Best Online Lenders for Personal Loans of 2025

Our guide to the best online lenders

The best online lenders offer personal loans with affordable monthly payments to borrowers across the credit spectrum. Here’s what stands out about our picks for the best online personal loans.

Discover: Best online loans overall

Discover’s low rates, lack of origination fees and wide repayment terms make it a favorable option for many borrowers. The lender offers next-day funding and is available nationwide.

SoFi: Best online loans for excellent credit

While SoFi doesn’t have a specific minimum credit score requirement, the lender told NerdWallet the average credit score for its borrowers is 745. Borrowers with excellent credit (scores in the high 700s or higher) may find it easy to qualify.

Best Egg: Best online loans for good credit

The average credit score for a Best Egg personal loan ranges from 680 to 720, according to the lender. Borrowers with good credit (scores from the mid-600s to mid-700s) align with the typical credit profile for Best Egg borrowers.

Upstart: Best online loans for fair credit

Upstart doesn’t have a strict credit score requirement, making it favorable for borrowers with fair credit (scores from the mid-500s to low 600s). The lender uses an underwriting model that factors in alternative data points, such as education and work history, rather than relying heavily on credit scores.

Upgrade: Best online loans for bad credit

Upgrade has a minimum credit score requirement of 580, making it a fitting option for bad-credit borrowers (scores from 300 to the high 500s). It also offers various credit-building tools, such as free credit score access, a credit score simulator and personalized recommendations to boost your credit.

LightStream: Best online loans with no fees

LightStream’s personal loan comes with no origination fees, late fees or non-sufficient funds fees, which is rare for online lenders. Its maximum loan amount of $100,000 is also unique among lenders.

LendingPoint: Best online loans for fast funding

LendingPoint says it provides loan approval decisions within five minutes of receiving a completed application and funds approved loans within 24 hours. A quickly funded loan can be essential if you need to borrow money for an emergency.

LendingClub: Best online loans for joint borrowers

Joint loans aren’t common among online lenders, but LendingClub lets borrowers add a co-borrower to their loan application. A co-borrower with a higher credit score or income could boost your chances of qualifying for a personal loan or getting a better rate.

Reach Financial: Best online loans for debt payoff

Reach Financial’s personal loans are exclusively used for credit card consolidation and debt payoff. These loans can help you refinance up to $40,000 of debt with APRs starting in the single digits.

» MORE: Where to get a personal loan

Online loans and their rates

Personal loans from online lenders tend to have a streamlined application process and are typically funded within a day or two after loan approval. Online loans can be used for almost any purpose, including emergencies, home repairs or debt consolidation.

Lenders evaluate your credit score, income and debt to determine whether you qualify and at what annual percentage rate. Online loans are available to borrowers across the credit spectrum, but the APR tends to be higher if you have bad credit.

Financial experts recommend a rate below 36% for a loan to be affordable. Here’s a snapshot of average estimated personal loan APRs based on credit score ranges.

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from Feb. 1, 2025, through Feb. 28, 2025. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.

Plug your estimated APR into our personal loan calculator along with your desired loan amount and loan term to find out how much your monthly payments could be. A longer repayment term will give you lower monthly payments, but will cost more in interest overall.

How to get a loan online

1. Check your credit

It’s not required, but a good first step before applying for an online loan is to check your credit report and fix any errors, such as inaccurate accounts or wrongly reported payment history. Doing so can boost your credit and get you a lower rate on a loan. You can get your free credit report on NerdWallet or at AnnualCreditReport.com.

2. Pre-qualify and compare online offers

Most online lenders let you pre-qualify for a personal loan within minutes using a soft credit check, which allows you to preview estimated rates without impacting your credit score. You may need to supply basic personal information, including your Social Security number, and details about your desired loan. Compare offers from multiple online lenders to find the lowest interest rate. If rates are similar between lenders, compare other loan features, like flexible payment dates or the ability to add a co-borrower.

» MORE: Pre-qualify with multiple online lenders for free on NerdWallet

3. Submit a formal application

After comparing offers from multiple lenders, pick the online loan that best fits your budget and financial needs. Apply for the personal loan online by uploading the required documents, which may include a form of identification and proof of income such as a pay stub or W-2. The lender will perform a hard credit check after you apply, which will cause your credit score to dip a few points.

