The Best Personal Loan providers in 2024:
Rating: 4.75/5
- LightStream specializes in home improvement loans.
- Loan amounts range from $5,000 to $100,000.
- No fees make it an attractive choice for borrowers.
Loan Amounts:
$5,000 to $100,000
Terms:
24 to 144 months* dependent on loan purpose
Origination Fee:
None*
Est. APR:
7.49% – 25.49%* APR with AutoPay
Loan Purpose:
Debt consolidation, home improvement, auto financing, medical expenses, and others.
Early Payoff:
No Penalty*
Late Fee:
None*
Credit Needed:
Good
LightStream, a leading online lender, provides unsecured personal loans for various purposes, including auto financing, home improvement, and more. Their hallmark is simplicity and transparency. Here’s why they stand out:
Low Fixed Rates: LightStream offers competitive fixed rates for borrowers with excellent credit. Their rates vary based on the loan purpose, but they consistently reward responsible borrowers.
No Fees: Unlike many lenders, LightStream charges no origination fees or prepayment penalties. This transparency ensures borrowers can focus on their financial goals without unexpected costs.
Quick and Easy Process: Customers rave about the smooth and rapid application process. From approval to funding, LightStream streamlines everything, allowing borrowers to access funds promptly.
Customer-Centric Approach: LightStream values its customers. Whether you’re financing a boat, home renovation, or debt consolidation, they prioritize exceptional service.
In summary, LightStream’s combination of low rates, no fees, and outstanding customer experience makes them a top choice for personal loans.
- Competitive rates for good to excellent credit.
- No fees or prepayment penalties.
- Multiple rate discounts available.
- Fast funding process.
- Offers free financial advice.
- LightStream plants a tree for every loan.
- Requires several years of credit history
- No option to pay your creditors directly
- Not available for student loans or business loans
- No option for pre-approval on website (but pre-qualification is available on some third-party lending platforms)
Rating: 4.65/5
- SoFi provides personal loans for various purposes.
- Loan amounts range from $5,000 to $100,000.
- No required fees and multiple rate discounts.
Loan Amounts:
$5,000 to $100,000
Terms:
24 to 84 months
Origination Fee:
None*
Est. APR:
8.99% – 29.99% when you sign up for autopay.
Loan Purpose:
Debt consolidation refinancing, home improvement, relocation assistance or medical expenses.
Early Payoff:
No Penalty*
Late Fee:
None*
Credit Needed:
Good to excellent
SoFi, a prominent online lender, provides unsecured personal loans tailored to various needs, from debt consolidation to home improvements. Here’s why they excel:
- Low Fixed Rates: SoFi offers competitive fixed rates ranging from 8.99% APR to 29.49% APR. These rates remain steady over time, shielding borrowers from rising interest costs.
- No Fees Required: Unlike many lenders, SoFi imposes no origination fees, prepayment penalties, or late fees. This transparency ensures borrowers can focus on their financial goals without unexpected charges.
- Same-Day Funding: SoFi’s streamlined process means your funds could be available as quickly as the same day your loan is approved. This rapid access ensures you can address urgent financial needs promptly.
- Unemployment Protection: If you lose your job, SoFi offers temporary payment modifications to ease the burden. Their commitment to customer well-being sets them apart.
In summary, SoFi’s combination of low rates, fee transparency, and excellent service positions them as a top choice for personal loans. Whether you’re consolidating debt or financing a dream vacation, SoFi’s offerings cater to diverse financial needs.
- Excellent customer service.
- Rate discounts available.
- Wide range of loan amounts and terms.
- Offers free financial advice.
- Primarily caters to borrowers with good to excellent credit.
Rating: 4.50/5
- Upgrade specializes in personal loans for various purposes.
- Loan amounts range from $1,000 to $50,000.
- Quick approval and funding.
Account Minimum:
$0 ($100 for Robo Portfolios; $100,000 for Ally Invest Personal Advice)
Promotion:
No promotion available at this time. (Visit website to find out more info).
Fees:
0% (up to 0.85% for Ally Invest Personal Advice; bonds, mutual funds, and certain stocks have fees)
Recommended:
Beginners
Excellent/Good
Upgrade, a prominent online lender, provides unsecured personal loans for various purposes, including auto financing, home improvement, and more. Their hallmark is simplicity and transparency. Here’s why they stand out:
- Low Fixed Rates: Upgrade offers competitive fixed rates ranging from 8.99% APR to 29.49% APR. These rates remain steady over time, shielding borrowers from rising interest costs.
- No Fees Required: Unlike many lenders, Upgrade imposes no origination fees, prepayment penalties, or late fees. This transparency ensures borrowers can focus on their financial goals without unexpected charges.
- Credit Score Consideration: While Upgrade caters to borrowers with various credit profiles, keep in mind that lower credit scores may result in slightly higher interest rates. However, their willingness to work with different credit backgrounds makes them an inclusive choice for many.
