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Best Personal Loans With No Origination Fees of April 2024

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Updated: Apr 26, 2024

Written by: Dori Zinn

Written by: Dori Zinn Contributing Writer

Dori Zinn is a personal finance journalist with work featured in the New York Times, Wall Street Journal, Yahoo, Forbes, TIME, and others.

Edited by: Kelly Larson

Edited by: Kelly Larson Senior Editor

Kelly is an editorial leader and collaborator with over 13 years of experience creating and optimizing data-driven, reader-focused digital content. Before joining our team, Kelly was the cross-niche editor and Branded Content Lead at personal finance and fintech site Finder.

Personal loans can be expensive, but the best ones have low interest rates and few fees, making them more affordable to borrowers.

While many lenders charge origination fees, we at the MarketWatch Guides team have identified a handful that don’t require any at all. We’ve reviewed more than two dozen of the leading personal loan lenders in the U.S. to bring you this list of the best personal loans with no origination fees.

Related Resources:

Best Personal Loans Best Debt Consolidation Loans Best Bad Credit Loans Best Personal Loans for Fair Credit

Why You Can Trust the MarketWatch Guides Team

Here’s a breakdown of how we reviewed and rated top personal loan providers

Providers Rated

660

Data Points Analyzed

Loan Features Tracked

Professionals Consulted

Compare the Best Personal Loans With No Origination Fees

The Best Personal Loans With No Origination Fees

LightStream: Our Top Pick
SoFi: Best Customer Service
PenFed: Best for Small Loans
Discover: Best for Low Rates
U.S. Bank: Best for Bank Switchers
Wells Fargo: Best for In-Person Service

LightStream

Our Top Pick

5.0

Interest Rate (APR) 7.49% to 25.49% Term Options 24 months to 144 months Loan Size Offered $5k to $100k

LightStream Overview

LightStream is one of the most popular personal loan lenders. It offers loans for just about anything and has some of the most competitive interest rates around. With no fees and long repayment terms, it could be a strong option for those needing to borrow large sums while keeping monthly payments low.

Pros & Cons

Pros No fees: Enjoy no origination fees or other fees with a LightStream personal loan. AutoPay discount: You can get a 0.5% interest rate reduction when you sign up for autopay. This is more than the traditional .25% offer from some other lenders. Fast funding: Get your funds deposited directly into your account within a day. Cons No preapproval: You can’t see if you’re eligible for a LightStream personal loan without completing a full application. Many lenders let you see if you prequalify before completing a loan application. No due date change: Some lenders let you change the day your loan payment is due — LightStream does not. Only good or excellent credit is accepted: You might not qualify for a LightStream loan if you have poor or fair credit.

LightStream Eligibility Requirements

You’ll need to have at least good or excellent credit to qualify for a LightStream loan. You shouldn’t have any current delinquencies and need to show a solid credit history of on-time payments.

SoFi

Best Customer Service

4.9

Interest Rate (APR) 8.99% to 29.49% Term Options 24 months to 84 months Loan Size Offered $5k to $100k

SoFi Overview

Along with offering optional origination fees that allow you to create bespoke payments, SoFi is a leader in customer care. If you can’t repay your loan, SoFi offers extra benefits like unemployment protection, financial advising and more to help you get and stay on track. Borrow up to $100,000, if eligible.

Pros & Cons

Pros Prequalification available: See if you’re eligible for a SoFi personal loan without completing a full credit check, which will result in a hard credit inquiry on your credit report. Low interest rates: Interest rates are some of the lowest we found among our evaluation of lenders. Unemployment protection: If you can’t repay your loan because you lost your job or are otherwise facing hardship, SoFi offers unemployment assistance — a forbearance program that lets you pause payments without causing your loan to become delinquent. Cons Large minimum requirement: You’ll need to borrow at least $5,000. Few debt consolidation options: SoFi will not directly pay your creditors. If you’re looking to consolidate debt, you’ll need to pay them directly. Limited repayment terms: Repayment terms range between 2 and 7 years, depending on how much you borrow. This may not be enough time or could cause you to have higher monthly payments than if you were to go with another lender.

SoFi Eligibility Requirements

You’ll need to be a U.S. citizen, permanent resident or visa holder to qualify for a SoFi personal loan. You’ll need to show you can responsibly repay your loan by providing relevant documents like pay stubs, tax returns, W2s, bank statements and more.

PenFed Credit Union

Best for Small Loans

4.8

Interest Rate (APR) 7.99% to 17.99% Term Options 12 months to 60 months Loan Size Offered $600 to $50k

PenFed Overview

Aside from online lenders, you can explore credit unions like PenFed for personal loans without origination fees. You don’t need to be a member to apply for the loan (though you will to get the loan), nor do you need to be part of the military to qualify for membership. Because PenFed is a federal credit union, borrowers with poor or fair credit who get approved won’t pay more than 17.99% APR. PenFed doesn’t publicly list eligibility requirements, but if you complete a prequalification, you’ll be able to see if you’re eligible to borrow a personal loan.

