- Unemployment protection available.
- Interest rate discounts.
- High loan amounts.
- Long loan terms.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.
Updated June 20, 2024
In a nutshell
Personal loans are generally unsecured loans in amounts from a few thousand to tens of thousands of dollars that people use for various purposes. Some uses for personal loans include consolidating debt, covering emergency expenses and for larger purchases. Because personal loans are usually unsecured, they come with higher interest rates than secured loans.
Best personal loans for 2024
| Lender | Best for | APR | Min. credit score | Loan amount |
|---|---|---|---|---|
SoFi | Unemployment protection | 8.99% to 25.81% | 690 | $5,000 - $100,000 |
Upgrade | Poor credit | 8.49% to 35.99% | 580 | $1,000 to $50,000 |
Upstart | Thin credit | 6.4% - 35.99% | All credit scores considered | $1,000 - $50,000 |
Lending Point | Rate discount | 7.99% to 35.99% | 600 | $2,000 - $36,500 |
Happy Money | Paying off credit card debt | 11.72% to 17.99% | 640 | $5,000 to $40,000 |
Avant | Early repayment | 9.95% - 35.99% | 580 | $2,000 - $35,000 |
LightStream | Repayment term options | 7.49% - 25.49% | Good or Excellent | $5,000 - $100,000 |
PenFed | Small loan amounts | 8.49% to 17.99% | 580 | Up to $50,000 |
Lending Club | Joint applicants | 9.57% to 35.99% | 600 | $1,000 to $40,000 |
Best Egg | Secured loans | 8.99% - 35.99% | 640 | $2,000 - $35,000 |
Discover | Credit monitoring | 7.99% to 24.99% | 660 | $2,500 to $40,000 |
Achieve | Debt consolidation | 8.99% - 35.99% | 620 | $5,000 - $50,000 |
Our top personal loan recommendations
SoFi: Best for unemployment protection
Unemployment protection
SoFi Personal Loans
Unemployment protection
SoFi Personal Loans
APR
8.99% to 25.81%
Loan amount
$5,000 - $100,000
Term
24 to 84 months
Fees
No late fees, origination or application fees
Pros:
Cons:
- High minimum loan limit.
- Not available in 21 states.
When you take out a personal loan with SoFi, you get access to a special Unemployment Protection program. The company will help modify your monthly personal loan payments and provide job placement assistance if you lose your job through no fault of your own. This protection can help keep your account in good standing, so you avoid a potential credit ding while you’re unemployed.
You can do a prequalification on SoFi’s website and receive offers within a minute. Some of those offers may include an origination fee, but it’s in exchange for a lower interest rate. If you move forward with the application and get approved, you may receive the funds the same day as your approval.
SoFi earned an A+ grade from the Better Business Bureau and a strong Trustpilot score of 4.6 out of 5 stars.
Upstart: Best for borrowers with a thin credit file
Thin credit
Upstart
Thin credit
Upstart
APR
6.4% - 35.99%
Loan amount
$1,000 - $50,000
Term
36 or 60 months
Fees
0% to 8%
Pros:
- No prepayment penalties.
- Flexible lending criteria.
Cons:
- May charge origination fee.
- No option for joint loans or co-signers.
- Limited loan term options.
Upstart says it may accept applicants who lack enough credit history to generate a credit score, and in most states those with the lowest possible FICO score of 300 may qualify as well.
Upstart does review your credit profile when making a lending decision, but it uses advanced underwriting software to review alternative data like education, work experience and employment to help evaluate borrowers. As a downside, you may have to pay a higher interest rate if you have a low or thin credit score. And the financial institution does charge several fees that add to your borrowing costs.
You can do a prequalification with Upstart, and if you qualify for a personal loan, you may receive your funds within one business day of closing. This loan provider earned an A+ grade with the Better Business Bureau and a near-perfect Trustpilot score of 4.9 out of 5 stars.
Upgrade: Best for poor credit
Poor credit
Upgrade
Poor credit
Upgrade
APR
8.49% to 35.99%
Loan amount
$1,000 to $50,000
Term
24 to 84 months
Fees
Origination fee, 1.85% - 9.99%
Pros:
- Long repayment terms.
- No prepayment penalties.
- Offers interest rate discounts.
- Secured and joint loans available.
- Offers prequalification with soft credit pull.
Cons:
- Charges origination fees.
- Available only in 31 states.
It can be difficult to qualify for a personal loan with an affordable interest rate if you have poor credit. But with Upgrade, you may qualify with a credit score of 560 or higher. The loan provider also offers long repayment terms that can help lower your monthly payments. Though you may pay more interest over the life of the loan, this feature can help put breathing room in your budget. And you have the flexibility to pay more toward the principal anytime without being penalized.
