Best Personal Loans of 2024

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Money’s Main Takeaways

We found that Credible has some of the best APRs, Lending Tree offers access to 300+ lenders, and Lightstream offers the best variety of loan options.

• LightStream charges no fees for its personal loans, which range from $5,000 to $250,000

• Upstart is our choice for low credit score applicants, with a minimum credit score of 600

• The average APR for a 24-month personal loan is 11.87%, according to the Federal Reserve

*Rates and APYs are subject to change. All information provided here is accurate as of April 10, 2024.

Personal loans are a versatile financing solution characterized by a wide range of loan terms and relatively fast underwriting. Whether you're consolidating debt, making large purchases or funding home improvements, a personal loan adapts to your financial goals. You can choose the loan amount, repayment terms and interest rate that best suit your needs.

Read on to learn more about the best personal loans of 2024.

Our Top Picks for the Best Personal Loan Companies of 2024

The companies listed below are organized alphabetically.

• Credible – Best Marketplace (7.49% - 35.99% APR)
• LendingTree - Best Marketplace Runner-Up (5.99% - 35.99% APR)
• LightStream – Best Variety of Loan Options (7.49% - 25.99% APR)
• PenFed – Best Credit Union (7.99% - 17.99% APR)
• Prosper - Best Peer-to-Peer Lender (8.99% - $35.99% APR)
• SoFi – Best Online Lender (8.99% - 29.49% APR)
• U.S. Bank – Best Bank (8.74% - 24.49% APR)
• Upstart – Best for Low Credit Scores (7.80% - 35.99% APR)

Best Personal Loan Reviews

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Why we chose it: Credible is an excellent option for borrowers who want to compare multiple quotes from some of the top-rated personal loan lenders, each offering competitive rates.

Credible’s lending platform lets you compare quotes from 15 lenders in as little as two minutes — without making a dent in your credit score. The company features an excellent network of reputable lenders, including SoFi, LightStream and Discover.

Additionally, Credible offers a $200 Best Rate Guarantee incentive. If you are offered a personal loan at a lower rate from another company within eight days of receiving a prequalified personal loan rate from Credible, the company will give you a $200 gift card. Note that you must submit proof to Credible within seven days of closing on the loan from the competing lender.

The company welcomes applicants with a variety of credit histories, but applicants with excellent credit histories tend to see more loan offers, more flexible repayment terms and lower interest rates. Credible also offers tools to check how prequalifying rates are affected by adding different co-signers.

Read our full review of Credible personal loans >>

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Why we chose it: LendingTree is our best personal loans marketplace runner-up because it offers access to more than 300 lenders who provide loans for a wide range of credit situations.

Like Credible, LendingTree is an online marketplace that connects users to reputable personal loan lenders. Within minutes, you can receive multiple offers from well-known companies such as Best Egg, LendingClub, PenFed Credit Union and Discover.

LendingTree’s user-friendly website offers transparent details on its lenders’ current starting annual percentage rates, along with comprehensive information on loan terms, amounts, and minimum credit score requirements. Generally, the minimum credit score required is around 580, but some lenders accept lower credit scores.

Another plus for LendingTree is its personal loan payment calculator, which you can use to help estimate monthly payments based on loan term, estimated interest rate and loan amount. However, LendingTree didn’t secure the top position as its maximum loan amount is lower than Credible’s.

Read our full review of LendingTree personal loans >>

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Why we chose it: LightStream stands out for offering personal loans with no origination fee, no prepayment penalties and no late payment fees.

LightStream fee structure is borrower-friendly — no origination fees, late fees or prepayment penalties. However, it’s important to note that loan approval is reserved for individuals with good to excellent credit. The evaluation process considers debt-to-income ratio, payment history and assets as key factors.

In terms of loan repayment, LightStream offers more choices than most personal loan companies. Loan repayment lengths range from one year to 12 years. Additionally, you can receive your funds the same day, so long as you complete all of the necessary paperwork by 2:30 p.m. EST on a banking business day.

As part of its customer satisfaction guarantee, LightStream will pay you $100 if you’re not satisfied with your experience post-closing — this guarantee expires 30 days from loan closing. Additionally, the Rate Beat program offers a 0.10% discount if you’re offered a lower APR by a competing loan lender (if approved for the same loan options offered by LightStream).

Read our full review of LightStream personal loans >>

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Why we chose it: PenFed offers a competitive starting APR and charges no origination fees. The credit union also offers brick-and-mortar locations across the U.S. and Puerto Rico for those who prefer in-person service.

