Best Online Personal Loans

Online lenders can offer quick access to funds without the need to visit a bank or credit union, and some are able to fund your loan within 24 hours of approval.

In part, this is because more online lenders use alternative data to qualify you quickly. This tech-driven online application process has contributed to the $232 billion in unsecured personal loan balances American consumers had in 2023, according to the Federal Reserve Bank of New York.

Explore some of the best online loans and their benefits, and find out how to compare and apply for them.

• Best overall
• Best for fair credit
• Best for no origination fees (and low rates)
• Best quick loans for good credit
• Best debt consolidation loans for bad credit
• Best home improvement loans and low rates
• Best for high close rates if pre-approved
• Best for large personal loans
• Best for no credit history
• Best online experience
• Best for all credit types
• Best for consolidating credit card debt
• Best bad credit personal loans
• Best fast personal loans for all credit types
• Best for interest-free merchant financing
• Best for fast funding and fair credit
• Best for short-term loans and same day funding

Compare online personal loan rates

Online personal loans are best for people who want fast funding times, fixed interest rates, long repayment terms, large loan amounts—as well as lower annual percentage rates (APRs) relative to credit cards.

What is an online loan?

An online loan is just what it sounds like—a loan that you can research and apply for through an online lender rather than through a brick-and-mortar business, like a local bank or credit union.

Personal loans are widely available online and are a type of unsecured loan, meaning collateral is not required, that can be used for various purposes, like funding home renovations, consolidating debt and large purchases.

Online personal loans advertise convenience, which often means faster approval and funding times relative to their brick-and-mortar counterparts. Through online loan marketplaces, you can compare lender rates and eligibility criteria side by side. You may also be able to prequalify with multiple lenders simultaneously to see rate estimates without impacting your credit score.

Just note that when you formally apply for a loan, most lenders will conduct a hard credit check, which could temporarily ding your score.

Not all online lenders are actual banks; many of them are financial technology companies that partner with banks to offer loans and other financial products. This shouldn't affect the way you apply for or receive an online loan, but it's important to make sure your lender's partnered bank, if applicable, is FDIC insured. The FDIC, or Federal Deposit Insurance Corporation, protects consumers against predatory and discriminatory lending practices and bank failures.

How do online personal loans work?

When you get a personal loan online, you'll receive a lump sum, often in your bank account, that you can use as you see fit within the scope of the loan's purpose. You'll then make monthly payments until you pay back the entire loan plus interest.

Loan terms

Loan amounts typically range up to $50,000, but some lenders offer $100,000 personal loans to highly-qualified borrowers. Repayment terms vary between one and seven years for most loan purposes. Home improvement loans are sometimes available with repayment terms well over 10 years, depending on the lender.

Personal loan rates

Annual percentage rates (APRs) vary by lender. Some lenders, like Discover, charge as little as 7.99% for highly-qualified borrowers, but APRs can range as high as 35.99%. However, the average APR on three-year loans was 12.75% for borrowers with FICO scores over 780 through the Credible marketplace.

The APR a lender offers you depends on several factors, like your credit score, credit history, income and employment history.

Related: Best Banks for Personal Loans

Pros and cons of online loans

Consider the following benefits and drawbacks of applying for personal loans online.

Pros

• Streamlined comparison of loan options: You can quickly compare loan rates and terms from multiple lenders, especially via a loan marketplace.
• Prequalification: You can often prequalify with online lenders to view potential repayment terms and interest rates without affecting your credit.
• Quick funding: Some online lenders process your application the same day you submit it, with same-day funds available from certain lenders like SoFi and Lightstream.
• Convenient online application: Applying for a loan online could take less than 30 minutes, and you can apply from your home computer or mobile device with no need to stop by a bank in person.
• Available to non-bank customers: You often don't need to be a bank customer or credit union member to apply for an online loan.
• Less stringent qualification criteria: Online loans sometimes have more lenient requirements than in-person loans, so you may be able to qualify even if you don't have a high income or excellent credit score.

Cons

• Lack of personalized service: Online lenders often don't provide the same amount of support you can get from visiting a bank in person to complete an application.
• Requires sharing information online: You'll need to upload documents, like pay stubs or employment records, and personal information, like your Social Security number, through an online portal to complete an online loan application.
• No access to bank or credit union perks: Some banks and credit unions offer exclusive loan perks, like better terms, higher loan amounts or a simpler application process to customers, which you won't be able to access when applying with an online lender.
• You may not work directly with a bank: If transacting directly with a bank is important to you (as opposed to a fintech intermediary), consider online banks like Discover and SoFi or, if you're currently a customer, Wells Fargo and Citi.

How to get a personal loan online

1. Check your credit

Before you apply for an online loan, check your credit score. Minimum credit score requirements vary by lender. Many lenders require that you have good credit (a FICO score of 670 or above) to qualify. The higher your score, the more favorable terms you may be able to get.

2. Research lenders and compare quotes

Next, research online lenders to find those most willing to approve your application based on minimum credit and income requirements, as well as those that offer the loan amount and repayment term you need. The lender's advertised APR range is important, but it's more important to compare quotes via the prequalification process—as this provides a better glimpse of the rate you might actually get.

Also compare lender ratings on sites like Trustpilot and the Better Business Bureau (BBB) and look for patterns of customer complaints.

3. Apply

Once you've prequalified with several lenders, choose the best and apply. Application is typically straightforward and quick, especially if you've already prequalified with that lender. Be prepared to provide documentation to support your income, identity, and residence. At this stage, you'll need to authorize a hard credit pull with most lenders.

