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With nearly a decade covering personal finance, Rebecca Safier simplifies loans and other complex financial topics to help people manage their money with confidence. Her work has been featured in Forbes Advisor, Buy Side from WSJ, U.S. News & World Report, Newsweek Vault and other publications. Rebecca has her student loan certification from the National Association of Certified Credit Counselors and her Master of Education in Adolescent Counseling from the Harvard Graduate School of Education.
With nearly a decade covering personal finance, Rebecca Safier simplifies loans and other complex financial topics to help people manage their money with confidence. Her work has been featured in Forbes Advisor, Buy Side from WSJ, U.S. News & World Report, Newsweek Vault and other publications. Rebecca has her student loan certification from the National Association of Certified Credit Counselors and her Master of Education in Adolescent Counseling from the Harvard Graduate School of Education.
Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.
Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.
Lead Editor, Mortgages & Loans
Reviewed
Updated: Apr 22, 2024, 12:32pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
You don’t have to go to a brick-and-mortar bank to take out a personal loan anymore. Many online lenders offer loans with competitive interest rates, fast funding and the option to check your rates without impacting your credit score. Whether you’re looking to consolidate debt, pay for home improvement or cover another big expense, an online personal loan could provide the funding you need.
Why you can trust Forbes Advisor: Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the loans methodology for the ratings below.
Best Online Personal Loan for a Range of Repayment Terms: Avant
BEST OVERALL ONLINE PERSONAL LOAN
SoFi®
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
SoFi is an online lending platform that offers unsecured fixed-rate personal loans in every state. Founded in 2011, SoFi has extended over $50 billion in loans and stands out for allowing high loan amounts and its availability of extended loan terms.
Loans are available from $5,000 to $100,000, making SoFi a great option for those with excellent credit who need to borrow a large amount of money. Loan amounts available may vary by the state you live in. Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (minimum 650) and annual income (at least $45,000). SoFi also lets prospective borrowers submit joint applications—although co-signers are not permitted.
Approved borrowers are rewarded with comparatively low APRs. What’s more, SoFi doesn’t charge origination fees, late fees or prepayment penalties—a stand-out feature because personal loan lenders often charge origination or late payment fees at a minimum.
However, if you’re considering a debt consolidating loan from SoFi, keep in mind that the lender does not offer direct payment to a borrower’s other creditors. This means the loan proceeds will be deposited to your bank account and you’ll have to pay off your other lenders individually. The platform does offer customers a number of other perks and discounts.
Pros & Cons
Prequalification with soft credit check
Funding in as little as one to two days
High loan amounts and lengthy terms
Does not offer direct payment to third-party creditors for debt consolidation
Some applicants report difficult qualification standards
Co-signers are not permitted
Details
Eligibility:
Minimum credit score required: 650
Minimum annual income: $45,000
Co-signers not permitted
Loan uses:
Medical expenses
Credit card consolidation
Home projects
Moving costs
BEST FOR LOW INTEREST RATES
LightStream
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
LightStream offers loans with both a low minimum and maximum interest rate, along with a rate-beat program. LightStream’s unsecured personal loans range from $5,000 to $100,000 with loan amounts varying based on the loan purpose. In addition to offering appealing and flexible terms, LightStream charges no origination, late payment or prepayment fees. The lender also offers a 0.50% rate discount for borrowers who enroll in autopay.
Pros & Cons
No origination, prepayment or late fees
Low, competitive rates
Fast approval and funding
No prequalification process
No due date flexibility
Limitations on use of loan proceeds
Details
Eligibility:
Applicants should have several years of credit history
Minimum credit score: 660
Can’t prequalify
Loan uses:
Large expenses
Finance land, timeshares and tiny homes
Home project
BEST FOR FAST FUNDING & BELOW-AVERAGE CREDIT
LendingPoint
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
LendingPoint is an online lender based in Atlanta that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it does not offer loans in Nevada and West Virginia. Prospective borrowers in eligible states can apply online and benefit from quick funding.
LendingPoint personal loans range from $2,000 to $36,500; Georgia loans have a minimum loan amount of $3,500. Repayment terms range from 24 to 72 months—or two to six years.
There are two main disadvantages to LendingPoint: high maximum APRs and origination fees. While you can typically avoid high APRs by maintaining a high credit score, LendingPoint origination fees (up to 10%) depend on the state you live in.
