Partner content: This content was created by a business partner of Dow Jones, independent of the MarketWatch newsroom. Links in this article may result in us earning a commission. Learn More

Best Personal Loans of April 2024

Last Updated: Apr 25, 2024

Personal loans can help you fund a vacation, consolidate debt or anything in between. The best personal loans typically land in your account within a few days, cost you less than credit cards and don’t require you to put any of your property at risk.
Written By: Cheri Read
Written By: Cheri Read

Cheri Read is a former accountant turned professional personal finance writer. As someone who struggled as a single mom for many years, she’s passionate about helping others tame their finances and enjoy their lives. Her work has been featured in a variety of publications over the last decade, including Money Saving Mom and She Owns It. Cheri lives in West Texas and spends most of her free time reading books dedicated to financial freedom or checking out the latest new side hustle.
Edited By: Andrew Dunn
Edited By: Andrew Dunn

Andrew Dunn is a veteran journalist with more than a decade of experience in the business and finance arena. Before joining our team, Andrew was a reporter and editor at North Carolina news organizations including The Charlotte Observer and the StarNews in Wilmington. In those roles, his work was cited numerous times by the North Carolina Press Association and the Society of Business Editors and Writers. Andrew completed the business journalism certificate program from the University of North Carolina at Chapel Hill.

Best Personal Loans

Visit LightStream.com
Our Score 5.0
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 7.49% – 25.49%
Loan Amount $5K – $100K
Min. Credit Score None
Term 2 – 12 years

LightStream is an online lender owned by Truist Bank that has personal loans with some of the best interest rates on the market, plus a guarantee to beat any competitor’s offer. Its personal loans range from $5,000 to $100,000 — a substantially higher loan maximum than many competitors — with same-day funding. Borrowers must have good to excellent credit to qualify, but LightStream does not provide a specific minimum credit score.

What Stands Out

LightStream is an online lender owned by Truist Bank that has personal loans with some of the best interest rates on the market, plus a guarantee to beat any competitor’s offer. Its personal loans range from $5,000 to $100,000 — a substantially higher loan maximum than many competitors — with same-day funding. Borrowers must have good to excellent credit to qualify, but LightStream does not provide a specific minimum credit score.

Shop Rates From multiple lenders on Credible’s comparison platform
Visit SoFi.com
Our Score 4.9
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 8.99% – 29.49%
Loan Amount $5K – $100K
Min. Credit Score 680
Term 2 – 7 years

SoFi excels in customer service. It has several unique programs for “members,” as SoFi dubs its clients, including financial counseling and unemployment protection that can pause your payments and help you look for a new job if you lose yours.

What Stands Out

SoFi excels in customer service. It has several unique programs for “members,” as SoFi dubs its clients, including financial counseling and unemployment protection that can pause your payments and help you look for a new job if you lose yours.

Shop Rates From multiple lenders on Credible’s comparison platform
Visit PenFed.org
Our Score 4.8
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 7.99% – 17.99%
Loan Amount $600 – $50K
Min. Credit Score 580
Term 1 – 5 years

PenFed is a national credit union that allows anyone to join, and a membership will be created for you if you’re approved for a loan. PenFed has the lowest minimum loan amount on this list, making it a great option for somebody needing only a little extra cash.

What Stands Out

PenFed is a national credit union that allows anyone to join, and a membership will be created for you if you’re approved for a loan. PenFed has the lowest minimum loan amount on this list, making it a great option for somebody needing only a little extra cash.

Shop Rates
Visit USBank.com
Our Score 4.4
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 8.74% – 24.99%
Loan Amount $1K – $50K
Min. Credit Score 660
Term 1 – 7 years

U.S. Bank is among the fastest funders we’ve observed for personal loans. Its site boasts virtually instantaneous approval, and if you already have a U.S. Bank checking account you could have your loan money in just a few minutes. Even if you don’t have a U.S. Bank account, you could get your money in as little as one day.

What Stands Out

U.S. Bank is among the fastest funders we’ve observed for personal loans. Its site boasts virtually instantaneous approval, and if you already have a U.S. Bank checking account you could have your loan money in just a few minutes. Even if you don’t have a U.S. Bank account, you could get your money in as little as one day.

