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Best Personal Loans of 2024: Compare Top Rates

Review Updated
Dana George
Robin Hartill, CFP
By: Dana George
Dana George
Dana George
Writer

Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.

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 and  Robin Hartill, CFP
Robin Hartill, CFP
Robin Hartill, CFP
Writer

Robin Hartill, CFP®, is Motley Fool Money’s Head of Product Ratings and has worked for The Motley Fool since 2020. Her work has appeared in various national publications, including Yahoo! Finance, NerdWallet, Investopedia, CNN Underscored, MSNBC, USA Today, and CNET Money. She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column. She is based in St. Petersburg, Florida.

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Nathan Alderman
Check IconFact Checked Nathan Alderman
Nathan Alderman
Nathan Alderman
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Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As Motley Fool Money's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

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Best Hardship Loans Best Debt Consolidation Loans Best Bad Credit Loans Best Cosigner Loans

Personal loans represent an agreement between a borrower and lender. Once a loan application has been accepted, the lender makes a lump sum payment to the borrower, and the borrower pays the loan back in monthly installments.

Personal loans are best for those who have planned how they will spend the money and how it will be repaid. Listed below are the best personal loans for borrowers of all kinds, from those with poor credit scores to excellent credit scores.

Here's a quick list of 3 of our favorite personal loans. Click the links below to go straight to the issuer's site to learn more.

Compare the best personal loan rates of 2024

Ratings Methodology
As of Oct. 01, 2024
Lending Partner Min. Credit Score Loan Amounts Apr Range Next Steps
Discover Personal Loan
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
= Fair
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Min. Credit Score: 660 Loan Amounts: $2,500 - $40,000 APR Range: 7.99% - 24.99%
Check Rates for Discover Personal Loan

Powered by Credible
Award Icon 2024 Award Winner
SoFi Personal Loans
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
= Fair
= Poor
Min. Credit Score: 680 Loan Amounts: $5,000 - $100,000 APR Range: Fixed: 8.99%-29.99% APR (with all discounts)
Check Rates for SoFi Personal Loans
Award Icon 2024 Award Winner
Upstart
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
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Min. Credit Score: None Loan Amounts: $1,000 - $50,000 APR Range: 7.80% - 35.99%
Check Rates for Upstart
Award Icon 2024 Award Winner
Citi® Personal Loan
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
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Min. Credit Score: 720 Loan Amounts: $2,000 - $30,000 APR Range: 11.49% - 20.49%
Check Rates for Citi® Personal Loan
Award Icon 2024 Award Winner
LightStream
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
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Min. Credit Score: Good credit Loan Amounts: $5,000 - $100,000 APR Range: 6.99% - 25.29% (w/ AutoPay)*
Check Rates for LightStream
Happy Money
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Min. Credit Score: 640 Loan Amounts: $5,000 - $40,000 APR Range: 11.72% - 17.99%; 12.45% min. APR for loans over $15,000
Check Rates for Happy Money

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Avant
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Min. Credit Score: 580 Loan Amounts: $2,000 - $35,000 APR Range: 9.95% - 35.99%
Check Rates for Avant

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Best Egg
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
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Min. Credit Score: 550 Loan Amounts: $2,000 - $50,000 APR Range: 8.99% - 35.99%
Check Rates for Best Egg

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Achieve
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Min. Credit Score: 620 Loan Amounts: $5,000 - $50,000 APR Range: 8.99% - 35.99%
Read Review
Disclaimers

Rates as of 8-01-2024. Your APR may be as low as 11.49% or as high as 20.49% for the term of your loan. The lowest rate quoted assumes excellent credit and a loan term of 24 or 36 months. Your APR will depend on a variety of factors including your creditworthiness, term of loan, and existing relationship with Citi. Citi offers personal loans with a period of repayment between 12 and 60-month terms. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.

There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the APR. If you are in default, your APR may increase by 2.00%. Rates subject to change without notice.

To check for offers you may qualify for, Citi conducts a soft credit inquiry. If you are presented with an offer and choose to proceed with the application process, Citi will conduct a hard credit inquiry which may have an impact on your credit score.