4. Review loan documents

If approved, the lender will send you the loan agreement to review. Ensure that key loan terms meet expectations (APR, repayment period, monthly payment, fees) prior to signing. Once you sign and return to the lender, you'll receive the loan proceeds—often within the next two business days.

Best online personal loans

SoFi: Best overall

Upgrade: Best for fair credit

Discover: Best for no origination fees (and low rates)

Splash: Best quick loans for good credit

Universal Credit: Best debt consolidation loans for bad credit

LightStream: Best home improvement loans and low rates

Best Egg: Best for high close rates if pre-approved

BHG Financial: Best for large personal loans

Citi: Best for no credit history

LendingClub: Best online experience

Avant: Best for all credit types

Happy Money: Best for consolidating credit card debt

OneMain Financial: Best bad credit personal loans

Upstart: Best fast personal loans for all credit types

LendingUSA: Best for interest-free merchant financing

Reach Financial: Best for fast funding and fair credit

Zable: Best for short-term loans and same day funding

Methodology

Buy Side from WSJ gathered over 700 data points on two dozen partner lenders to identify the best online loans for different types of borrowers. We evaluated 24 lenders based on the online customer experience, minimum fixed APRs, maximum loan amounts, funding times, loan terms, fees, discounts and whether cosigners are accepted.

Our team of experts gathered information from each lender's website, customer service department, in-house resources and via email support. Each data point was verified to make sure it was accurate at the time of publication. All lenders are financial partners of Buy Side from WSJ.

How to compare online loans

Keep the following factors in mind when comparing online loans.

• Lender requirements: Most lenders outline their eligibility criteria, like minimum credit score or income. You may be able to find this in the fine print on the lender's landing page or in the FAQ. Research this information to find out what lenders you may not qualify for a loan with.
• Lender reviews: Check online reviews on trusted sites, like the BBB, to see what experiences other consumers have had.
• Loan amounts: Make sure a lender offers loans for the amount you need before applying. Online loans usually range from $1,000 to $50,000, but some lenders offer as little as $600 or as much as $200,000. Keep in mind that you may not qualify for a lender's maximum available loan amount.
• Repayment terms: Personal loans often have repayment terms from 1 to 7 years, but repayment terms vary by lender. While you might have a lower monthly payment on a seven-year loan, you'll likely pay more interest than you would if you paid your loan over one year.
• APRs: A lower APR, which includes interest and any upfront fees, could reduce your borrowing costs for the loan.
• Fees: While lenders commonly charge late fees if you miss a loan payment, some lenders charge fees upfront. Origination fees can range up to 12% of the loan amount, depending on your credit and the lender, and reduce the amount you receive. They're accounted for in the APR.
• Funding times: Check how long a lender typically takes to fund loans. Some online lenders are able to fund as soon as same-day or within 24 hours after approval. But some may take up to five business days to fund your loan.

Online personal loan requirements

Lenders base your qualification on several factors that outline your financial picture and how you use credit. Personal loan requirements differ between lenders, but most consider the following when reviewing your loan application.

Credit score and history

When verifying your eligibility for a loan, lenders evaluate your credit history, which includes your history of on-time payments, mix and length of credit accounts and how much debt you have. These factors also make up your credit score, which lenders use to approve or deny your application.

Debt-to-income ratio

Debt-to-income ratio, also known as DTI, shows lenders how much of your monthly income goes toward debt.

You can determine your DTI by adding your monthly debts, dividing that number by your gross monthly income and multiplying the result by 100. For instance, if you make $8,000 monthly and have $2,000 in debt, your DTI is 25%. Generally, lenders prefer a DTI of 36% or lower.

Income and employment

Reliable income and steady employment may help you qualify for an online loan. If you have irregular income, like business income that fluctuates monthly, your lender might request two years of tax returns for income verification. Otherwise, you can often use your pay stubs or a letter from your employer for income and employment verification.

Cosigner or collateral

If you're unable to qualify for a loan on your own, your lender might suggest that you add a cosigner to your application. Lenders consider a cosigner's credit history along with yours, so a well-qualified cosigner could bolster your application.

Alternatively, you could apply for a secured loan, which requires collateral—such as a car or property you own—to back the loan. Secured loans usually have less stringent requirements, so you may be able to qualify with a lower credit score or income. However, you risk losing your collateral if you default on the loan.

FAQ

What credit score do you need for a personal loan?

Many lenders like to see a FICO score of 670 or better. Generally, the higher your credit score is, the lower your rate. However, lenders also consider your income, employment history and DTI, which may help you qualify for a loan even if you have a lower credit score.

Are online lenders safe?

Legitimate online lenders are transparent with consumers and provide a secure application process to protect your information online. To help determine whether an online lender is safe , check your state's bank regulator to see if the lender is registered in your state. You can read BBB reviews to learn more about other consumers' experiences.

Can I get a personal loan online with bad credit?

You might qualify for a personal loan online if you have bad credit, especially if you have a cosigner or can offer collateral to improve your application. Look for lenders that work with people with bad credit, like Upstart and LendingUSA.

What is the easiest personal loan to get online?

Each lender sets its own eligibility criteria for loans, so ease of approval can vary. However, specific features from some lenders can make the process easier, like fast funding, lenient eligibility criteria and quick applications.

For example, if you need a personal loan as soon as possible, you can apply with a lender offering same-day funding, like SoFi or Alliant. If you have bad credit, you might find it easier to get approved by a lender that accepts borrowers with credit scores of 600 or below, like Avant and Upstart. Or, if you want a quick, straightforward application process and multiple loan options to choose from, consider applying with a lender like LendingClub.