Best Personal Loan Lenders of June 2024

NerdWallet has reviewed more than 35 financial institutions to find the best personal loans. See our top picks and learn how to compare personal loans.

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The best personal loan lenders offer affordable monthly payments at a rate that fits your budget. Other loan features, including no fees, rate discounts and mobile apps may set some lenders apart. We always recommend you compare personal loans from multiple lenders before making a choice.

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.

Best Personal Loan Lenders

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 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%.

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 the same or next day 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. Determining the amount you need will help you compare and decide.

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 what interest rates on personal loans look like, on average:

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. This one-time fee is included in the loan’s annual percentage rate, so consider this when comparing costs between lenders.

Some lenders also charge late payment fees and insufficient funds fees 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.

Increased debt.

Pros of personal loans

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 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 of personal loans

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.

Increase in 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 about personal loans

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.

Pre-qualify with multiple lenders and use APR for the best apples-to-apples comparison of the cost of the loan. Typically, the lender that offers the lowest APR is the best one. Other factors to consider include loan amount, repayment terms, funding times and special features, such as a mobile app.

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.

Credit score requirements vary among personal loan lenders. Some lenders accept borrowers with good or excellent credit only; others provide loans to bad-credit borrowers. Learn how to get a loan with bad credit.

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.

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.

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