Citi® Personal Loan proceeds cannot be used to pay for post-secondary education expenses or for business purposes. Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.

If you are approved for a personal loan with Citi, you can get your funds the same day with a Citi deposit account, or up to 2 business days for a non-Citi account when using direct deposit. Or, you can select to receive a check by mail in approximately 5 business days.

Terms, conditions, and fees for accounts, products, programs and services are subject to change at any time. You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted.

If you apply online, you must agree to receive the loan note and all other account disclosures provided with your loan origination in an electronic format and provide your signature electronically.

Personal loans are made available by Citibank, N.A., Equal Housing lender

*Upstart Loan Disclaimer

The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.

Rates 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 8.49% APR with a term of 5 years would result in 60 monthly payments of $205.12.  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.

*SoFi Personal Loan Disclaimer

Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount.

SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/24 and are subject to change without notice.Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual ratewill be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and 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 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, 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.

Impact to credit score: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Best for no origination or prepayment fees

Discover Personal Loan

Great for: Debt consolidation

Check Rates for Discover Personal Loan

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Logo for Discover Personal Loan
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Check Rates for Discover Personal Loan

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Minimum Credit Score
660
Loan Amounts
$2,500 - $40,000
APR Range
7.99% - 24.99%
Term Length
36 - 84 months

We chose Discover as a best personal loan lender because of its overall customer-friendly approach. There is no origination fee (other lenders can charge up to 8% of your loan amount). You get free access to your FICO® Score, which is nice if you're working to monitor or improve your credit.

  • Competitive APRs
  • No origination or prepayment fees
  • Debt consolidation support
  • Long repayment term

No cosigners accepted

Read Full Review

Highlights

  • Guarantee: If a borrower has a change of circumstances or even a change in heart, they have up to 30 days to refund the loan in full without paying any interest.
  • No origination fee: Discover doesn't charge this common fee.

Why Discover made the list

The Discover Personal Loan is available in all 50 states plus Puerto Rico. Loan amounts range from $2,500 - $40,000. While $40,000 may not be enough to complete a remodeling project, it should be more than enough to cover a 50th-anniversary party, wedding, or emergency situation. Discover charges no origination fee, saving borrowers money upfront. Currently, terms range from 36 - 84 months.

Requirements

  • Minimum credit score of 660 is required
  • Applicant must earn at least $25,000 annually
  • Must be 18 years of age or older
  • Must be a U.S. citizen or permanent resident

Best for high income borrowers wanting low APR

Award Icon 2024 Award Winner

SoFi Personal Loans

Great for: Low APR for borrowers with high income

Check Rates for SoFi Personal Loans
Logo for SoFi Personal Loans
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Check Rates for SoFi Personal Loans
Minimum Credit Score
680
Loan Amounts
$5,000 - $100,000
APR Range
Fixed: 8.99%-29.99% APR (with all discounts)
Term Length
24 - 84 months

SoFi makes our list of best personal loans companies because of its well-known consumer-centric approach. It doesn't require fees, loan limits are high, and rates are low. You can also get a rate discount for setting up automatic payments.

  • Competitive interest rates
  • No fees or prepayment penalty
  • High maximum loan limit
  • Same-day funding available
  • High minimum loan amount
  • High minimum credit score
  • No in-person support
Read Full Review

Highlights

  • Easy: SoFi is one of the few lenders that will pay off high-interest credit cards directly on behalf of the customer.
  • Fast: SoFi personal loans can be disbursed as soon as the next day.

Why SoFi made the list

SoFi offers loans from $5,000 - $100,000, with terms from 24 - 84 months. The lender offers flexible repayment options. Once the borrower signs the loan papers, the loan funds can hit their bank account as early as the next day. SoFi is a particularly good option for borrowers who want to use the funds to pay off high-interest credit cards. In fact, SoFi will pay the credit card issuers directly, then reward the borrower with a rate discount for allowing direct pay. The minimum credit score required is 680.