- Flexible Loan Amounts: Upgrade offers personal loans ranging from $1,000 to $50,000. Whether you need a small amount for an emergency or a larger sum for a major expense, they’ve got you covered.
In summary, Upgrade’s combination of low rates, no fees, and outstanding customer experience makes them a top choice for personal loans. Whether you’re consolidating debt or financing a dream vacation, Upgrade’s offerings cater to diverse financial needs.
- Accepts borrowers with bad to fair credit.
- Fast funding process.
- No prepayment penalties.
- Interest rates may be higher for lower credit scores.
Rating: 4.50/5
- Upstart uses alternative data to assess creditworthiness.
- Loan amounts range from $1,000 to $50,000.
- Ideal for those building credit.
Loan Amounts:
$2,500 to $40,000
Terms:
36 and 60 months
Origination Fee:
0% to 12% of the target amount*
Est. APR:
6.4% – 35.99%
Loan Purpose:
Debt consolidation, credit card refinancing, wedding, moving or medical.
Early Payoff:
No Penalty*
Late Fee:
The greater of 5% of last amount due or $15, whichever is greater.
Credit Needed:
Credit score of 300 on at least one credit report. Accepts insufficient credit score, subject to terms*.
Upstart, a leading online lender, provides unsecured personal loans for various purposes, including auto financing, home improvement, and more. Their hallmark is simplicity and transparency. Here’s why they stand out:
- Low Fixed Rates: Upstart offers competitive fixed rates ranging from 8.99% APR to 29.49% APR. These rates remain steady over time, shielding borrowers from rising interest costs.
- No Fees Required: Unlike many lenders, Upstart imposes no origination fees, prepayment penalties, or late fees. This transparency ensures borrowers can focus on their financial goals without unexpected charges.
- Innovative Underwriting Model: Upstart stands out for its unique approach to lending. By considering factors beyond traditional credit scores, they provide opportunities for borrowers with limited credit history. Whether you’re a recent graduate or changing careers, Upstart’s innovative underwriting model can help you secure a personal loan. Their fast approval process ensures quick access to funds.
- Flexible Loan Amounts: Borrowers can access personal loans ranging from $1,000 to $50,000. Whether you need a small amount for an emergency or a larger sum for a major expense, Upstart’s flexible plans accommodate diverse financial needs.
- Ideal for Building Credit: Upstart’s alternative data-driven approach makes it an excellent choice for those building or improving their credit. If you’re a recent graduate or someone with a short credit history, Upstart’s innovative underwriting model can help you secure a personal loan. Their fast approval process ensures quick access to funds.
In summary, Upstart’s combination of low rates, fee transparency, and quick funding makes them a top choice for personal loans. Whether you’re consolidating debt, covering medical expenses, or pursuing home improvements, Upstart’s offerings cater to a wide range of borrowers.
- Suitable for borrowers with short credit histories.
- Innovative underwriting model.
- Open to borrowers with fair credit (minimum 300 score)
- Will accept applicants who have insufficient credit history and don’t have a credit score
- May have slightly higher interest rates.
- High late fees
- Origination fee of 0% to 10% of the target amount (automatically withheld from the loan before it’s delivered to you)
- $10 fee to request paper copies of loan agreement (no fee for eSigned virtual copies).
Rating: 4.0/5
- Discover provides personal loans for various purposes.
- Loan amounts range from $2,500 to $35,000.
- No origination fees or prepayment penalties.
Loan Amounts:
$2,500 to $40,000
Terms:
36, 48, 60, 72 and 84 months
Origination Fee:
None*
Est. APR:
7.99% to 24.99%
Loan Purpose:
Debt consolidation, home improvement, wedding or vacation.
Early Payoff:
No Penalty*
Late Fee:
$39*
Credit Needed:
Good
Discover Personal Loans provides unsecured personal loans ranging from $2,500 to $40,000. Their hallmark is simplicity and transparency. Here’s why they stand out:
- Great Rates: Discover offers competitive fixed interest rates from 7.99% to 24.99% APR. Whether you’re consolidating debt or funding a home improvement project, these low rates can save you money on interest.
- Flexible Terms: Borrowers can choose repayment periods of 36 to 84 months, allowing flexibility in managing loan payments. Whether you need a shorter term or prefer a longer one, Discover accommodates your needs.
- No Up-Front Fees: Discover doesn’t charge origination fees, prepayment penalties, or late fees. This fee transparency ensures borrowers can focus on their financial goals without unexpected costs.
- Brand Recognition: As a well-known financial institution, Discover’s reputation for reliability and customer service makes them a trusted choice for personal loans. Their 4.9 out of 5 average customer rating reflects their commitment to exceptional service.
In summary, Discover Personal Loans combines low rates, fee transparency, and brand trustworthiness, making them an excellent option for borrowers seeking financial assistance.
- No origination fees, no early payoff fees
- Same-day decision (in most cases)
- Option to pay creditors directly
- Late fee of $39
- No autopay discount
- No cosigners or joint applications
How can I improve my credit score?
