Best Personal Loans of July 2020

Compare the best online personal loans for good and bad credit, debt consolidation and more. Pre-qualify for a loan with multiple lenders.

The best personal loan helps you reach a financial goal, whether it’s paying off high-interest debt or funding a large expense.

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. We always recommend you know your credit score and compare loans from multiple lenders before making a choice.

The best personal loan helps you reach a financial goal, whether it’s paying off high-interest debt or funding a large expense.

Summary of Best Personal Loans of July 2020

Lender	NerdWallet Rating	Est. APR	Min. Credit Score	Learn More
LightStream Check Rate on LightStream's website	5.0 /5 Best for Personal loans for good to excellent credit + Personal loans for home improvement + Personal loans for fast funding	5.49 - 20.49%	660	Check Rate on LightStream's website
SoFi Check Rate on SoFi's website	5.0 /5 Best for Personal loans for good to excellent credit + Personal loans for home improvement	5.99 - 16.19%	680	Check Rate on SoFi's website
Marcus by Goldman Sachs Check Rate on Goldman Sachs's website	5.0 /5 Best for Personal loans for good to excellent credit + Personal loans for debt consolidation + Personal loans from banks	6.99 - 19.99%	690	Check Rate on Goldman Sachs's website
Upgrade Check Rate on Upgrade's website	4.5 /5 Best for Personal loans for fair to bad credit	7.99 - 35.97%	600	Check Rate on Upgrade's website
Avant Check Rate on Avant's website	4.5 /5 Best for Personal loans for fair to bad credit	9.95 - 35.99%	580	Check Rate on Avant's website
OneMain Financial Check Rate on OneMain Financial's website	4.0 /5 Best for Personal loans for fair to bad credit	18.00 - 35.99%	None	Check Rate on OneMain Financial's website
Upstart See my rates on NerdWallet's secure website	4.5 /5 Best for Personal loans for fair to bad credit	7.00 - 35.99%	600	See my rates on NerdWallet's secure website
Payoff Check Rate on Payoff's website	4.5 /5 Best for Personal loans for debt consolidation	5.99 - 24.99%	640	Check Rate on Payoff's website
Discover® Personal Loans See my rates on NerdWallet's secure website	5.0 /5 Best for Personal loans for debt consolidation + Personal loans from banks	6.99 - 24.99%	660	See my rates on NerdWallet's secure website
Rocket Loans See my rates on NerdWallet's secure website	4.0 /5 Best for Personal loans for fast funding	7.16 - 29.99%	580	See my rates on NerdWallet's secure website

Our picks for

Personal loans for good to excellent credit

Borrowers with good to excellent credit scores (690 and above) may have their pick of personal loan companies. Those on our list of best lenders have low rates and no fees.

Check Rate

on LightStream's website

LightStream

5.0

NerdWallet rating

Min. Credit Score

660

Est. APR

5.49 - 20.49%

Loan Amount

$5,000 - $100,000

Check Rate

on LightStream's website

Min. Credit Score

660

Key facts

LightStream targets strong-credit borrowers with no fees and low rates that vary based on loan purpose.

Pros

No fees.
Rate discount for autopay.
Low starting rates.

Cons

Does not offer pre-qualification on its website.
Requires several years of credit history.

Qualifications

Minimum credit score of 660.
Enough income to pay existing debts and a new LightStream loan.
Maximum debt-to-income ratio varies depending on existing assets and the reason for the loan.

Available Term Lengths

2 to 7 years

Fees

Origination fee: None.
Late fee: None.

Disclaimer

Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). Rate quote includes AutoPay discount. AutoPay discount is only available when selected prior to loan funding. To obtain a loan, you must complete an application on LightStream.com, which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $5,000 loan at 12.8% APR with a term of 3 years would result in 36 monthly payments of $168. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. SunTrust now Truist is an Equal Housing Lender. © 2020 Truist Financial Corporation. SunTrust®, Truist, LightStream®, the LightStream logo, and the SunTrust logo are service marks of Truist Financial Corporation. All rights reserved. All other trademarks are the property of their respective owners. Lending services provided by SunTrust now Truist Bank.

Read Full Review

Check Rate

on SoFi's website

SoFi

5.0

NerdWallet rating

Min. Credit Score

680

Est. APR

5.99 - 16.19%

Loan Amount

$5,000 - $100,000

Check Rate

on SoFi's website

Min. Credit Score

680

Key facts

SoFi is a strong option for good-credit consumers, offering low rates, no fees and flexible payments.

