Best Personal Loan Rates of June 2024

Annie Millerbernd
Written by
Last updated on June 11, 2024
Edited by
✅ Fact checked and reviewed
Kim Lowe
Edited by
✅ Fact checked and reviewed

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NerdWallet’s

Best of Award Winner
Best Personal Loan Overall
SoFi
SoFi Personal Loan
SoFi
5.0
NerdWallet rating
Est. APR
8.99-29.99%
Loan amount
$5,000-$100,000
Min. credit score
None
on SoFi's website
More details

Why our nerds love it

SoFi stands out with competitive rates, no required fees and multiple rate discounts. It offers fast funding, a wide range of loan amounts and terms, plus perks like free financial advice. Read our methodology

Read our methodology
See all winners

Best Personal Loan Rates of June 2024

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

SoFi Personal Loan

Top 3 most visited 🏆
Visit Lender
on SoFi's website
on SoFi's website
Check Rate
on NerdWallet
on NerdWallet
View details
2024 Best Personal Loan Overall
Rate discount

8.99-29.99%

$5,000-$100,000

None

Citibank

Citibank

Check Rate
on NerdWallet
on NerdWallet
4.5
/5
Best for Low personal loan rates and fast funding to existing customers

11.49-20.49%

$2,000-$30,000

720

5.0
/5
Best for Low personal loan rates for debt consolidation
Fast funding

7.99-24.99%

$2,500-$40,000

660

4.5
/5
Best for Low personal loan rates for home improvement
Rate discount

6.99-25.49%

$5,000-$100,000

660

Upstart

Upstart

Visit Lender
on Upstart's website
on Upstart's website
4.5
/5
Best for Low personal loan rates and a secured loan option
Fast funding
Flexible payments

7.80-35.99%

$1,000-$50,000

None

PNC Bank Personal Loan

PNC Bank Personal Loan

4.5
/5
Best for Low personal loan rates for good credit

7.49-30.49%

$1,000-$35,000

None

RocketLoans

Rocket Loans

4.0
/5
Best for Low personal loan rates and fast funding
Fast funding
Rate discount

9.12-29.99%

$2,000-$45,000

640

Happy Money

Happy Money

4.5
/5
Best for Low personal loan rates for credit card consolidation
Fast funding

11.72-17.99%

$5,000-$40,000

640

PenFed Credit Union Personal Loan

PenFed Credit Union Personal Loan

4.5
/5
Best for Low personal loan rates and flexible payment options

7.99-17.99%

$2,000-$50,000

700

Wells Fargo Personal Loan

Wells Fargo Personal Loan

4.5
/5
Best for Low personal loan rates and rate discounts to existing customers

7.49-23.74%

$3,000-$100,000

None

Our pick for

Low personal loan rates with borrower perks

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

Low personal loan rates and fast funding to existing customers

Citibank

Citibank

4.5
Est. APR

11.49-20.49%

Loan amount

$2,000-$30,000

Min. credit score

720

Our pick for

Low personal loan rates for debt consolidation

Discover

Discover® Personal Loans

Est. APR

7.99-24.99%

Loan amount

$2,500-$40,000

Min. credit score

660

Our pick for

Low personal loan rates for home improvement

Lightstream

LightStream

Est. APR

6.99-25.49%

Loan amount

$5,000-$100,000

Min. credit score

660

Our pick for

Low personal loan rates and a secured loan option

Upstart

Upstart

Est. APR

7.80-35.99%

Loan amount

$1,000-$50,000

Min. credit score

None

Our pick for

Low personal loan rates for good credit

PNC Bank Personal Loan

PNC Bank Personal Loan

Est. APR

7.49-30.49%

Loan amount

$1,000-$35,000

Min. credit score

None

Our pick for

Low personal loan rates and fast funding

RocketLoans

Rocket Loans

Est. APR

9.12-29.99%

Loan amount

$2,000-$45,000

Min. credit score

640

Our pick for

Low personal loan rates for credit card consolidation

Happy Money

Happy Money

Est. APR

11.72-17.99%

Loan amount

$5,000-$40,000

Min. credit score

640

Our pick for

Low personal loan rates and flexible payment options

PenFed Credit Union Personal Loan

PenFed Credit Union Personal Loan

Est. APR

7.99-17.99%

Loan amount

$2,000-$50,000

Min. credit score

700

Our pick for

Low personal loan rates and rate discounts to existing customers

Wells Fargo Personal Loan

Wells Fargo Personal Loan

Est. APR

7.49-23.74%

Loan amount

$3,000-$100,000

Min. credit score

None

NerdWallet’s guide to getting the best personal loan rate

On this page

What is a good personal loan rate?

