Best of

Best Personal Loan Lenders of July 2024

Compare the best personal loans for good and bad credit, debt consolidation and more.

By
Ronita Choudhuri-Wade
Jul 1, 2024

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. 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.

Best Personal Loan Lenders

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

SoFi Personal Loan

Get rateon SoFi's websiteon SoFi's website
Best for Personal loans for good to excellent credit

8.99-29.99%

$5,000-$100,000

None

Get rateon SoFi's websiteon SoFi's website
Lightstream

LightStream

Get rateon LightStream's websiteon LightStream's website
4.5
/5
Best for Home improvement loans

6.99-25.49%

$5,000-$100,000

660

Get rateon LightStream's websiteon LightStream's website
Upstart

Upstart

Get rateon Upstart's websiteon Upstart's website
4.5
/5
Best for Personal loans for short credit history

7.80-35.99%

$1,000-$50,000

None

Get rateon Upstart's websiteon Upstart's website
BestEgg

Best Egg

Get rateon Best Egg's websiteon Best Egg's website
4.5
/5
Best for Secured loans

8.99-35.99%

$2,000-$50,000

600

Get rateon Best Egg's websiteon Best Egg's website
Upgrade

Upgrade

Get rateon Upgrade's websiteon Upgrade's website
5.0
/5
Best for Personal loans for bad to fair credit

8.49-35.99%

$1,000-$50,000

560

Get rateon Upgrade's websiteon Upgrade's website
Discover

Discover® Personal Loans

Get rateon Discover's websiteon Discover's website
5.0
/5
Best for Debt consolidation loans

7.99-24.99%

$2,500-$40,000

660

Get rateon Discover's websiteon Discover's website
Happy Money

Happy Money

Get rateon Happy Money's websiteon Happy Money's website
4.5
/5
Best for Personal loans for credit card consolidation

11.72-17.99%

$5,000-$40,000

640

Get rateon Happy Money's websiteon Happy Money's website
Lending Club

LendingClub

See my rateson NerdWallet's secure websiteon NerdWallet's secure website
4.5
/5
Best for Joint personal loans

8.98-35.99%

$1,000-$40,000

600

See my rateson NerdWallet's secure websiteon NerdWallet's secure website

Our pick for

Personal loans for good to excellent credit

SoFi
Get rateon SoFi's websiteon 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

Get rateon SoFi's websiteon SoFi's website
Key facts

SoFi is a strong option for good-credit consumers and offers low rates, no fees and flexible payments.

Pros
  • Joint loan option.
  • Multiple rate discounts.
  • Mobile app to manage loan.
Cons
  • No option to choose initial payment date.
  • High minimum loan amount.
Qualifications
  • Must legally be an adult in your state.
  • Must be a U.S. citizen, permanent resident or non-permanent resident with valid documentation.
  • Must be employed, have sufficient income or have an offer of employment to start within 90 days.
Available Term Lengths2 to 7 years
Fees
  • Origination fee: 0% to 7%.
  • Late fee: None.
DisclaimerFixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

Our pick for

Home improvement loans

Lightstream
Get rateon LightStream's websiteon LightStream's website
Lightstream

LightStream

4.5
Est. APR

6.99-25.49%

Loan amount

$5,000-$100,000

Min. credit score

660

Get rateon LightStream's websiteon LightStream's website
Key facts

LightStream targets strong-credit borrowers for loans with no fees and low rates that vary based on loan purpose.

Pros
  • No fees.
  • Rate discount for autopay.
  • Long repayment terms on home improvement loans.
  • Rate Beat program and Experience Guarantee.
Cons
  • No option to pre-qualify with a soft credit check on its website.
  • No direct payment to creditors with debt consolidation loans.
  • High minimum loan amount.
Qualifications
  • Must be a U.S. citizen or permanent resident.
  • Must be at least 18 years old.
  • Minimum credit score: 660.
  • Must have several years of credit history with multiple account types and few or no delinquencies.
  • Must have assets like retirement, investment and savings accounts.
Available Term Lengths2 to 7 years
Fees
  • Origination fee: None.
  • Late fee: None.
DisclaimerRates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 7.99% APR with a term of 5 years would result in 60 monthly payments of $202.72. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2024 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