Pros

Soft credit check with pre-qualify.
Flexible payment options.
Offers member perks.

Cons

Does not offer direct payment to creditors with debt consolidation loans.
Does not offer refinance options.

Qualifications

Minimum credit score: 680, but typically 700 or higher.
Minimum annual income: None; borrowers' average is over $100,000.

Available Term Lengths

2 to 7 years

Fees

Origination fee: None.
Late fee: None.

Disclaimer

Fixed rates from 5.99% APR to 16.19% APR (with AutoPay). SoFi rate ranges are current as of July 10, 2020 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

Read Full Review

Check Rate

on Goldman Sachs's website

Marcus by Goldman Sachs

5.0

NerdWallet rating

Min. Credit Score

690

Est. APR

6.99 - 19.99%

Loan Amount

$3,500 - $40,000

Check Rate

on Goldman Sachs's website

Min. Credit Score

690

Key facts

Marcus loans stand out for low rates, no fees, and flexible loan terms and payment options.

Pros

No fees.
Flexible payment options.
Directly pays creditors for debt consolidation loans.
Rate discount with autopay.

Cons

Requires good credit.
No co-sign option.

Qualifications

At least 18 years old (19 in Alabama; 21 in Mississippi and Puerto Rico).
Valid U.S. bank account, Social Security number or tax ID.
660+ credit score.
For debt consolidation loans, you may be required to send part of the loan directly to your creditors.

Available Term Lengths

3 to 6 years

Fees

Origination fee: None.
Late fee: None.

Disclaimer

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.

Read Full Review

Our picks for

Personal loans for fair to bad credit

Borrowers with troubled credit histories are more likely to qualify with lenders that accept bad to fair credit (300-689). The best lenders consider factors beyond your credit score and help you build credit.

Check Rate

on Upgrade's website

Upgrade

4.5

NerdWallet rating

Min. Credit Score

600

Est. APR

7.99 - 35.97%

Loan Amount

$1,000 - $35,000

Check Rate

on Upgrade's website

Min. Credit Score

600

Key facts

Upgrade offers personal loans plus credit-building tools; you'll need strong cash flow to qualify.

Pros

Credit health tools.
Hardship plans.
Directly pays creditors for debt consolidation loans used to pay off credit cards.

Cons

Origination and late fees.

Qualifications

Minimum credit score: 600.
Minimum annual income: None, but most applicants earn more than $30,000.
Minimum monthly free cash flow: $800.
Maximum debt-to-income ratio: 60%.
Unavailable to borrowers in: Iowa or West Virginia.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 2.9% to 8%

Disclaimer

Personal loans made through Upgrade feature APRs of 7.99%-35.97%. All personal loans have a 2.9% to 8% 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/.

Read Full Review

Check Rate

on Avant's website

Avant

4.5

NerdWallet rating

Min. Credit Score

580

Est. APR

9.95 - 35.99%

Loan Amount

$2,000 - $35,000

Check Rate

on Avant's website

Min. Credit Score

580

Key facts

Low starting rates make Avant a good option for borrowers with low credit scores and income.

Pros

Able to fund loans within one business day.
Soft credit check with pre-qualification.
Option to change your payment date.

Cons

Charges origination fee.
No option to include co-signer.

Qualifications

Minimum credit score of 580.
At least $20,000 in gross annual income.

Available Term Lengths

2 to 5 years

Fees

Administrative fee: Up to 4.75%.
Late fee: $25 (most states).
Unsuccessful payment fee: $15 (most states).

Disclaimer

A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. Minimum loan amounts may vary by state. If approved, the actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. An administration fee of up to 4.75% will be deducted from the loan proceeds. Avant branded credit products are issued by Webbank, member FDIC

Read Full Review

Check Rate

on OneMain Financial's website

OneMain Financial

4.0

NerdWallet rating

Min. Credit Score

None

Est. APR

18.00 - 35.99%

Loan Amount

$1,500 - $20,000

Check Rate

on OneMain Financial's website

Min. Credit Score

None

Key facts

OneMain is an option for bad credit borrowers, but it comes with high starting rates and an origination fee.

Pros

Fast funding.
Offers joint and secured loan options.
Free credit score access.

Cons

May charge origination fee.
High rates.

Qualifications

Minimum credit score: None, average is 600 to 650.
Minimum credit history: Not provided.
Minimum annual income: None, average is $49,000.

Available Term Lengths

2 to 5 years

Fees

Origination fee: Varies by state.