Shop Rates
Visit Discover.com
Our Score 4.6
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 7.99% – 24.99%
Loan Amount $2.5K – $40K
Min. Credit Score 660
Term 3 – 7 years

When you apply for a personal loan with Discover, you’ll typically get a decision the same day, as long as you’ve provided all the information requested. Once you’re approved, you’ll likely be funded the next day. The site also gives you some tips for avoiding delays, including following all the instructions, verifying your bank account numbers, and providing correct contact information.

What Stands Out

When you apply for a personal loan with Discover, you’ll typically get a decision the same day, as long as you’ve provided all the information requested. Once you’re approved, you’ll likely be funded the next day. The site also gives you some tips for avoiding delays, including following all the instructions, verifying your bank account numbers, and providing correct contact information.

Shop Rates From multiple lenders on Credible’s comparison platform
Visit Upstart.com
Our Score 4.4
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 7.80% – 35.99%
Loan Amount $1K – $50K
Min. Credit Score 300
Term 3 or 5 years

Upstart prides itself on offering “fair and fast personal loans,” and it delivers. You can get your approval instantly after submitting your online application, and most customers receive their funds within 24 hours.

What Stands Out

Upstart prides itself on offering “fair and fast personal loans,” and it delivers. You can get your approval instantly after submitting your online application, and most customers receive their funds within 24 hours.

Shop Rates From multiple lenders on Credible’s comparison platform
Visit Discover.com
Our Score 4.6
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 7.99% – 24.99%
Loan Amount $2.5K – $40K
Min. Credit Score 660
Term 3 – 7 years

Discover’s minimum credit score for personal loan approval is 660, which falls right under the cutoff in the fair credit category. And because it offers competitive rates, it’s often a top pick for folks who don’t quite meet the qualifications for the best rates at most banks. It’s also available in all 50 states – something that many lenders can’t claim.

What Stands Out

Discover’s minimum credit score for personal loan approval is 660, which falls right under the cutoff in the fair credit category. And because it offers competitive rates, it’s often a top pick for folks who don’t quite meet the qualifications for the best rates at most banks. It’s also available in all 50 states – something that many lenders can’t claim.

Shop Rates From multiple lenders on Credible’s comparison platform
Visit USBank.com
Our Score 4.4
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 8.74% – 24.99%
Loan Amount $1K – $50K
Min. Credit Score 660
Term 1 – 7 years

If you’re a U.S. Bank customer, you may get approved for a personal loan even if you have fair credit. It allows people with lower credit scores to be approved if they have a checking account with the bank already – and lets them borrow more money than non-customers.

What Stands Out

If you’re a U.S. Bank customer, you may get approved for a personal loan even if you have fair credit. It allows people with lower credit scores to be approved if they have a checking account with the bank already – and lets them borrow more money than non-customers.

Shop Rates
Visit Upstart.com
Our Score 4.4
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 7.80% – 35.99%
Loan Amount $1K – $50K
Min. Credit Score 300
Term 3 or 5 years

The minimum credit score to qualify for a personal loan with Upstart is 300. That’s well below what most banks require, allowing a broader range of individuals to get money when they need it. It also offers competitive rates and a wide loan range.

What Stands Out

The minimum credit score to qualify for a personal loan with Upstart is 300. That’s well below what most banks require, allowing a broader range of individuals to get money when they need it. It also offers competitive rates and a wide loan range.

Shop Rates From multiple lenders on Credible’s comparison platform
Visit Upstart.com
Our Score 4.4
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 7.80% – 35.99%
Loan Amount $1K – $50K
Min. Credit Score 300
Term 3 or 5 years

The minimum credit score to qualify for a personal loan with Upstart is 300. That’s well below what most banks require, allowing a broader range of individuals to get money when they need it. It also offers fairly competitive rates and a wide loan range.

What Stands Out

The minimum credit score to qualify for a personal loan with Upstart is 300. That’s well below what most banks require, allowing a broader range of individuals to get money when they need it. It also offers fairly competitive rates and a wide loan range.

Shop Rates From multiple lenders on Credible’s comparison platform
Visit Avant.com
Our Score 4.1
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 9.95% – 35.99%
Loan Amount $2K – $35K
Min. Credit Score 580
Term 1 – 5 years

Avant offers personal loans to people with scores as low as 580, well within reach of people with bad credit. When approved, you can get your loan money as fast as the next day.

Avant Overview

Avant offers personal loans to people with scores as low as 580, well within reach of people with bad credit. When approved, you can get your loan money as fast as the next day.

