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Best Personal Loans of June 2024
Our top three picks for the best personal loans come from LightStream, SoFi and PenFed. To help you make an informed decision and find the best loan for your unique needs, we at the MarketWatch Guides team analyzed 33 of the country’s top personal loan lenders based on their rates, fees, features and more.
Though you can use a personal loan for nearly any purpose, over 40% of the 1,500 personal loan customers we surveyed used their funds to consolidate debt or renovate their homes. The best personal loans typically land in your account within days, have lower interest rates than credit cards and don’t require collateral — which means you’ll owe less in the long run and won’t have to put your property at risk.
Cheri Read is a former accountant turned professional personal finance writer. As someone who struggled as a single mom for many years, she’s passionate about helping others tame their finances and enjoy their lives. Her work has been featured in a variety of publications over the last decade, including Money Saving Mom and She Owns It. Cheri lives in West Texas and spends most of her free time reading books dedicated to financial freedom or checking out the latest new side hustle.
Andrew Dunn is a veteran journalist with more than a decade of experience in the business and finance arena. Before joining our team, Andrew was a reporter and editor at North Carolina news organizations including The Charlotte Observer and the StarNews in Wilmington. In those roles, his work was cited numerous times by the North Carolina Press Association and the Society of Business Editors and Writers. Andrew completed the business journalism certificate program from the University of North Carolina at Chapel Hill.
Brandon Renfro, Ph.D., CFP, is a financial planner with Belonging Wealth Management in Longview, Tex., and formerly served as a finance professor. He specializes in retirement income planning.
The best personal loans are from LightStream, SoFi, PenFed, Discover, Upstart, U.S. Bank, Upgrade and Wells Fargo. They all have low interest rates, flexible loan terms and notable customer service.
The best personal loan lenders don’t charge origination fees and offer discounts for automatic payments.
When you’re shopping, get prequalified with a few different lenders and look for the offer with the lowest APR and fewest fees.
Why You Can Trust the MarketWatch Guides Team
Here’s a breakdown of how we reviewed and rated top personal loan providers
33
Providers RatedOur team researched more than two dozen of the country’s most popular personal lenders, including large online companies like SoFi, big banks like Wells Fargo, and peer-to-peer lenders like Upstart.
660
Data Points AnalyzedTo create our rating system, we analyzed each personal loan company’s disclosures, licensing documents, marketing materials, sample loan agreements and websites to understand their loan offerings and terms.
41
Loan Features TrackedOur team regularly collects data on each company’s loan offerings and terms, such as minimum and maximum loan amounts, origination fees and discounts.
17
Professionals ConsultedBefore we began our research process, we consulted with financial advisors and industry experts to ensure our evaluations covered the banking product aspects that matter most to potential customers.
Best Personal Loan Lenders
LightStream
Our Top Pick
5.0
APR Range 6.99% to 25.49%Term Options 2 to 12 yearsLoans Offered $5K to $100K
Why LightStream Stands Out
Why LightStream Stands Out: LightStream has a best-rate guarantee, offering you a rate 0.1 percentage points lower than any other competitor you’ve been approved with. It also has a loan experience guarantee, where the company will pay you $100 if you’re not completely satisfied with your closing experience.
LightStream also has some of the best discounts on this list, especially an autopay discount of 0.50%. And in partnership with American Forests, LightStream plants a tree for every loan it makes.
Pros and Cons
ProsBest interest rates guaranteed: LightStream’s Rate Beat program guarantees an unsecured personal loan rate 0.1 percentage points less than any competitor’s approved loan offer.Longer loan terms: Loan terms are from two to 12 years, the widest range on our list.Same-day funding: Receive your funds the same day you’re approved in many cases.Discounts: Autopay discount of 0.50% and no prepayment penalties or origination fees.ConsHigher credit score needed to qualify: You need several years of credit history to qualify and a good to excellent credit score.No preapproval: LightStream doesn’t offer preapproval. You have to apply to see the interest rate you qualify for.
Who’s Eligible
To get a LightStream loan, you must have:
Credit score of 660 or higher
Sufficient income to make payments
Good payment history with few delinquent payments
SoFi
Best Customer Experience
4.9
APR Range 8.99% to 29.49%Term Options 2 to 7 yearsLoans Offered $5K to $100K
Why SoFi Stands Out
Why SoFi Stands Out: SoFi is very borrower-friendly: The lender will show you the rates you qualify for with no hit to your credit, give you discounts for autopay and direct deposit and fund your loan the same day you sign in most cases. SoFi also offers unemployment protection, so if you’re laid off you can potentially lower your payments and receive help finding your next gig.