Our pick for

Debt consolidation loans

Discover
Get rateon Discover's websiteon Discover's website
Discover

Discover® Personal Loans

Est. APR

7.99-24.99%

Loan amount

$2,500-$40,000

Min. credit score

660

Get rateon Discover's websiteon Discover's website
Key factsWith competitive rates and no orgination fees, Discover personal loans are good options for borrowers with good and excellent credit.
Pros
  • No origination fee.
  • Option to pre-qualify with a soft credit check.
  • Fast funding.
  • Mobile app to manage loan.
Cons
  • May charge late fee.
  • No co-sign or joint loan option.
  • No rate discount.
Qualifications
  • Minimum credit score: 660.
  • Must be at least 18 years old.
  • Must have a valid U.S. Social Security number.
  • Minimum individual or household annual income of $25,000.
  • Must have an active email address.
Available Term Lengths3 to 7 years
Fees
  • Origination fee: None.
  • Late fee: $39.
DisclaimerThis is not a commitment to lend from Discover Personal Loans. Your APR will be between 7.99% and 24.99% based on creditworthiness at time of application for loan terms of 36-84 months. For example, if you get approved for a $15,000 loan at 13.99% APR for a term of 72 months, you'll pay just $309 per month. You must have a minimum individual or household annual income of $25,000, be over 18 years of age, and have a valid US SSN to be considered for a Discover personal loan. Loan approval is subject to confirmation that your income, debt-to-income ratio, credit history and application information meet all requirements. Our lowest rates are available to consumers with the best credit. Many factors are used to determine your rate, such as your credit history, application information and the term you select. State restrictions may apply. A Discover personal loan is intended for personal use and cannot be used to pay for post-secondary education, to pay off a secured loan, or to directly pay off a Discover credit card. If your application is approved, we will send funds after you accept the loan. Your bank or creditor may take more days to process the funds. Discover makes loans without regard to race, color, religion, national origin, sex, disability, or familial status.

Our pick for

Personal loans for short credit history

Upstart
Get rateon Upstart's websiteon Upstart's website
Upstart

Upstart

Est. APR

7.80-35.99%

Loan amount

$1,000-$50,000

Min. credit score

None

Get rateon Upstart's websiteon Upstart's website
Key facts

Upstart is a good option for those who have short credit histories and promising financial futures.

Pros
  • 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.
Cons
  • May charge origination fee.
  • No joint or co-signed loans.
  • No direct payment to creditors on debt consolidation loans.
Qualifications
  • Must be a U.S. citizen or permanent resident.
  • Must be at least 18 in most states.
  • Must have a valid email address and Social Security number.
  • Must have a bank account at a financial institution with a routing number.
  • No bankruptcies in the last 12 months.
  • No current delinquent accounts.
  • Minimum credit score: None.
  • Minimum annual income: $12,000; this lender accepts income from employment, alimony, retirement, child support, Social Security, rentals, trusts, pensions, disability and scholarships.
  • Must have a full-time job or be starting a full-time job within six months.
Available Term Lengths3 to 7 years
Fees
  • Origination fee: 0% to 12%.
  • Late fee: 5% of past due amount or $15, whichever is greater.
  • Returned check fee: $15.
DisclaimerThe full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved. Most borrowers are instantly approved. The majority of unsecured loan borrowers on the Upstart marketplace are able to receive an instant decision upon submitting a completed application, without providing additional supporting documents, however final approval is conditioned upon passing the hard credit inquiry. Loan processing may be subject to longer wait times if additional documentation is required for review. If you accept your loan by 5pm EST (not including weekends or holidays), your funds will be sent on the next business day.

Our pick for

Personal loans for bad to fair credit

Upgrade
Get rateon Upgrade's websiteon Upgrade's website
Upgrade

Upgrade

Est. APR

8.49-35.99%

Loan amount

$1,000-$50,000

Min. credit score

560

Get rateon Upgrade's websiteon Upgrade's website
Key facts

Upgrade offers personal loans plus credit-building tools; you'll need strong cash flow to qualify.

Pros
  • Secured and joint loans.
  • Multiple rate discounts.
  • Mobile app to manage loan payments.
  • Direct payment to creditors with debt consolidation loans.
  • Long repayment terms on home improvement loans.
Cons
  • Origination fee.
  • No option to choose your payment date.
Qualifications
  • Minimum credit score: 560.
  • Minimum number of accounts on credit history: One account.
  • Maximum debt-to-income ratio: 75%, including the loan you're applying for.
  • Minimum length of credit history: Two years.
  • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
Available Term Lengths3 to 7 years
Fees
  • Origination fee: 1.85% to 9.99%.
  • Late Fee: $10.
  • Failed payment fee: $10.
DisclaimerPersonal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.

