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Here’s a breakdown of how we reviewed and rated top personal loan providersCompare the Best Online Personal Loans
More Details on the Best Online Personal Loans
The best online personal loans offer straightforward online applications, competitive interest rates, minimal fees and excellent customer service. The following providers offer some of the best personal loans.
LightStream Overview
LightStream is an online-only lender offering competitive interest rates for unsecured loans between $5,000 and $100,000 with APRs of 6.99% to 25.49%. Loan terms range from 24 to 84 (or up to 144 months for home improvement loans), the longest repayment terms offered. But you must have good credit to excellent credit (at least 670) to qualify, so it might not be a realistic fit for everyone.
Pros and Cons of LightStream
Why LightStream’s Online Application Process Stands Out
Apply for a personal loan on LightStream’s website and in most cases, receive a decision within the same business day. You’ll get 0.50% off your quoted rate if you set up AutoPay during your application. If approved, you will need a valid Mastercard or Visa credit card for verification purposes, although you won’t be charged.
After you’re approved, you can e-sign your paperwork. Once you set up your bank account to receive the money, the loan process is complete. If you complete your part before 2:30 p.m., you can be funded the same day.Also, LightStream is the only lender we recommend that guarantees its “loan experience.” If you’re not satisfied with the application process, they’ll give you $100 after filling out a questionnaire.
SoFi Overview
SoFi is an online lender with a straightforward application process, same-day funding and no required fees. Borrow from $5,000 to $100,000 with terms from two to seven years. SoFi offers interest rates from 8.99% to 26.31% APR along with some discounts.
On the customer service front, SoFi also offers career coaching, free investment management, and social events for its members. It’s also the only lender on this list to offer unemployment protection, which can pause your payments if you lose your job. SoFi will even help you find new employment.
Pros and Cons of SoFi
Why SoFi’s Online Application Stands Out
You can check your rates online with SoFi in as quickly as 60 seconds with no effect on your credit score. If you like your rate, you can continue your application. SoFi’s loan application is easy to use and you’ll get an approval fast, usually within the same day. If you e-sign your paperwork and indicate where your funds should be sent before 2:30 p.m., you’ll likely be funded the same day.
PenFed Overview
PenFed is a credit union with options for online personal loans. The credit union offers loan amounts that range from just $600 to $50,000, and interest rates are lower than what you can find from most other lenders with an APR range of 7.99% to 17.99%. This maximum annual percentage rate is lower than that of any other lender on the list, which can help you save thousands of dollars throughout your loan term.
Pros and Cons of PenFed
Why PenFed’s Online Application Stands Out
PenFed has set up their application to be as easy as possible. Check your rate online without affecting your credit score, and receive multiple loan offers. Choose the one you want, then PenFed will automatically create a membership into the credit union for you, so you’ll have access to all the benefits of membership into the country’s second-largest credit union. PenFed offers approval as fast as the same day, and after you sign your loan, you can get funded in 1-2 business days.
Discover Overview
Online personal loans from Discover offer competitive interest rates. The lowest available APR, 7.99%, is one of the lowest on the list. Personal loans range from $2,500 to $40,000, with APRs up to 24.99%, and terms last three to seven years for additional flexibility. Discover offers free perks for customers, including credit monitoring and online privacy protection – which can give you assistance in removing your personal information from up to 10 websites at no additional cost. It’s a helpful offer, especially from an online lender.
Pros and Cons of Discover
Why Discover’s Online Application Stands Out
Some online personal loan lenders only work with borrowers in select states, but Discover’s online personal loans are available nationwide. If you’re struggling to find providers in your state, Discover might be a feasible option.
First, check your rate with no impact on your credit score. If you like your rate, continue your online application, decide how much you’d like to borrow and your terms, and find out if you’re approved quickly, usually the same day. Once you’re approved, use your mobile phone or computer to accept your loan. Sign your loan documents and set up your funding and you’re all set. Because Discover is fully online, they have a robust customer service department with U.S.-based agents to help with any questions you might have.
Upstart Overview
Upstart connects borrowers with banks and other lenders as an online lending platform. Their range of interest rates is the widest on our list, from 7.8% to 35.99% APR*. Personal loan amounts range from $1,000 to $50,000**, and terms are for three or five years. There aren’t any penalties if you pay off your balance early, but you might have to pay an origination fee.
Upstart considers education*** and work history for loan approval and lends to people with credit scores as low as 300, so you might have a better chance of qualifying for a loan with Upstart over other companies if you have subpar credit.
Pros and Cons of Upstart
Why Upstart’s Online Application Stands Out
Upstart (along with Upgrade) is unique among our recommended lenders as it does not directly fund loans, but instead offers a lending marketplace where you receive offers from several lenders for a personal loan and you can choose your favorite. Check your rate within five minutes with no impact on your credit score****.
To apply, you’ll provide information about your education, work experience and how the loan will be used. Most applications are approved within the same day and once you sign and accept your loan terms, funding can happen within 24 hours*****.
U.S. Bank Overview
U.S. Bank offers online personal loans, but the loans are best suited for existing customers. Non-customers must have a higher credit score to qualify and will receive access to lower loan amounts and shorter terms. On the other hand, customers can borrow up to $50,000, and terms range from 12 to 84 months with interest rates ranging from 8.24% to 24.99% APR.
Pros and Cons of U.S. Bank
Why U.S. Bank’s Online Application Stands Out
If you’re a customer, U.S. Bank offers the fastest funding on our list. U.S. Bank’s online application takes just a few minutes to complete. You can apply with a co-borrower, and you’ll need your Social Security number, address and employment details. Once you’re approved, which can be as fast as a few minutes, you can benefit from funding within a few hours.