Shop Rates From multiple lenders on Credible’s comparison platform
Visit OneMainFinancial.com
Our Score 3.5
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 18.00% – 35.99%
Loan Amount $1.5K – $20K
Min. Credit Score None
Term 2 – 5 years

OneMain Financial is one of the few lenders with no minimum credit score requirement, and its loans are geared toward people with bad credit. While its loan terms aren’t as generous as those for people with good credit, OneMain Financial is head-and-shoulders above alternative like payday loans. Plus, OneMain Financial is one of the few lenders on this list that offers physical brick-and-mortar branches.

What Stands Out

OneMain Financial is one of the few lenders with no minimum credit score requirement, and its loans are geared toward people with bad credit. While its loan terms aren’t as generous as those for people with good credit, OneMain Financial is head-and-shoulders above alternative like payday loans. Plus, OneMain Financial is one of the few lenders on this list that offers physical brick-and-mortar branches.

Shop Rates From multiple lenders on Credible’s comparison platform
Visit PenFed.org
Our Score 4.8
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 7.99% – 17.99%
Loan Amount $600 – $50K
Min. Credit Score 580
Term 1 – 5 years

PenFed offers the smallest loan amount on our list at $600. It also offers loan terms as short as one year. This makes it ideal for borrowers who just need a small amount of cash and don’t want to make payments for an extended period of time.

What Stands Out

PenFed offers the smallest loan amount on our list at $600. It also offers loan terms as short as one year. This makes it ideal for borrowers who just need a small amount of cash and don’t want to make payments for an extended period of time.

Shop Rates
Visit USBank.com
Our Score 4.4
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 8.74% – 24.99%
Loan Amount $1K – $50K
Min. Credit Score 660
Term 1 – 7 years

One year terms are offered by very few lenders, but U.S. Bank is one of them. It also offers a small minimum loan amount of $1,000. It’s also one of the fastest funders on our list, giving some customers their money in just a few hours.

What Stands Out

One year terms are offered by very few lenders, but U.S. Bank is one of them. It also offers a small minimum loan amount of $1,000. It’s also one of the fastest funders on our list, giving some customers their money in just a few hours.

Shop Rates
Visit WellsFargo.com
Our Score 4.3
APR Range
Annual Percentage Rate (APR) represents the full cost of a loan, both interest and fees.
 7.49% – 23.24%
Loan Amount $3K – $100K
Min. Credit Score None
Term 1 – 7 years

Another lender that has terms as short as one year, Wells Fargo makes the list for a top short-term lender. Since it has a physical presence in the most states, it’s easy to get quality in-person customer service.

What Stands Out

Another lender that has terms as short as one year, Wells Fargo makes the list for a top short-term lender. Since it has a physical presence in the most states, it’s easy to get quality in-person customer service.

Shop Rates

Our Key Takeaways

  • The best personal loans are from LightStream, SoFi, PenFed, Discover, Upstart, U.S. Bank, Upgrade and Wells Fargo. They all have low interest rates, flexible loan terms and notable customer service.
  • The best personal loan lenders don’t charge origination fees and offer discounts for automatic payments.
  • When you’re shopping, get prequalified with a few different lenders and look for the offer with the lowest APR and fewest fees.

Best Personal Loans From Top Lenders

Our Top Pick Visit LightStream.com
Pros
Best interest rates guaranteed: LightStream’s Rate Beat program guarantees an unsecured personal loan rate 0.1 percentage points less than any competitor’s approved loan offer.
Longer loan terms: Loan terms are from two to 12 years, the widest range on our list.
Same-day funding: Receive your funds the same day you’re approved in many cases.
Discounts: Autopay discount of 0.50% and no prepayment penalties or origination fees.
Cons
Higher credit score needed to qualify: You need several years of credit history to qualify and a good to excellent credit score.
No preapproval: LightStream doesn’t offer preapproval. You have to apply to see the interest rate you qualify for.

LightStream has a best-rate guarantee, offering you a rate 0.1 percentage points lower than any other competitor you’ve been approved with. It also has a loan experience guarantee, where the company will pay you $100 if you’re not completely satisfied with your closing experience. 

LightStream also has some of the best discounts on this list, especially an autopay discount of 0.50%. And in partnership with American Forests, LightStream plants a tree for every loan it makes.