Pros & Cons
Quick funding
Low credit score requirements
No prepayment penalty
Origination fee up to 10%
Co-signers or joint loans not permitted
Not available in Nevada and West Virginia
Details
Eligibility:
Minimum credit score: 600
Must live in a state other than Nevada or West Virginia
Doesn’t allow co-signers or co-applicants
Loan uses:
Debt consolidation
Home project
Medical expenses
BEST FOR BAD CREDIT
Upgrade
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services. Although maximum APRs are on the high end compared to other online lenders, Upgrade makes loans available to those with poor credit history.
Loans amounts, which range from $1,000 to $50,000. Upgrade has two- to seven-year terms available. Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.
Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.
Pros & Cons
Low minimum credit score requirement
Borrowers can use loans to cover business expenses
Offers direct lender payoff for debt consolidation loans
High APR range
Charges fees for origination, late payment and insufficient funds
Details
Eligibility:
Minimum credit score: 580
No minimum income requirement
Allows co-applicants
Loan uses:
Debt consolidation
Home projects
Large expenses
Business expenses
BEST FOR COMPARING MULTIPLE OFFERS
Universal Credit
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Universal Credit is an online lending platform that offers personal loans between $1,000 to $50,000 through its partners. Repayment terms range from three to seven years.
While Universal Credit makes finding a personal loan accessible even to those with damaged credit, it comes with a few tradeoffs. First, it charges high APRs, well above the most competitive rates seen on our list. Second, Universal Credit charges a 5.25% to 9.99% origination fee on all personal loans. Because this is deducted from your loan proceeds, you’ll need to factor this in when determining your loan amount to ensure you receive the necessary amount after the fact.
Pros & Cons
Flexible qualification requirements
Next-day funding
No prepayment penalty
High APRs
All personal loans charge a 5.25% to 9.99% origination fee
Details
Eligibility:
Minimum credit score: 580
Minimum income requirement: Does not disclose
Doesn’t allow co-signers or co-borrowers
Loan uses:
Debt consolidation
Large expense
Home project
BEST FOR NO INTEREST IF REPAID WITHIN 30 DAYS
Discover
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Discover is an online bank that also offers customers credit cards, retirement solutions and personal loans in all 50 states. As a lending platform, Discover stands out because of its online application and mobile banking tools, well-reviewed customer support team and quick funding.
In general, loans are available from $2,500 to $40,000 and may be issued for between three and seven years. So, while borrowers may get a larger loan from another lender, the repayment terms are fairly flexible. Discover charges a late payment fee and does not offer an autopay discount; however, it does not charge any origination fees or prepayment penalties, making it competitive with other top personal loan providers.
Pros & Cons
Option to pay off creditors directly
No origination fees or prepayment penalties
Directly pays creditors
Charges late fees
Low maximum loan amount
Details
Eligibility:
Minimum credit score: 660
Minimum household income: $25,000
Doesn’t allow co-signers or co-borrowers
Loan uses:
Medical bills
Business expenses
Home renovation
BEST FOR LOANS AS LOW AS $1,000
Upstart
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Upstart has made a mark on the personal loan space because of its artificial intelligence- and machine learning-based approach to borrower qualification. In fact, Upstart estimates that it has been able to approve 27% more borrowers than possible under a traditional lending model. With competitive APRs, Upstart is not a top lender for borrowers who can qualify for more competitive rates. Even so, the platform’s minimum 300 credit score makes it an accessible option to those with fair credit.
Upstart also offers a pretty flexible range of loan options, with amounts ranging from $1,000 to $50,000 so you don’t have to borrow (or pay interest on) more than you really need. And, while Upstart’s loan cap is lower than some lenders—this is likely to be enough for many prospective borrowers.
Even though Upstarts three-, five-, seven-year loan terms are more restrictive than other lenders, it’s likely to be an acceptable tradeoff for applicants who might not be approved in a more traditional lending environment. Plus, it’s available in every state except West Virginia and Iowa, so it’s as widely available as many other top lenders.
Pros & Cons
Accessible to borrowers with fair credit
Offers prequalification with a soft credit check
Ability to choose a custom payment date
Charges an origination fee up to 8% of the loan amount
No secured or co-signer option
Loans only available for three-, five-, seven-year terms
Details
Eligibility:
Minimum credit score: 300
Minimum income requirement: $12,000
Doesn’t allow co-signers or co-borrowers
Loan uses:
Debt consolidation
Medical expenses
Educational expenses
BEST FOR A RANGE OF REPAYMENT TERMS
Avant
3.5
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Minimum Credit Score
580
APR range
If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
9.95% to 35.99%
Loan amounts
Example: A $5,900 loan with an administration fee of 4.75% and an amount financed of $5,619.75, repayable in 36 monthly installments, with an APR of 29.95% would have monthly payments of $250.30. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
9.95% to 35.99%
Example: A $5,900 loan with an administration fee of 4.75% and an amount financed of $5,619.75, repayable in 36 monthly installments, with an APR of 29.95% would have monthly payments of $250.30. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
$2,000 to $35,000
Editor’s Take
Founded in 2012 and based in Chicago, Avant is a consumer lending platform that offers secured and unsecured personal loans through a third-party bank (WebBank). Unsecured loans are available in Washington, D.C. and every state but Hawaii, Iowa, New York, Vermont, West Virginia and Maine. The platform specializes in middle-income borrowers with fair to good credit and only requires a minimum score of 580 to qualify.