Borrowers who miss their due date won’t be charged a late fee — a huge differentiator between SoFi and competitors like PenFed and Discover. And if you’re looking for a lender with excellent customer service, SoFi may be your best bet. It has 4.6 out of 5 stars on Trustpilot with over 7,000 reviews.
Pros and Cons
ProsLarge loan range: Loan amounts from $5,000 up to $100,000.Fast money: You can get funds the same day your application is approved.Discounts: SoFi offers a 0.25% discount for autopay, a 0.25% discount for direct deposit and no late fees.Unemployment protection: If you lose your job and it’s not your fault, SoFi may modify the terms of your loan to delay payments and provide job placement assistance.ConsOrigination fees: While you can opt for a loan without origination fees, to get the best rates you’ll need to accept origination fees of up to 6%, which is taken out of your loan proceeds.Limited loan use: Loans can’t be used for education or business expenses.
Who’s Eligible
To get a SoFi loan, you must have:
680 credit score or higher
Gainfully employment
Reached the age of majority for your state (usually 18)
Residence in one of the 29 states (or Washington D.C.) that SoFi serves
PenFed Credit Union
Best for Small Loans
4.8
APR Range 8.99% to 17.99%Term Options 1 to 5 yearsLoans Offered $600 to $50K
Why PenFed Stands Out
Why PenFed Stands Out: If you don’t need to borrow a large amount, PenFed may be a good option. Its minimum personal loan is only $600, while its maximum is $50,000. The maximum loan repayment term of five years is a tighter timeframe than some other lenders.
While other lenders only require you to apply for a loan, PenFed requires applicants to become credit union members to be eligible for a loan. But membership is available to anyone, and if you’re approved for a loan, PenFed will automatically create your membership.
Pros and Cons
ProsSmallest loan: PenFed offers a minimum loan of just $600.Preapproval: See your rates with no impact on your credit score.No fees: There are no origination fees or prepayment penalties.Co-borrowers welcome: If you don’t think you can qualify for a loan by yourself, add a co-borrower to your application.ConsShorter repayment terms: The maximum repayment term is five years – less than any other lenders on our list.No discounts: No automatic payment or direct deposit discounts are given.
Who’s Eligible
To get a PenFed loan, you must have:
Verifiable income
Ability to make payments
Solid employment history
Discover
Best for Low Rates
4.6
APR Range 7.99% to 24.99%Term Options 3 to 7 yearsLoans Offered $2.5K to $40K
Why Discover Stands Out
Why Discover Stands Out: Discover’s starting interest rate is one of the lowest on this list. It doesn’t charge origination fees and has a solid range of repayment terms from three to seven years.
If you’re using the loan to consolidate high-interest debt, Discover can streamline the process by sending money directly to your creditors to pay off your accounts. However, an interesting restriction for Discover personal loans is that you can’t use the money to pay off a Discover credit card.
Pros and Cons
ProsMonthly credit score: Discover is the only lender on this list to provide access to free FICO credit score updates.No upfront fees: There are no origination fees or prepayment penalties, although there is a $39 late payment fee.Fast funding: Get your money as early as the next business day.ConsSmaller loan range: The minimum amount you can borrow is a relatively high $2,500 and the maximum amount you can borrow is only $40,000.No discounts: Discover is one of only three lenders on our list that doesn’t offer an automatic payment discount.Minimum income requirement: You must earn at least $25,000 per year in household income to qualify for a loan.
Who’s Eligible
To get a Discover loan, you must have:
660 credit score or higher
Household income of at least $25,000
18 years of age or older
Upstart
Best for Bad Credit
4.4
APR Range 7.80% to 35.99%Term Options 3 or 5 yearsLoans Offered $1K to $50K
Why Upstart Stands Out
Why Upstart Stands Out: As a lending marketplace, you can find loans with several lenders through Upstart. While this is good for comparing options, it may result in texts, emails and phone calls from multiple lenders.
Upstart is open to lending to borrowers with credit scores as low as 300 or with no credit history at all. But even people with higher credit scores often find that the APRs they’re offered are competitive with other lenders on our list.
Pros and Cons
ProsBad credit OK: You can have a credit score of 300 or above and still qualify for a loan.More options: This lending marketplace will match you with several banks or credit unions.Borrow more with bad credit: Generous loan amount range compared to other bad-credit lenders — between $1,000 and $50,000.ConsHigh interest: Higher maximum rates than other lenders — up to 35.99% APR.Fees: Origination fees are up to 12%, the highest on our list.Too many calls: After applying, you may be inundated with calls, texts and emails from different lenders.
