Best personal loans of July 2024

The best personal loans have competitive rates, low or no fees, and quick funding.

Author
By Jessica Walrack

Written by

Jessica Walrack

Writer

Jessica Walrack is a freelance finance writer and journalist with over a decade of experience. During that time, she’s written hundreds of articles about loans, insurance, banking, mortgages, credit cards, budgeting, and taxes for well-known publications including CBS News MoneyWatch, USA Today, US News and World, Investopedia, and The Balance Money.

Edited by Jared Hughes

Written by

Jared Hughes

Editor

Jared Hughes is a personal loan editor for Credible and Fox Money, and has been producing digital content for more than six years.

Updated June 28, 2024, 4:26 PM EDT

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Fox Money is a personal finance hub featuring content generated by Credible Operations, Inc. (Credible), which is majority-owned indirectly by Fox Corporation. The Fox Money content is created and reviewed independent of Fox News Media. Credible is solely responsible for this content and the services it provides.

The best personal loan gets you the money you need at a competitive interest rate, and has a monthly payment you can afford. Rates generally range from around 7% to 36%, with the lowest rates reserved for borrowers with exceptional credit (a FICO score of 800 or above). If you're able to improve your credit before applying, you can improve your rate (more on that below). 

Check out average personal loan interest rates, according to Credible data, to get a sense of what you might qualify for.

Credit score
Average APR 3-year loan
Average APR 5-year loan
780 and above
13.64%
17.19%
720 to 779
16.50%
21.30%
680 to 719
21.69%
24.81%
640 to 679
28.13%
29.22%
600 to 639
32.06%
31.68%
0 to 599
33.07%
31.64%

Current personal loan rates

Advertiser Disclosure
4.24.2

Fox Money rating

Fixed (APR)

6.99% - 25.49%

Loan Amounts

$5000 to $100000

Min. Credit Score

700

Check Rates

on Credible’s website

View Details

3.93.9

Fox Money rating

Fixed (APR)

7.80% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

620

Check Rates

on Credible’s website

View Details

4.44.4

Fox Money rating

Fixed (APR)

-

Loan Amounts

$2500 to $40000

Min. Credit Score

660

Check Rates

on Credible’s website

View Details

4.54.5

Fox Money rating

Fixed (APR)

8.49% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

600

Check Rates

on Credible’s website

View Details

44

Fox Money rating

Fixed (APR)

8.98% - 35.99%

Loan Amounts

$1000 to $40000

Min. Credit Score

660

Check Rates

on Credible’s website

View Details

4.94.9

Fox Money rating

Fixed (APR)

8.99% - 29.99%1

Loan Amounts

$5000 to $100000

Min. Credit Score

Does not disclose

Check Rates

on Credible’s website

View Details

44

Fox Money rating

Fixed (APR)

8.99% - 35.99%

Loan Amounts

$2000 to $50000

Min. Credit Score

600

Check Rates

on Credible’s website

View Details

3.93.9

Fox Money rating

Fixed (APR)

9.95% - 35.99%

Loan Amounts

$2000 to $35000

Min. Credit Score

550

Check Rates

on Credible’s website

View Details

4.34.3

Fox Money rating

Fixed (APR)

-

Loan Amounts

$5000 to $35000

Min. Credit Score

700

Check Rates

on Credible’s website

View Details

4.34.3

Fox Money rating

Fixed (APR)

11.69% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

560

Check Rates

on Credible’s website

View Details

3.93.9

Fox Money rating

Fixed (APR)

11.72% - 17.99%

Loan Amounts

$3000 to $40000

Min. Credit Score

640

Check Rates

on Credible’s website

View Details

44

Fox Money rating

Fixed (APR)

-

Loan Amounts

$20000 to $200000

Min. Credit Score

660

Check Rates

on Credible’s website

View Details

3.73.7

Fox Money rating

Fixed (APR)

14.30% - 35.99%

Loan Amounts

$3500 to $40000

Min. Credit Score

640

Check Rates

on Credible’s website

View Details

3.93.9

Fox Money rating

Fixed (APR)

18.00% - 35.99%

Loan Amounts

$1500 to $20000

Min. Credit Score

540

Check Rates

on Credible’s website

View Details

Fox Business does not make or arrange loans.

Best personal loans: 7 best personal loan lenders

To find the best personal loan, prequalify with multiple lenders to compare customized rate quotes. Prequalification is a good first step since it won’t hurt your credit score and can usually be done in minutes. Just note that prequalification is not an offer of credit, and once you formally apply, the lender will conduct a hard credit check that could temporarily ding your score.

