Best Personal Loans of April 2024
Updated April 1, 2024 at 12:20 pm
Personal loans are unique from other forms of borrowing on several fronts, including the fact that you get a fixed interest rate and a fixed monthly payment. Taking out a personal loan also gets you a lump sum of cash to spend upfront, which is different from credit cards and lines of credit you actively use for purchases or borrow against when you need to.
Another benefit is the fact that personal loan rates start much lower than the rates credit cards charge and are often highly competitive with other borrowing options. This means that if you have good or decent credit, you can borrow what you need without overpaying in interest. Read on to learn about the best personal loans available today, which categories individual lenders shine in and how to use these loans to get the funding you need.
Our Methodology Newsweek Vault’s loan experts evaluated multiple data points to help our readers make sense of their borrowing options across student loans and personal loans. To narrow down the best available offers, we weigh the product pros and cons across five core categories, including:
- Application process
- Eligibility requirements
- Interest rates
- Loan amounts (minimum and maximum)
- Repayment flexibility
Our Picks - Best for No Fees: Discover
- Best for Great Rates: LightStream
- Best for Large Loan Amounts: SoFi
- Best for Debt Consolidation: Happy Money
- Best for Bad Credit: Upgrade
- Best for Getting Approved with Imperfect Credit: Upstart
- Best Credit Union Personal Loan: PenFed Credit Union
- Best for Small Loan Amounts: LendingClub
Compare Personal Loans
Our Picks for the Best Personal Loans
Best for No Fees
Discover Personal Loan
on Credible’s website
Why We Chose It
Discover personal loans come with no origination fees or hidden fees as well as competitive rates and terms (currently 7.99% to 24.99% APR) for borrowers who can qualify. Loans are offered in amounts from $2,500 to $40,000, and borrowers can repay over 36 to 84 months for maximum flexibility.
Pros
- Interest rates are highly competitive
- Check your rate with no credit score impact
- No origination fees or hidden fees
Cons
- Loan amounts are lower than some competitors
- Minimum income of $25,000 required for applicants
- Best personal loan rates are for excellent credit
Best for Great Rates
LightStream Personal Loan
on Credible’s website
Why We Chose It
LightStream offers some of the best personal loan rates in the business, which are currently at 7.49% to 25.49% APR (with autopay) for most loan types. These loans also come free of origination fees and hidden fees, which makes them less costly for borrowers.
Pros
- Enjoy competitive rates and no fees
- Borrow $5,000 to $100,000
- Repayment terms up to 144 months available for some loan types
Cons
- LightStream loans are only for consumers with good to excellent credit
- Available loan terms vary by loan purpose
- No option to prequalify online
Best for Large Loan Amounts
SoFi Personal Loan
on Credible’s website
Why We Chose It
SoFi stands out due to its large loan amounts, which can be from $5,000 to $100,000 for nearly any loan purpose. Interest rates range from 8.99% to 25.81% APR (with a 0.25% autopay discount and a 0.25% direct deposit discount). Loans can be repaid over 24 to 84 months.
Pros
- Comes with unemployment protection
- Same-day funding available
- Check your rate with no impact on your credit
Cons
- Higher starting rates than some competitors
- Higher minimum loan amount ($5,000) than some competitors
- Shorter repayment term options than some competitors
Best for Debt Consolidation
Happy Money Personal Loan
on Credible’s website
Why We Chose It
Happy Money offers personal loans for debt consolidation and will send your loan funds directly to other creditors if you prefer. Interest rates range from 11.72% to 24.67% APR, and loan amounts can be from $5,000 to $40,000.
Pros
- Consolidate and pay down high-interest debt
- Check your rate without a credit impact
- Get out of debt in 24 to 60 months
Cons
- Origination fees apply for all loans
- Lower loan limit than some competitors
- Shorter repayment terms
Best for Bad Credit
Upgrade Personal Loan
on Credible’s website
Why We Chose It
Upgrade offers personal loans to applicants with all credit profiles, including loans secured with a car as collateral. Interest rates currently range from 8.49% to 35.99% APR, repayment terms are from 24 to 84 months and loan amounts can be from $1,000 to $50,000.