Who’s Eligible
To get an Upstart loan, you must have:
300 credit score or higher
Reached 18 years of age
45% DTI or lower (debt-to-income refers to your total monthly debt payments divided by your earnings)
No bankruptcies or negative public records in last 12 months
No current delinquencies on credit report
Fewer than six inquiries in the last six months
U.S. Bank
Best for Loyal Customers
4.4
APR Range 8.74% to 24.99%Term Options 1 to 7 yearsLoans Offered $1K to $50K
Why U.S. Bank Stands Out
Why U.S. Bank Stands Out: One of the most notable aspects of U.S. Bank is you can get your money within hours — as long as you’re a current U.S. Bank customer. If you need money quickly, U.S. Bank may be a no-brainer.
U.S. Bank rewards loyalty. If you’re a current U.S. Bank customer, you may be able to qualify for a higher loan amount than non-customers — $50,000 compared to $25,000. Plus, you’ll be able to get a 0.5% discount when setting up automatic payments from a U.S. Bank checking or savings account. You’ll get the best rates with a loan of $10,000 or higher combined with a credit score of 800 and automatic payments.
Pros and Cons
ProsNo required fees: U.S. Bank doesn’t charge origination fees and there are no prepayment penalties.Fast funding: You can get your funds within hours if you’re already a U.S. Bank customer, making U.S. Bank among the fastest funders on our list.ConsLow limits for non-customers: The maximum you can borrow as a non-U.S. Bank customer is $25,000.Excellent credit needed: As a non-customer, you’ll only be able to qualify for a loan with excellent credit (above 780) and a low debt-to-income (DTI) ratio. DTI measures your monthly debt obligations against your monthly income.
Who’s Eligible
660 credit score
Verifiable income
Ability to make payments
Upgrade
Best Discounts
4.3
APR Range 8.49% to 35.99%Term Options 2 to 7 yearsLoans Offered $1K to $50K
Why Upgrade Stands Out
Why Upgrade Stands Out: Borrowers who use Upgrade can get a discount if they directly pay off their debt with their personal loan or sign up for automatic payments. Unlike most other loan companies on this list, Upgrade is not a direct lender. It’s an online marketplace connecting borrowers to potential banks and credit unions, like Upstart.
But don’t be confused by the similar names — while Upgrade is designed primarily for borrowers with poor credit, like Upstart, it has longer terms, discounts and educational resources that make it worth exploring.
Pros and Cons
ProsGenerous repayment terms: Take between two and seven years to pay off your loan.Fast approval and funding: Get preapproved with no hit to your credit in minutes. When you’re approved, funds can be deposited into your account within one business day.Unsecured and secured options: If you can’t qualify for an unsecured loan, Upgrade also offers loans secured by your vehicle as an option.Credit health offering: Borrowers have access to Upgrade’s no-cost credit monitoring and education program called Credit Health.ConsHigh origination fees: Loans come with origination fees of 1.85% to 9.99%, and all loans are charged a fee.Marketing calls: You may get a lot of calls or texts from lenders if you consent to be contacted.Not available everywhere: Upgrade isn’t available in Iowa, West Virginia or the District of Columbia.
Who’s Eligible
620 credit score
Verifiable income
U.S. citizen, permanent resident or valid visa
Verifiable bank account
Wells Fargo
Best for In-Person Service
4.3
APR Range 7.49% to 23.24%Term Options 1 to 7 yearsLoans Offered $3K to $100K
Why Wells Fargo Stands Out
Why Wells Fargo Stands Out: If you want a personal loan from a bank you can visit in person, Wells Fargo may be your best option with branch locations in 36 states and Washington D.C. The bank has the most physical locations of any lender on this list — an ideal scenario if you’re looking for a more personal customer service experience.
While you can avoid many common personal loan fees, you’ll only get access to the autopay discount if you’re a Wells Fargo customer. Compared to other lenders, it may take longer to get your money — about one to three business days. Interest rates range from a low 7.49% to 23.24% with a 0.25% relationship discount included.
Pros and Cons
ProsNo fees: Wells Fargo doesn’t charge origination fees or prepayment penalties.To the max: The maximum loan amount of $100,000 is the highest on our list.Nationwide reach: Wells Fargo has the most physical branches of any recommended lender.ConsLimited autopay: You’re only allowed a discount when paying from a Wells Fargo bank account.Less flexible terms: Your term length depends on your loan amount.Slower payout: Getting your funds takes one to three business days, which is slower than most of our lenders.