PenFed Credit Union’s personal loans can be used for any purpose, including home improvement projects and debt consolidation. The credit union offers a reasonable starting APR when compared to other personal loan companies. Additionally, PenFed doesn’t charge an origination fee.

You can see several loan offers through PenFed’s personal loan prequalification application, which won’t impact your credit score.

However, if you choose to accept a loan offer, a PenFed membership is required. The credit union makes the membership process easy by opening a PenFed savings account in your name with a deposit of $5, which is added to your total loan amount. Loan funding typically occurs within one to two business days of completing your personal loan paperwork.

Third-party reviews of PenFed show high customer satisfaction, with personal loan customers noting a quick and easy online application process.

Read our full review of PenFed personal loans >>

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Why we chose it: Prosper is our pick for the best peer-to-peer lender for personal loans because of its competitive APR and fast funding.

Prosper is a peer-to-peer lending marketplace that connects borrowers with personal loans funded by investors. Borrowers can access loans ranging from $2,000 - $50,000 with terms spanning two to five years. Upon approval, funds could be available via direct deposit within one business day.

Check your rate using Prosper’s personal loan calculator, which includes different loan types, such as debt consolidation, home improvement and business. A credit check isn’t required until you accept an offer and formally apply.

Note that late payments result in fees of $15 or 5% of the unpaid monthly payment (whichever is greater), and insufficient funds or returned payments incur a $15 charge.

Read our full review of Prosper personal loans >>

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Why we chose it: SoFi offers an easy online application process, a variety of loan amounts and repayment terms and same-day funding.

SoFi offers unsecured personal loans of up to $100,000, one of the highest loan amounts among our best personal loan picks. However, its lowest loan amount is $5,000, so there are no small loans available through SoFi.

While good to excellent credit is ideal, SoFi also considers alternative credit information, including a borrower’s free cash flow, professional history and track record of financial responsibility, when evaluating loan applications. If you don’t meet SoFi’s requirements, you can add a co-borrower. However, adding a co-borrower will extend the loan review process by one to two weeks.

You can check potential rates in less than a minute via SoFi’s online application. This process doesn’t affect your credit score. If you accept a loan offer, you could get funded same-day. According to company data, this is typical for more than 80% of borrowers.

Read our full review of SoFi personal loans >>

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Why we chose it: U.S. Bank offers competitive APRs and quick funding — within hours, according to the lender — if you’re an existing customer with a credit score of 660 or higher.

U.S. Bank has a starting APR that competes with the best personal loan rates in the industry. The bank offers several loan types, including personal loans and home improvement loans, plus lines of credit for various purposes.

The bank also offers the Simple Loan exclusively to U.S. Bank checking account holders, ranging from $100 to $1,000, which is ideal for short-term or emergency expenses. The loan carries a fixed monthly fee of $6 for every $100 borrowed. Additionally, U.S. Bank doesn’t charge fees for missed payments on Simple Loans.

Note that if you do not have a bank account with U.S. Bank, potential personal loan borrowers will be subject to stricter credit score requirements (720 FICO) and a loan limit of $25,000.

Read our full review of U.S. Bank personal loans >>

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Why we chose it: Upstart is a great choice for individuals with credit scores as low as 300. The company evaluates borrowers’ capacity to repay by considering more than 1,500 alternative creditworthiness factors.

Upstart gives borrowers with poor credit a chance to access personal loans using its AI-powered loan application. This innovative approach considers alternative information, such as job history, education and field of study, to assess the individual’s repayment capability.

Furthermore, individuals who are currently unemployed may apply for a loan, so long as they’ve received an employment offer with a start date falling within six months of the loan application.

You can check your rate before you apply for a loan with a soft credit pull. However, like with all personal loan lenders, rates and loan terms for poor credit borrowers are less favorable than those offered to borrowers with excellent credit.

Read our full review of Upstart personal loans >>

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Other personal loan companies we considered

Not all of the banks, credit unions, fintech companies and other financial institutions we evaluated made it to our best personal loans list. Below, you’ll find a selection of some other personal loan companies we considered.

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AmONE

AmONE is a personal loan marketplace that connects borrowers with direct lenders such as Best Egg, Achieve, OneMain Financial, Upgrade and Upstart.

Why AmONE didn’t make the cut: AmONE fell short of our top picks due to its lack of transparency about qualification requirements and potential fees — the company does not publicly disclose important specifics about its partner lenders, such as maximum APR, origination fees or creditworthiness factors.