Pros
- Check your rate with no credit impact
- Joint applications allowed
- Multiple rate discounts available
Cons
- Origination fee of 1.85% to 9.99% applies
- Potential for high interest rates
- Some loans require collateral
Best for Getting Approved With Imperfect Credit
Upstart Personal Loan
on Credible’s website
Why We Chose It
Upstart considers more than your credit score to approve you for a loan—they also look at education and employment. Interest rates range from 6.40% to 35.99% APR, loan amounts can be from $1,000 to $50,000 and borrowers can repay over 36 or 60 months.
Pros
- Check rates with no credit impact
- Get approved based on credit, employment and education level
- Enjoy competitive starting interest rates
Cons
- Only two repayment options
- Potential for high interest rates
- Origination fee of up to 12% applies
Best Credit Union Personal Loan
PenFed Credit Union Personal Loan
Vault Verified
Why We Chose It
PenFed Credit Union offers competitive personal loans with the customer service credit unions are known for. Rates can range from 8.49% to 17.99% APR, and loans can be for up to $50,000 with repayment terms up to 60 months.
Pros
- Comes with low personal loan rates
- No origination fees or hidden fees
- Check your rate with no credit impact
Cons
- Credit union membership required
- Available for good to excellent credit applicants only
Best for Small Loan Amounts
LendingClub Personal Loan
on Credible’s website
Why We Chose It
LendingClub lets borrowers access as little as $1,000 up to $40,000. Interest rates range from 9.57% to 35.99%, and borrowers can repay over 24 to 60 months.
Pros
- Check your rate with no credit impact
- Offers direct creditor payments for debt consolidation
- Joint applications available
Cons
- Potential for high interest rates
- Fewer repayment options than some loans
- Origination fee up to 8% applies
What Is a Personal Loan?
A personal loan is a type of loan you take out when you need cash and want to pay it back over a set repayment schedule. Most personal loans are unsecured, meaning you don’t need collateral like a home or a car to qualify. These loans also come with fixed interest rates and a set monthly payment that does not change over the loan term, which makes them a smart choice for people who want to borrow with predictable terms and no surprises.
Personal loans give consumers a lump sum of cash upfront, which they can use for purposes like debt consolidation, home improvements, wedding expenses and more. Also called “installment loans,” personal loans help build credit when borrowers make their monthly payment on time and ultimately pay back amounts borrowed plus interest and fees.
How Do Personal Loans Work?
Personal loans are offered by banks, credit unions and online lenders, and their terms can vary quite a bit. Loan amounts can range from $1,000 to $100,000 across all lenders, and repayment terms can be from around 24 to 144 months depending on the loan company. That said, some loan companies offer less flexibility in how much you can borrow and how long you have to pay it back, which is one of the many reasons you’ll want to shop around and compare lenders.
Many personal loan providers let applicants “check their rate” online before they apply, which is an excellent way to gauge approval odds without a credit score impact. Note that some personal loan companies only offer funding to applicants with great credit, whereas others extend loans to individuals with bad credit or fair credit. In some cases, lenders will also consider additional factors like the job you have and your college degree.
How To Get a Personal Loan
You can apply for a personal loan with a bank or a credit union down the street if you want to, although online loans make the process much simpler (and faster). Here’s a rundown of the steps you’ll take to get funding with a personal loan.
- Compare lenders and check your rate online. Compare the best personal loans on this page to find a loan company that offers the loan amount and repayment terms you need. From there, see about getting prequalified or checking your rate online, which you can do with no commitment and no hard inquiry on your credit reports.
- Pick a loan company. Decide on a lender based on the rates you’re offered, how much they will let you borrow and available repayment terms. Also look for loan fees that can apply, including origination fees.
- Gather up the paperwork you need. Gather documentation you’ll need, including proof of identity documents like a driver’s license or a passport, your Social Security number (SSN) and proof of your address (e.g. utility bill or auto loan statement with your name on it).
- Apply for the loan. Apply online for the personal loan and plan to share information like your full name, physical address, phone number, SSN, bank account information and more. You may also need to upload proof of identity and proof of where you live during the process.