Our pick for

Personal loans for credit card consolidation

Happy Money
Get rateon Happy Money's websiteon Happy Money's website
Happy Money

Happy Money

Est. APR

11.72-17.99%

Loan amount

$5,000-$40,000

Min. credit score

640

Get rateon Happy Money's websiteon Happy Money's website
Key facts

Happy Money offers loans plus ongoing support to help good-credit borrowers consolidate credit card debt.

Pros
  • Pre-qualify with soft credit check.
  • Direct payment to creditors with debt consolidation loans.
  • Fast funding.
  • Hardship program.
Cons
  • Origination fee.
  • No rate discount.
  • No joint, co-sign or secured loan options.
  • No option to choose initial payment date.
Qualifications
  • Must be a U.S. citizen or permanent resident.
  • Must have a valid Social Security number.
  • Minimum credit score: 640.
  • Minimum credit history: 6 years and 2 accounts.
  • Maximum debt-to-income ratio: 55%.
  • No bankruptcies filed in past two years.
Available Term Lengths2 to 5 years
Fees
  • Origination fee: 1.5% to 5%.
DisclaimerThis offer does not constitute a commitment to lend or an offer to extend credit. Upon submitting a loan application, you may be asked to provide additional documents to verify your identity, income, assets, or financial condition. The rate and terms you may be approved for will be shown to you during the application process. Loans subject to an origination fee, which is deducted from the loan proceeds. Refer to full borrower agreement for all terms, conditions and requirements. Only loans applied for and issued on or after January 10, 2024, are covered under the TruStage™ Payment Guard Insurance Policy. Please refer to the certificate of insurance, provided to you with your loan origination documents, for terms and conditions of the coverage. Some exclusions apply. Claims must be submitted for review and approval to CUMIS Specialty Insurance Company, Inc. TruStage™ Payment Guard Insurance is underwritten by CUMIS Specialty Insurance Company, Inc and not by Happy Money. CUMIS Specialty Insurance Company, our excess and surplus lines carrier, underwrites coverages that are not available in the admitted market. Product and features may vary and not be available in all states. Certain eligibility requirements, conditions, and exclusions may apply. Please refer to the Group Policy for a full explanation of the terms. The insurance offered is not a deposit, and is not federally insured, sold or guaranteed by any financial institution. Corporate Headquarters 5910 Mineral Point Road, Madison, WI 53705.

Our pick for

Secured loans

BestEgg
Get rateon Best Egg's websiteon Best Egg's website
BestEgg

Best Egg

Est. APR

8.99-35.99%

Loan amount

$2,000-$50,000

Min. credit score

600

Get rateon Best Egg's websiteon Best Egg's website
Key facts

Best Egg is worth considering for borrowers looking for a secured loan or to consolidate debt, but the loans come with an origination fee.

Pros
  • Option to pre-qualify with a soft credit check.
  • Wide range of loan amounts.
  • Unsecured and secured loan options.
  • Direct payment to creditors with debt consolidation loans.
  • No late fees.
Cons
  • Origination fee.
  • No rate discounts.
  • No option to choose initial payment date.
  • No mobile app to manage loan.
Qualifications
  • Minimum credit score: 600.
  • Must be a U.S. citizen.
  • Minimum credit history: 24 months and 1 account.
  • Minimum annual income: $3,500.
  • Maximum debt-to-income ratio: 40% or 65% including mortgage.
Available Term Lengths3 to 5 years
Fees
  • Origination fee: 0.99% - 9.99%.
Disclaimer*Trustpilot TrustScore as of December 2022. Best Egg loans are personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, N.A., Member FDIC, Equal Housing Lender. The Best Egg Credit Card is issued exclusively by First Bank & Trust, Member FDIC, Brookings SD pursuant to a license by Visa International. Visa is a registered trademark, and the Visa logo design is a trademark of Visa International Incorporated. “Best Egg” is a trademark of Best Egg Technologies, LLC. Offers may be sent pursuant to a joint marketing agreement between Cross River Bank, Blue Ridge Bank, N.A. and/or First Bank & Trust and Marlette Marketing, LLC, a subsidiary of Best Egg, Inc. The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; Ohio, $5,001; and Georgia, $3,001. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $100,000. Annual Percentage Rates (APRs) range from 8.99%– 35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%– 9.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. For example: a 5‐year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3‐year $5,000 loan with 7.99% APR has 36 scheduled monthly payments of $155.12. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories. TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR CALL– Operations Manager, Email: [email protected], Address: P.O. Box 42912, Philadelphia, PA 19101, Phone: 1-855-282-6353. This lender is licensed and regulated by the New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints, contact the division by telephone at (505) 476-4885 or visit the website https://www.rld.nm.gov/financial-institutions/