To get a LightStream loan, you must have:

  • Credit score of 660 or higher
  • Sufficient income to make payments
  • Good payment history with few delinquent payments
Our Score 5.0
APR Range 7.49% to 25.49%
Term Options 2 to 12 years
Loans Offerred $5K to $100K
Read our comprehensive review Shop Rates From multiple lenders on Credible’s comparison platform
Best Customer Experience Visit SoFi.com
Pros
Large loan range: Loan amounts from $5,000 up to $100,000.
Fast money: You can get funds the same day your application is approved.
Discounts: SoFi offers a 0.25% discount for autopay, a 0.25% discount for direct deposit and no late fees.
Unemployment protection: If you lose your job and it’s not your fault, SoFi may modify the terms of your loan to delay payments and provide job placement assistance.
Cons
Origination fees: While you can opt for a loan without origination fees, to get the best rates you’ll need to accept origination fees of up to 6%, which is taken out of your loan proceeds.
Limited loan use: Loans can’t be used for education or business expenses.

SoFi is very borrower-friendly: The lender will show you the rates you qualify for with no hit to your credit, give you discounts for autopay and direct deposit and fund your loan the same day you sign  in most cases. SoFi also offers unemployment protection, so if you’re laid off you can potentially lower your payments and receive help finding your next gig. 

Borrowers who miss their due date won’t be charged a late fee — a huge differentiator between SoFi and competitors like PenFed and Discover. And if you’re looking for a lender with excellent customer service, SoFi may be your best bet. It has 4.6 out of 5 stars on Trustpilot with over 7,000 reviews.

To get a SoFi loan, you must have:

  • 680 credit score or higher
  • Gainfully employment
  • Reached the age of majority for your state (usually 18)
  • Residence in one of the 29 states (or Washington D.C.) that SoFi serves
Our Score 4.9
APR Range 8.99% to 29.49%
Term Options 2 to 7 years
Loans Offerred $5K to $100K
Read our comprehensive review Shop Rates From multiple lenders on Credible’s comparison platform
Best for Small Loans
Pros
Smallest loan: PenFed offers a minimum loan of just $600.
Preapproval: See your rates with no impact on your credit score.
No fees: There are no origination fees or prepayment penalties.
Co-borrowers welcome: If you don’t think you can qualify for a loan by yourself, add a co-borrower to your application.
Cons
Shorter repayment terms: The maximum repayment term is five years – less than any other lenders on our list.
No discounts: No automatic payment or direct deposit discounts are given.

If you don’t need to borrow a large amount, PenFed may be a good option. Its minimum personal loan is only $600, while its maximum is $50,000. The maximum loan repayment term of five years is a tighter timeframe than some other lenders.

While other lenders only require you to apply for a loan, PenFed requires applicants to become credit union members to be eligible for a loan. But membership is available to anyone, and if you’re approved for a loan, PenFed will automatically create your membership.

To get a PenFed loan, you must have:

  • Verifiable income
  • Ability to make payments
  • Solid employment history
Our Score 4.8
APR Range 7.99% to 17.99%
Term Options 1 to 5 years
Loans Offerred $600 to $50K
Visit PenFed.org Shop Rates
Best for Low Rates Visit Discover.com
Pros
Monthly credit score: Discover is the only lender on this list to provide access to free FICO credit score updates.
No upfront fees: There are no origination fees or prepayment penalties, although there is a $39 late payment fee.
Fast funding: Get your money as early as the next business day.
Cons
Smaller loan range: The minimum amount you can borrow is a relatively high $2,500 and the maximum amount you can borrow is only $40,000.
No discounts: Discover is one of only three lenders on our list that doesn’t offer an automatic payment discount.
Minimum income requirement: You must earn at least $25,000 per year in household income to qualify for a loan.

Discover’s starting interest rate is one of the lowest on this list. It doesn’t charge origination fees and has a solid range of repayment terms from three to seven years. 

If you’re using the loan to consolidate high-interest debt, Discover can streamline the process by sending money directly to your creditors to pay off your accounts. However, an interesting restriction for Discover personal loans is that you can’t use the money to pay off a Discover credit card.

