Best Personal Loans of 2023
Whether you need to pay for home improvement, consolidate credit card debt, or cover another significant expense, a personal loan could provide the funding you need. Personal loans are installment loans that often come with fixed interest rates. You can use them for almost any purpose.
When you borrow a personal loan, you get a lump sum upfront and pay it off on a monthly basis. The best companies for personal loans offer rates starting around 7% or 8% APR with same- or next-day funding.
We’ve reviewed the best personal loans based on a variety of features, including competitive interest rates, flexible repayment terms, and few (or no) fees. Read on for our top picks, including the best loans for good credit, thin credit, debt consolidation, and other borrowing needs.
Review the 9 best personal loan companies
We’ve reviewed a variety of personal loan lenders to determine which ones are best for borrowers based on their credit profile and financial goals. Plus, we share personal loan rates, terms, loan amounts, credit score requirements, and other important details.
Best for good credit: SoFi
Editorial rating: 5 out of 5
- Large loan amounts and fast funding
- No origination fees, late fees, or prepayment penalties
- Member benefits, including unemployment protection and financial planning
SoFi is an online lender that provides personal loans from $5,000 to $100,000. Excellent-credit borrowers can access rates starting at 8.99% APR.
Along with fast approval and no fees, SoFi stands out for its robust member benefits, which include unemployment protection and financial planning services. Plus, you can get a 0.25% reduction on your interest rate if you sign up for automatic payments on your loan.
- Minimum credit score: 650
- Prequalify with a soft credit check? Yes
- Rates (APR): 8.99% – 23.43%
- Loan amounts: $5,000 – $100,000
- Repayment terms: 24 – 84 months
- Funding time: As fast as same day
- Disclosed fees: No origination fees, late fees, or prepayment penalties
Best for excellent credit: LightStream
Editorial rating: 4.8 out of 5
- Competitive rates
- Customized loan offerings by use
- Rate Beat Program
LightStream offers competitive APRs on its personal loans, as well as large loan amounts of up to $100,000. Depending on your loan type, you could choose a loan term of two to 12 years, a range that gives you plenty of flexibility to repay your loan.
LightStream is unique for its Rate Beat Program. If you find a better rate on an unsecured personal loan from another lender, LightStream will beat it by 0.10 percentage points.
LightStream requires a credit score of 660 or better. Unlike many other online lenders, it doesn’t offer a prequalification tool. You must submit a full application to see your customized loan offers.
- Minimum credit score: 660
- Prequalify with a soft credit check? No
- Rates (APR): 7.99% – 25.99%
- Loan amounts: $5,000 – $100,000
- Repayment terms: 24 – 144 months, depending on the loan type
- Funding time: Same day as approval
- Disclosed fees: No origination fee, but Florida loans are subject to a documentary stamp tax
Best for fair credit: Upgrade
Editorial rating: 4.9 out of 5
- Accepts credit scores starting at 560
- Lets you check your rates through prequalification
- Funds loan within a day of clearing the necessary verifications
Upgrade may be a solid choice for fair-credit borrowers. It accepts credit scores starting at 560. This lender will also fund personal loans starting at $1,000, which could appeal to borrowers seeking for a low loan amount.
You can choose repayment terms as long as seven years and access rates starting at 8.49% APR. Upgrade can fund your loan within one business day of verifying your application.
Keep in mind: Upgrade charges an origination fee of 1.85% to 9.99% of your loan amount. This fee is subtracted from your loan proceeds, so your loan will be for a lower amount than you requested.
- Minimum credit score: 560
- Prequalify with a soft credit check? Yes
- Rates (APR): 8.49% – 35.97%
- Loan amounts: $1,000 – $50,000
- Repayment terms: 24 – 84 months
- Funding time: Within a day of clearing verifications
- Disclosed fees: Origination fee of 1.85% to 9.99%
Best for thin credit: Upstart
Editorial rating: 4.8 out of 5
- Uses an alternative lending model when evaluating your loan application
- Accessible to bad-credit borrowers
- Option to prequalify online
If you have bad or little to no credit, you may have a tough time qualifying for a personal loan from most lenders. Upstart, however, accepts borrowers with credit scores of 300—the lowest possible.
Rather than just credit score, Upstart uses an artificial intelligence-powered alternative lending model to determine whether you qualify for a loan. Upstart relies on a variety of factors to assess your finances and make an approval decision.
