Best of

Best Online Loans of March 2024

Compare online personal loans from multiple lenders to find the one with the best rate and features.

Ronita Choudhuri-WadeAnnie Millerbernd
By
and
Last updated on March 1, 2024
Edited by
✅ Fact checked and reviewed
Kim Lowe
Edited by
✅ Fact checked and reviewed

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

  • 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.
NerdWallet's personal loans content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in consumer lending. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch and many other national, regional and local publications. They have been cited in publications including The Harvard Kennedy School, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.
Compare personal loan rates in just 2 minutes Check rates from multiple lenders at once Explore loans up to $100,000 There’s NO impact on your credit score

Best Online Loans

Lender
NerdWallet Rating
Est. APR
Loan amount
Min. credit score
Learn more
Discover

Discover® Personal Loans

Visit Lender
on Discover's website
on Discover's website
Check Rate
on NerdWallet
on NerdWallet
🏆 Top 3 most visited
Best for Online loans for excellent credit
Fast funding

7.99-24.99%

$2,500-$40,000

660

SoFi

SoFi Personal Loan

5.0
/5
Best for Online loans overall

8.99-29.99%

$5,000-$100,000

None

BestEgg

Best Egg

4.5
/5
Best for Online loans for good credit

8.99-35.99%

$2,000-$50,000

600

Upstart

Upstart

4.5
/5
Best for Online loans for fair credit

7.80-35.99%

$1,000-$50,000

None

Upgrade

Upgrade

5.0
/5
Best for Online loans for bad credit

8.49-35.99%

$1,000-$50,000

560

Happy Money

Happy Money

4.5
/5
Best for Online loans for credit card consolidation

11.72-17.99%

$5,000-$40,000

640

LendingPoint

LendingPoint

Check Rate
on NerdWallet
on NerdWallet
4.5
/5
Best for Online loans for same-day funding

7.99-35.99%

$2,000-$36,500

660

Lending Club

LendingClub

4.5
/5
Best for Online loans for joint loans

9.57-35.99%

$1,000-$40,000

600

Lightstream

LightStream

4.5
/5
Best for Online loans with no fees

7.99-25.49%

$5,000-$100,000

660

Our pick for

Online loans overall

SoFi
Visit Lender
on SoFi's website
on SoFi's website
SoFi

SoFi Personal Loan

5.0
Est. APR

8.99-29.99%

Loan amount

$5,000-$100,000

Min. credit score

None

Our pick for

Online loans for excellent credit

Discover
Discover

Discover® Personal Loans

Est. APR

7.99-24.99%

Loan amount

$2,500-$40,000

Min. credit score

660

Our pick for

Online loans for good credit

BestEgg
BestEgg

Best Egg

4.5
Est. APR

8.99-35.99%

Loan amount

$2,000-$50,000

Min. credit score

600

Our pick for

Online loans for credit card consolidation

Happy Money
Happy Money

Happy Money

Est. APR

11.72-17.99%

Loan amount

$5,000-$40,000

Min. credit score

640

Our pick for

Online loans for fair credit

Upstart
Upstart

Upstart

Est. APR

7.80-35.99%

Loan amount

$1,000-$50,000

Min. credit score

None

Our pick for

Online loans for bad credit

Upgrade
Upgrade

Upgrade

Est. APR

8.49-35.99%

Loan amount

$1,000-$50,000

Min. credit score

560

Our pick for

Online loans for same-day funding

LendingPoint
LendingPoint

LendingPoint

Est. APR

7.99-35.99%

Loan amount

$2,000-$36,500

Min. credit score

660

Our pick for

Online loans for joint loans

Lending Club
Lending Club

LendingClub

Est. APR

9.57-35.99%

Loan amount

$1,000-$40,000

Min. credit score

600

Our pick for

Online loans with no fees

Lightstream
Lightstream

LightStream

Est. APR

7.99-25.49%

Loan amount

$5,000-$100,000

Min. credit score

660

» MORE: Quick loans: Best lenders for fast cash

What is an online loan?

With online personal loans, the entire loan process — from pre-qualification to signing — happens online. These loans are typically unsecured, and your credit score, income and debt heavily determine whether you qualify. Approved borrowers receive loan funds in a lump sum and pay back the loan in fixed monthly installments over the loan term, typically two to seven years.

Online loans can be used for almost any purpose, including emergencies, home repairs or debt consolidation. Loans are available for borrowers across the credit spectrum, but interest rates may be higher for borrowers with lower credit scores. Financial experts recommend an annual percentage rate below 36% for a loan to be affordable to a borrower.

Some online lenders offer features like flexible payment dates, an option to refinance an existing personal loan or the ability to add a co-borrower. Consider and compare loan features when shopping for an online loan.

How to get a loan online

  1. Check your credit score. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. Doing so will help you spot and fix any errors before you apply.

  2. Calculate your loan payments. Use a personal loan calculator to estimate monthly payments on personal loans with different rates and loan terms. A longer term will give you lower monthly payments, but also cost more in total interest.

