Our experts answer readers' personal loan questions and write unbiased product reviews (here's how we assess personal loans). In some cases, we receive a commission from our partners; however, our opinions are our own.
Personal loans are excellent options for people in need of cash to cover expenses like medical bills or home improvement projects. There are personal loans for borrowers who want a sizeable chunk of money and for those who just need a small amount to tide them over.
Best Personal Loan Companies
| Best Personal Loan | Best for |
| LightStream Personal Loan | Best for excellent credit |
| Service Credit Union Personal Loan | Best for customer support |
| SoFi Personal Loan | Best for fair credit |
| PenFed Credit Union Personal Loan | Best for small loan amounts |
| Avant Personal Loan | Best for low credit |
| Upstart Personal Loan | Best for borrowers with limited credit history |
| Wells Fargo Personal Loan | Best for flexible terms |
We've gathered the best lenders for people with a range of credit scores, with a specific focus on finding the best loan companies that offer low APRs.
Best Personal Loans
Personal Loan Frequently Asked Questions
There's no hard limit to the number of personal loans you can have. But the total number you'll be able to get will depend on how many you can qualify for. Your chances of qualifying for a loan will decrease with each loan you take out as your debt-to-income ratio increases.
Smaller lenders like local credit unions can often offer much lower interest rates than bigger banks and tend to be more flexible about credit requirements. It might be worth checking on their rates and terms as part of your research when you're looking for personal loans near you.
Personal loan alternatives include a 0% APR credit card, which can be especially useful for consolidating credit card debt or making purchases that you'd like to pay off over time. Just make sure you're clear on the difference between personal loans and credit cards first. Homeowners sometimes find that home equity lines of credit are better than personal loans to fund major repairs or renovations with lower interest rates.
You can use the proceeds from a personal loan for just about anything, from emergency medical expenses to home improvements, large purchases, or even to pay your taxes. Debt consolidation is the most common reason borrowers take out personal loans. See our picks for the best debt consolidation loans.
Many lenders don't disclose a minimum credit score to get a loan but may be able to give you an idea of you approval chances when you offer them your financial information. If your score is too low, take steps to improve it by reviewing your credit report and lowering your credit utilization ratio (the percentage of your credit limit you're currently using). To get a loan with bad credit, you might also want to consider credit unions offering personal loans and secured loans.
The time it takes to get the proceeds from a personal loan will vary depending on the lender. Most fund them in a week or less after your approved. The best quick personal loan companies can get you your money either the same day or the next day.
A personal loan can be a good idea if you need to accomplish big financial goals, like consolidating high-interest debt or making improvements to increase the value of your home. However, you may be able to find lower-cost alternatives, such as a 0% APR credit card or home equity line of credit.
The easiest personal loans to get approved for tend to be those with the most lenient credit score requirements. However, even the best loans for bad credit that you you can get are likely to come with high interest rates.
Compare the Best Personal Loan Companies
LightStream Personal Loan
LightStream stands out with some of the lowest personal loan rates available for borrowers with excellent credit scores. Truist created LightStream for online loans, and the bank offers personal loans for things like home remodels, medical debt, and debt consolidation.
Look out for: High credit score requirements. LightStream's minimum credit requirement for a personal loan is 660, so this lender might not be right for all credit types.
LightStream Personal Loan Review
Service Credit Union Personal Loan
Service Credit Union has some of the best customer support among personal loan lenders and can get you your money fast. Customers support is available 24 hours a day, seven days a week. The approval process takes about 24 hours, and after your loan application is accepted, you may be able to have the funds in your account the same day.
Look out for: Membership requirements. Much like with most credit unions, you'll need to meet certain requirements to be eligible. If you've served in the military or Department of Defense or work at qualifying associations or organizations, you'll qualify. If that doesn't apply to you, you can join the American Consumer Council for free with a promo code.
PenFed Credit Union Personal Loan
PenFed Credit Union offers personal loans for smaller amounts than many other lenders, making it a good choice for those who just need to borrow a little bit of money for a short tim. PenFed will lend you as little as $600. This could make the credit union an attractive alternative to a payday loan.
Look out for: Membership requirements. You don't need to be a member of the credit union to apply for a personal loan, but you'll have to be a member to get your loan. If you've served in the military or work at qualifying associations or organizations, you'll qualify.
However, you have a pretty easy workaround if that doesn't apply. You can join by opening a savings account with a $5 minimum deposit.
SoFi Personal Loan
SoFi personal loans have a minimum credit score requirement of 680, at the lower end of what's considered a good credit score. People with a good credit score will likely be able to get a good rate with SoFi, but borrowers with an excellent credit score may be able to get a lower rate with LightStream. SoFi offers forbearance in case you lose your job during your loan repayment. This unique feature allows you to apply for as many of 12 months of forbearance, in three-month increments.
Interest rates on these loans range by about 13 percentage points, making for a smaller range than offered by other companies. This means interest rates for borrowers with relatively lower credit scores can only go so high.
Look out for: A relatively high minimum income for approval. According to loan comparison site Credible, less than 1% of borrowers approved for personal loans through SoFi have an income of less than $50,000 per year, and a majority make more than $100,000.
Avant Personal Loan
Avant stands out as a lender borowers with low credit scores can turn to for personal loans. Personal loans are generally offered to those with better credit scores. Avant offers personal loan options for borrowers with credit scores as low as 600. It has a lower limit than other lenders, with $35,000 as the maximum loan amount.