» MORE: What are the requirements for a personal loan?

4. Sign loan documents and get funded

If you’re approved for the loan, you’ll receive loan documents to sign electronically. Make sure to read and understand the fine print of your loan. Funding time varies, but many online lenders can fund loans within a couple days. Some offer same-day funding. Once the money is in your account, make sure to add your monthly loan payment to your budget. Your first payment is typically due in 30 days, and any missed payments can cause late fees and hurt your credit.

» MORE: How to manage your personal loan

» MORE: Where to get a personal loan

Tips for getting an online loan with bad credit

Borrowers with bad credit may qualify for a rate on the high end of a lender's range. However, there are some online lenders that look beyond credit scores and use alternative criteria — like cash flow, employment and education history — when assessing a borrower’s application.

» MORE: How to get a personal loan with bad credit

Here are ways bad-credit borrowers can strengthen an application for an online loan:

• Choose a co-signed or joint loan. Add a co-signer or co-borrower to the loan application to boost your eligibility or get a lower rate or higher loan amount. Your co-applicant is responsible for the loan amount and any fees if you fail to repay.

• Get a secured loan. Most personal loans are unsecured, but some lenders offer secured loans that require collateral, like your car or a savings account, to guarantee the loan. You risk losing the collateral if you default on the loan.

• Choose a lower loan amount. Lenders may view a large loan amount as risky, so opt to borrow only what you need.

• Build your credit. If you don’t need the loan immediately, do what you can to build your credit before applying.

» MORE: Boost your chances of personal loan approval

Are online loans legit?

There are plenty of reputable online lenders, but they compete alongside predatory online lenders. The best online lenders offer affordable rates (APRs that top out at 36%) and ample time to repay a loan.

Reputable lenders will check your credit and assess your ability to repay the loan by reviewing your income and existing debts. Look for lenders that report payments to the three major credit bureaus — Experian, Equifax and TransUnion.

Avoid predatory lenders

Predatory lenders can entice borrowers with easy access to cash, but since they typically don’t check credit, you’ll pay for the added risk with sky-high interest rates. These types of loans should be considered only as a last resort after you’ve exhausted alternatives to high-cost loans:

• No-credit-check loans are usually for a few thousand dollars or less and are repaid in fixed amounts over a few weeks to several months. They don’t check your credit score as part of the application process, and lenders tend to charge APRs well above 100%.

• Online payday loans are a fast way to get loans for amounts less than $1,000, especially if you don’t have good credit. Payday lenders typically withdraw repayments directly from your bank account on the due date. These loans have APRs close to 400%, which can quickly lead borrowers to owe more in interest than the original loan.

Alternatives to online personal loans

Bank loans: Banks may offer lower rates than some online lenders, plus special discounts or perks for existing customers. However, bank loans typically require borrowers to have good or excellent credit scores, and funding times may be slower than with an online lender.

Credit union loans: Credit unions typically offer small to mid-sized personal loans at low rates, though you must be a member to get a credit union loan. Federal credit unions cap APRs at 18%. These lenders tend to consider your full financial picture when you apply and may qualify borrowers with fair or bad credit.

Zero-interest credit cards: You’ll pay no interest on expenses you charge during the introductory rate period of a zero-interest credit card, typically the first 15 to 21 months. After that, rates can jump up to almost 30%. Credit card companies often require good to excellent credit in order to get one of these cards.

Cash advance apps: If you need a small loan of $500 or less, a cash advance app can be a fast, no-credit-check option with low fees. You may need to repay the advance as soon as your next paycheck, so this option works only if your budget can withstand it.

Buy now, pay later: “Buy now, pay later” plans can be used for purchases at most retailers. These payment plans split your purchase into equal installments, typically due in two-week increments. Most BNPL plans don’t charge interest or require a hard credit pull, but their convenience can lead to overspending.

Other ways to make money: If you have extra time, consider picking up online work like freelancing, selling items you no longer use or other ways to earn income. The time investment and amount you earn will vary, but it could allow you to avoid borrowing altogether.