Who’s Eligible
Existing Wells Fargo customer (for at least a year)
Verifiable income
Verifiable address
Ability to make payments
In the News: Personal Loans
Fed Rates Remain Steady
The Federal Reserve announced on June 12 that interest rates will remain at a 23-year high, as expected, but predicted it’ll likely cut those rates one time before the end of the year. The Fed’s next meeting is scheduled for July 30-31
This may not be great news for borrowers hoping personal loan rates would come down anytime soon, as the market will often follow the Fed’s lead in increasing or decreasing rates.
“This stance leaves personal loan lenders in a precarious position,” said Adam Koprucki, founder of RealWorldInvestor.com. “Personal loan rates will likely lag behind Fed decisions, meaning if the Fed cuts rates, we may see loan rates come down. But given the current environment, we’ll likely see levels hold for the foreseeable future.”
Best Personal Loan Interest Rates
Interest rate is a primary factor to consider when choosing a personal loan. This is the amount of money you’ll have to pay the lender in addition to the amount you borrow. The lower the interest rate, the less money you’re paying to borrow from the lender.
Personal loans typically have higher interest rates than other types of loans because they are usually unsecured. In other words, there’s no collateral backing the loan, which makes loaning money riskier for the lender.
Personal loan interest rates edged higher in 2023 as a result of Federal Reserve interest rate hikes driven by inflation. The Fed raises rates during periods of high inflation in an attempt to slow borrowing and spending, thus bringing prices down.
Our table lays out the average personal loan interest rates based on data we obtained from Credible. Your unique rate will be determined by the lender, and your credit score is only one of the factors taken into consideration for loan approval.
“I don’t think anyone should expect lower personal loan rates anytime soon. It’s looking less and less likely that the Fed will lower rates in either of the next few meetings. Meanwhile, lenders keep tightening personal loan requirements, and with inflation remaining stubborn, debt rising and delinquencies continuing to grow, that doesn’t seem likely to change either. Add it all up, and borrowers should expect interest rates to remain at or around their current levels for at least the next few months.”
“Most personal loans will have terms of 24 to 60 months, with strict payment schedules. This helps make sure you actually pay off the debt, versus keep making minimum payments like you could on a credit card.”
Ph.D., CFP, RICP, EA
“Because it accounts for all costs associated with a loan, not just the interest charged on the balance, APR is a better way to compare two loans.”
How to Apply for a Personal Loan
Personal loan applications are relatively simple, but it’s good to be prepared on what to expect and how to increase your odds of approval. It’s best to check your eligibility and gather personal documents before comparing offers across lenders.
You can check your eligibility for a personal loan by getting your credit report and score and prequalifying on lender websites. For more details on personal loan requirements, check out our guide here.
Once you’ve checked your eligibility, it’s time to gather the necessary documents for your application. The documents you need for a personal loan application will often vary by lender, but proof of income, identity and address are standard.
While a loan’s interest rate is an important factor, it’s not the only one. It’s also wise to consider repayment terms, fees and the lender’s reputation.
Personal Loan Calculator
Our personal loan calculator helps estimate your monthly payment and interest rate. Using the tool can be a helpful way to gauge whether you can comfortably afford to take out a new loan.
PERSONAL LOAN CALCULATOREnter your loan amount, loan term and interest rate to see your estimated monthly payments and total interest you'll pay.
LOAN INFORMATION
$10,000
$1,000$100,000
5 years
1 years9 years
8%
3%35%
Monthly Payment$202.76
PrincipalInterest
Total Principal Paid$10,000
Total Interest Paid$2,166
Total Paid$12,166
Show amortization schedule
Start Date
Estimated Payoff DateSeptember 6, 2028
Amortization schedule
Pros and Cons of Personal Loans
Pros
Speed: Many personal loans can often be applied for and acquired quickly.
Usage: They can usually be used for just about anything from medical emergencies to home improvement projects. Be careful as some lenders have limitations on what the money may be used for.
Fixed rates: Personal loans are usually predictable, offering fixed interest rates and monthly payments.
Cons
Credit crunch: If you have poor credit, personal loans can come with higher interest rates, increasing the overall repayment.
Fees: Personal loans often come with other charges, like prepayment penalties, which can add up.
Temptation to overspend: Once you take out a personal loan, you can use the money however you wish. You’ll need discipline to avoid spending unwisely, or to avoid racking up more credit card debt after you use a personal loan to pay off your accounts.