Look out for: Administrative fees. Avant's personal loans carry up to 4.75% in administration fees with an undisclosed late fee and returned payment fee. Considering that many of the other loans on this list don't carry administrative fees, prepayment fees, or origination fees, Avant's fee is high.
It's also worth noting that interest rates are high from this lender. While this is a good option for anyone with credit scores in the lower 600s, those with better credit could find better rates elsewhere.
Upstart Personal Loan
Upstart distinugishes itself from other personal loan lenders with its underwriting process, which is how it decides who gets a loan and how much to charge in interest. Like any lender, Upstart considers credit scores as part of the process. But it also considers employment history and education history, such as where you went to school and your area of study.
Look out for: Potentially high origination fees. Upstart's personal loans can have late fee of 5% or $15, whichever is greater. This can take a significant portion out of your overall loan proceeds.
Wells Fargo Personal Loan
Wells Fargo personal loans offer low interest rates, smaller minimum borrowing amounts, and shorter terms than many others. Wells Fargo offers loans between $3,000 to $100,000, for payoff terms as short as 12 months. Borrowers who want to get their debt under control quickly might find that Wells Fargo's personal loans are flexible enough to tackle debt consolidation.
Look out for: It's worth noting Wells Fargo's history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues associated with creating fake accounts several years ago.
Wells Fargo Personal Loans Review
Other Personal Loans We Considered
- Discover Personal Loans: Discover's loans have a minimum 660 minimum credit score requirement and similar APRs to other lenders on our list. But borrowers with good credit could get lower interest rates elsewhere. Read Insider's full review of Discover Personal Loans.
- LendingClub Personal Loan: This online lending marketplace has an accessible 600 minimum credit score requirement. But, it charges late fee of 5% of the minimum payment amount or $15 (whichever is greater), which can make the cost of borrowing add up. Read Insider's full review of LendingClub Personal Loans.
- Prosper Personal Loan: Fees keep Prosper from being a top choice. While it only requires a minimum credit score of 640, it also requires late fees are 5% of the payment amount or $15, whichever is greater. Read Insider's full review of Prosper Personal Loans.
Personal Loan Lender Trustworthiness
Whether you're interested in taking out a $5,000 loan or a $40,000 loan, finding the right provider can help with your loan approval experience. The Better Business Bureau, a non-profit organization focused on consumer protection and trust, evaluates businesses using factors like their responsiveness to consumer complaints, honesty in advertising, and clarity about business practices. Here is each company's score:
| Lender | BBB Grade |
| LightStream Personal Loan | A+ |
| SoFi Personal Loan | A+ |
| Wells Fargo Personal Loan | F |
| Avant Personal Loan | A |
| PenFed Credit Union Personal Loan | A+ |
| Service Credit Union Personal Loan | A+ |
| Upstart Personal Loan | A+ |
All of our top picks, minus Wells Fargo, are rated A or higher by the BBB. Keep in mind that a high BBB score does not ensure a positive relationship with a lender, and that you should keep doing research and talking to others who have used the company to get the most comprehensive information possible.
The BBB gives Wells Fargo an F rating because of the business' failure to respond to 24 complaints and government actions against the business. Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.
If this history makes you uncomfortable, you may consider using one of the other personal loan lenders on our list.
How to Choose the Best Personal Loan
To pick the best lender for you, take stock of the factors that are most important to you. Many borrowers zero in the lowest interest rate. But be sure to also look at any fees, the minimum credit score needed, and the accessibility of the lender's customer service before you apply for personal loans.
Also look at the different types of lenders you may borrow with. Some people may feel comfortable with an online lender, while others may prefer a credit union or bank. You'll also want to make sure you're able to select a term length that works for you and that your loan's purpose is allowed by the lender you choose.
Guides like this one will help you compare multiple lenders in the same place to weigh their pros and cons. Keep in mind that you should also read individual reviews of any lenders you're considering.
Why You Should Trust Us: Our Experts for the Best Personal Loans
We consulted personal loan and financial experts to give their insights into finding the best loan companies for your needs.
- Markia Brown, certified financial education instructor and registered financial associate at Money Plug, LLC
- Ryan Wangman, loans reporter at Personal Finance Insider
Our Experts' Advice for Choosing the Best Personal Loan
How does the interest rate on a personal loan affect how much I pay?
Markia Brown:
"The interest rate on a personal loan is the price you pay for borrowing the loan. This rate can make a massive difference in the total amount paid over time, so ensuring you have the lowest interest rate available saves you money!"
Ryan Wangman:
"Depending on the interest rate you're charged, you could end up paying hundreds or thousands of dollars more than a borrower with better credit who takes out a similar amount of money."
If someone wants to get a lower interest rate but doesn't currently qualify for one, what should they do?
Markia Brown:
"The first step is to pull a copy of your credit report from TransUnion, Equifax, and Experian. All you have to do is go to www.annualcreditreport.com.
After you pull your credit reports, go through them to identify what could be holding you back from qualifying for a better rate. Some of the information on your credit report is used to generate your credit score, which is used when determining if you qualify for a loan and what your interest rate should be. The five sections used to calculate your credit score are your payment history, credit utilization, length of payment history, mix of accounts, and new accounts/inquiries."
Ryan Wangman:
"The best way to get a lower rate is to improve your credit history. You can do so by making on time, reliable payments and managing the amount of debt you take out compared to your overall limit."
Methodology
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.
See our full ratings methodology for personal loans »
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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