To get a Discover loan, you must have:

  • 660 credit score or higher
  • Household income of at least $25,000
  • 18 years of age or older
Our Score 4.6
APR Range 7.99% to 24.99%
Term Options 3 to 7 years
Loans Offerred $2.5K to $40K
Read our comprehensive review Shop Rates From multiple lenders on Credible’s comparison platform
Best for Bad Credit
Pros
Bad credit OK: You can have a credit score of 300 or above and still qualify for a loan.
More options: This lending marketplace will match you with several banks or credit unions.
Borrow more with bad credit: Generous loan amount range compared to other bad-credit lenders — between $1,000 and $50,000.
Cons
High interest: Higher maximum rates than other lenders — up to 35.99% APR.
Fees: Origination fees are up to 12%, the highest on our list.
Too many calls: After applying, you may be inundated with calls, texts and emails from different lenders.

As a lending marketplace, you can find loans with several lenders through Upstart. While this is good for comparing options, it may result in texts, emails and phone calls from multiple lenders.

Upstart is open to lending to borrowers with credit scores as low as 300 or with no credit history at all. But even people with higher credit scores often find that the APRs they’re offered are competitive with other lenders on our list.

To get an Upstart loan, you must have:

  • 300 credit score or higher
  • Reached 18 years of age
  • 45% DTI or lower (debt-to-income refers to your total monthly debt payments divided by your earnings)
  • No bankruptcies or negative public records in last 12 months
  • No current delinquencies on credit report
  • Fewer than six inquiries in the last six months
Our Score 4.4
APR Range 7.80% to 35.99%
Term Options 3 or 5 years
Loans Offerred $1K to $50K
Visit Upstart.com Shop Rates From multiple lenders on Credible’s comparison platform
Best for Loyal Customers
Pros
No required fees: U.S. Bank doesn’t charge origination fees and there are no prepayment penalties.
Fast funding: You can get your funds within hours if you’re already a U.S. Bank customer, making U.S. Bank among the fastest funders on our list.
Cons
Low limits for non-customers: The maximum you can borrow as a non-U.S. Bank customer is $25,000.
Excellent credit needed: As a non-customer, you’ll only be able to qualify for a loan with excellent credit (above 780) and a low debt-to-income (DTI) ratio. DTI measures your monthly debt obligations against your monthly income.

One of the most notable aspects of U.S. Bank is you can get your money within hours — as long as you’re a current U.S. Bank customer. If you need money quickly, U.S. Bank may be a no-brainer.

U.S. Bank rewards loyalty. If you’re a current U.S. Bank customer, you may be able to qualify for a higher loan amount than non-customers — $50,000 compared to $25,000. Plus, you’ll be able to get a 0.5% discount when setting up automatic payments from a U.S. Bank checking or savings account. You’ll get the best rates with a loan of $10,000 or higher combined with a credit score of 800 and automatic payments.

  • 660 credit score
  • Verifiable income
  • Ability to make payments
Our Score 4.4
APR Range 8.74% to 24.99%
Term Options 1 to 7 years
Loans Offerred $1K to $50K
Read our comprehensive review Shop Rates
Best Discounts Visit Upgrade.com
Pros
Generous repayment terms: Take between two and seven years to pay off your loan.
Fast approval and funding: Get preapproved with no hit to your credit in minutes. When you’re approved, funds can be deposited into your account within one business day.
Unsecured and secured options: If you can’t qualify for an unsecured loan, Upgrade also offers loans secured by your vehicle as an option.
Credit health offering: Borrowers have access to Upgrade’s no-cost credit monitoring and education program called Credit Health.
Cons
High origination fees: Loans come with origination fees of 1.85% to 9.99%, and all loans are charged a fee.
Marketing calls: You may get a lot of calls or texts from lenders if you consent to be contacted.
Not available everywhere: Upgrade isn’t available in Iowa, West Virginia or the District of Columbia.

Borrowers who use Upgrade can get a discount if they directly pay off their debt with their personal loan or sign up for automatic payments. Unlike most other loan companies on this list, Upgrade is not a direct lender. It’s an online marketplace connecting borrowers to potential banks and credit unions, like Upstart. 

But don’t be confused by the similar names — while Upgrade is designed primarily for borrowers with poor credit, like Upstart, it has longer terms, discounts and educational resources that make it worth exploring.

