lender says it can send funds to creditors in one business day after loan approval.
Upstart: Best for short credit history
Even if you have a thin credit file or no credit history, you may be able to qualify for an Upstart personal loan. Instead of relying strongly on a loan applicant’s credit history, Upstart has an AI-based underwriting model that considers alternative data, such as education and work experience, during the loan approval process.
Upgrade: Best for bad and fair credit
The minimum credit score for an Upgrade personal loan is 580, which makes it ideal for borrowers with bad or fair credit (scores below 690). Upgrade also offers secured and joint loans, so bad- and fair-credit borrowers can add collateral or a co-borrower to their loan application to boost their chances of approval.
Best Egg: Best for secured loans
You can secure a Best Egg personal loan in two ways: with a homeowner-secured loan or with an auto-secured loan. Homeowners can use permanent fixtures in their home, like built-in cabinets or bathroom vanities, as collateral for a secured personal loan. Alternatively, if you own a car, you can pledge your vehicle as collateral.
Best Egg offers lower annual percentage rates and larger loan amounts for its secured loans. Defaulting on a secured loan, however, means you could lose your collateral.
LendingClub: Best for joint personal loans
To strengthen your loan application, you can add a co-borrower with a higher credit score or income when applying for a LendingClub personal loan. With a joint personal loan, both applicants get access to the loan and are responsible for making monthly payments.
Where to get a personal loan
Online lenders: Online lenders offer a streamlined loan process and typically provide the fastest funding times. There are online lenders that cater to borrowers across the credit spectrum.
Banks: Bank lenders typically require borrowers to have good to excellent credit (scores of 690 or higher). Some banks provide rate discounts and perks to existing customers.
Credit unions: Credit unions are usually more willing to lend to borrowers who have fair or bad credit (scores below 690), but to get a personal loan from a credit union, you must first be a member. Federal credit unions cap interest rates at 18%.
How to compare the best personal loan lenders
Here are things to consider as you shop for a personal loan.
Pre-qualification. Many lenders let you pre-qualify online to check your estimated interest rate and loan terms. This process involves a soft credit check, which won’t affect your credit score. It pays to pre-qualify for a loan with multiple lenders and compare offers and loan features.
Annual percentage rates. Because APRs include interest rates and fees, they provide an apples-to-apples cost comparison for borrowers deciding between personal loan offers. Personal loan interest rates differ by lender, and the rate you receive depends on factors like your credit score, income and debt-to-income ratio (DTI). Use our personal loan calculator to see how APR affects monthly payments and total loan costs.
» MORE: See average personal loan rates
Fees: Some lenders charge origination fees to cover the cost of processing the loan. Lenders typically deduct this fee before sending the funds, but it is included in the loan’s annual percentage rate. Some lenders also charge late payment fees and nonsufficient funds fees, which are charged when you don’t have enough in your bank account to cover the loan’s monthly payment.
Funding time. The time it takes to get a personal loan can depend on the type of lender. Many online lenders will approve your application and send funds within a day or two after you apply. Banks and credit unions may take up to a week.
Repayment terms. Lenders may offer a wide variety of repayment terms. They typically range from two to seven years. A shorter-term loan means you’ll pay less interest, while a longer repayment term gives you lower monthly payments. Based on your budget, one may make more financial sense than the other.
Loan amount. Depending on how much money you need, certain lenders could be a better fit than others. Most lenders offer small to midsize loan amounts of $2,000 to $50,000, but some provide up to $100,000. Determine the amount you need, whether that means adding up your credit card debt to consolidate or getting a cost estimate on a home improvement project, and compare lenders that can offer that size loan.
Special features. See if the lender you’re considering offers any perks that could help you reach your financial goals. You may benefit from features like payment flexibility, financial planning or rate discounts for setting up autopay.
Expert take: How to find the best lender
"To me, the best personal lender is whichever one charges the least interest on the loan you want. Other factors like flexible payments, a mobile app and fast funding are all nice, but not nice enough to forgo a good rate. You find that lender by pre-qualifying with online lenders and banks until you're satisfied that you've gotten the best possible offer.
My biggest tip here is, if your financial institution offers personal loans, pre-qualify or apply with them after you’ve shopped elsewhere. Your bank or credit union is likely to give you the best deal, but you'll only be sure if you’ve already done your research."