Requirements

  • Have a credit score of at least 680.
  • Be 18 years of age or older
  • Be employed or provide evidence of imminent employment
  • If not employed, have a reliable source of income
  • Be a U.S. citizen, permanent resident, or non-permanent resident

Best for reducing high interest debt

Award Icon 2024 Award Winner

Upstart

Great for: Reducing high interest debt

Check Rates for Upstart
Logo for Upstart
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Check Rates for Upstart
Minimum Credit Score
None
Loan Amounts
$1,000 - $50,000
APR Range
7.80% - 35.99%
Term Length
36 or 60 months

We selected Upstart as a best personal loans lender because it can accommodate a wide range of borrowers with different needs. Upstart offers flexible lending guidelines, small loans, and low rates to qualified applicants. Loans can be funded in one day.

  • Accepts borrowers with low credit scores
  • Wide range of loan amounts
  • No prepayment penalty
  • Payment grace period
  • High upper-range interest rate
  • High origination fees
  • No cosigner allowed
Read Full Review

Highlights

  • Options for those with bad credit: Upstart is willing to accept loan applications with credit scores as low as 300.
  • Fast: Borrowers can receive funds one business day after signing the loan.

Why Upstart made the list

Upstart provides personal loans to borrowers with credit scores as low as 300 in most states, and it's one of the few lenders that will consider a score that low. Loans of $1,000 - $50,000 are available, although Upstart does tack on an origination fee of 0% - 12%. Borrowers can choose terms of 36 or 60 months, and may receive their money one business day after signing.

Requirements

  • Be 18 years of age or older
  • Have a valid Social Security number
  • Have an active bank account
  • Have an annual income of at least $12,000
  • Be a U.S. citizen or permanent resident
  • Not be a resident of Iowa or West Virginia

Best for debt consolidation

Award Icon 2024 Award Winner

Citi® Personal Loan

Great for: Debt consolidation and long repayment terms

Check Rates for Citi® Personal Loan
Logo for Citi® Personal Loan
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Check Rates for Citi® Personal Loan
Minimum Credit Score
720
Loan Amounts
$2,000 - $30,000
APR Range
11.49% - 20.49%
Term Length
12 - 60 months

Citi's personal loans are a great option for anyone hoping to consolidate high-interest debt. The company has been around since 1812.

  • Low loan amounts available
  • Relatively low interest rate (on the low end of the range)
  • No origination or prepayment fees
  • Good for debt consolidation
  • Long repayment term
  • Funds sent by mail can take five business days or more to arrive
Read Full Review

Highlights

  • Low rates: Citi® Personal Loan stands out from the crowd by capping its current interest rates within a range of 11.49% - 20.49%.
  • Small amounts: You can borrow as little as $2,000 with Citi.

Why Citi made the list

Citi offers loans as small as $2,000, making it a convenient option for a borrower who only needs enough to get by and does not want to carry the debt for long. With a narrow range of interest rates, borrowers don't have to worry about being hit with a sky-high rate. However, with a loan term of up to 60 months, this could be an ideal loan for a person looking to consolidate existing debt.

Requirements

  • Credit score of 720 or more
  • Minimum annual income of $30,000
  • Age 18 or older (21 or older in Puerto Rico)
  • Social Security number
  • Verifiable bank account
  • U.S. citizen or permanent resident

Best for low APR with fast funding

Award Icon 2024 Award Winner

LightStream

Great for: Borrowers with good credit

Check Rates for LightStream
Logo for LightStream
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Check Rates for LightStream
Minimum Credit Score
Good credit
Loan Amounts
$5,000 - $100,000
APR Range
6.99% - 25.29% (w/ AutoPay)*
Term Length
24-240 months (varies by loan purpose)

We selected LightStream as a best personal loans lender because it offers high loan limits, no fees, low interest rates, a large autopay discount, and fast funding (sometimes same day). It prioritizes customer service and even pays unhappy customers for their feedback.