A personal loan’s annual percentage rate (APR) includes the interest rate plus any other fees a lender charges, like an origination fee. A good personal loan rate is the lowest one you qualify for, which depends heavily on your credit and financial information.

Because rates can vary widely between borrowers, it’s not helpful to compare your rate to someone else’s. Instead, pre-qualify for personal loans with multiple lenders to find the lowest rate and best terms.

🤓

Nerdy Tip

Consumer advocates caution against borrowing high-interest loans with APRs above 36% because they tend to be unaffordable.

  • Lender

    APR range

    7.80% - 35.99%

    8.49% - 35.99%

    9.95% - 35.99%

    7.99% - 35.99%

    11.69% - 35.99%

How lenders set personal loan rates

Macroeconomic conditions help personal loan lenders determine their rates. For example, changes in the wider economy (like high inflation and Federal Funds rate increases) prompted lenders to tighten their underwriting standards in 2022 and 2023, and they’ve remained high since then.

But personal loan rates often have wide ranges, and the specific rate you receive is based primarily on your credit and other financial information like income and outstanding debts.

The lowest rates go to borrowers with excellent credit, high incomes, little outstanding debt and long histories of on-time loan and credit card payments. Other factors that can influence your rate include education, occupation, the requested loan amount and loan purpose.

Personal loan rates by credit score

Here are the average estimated APRs for online personal loans, based on credit score ranges:

Borrower credit rating

Score range

Estimated APR

Excellent

720-850.

11.85%.

Good

690-719.

14.12%.

Fair

630-689.

18.05%.

Bad

300-629.

22.68%.

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from May 1, 2024, through May 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%.

Personal loan rates by lender type

Personal loan rates from online lenders

Online personal loan rates vary by the type of borrower they target. Bad-credit online lenders may approve borrowers with lower credit scores, but they offer higher APRs to make up for the additional risk those borrowers may carry. Good- and excellent-credit online lenders offer lower rates because they only approve borrowers who they believe have a low risk of defaulting.

Personal loan rates at banks

Banks may offer competitive rates — and rate discounts if you’re already a customer — but they typically have tougher eligibility requirements than online lenders. The average rate for a two-year bank loan was 12.49% in the first quarter of 2024, according to the Federal Reserve.

Personal loan rates at credit unions

Credit union loans may carry lower rates than banks and online lenders, especially for those with fair or bad credit, and loan officers may be more willing to consider your overall financial picture.

The average rate charged by credit unions in the first quarter of 2024 for a fixed-rate, three-year loan was 10.83%, according to the National Credit Union Administration. Federal credit unions cap personal loan APRs at 18%.

You must become a member of a credit union to get a personal loan, which may mean paying a fee or meeting certain eligibility requirements.

How APR affects monthly payments

Use this personal loan calculator to see how different rates — plus other factors, like loan amount and terms — can impact monthly personal loan payments.