Improving your credit score is essential for better financial opportunities. Here are some strategies to help you boost your credit score quickly:
Pay Credit Card Balances Strategically:
- Credit Utilization: Keep your credit utilization low. Aim to use less than 30% of your credit limit on any card, but lower is even better. The highest scorers maintain single-digit credit utilization.
- Timing: Pay down your balance before the billing cycle ends or make multiple payments throughout the month to keep your balance consistently low. This ensures that the lower balance is reported to the credit bureaus, positively impacting your score.
Review Your Credit Reports:
- Regularly check your credit reports for errors or inaccuracies. Dispute any discrepancies you find with the credit bureaus.
- Correcting errors can lead to significant score improvements.
Pay Bills on Time:
- Timely bill payments are crucial. Set calendar reminders to log in and make payments promptly.
- Consistently paying on time is the most influential factor in your credit score.
Ask for Higher Credit Limits:
- Requesting higher credit limits can improve your credit utilization ratio. However, use this strategy wisely and avoid overspending.
- Higher limits provide more room for responsible credit usage.
Become an Authorized User:
- If someone with good credit adds you as an authorized user on their credit card, it can positively impact your credit history.
- Ensure that the primary cardholder has a strong payment history.
Deal with Collections Accounts:
- Address any collections accounts on your credit report. Negotiate payment plans or settlements to resolve them.
- Once settled, these negative marks will have less impact on your score over time.
Use a Secured Credit Card:
- If you’re rebuilding credit, consider a secured credit card. It requires a deposit as collateral and helps establish a positive payment history.
- Make timely payments to demonstrate responsible credit behavior.
Get Credit for Rent and Utility Payments:
- Some services, like Experian Boost, allow you to add positive utility and rent payments to your credit report.
- These additional data points can enhance your credit profile.
Add to Your Credit Mix:
- A diverse credit mix (credit cards, installment loans, etc.) can positively impact your score.
- However, avoid opening too many new accounts at once, as it can temporarily lower your score.
Remember, improving your credit score takes time and consistent effort. Focus on responsible credit management, and you’ll see positive results over time!
Compare Personal Loan providers in 2024:
| Lender | The Money USA Rating | Est. APR | Loan Amount | Min. credit score | Learn more |
|---|---|---|---|---|---|
 |  Best for personal loans for good to excellent credit | 8.99-29.99% | $5,000-$100,000 | None | |
 | Best for personal loans for good to excellent credit | 8.99-29.99% | $5,000-$100,000 | None | |
| Best for personal loans for good to excellent credit | 8.99-29.99% | $5,000-$100,000 | None | |
| Best for personal loans for good to excellent credit | 8.99-29.99% | $5,000-$100,000 | None | |
| Best for personal loans for good to excellent credit | 8.99-29.99% | $5,000-$100,000 | None | |
| Best for personal loans for good to excellent credit | 8.99-29.99% | $5,000-$100,000 | None |
FAQ
A good interest rate on a personal loan depends on several factors, including your credit score, credit history, annual income, existing debt, and the lender you choose. As of now, the best personal loan rates range from 7.49% to about 29.99%. However, keep in mind that individual rates may vary based on your specific circumstances.
Here are some key points to consider:
- Credit Score: Borrowers with excellent credit tend to qualify for lower interest rates. If your credit score is high, you’re more likely to secure a favorable rate.
- Debt-to-Income Ratio: Lenders assess your debt-to-income ratio to determine your ability to repay the loan. Lower debt relative to your income can positively impact your interest rate.
- Purpose of the Loan: Different lenders offer competitive rates for specific purposes. For example:
- Debt consolidation: Consider lenders like Discover with rates starting at 7.99%.
- Home improvement: LightStream offers competitive rates for this purpose.
- Flexible payment options: Look into PenFed for such features.
- Comparison Shopping: Compare multiple loan rates, monthly payments, and total interest to find the most affordable option for your needs.
Remember that the actual rate you qualify for will depend on your unique situation, so it’s essential to explore different lenders and choose the one that best suits your financial goals.
Here are some steps to consider:
Pull Your Credit:
- Start by checking your credit score. Many financial companies, including NerdWallet, allow you to access your credit score for free. Pull your full credit report from all three bureaus (Equifax, Experian, and TransUnion) to address any red flags or inaccuracies before applying.
Review Your Finances:
- Personal loan lenders assess your ability to repay based on your income and existing debt. Calculate your debt-to-income ratio (DTI) to ensure it’s below 50%. This shows how much of your monthly income goes toward debt payments.
Calculate Monthly Payments:
- Use a personal loan calculator to understand how different loan amounts, terms, and interest rates affect your monthly payments. Adjust the loan amount and repayment term to find an affordable payment.
Compare Lenders:
- Research various lenders, including online lenders and credit unions. Look at their qualification requirements, rates, and features. Compare options to find the best fit for your situation.
Remember that while bad credit loans may come with higher interest rates, there are lenders willing to work with you.
