What is an excellent-credit loan?
Excellent-credit personal loans are offered to borrowers with top-tier credit scores, typically in the mid- to high 700s. Most personal loans are unsecured, which means you don’t have to put up any collateral, such as your car or house, to get the loan.
Borrowers with strong credit scores may have access to the lowest rates and largest amounts these lenders offer. If you have excellent credit, you may get your pick of many different lenders, so compare multiple lenders to find the right loan for you.
Excellent-credit personal loan rates
As with most credit products, the annual percentage rate you receive on a personal loan depends a lot on your credit score. Borrowers with excellent credit tend to get the lowest rates on personal loans, meaning they'll pay less interest over the life of the loan.
But your score isn’t the only factor affecting your APR: Your income, existing debts, requested loan amount and loan purpose can also affect your rate.
The interest rate factors into your monthly loan payment, as does the term length — a longer loan term means lower monthly payments but more interest, while a shorter term means higher monthly payments but less cost overall.
Here is what interest rates on personal loans look like, on average:
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%.
Where to get excellent-credit personal loans
Excellent-credit borrowers can get personal loans from online lenders, banks and credit unions.
Excellent-credit personal loans from online lenders
Online lenders offer a streamlined application process and fast funding. Many online lenders have mobile apps so you can manage your loan right from your phone.
Excellent-credit personal loans from banks
Banks that offer personal loans tend to cater to borrowers with excellent credit, and most offer lower rates and no fees compared to other lenders. If you have an existing account with the bank, you could also benefit from an easier application process and discounted rates. The downside is some banks require you to visit a branch to complete the loan application process.
Excellent-credit personal loans from credit unions
Federal credit unions cap interest rates at 18%, so excellent-credit borrowers are likely to receive low rates from these lenders — especially if you're already a member. Credit unions may also offer smaller loans than banks.
Will a personal loan hurt my excellent credit score?
Most lenders perform a soft credit inquiry when you pre-qualify, followed by a hard check during the formal application process. That hard check will temporarily knock a few points off your credit score. You can quickly rebuild any negative impact by choosing a lender that reports your repayment activity to all three credit bureaus (Equifax, Experian and TransUnion) and never missing a monthly payment.
A personal loan also diversifies your debt. According to FICO, credit mix contributes 10% toward the calculation of your total credit score.
How to choose the best personal loan for excellent credit
Having excellent credit is an advantage, but it can make choosing between multiple loan offers more difficult. Check the overall cost of the loan and monthly payments against your budget, and carefully weigh the different features offered by each lender.
Here are several considerations to keep in mind:
Cost. The loan's cost is often its most important feature. The loan with the lowest APR is the least expensive, but a loan with a slightly higher APR and longer repayment term may have lower monthly payments. Look for a loan that has affordable monthly payments without inflating interest costs too much.
Loan term. Terms on personal loans typically range from two to seven years. Some lenders offer limited repayment term options, while others offer pre-qualified borrowers several terms to choose from. A longer term means you’ll have lower monthly payments but pay more in interest over the life of the loan. Loan amount. Having excellent credit may qualify you for the largest available loan amounts, which can be up to $100,000. Still, it's best to request only the amount of money you need and can afford to repay.
Funding time. Most lenders will fund a personal loan within a week of approval. If you need money fast, consider a lender that offers same- or next-day funding. Loan features. Some lenders will send loan proceeds directly to your creditors if you’re consolidating debt, allow flexible payment schedules or offer rate discounts for setting up automatic payments. Perks. Take advantage of resources offered by lenders such as free credit score monitoring, financial planning or hardship assistance plans.
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Alternatives for excellent-credit borrowers
Having excellent credit means you may qualify for many credit options. Here are a few others you might consider.
Zero-interest credit card: 0% interest credit cards let you borrow at no cost as long as you pay off your balance within the card’s 0% interest introductory period — typically 15 to 21 months. This kind of card is a good choice for a small- to medium-sized expense, like an engagement ring or laptop, that you can pay off by the end of the promotional period. Rewards credit card: Credit cards that offer rewards like travel points or cash back can be beneficial for future expenses. Pay off the card’s balance each month to avoid paying interest. You can use a rewards card to pay for travel and reap the benefits on future trips. Personal line of credit: A personal line of credit functions like a mix between a credit card and a personal loan. It’s a good option for expenses with unpredictable timelines and costs, such as large home improvement projects. Home equity financing: Homeowners with excellent credit and equity in their homes may qualify for a home equity loan or home equity line of credit. These financing options usually have lower rates and longer repayment terms than personal loans or personal lines of credit. The risk, however, is potentially losing your home if you fail to repay the debt. 