One major downside to Upgrade is the origination fee, which eats into the funds you receive. That may mean you need to take out a larger loan to get the amount you need.
Upgrade earned an A+ grade from the Better Business Bureau and a Trustpilot score of 4.4 out of 5 stars.
LendingPoint: Best for rate discounts
Rate discounts
Lending Point Personal Loans
Rate discounts
Lending Point Personal Loans
APR
7.99% to 35.99%
Loan amount
$2,000 - $36,500
Term
24 to 72 months
Fees
Up to 10% origination fee
Pros:
- May lower your rate after making on-time payments.
- Turnaround time of one business day.
- Long loan terms available.
- Helps you monitor your credit.
- Offers prequalification with soft credit pull.
Cons:
- May charge origination fee.
- Low loan limits.
- Does not offer loans in Nevada and West Virginia.
- Does not offer joint loans.
It’s always a good idea to make bill payments on time and in full. Doing so can keep your account in good standing, help you avoid late payments and boost your credit score. And with LendingPoint, it can also help you qualify for a better interest rate. The company says it will review your account after six months and may lower your rate if you’ve been making on-time payments.
Plus, all borrowers get access to several benefits like multiple repayment term options, next-day funding and an app to help you monitor your credit. LendingPoint also has a strong reputation with an A+ rating with the Better Business Bureau and a Trustpilot score of 4.8 out of 5 stars.
Happy Money: Best for paying off credit card debt
Origination fee
Happy Money Personal Loan
Origination fee
Happy Money Personal Loan
APR
11.72% to 17.99%
Loan amount
$5,000 to $40,000
Term
24 to 60 months
Fees
Origination fee, 1.50% - 5.50%
Pros:
- Website is transparent and lists credit requirements.
- No application fees, late fees or prepayment penalties.
- Interest rates may be lower compared to credit cards.
Cons:
- Loans not offered in Massachusetts and Nevada.
- Doesn’t offer joint applications.
- Loans can only be used for paying off credit cards.
- High minimum loan limit.
- Turnaround time of three to six business days.
Happy Money’s loans are designed for consolidating credit card debt at a lower-than-average APR. The maximum Happy Money rate is just under 18%, which is less than the national credit card average of 21.47%. Rolling your credit card debts into one of these loans can help you save on interest costs without paying application fees or prepayment penalties.
There are some drawbacks to working with this loan provider, though. Loan funds typically take three to six days to clear, which is a longer timeline compared to other providers. And while Happy Money earned an A+ rating with the Better Business Bureau, it earned a slightly less impressive Trustpilot score of 3.9 out of 5 stars.
Avant: Best for early repayment
Early repayment
Avant
Early repayment
Avant
APR
9.95% - 35.99%
Loan amount
$2,000 - $35,000
Term
12 to 60 months
Fees
Administration fee, 4.75%
Pros:
- Administrative fee may be partially refundable.
- Borrowers with fair credit may qualify.
- Turnaround time of one business day.
- Offers prequalification with a soft credit pull.
Cons:
- May pay an administrative fee.
- No co-signed or joint loans available.
Some personal loan providers charge origination fees ranging up to 10% along with penalties for repaying your debt early. While Avant does charge an origination fee, you could benefit from early repayment. That’s because if your administration fee is over 5% of the initial loan amount, Avant may refund it when you repay the loan in full ahead of schedule. This loan is a good choice if you think you’ll have extra funds to put toward your debt.
Avant has earned an A grade from the Better Business Bureau and an excellent customer score of 4.6 with Trustpilot.
However, this company isn’t a good fit if you’re looking to add someone to your account, since Avant doesn’t allow co-signers or co-borrowers.
LightStream: Best for longer repayment term options
Longer repayment term options
LightStream
Longer repayment term options
LightStream
APR
7.49% - 25.49%
Loan amount
$5,000 - $100,000
Term
24 to 144 months
Fees
None
Pros:
- Rate Beat Program.
- Allows co-applicants.
- Some loans offer long repayment terms.
- No fees or prepayment penalties.
- Funds loans same day in some cases.
Cons:
- Poor customer service reviews.
- Does not offer prequalification tool.
- High minimum loan amount.
LightStream offers some of the longest repayment terms in the industry, with options ranging up to 144 months on some of its loans. This feature may help you afford a larger amount since the longer term will lower your payments. And because there are no prepayment penalties, you could devote more to the principal (and therefore save on interest) when you have the extra funds available.
The drawback to working with this loan provider is the negative customer service reviews. It earned an A+ grade with the Better Business Bureau but a poor Trustpilot score of 1.7. Users mention difficulties getting approved for a loan — even with good credit — or getting prequalified and then having their official loan application rejected.