Alternatives to Personal Loans
If you’re wary about the higher APR of an unsecured personal loan, you might consider a secured personal loan or one of the following options.
If you own your home, consider a home equity line of credit (HELOC) or a home equity loan. While the application process is similar for both, a HELOC has a variable interest rate that changes with the market and allows you to borrow against your credit as you need, like with a credit card, and then pay it back over time. A home equity loan comes with a fixed interest rate and a lump-sum payout with a set repayment period, so you’ll pay the same amount back each month and your interest rate won’t change. While interest rates for these loans tend to be better than personal loans, the downside is that because the repayment period is so long, you’ll pay more in interest. In both cases, you use your home as collateral, so there is a risk of foreclosure if you cannot keep up with your payments.
If you need money to buy a specific item, like a new stove or a dining room table, consider a store credit card. Sometimes, these cards will have special financing offers that allow you to pay off the item at 0% APR for a set amount of time. Be careful, though: interest will accrue from the start of your repayment period and if you don’t pay the entire amount in the promotional window, you’ll be charged the entire amount of accrued interest. Calculate exactly how much you need to pay back each month to pay off your principal before the special financing period ends; often, once this period ends, the interest rate will be extremely high.
While credit card interest rates are generally higher than personal loan rates, they frequently offer teaser rates that could get you through a pinch. If you anticipate being able to pay off the principal you borrowed before the 0% introductory period ends, usually within 12 to 18 months, a credit card might be a better option. You need good to excellent credit to qualify for these cards. Again, calculate carefully to make sure you’ll pay off your credit card debt before the 0% interest rate ends.
Kyle Enright, Personal Loans expert at Achieve Lending, recommends talking to a lender who can evaluate your personal financial situation and will make the best recommendation for you, even if that’s not a personal loan. He recommends independent lenders, especially if you have a unique financial situation. “It can be very helpful to find a lender who will discuss fees openly, and work with a borrower to calculate overall interest savings,” Enright said. “Plus, independent lenders can use different criteria than a traditional bank or credit union in their decisions.”.
What Are Personal Loans Used For?
Personal loans are typically unrestricted, meaning borrowers can use them for most any legal purpose, however, some uses are more common than others. Two of the most popular personal loan uses are debt consolidation and home improvements.
In a 2023 survey by the MarketWatch Guides team, we found that more than two in five individuals said their primary reason for taking out a personal loan was for one of those two reasons. Our average loan amount for survey respondents with good credit (670 to 739) was roughly $17,000, which would be a monthly payment of $581.02 with a 36-month repayment term and 14% APR.
Debt Consolidation
21.2%
Debt consolidation is the most common reason individuals take out personal loans. These can be beneficial as you can often receive a lower interest rate on a debt consolidation loan than the average rate of your other loans or credit cards – saving you money over the long term.
Home Improvements
20.1%
More than 20% of people in our survey took out a personal loan for a home renovation or remodel. While a home equity loan or home equity line of credit often makes more sense for home renovations, a personal loan involves less paperwork and you can get your funds faster.
Car Financing or Repairs
18.8%
Our survey showed that 18.8% of people took out personal loans for car financing or repairs. Since a personal loan can be used for anything, using it to finance a car isn’t unheard of, especially if you can get a better rate than with an auto loan. And using it for auto repairs may be necessary in some emergencies.
Other
16.3%
Only 2.1% of respondents chose “other” as their reason for taking out a personal loan. In certain emergencies, a personal loan may be a good option. They’re often less expensive than credit cards and can make sense if you’re in a position to get a decent interest rate.
Everyday Bills
14.5%
According to the MarketWatch Guides survey, about 14% of people use personal loans to cover everyday expenses. This may not be the best financial strategy since you’ll have an added interest expense on top of your current bills, but it may be necessary. If you’re struggling to make ends meet, a personal loan could be cheaper than a credit card, depending on your credit situation.
Medical Expenses
9.1%
Nearly one in 10 of people in our survey used a personal loan for medical expenses. If you need a loan to cover dental work, surgery or a hospital stay, a personal loan can offer lower rates than a credit card.
21.2%Debt Consolidation
20.1%Home Improvements
18.8%Car Financing or Repairs
16.3%Other
14.5%Everyday Bills
9.1%Medical Expenses
Debt Consolidation
Debt consolidation is the most common reason individuals take out personal loans. These can be beneficial as you can often receive a lower interest rate on a debt consolidation loan than the average rate of your other loans or credit cards – saving you money over the long term.