Loan details
Your loan estimateMonthly payment$212.47
  • Total principal

    $10,000.00
  • Total interest payments

    $2,748.23
  • Total loan payments

    $12,748.23
  • Payoff date

    06 / 2029
Payment datePrincipalInterestMonthly paymentPrincipal balance
Jun 2024$129.14$83.33$212.47$9,870.86
Jul 2024$130.21$82.26$212.47$9,740.65
Aug 2024$131.30$81.17$212.47$9,609.35
Sep 2024$132.39$80.08$212.47$9,476.96
Oct 2024$133.50$78.97$212.47$9,343.46
Nov 2024$134.61$77.86$212.47$9,208.85
Dec 2024$135.73$76.74$212.47$9,073.12
Jan 2025$136.86$75.61$212.47$8,936.26
Feb 2025$138.00$74.47$212.47$8,798.26
Mar 2025$139.15$73.32$212.47$8,659.11
Apr 2025$140.31$72.16$212.47$8,518.80
May 2025$141.48$70.99$212.47$8,377.32
Jun 2025$142.66$69.81$212.47$8,234.66
Jul 2025$143.85$68.62$212.47$8,090.81
Aug 2025$145.05$67.42$212.47$7,945.76
Sep 2025$146.26$66.21$212.47$7,799.51
Oct 2025$147.47$65.00$212.47$7,652.03
Nov 2025$148.70$63.77$212.47$7,503.33
Dec 2025$149.94$62.53$212.47$7,353.39
Jan 2026$151.19$61.28$212.47$7,202.20
Feb 2026$152.45$60.02$212.47$7,049.74
Mar 2026$153.72$58.75$212.47$6,896.02
Apr 2026$155.00$57.47$212.47$6,741.02
May 2026$156.30$56.18$212.47$6,584.72
Jun 2026$157.60$54.87$212.47$6,427.12
Jul 2026$158.91$53.56$212.47$6,268.21
Aug 2026$160.24$52.24$212.47$6,107.98
Sep 2026$161.57$50.90$212.47$5,946.41
Oct 2026$162.92$49.55$212.47$5,783.49
Nov 2026$164.27$48.20$212.47$5,619.22
Dec 2026$165.64$46.83$212.47$5,453.57
Jan 2027$167.02$45.45$212.47$5,286.55
Feb 2027$168.42$44.05$212.47$5,118.13
Mar 2027$169.82$42.65$212.47$4,948.31
Apr 2027$171.23$41.24$212.47$4,777.08
May 2027$172.66$39.81$212.47$4,604.42
Jun 2027$174.10$38.37$212.47$4,430.32
Jul 2027$175.55$36.92$212.47$4,254.76
Aug 2027$177.01$35.46$212.47$4,077.75
Sep 2027$178.49$33.98$212.47$3,899.26
Oct 2027$179.98$32.49$212.47$3,719.28
Nov 2027$181.48$30.99$212.47$3,537.81
Dec 2027$182.99$29.48$212.47$3,354.82
Jan 2028$184.51$27.96$212.47$3,170.31
Feb 2028$186.05$26.42$212.47$2,984.25
Mar 2028$187.60$24.87$212.47$2,796.65
Apr 2028$189.17$23.31$212.47$2,607.49
May 2028$190.74$21.73$212.47$2,416.75
Jun 2028$192.33$20.14$212.47$2,224.42
Jul 2028$193.93$18.54$212.47$2,030.48
Aug 2028$195.55$16.92$212.47$1,834.93
Sep 2028$197.18$15.29$212.47$1,637.75
Oct 2028$198.82$13.65$212.47$1,438.93
Nov 2028$200.48$11.99$212.47$1,238.45
Dec 2028$202.15$10.32$212.47$1,036.30
Jan 2029$203.83$8.64$212.47$832.47
Feb 2029$205.53$6.94$212.47$626.93
Mar 2029$207.25$5.22$212.47$419.69
Apr 2029$208.97$3.50$212.47$210.71
May 2029$210.71$1.76$212.47$0.00

How to get the best personal loan rate

Your personal loan rate is primarily based on how confident a lender feels that you’ll repay the loan on time, which they determine by reviewing your credit and finances. The more likely a lender thinks you are to default, the higher the rate.

Here are nine tips to prepare for a loan application and get a low rate:

  1. Boost your credit. Check your credit report for errors or accounts that may be weighing on your score and address them before applying. For example, a past-due account could be a reason a lender charges a high rate or denies your application.

  2. Lower your debt-to-income ratio. Pay down existing debt to lower your DTI and show lenders that you have ample income for new loan payments. Make sure to include all sources of income on an application.

  3. Ask for the minimum you need. Requesting a large loan could cause a lender to charge a higher interest rate. The additional debt increases your DTI and lenders may find it riskier than if you requested a smaller loan.

  4. Shorten your repayment term. Lenders often charge lower APRs on shorter-term loans because a shorter term means there’s less time for your financial situation to change during repayment. Choose the shortest loan term you can while still keeping monthly payments affordable.

  5. Get rate discounts. Many online lenders offer rate discounts for setting up automatic payments and some banks offer rate discounts to existing customers who hold certain bank accounts.

  6. Find a no-fee lender. Origination fees are the most common personal loan fees, and they can drive up your APR, but not all lenders charge them. Compare fees and look for a lender with low or no fees.

  7. Add a co-signer or co-borrower. Borrowers with blemished credit can add a co-signer or co-borrower with better credit and higher income to get a lower rate. Both co-signers and co-borrowers are responsible for repaying the debt if the primary borrower misses payments.

  8. Add collateral. You may qualify for a personal loan or get a lower rate by pledging collateral like a vehicle or savings account. With a secured loan, the lender can take the collateral if you default.

  9. Pre-qualify and compare offers. Many lenders offer pre-qualification, which lets you preview the potential loan amount, rate and repayment term without affecting your credit score. Pre-qualify with multiple lenders to compare offers and select the best rate. 

How to compare personal loan offers

After you’ve pre-qualified with multiple lenders, consider these features to choose the best offer.

Annual percentage rate. If you’re looking for the lowest rate, compare APR, not just interest rate. APR is the best apples-to-apples cost-comparison tool because it represents the full cost of borrowing. Use it to compare personal loans as well as other financial products, such as credit cards.

Loan amount. Many lenders provide small to mid-sized loans, from $2,000 to $50,000, but a few offer loan amounts up to $100,000. Consider your goal for the loan and only borrow what you need.