PenFed Credit Union: Best for small loan amounts
Small loan amounts
PenFed Personal Loan
Small loan amounts
PenFed Personal Loan
APR
8.49% to 17.99%
Loan amount
Up to $50,000
Term
Up to 60 months
Fees
Pros:
- Low APRs.
- No origination fee.
- Full bank services available.
- Non-members can apply.
- Allows co-borrowers.
- Funds loans within 1 - 2 business days after verification.
- Offers prequalification with a soft credit pull.
Cons:
- High late fees.
PenFed Credit Union offers personal loans ranging from $600 to $50,000. The low minimum makes PenFed a great fit when you need to borrow a small amount. With other loan providers, you may end up borrowing more than you need just to meet a minimum such as $5,000. The higher loan amount would also increase any origination fee you pay.
PenFed has a long list of other upsides, too, including quick funding, a low starting APR and no origination fee. You’ll need to join the credit union during the application process, but anyone can join when they open a savings account and deposit at least $5.
PenFed has earned an A+ grade from the Better Business Bureau and a Trustpilot score of 4.4 out of 5 stars.
LendingClub: Best for joint applicants
Joint applicants
Lending Club Personal Loan
Joint applicants
Lending Club Personal Loan
APR
9.57% to 35.99%
Loan amount
$1,000 to $40,000
Term
24 to 60 months
Fees
3% - 8% origination fee; late fee
Pros:
- Joint loans available.
- Available in all states and Washington, D.C.
- No prepayment penalties.
- Offers prequalification with a soft credit pull.
Cons:
- Some restrictions on loan uses.
- Charges an origination fee.
Applying for a personal loan with a creditworthy co-borrower may increase your approval chances and lower the interest rate you pay. LendingClub is one of the few loan providers that offers joint applications, so it’s a good fit if you want to go this route.
Just be sure the co-borrower understands how a joint application works. Both applicants are on the hook for making monthly payments — and if the loan goes into default, it can negatively impact both borrowers’ credit scores.
LendingClub has earned an A+ grade from the Better Business Bureau and a Trustpilot score of 4.7 out of 5 stars.
Best Egg: Best for secured loans
Secured loans
Best Egg
Secured loans
Best Egg
APR
8.99% - 35.99%
Loan amount
$2,000 - $35,000
Term
36 or 60 months
Fees
Origination fee, 0.99% to 8.99%
Pros:
- Secured loans available.
- Offers prequalification with soft credit pull.
- Funds loans in as little as 24 hours.
Cons:
- Not available in the District of Columbia, Iowa, West Virginia or Vermont.
- Origination fee can be high.
Best Egg offers solid personal loans with long repayment terms, a low minimum loan limit and a quick funding timeline. While its maximum APR is on the higher end, you may be able to lower your rate by taking out a secured loan. The company says borrowers can save as much as 20% off their APR with this option. You use the items in your home, such as fixtures and cabinetry, as collateral.
Plus, Best Egg has a strong reputation with an A+ rating from the Better Business Bureau and an excellent rating on Trustpilot.
The biggest drawback to working with this company is the origination fee, which can go up to 8.99% and eats into the funds you receive.
Discover: Best for credit monitoring
Credit monitoring
Discover Personal Loan
Credit monitoring
Discover Personal Loan
APR
7.99% to 24.99%
Loan amount
$2,500 to $40,000
Term
36 and 84 months
Fees
Late fee, $39
Pros:
- Long repayment terms.
- Low minimum loan limit.
- No prepayment penalties.
Cons:
- Low maximum loan limit.
- Poor customer service reviews.
When you get a Discover personal loan, you also get access to important credit monitoring tools that include a free FICO score and details from your TransUnion credit report. Discover’s personal loans also come with long repayment term options, a low minimum loan limit and no prepayment penalties.
Discover earned an A+ grade from the Better Business Bureau but a poor Trustpilot score of 1.9 out of 5 stars. Some reviewers reported problems surrounding Discover’s credit card autopay feature.
Achieve: Best for debt consolidation
debt consolidation
Achieve
debt consolidation
Achieve
APR
8.99% - 35.99%
Loan amount
$5,000 - $50,000
Term
24 to 60 months
Fees
Origination fee, 1.99% to 6.99%
Pros:
- Rate discounts available.
Cons:
- Not available in all states.
- Origination fee.
If you take out an Achieve personal loan and use at least 85% of the funds to directly pay off existing debt, you could qualify for a lower interest rate. Achieve may also reduce your interest rate if you add a well-qualified co-borrower to the loan and show proof of sufficient retirement savings.
How we chose the best personal loan providers
The best personal loans allow you to borrow the money you need at an affordable rate. Choosing the best personal loan provider — one with a strong reputation and a good product — can ensure you start out on the right foot. On this list, we chose loan providers that:
- Accept fair or good credit.
