Best Online Loans of April 2024
Compare online personal loans from multiple lenders to find the best rates and features.
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Online loans are a convenient and fast option for borrowing money. Online personal loan rates are typically from 6% to 36%, and amounts are from $1,000 to $100,000. Here’s where to find the best online loans, the pros and cons and how to get an online 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.
- 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.
Limited-Time Offer
Expires 4/30/24
Get a 0.50% discount on your next loan from SoFi, NerdWallet's 2024 Best Personal Loan winner. Offer expires 4/30/24. Click on "View details" for offer terms*.
Best Online Loans
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Est. APR ▾ ▾ | Loan amount ▾ ▾ | Min. credit score ▾ ▾ | Learn more |
---|---|---|---|---|---|
Discover® Personal Loans Visit Lender on Discover's website Check Rate on NerdWallet | 🏆 Top 3 most visited 5.0 /5Fast funding | 7.99-24.99% | $2,500-$40,000 | 660 | Visit Lender on Discover's website Check Rate on NerdWallet |
Limited-Time Offer Expires 4/30/24 SoFi Personal Loan Visit Lender on SoFi's website Read Review on NerdWallet | 5.0 /5 | 8.99-29.99% Get a 0.50% discountLimited-time offer | $5,000-$100,000 | None | Visit Lender on SoFi's website Read Review on NerdWallet |
4.5 /5 | 8.99-35.99% | $2,000-$50,000 | 600 | Visit Lender on Best Egg's website Check Rate on NerdWallet | |
4.5 /5 | 7.80-35.99% | $1,000-$50,000 | None | Visit Lender on Upstart's website Check Rate on NerdWallet | |
5.0 /5 | 8.49-35.99% | $1,000-$50,000 | 560 | Visit Lender on Upgrade's website Check Rate on NerdWallet | |
4.5 /5 | 11.72-17.99% | $5,000-$40,000 | 640 | Check Rate on NerdWallet | |
4.5 /5 | 7.99-35.99% | $2,000-$36,500 | 660 | Check Rate on NerdWallet | |
4.5 /5 | 8.98-35.99% | $1,000-$40,000 | 600 | Check Rate on NerdWallet | |
LightStream Visit Lender on LightStream's website Check Rate on NerdWallet | 4.5 /5 | 7.49-25.49% | $5,000-$100,000 | 660 | Visit Lender on LightStream's website Check Rate on NerdWallet |
Our pick for
Online loans overall
Limited-Time Offer
Expires 4/30/24
Get a 0.50% discount on your next loan from SoFi, NerdWallet's 2024 Best Personal Loan winner. Offer expires 4/30/24. Click on "View details" for offer terms*.
8.99-29.99%
$5,000-$100,000
None
Our pick for
Online loans for excellent credit
7.99-24.99%
$2,500-$40,000
660
Our pick for
Online loans for good credit
Our pick for
Online loans for credit card consolidation
Our pick for
Online loans for fair credit
Our pick for
Online loans for bad credit
Our pick for
Online loans for same-day funding
Our pick for
Online loans for joint loans
Our pick for
Online loans with no fees
Compare online loans
SoFi
Best online loan overall
Overview: SoFi’s online loans are a standout among competitors, thanks to a wide range of loan amounts and repayment terms. The lender also offers multiple rate discounts and same-day funding.
- Pros and cons of SoFi
Pros
Cons
Joint loan option.
Multiple rate discounts.
Mobile app to manage loan.
No option to choose initial payment date.
High minimum loan amount.
» MORE: Read NerdWallet's SoFi review
Discover
Best online loan for excellent credit
Overview: Discover’s online loans have competitive rates and no origination fees, making them a smart pick for excellent-credit borrowers. Online loans from Discover also fund quickly — you can get the money deposited in your account in one business day.
- Pros and cons of Discover
Pros
Cons
No origination fee.
Option to pre-qualify with a soft credit check.
Fast funding.
Mobile app to manage loan.
May charge late fee.
No co-sign or joint loan option.
No rate discount.
LightStream
Best online loan with no fees
Overview: LightStream offers online loans with no fees for borrowers, including no origination fee, which is rare among online lenders, and no late fee even if you miss a payment.
- Pros and cons of LightStream
Pros
Cons
No fees.
Rate discount for autopay.
Long repayment terms.
Rate Beat program and Experience Guarantee.
No option to pre-qualify on its website.
No direct payment to creditors with debt consolidation loans.
High minimum loan amount.
Best Egg
Best online loan for good credit
Overview: With a Best Egg online loan, good-credit borrowers can pre-qualify, choose from a wide range of loan amounts and skip the late fees. Best Egg also offers a secured loan option, meaning you can pledge collateral to help guarantee the loan, which can lead to a lower interest rate.
- Pros and cons of Best Egg
Pros
Cons
Option to pre-qualify with a soft credit check.
Wide range of loan amounts.