Disclaimer

Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

Read Full Review

See my rates

on NerdWallet's secure website

Upstart

4.5

NerdWallet rating

Min. Credit Score

600

Est. APR

7.00 - 35.99%

Loan Amount

$1,000 - $50,000

See my rates

on NerdWallet's secure website

Min. Credit Score

600

Key facts

Upstart is a good option for those who have short credit histories and promising financial futures.

Pros

Accepts borrowers new to credit.
Fast funding.

Cons

Origination and late fees.
No secured or co-sign option.

Qualifications

Minimum credit score: 620.
Minimum credit history: None.
Minimum annual income: $12,000.
Max debt-to-income ratio: 45%.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 0% - 8%.
Late fee: 5% of past due amount or $15, whichever is greater.

Disclaimer

This offer is conditioned upon final approval from an Upstart Powered bank or licensed lender which is based on consideration and verification of financial and non-financial information. Rate and loan amount are subject to change based upon information provided in your full application. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into a contract for the extension of credit and who currently resides in the United States. Duplicate offers received are void. Closing your loan is contingent upon meeting certain eligibility requirements and your agreement to the terms and conditions of Upstart and a bank or a licensed lender partnered with Upstart. Loans are originated by Upstart Powered banks and licensed lenders on the Upstart platform. Loans in Maryland, Massachusetts, Nevada, and Nebraska are made by Cross River Bank, an FDIC-insured New Jersey state chartered commercial bank. Loan amounts from $1k-$50k* Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5,100. The minimum loan amount in GA is $3,100. APRs from X-Y, loan term (3 or 5 year loan terms), amount of monthly payment** **The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of X% and 36 monthly payments of $Y per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

Read Full Review

Our picks for

Personal loans for debt consolidation

Getting a personal loan is one way to consolidate credit card debt. Our list includes lenders whose starting rates are lower than typical credit card rates.

Check Rate

on Payoff's website

Payoff

4.5

NerdWallet rating

Min. Credit Score

640

Est. APR

5.99 - 24.99%

Loan Amount

$5,000 - $35,000

Check Rate

on Payoff's website

Min. Credit Score

640

Key facts

Payoff offers loans plus ongoing support to help good-credit borrowers consolidate credit card debt.

Pros

Competitive rates among similar lenders.
Offers online educational resources.
Offers direct payment to creditors with debt consolidation loans.

Cons

No co-sign or secured loan option.
Charges origination fee.

Qualifications

Minimum credit score of 640.
Minimum credit history: 3 years.
Minimum annual income: $40,000.
Debt-to-income ratio: less than 50%.

Available Term Lengths

2 to 5 years

Fees

Origination fee: 0% - 5%.

Disclaimer

This does not constitute an actual commitment to lend or an offer to extend credit. Upon submitting a loan application, you may be asked to provide additional documents to enable us to verify your income, assets, and financial condition. Your interest rate and terms for which you are approved will be shown to you as part of the online application process. Most applicants will receive a variety of loan offerings to choose from, with varying loan amounts and interest rates. Borrower subject to a loan origination fee, which is deducted from the loan proceeds. Refer to full borrower agreement for all terms, conditions and requirements.

Read Full Review

Check Rate

on Goldman Sachs's website

Marcus by Goldman Sachs

5.0

NerdWallet rating

Min. Credit Score

690

Est. APR

6.99 - 19.99%

Loan Amount

$3,500 - $40,000

Check Rate

on Goldman Sachs's website

Min. Credit Score

690

Key facts

Marcus loans stand out for low rates, no fees, and flexible loan terms and payment options.

Pros

No fees.
Flexible payment options.
Directly pays creditors for debt consolidation loans.
Rate discount with autopay.

Cons

Requires good credit.
No co-sign option.

Qualifications

At least 18 years old (19 in Alabama; 21 in Mississippi and Puerto Rico).
Valid U.S. bank account, Social Security number or tax ID.
660+ credit score.
For debt consolidation loans, you may be required to send part of the loan directly to your creditors.

Available Term Lengths

3 to 6 years

Fees

Origination fee: None.
Late fee: None.

Disclaimer

Read Full Review

See my rates

on NerdWallet's secure website

Discover® Personal Loans

5.0

NerdWallet rating

Min. Credit Score

660

Est. APR

6.99 - 24.99%

Loan Amount

$2,500 - $35,000

See my rates

on NerdWallet's secure website

Min. Credit Score

660

Key facts

Discover is ideal for consumers with good to excellent credit who want to consolidate high-interest debt.

Pros

No origination fee.
Option to directly pay creditors.
Flexible payment options.