Monthly payments. It’s important to feel confident that you can afford a loan’s monthly payments because missing a payment can result in late fees and a decreased credit score. Many lenders show the loan’s monthly payment during pre-qualification, but you can also use a personal loan calculator to estimate monthly payments.

Repayment term. Shorter-term loans have higher monthly payments but lower total interest costs, while longer-term loans have lower monthly payments and higher interest costs. Try to strike a balance between paying less interest and keeping monthly payments affordable.

Fees. Some lenders charge an origination fee to cover the cost of processing a personal loan. Other fees you might encounter include late fees for missing payment due date and nonsufficient funds fees for authorizing a payment when there’s not enough money in your account to cover the bill.

Borrower perks. Special perks such as well-rated mobile apps, hardship programs or the ability to change payment due dates may help you choose between two otherwise similar loan offers.

What to know about personal loans

What is a personal loan and how does it work?

A personal loan is a type of installment loan that you can use for almost any purpose. You get a lump sum of money and pay it back, with interest, in fixed monthly payments. Unlike auto and mortgage loans, personal loans are usually unsecured and not backed by collateral the lender can take if you fail to repay it.

What can you use a personal loan for?

You can use a personal loan for almost anything. Here are a few common reasons to get a personal loan:

  • Debt consolidation.

  • Credit card refinancing.

  • Home improvement projects.

  • Emergency expenses.

  • Medical bill payments.

  • Weddings.

  • Vacations.

Personal loan pros and cons

Pros

  • Breaks large expenses into smaller monthly payments.
  • Fixed rates and monthly payments.
  • Low rates for good-credit borrowers.
  • Typically no collateral.
  • On-time payments can build your credit.

Cons

  • Rates can reach 36% for bad-credit borrowers.
  • Increases your debt load.
  • Missed payments can hurt your credit.

4 steps to get a personal loan

  1. Check your credit and budget. Lenders consider factors such as your credit score, credit history, income and existing debts on a personal loan application. If you have a low score or high DTI, it may be worth your time to build your credit and pay down debt before applying for the best chance at a low rate.

  2. Pre-qualify with multiple lenders. Pre-qualifying triggers a soft credit pull, so you can do it multiple times without affecting your score. A lender usually only does a hard credit pull once you submit a formal application.

  3. Compare loan offers. Compare features on pre-qualified loan offers like APR, repayment terms and monthly payment amounts to determine which best fits your needs.

  4. Complete a formal application. When you’re ready to apply, gather documents such as your Social Security number, government-issued ID, payroll stubs and tax returns to speed up the process. Lenders typically approve or decline applications within a couple of days and fund approved loans within a week, though some move faster. If your application is denied, the lender must tell you why. 

How to manage personal loan payments

Your first personal loan payment is typically due 30 days after getting the loan. Future bills will be due the same time each month until the end of your loan term.

Add the new loan payment to your monthly budget, if you use one, and set up automatic payments to avoid missing a payment, which can trigger a late fee and impact your credit score. Some lenders even provide rate discounts for enrolling in autopay.

Frequently asked questions about personal loan rates

  • APR and interest rate are so similar they’re often used interchangeably, but on personal loans there’s an important distinction. A personal loan APR includes the interest rate plus any origination fee. According to the Truth in Lending Act, all lenders must disclose a loan’s APR before you sign an agreement.

  • If you currently have a personal loan with a high rate, you may be able to lock in a lower rate by refinancing a personal loan, especially if you’ve improved your credit or lowered your debt since you first borrowed. Lenders have different refinancing policies: Some allow borrowers to refinance a personal loan you have with them, but others may require you to refinance with a different lender.

    If you refinance, be mindful of the new loan’s term. Even with a lower rate, a longer repayment term could raise the total interest costs.

Last updated on June 11, 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 Personal Loan Rates of June 2024

  • SoFi Personal Loan: Best for Low personal loan rates with borrower perks
  • Citibank: Best for Low personal loan rates and fast funding to existing customers
  • Discover® Personal Loans: Best for Low personal loan rates for debt consolidation
  • LightStream: Best for Low personal loan rates for home improvement
  • Upstart: Best for Low personal loan rates and a secured loan option
  • PNC Bank Personal Loan: Best for Low personal loan rates for good credit
  • Rocket Loans: Best for Low personal loan rates and fast funding
  • Happy Money: Best for Low personal loan rates for credit card consolidation
  • PenFed Credit Union Personal Loan: Best for Low personal loan rates and flexible payment options
  • Wells Fargo Personal Loan: Best for Low personal loan rates and rate discounts to existing customers
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