  • Competitive APRs
  • No fees or prepayment penalty
  • Same-day funding available
  • High maximum loan amount
  • Better APRs available
  • No pre-approval for personal loans
Read Full Review

Highlights

  • Less costly: LightStream doesn't charge origination fees.
  • Co-applicants allowed: Borrowers can apply with someone else with a higher credit score or more credit history to improve their chances of approval.

Why LightStream made the list

LightStream personal loans are available from $5,000 - $100,000, with no origination fees or prepayment penalties. Applicants need Good credit or greater, but LightStream does allow co-applicants. Loan terms range from 24-240 months (varies by loan purpose). If an applicant has been approved for a personal loan with the same terms by another lender, LightStream will beat that lender's rate by 0.1%.

Requirements

  • Have a valid Social Security number
  • Have a clear plan for what you want to do with the borrowed funds
  • Be able to provide evidence of any available assets

Best for paying off high-interest credit card debt

Happy Money

Great for: Reducing high-interest credit card debt

Check Rates for Happy Money

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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Check Rates for Happy Money

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Minimum Credit Score
640
Loan Amounts
$5,000 - $40,000
APR Range
11.72% - 17.99%; 12.45% min. APR for loans over $15,000
Term Length
24 - 60 months

We chose Happy Money as a best personal loans lender because we love its focus on paying off high-interest debt. Well-qualified applicants can get a very low rate. Happy Money discloses clearly what it wants in an applicant, so you'll know before you apply if it's a good fit.

  • Low APRs
  • Long loan terms
  • No hidden fees
  • Access to free credit scores
  • High minimum loan amount
  • Loans not available in Iowa, Massachusetts, or Nevada
Read Full Review

Highlights

  • Reduce financial stress: Happy Money's email course, "Peace," can help.
  • Designed for paying off credit cards: A Happy Money loan is intended to help borrowers shed high-interest debt.

Why Happy Money made the list

Happy Money is designed for those who want to pay off high-interest credit cards. What sets Happy Money apart is the focus it puts on those who hope to build their credit scores and learn more about their own financial behavior. The lender offers a free six-week email course called "Peace," intended to help customers deal with financial stress in a positive way. Loans are available from $5,000 - $40,000 in all states except Massachusetts and Nevada, and come with terms of 24 - 60 months. There is an origination fee ranging from 0% - 5%.

Requirements

  • Be 18 years of age or older
  • Have a valid Social Security number
  • Have an active checking account
  • Not live in Massachusetts or Nevada
  • Have a credit score of 640 or higher
  • Have no current account delinquencies

Best for low credit scores

Avant

Great for: Borrowers with poor credit scores

Check Rates for Avant

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Logo for Avant
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Check Rates for Avant

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Minimum Credit Score
580
Loan Amounts
$2,000 - $35,000
APR Range
9.95% - 35.99%
Term Length
12-60 months

Avant makes the cut as one of the best personal loan lenders because this lender can accommodate borrowers who might not qualify somewhere else. The credit score requirements are lower than what other best personal loan companies require. Loans start at $2,000.

  • Lower credit score requirements
  • Relatively low minimum loan amounts
  • Fast funding
  • No prepayment penalties
  • Higher APRs
  • Administration fee of up to 4.75%
Read Full Review

Highlights

  • Accepts lower credit scores: Avant is open to lending to borrowers who have credit scores below the national average.
  • Small amounts: Borrowers can take out loans for as little as $2,000 (and up to $35,000).

Why Avant made the list

Avant accepts applicants with credit scores as low as 580, significantly lower than the national average. However, applicants may pay a high interest rate and a loan origination fee of 0% - 4.75%. Plus, Avant charges a late fee of $25 and a returned check fee of $15.