Maximum loan amounts are low compared to other lenders, but the low minimum amount and flexible repayment terms (two to five years) make it an accessible option for borrowers. However, as with many loans for subprime borrowers, Avant personal loans come with a price. In addition to charging an administrative fee of up to 4.75% of the loan amount, Avant’s APR range (9.95% to 35.99%) is on the high end for applicants with a good to excellent credit score—and there is no autopay discount. Still, the platform earns top marks for borrowers with less than stellar credit who need quick access to funds.
Compare rates from participating lenders via Forbes Advisor
Tips To Compare Online Personal Loans
Before selecting a personal loan, it’s a good idea to compare multiple lenders. If you’re looking for the best online personal loans, these tips can help you in your search:
Find out what you can use the loan for. Personal loans can be used for almost any purpose, but some lenders might place restrictions. For instance, you may not be allowed to use a personal loan for education or investing.
Learn about a lender’s requirements. Some lenders require a good credit score while others are more flexible. Find out what a lender is looking for in terms of credit score, income, debt-to-income (DTI) ratio and other factors.
Compare loan amounts. If you need a large loan, make sure that a lender can offer the amount you seek. On the other hand, if you need a small loan, don’t go with a lender that will require you to borrow more than you need.
Review interest rates. The best online personal loans come with competitive rates that won’t add too much to your cost of borrowing.
Consider loan fees. Along with interest rates, look for any fees that could make one loan more expensive than another, such as an origination fee, administrative fee or prepayment penalty.
See what repayment terms are available. A shorter term can help you get out of debt faster and save money on interest while a longer term can mean more affordable monthly payments.
Ask about time to fund. Online personal loans can often be approved and disbursed in a matter of days. If you need a loan quickly, find out how long it will take the lender to review your application and deposit your loan.
Look for a co-signer or co-borrower option. Some online lenders let you apply with a cosigner or co-borrower, which can help you qualify if you have weak credit.
Read customer reviews. Consumer review sites like Trustpilot can give you insight into what other borrowers have to say about a lender.
Pro Tip
Read the fine print carefully and be aware of any hidden fees or penalties, such as prepayment fees or origination fees. These can add to the overall cost of the loan and impact your repayment plans.
An online personal loan is an installment loan that you can use for almost any legal purpose. Some common uses of a personal loan include debt consolidation, home renovation, medical bills, car repair, wedding expenses and more.
Many online personal loans are unsecured, meaning they’re not secured by collateral. Instead, a lender relies on your credit score, income and other financial qualifications to determine whether to approve your loan application.
Borrowers with the strongest credit scores tend to get the best rates on a personal loan. If you’re having trouble qualifying on your own, some lenders may let you apply with a co-signer or co-borrower to boost your chances.
Some lenders also offer secured personal loans, which may have more flexible requirements and higher loan amounts. If you fall behind on payments, though, you risk losing the asset you pledged as collateral.
How Do Online Personal Loans Work?
Online personal loans are installment loans, meaning you’ll pay them back on a monthly basis over a set period of time. Most lenders offer repayment terms between one and seven years, but your options will vary.
Depending on the lender, you might be able to borrow a personal loan from $1,000 to $50,000, though some lenders offer up to $100,000. You can expect a fixed interest rate anywhere from around 4% to 36%.
Some personal loans also come with an origination fee of 1% to 8% of the loan amount. Online lenders can often approve personal loans quickly with some offering funds within a day of verifying your information.
You can complete the entire loan application online. While you may have access to customer support over the phone or via web chat, you won’t get to speak with someone face to face.
For prequalification: Many online lenders offer prequalification, while a traditional lender might require that you submit a full application and consent to a hard credit check before you can see your rates. If you’re comfortable applying for a loan online, an online personal loan could offer faster funding and a more streamlined loan application process than a traditional personal loan.
When you need a loan processed more quickly than traditional loans. You might be able to get an online personal loan the same day you apply, whereas a traditional personal loan could take several days or even weeks.
