Upgrade personal loans offer multiple rate discounts and direct payment to creditors. A low minimum credit score requirement makes the perks stand out even more. Read our review of Upgrade
Upstart personal loans offer fast funding and may be an option for borrowers with low credit scores or thin credit histories. Upstart is a solid financing choice for large purchases. Read our review of Upstart
LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit. Read our review of LendingClub
LendingPoint personal loans are a solid borrowing option for fair- and bad-credit borrowers. They are funded quickly and have some flexible features. Read our review of LendingPoint
Reach Financial provides credit card consolidation loans to borrowers with good credit. The lender offers customizable repayment terms, but lacks other flexible features and transparency. Read our review of Reach Financial Personal Loans
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.
35+
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.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
70+
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.
Affordability
25%
We review lenders’ annual percentage rate offerings at least twice per year and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.
Customer experience
20%
We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.
Underwriting and eligibility
20%
We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.
Loan flexibility
20%
We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.
Application process
15%
We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.
5.0
Overall score
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 70 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.
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
$10,000
Interest rate
7.25%
7.25%
Loan term (years)
3
3 years
PRINCIPAL AMOUNT — $10,000TOTAL INTEREST PAID — $1,156.95
90%
10%
How to choose the best online personal loan
Personal loans from online lenders have a streamlined application process, and you’ll typically receive funds within a day or two after loan approval. Online loans can be used for almost any purpose, including emergencies, home repairs or debt consolidation.
When choosing the best online personal loan for you, make sure you meet the lender’s requirements and the lender offers the loan amount and repayment term you desire.
The loan with the lowest annual percentage rate will be the least expensive. If you pre-qualify with multiple lenders and receive loan offers with similar rates, consider other factors like access to credit-building tools or the ability to change your payment date.
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.
Borrower credit rating
Score range
Estimated APR
Excellent
720-850.
11.81%.
Good
690-719.
14.48%.
Fair
630-689.
17.93%.
Bad
300-629.
21.65%.
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from January 1, 2024, through December 31, 2024. 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.
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
Loan amount
$10,000
$10,000
Interest rate
7.25%
7.25%
Loan term (years)
3
3 years
PRINCIPAL AMOUNT — $10,000TOTAL INTEREST PAID — $1,156.95
90%
10%
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.
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.
There are plenty of reputable online lenders, but they compete alongside predatory online lenders. The best online personal loans have affordable rates (APRs that top out at 36%) and come with ample time to repay the 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 can have APRs close to 400% or more, which can quickly lead borrowers to owe more in interest than the original amount borrowed if the loan is extended.
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.
The safety of online loans depends on the type of lender. While shopping for a loan, watch for signs of predatory lending and choose reputable lenders that assess your ability to repay the loan.
What is the best online loan?
The best online loan helps you reach a money goal, such as consolidating debt or covering a large expense, without creating financial stress. Interest rates and terms are typically based on your income and credit. Some online lenders offer personal loan features that may be important to you, like payment flexibility or access to credit scores.
How can I get $500 quickly?
Cash advance apps are alternatives to online personal loans that give you early access to your next paycheck. Advance amounts can be up to $500, and you may receive the funds within hours. Watch for fees that can make cash advances expensive.
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