Our pick for

Joint personal loans

Lending Club
See my rateson NerdWallet's secure websiteon NerdWallet's secure website
Lending Club

LendingClub

Est. APR

8.98-35.99%

Loan amount

$1,000-$40,000

Min. credit score

600

See my rateson NerdWallet's secure websiteon NerdWallet's secure website
Key facts

LendingClub personal loans are a solid option for good-credit borrowers looking to consolidate debt and build their credit.

Pros
  • 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.
Cons
  • Origination fee.
Qualifications
  • Minimum credit score: 600; average borrower score is above 700.
  • Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
  • Maximum DTI: 40%.
  • Minimum credit history: 36 months and two accounts.
Available Term Lengths2 to 5 years
Fees
  • Origination fee: 3% to 8%.
  • Late fee: 5% of payment or $15 after 15-day grace period.
DisclaimerBetween January 1, 2024 to March 31, 2024, Personal Loans issued by LendingClub Bank were funded within 26 hours after loan approval, on average. 47% of Personal Loans issued by LendingClub Bank during the same period were funded within 24 hours after loan approval. Loan approval, and the time it takes to issue a credit decision, are not guaranteed and individual results vary based on creditworthiness and other factors, including but not limited to investor demand. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,562 for a term of 36 months, with an interest rate of 10.87% and a 6.50% origination fee of $1,272 for an APR of 15.58%. In this example, the borrower will receive $18,290 and will make 36 monthly payments of $639. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states. For Personal Loans, APR ranges from 8.98% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of April 11, 2024 and are subject to change without notice. Unless otherwise specified, loans are made by LendingClub Bank, N.A., Member FDIC (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. LendingClub Bank is not an affiliate of NerdWallet and is not responsible for the products and services provided by NerdWallet. Loans are subject to credit approval and sufficient investor commitment. If a credit union is selected to invest in the loan, credit union membership will be required. Certain information that LendingClub Bank subsequently obtains as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that you request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com. “LendingClub” is a trademark of LendingClub Bank.

On this page

Best place to get a personal loan

You can get a personal loan from online lenders, banks and credit unions. The best option is one where you can get the rate, terms and features that fit your financial situation.

Loans from online lenders

With an online lender, the process of getting a loan — from application to funding — can be completed on your own schedule without having to leave home. Online lenders typically provide the fastest funding times. Some even have same- or next-day funding.

Loans from banks

Some banks provide rate discounts and perks to existing customers. These lenders typically require borrowers to have good to excellent credit (scores of 690 or higher) to qualify for personal loans.

Loans from credit unions

To get a personal loan from a credit union, you must first be a member. Credit unions are usually more willing to lend to borrowers who have fair or bad credit (scores below 690), and federal credit unions cap interest rates at 18%.

» MORE: Online vs. in person loan: Which is better?

How to compare the best personal loan lenders

Here are things to consider as you shop for a personal loan.

Pre-qualification. Many lenders let you pre-qualify online to check your estimated interest rate and loan terms. This process involves a soft credit check, which won’t affect your credit score. It pays to pre-qualify for a loan with multiple lenders and compare offers and loan features.

Annual percentage rates. Because APRs include interest rates and fees, they offer an apples-to-apples cost comparison for borrowers deciding between personal loan offers. Use our personal loan calculator to see how APR affects monthly payments and total loan costs.

Funding time. The time it takes to get a personal loan can depend on the type of lender. Many online lenders will approve your application and send funds within a day or two after you apply. Banks and credit unions may take up to a week.

Repayment terms. Lenders may offer a wide variety of repayment terms. They typically range from two to seven years. A shorter-term loan means you’ll pay less interest while a longer term gives you lower monthly payments. Based on your budget, one may make more financial sense than the other.

Loan amount. Depending on how much money you need, certain lenders could be a better fit than others. Most lenders offer small to midsize loan amounts of $2,000 to $50,000, but some provide up to $100,000. Determine the amount you need, whether that means adding up your credit card debt to consolidate or getting a cost estimate on a home improvement project, and compare lenders that can offer that size loan.

Special features. See if the lender you’re considering offers any perks that could help you reach your financial goals. You may benefit from features like rate discounts for setting up autopay, financial planning or hardship assistance programs.