  3. Pre-qualify. Check rates with multiple online lenders and compare offers to find the lowest interest rate. The pre-qualification process involves a soft credit check, which doesn’t affect your credit score.

  4. Select a lender and loan option. Pick the online loan with the rate, monthly payment, loan amount and term that best fits your budget and financial needs.

  5. Collect loan documents. Upload the required documents, which may include a form of identification and proof of income such as a pay stub or W-2.

  6. Complete the application and submit. Once you’ve read and understand the fine print of your loan, submit the application. Once approved, you may receive your loan within a day or two, depending on the lender.

Pros and cons of online loans

It’s a good idea to weigh the pros and cons when deciding whether to go with an online lender versus an in-person lender like a bank or credit union. Certain features may vary from lender to lender, but here is generally what you can expect with online loans:

Pros of online loans

  • Convenience: You can complete the entire loan process from your computer or, in some cases, your phone. The best online lenders also have mobile apps you can use to manage your loan during the repayment term.

  • No-risk estimates: Most online lenders let you pre-qualify within a few minutes and preview estimated rates without impacting your credit score. (All lenders require a hard credit check before you finalize a loan.)

  • Quick and simple shopping: Since each online lender uses its own underwriting formula, the rates can differ between lenders. Comparison websites allow borrowers to fill out one application to see loan offers from multiple lenders. This is easier than banks or credit unions that may only service loans in person or require you to visit a branch during the application process.

  • Debt help: With some online lenders, borrowers can opt to have the loan money sent directly to creditors with a debt consolidation loan, removing the burden of paying off individual credit cards.

Cons of online loans

  • More expensive than credit unions and some banks: On average, loans from online lenders are not as cheap as those from credit unions. And if you already have a relationship with a bank, it may offer you lower rates than online lenders. Compare rates from multiple lenders online and offline before you take out an online loan.

  • No face time: Most online lenders only service loans digitally. This can be a challenge if you ever want to speak to a representative face-to-face.

  • Smallest loans not available: Online loans under $500 may be hard to find at rates below 36%. Many online lenders have loan minimums from $1,000 to $2,000. Some credit unions may be able to provide smaller loans starting at $250.

  • Predators lurk: Reputable online lenders compete alongside predatory online lenders. Reputable lenders check your credit and ability to repay, and they usually have APRs that top out at 36%. Predatory lenders typically don’t check credit, but you pay for the added risk with APRs well above 100%.

Online loans pros

Online loans cons

  • Fast and convenient application process.

  • Most online lenders let you pre-qualify to preview estimated rates.

  • Easy to comparison shop between lenders.

  • Manage your loan online.

  • Rates may be higher than rates from credit unions and some banks.

  • The smallest loans, below $500, may not be available.

  • No in-person customer service.

  • Can be hard to distinguish reputable lenders from predatory online lenders.

How to get a loan online with bad credit

Borrowers with bad credit (scores of 629 or lower) may qualify for a rate on the high end of a lender's range or be approved for a lower amount when compared to borrowers with good or excellent credit (scores above 689).

Some online lenders who offer loans to bad credit borrowers look beyond credit score when assessing a borrower’s application. They may consider factors like cash flow, employment and education history, which can help chances of approval.

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

  • 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. This person is responsible for the loan amount and any fees if you fail to repay.

  • Secured loan. A secured loan requires putting up collateral, like your car or a savings account, to help guarantee the loan. However, you risk losing the collateral if you default on the loan.

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

No-credit-check and online payday loans

Payday loans and no-credit-check loans don’t require credit checks and can seem like easy options for short-term cash needs. However, both of these types of loans can be predatory and expensive, with rates in the triple digits.

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.

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. Since they don’t check your credit score as part of the application process, lenders tend to charge sky-high interest rates for these loans.

Both no-credit-check and payday loans should be considered only as a last resort after you’ve exhausted alternatives to high-cost loans.

Pre-qualify on NerdWallet

Last updated on March 1, 2024

Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender 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.

To recap our selections...

NerdWallet's Best Online Loans of March 2024

  • SoFi Personal Loan: Best for Online loans overall
  • Discover® Personal Loans: Best for Online loans for excellent credit
  • Best Egg: Best for Online loans for good credit
  • Happy Money: Best for Online loans for credit card consolidation
  • Upstart: Best for Online loans for fair credit
  • Upgrade: Best for Online loans for bad credit
  • LendingPoint: Best for Online loans for same-day funding
  • LendingClub: Best for Online loans for joint loans
  • LightStream: Best for Online loans with no fees

Frequently asked questions

  • The safety of online loans depends on the type of lender. It’s always recommended to do your research and choose reputable lenders.

    If you’re looking for a small loan, online personal loans have lower rates and more manageable repayment terms, even if your credit is bad. Many can fund a loan for as little as $1,000 within one business day of applying for it.

  • 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, and different lenders offer features that may be important to you, like payment flexibility or access to credit scores.

  • Yes, some online lenders offer co-sign loans that allow you to add someone who might have a higher credit score or income to your loan application — boosting your chances of approval.

NerdWallet Pixel