- Charge relatively affordable APRs.
- Offer several repayment term options.
- Set high loan limits to ensure you can borrow the amount you need.
- Have a strong reputation for customer service.
- Fund their loans quickly.
Choosing the best personal loan provider: Where to begin
Finding a good personal loan provider can help ensure you get the loan you need and the customer support to guide you through the process. Here are a few steps you can take to find the loan provider that meets your needs:
Check the provider’s reputation
Third-party review websites like Trustpilot can tell you a lot about whether users are generally satisfied and how the company handles complaints. National surveys from reputable companies like J.D. Power can also show you how the loan provider stacks up against competitors.
Look through the lender’s offerings
Before you get prequalified or submit an application, it’s important to know whether the company has what you’re looking for. Visit the provider’s website to check the menu of loan offerings, how much you can borrow, and the costs involved including APR and fees. And if the loan provider restricts how you can use the funds, consider whether the loan still meets your needs.
Do a prequalification
It’s helpful to know whether you fit the lender’s general qualifications before you apply for the loan. Look for an online prequalification tool, where you enter a few pieces of information and consent to a soft credit pull that won’t affect your credit. The lender uses this information to determine your offers.
Related: How to prequalify for a personal loan
Pros and cons of personal loans
Personal loans can help you borrow money for nearly any purpose, but they come with a few downsides to consider. Before applying for a personal loan, consider the pros and cons.
Pros:
- Typically unsecured: Most personal loans don’t require you to put up collateral to qualify.
- Can be used for nearly any purpose: Personal loans are flexible, although some providers impose restrictions. For instance, you may not be able to use a personal loan for business expenses or higher education.
- Spread out a large expense: Taking out a personal loan allows you to pay for a large expense over time instead of draining your savings to cover the purchase.
- Predictable payments: Personal loans are considered installment loans, where you make regular payments on a set schedule with a fixed interest rate.
- Fast funding: Many loan providers disburse the funds within one or two business days.
- Help you build credit: Making on-time payments can help boost your credit score.
Cons:
- Strict eligibility requirements: It’s possible to find bad credit personal loans, but many loan providers require you to have strong credit and reliable income to qualify for the loan and get the best rates.
- Increases your debt: Borrowing money can strain your finances and potentially ding your credit.
- Loan limits: Personal loans usually range from $1,000 to $50,000 with some providers offering up to $100,000. This may — or may not — be enough to cover your large expense.
- Origination fees: Some loan providers charge origination fees. These are usually calculated as a percentage of the loan amount and taken from the loan proceeds.
- Credit impact: The personal loan can increase your debt load and shorten the average age of your accounts, which may negatively impact your credit.
How to get a personal loan
Here are the general steps you can follow to get a personal loan:
- Check your credit: Before applying, pull your credit reports and check your credit score to see where you stand. You can dispute or fix any errors that could be pulling your score down.
- Assess your financial position: Go through your budget and calculate how much you can spend on a personal loan monthly payment. This step ensures you borrow only what you can manage, so you avoid overextending your financial commitments.
- Compare lenders: Make a list of lenders that have a strong reputation and offer good personal loans. Compare loan amounts, repayment terms, interest rates and fees. If you want to apply with a co-signer or co-borrower, check whether the lenders offer that option.
- Prepare necessary documentation: Gathering your required documents, such as pay stubs, employment verification and identification, can streamline the application process.
- Apply for the loan: Fill out the loan application and provide any necessary documents. Be sure to answer any questions from the lender to move along the application process.
- Sign the loan agreement: If the lender approves your application and sends you a loan contract, review the loan terms closely. Check the interest rates, fees, repayment schedule and penalties — and if you agree with the terms, sign the loan agreement. The lender will then deposit the funds in your bank account.
Frequently asked questions (FAQs)
What are the easiest loans to get approved for?
All reputable loans come with eligibility standards to ensure you can afford the monthly payments. That being said, applying for a personal loan is typically an easy, straightforward process.
What is the safest place to get a personal loan?
Banks, credit unions and online lenders all may offer personal loans. The safest place to get a personal loan is with a lender you trust. It should have a strong reputation, provide the loan information you need and clearly list all costs of the loan upfront.
Can personal loans hurt your credit score?
Yes, a personal loan may negatively impact your credit score. When you submit the official application, the financial institution will likely do a hard credit pull that can temporarily lower your credit score by a few points. The new personal loan will then lower the average age of your credit accounts, which can also negatively impact your score. But if you consistently make on-time payments on the new personal loan and your other obligations, your credit score can rebound over time.
How long does it take to get a personal loan?
It typically takes just a few minutes to prequalify for a personal loan and then another few minutes to submit the application and upload documents. Many lenders then process the application and fund the loan within a few business days.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.