Requirements

  • Have a monthly income of at least $1,200 (can include alimony, child support, or other maintenance)
  • Have a credit history that includes at least one account
  • Be able to apply on their own (no joint applications or co-signers are accepted)
  • Live in any state except for Hawaii, Iowa, Maine, New York, Vermont, or West Virginia

Best for consolidating high interest debt

Best Egg

Great for: Debt consolidation

Check Rates for Best Egg

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Logo for Best Egg
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Check Rates for Best Egg

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Minimum Credit Score
550
Loan Amounts
$2,000 - $50,000
APR Range
8.99% - 35.99%
Term Length
36 - 60 months

We chose Best Egg as a best personal loan lender because well-qualified applicants can get a very low interest rate here on loans up to $50,000. Most loans fund within a day. Also, borrowers get free access to their credit score and tips for improving it.

  • Low minimum loan amount (in most states)
  • Easy application process
  • Funds disbursed in as little as one day
  • Origination fees
  • No joint applications accepted
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Highlights

  • Fast: Loan proceeds can be in the borrower's bank account the following day.
  • Small amounts: Best Egg offers loans for as little as $2,000.

Why Best Egg made the list

Best Egg borrowers can apply for $2,000 - $50,000. However, the loan will not be cheap. In addition, the only applicants offered the lowest rate must have a FICO® Score of at least 550 and earn a minimum of $100,000 annually. The high end of the rate will be prohibitively expensive for many borrowers. Best Egg also charges an origination fee of 0.99% - 8.99%, another factor that can make its loans expensive. Loan terms range from 36 - 60 months.

Requirements

  • Must have a minimum credit score of 550
  • Proof of income is required
  • Must have a U.S. address
  • Must have a valid Social Security number
  • Debt-to-income (DTI) ratio (including mortgage) must be 65% or less
  • Must live in any U.S. state except: Iowa, Vermont, West Virginia, or U.S. territories

Best for borrowers who want to use a cosigner

Achieve

Great for: Debt consolidation and loan customization

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Logo for Achieve
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Minimum Credit Score
620
Loan Amounts
$5,000 - $50,000
APR Range
8.99% - 35.99%
Term Length
24 - 60 months

Achieve is one of the best personal loan lenders because rates are low, especially for borrowers who use the money to pay off other debt. You can also use a cosigner if you need to. Loans can fund in a day.

  • Competitive interest rates
  • Borrowers with poor credit may gain loan approval
  • No prepayment fee
  • Significant variation in origination fees
  • Not available in all states
  • High minimum loan amount

Highlights

  • Accepts lower credit scores: Achieve will consider borrowers with fair credit.
  • No pre-payment fee: Achieve won't charge extra if you pay off your loan early.

Why Achieve made the list

Formerly known as FreedomPlus, Achieve requires applicants to have a minimum credit score of 620. Customers can borrow between $5,000 - $50,000. Terms stretch from 24 - 60 months. Borrowers can also count on paying an origination fee of 0% - 4.99%. The low end of the interest rate is not out of line with other lenders, particularly for borrowers with good rather than excellent credit.

Requirements

  • Must be 18 years of age or older in most states; must be at least 19 in Alabama or Nebraska
  • Must be a U.S. citizen or permanent resident
  • Must have a Social Security number
  • Must provide proof of income
  • Must have a verified bank account
About my expertise with personal loans

I have been writing for Motley Fool Money since 2019, but have covered business and finance since 1999. As a finance expert, I have developed a deep understanding of the intricacies of personal loans -- the good and not-so-good. I believe everyone deserves access to fair and transparent financial products and strive to provide readers with the accurate information they need to make an informed choice.

-Dana George, writer for Motley Fool Money, a Motley Fool service

How to compare personal loans

To make sure you choose the right loan for your situation, follow these five tips when comparing loan offers.

1. Get quotes from at least three lenders

A lot of lenders offer personal loans. This includes online-only lenders, local banks, national banks, and credit unions.

There can be major variation from one lender to another in terms of interest rates, repayment timelines, fees, and the time it takes to fund loans, so it’s important to get multiple quotes when shopping for a loan.

Choose different kinds of lenders too, as online banks often have lower rates and easier qualifying requirements than local banks and lenders do because they have less overhead.

2. Look for lenders that allow you to compare loan offers without hard credit inquiries

When you apply for financing, sometimes a hard credit inquiry is placed on your credit report. But too many hard inquiries can hurt your credit score -- and inquiries stay on your credit report for up to three years.