Cons

Charges late fees.
No refinancing option.

Qualifications

Minimum credit score required: 660; borrowers' average score is about 750.
Minimum gross income required: $25,000, but typically much higher.
Minimum credit history: Not provided.
Maximum debt-to-income ratio: Not provided.

Available Term Lengths

3 to 7 years

Fees

Origination fee: None.
Late fee: $39.

Disclaimer

This is not a commitment to lend from Discover Personal Loans. Your approval for a loan is determined once you apply and is based on your application information and credit history. Your APR will be between 6.99-24.99% based upon creditworthiness at time of application. Not all applications will be approved.

Read Full Review

Our picks for

Personal loans for home improvement

A personal loan is an option for financing home improvements if you don’t have a lot of equity in your home. We chose lenders with low rates and loan amounts large enough to cover most home improvement projects.

Check Rate

on LightStream's website

LightStream

5.0

NerdWallet rating

Min. Credit Score

660

Est. APR

5.49 - 20.49%

Loan Amount

$5,000 - $100,000

Check Rate

on LightStream's website

Min. Credit Score

660

Key facts

LightStream targets strong-credit borrowers with high loan amounts, no fees and low rates that vary based on loan purpose.

Pros

No fees.
Rate discount for autopay.
Low starting rates.

Cons

Does not offer pre-qualification on its website.
Requires several years of credit history.

Qualifications

Minimum credit score of 660.
Enough income to pay existing debts and a new LightStream loan.
Maximum debt-to-income ratio varies depending on existing assets and the reason for the loan.

Available Term Lengths

2 to 7 years

Fees

Origination fee: None.
Late fee: None.

Disclaimer

Read Full Review

Check Rate

on SoFi's website

SoFi

5.0

NerdWallet rating

Min. Credit Score

680

Est. APR

5.99 - 16.19%

Loan Amount

$5,000 - $100,000

Check Rate

on SoFi's website

Min. Credit Score

680

Key facts

SoFi is a strong option for good-credit consumers, offering low rates, no fees and flexible payments.

Pros

Soft credit check with pre-qualify.
Flexible payment options.
Offers member perks.

Cons

Does not offer direct payment to creditors with debt consolidation loans.
Does not offer refinance options.

Qualifications

Minimum credit score: 680, but typically 700 or higher.
Minimum annual income: None; borrowers' average is over $100,000.

Available Term Lengths

2 to 7 years

Fees

Origination fee: None.
Late fee: None.

Disclaimer

Read Full Review

Our picks for

Personal loans for fast funding

With these lenders, you may get your loan funded the same day.

Check Rate

on LightStream's website

LightStream

5.0

NerdWallet rating

Min. Credit Score

660

Est. APR

5.49 - 20.49%

Loan Amount

$5,000 - $100,000

Check Rate

on LightStream's website

Min. Credit Score

660

Key facts

LightStream offers same-day funding if your application is approved before 2:30 p.m. ET on a business day.

Pros

No fees.
Rate discount for autopay.
Low starting rates.

Cons

Does not offer pre-qualification on its website.
Requires several years of credit history.

Qualifications

Minimum credit score of 660.
Enough income to pay existing debts and a new LightStream loan.
Maximum debt-to-income ratio varies depending on existing assets and the reason for the loan.

Available Term Lengths

2 to 7 years

Fees

Origination fee: None.
Late fee: None.

Disclaimer

Read Full Review

See my rates

on NerdWallet's secure website

Rocket Loans

4.0

NerdWallet rating

Min. Credit Score

580

Est. APR

7.16 - 29.99%

Loan Amount

$2,000 - $45,000

See my rates

on NerdWallet's secure website

Min. Credit Score

580

Key facts

Rocket Loans requires you to complete your application and get approved before 1 p.m. ET.

Pros

Able to fund some loans the same day as approval.
Soft credit check with pre-qualification.
Rate discount for autopay.

Cons

Charges origination fee.
Does not offer direct payment to creditors for debt consolidation loans.
No co-sign, joint or secured loan option.

Qualifications

Minimum credit score: 580; borrowers’ average is 710. Rocket Loans uses the FICO 9 credit scoring model.
Maximum debt-to-income ratio: 40%; borrowers’ average is 14%. This lender doesn’t include a mortgage in its debt-to-income calculation.
Minimum annual income: $24,000; borrowers’ average is $85,000.
Minimum credit history: Two years; borrowers’ average is 18 years.

Available Term Lengths

3 to 5 years

Fees

Origination fee: 1% - 6%.
Late fee: $15 after 10-day grace period.
Unsuccessful payment fee: $15.