Read our full review of AmONE personal loans >>

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Avant Personal Loans

According to the company website, the average borrower of an Avant personal loan has a credit score ranging from 600 to 700, making it a good option for individuals with fair credit.

Why Avant didn’t make the cut: Avant charges an administration fee on top of the total loan amount. (Other companies on our list don’t charge any fees.) Moreover, in January 2022, the Federal Trade Commission returned $3.7 million to Avant customers after alleging the company had engaged in deceptive loan practices.

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Best Egg Personal Loans

Best Egg offers a variety of personal loans for various purposes, ranging in amount from $2,000 - $50,000. The company ranked second in J.D. Power’s 2023 Consumer Lending Satisfaction Survey.

Why Best Egg didn’t make the cut: Best Egg didn’t make our list because its personal loans are not available across all of the U.S. and, depending on the borrower, the loan origination fee could be as high as 8.99%.

Read our full review of Best Egg personal loans >>

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Discover Personal Loans

Credit card issuer Discover also originates loans with 0% origination fees and competitive interest rates. These loans can be repaid over three to seven years and the amounts range from $2,500 to $40,000.

Why Discover didn’t make the cut: Discover didn’t make our top picks due to its minimum income requirement and the fact that it doesn’t allow co-signers on loans.

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LendingClub Personal Loans

LendingClub is an online bank that offers peer-to-peer personal loans. You can prequalify for a loan with a soft credit pull that won’t damage your credit score. There are no prepayment penalties, and LendingTree accepts cosigners.

Why LendingClub didn’t make the cut: LendingClub charges a personal loan origination fee of up to 8%. Additionally, its maximum loan amount is low at $40,000.

Read our full review of LendingClub personal loans >>

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USAA Personal Loans

USAA offers personal loans to military members and their families with repayment terms spanning from one to seven years. However, applications for loan terms exceeding 60 months must meet higher credit and risk standards than loan terms up to 60 months.

Why USAA didn’t make the cut: Applying for a USAA personal loan results in a hard credit check. There is no option to prequalify and check loan offers.

Read our full review of USAA personal loans >>

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Personal Loans Guide

Personal loans serve various purposes and come with attractive features like flexible terms and low interest rates. Our guide outlines everything you need to know, including how they work and what qualifications you need to get a personal loan.

What is a personal loan?

Personal loans are a type of installment loan that typically have fixed interest rates and shorter repayment terms, usually ranging from 12 to 72 months. These loans vary in amount, available in smaller sums starting as low as $100 and larger sums exceeding $50,000.

The purpose of a personal loan can include various needs, including debt consolidation, funding home improvement projects, covering medical bills or financing large purchases, events or vacations. However, it’s important to note that most personal loans cannot be used to pay for higher education.

How do personal loans work?

You can request personal loans from banks, credit unions or other financial institutions.

Lenders will consider various factors when evaluating your application. These include:

• Debt-to-Income ratio (DTI) - DTI is calculated by dividing your monthly debt obligations (such as mortgage payments, credit card debts and student loans) by your total monthly income. This shows the portion of your income used to repay existing debts, indicating whether you can afford a new loan.
  

• Credit score - Most lenders set a minimum credit score requirement of 660, but some consider additional factors when determining your creditworthiness. Before you apply for a loan, sure to check your credit report at all three major credit bureaus (Experian, Equifax and TransUnion).

• Credit card utilization ratio - Banks will review how much of your available credit you’re currently using. Most lenders favor a credit utilization ratio below 30%.

Most personal loans have fixed rates and are processed quickly – once approved, you could have money deposited into your bank account within 24 to 48 hours.

Types of personal loans

There are two basic types of personal loans: secured and unsecured loans.

Average interest rates on personal loans

According to the latest data from the Federal Reserve, the average interest rate on personal loans with a 24-month repayment term is 11.87%. Among the companies in our top picks, the average range of minimum and maximum APRs is 7.94% to 30.24%.

Here’s how personal loan rates may vary according to credit scores:

How to get a personal loan

Regardless of whether you want to get your loan from a traditional bank, a credit union, an online lender or P2P, there are steps you’ll have to follow to get your loan.

• Do the math - Take a hard look at your finances. Can you afford the new loan payment? Some banks offer fast, online prequalification with a soft credit pull so you can check potential loan terms. You can also use an online personal loan calculator to get an idea of what you’ll have to pay every month for the loan.