Secured loan options.
Direct payment to creditors with debt consolidation loans.
No late fees.
Origination fee.
No rate discounts.
No option to choose initial payment date.
No mobile app to manage loan.
Happy Money
Best online loan for debt payoff
Overview: Happy Money’s online loan can consolidate and help pay off credit cards, rolling multiple balances into one monthly payment at a fixed rate. It also will send the loan funds to your creditors for you.
- Pros and cons of Happy Money
Pros
Cons
Option to pre-qualify with a soft credit check.
Offers direct payment to creditors.
No late fee.
Hardship program for borrowers in need.
Origination fee.
No rate discount.
No co-sign or joint loan option.
No option to choose initial payment date.
Upstart
Best online loan for fair credit
Overview: Upstart is unique among lenders because it accepts borrowers who have low credit scores or thin credit histories, using nontraditional data — like college education, job history and residence — to qualify you for an online loan.
- Pros and cons of Upstart
Pros
Cons
Accepts borrowers new to credit.
Fast funding.
Option to change your payment date.
Option to pre-qualify with a soft credit check.
Seven-day customer service availability.
May charge origination fee.
No joint, co-signed or secured loans.
No mobile app to manage loan.
Only two repayment term options.
» MORE: Read NerdWallet's Upstart review
Upgrade
Best online loan for bad credit
Overview: Upstart is unique among lenders because it accepts borrowers who have low credit scores or thin credit histories, using nontraditional data — like college education, job history and residence — to qualify you for an online loan.
- Pros and cons of Upgrade
Pros
Cons
Multiple rate discounts.
Secured and joint loans.
Mobile app to manage loan payments.
Direct payment to creditors with debt consolidation loans.
Long repayment terms on home improvement loans.
Origination fee.
No option to choose initial payment date.
» MORE: Read NerdWallet's Upgrade review
LendingPoint
Best online loan for same-day funding
Overview: LendingPoint offers online loans with fast funding. The lender says it can make an approval decision in seconds, and if you're approved before noon Eastern time, it can fund the loan the same day.
- Pros and cons of LendingPoint
Pros
Cons
Soft credit check to pre-qualify.
Fast funding.
Offers mobile app to manage loan payments.
Option to change your payment date.
Free credit score access.
May charge an origination fee.
Reports payments to two of the three major credit bureaus.
No joint, co-signed or secured loans.
No large loans.
LendingClub
Best for online joint loan
Overview: LendingClub offers joint online loans, meaning you can add a co-borrower to your application, which may help you qualify for a larger loan amount or a lower interest rate. Borrowers also have the option to pre-qualify with a soft credit check.
- Pros and cons of LendingClub
Pros
Cons
Joint loan option.
Direct payment to creditors with debt consolidation loans.
Option to pre-qualify with a soft credit check.
Option to change your payment date.
Origination fee.
What is an online loan?
An online loan is a personal loan where the entire process — from pre-qualification to signing — happens online. These loans are typically unsecured, and your credit score, income and debt determine whether you qualify. Approved borrowers receive the 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 to borrowers across the credit spectrum, but the annual percentage rate tends to be higher if you have bad credit (629 score or lower). Financial experts recommend a rate below 36% for a loan to be affordable.Some online lenders offer features like flexible payment dates or the ability to add a co-borrower. Compare loan features when shopping for an online loan.
How to get a loan online
1. Check your credit score
Before applying for an online loan, you’ll want to check your credit report. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. Look for errors, such as inaccurate accounts, wrongly reported payment history or outdated credit limits, and file any disputes directly with the credit reporting company.
2. Calculate your loan payments
Once you’ve checked your credit report, consider how much you want to borrow and how long you want to be paying the loan off. 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 interest.
3. Pre-qualify and compare offers
Compare offers from multiple online lenders to find the lowest interest rate. This process, known as pre-qualification, involves a short application and soft credit check only, so it won’t hurt your credit score. You may need to supply basic personal information, including your Social Security number, and details about your desired loan.
4. Submit your application
After comparing offers from multiple lenders, pick the online loan that best fits your budget and financial needs. Apply with the lender by uploading the required documents, which may include a form of identification and proof of income such as a pay stub or W-2. Once you’ve read and understand the fine print of your loan, submit the application.
» MORE: How to apply for a personal loan
5. Get funded
Once approved, you’ll receive the loan documents to sign electronically. Funding time varies, but many online lenders can fund loans within a day or two. 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 hurt your credit and cause late fees.
» MORE: How to manage your personal loan
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, 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.
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: Though rates differ between lenders, comparison websites allow borrowers to fill out one application and 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 yourself.
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 |
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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, these 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.
Last updated on April 2, 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.
NerdWallet's Best Online Loans of April 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
- Are online loans safe?
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.
- 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, and different lenders offer features that may be important to you, like payment flexibility or access to credit scores.
- Can I get an online loan with a co-signer?
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.