  • 620 credit score
  • Verifiable income
  • U.S. citizen, permanent resident or valid visa
  • Verifiable bank account
Our Score 4.3
APR Range 8.49% to 35.99%
Term Options 2 to 7 years
Loans Offerred $1K to $50K
Read our comprehensive review Shop Rates From multiple lenders on Credible’s comparison platform
Best for In-Person Service
Pros
No fees: Wells Fargo doesn’t charge origination fees or prepayment penalties.
To the max: The maximum loan amount of $100,000 is the highest on our list.
Nationwide reach: Wells Fargo has the most physical branches of any recommended lender.
Cons
Limited autopay: You’re only allowed a discount when paying from a Wells Fargo bank account.
Less flexible terms: Your term length depends on your loan amount.
Slower payout: Getting your funds takes one to three business days, which is slower than most of our lenders.

If you want a personal loan from a bank you can visit in person, Wells Fargo may be your best option with branch locations in 36 states and Washington D.C. The bank has the most physical locations of any lender on this list — an ideal scenario if you’re looking for a more personal customer service experience.

While you can avoid many common personal loan fees, you’ll only get access to the autopay discount if you’re a Wells Fargo customer. Compared to other lenders, it may take longer to get your money — about one to three business days. Interest rates range from a low 7.49% to 23.24% with a 0.25% relationship discount included.

  • Existing Wells Fargo customer (for at least a year)
  • Verifiable income
  • Verifiable address
  • Ability to make payments
Our Score 4.3
APR Range 7.49% to 23.24%
Term Options 1 to 7 years
Loans Offerred $3K to $100K
Visit WellsFargo.com Shop Rates

Personal Loan Interest Rates

Interest rate is a primary factor to consider when choosing a personal loan. This is the amount of money you’ll have to pay the lender in addition to the amount you borrow. The lower the interest rate, the less money you’re paying to borrow from the lender.

Personal loans typically have higher interest rates than other types of loans because they are usually unsecured. In other words, there’s no collateral backing the loan, which makes loaning money riskier for the lender. 

Personal loan interest rates edged higher in 2023 as a result of Federal Reserve interest rate hikes driven by inflation. The Fed raises rates during periods of high inflation in an attempt to slow borrowing and spending, thus bringing prices down.

Matt Schulz

Chief Credit Industry Analyst at LendingTree

“I don’t think anyone should expect lower personal loan rates anytime soon. It’s looking less and less likely that the Fed will lower rates in either of the next few meetings. Meanwhile, lenders keep tightening personal loan requirements, and with inflation remaining stubborn, debt rising and delinquencies continuing to grow, that doesn’t seem likely to change either. Add it all up, and borrowers should expect interest rates to remain at or around their current levels for at least the next few months.”

Kyle Enright

President of Achieve Lending

“Most personal loans will have terms of 24 to 60 months, with strict payment schedules. This helps make sure you actually pay off the debt, versus keep making minimum payments like you could on a credit card.”

How to Apply for a Personal Loan

Personal loan applications are relatively simple, but it’s good to be prepared on what to expect and how to increase your odds of approval. It’s best to check your eligibility and gather personal documents before comparing offers across lenders.

Check Your Eligibility

You can check your eligibility for a personal loan by getting your credit report and score and prequalifying on lender websites. For more details on personal loan requirements, check out our guide here.

Gather Documents

Once you’ve checked your eligibility, it’s time to gather the necessary documents for your application. The documents you need for a personal loan application will often vary by lender, but proof of income, identity and address are standard.

Compare Offers

While a loan’s interest rate is an important factor, it’s not the only one. It’s also wise to consider repayment terms, fees and the lender’s reputation.

Personal Loan Calculator

Our personal loan calculator helps estimate your monthly payment and interest rate. Using the tool can be a helpful way to gauge whether you can comfortably afford to take out a new loan.

CALCULATE YOUR MONTHLY PAYMENTEnter your loan amount, loan term and interest rate to see your estimated monthly payments and total interest you'll pay.
LOAN INFORMATION
$10,000
$1,000$100,000
5 years
1 years9 years
8%
3%35%
Monthly Payment$202.76
PrincipalInterest
Total Principal Paid$10,000
Total Interest Paid$2,166
Total Paid$12,166
Show amortization schedule
Start Date
Estimated Payoff DateSeptember 6, 2028
Amortization schedule

Pros and Cons of Personal Loans

Pros
  • Speed: Many personal loans can often be applied for and acquired quickly.
  • Usage: They can usually be used for just about anything from medical emergencies to home improvement projects. Be careful as some lenders have limitations on what the money may be used for.
  • Fixed rates: Personal loans are usually predictable, offering fixed interest rates and monthly payments.
Cons
  • Credit crunch: If you have poor credit, personal loans can come with higher interest rates, increasing the overall repayment.
  • Fees: Personal loans often come with other charges, like prepayment penalties, which can add up.
  • Temptation to overspend: Once you take out a personal loan, you can use the money however you wish. You’ll need discipline to avoid spending unwisely, or to avoid racking up more credit card debt after you use a personal loan to pay off your accounts.