The good news is many lenders -- and many online loan comparison tools -- let you get pre-approved for personal loans and find out your rate and terms before a hard inquiry goes on your record.

You provide your Social Security number and other basic information, the lender does a soft inquiry, then you find out what interest rate you qualify for. At that point, you can decide if you want to move forward with the lender and have a hard inquiry placed on your report.

3. Make sure you’re always comparing apples to apples

When comparing loan offers from multiple lenders, make sure the type of terms (like loan term and interest rates) are similar, not just the monthly payment.

For example, if one lender offers lower monthly payments but a longer repayment schedule, you may end up owing more in total for that loan than you would for a loan with higher monthly payments due to the extra interest you'll pay.

4. Look at total costs

Because you want to keep borrowing costs as low as possible, it makes sense to look for the loan offering the lowest total overall costs -- including fees and interest rates.

Knowing the total interest you’ll pay can help you choose the loan that will cost you the least in the end. And that's a better bet than focusing just on monthly payments or annual interest rate, which can paint a misleading picture if one loan has a longer loan repayment term or has more fees than another.

5. Read the fine print

You’ll also want to read the fine print for any loan you consider to find out all of the little details that could result in added costs.

Some lenders charge prepayment penalties, for example. In that case, if you wanted to pay your loan off early, you’d end up paying more for that loan than you might for a comparable loan without a prepayment fee.

You want a complete understanding of your loan so you’ll know all of the risks and potential charges you could incur. Only then can you make a fully informed choice about which lender is actually best.

How to get the best personal loan rates

To get the best rates from loan companies, follow these three steps:

Maintain a high credit score

A FICO® Score of at least 720 is normally enough to qualify for the lowest personal loan interest rates.

Get a cosigner

If your credit score is not high enough to qualify for a good interest rate, a personal loan cosigner with an excellent credit score can help you get a better interest rate.

Shop around for the best rate

Consider looking at traditional banks, credit unions, or even online personal loans. Do your research to find a lender that is offering the best personal loan rates. Many have an online prequalification tool that will give you a rate without hurting your credit score. In some cases, lenders will offer promotions and limited-time discounts.

What should personal loans be used for?

While personal loans can be used for anything, the key is to use them to improve your financial well-being. Here are some of the best reasons to get a personal loan:

Debt consolidation

Credit cards generally have higher interest rates. A personal loan can be used to consolidate your higher-interest debt to a lower-interest loan.

Home renovations

Certain home renovations can increase the value of your home. If you have equity in your home, a home equity line of credit (HELOC) may be a better financing option.

Career advancement

Paying for professional certifications, education, and training can boost your career prospects and opportunities for promotion or a higher-paying job.

Unexpected expenses

People should have an emergency savings account that has three to six months of expenses. If you don't, a personal loan can help cover a family emergency or help you recover from unexpected and expensive inconveniences.

What should personal loans not be used for?

Personal loans have higher interest rates than secured loans and if not used properly, can just increase your debt payments. It may be better to cut expenses or find additional ways to increase your income rather than take out a personal loan. Here are some expenses you should not use a personal loan for.

Extravagant vacations

A short-term trip can lead to long-term consequences. A personal loan should not be used to fund an elaborate vacation if the loan can't be paid back.

Celebrations (weddings/birthdays/graduations)

If you can't afford to pay the loan back, you shouldn't get a personal loan for events that only last a day. Celebrations generally are planned in advance, so it is better to save up for it.

Extra spending money

Taking out a personal loan to raise your standard of living is not a good idea. You should avoid a lifestyle your current finances can't support.

How to get a personal loan

No matter where you apply to get a personal loan -- a bank, credit union, or an online personal loan lender -- the application process is the same.

Here are the steps to take.