• Check your credit score - Personal loan companies run a credit check to determine your creditworthiness and interest rate. A credit score that falls in the good to excellent range will increase your likelihood of approval and eligibility for the lowest rates.

• Evaluate and compare lenders - Compare lender loan offerings, fees, services and benefits to find out which best fits your needs and wants. Don’t forget to look at customer reviews as well to get a sense of what other borrowers have found helpful or inconvenient.

• Apply and provide documents - Required documents typically include identification (driver’s license, passport or Social Security card), a utility bill to verify your address, employment information and a bank statement or tax return as proof of income.

• Review the loan terms - Be sure to check for additional fees, such as an origination fee or prepayment penalty.

• Start making payments - We recommend you set up automatic payments to avoid paying the penalty or fees that most lenders charge for missed payments.

Best place to get a personal loan

You can get personal loans from banks, credit unions, or from online and peer-to-peer lenders. It’s important you only apply to reputable lenders since you’ll have to provide your personally identifiable information on your application, including your Social Security number and address.

Banks

Brick-and-mortar banks are ideal if you prefer in-person customer service. However, as banking becomes ever more digital, most brick-and-mortar banks are now able to offer you the best of both worlds. Note that some traditional banks may charge higher fees and penalties than online lenders and credit unions.

Online Lenders

Online lenders offer convenience and speed. You can apply and receive your money online from anywhere (we suggest you use a secure WiFi connection). Another perk: Some pass on their overhead cost savings to borrowers and are more likely to offer low-interest personal loans with fewer fees. Additionally, some online lenders use alternative credit data, which may be helpful for borrowers with less-than-perfect credit.

Credit Unions

Unlike traditional banks, credit unions are nonprofit financial institutions. Borrowers must become members, but this can offer some benefits, such as access to higher interest rates on savings accounts and CDs and APR discounts on personal loans. Credit union accounts are insured by the National Credit Union Administration (NCUA), which caps the loan interest rates offered by credit unions at 18%.

Peer-to-Peer

A peer-to-peer (P2P) lender is an online lender that connects borrowers to funding from individual investors and companies. The lender serves only as a facilitator of the loan. This type of loan gives people with low credit scores or limited credit history a greater chance of approval. However, some P2P lenders charge additional fees and higher personal loan interest rates.

How to compare personal loans

When comparing personal loans, consider these important factors:

• Annual percentage rate: The APR on a personal loan reflects the interest rate plus any fees, such as an origination fee, the lender charges. Some lenders offer rate discounts for automatic payments or for opening a bank account and setting up direct deposits.

• Loan repayment term: Longer term lengths mean lower monthly payments, but you pay more in interest overall. Shorter terms have higher monthly payments and less interest accrual.

• Monthly payment: Consider how much your monthly payment will be as well as its frequency (weekly, monthly).

• Fees: Look at the fine print for loan origination fees, as well as late fees or a fee for paying your loan in full before the loan term expires (this is called a prepayment penalty).

• Funding time: Some personal loan companies offer next-day funding, while others may take up to a week to disburse funds.

How We Found the Best Personal Loans

Our methodology to find the best personal loans included an in-depth evaluation of 40 banks, credit unions, marketplaces and peer-to-peer lenders, taking into account the following:

• Loan rates and fees - We chose banks that provided the most affordable loans, that is, those that offered the lowest interest rates and fees. We also evaluated which banks offered the most benefits and unique offers.

• Loan term flexibility - We preferred banks that offered customers multiple term options and ways to pay.

• Customer satisfaction - We evaluated how banks ranked in J.D. Power’s Customer Satisfaction surveys and checked any complaints filed with the Better Business Bureau (BBB).

• Regulatory compliance - We checked for complaints and reports filed with the Consumer Financial Protection Bureau (CFPB) database and the Federal Trade Commission (FTC).

Summary of Money’s Best Personal Loans of 2024

The companies listed below are organized alphabetically.

• Credible – Best Marketplace (7.49% - 35.99% APR)
• LendingTree - Best Marketplace Runner-Up (5.99% - 35.99% APR)
• LightStream – Best Variety of Loan Options (7.49% - 25.99% APR)
• PenFed – Best Credit Union (7.99% - 17.99% APR)
• Prosper - Best Peer-to-Peer Lender (8.99% - $35.99% APR)
• SoFi – Best Online Lender (8.99% - 29.49% APR)
• U.S. Bank – Best Bank (8.74% - 24.49% APR)
• Upstart – Best for Low Credit Scores (7.80% - 35.99% APR)