Alternatives to Personal Loans

If you’re wary about the higher APR of an unsecured personal loan, you might consider a secured personal loan or one of the following options.

If you own your home, consider a home equity line of credit (HELOC) or a home equity loan. While the application process is similar for both, a HELOC has a variable interest rate that changes with the market and allows you to borrow against your credit as you need, like with a credit card, and then pay it back over time. A home equity loan comes with a fixed interest rate and a lump-sum payout with a set repayment period, so you’ll pay the same amount back each month and your interest rate won’t change. While interest rates for these loans tend to be better than personal loans, the downside is that because the repayment period is so long, you’ll pay more in interest. In both cases, you use your home as collateral, so there is a risk of foreclosure if you cannot keep up with your payments.

If you need money to buy a specific item, like a new stove or a dining room table, consider a store credit card. Sometimes, these cards will have special financing offers that allow you to pay off the item at 0% APR for a set amount of time. Be careful, though: interest will accrue from the start of your repayment period and if you don’t pay the entire amount in the promotional window, you’ll be charged the entire amount of accrued interest. Calculate exactly how much you need to pay back each month to pay off your principal before the special financing period ends; often, once this period ends, the interest rate will be extremely high.

While credit card interest rates are generally higher than personal loan rates, they frequently offer teaser rates that could get you through a pinch. If you anticipate being able to pay off the principal you borrowed before the 0% introductory period ends, usually within 12 to 18 months, a credit card might be a better option. You need good to excellent credit to qualify for these cards. Again, calculate carefully to make sure you’ll pay off your credit card debt before the 0% interest rate ends.

Kyle Enright, Personal Loans expert at Achieve Lending, recommends talking to a lender who can evaluate your personal financial situation and will make the best recommendation for you, even if that’s not a personal loan. He recommends independent lenders, especially if you have a unique financial situation. “It can be very helpful to find a lender who will discuss fees openly, and work with a borrower to calculate overall interest savings,” Enright said. “Plus, independent lenders can use different criteria than a traditional bank or credit union in their decisions.”.

Common Personal Loan Uses

Personal loans are typically unrestricted, meaning borrowers can use them for most any legal purpose, however, some uses are more common than others. Two of the most popular personal loan uses are debt consolidation and home improvements.

In a 2023 survey by the MarketWatch Guides team, we found that more than two in five individuals said their primary reason for taking out a personal loan was for one of those two reasons. Our average loan amount for survey respondents with good credit (670 to 739) was roughly $17,000, which would be a monthly payment of $581.02 with a 36-month repayment term and 14% APR.

Debt Consolidation
21.2%
Debt consolidation is the most common reason individuals take out personal loans. These can be beneficial as you can often receive a lower interest rate on a debt consolidation loan than the average rate of your other loans or credit cards – saving you money over the long term.
Home Improvements
20.1%
More than 20% of people in our survey took out a personal loan for a home renovation or remodel. While a home equity loan or home equity line of credit often makes more sense for home renovations, a personal loan involves less paperwork and you can get your funds faster.
Car Financing or Repairs
18.8%
Our survey showed that 18.8% of people took out personal loans for car financing or repairs. Since a personal loan can be used for anything, using it to finance a car isn’t unheard of, especially if you can get a better rate than with an auto loan. And using it for auto repairs may be necessary in some emergencies.
Other
16.3%
Only 2.1% of respondents chose “other” as their reason for taking out a personal loan. In certain emergencies, a personal loan may be a good option. They’re often less expensive than credit cards and can make sense if you’re in a position to get a decent interest rate.
Everyday Bills
14.5%
According to the MarketWatch Guides survey, about 14% of people use personal loans to cover everyday expenses. This may not be the best financial strategy since you’ll have an added interest expense on top of your current bills, but it may be necessary. If you’re struggling to make ends meet, a personal loan could be cheaper than a credit card, depending on your credit situation.
Medical Expenses
9.1%
Nearly one in 10 of people in our survey used a personal loan for medical expenses. If you need a loan to cover dental work, surgery or a hospital stay, a personal loan can offer lower rates than a credit card.
21.2% Debt Consolidation
20.1% Home Improvements
18.8% Car Financing or Repairs
16.3% Other
14.5% Everyday Bills
9.1% Medical Expenses
Debt Consolidation

Debt consolidation is the most common reason individuals take out personal loans. These can be beneficial as you can often receive a lower interest rate on a debt consolidation loan than the average rate of your other loans or credit cards – saving you money over the long term.