Pros & Cons

Pros Few fees: Along with no origination fee, you won’t get hit with a prepayment penalty if you pay off your loan before the term ends. Open to all: Anyone who opens a savings account with at least $5 can join PenFed. Quick funding: Receive your funds within a day of accepting your loan, depending on the disbursement method selected. Cons Membership required: While you don’t need to be a member to apply, you do need a membership if you want to accept your loan once approved. Limited borrow amount: A PenFed personal loan amount maxes out at $50,000, which might not be enough for some borrowers. Some fees could apply: If you’re five or more days late making your payment, you’ll get hit with a $29 late fee.

PenFed Eligibility Requirements

While you don’t need to be a member to apply for a PenFed personal loan, you’ll need to be a member if you choose to accept your loan after you’ve been approved. PenFed doesn’t list specific eligibility requirements, but commonly requested documents include proof of adequate income, proof that you’re a U.S. citizen or permanent resident and a good credit history.

Discover

Best for Low Rates

4.6

Interest Rate (APR) 7.99% to 24.99% Term Options 36 months to 84 months Loan Size Offered $2.5k to $40k

Discover Overview

Though Discover is normally known for its credit card products, the company also offers personal loans. You can use a Discover loan for medical expenses, debt consolidation, home improvements or almost anything else you need. While Discover doesn’t charge an origination fee, you could receive a late charge if you don’t pay on time. If you run into problems, Discover has a repayment assistance program for borrowers who are experiencing hardships.

Pros & Cons

Pros Prequalification option: You can see if you’re eligible for a Discover loan through prequalification or a soft credit check that won’t hurt your credit score. Fast funding: After getting approved and accepting your loan, you could receive funds within a day. Low interest rates: Discover has some of the lowest interest rates offered among the lenders we reviewed. Cons Short repayment terms: Discover has some of the most limited repayment terms out of all the lenders we evaluated. You’ll have to choose terms between 3 and 7 years. No cosigner option: If you don’t qualify on your own, you can’t get a cosigner to vouch for you and may need to explore other lending options. Comparatively low borrowing amount: The maximum loan amount you can borrow is up to $40,000, which is low compared to some other lenders.

Discover Eligibility Requirements

You’ll need to have a 660 minimum credit score to qualify for a personal loan with Discover. You’ll also need to earn at least $25,000 per year and provide proof of U.S. citizenship or permanent residence.

U.S. Bank

Best for Bank Switchers

4.4

Interest Rate (APR) 8.74% to 24.99% Term Options 12 months to 60 months for non-customers Loan Size Offered $1k to $50k

U.S. Bank Overview

While U.S. Bank isn’t available in every state, its personal loan options might work for you based on how versatile they are. U.S. Bank offers simple loans ranging from $100 to $1,000 for current customers or personal and home improvement loans up to $50,000. However, you might face some limitations if you don’t currently use U.S. Bank. For instance, if you aren’t a customer, your limit goes down to $25,000.

Pros & Cons

Pros Cosigners available: If you don’t qualify for a loan on your own, U.S. Bank allows you to enlist the help of an eligible cosigner. This could be a determining factor if you don’t have great credit. Short terms available: You can pay off your loan in as little as 12 months. Fast payout: For current customers who get approved, you could receive funds within a few hours. Cons Limited options for non-customers: If you aren’t a U.S. Bank customer, you’re limited to $25,000 and you’ll need a better credit score compared to those who currently use U.S. Bank. Not offered everywhere: U.S. Bank does not offer loans in Alabama, Alaska, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Hampshire, New Jersey, New York, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Virginia, West Virginia and Washington, D.C. Could face fees: You could get hit with a late payment fee or returned payment fee, which can add up on top of what you already owe.

U.S. Bank Eligibility Requirements

Non-customers will need a 720 minimum credit score to qualify for a personal loan. You’re not only limited in how much you can borrow — up to $25,000 — but also how long your repayment terms are. Non-customers have a maximum of 60 months to repay their loans, depending on how much they borrow. Current bankers have up to 84 months.

Wells Fargo

Best for In-Person Service

4.3

Interest Rate (APR) 7.49% to 23.24% Term Options 12 months to 84 months Loan Size Offered $3k to $100k

Wells Fargo Overview

Wells Fargo is one of the nation’s largest banks, but personal loans are only available to current Wells Fargo customers. If you’re a current customer, you might qualify for a Wells Fargo loan with a high maximum borrow amount and repayment terms longer than some other lenders we evaluated.

Pros & Cons

Pros Wide range of repayment terms: Depending on how much you borrow, you can pay your loan back in as few as 12 months or as long as 84 months. Large borrowing range: Loan amounts range from $3,000 to $100,000. Change payment due date: If your current due date doesn’t work for you, Wells Fargo allows you to change it. Cons Existing customers only: You can’t get a Wells Fargo personal loan without being a Wells Fargo customer first. Large minimum amount: Not everyone will need Wells Fargo’s minimum borrow amount of $3,000. Not available everywhere: Wells Fargo is currently in 33 states as well as Washington, D.C. This lack of nationwide availability could hurt your chances of borrowing — especially if you’re not a current customer.