- Accept the loan funds. If you’re approved for a personal loan, you may be able to get the funds moved to your bank account within a few business days. From there, you’ll make loan payments based on the terms you agreed to when you applied.
Pros and Cons of Personal Loans
Personal loans can get you the money you need when you need it, but they’re far from perfect and definitely not free. Consider the advantages and disadvantages of personal loans before you choose this borrowing option over credit cards or lines of credit.
Pros
- Get a lump sum of cash. Where credit cards only give you a way to make purchases up to your credit limit, getting approved for a personal loan results in cash being deposited in your bank account. This can give you more flexibility when it comes to spending the funds how you want.
- Competitive interest rates. Personal loans can be more affordable than other forms of debt.
- Predictable monthly payments. Personal loans come with a fixed payment and set repayment plan. This means you know exactly how much you’ll pay each month and for how long.
Cons
- Rates can be high for imperfect credit. While personal loan rates for great credit can be exceptional, rates for borrowers with bad credit can be well over 30%. Rates this high can make personal loans very costly over the long run.
- Higher payments than credit cards. Because personal loans make you pay a fixed payment over a set repayment schedule, monthly payments are often higher than credit cards that only require a minimum payment each month.
- Origination fees can apply. Some personal loans have origination fees as high as 8% or even 12%, which makes the amount of cash you actually receive much lower. As an example, borrowing $20,000 with a 10% origination fee means you would only get $18,000 in loan funds.
Who Should Get a Personal Loan?
Because personal loans offer a lump sum of cash upfront instead of a line of credit to borrow against or use for purchases, they’re best for people who know how much they need to borrow and want ultimately flexibility in how they spend. Personal loans are also good for people who need funds for multiple purposes like debt consolidation and financing a large purchase at once.
When you consider the fact that personal loan rates are best for applicants with good to excellent credit, they’re also a great choice for people who have high-interest credit card debt they want to consolidate and pay down over time. Others who should consider a personal loan include people who need to finance a wedding, an adoption, IVF fertility treatment and more.
How To Choose the Best Personal Loan for You
Consider the following factors as you search for and compare the best personal loans.
Eligibility Requirements
Some lenders are pretty upfront about the fact their loans are only for people with good to excellent credit, whereas others open the door to applicants with a broader range of credit profiles. If you’re unsure whether you can qualify with a specific lender, see if you can “check your rate” without a hard inquiry before you apply. This step will give you an idea of if you’re eligible and of the rates you would pay if you are.
Personal Loan Rates
Look for personal loan companies that offer competitive rates and terms based on your credit profile, and remember that your interest rate will play a huge role in loan payments and total loan costs. Ideally, you’ll choose a personal loan with the lowest possible interest rate you can get based on your credit score, income, employment situation and other factors.
Loan Amounts
You also need to find a loan that’s offered in the amount you need—whether you only need a few thousand dollars to pay off an unexpected bill or need $50,000 or more for a home remodeling project. This is one area where lenders really stand out from one another since some offer relatively small loans, and other companies let you borrow up to $100,000.
Repayment Terms
Also consider repayment terms, or how long you would have to pay the money back. Remember that a longer repayment term can help you get a lower monthly payment, whereas companies with shorter repayment term options may leave you with a higher monthly payment than you really want.
Loan Fees
Finally, try to avoid lenders that charge origination fees on personal loans if you can help it. Also watch out for prepayment penalties and other hidden fees.
Frequently Asked Questions
Which Bank Is Easiest To Get a Personal Loan?
Some banks have more flexible approval requirements than others, albeit with higher rates and more loan fees for those who are approved. If your credit isn’t great but you need a personal loan, consider options from lenders like Upgrade, Upstart and OneMain Financial.
How Long Can I Pay Off a Personal Loan?
Repayment terms for personal loans vary by lender. For example, LightStream lets borrowers with some loan purposes pay off their balances for up to 144 months, whereas other lenders offer terms that only last up to 60 months.
How Do Origination Fees Work?
Personal loans with origination fees deduct the amount of the fee from the loan proceeds. If you take out a $10,000 personal loan with an 8% origination fee, for example, the fee would be $800 and you would only get $9,200 in loan funds. From there, you would pay back the $10,000 you agreed to borrow upfront.
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