Home Improvements
More than 20% of people in our survey took out a personal loan for a home renovation or remodel. While a home equity loan or home equity line of credit often makes more sense for home renovations, a personal loan involves less paperwork and you can get your funds faster.
Car Financing or Repairs
Our survey showed that 18.8% of people took out personal loans for car financing or repairs. Since a personal loan can be used for anything, using it to finance a car isn’t unheard of, especially if you can get a better rate than with an auto loan. And using it for auto repairs may be necessary in some emergencies.
Other
Only 2.1% of respondents chose “other” as their reason for taking out a personal loan. In certain emergencies, a personal loan may be a good option. They’re often less expensive than credit cards and can make sense if you’re in a position to get a decent interest rate.
Everyday Bills
According to the MarketWatch Guides survey, about 14% of people use personal loans to cover everyday expenses. This may not be the best financial strategy since you’ll have an added interest expense on top of your current bills, but it may be necessary. If you’re struggling to make ends meet, a personal loan could be cheaper than a credit card, depending on your credit situation.
Medical Expenses
Nearly one in 10 of people in our survey used a personal loan for medical expenses. If you need a loan to cover dental work, surgery or a hospital stay, a personal loan can offer lower rates than a credit card.
Key Considerations When Choosing a Lender
APR is the total amount of interest you pay on a balance. It’s the interest rate plus fees. Our recommended lenders offer an APR of 7.49% to 35.99%. Generally, the higher your credit score, the better rate you’ll qualify for.
For an unsecured personal loan (a loan where you don’t put up collateral), you generally need at least a 640 credit score and less than a 50% DTI ratio. You need to show a government ID, proof of residence and your last paystub.
Usually, you’re not able to defer your loans if you lose your job. However, your lender may be willing to work with you if you’re likely to be able to get a new job quickly. SoFi even has a program specifically to help people who lose their jobs, offering to pause your payments and help you find new employment.
Some lenders charge you origination fees. These fees are taken out of the money you borrow, reducing the total sum you get. The most competitive lenders don’t charge origination fees.
Our recommended lenders have repayment terms of up to 12 years. Most lenders offer repayments from one year to seven years, but how each lender decides what terms are available are unique to each. You usually can choose from a range of repayment terms.
Many lenders on our list do offer discounts for autopay. These typically range from 0.25% to 0.50%. LightStream, SoFi, Upgrade, Wells Fargo, U.S. Bank and Universal Credit all offer autopay discounts.
The Bottom Line on Personal Loans
By comparing multiple lenders, you’re more likely to find the best personal loan for your unique needs and financial situation. Gather quotes from at least three lenders and look for ones that provide a rate range without requiring a full credit check.
Common Questions About Personal Loans
To qualify for a personal loan with most lenders, you should have a credit score in the 600 or higher range. But if you want the lowest possible interest rates, you’ll need a score of 670 or higher. Also, having a steady employment history and income source may be considered along with your credit score in determining your rate.
Most big banks, whether online-only or traditional brick-and-mortar, have an easy process to apply for and receive a personal loan. If you are already with a certain financial institution, you may receive discounts for also getting a loan through them. As with any personal finance decision, researching your options is crucial to picking the best one for you. On our list above, there is a mix of both traditional and online-only lenders.
If you have a good to excellent credit score and a solid DTI ratio, it should not be difficult to secure a personal loan. If you have poor credit, it can be more difficult, and your rates will be higher, but it is not impossible. It’s best to shop around for options that best fit your circumstances.
Our Methodology for Ranking the Best 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.
Cheri Read is a former accountant turned professional personal finance writer. As someone who struggled as a single mom for many years, she’s passionate about helping others tame their finances and enjoy their lives. Her work has been featured in a variety of publications over the last decade, including Money Saving Mom and She Owns It. Cheri lives in West Texas and spends most of her free time reading books dedicated to financial freedom or checking out the latest new side hustle.
Andrew Dunn is a veteran journalist with more than a decade of experience in the business and finance arena. Before joining our team, Andrew was a reporter and editor at North Carolina news organizations including The Charlotte Observer and the StarNews in Wilmington. In those roles, his work was cited numerous times by the North Carolina Press Association and the Society of Business Editors and Writers. Andrew completed the business journalism certificate program from the University of North Carolina at Chapel Hill.
Brandon Renfro, Ph.D., CFP, is a financial planner with Belonging Wealth Management in Longview, Tex., and formerly served as a finance professor. He specializes in retirement income planning.