Wells Fargo Eligibility Requirements

For current Wells Fargo customers, you’ll need to prove citizenship status, employment and income as well as proof of residence (typically through a utility bill or a similar document). If you aren’t a Wells Fargo customer, you can visit a branch near you to open an account and complete a personal loan application.

What Are Origination Fees?

Origination fees are fees lenders charge to borrowers for the application, processing and originating of your personal loan. They are typically an upfront cost that’s deducted from the total amount you want to borrow. For instance, if you have a 5% origination fee on a $10,000 loan, $500 will be deducted from the amount to be disbursed into your account.

Origination fees range anywhere from 0% to 10%. The total origination fee amount you’re charged depends on your credit score, credit history, how much you want to borrow and other qualifying factors.

When Should I Consider a Personal Loan?

While a personal loan might be a solid option, it’s not always the best choice for everyone. Consider a personal loan if:

You can comfortably afford making payments on your new loan and it fits within your current budget.
You’ve exhausted other ways to cover those costs and needs before borrowing.
You have decent credit to qualify for a loan or a trustworthy cosigner to vouch for you.
You want the predictability of fixed interest rates and making the same payments every month.

You may want to consider alternative options if:

New payments would be difficult to manage or add into your budget.
You don’t qualify for good interest rates or terms.
You don’t want to take out another loan or line of credit, which can temporarily cause your credit score to drop.

Key Considerations When Choosing a Lender

There’s no one-size-fits-all personal loan lender. Carefully weigh your specific needs, your unique financial situation and these other considerations before choosing a lender.

Credit score: Every lender has different credit score requirements, including those that don’t charge origination fees. It’s important to know yours before you complete an application. You can also pull your credit report for free from the three credit bureaus at AnnualCreditReport.com.
Getting prequalified: If potential lenders offer prequalification, take advantage of it. This will let you know if a lender is likely to give you a loan based on information you input yourself.
Loan terms: Look to see what lenders offer you based on repayment terms, interest rates, fees (including origination fees) and other factors. It’ll help you narrow down your options.

Since there are no minimum standards that all lenders need to meet, consider a few different lenders before choosing the one that works best for you.

The Bottom Line

There’s no shortage of personal loan lenders out there, including plenty that don’t charge origination fees. Before you complete an application, look for lenders with the fewest fees, lowest interest rates and repayment terms that are in line with what you can afford.

Frequently Asked Questions About Personal Loans With No Origination Fees

Look for lenders that don’t charge origination fees. Some lenders charge these fees but may target borrowers with bad or fair credit. Other lenders may not charge this fee but require borrowers to have good or excellent credit.

If you get hit with an origination fee, the amount you pay is usually set by your lender based on your credit score, credit history, how much you want to borrow and your repayment terms. Almost every fee a lender charges is negotiable, so it never hurts to ask your potential lender about lowering or waiving origination fees or other fees you might face.

Any time you complete a loan application, your credit score will temporarily take a dip. That’s because hard credit inquiries affect your credit report. But you should see your score rebound after a few months of on-time payments. If you end up closing accounts, your credit utilization could increase, which may also cause your score to drop.

How much you borrow with a personal loan depends on the lender. Some lenders might approve you for loans up to $100,000 while others may only allow up to $25,000. Check which lenders offer loans in the range you need before completing an application.

Methodology: Our System for Ranking the Best Personal Loans

Our team put together a comprehensive 100-point rating system to evaluate personal loan companies based on factors that mean the most to you, the potential borrower. We then gathered scores of data points from across the industry, analyzing disclosures, licensing documents, sample loan agreements, marketing materials and websites for more than two dozen of the most prominent personal loan companies in the United States.

Our rating system takes into account four broad categories. Here’s a brief breakdown of each one.

Affordability (35%): We gauge how expensive each company’s loans are to pay back, taking into account both interest rates and fees. The highest-scoring lenders will have low minimum and maximum annual percentage rates (APRs) and low or no origination fees.
Loan features (35%): This category measures the breadth of loan terms available to prospective customers. The most points go to lenders with a wide range of loan lengths, small minimum loans, large maximum loans, and fast funding.
Customer experience (20%): We review each company’s application, prequalification and customer service policies and procedures to create this category score. The best companies will have simple online applications and multiple ways for customers to get their problems solved.
Company reputation (10%): Our team analyzes each company’s Better Business Bureau file, customer reviews and any outstanding regulatory actions. The most points will go to companies with an A+ rating with the BBB, a track record of addressing customer complaints and no active regulatory orders.

This rating system is intended to give readers a comprehensive overview of each personal loan company. However, our top-rated lenders may not be the best fit for all borrowers. To learn more, you can read our full personal loans methodology.

If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.