Gather documents

No matter where you apply, the lender is likely to ask for the same documents. Getting them together before you apply can streamline the process and save you a great deal of stress. Here's what you need:

  • Proof of identification
  • Proof of address
  • List of monthly expenses
  • Evidence of how much your collateral is worth (if you're applying for a secured personal loan)

Whether it's a secured personal loan or an unsecured personal loan, the lender may ask about the purpose for the funds. Some personal loans are designated for specific purposes, like those to help consolidate existing debt, but those loan types are relatively uncommon.

Shop lenders

Take the time to shop for the best lender. Lenders make loan decisions based on a "soft" credit check, which has no impact on your credit score. This soft credit check gives the personal loan lender a sense of your credit history, including credit card debt and other debt (like an outstanding installment loan). If your credit score is not quite perfect, look for lenders that specialize in personal loans for fair credit or personal loans for bad credit.

Don't leave any gaps -- fill out the entire loan application and provide the lender with all documents requested. If you do this, it should not take long to hear whether your loan has been approved. Some of the best lenders let you know within minutes if your application has been approved.

Compare loan offers

Compare loans of the same type side by side. If you have applied for unsecured loans, compare them only to other unsecured loan offers. And if you've applied for secured loans, compare them only to other secured loan offers.

Here's what to look for:

  • The lowest annual percentage rate
  • A repayment term that fits your budget
  • Loan amounts that match your borrowing needs
  • Lowest loan fees (ideally, you'll find a loan with no origination fee or prepayment penalty)
  • Perks like loan deferment when you're unemployed

Commit to a lender

A lender does not run a "hard" credit check until you let them know you want to proceed with a loan. So if you applied with five banks, only the bank you choose to work with runs a hard credit check.

A hard credit check is a deeper dive into your credit history, and it helps the personal loan provider make sure a borrower meets its minimum credit score requirement and has paid bills on time. Although the hard credit check may decrease your credit score, it's typically by less than five points. After a few months of regular payments, your score should rebound to its pre-loan level.

Note: If a low credit score means you don't receive a loan offer that works for you, consider taking time to improve your credit score. Boosting your score can only help you in the long run. Small changes like reducing your credit utilization, paying bills on time, and only applying for credit when needed can help raise your FICO® Score.

Sign loan documents

Whether you're working with an online lender or a brick-and-mortar financial institution, most lenders allow you to sign documents electronically. Read through the documents thoroughly before signing. Once you've signed, you're legally committed to whatever is written inside the four corners of the contract.

Wait for loan funding

Funds usually hit your bank account one to 14 days from the time of loan approval. If you need the money quickly, ask lenders about their fund distribution times as you shop for the loan. If you can't wait, make sure to work only with a lender that promises a quick distribution of funds.

FAQs

  • While the loan term may run anywhere from one to 10 years, a term of three to five years is more common. That said, if you opt for a personal loan with no prepayment penalty, you can pay it off before the term ends. Doing so minimizes the amount you pay in interest.

  • Personal loans normally carry a lower interest rate than credit cards do, and in that way, personal loans are a better option. Another advantage of personal loans is that, unlike credit cards, they don't affect your credit utilization ratio, which you want to be as low as possible. That's why taking out a personal loan to pay off credit card debt often helps your credit score. But personal loans and credit cards both represent debt, and the best financial move is to pay either off as quickly as possible.

  • There is no limit on how many loans you can have from different loan lenders. Some lenders may limit the number of personal loans you can have. Loan companies will consider your debt-to-income ratio, credit score, as well as other factors when determining how many loans you can take out or how much you qualify for. If you have too many loans, then it can impact your credit score, making it more difficult to qualify for new credit or a better rate.

  • Unsecured personal loan rates generally have higher interest rates than secured loans do. The lender requires nothing more than good credit and your written promise to repay the loan as agreed. Compared to a mortgage or auto loan, personal loan lenders take more risk since there is no collateral to back up the loan in case of a default.

  • Personal loans have a fixed interest rate based on the creditworthiness of the individual applying for the loan. The higher your credit score, the lower you can expect the lender's interest rate to be. Even if your credit score is not as high as you would like, you may still qualify for a personal loan with bad credit. However, you'll likely pay a higher interest rate than other borrowers.