— Annie Millerbernd, Personal Loans Assistant Assigning Editor
Explore the top personal loans and lenders in each of these categories:
How to get a personal loan
Check your credit. Your credit score is a primary factor lenders use to determine whether you qualify for a personal loan and the rate you receive. Resolve any errors that might be hurting your score and, if you can, pay down debts to reduce your DTI ratio. Get a free credit report with NerdWallet or at AnnualCreditReport.com.
Pre-qualify with multiple lenders. Pre-qualifying gives you an idea of the rate and terms you can expect. Compare pre-qualified offers to find the lowest APR and monthly payments that fit your budget.
Apply. The formal application process usually requires documents to verify your identity and income. Once approved, you’ll typically receive your loan funds within a week.
Nerdy Tip
Borrowers with bad credit (a score under 630) can strengthen their loan applications by opting for a secured loan or adding a co-signer or co-borrower with stronger credit or a higher income.
Pros and cons of personal loans
Depending on your financial situation and the loan’s purpose, a personal loan can be the right move or one you should sidestep.
- Lower starting APRs than credit cards.
- Fixed rates and monthly payments.
- Flexible loan amounts.
- No collateral.
- Maximum APRs can be high.
- Possible fees.
- Increases debt.
Pros
Lower starting APRs than credit cards. For borrowers with strong credit, personal loans typically have lower APRs than credit cards. While some credit cards offer 0% interest during an introductory period, the rates are generally higher after the period ends.
Fixed rates and monthly payments. Personal loans have fixed rates and monthly payments over a set term, so you always know what you owe and for how long. Other financing options like home equity lines of credit have variable rates, meaning the monthly payments fluctuate.
Flexible loan amounts. Depending on the lender and your creditworthiness, you may have access to personal loan amounts of $1,000 to $100,000. This range meets a wide variety of expenses, from small emergencies to large home improvement projects.
No collateral. Unlike home equity loans that require you to secure the loan with your house, unsecured personal loans don’t require collateral. You risk hurting your credit if you can’t repay, but you won't lose any assets.
Cons
Maximum APRs can be high. If you have a low credit score, APRs on personal loans can be higher than credit card APRs.
Possible fees. Borrowers may have to pay fees — like origination or late fees — along with their loan payments.
Increases debt. Taking a personal loan adds debt to your budget, so it's important to factor in the additional obligation and feel comfortable about paying it off.
» MORE: Pros and cons of personal loans
Last updated on December 2, 2024
Frequently asked questions
- What are lenders’ requirements for personal loans?
Lenders have different requirements but generally consider your credit profile, income and debts during the loan approval process. You’ll typically need to submit proof of your identity and financial information, which can include documents such as your driver’s license, Social Security number, pay stubs, tax returns and bank statements.
- Do lenders need to know how I plan to use the loan?
Most lenders will ask about the purpose of the loan, but you can use a personal loan for almost any reason. A lender may have restrictions on using the money for specific purposes, like higher education or investing.
- How long do lenders take to approve and fund a personal loan?
Once you’ve submitted the application, lenders can usually let you know if you’ve been approved within one to two days. Most lenders can fund a personal loan within a week, though some offer same- or next-day funding.
- Are there personal loan lenders that work with bad-credit borrowers?
Credit score requirements vary among personal loan lenders. Some lenders accept borrowers with good or excellent credit only; others provide loans to bad-credit borrowers. Learn how to get a loan with bad credit.
- Are there personal loan lenders that work with low-income borrowers?
Borrowers with low income may qualify for personal loans offered by lenders with soft income requirements. Some lenders don’t have minimum income requirements. Include all sources of income, such as child support, alimony or Social Security payments, on your application to improve your chances of qualifying for a loan.
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 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 Best Personal Loan Lenders of December 2024
- SoFi Personal Loan: Best for borrowers with good to excellent credit
- LightStream: Best for home improvement loans
- Discover® Personal Loans: Best for debt consolidation loans
- Upstart: Best for borrowers with short credit histories
- Upgrade: Best for borrowers with bad to fair credit
- Best Egg: Best for secured personal loans
- LendingClub: Best for joint personal loans