SoFi: Best overall

Best overall

SoFi

4.9

Fox Money rating

Check Rates

on Credible’s website

Est. APR

8.99 - 29.99%1

Loan Amount

$5000 to $100000

Min. Credit Score

Does not disclose

Pros and cons

More details

PenFed: Best credit union for personal loans

Best credit union for personal loans

PenFed

4.6

Fox Money rating

Check Rates

on Credible’s website

Est. APR

8.49 - 17.99%

Loan Amount

$600 to $50000

Min. Credit Score

760

Pros and cons

More details

Upstart: Best fast personal loans for all credit types

Best fast personal loans for all credit types

Upstart

3.9

Fox Money rating

Check Rates

on Credible’s website

Est. APR

7.80 - 35.99%

Loan Amount

$1000 to $50000

Min. Credit Score

620

Pros and cons

More details

Upgrade: Best for fair credit

Best for fair credit

Upgrade

4.5

Fox Money rating

Check Rates

on Credible’s website

Est. APR

8.49 - 35.99%

Loan Amount

$1000 to $50000

Min. Credit Score

600

Pros and cons

More details

LightStream: Best home improvement loans and low rates

Best home improvement loans and low rates

LightStream

4.2

Fox Money rating

Check Rates

on Credible’s website

Est. APR

6.99 - 25.49%

Loan Amount

$5000 to $100000

Min. Credit Score

700

Pros and cons

More details

Reach Financial: Best for fast funding and fair credit

Best for fast funding and fair credit

Reach Financial

3.7

Fox Money rating

Check Rates

on Credible’s website

Est. APR

14.30 - 35.99%

Loan Amount

$3500 to $40000

Min. Credit Score

640

Pros and cons

More details

OneMain Financial: Best bad credit personal loans

Best bad credit personal loans

OneMain Financial

3.9

Fox Money rating

Check Rates

on Credible’s website

Est. APR

18.00 - 35.99%

Loan Amount

$1500 to $20000

Min. Credit Score

540

Pros and cons

More details

Methodology

We evaluated the best personal loan lenders based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Our team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Read our full lender rating methodology for more information.

How to compare personal loans

Here are the main factors to consider when comparing personal loans:

  • APR: When comparing personal loans, it’s crucial to compare annual percentage rates (APRs). This is because some personal loans carry an origination fee, which is an upfront fee charged as a percentage of the loan amount — the APR accounts for upfront fees and the interest rate, whereas the interest rate alone does not. The lower your APR is, the lower your borrowing costs.
  • Loan amounts: Lenders offer different loan amounts that can range from less than $1,000 to over $100,000. That doesn’t mean you’ll necessarily qualify for the highest loan amount offered, however. That’s dependent on your income, credit score, and current debt-to-income ratio (DTI).
  • Repayment terms: The repayment term is the number of years you'll have to repay the loan amount. Longer terms result in smaller monthly payments but higher interest costs overall, while shorter terms result in higher monthly payments but lower interest costs. The best term for you will depend on your budget and preferences.
  • Fees: Lenders may charge one or more fees, such as origination fees, application fees, late fees, or insufficient funds fees. These add to your total borrowing costs.
  • Cosigner and secured loan options: A cosigner with a good credit profile can help you qualify if your FICO score is fair (between 580 and 669) or poor (below 580), but they’ll be responsible for making payments if you can’t. A secured loan is one you attach collateral to, and may also help you qualify with fair or poor credit, but you can lose your collateral if you default. If you're interested in either, look for a lender that allows them — not all do.
  • Time to fund: The amount of time it takes a lender to approve your application and send you loan funds also varies. Some lenders offer faster access to funds (as soon as the same day), which can be important when you need money fast.
  • Customer service ratings: Different companies provide different levels of support. You can gain insight into a lender’s customer service by checking ratings left by past borrowers on sites like Trustpilot and by checking the company’s rating with the Better Business Bureau (BBB).
  • Overall cost: Use a personal loan calculator to compare the total amount you'll pay in interest and fees over the life of the loan. A lower monthly payment doesn’t mean a loan is cheaper overall.