Explore the top personal loans and lenders in each of these categories:

Personal loan interest rates and fees

Personal loan interest rates differ by lender, and the rate you receive depends on factors like your credit score, income and debt-to-income ratio (DTI). Here’s a look at current average personal loan rates.

Borrower credit rating

Score range

Estimated APR

Excellent

720-850.

11.10%.

Good

690-719.

13.74%.

Fair

630-689.

17.51%.

Bad

300-629.

21.83%.

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from June 1, 2024, through June 30, 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%.

Some lenders charge origination fees to cover the cost of processing the loan. Lenders typically deduct the fee before sending you the funds, but it is included in the loan’s annual percentage rate.

Some lenders also charge late payment fees and nonsufficient funds fees, which are charged when you don’t have enough in your bank account to cover the loan’s monthly payment.

Pros and cons of personal loans

Depending on your financial situation and the loan’s purpose, a personal loan can be the right move or one you should sidestep.

Pros

  • Lower starting APRs than credit cards.
  • Fixed rates and monthly payments.
  • Flexible loan amounts.
  • No collateral.

Cons

  • Maximum APRs can be high.
  • Possible fees.
  • Increases debt.

Pros

Lower starting APRs than credit cards. For borrowers with strong credit, personal loans typically have lower APRs than credit cards. While some credit cards offer 0% interest during an introductory period, the rates are generally higher after the period ends.

Fixed rates and monthly payments. Personal loans have fixed rates and monthly payments over a set term, so you always know what you owe and for how long. Other financing options like home equity lines of credit have variable rates, meaning the monthly payments fluctuate.

Flexible loan amounts. Depending on the lender and your creditworthiness, you may have access to personal loan amounts of $1,000 to $100,000. This range meets a wide variety of expenses, from small emergencies to large home improvement projects.

No collateral. Unlike home equity loans that require you to secure the loan with your house, unsecured personal loans don’t require collateral. You risk hurting your credit if you can’t repay, but you won't lose any assets.

Cons

Maximum APRs can be high. If you have a low credit score, APRs on personal loans can be higher than credit card APRs.

Possible fees. Borrowers may have to pay fees — like origination or late fees — along with their loan payments.

Increases debt. Taking a personal loan adds debt to your budget, so it's important to factor in the additional obligation and feel comfortable about paying it off.

How to get a personal loan

  1. Check your credit. Your credit score is a primary factor lenders use to determine whether you qualify for a personal loan and the rate you receive. Resolve any errors that might be hurting your score and, if you can, pay down debts to reduce your DTI ratio. Get a free credit report with NerdWallet or at AnnualCreditReport.com.

  2. Pre-qualify with multiple lenders. Pre-qualifying gives you an idea of the rate and terms you can expect. Compare pre-qualified offers to find the lowest APR and monthly payments that fit your budget.

  3. Apply. The formal application process requires documents to verify your identity and income. Once approved, you’ll typically receive your loan funds within a week.

Frequently asked questions

  • Lenders have different requirements but generally consider your credit profile, income and debts during the loan approval process. You’ll typically need to submit proof of your identity and financial information, which can include documents such as your driver’s license, Social Security number, pay stubs, tax returns and bank statements.

  • Most lenders will ask about the purpose of the loan, but you can use a personal loan for almost any reason. A lender may have restrictions on using the money for specific purposes, like higher education or investing.

  • Once you’ve submitted the application, lenders can usually let you know if you’ve been approved within one to two days. Most lenders can fund a personal loan within a week, though some offer same- or next-day funding.

  • Borrowers with low income may qualify for personal loans offered by lenders with soft income requirements. Some lenders don’t have minimum income requirements. Include all sources of income — child support, alimony or Social Security payments — on your application to increase your chances of qualifying for a loan.

Next step: Pre-qualify for a personal loan

You can pre-qualify on NerdWallet and see rates from lenders that partner with us. Pre-qualifying triggers a soft credit check, which doesn't impact your score.

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Last updated on July 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 Personal Loan Lenders of July 2024

  • SoFi Personal Loan: Best for Personal loans for good to excellent credit
  • LightStream: Best for Home improvement loans
  • Discover® Personal Loans: Best for Debt consolidation loans
  • Upstart: Best for Personal loans for short credit history
  • Upgrade: Best for Personal loans for bad to fair credit
  • Happy Money: Best for Personal loans for credit card consolidation
  • Best Egg: Best for Secured loans
  • LendingClub: Best for Joint personal loans
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