Our best personal loans ratings methodology

How we rate the best personal loans

We evaluated 40 popular lenders to find the best personal loans. In general, the best personal loans have competitive rates, quick funding speeds and minimal fees. They also allow borrowers to choose from a wide range of loan amounts and repayment terms, and some provide perks like rate discounts. Additionally, several of the top lenders accept bad credit scores, and many allow you to apply with a co-signer or co-borrower. 

To determine the top personal loans, we scored lenders on a scale of one to five stars based on these factors and other metrics covered below. We then used these scores to rank the lenders in order, which in turn determine the list of best personal loans. 

Ready to see the results? Compare the best personal loans 

How we choose the products we ranked

We choose the products included in our rankings based on a variety of eligibility factors. This includes making sure each lender is legitimate and trustworthy based on customer service, reviews and more. Additionally, we look at whether the annual percentage rates (APRs) charged by a lender are reasonable according to common practices.

We also consider if any actions have been taken against a lender by the Consumer Financial Protection Bureau (CFPB) or other federal agencies. If so, a lender could be disqualified from our rankings depending on the severity of the violations and their impact on customers.

Best personal loans ranking factors

We used the following factors (with weightings) to determine our personal loan rankings:

• Loan details: 20%.
• Loan cost: 35%.
• Eligibility and accessibility: 20%.
• Customer experience: 15%.
• Application process: 10%.

These factors were chosen based on what is typically most important to borrowers. For example, a borrower will likely consider elements like interest rates, loan amounts, repayment terms and eligibility criteria (like minimum credit score and income requirements) when deciding if a loan is right for them.

Here’s how our factors break down, with weightings for each subfactor that comprises a category. We also included explanations for how lenders could receive the highest score in each particular area:

Loan details (20%)

• Minimum loan amount (5%): Many borrowers look for small loans to cover modest expenses. We gave the highest scores in this area to lenders that allow you to borrow a minimum of $2,000 or less.
• Maximum loan amount (5%): There are also many borrowers who are looking to cover large expenses, such as home improvements. The highest scores in this area were given to lenders that offer loans as large as $75,000 or more.
• Maximum repayment term (10%): Repayment terms for personal loans generally range from one to seven years. Because borrowers might prefer to spread payments out over a long period of time to fit payments more easily into their budgets, we reserved the highest scores in this area for lenders that offer terms longer than five years. 

Loan cost (35%)

• Minimum APR (10%): Taking advantage of a low APR can help you save money over the life of the loan. Because of this, we gave lenders with minimum APRs below 5% the highest scores in this area. 
• Maximum APR (10%): Again, APR is one of the biggest factors that will impact your borrowing costs. To earn the highest score in this area, a lender must cap their APR range below 18%.
• Late payment fees (5%): Another factor in borrowing costs is the fees a lender charges. We gave points in this area to lenders that don’t charge late fees.
• Prepayment penalties (5%): While uncommon for personal loans, some lenders assess a fee if you pay off your loan early. We gave points in this area to lenders that don’t charge a prepayment penalty. 
• Perks/rate reductions (5%): We also considered what perks a lender offers, such as discounts for automatic payments or existing account holders. Lenders that offer these sorts of perks received full points in this area.

Eligibility and accessibility (20%)

• Credit score (10%): While many lenders require good credit to get a personal loan, there are also several lenders that have more lenient credit criteria. To have received the highest score in this area, a lender must accept credit scores of 620 or lower.
• State availability (5%): Many lenders operate in all 50 states while others are limited to specific areas. Lenders that operate in 41 or more states earned the highest score for this factor.
• Co-signer or co-borrower acceptance (5%): Adding a co-signer or co-borrower (also known as a joint applicant) to your application can make it easier to qualify for a loan. Because of this, we gave points in this area to lenders that permit co-signers or co-borrowers.

Customer experience (15%)

• Customer service hours and access options (5%): Some lenders only offer customer service during typical business hours, while others have hours that extend through Saturday or even 24/7. Additionally, while you can reach most lenders by phone, some also have the option of email or live chat. We awarded the maximum points in this area to lenders that are available seven days per week, provide service past 6 p.m. Eastern Time (ET) and offer multiple contact options.
• Mobile app (5%): Many lenders offer a mobile app that allows you to more easily manage your loan. We awarded points in this area to lenders that provide an app to their customers.
• Trustpilot reviews (5%): Looking at reviews from other customers can be critical in deciding whether to work with a lender. In accordance with this, we gave the highest points in this area to lenders that have earned five stars on Trustpilot.

Application process (10%)

• Online application (5%): Most personal loan lenders these days provide an online application process to make getting a loan as easy as possible. This includes not only online lenders but also many traditional banks and credit unions. We gave points in this area to lenders that offer an online application.
• Average funding speed (5%): It typically takes about a week to get your personal loan funds. But some lenders provide faster funding, which can be critical if you need cash for an emergency. To have earned the highest score in this area, lenders must offer same-day funding.

How we collect data

We rely on lenders when doing our research — never on third-party sources. We research each individual lender by reviewing their website and collecting data. Then, we reach out to each lender directly to collect additional information and get clarification on any details we were unable to find on the website. 

We regularly recheck and update our lender information. Our data team also researches each lender annually to verify that the data is up to date.

In some cases, lenders don’t disclose certain details on their website and either don’t reply to our inquiries or don’t disclose the information at all. When this is the case, the lender does not receive any points for that factor at all and it’s marked as “Does not disclose.” 

USA TODAY Blueprint’s editorial standards

Every article is fact checked by our writers and editors along with our data and compliance teams to ensure we have the most accurate and up to date information. Our team uses a data-driven methodology based on what borrowers value most to determine each rating. 

We pride ourselves on our journalistic integrity and our goal is to always empower our readers to make sound financial decisions. Advertisers do not influence any of our content, opinions or evaluations.