Upgrade Overview
Online personal loans from Upgrade have two- to seven-year repayment terms, and you can borrow from $1,000 to $50,000. APRs are high, at 8.49% to 35.99%, but there are extensive rate discounts. Origination fees of 1.85% to 9.99%, which are taken directly out of your loan proceeds, will unfortunately offset your savings. Upgrade offers discounts for autopay, direct pay for debt consolidation loans and opening a new account. They also have a discount for active-duty military
Pros and Cons of Upgrade
Why Upgrade’s Online Application Stands Out
Upgrade has an online platform where it presents multiple offers from its lending partners, the only lender apart from Upstart to present offers from multiple lending institutions. You can check your rate with no impact on your credit score, then choose one of the offers you’ve qualified for. Fill out an application online, accept a loan offer and designate where you want funds to be sent. Funds will be deposited within one business day.
*APR accurate as of April 26, 2024.
Online Versus Brick-and-Mortar Lenders
Can You Trust an Online Lender?
Online personal loan lenders don’t always have brick-and-mortar branches, so when you’re choosing a lender with a fully online presence, you want to make sure they’re trustworthy.
Todd Schwartz, founder and CEO of OppFi, an online finance platform, recommends picking a lender that’s affiliated with a bank partner (like LightStream, which is affiliated with Truist Bank).
“Moreover, publicly traded companies on major stock exchanges are more credible than those that are not because they are subject to elevated standards from the marketplace and regulatory agencies,” he told MarketWatch Guides.
Another consideration is an online lender’s level of customer service.
“Think about the lender’s reputation, whether you have a preexisting relationship with them, and whether you’ll be able to rely on their customer service to answer all of your questions,” said Rachael Olson, head of product strategy at Discover Personal Loans. “Both online lenders and brick-and-mortar lenders are subject to the same laws and regulations, so you should choose the best lender based on the options available to you.”
When You Might Consider an Online Personal Loan
The average borrower on our MarketWatch Guides team’s latest personal loans survey took out $16,866.60, and the top reasons for a loan were debt consolidation, home improvement and car financing or repairs.
Personal loans offer fixed interest rates and predictable monthly payments, making it easier to budget each month. When you apply for an online personal loan, expect to be able to easily compare rates and get fast approval and access to funds.
An online personal loan is a financial tool, and like most tools, it can help or hurt your finances depending on how you use it. Consider your current budget, expected spending and credit score before you apply for an online personal loan. “In the end, a personal loan may or may not be the right option for your financial situation,” Olson said. But if it is, “you want to feel good about the lender you choose to work with,” she said.
If you’re unsure whether a personal loan makes sense for you, consult your financial adviser or credit counselor.
The Bottom Line
Personal loans are financial investments that can help you accomplish your goals. As you determine the best lender, consider the loan cost and customer experience. It can be helpful to compare offers from multiple lenders to understand your options better and find the best fit.
The best online personal loan for you might differ from the best one for someone else, and that’s OK. The best fit for you depends on your credit history, financial needs and preferred loan terms.
Frequently Asked Questions About Online Personal Loans
Many of our recommended online lenders offer quick approval. For example, Upstart boasts that it approves up to 87% of applicants instantly with artificial intelligence. LightStream and SoFi say that their approval happens within about one business day.
The easiest online loan to get depends on your credit score and other factors. For example, if you have an excellent credit score, you might qualify for nearly every loan. Finding a lender with competitive rates might be more challenging if you have a fair or poor credit score. Some lenders, like Upstart, specialize in loans for borrowers with lower credit scores, but you might pay higher rates.
Many online lenders are generally safe and provide reputable loan products. According to the Federal Trade Commission, avoiding advance-fee loans is the best way to prevent scams. If a company asks you to pay money before providing you with the loan product, it’s likely a scam. Reputable companies charge origination fees, which differ from such scams since the money is deducted from your loan amount and never paid upfront.
It’s crucial to avoid predatory lending practices, including loan flipping, bait-and-switch schemes and hidden balloon payments. The best way to avoid predatory lending is to compare offers from multiple lenders, ask questions and exercise caution with anyone who tries to encourage you to work with a specific lender.
Methodology: Our System for Ranking the Best Online Personal Loans
Our team put together a comprehensive 100-point rating system to evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the US and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.
- Affordability (35%): How expensive each company’s loans are to pay back.
- Loan features (35%): The breadth of loan terms and features available to prospective customers.
- Customer experience (20%): Ease of application, prequalification and customer service interactions.
- Company reputation (10%): An exploration of lenders’ Better Business Bureau files, customer reviews and outstanding regulatory actions.
Our top-rated lenders may not be the best fit for all borrowers. To learn more, read our full personal loans methodology.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.
Taylor Milam-Samuel is a personal finance writer and credentialed educator with a master’s in education. She’s fascinated by how people earn, save and spend their money. Her work has been featured on Insider, Discover, Forbes Advisor, Policygenius and more. When she’s not demystifying financial terms and conditions for consumers, she can be found teaching.
Jen Hubley Luckwaldt is an editor and writer with a focus on personal finance and careers. A small business owner for over a decade, Jen helps publications and brands make financial content accessible to readers. Through her clients, Jen’s writing has been syndicated to CNBC, Insider, Yahoo Finance, and many local newspapers. She is a regular contributor to Career Tool Belt and Career Cloud.