Home Improvements

More than 20% of people in our survey took out a personal loan for a home renovation or remodel. While a home equity loan or home equity line of credit often makes more sense for home renovations, a personal loan involves less paperwork and you can get your funds faster.

Car Financing or Repairs

Our survey showed that 18.8% of people took out personal loans for car financing or repairs. Since a personal loan can be used for anything, using it to finance a car isn’t unheard of, especially if you can get a better rate than with an auto loan. And using it for auto repairs may be necessary in some emergencies.

Other

Only 2.1% of respondents chose “other” as their reason for taking out a personal loan. In certain emergencies, a personal loan may be a good option. They’re often less expensive than credit cards and can make sense if you’re in a position to get a decent interest rate.

Everyday Bills

According to the MarketWatch Guides survey, about 14% of people use personal loans to cover everyday expenses. This may not be the best financial strategy since you’ll have an added interest expense on top of your current bills, but it may be necessary. If you’re struggling to make ends meet, a personal loan could be cheaper than a credit card, depending on your credit situation.

Medical Expenses

Nearly one in 10 of people in our survey used a personal loan for medical expenses. If you need a loan to cover dental work, surgery or a hospital stay, a personal loan can offer lower rates than a credit card.

Key Considerations When Choosing a Lender

What is the annual percentage rate (APR)?

APR is the total amount of interest you pay on a balance. It’s the interest rate plus fees. Our recommended lenders offer an APR of 7.49% to 35.99%. Generally, the higher your credit score, the better rate you’ll qualify for.

What are the fees?

Some lenders charge you origination fees. These fees are taken out of the money you borrow, reducing the total sum you get. The most competitive lenders don’t charge origination fees.

What are the eligibility requirements?

For an unsecured personal loan (a loan where you don’t put up collateral), you generally need at least a 640 credit score and less than a 50% DTI ratio. You need to show a government ID, proof of residence and your last paystub.

Can I choose my repayment terms?

Our recommended lenders have repayment terms of up to 12 years. Most lenders offer repayments from one year to seven years, but how each lender decides what terms are available are unique to each. You usually can choose from a range of repayment terms.

Can I defer my loans if I lose my job?

Usually, you’re not able to defer your loans if you lose your job. However, your lender may be willing to work with you if you’re likely to be able to get a new job quickly. SoFi even has a program specifically to help people who lose their jobs, offering to pause your payments and help you find new employment.

Is there an autopay discount?

Many lenders on our list do offer discounts for autopay. These typically range from 0.25% to 0.50%. LightStream, SoFi, Upgrade, Wells Fargo, U.S. Bank and Universal Credit all offer autopay discounts.

The Bottom Line

By comparing multiple lenders, you’re more likely to find the best personal loan for your unique needs and financial situation. Gather quotes from at least three lenders and look for ones that provide a rate range without requiring a full credit check.

Common Questions About Personal Loans

To qualify for a personal loan with most lenders, you should have a credit score in the 600 or higher range. But if you want the lowest possible interest rates, you’ll need a score of 670 or higher. Also, having a steady employment history and income source may be considered along with your credit score in determining your rate.

Most big banks, whether online-only or traditional brick-and-mortar, have an easy process to apply for and receive a personal loan. If you are already with a certain financial institution, you may receive discounts for also getting a loan through them. As with any personal finance decision, researching your options is crucial to picking the best one for you. On our list above, there is a mix of both traditional and online-only lenders.

If you have a good to excellent credit score and a solid DTI ratio, it should not be difficult to secure a personal loan. If you have poor credit, it can be more difficult, and your rates will be higher, but it is not impossible. It’s best to shop around for options that best fit your circumstances.

Our Methodology

Our team compared 28 of the most prominent lenders in the US, analyzing disclosures, licensing documents, sample loan agreements, and websites. We ranked lenders across four categories: affordability, loan features, customer experience and company reputation. To learn more, read our full personal loans methodology.