Disclaimer

All personal loans are made by Cross River Bank, a New Jersey state chartered commercial bank, Member FDIC, Equal Housing Lender. All loans are unsecured, fully amortizing personal loans. Eligibility for a loan is not guaranteed. Please refer to our Disclosures and Licenses page for state required disclosures, licenses, and lending restrictions. Borrower must be a U.S. citizen or permanent U.S. resident alien at least 18 years of age (in Nebraska and Alabama a borrower must be at least 19 years of age). All loan applications are subject to credit review and approval. Offered loan terms depend upon your credit profile, requested amount, requested loan term, credit usage, credit history and other factors. Not all borrowers receive the lowest interest rate. To qualify for the lowest rate, you must have excellent credit, meet certain conditions, and select autopay. Rates and Terms are subject to change at any time without notice. Please refer to RocketLoans.com and our Terms of Use for additional terms and conditions.

Read Full Review

Our picks for

Personal loans from banks

Not all large banks offer personal loans. These lenders' loans have low starting rates for good- to excellent-credit borrowers.

Check Rate

on Goldman Sachs's website

Marcus by Goldman Sachs

5.0

NerdWallet rating

Min. Credit Score

690

Est. APR

6.99 - 19.99%

Loan Amount

$3,500 - $40,000

Check Rate

on Goldman Sachs's website

Min. Credit Score

690

Key facts

Among banks that offer personal loans, Marcus stands out for low rates, no fees, flexible payment options and a transparent online application process.

Pros

No fees.
Flexible payment options.
Directly pays creditors for debt consolidation loans.
Rate discount with autopay.

Cons

Requires good credit.
No co-sign option.

Qualifications

At least 18 years old (19 in Alabama; 21 in Mississippi and Puerto Rico).
Valid U.S. bank account, Social Security number or tax ID.
660+ credit score.
For debt consolidation loans, you may be required to send part of the loan directly to your creditors.

Available Term Lengths

3 to 6 years

Fees

Origination fee: None.
Late fee: None.

Disclaimer

Read Full Review

See my rates

on NerdWallet's secure website

Discover® Personal Loans

5.0

NerdWallet rating

Min. Credit Score

660

Est. APR

6.99 - 24.99%

Loan Amount

$2,500 - $35,000

See my rates

on NerdWallet's secure website

Min. Credit Score

660

Key facts

Discover offers low starting rates on its personal loans and allows for direct payment to creditors, which makes consolidating debt easier.

Pros

No origination fee.
Option to directly pay creditors.
Flexible payment options.

Cons

Charges late fees.
No refinancing option.

Qualifications

Minimum credit score required: 660; borrowers' average score is about 750.
Minimum gross income required: $25,000, but typically much higher.
Minimum credit history: Not provided.
Maximum debt-to-income ratio: Not provided.

Available Term Lengths

3 to 7 years

Fees

Origination fee: None.
Late fee: $39.

Disclaimer

Read Full Review

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.

» MORE: Can a personal loan help in a crisis?

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.

» MORE: Weigh the options: Personal loan or credit card

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.

» MORE: 4 keys to successful debt consolidation

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. The estimated APR for a borrower with excellent credit is 13.9%, 18% for good credit, 21.8% for fair credit, and 27.2% for bad credit, according to NerdWallet’s latest lender survey.

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.

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 July 2, 2020

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 July 2020

LightStream: Best for Personal loans for good to excellent credit + Personal loans for home improvement + Personal loans for fast funding

SoFi: Best for Personal loans for good to excellent credit + Personal loans for home improvement

Marcus by Goldman Sachs: Best for Personal loans for good to excellent credit + Personal loans for debt consolidation + Personal loans from banks

Upgrade: Best for Personal loans for fair to bad credit

Avant: Best for Personal loans for fair to bad credit

OneMain Financial : Best for Personal loans for fair to bad credit

Upstart: Best for Personal loans for fair to bad credit

Payoff: Best for Personal loans for debt consolidation

Discover® Personal Loans: Best for Personal loans for debt consolidation + Personal loans from banks

Rocket Loans: Best for Personal loans for fast funding

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.

See your loan options based on your credit score.

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 lenders that offer fast 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 if you're an existing member of a credit union or customer at a bank.

Pre-qualifying for a loan lets you compare offers to find the best one.

Some lenders are offering low-rate small loans, while others are allowing payment relief on existing loans in response to the COVID-19 crisis. See relief options available from lenders.