Pros and cons of personal loans

Personal loans come with many benefits, especially if you have good to excellent credit — but there are also a few drawbacks. Here's what you should know:

icon

Pros

  • Wide selection of lenders
  • Easy application process
  • Fast funding time
  • Relatively low cost
  • High loan amounts
  • No collateral
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Cons

  • Higher APRs than secured loans
  • Origination fees
  • Shorter terms than home equity loans

Pros

  • Wide selection of lenders: Many banks, credit unions, and alternative lenders offer personal loan products, which means you have no shortage of options.
  • Easy application process: You can often apply online within a matter of minutes and get a loan decision the same day.
  • Fast funding time: Many lenders offer fast funding times. Without any collateral, you may be able to get your loan funded within a day or two.
  • Relatively low cost: If you have good to excellent credit (a FICO score of 670 or higher), you may be able to qualify for an APR lower than the APR on your credit cards.
  • High loan amounts: Borrowers with good to excellent credit and high income can get approved for high loan amounts, over $100,000 in some cases.
  • No collateral: Most personal loans are unsecured, meaning you don't have to pledge collateral to back the loan.

Cons

  • Higher APRs than secured loans: In comparison to secured loans, which use collateral such as your house or car to secure a loan, the APRs on unsecured personal loans are often higher. Lenders take on more risk since there’s no collateral attached.
  • Origination fees: Many lenders charge origination fees, which can range from 1% to 12% of your loan amount. These are more common in loans for subprime borrowers and will be higher for borrowers lenders think pose more risk.
  • Shorter terms than home equity loans: The repayment terms on unsecured personal loans are often shorter than those on loans secured by your home, which can result in higher monthly payments. If you need a repayment term over 10 years, a home equity loan may be a better fit.

When will interest rates go down?

Interest rates remained unchanged per the last Fed policy meeting. There’s less confidence we’ll see three by the end of the year, as earlier anticipated. However, the Fed announced that one rate cut is likely, given cooling inflation per the most recent CPI report

But the fed funds rate — which is the benchmark set by the Fed and what banks use to determine consumer loan rates — isn’t the only thing to consider. Demand for loans has increased and is expected to increase further, according to a Fed survey of senior loan officers, while consumer debt is reaching new highs. As a result, lending standards have tightened, which means banks are being more selective about who they make loans to.

In other words, even if rates do go down, qualifying for a loan may be more difficult for many consumers, which can mean higher rates. One thing we do know is that the best way to get a low interest rate is to improve your credit score and lower your DTI before applying. Keep in mind that if rates go down after you get a loan, you may be able to refinance it to benefit from lower rates.

Eligibility requirements

Personal loan lenders require borrowers to meet a variety of eligibility requirements. While they vary from one lender to the next, most will consider the following factors:

  • Location: Some lenders don’t serve borrowers in all states. To qualify, you must live in the service area of the lender. Proof of residence may be requested.
  • Citizenship: Most lenders require that you’re a U.S. citizen, permanent resident, or non-resident alien with a valid driver’s license or state ID.
  • Age: You must be of legal age in your state.
  • Bank account: You often need to have an active, verifiable checking or savings account.
  • Minimum credit score: Lenders pull credit scores from one or more of the consumer credit bureaus and often require your credit score to be above a certain minimum.
  • Credit history: Lenders consider information from your credit reports, such as your payment history, credit utilization, credit account lengths, recent credit inquiries, credit mix, and public records. Negative marks could increase your rate or make it harder to qualify.
  • A verifiable minimum income: Income is also a factor, as lenders need to know the monthly payment amount you can afford. A minimum amount of monthly or annual income may be required.
  • Income source: Lenders also often ask about the source of your monthly income (e.g., pension, employment, self-employment, etc.). In the case of employment, they may require a minimum amount of time at your job.

Many lenders list eligibility requirements on their websites so you can check them as you shop around. The quote process is also fairly fast with most lenders, and often doesn’t require a hard credit check. You can prequalify and find out within a few minutes if you're eligible or not. Keep in mind that the rates you’re offered during prequalification aren’t an offer of credit and may be higher when you actually apply. The lender will also conduct a hard credit check when you apply, which could temporarily ding your score.

Related: Personal loans for non-US citizens

Minimum credit score requirements

Personal loans are often unsecured, which means you don't need to pledge any collateral to borrow the money. Instead, lenders base approval largely on your credit profile and income. As a result, they may require you to have a credit score above a certain minimum.

Here's a look at minimum credit score requirements from a variety of personal loan lenders. These minimums may be on their own website or via personal loan marketplaces.