When Getting a Loan In Person is Best
For those that prefer in-person customer service
Existing, loyal bank customers: Some banks offer existing customers interest rate discounts or more flexible borrowing criteria.
Pros and Cons of Online Personal Loans
There are both advantages and potential disadvantages of getting a personal loan from an online lender. Consider these pros and cons before you apply.
Pros of Online Personal Loans:
Fast funding. Many online lenders offer an easy online application and fast approval times. Some can provide your personal loan the same day your application is approved.
Option to prequalify for a loan. Some online lenders make it easy to check your rates through prequalification, which doesn’t negatively impact your credit. Plus, some lenders offer useful online tools, such as personal loan calculators, to help you compare offers.
Competitive interest rates and fees. Since online lenders don’t have to pay for brick-and-mortar locations, they may funnel these savings back to consumers in the forms of low interest rates and few (or no) loan fees.
Large loan amounts. Borrowing limits will vary by lender, but some online lenders offer personal loans up to $100,000 or even $200,000 to qualifying borrowers.
Cons of Online Personal Loans:
No option for in-person banking. While online lenders may offer phone, email or chat support, you won’t have the option of speaking face-to-face with customer service.
May be able to find a better loan elsewhere. If you have a good relationship with your bank or credit union, for example, you may be able to find a more competitive rate on a personal loan than you would with an online lender.
Important to check whether the lender is reputable. While there are several reputable online lenders, borrowers are also at risk of falling prey to online lending scams. Make sure to vet the lender thoroughly before providing any personal information.
How To Find the Best Online Personal Loans
When searching for the best online personal loans, stick with lenders that have a good reputation and offer competitive rates. Make the most of online prequalifications, since these let you compare loan offers without harming your credit score.
Shopping around with multiple lenders can also help you find the best personal loan for you. Compare interest rates, fees and repayment terms to find a loan that works with your budget. You might also look for any special loan features, such as the option to change your payment date.
How To Apply for a Personal Loan Online
If you opt for an online personal loan, you’ll typically complete the application on the lender’s website. If you need assistance, some lenders offer customer service over the phone, email or web chat.
Some loan companies also let you prequalify for a loan online. By prequalifying, you can check your rates with no obligation or impact on your credit score.
To prequalify, most lenders ask for your name, address, contact information, loan purpose and loan amount. If you see an offer you like, you can select it and submit a full application. This application will ask for additional personal and financial details.
You’ll also need to upload verifying documents, such as pay stubs or bank statements. At this point, a lender will run a hard credit check, which could ding your credit score by a few points. As long as you pay your loan back on time, your credit score should recover quickly.
If your application is approved, you’ll receive your loan as a lump sum upfront via check or direct deposit into your bank account.
Methodology
We reviewed 29 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
Loan cost. 35%
Loan details. 20%
Eligibility and accessibility. 20%
Customer experience. 15%
Application process. 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
The easiest online personal loan to get will depend on your qualifications as a borrower. Some lenders have more flexible credit requirements than others, for instance, making it easier to qualify if your credit is not as strong as you’d like it to be. Most online lenders, however, offer a streamlined online application process. Some also make it easy to compare personal loan offers through a quick prequalification application.
Can I get an online personal loan with bad credit?
If you have bad credit, your options for an online personal loan may be limited. However, you might be able to find a lender with flexible credit requirements. Upgrade, for instance, may consider applicants with a score as low as 560. Some lenders also let you apply with a co-signer, which could improve your chances of qualifying. Be wary of any lenders that offer no-credit-check loans, as these are likely payday loans with sky-high interest rates.
How can I get a personal loan immediately online?
Many online lenders offer personal loans within a day or two of receiving your application. If you can’t find how long it takes to fund on a lender’s website, contact customer service to find out how long it takes to fund the loan.
Is an online personal loan safe?
An online personal loan is safe as long as you’re applying with a reputable lender. A reputable lender will review your information and disclose all the costs and terms of a loan before approving it. Legitimate lenders must also be registered with their appropriate state agency.
Can I get a loan online with a co-signer?
Some online lenders let you get a personal loan with a co-signer or co-borrower, though not all do. Research lenders to find one that will allow you to submit a joint application.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
With nearly a decade covering personal finance, Rebecca Safier simplifies loans and other complex financial topics to help people manage their money with confidence. Her work has been featured in Forbes Advisor, Buy Side from WSJ, U.S. News & World Report, Newsweek Vault and other publications. Rebecca has her student loan certification from the National Association of Certified Credit Counselors and her Master of Education in Adolescent Counseling from the Harvard Graduate School of Education.
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