Lender
Minimum credit score
Achieve
620
Avant
550
Axos Bank
700 (via direct applications)
Best Egg
600
Discover
660
Happy Money
640
LendingClub
600 (via direct applications)
LendingPoint
660
LightStream
700
OneMain Financial
None
PenFed Credit Union
700
Reach Financial
640
SoFi
Does not disclose
Universal Credit
560
Upgrade
600
Upstart
300 (via direct applications)

How to raise your credit score fast

If you can increase your credit score before applying for a personal loan, you could potentially lower your interest rate, which could save you hundreds or even thousands of dollars over the term of your loan. The more time you have to do that, the better. But there are a few quick ways to improve your credit as well:

  1. Become an authorized user: If you have a family member or close friend who's willing to make you an authorized user on their credit card, you can benefit from their positive payment history and available credit. Both can have a big impact on your score. And since credit cards report monthly to the bureaus, you could see your credit utilization drop and your score rise within days or weeks.
  2. Ask for a credit limit increase: If you can get a higher credit limit on your current cards, you can quickly reduce your credit utilization, which can increase your score fast.  
  3. Report rent and utility payments: Services such as Experian Boost can report the regular payments you make for rent and utilities like streaming services, your cell phone bill, and other monthly bills. Review your options when choosing a rent-reporting service to see if it has a lookback period. Self is one example that reports rent, cell, and utility payments for the past 2 years for a flat fee of $49.95.
  4. Make on-time payments: It may take around 6 months to see an improvement in your score from on-time payments, but since this factor makes up 35% of your FICO score, it's well worth the ongoing effort.

How to get a personal loan

You can apply for a personal loan online with most lenders. Many have a prequalification process that precedes the application and lets you see an estimate of the rates you might qualify for.

If you prequalify, the lender will provide an estimate of the loan amount, rate, and term you may be eligible for based on your credit and profile, along with options for loan terms. As noted, prequalification only requires a soft credit check, so it won't count as a hard inquiry on your credit report. It also isn’t an offer of credit, so your final rate could be higher. By prequalifying, you can compare personal loans from multiple lenders without hurting your credit score.

Once you’ve identified the best personal loan, complete the loan application process with that lender. In the final stages, you’ll need to submit documentation to confirm your personal and financial information, such as pay stubs, utility bills, proof of employment, and tax returns. 

Upon approval, the lender will provide a loan agreement for your review. If it’s satisfactory, sign the agreement for the loan to be funded. The lender will let you know when to expect a direct deposit of the loan in your bank account. If you’re using a personal loan to consolidate debt, the lender may send funds to your creditors directly.

FAQ

How to get a low interest rate personal loan

You can get the best low interest rate personal loan by having excellent credit and, most importantly, shopping around to find the best deal. Each lender has different underwriting requirements, loan amounts, APR ranges, and fees — which means some lenders may offer you a lower interest rate and better terms than others.

What credit score is needed for a personal loan?

Credit scores play a large role in whether you can get approved for a personal loan. They also help lenders determine the amount you can borrow, the length of your repayment term, and your borrowing costs. The better your FICO credit score, the better your chances of getting the best personal loans.

How do I get a personal loan with bad credit?

To get a personal loan with bad credit, you’ll need to check out the minimum credit score that lenders require — and make sure it’s lower than yours. Also consider applying with a cosigner who can help you qualify for better rates and terms, or finding a lender that offers secured personal loans. Once you’ve found a few potential lenders, prequalify to compare rate quotes side by side to find the best deal.

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Meet the contributor:
Jessica Walrack
Jessica Walrack

Jessica Walrack is a freelance finance writer and journalist with over a decade of experience. During that time, she’s written hundreds of articles about loans, insurance, banking, mortgages, credit cards, budgeting, and taxes for well-known publications including CBS News MoneyWatch, USA Today, US News and World, Investopedia, and The Balance Money.

Fox Money

Fox Money is a property of Credible Operations, Inc., which is majority-owned indirectly by Fox Corporation. This material may not be published, broadcast, rewritten, or redistributed. All rights reserved. Use of this website (including any and all parts and components) constitutes your acceptance of Fox's Terms of Use and Updated Privacy Policy | Your Privacy Choices.

Fox Money is a property of Credible Operations, Inc., which is majority-owned indirectly by Fox Corporation. This material may not be published, broadcast, rewritten, or redistributed. All rights reserved. Use of this website (including any and all parts and components) constitutes your acceptance of Fox's Terms of Use and Updated Privacy Policy | Your Privacy Choices.