Upstart offers prequalification online, so you can check your rates with no impact on your credit score.
- Minimum credit score: No minimum
- Prequalify with a soft credit check? Yes
- Rates (APR): 6.70% – 35.99%
- Loan amounts: $1,000 – $50,000
- Repayment terms: 3 or 5 years
- Funding time: As fast as one business day after signing
- Disclosed fees: 0% – 10%
Best marketplace: Credible
Editorial rating: 5 out of 5
- Prequalify with multiple lenders at once
- Access loan amounts starting at just $600
- Choose loan terms as long as seven years
Credible is an online loan marketplace that lets you check your rates with multiple lenders at once. Credible partners with a variety of personal loan lenders that accept credit scores starting at 550.
The rates and terms will vary by lender, but you can access loans from $600 to $100,000, with terms ranging from one to seven years. Checking your rates won’t hurt your credit, but keep in mind your loan offers will be limited to Credible’s partner lenders.
To cast a wider net, you could check your rates through Credible and shop around with other lenders not represented in Credible’s marketplace.
- Minimum credit score: 550
- Prequalify with a soft credit check? Yes
- Rates (APR): 5.40% – 35.99%
- Loan amounts: $600 – $100,000
- Repayment terms: 12 – 84 months
- Funding time: Varies by lender
- Disclosed fees: Origination fee varies by lender, but often 1% to 8% of your loan amount
Best for credit card debt: Happy Money
Editorial rating: 4.8 out of 5
- Option to have Happy Money pay off creditors
- Offers loan terms between 2 and 5 years
- Check your rates online via prequalification
Happy Money offers an unsecured personal loan it calls the “Payoff Loan.” Happy Money’s Payoff Loans can help you consolidate and pay down credit card debt.
Borrow between $5,000 and $40,000, with rates starting at 10.50% APR. Depending on your preference, you can ask Happy Money to pay your creditors or to deposit your loan in your checking or savings account.
Happy Money’s loans are designed to pay off credit card debt. However, the company may be able to provide an unsecured personal loan for other uses, as well.
- Minimum credit score: 640
- Prequalify with a soft credit check? Yes
- Rates (APR): 10.50% – 29.99%
- Loan amounts: $5,000 – $40,000
- Repayment terms: 24 – 60 months
- Funding time: Within 7 business days
- Disclosed fees: Origination fee based on your loan amount, term, and credit
Best for changing payment date: LendingPoint
Editorial rating: 4.9 out of 5
- Fast funding
- Option to adjust payment due date
- Loans starting at $2,000
LendingPoint offers personal loans between $2,000 and $36,500. You can check your rates on LendingPoint’s website with no impact on your credit score.
LendingPoint’s minimum credit score requirement is 580, and it requires an annual income of at least $35,000. LendingPoint charges an origination fee up to 8%. Its loans are available in every state except Nevada and West Virginia.
- Minimum credit score: Not disclosed
- Prequalify with a soft credit check? Yes
- Rates (APR): 7.99% – 35.99%
- Loan amounts: $2,000 – $36,500
- Repayment terms: 24 – 72 months
- Funding time: Next business day after approval
- Disclosed fees: Origination fee of 0% to 8%
Best for choosing payment date: Achieve
Editorial rating: 4.8 out of 5
- Choose your payment date upfront
- Prequalification available
- Minimum loan amounts vary by state
Achieve offers personal loans between $5,000 to $50,000, though the amounts available may vary depending on where you live.
Other ways to lower your rate on an Achieve personal loan include applying with a co-borrower, using at least 85% of your loan to pay off existing debt, or showing proof of sufficient retirement savings.
Achieve offers repayment terms as long as 60 months and lets you choose your payment date before you enter repayment, which may appeal to borrowers who want to ensure their bills fall on a specific date each month.
- Minimum credit score: 620
- Prequalify with a soft credit check? Yes
- Rates (APR): 7.99% – 35.99%
- Loan amounts: $5,000 – $50,000
- Repayment terms: 24 – 60 months
- Funding time: 24 – 72 hours
- Disclosed fees: Origination fee of 1.99% – 6.99%
Best for a secured loan: Best Egg
Editorial rating: 4.8 out of 5
- Unsecured and secured personal loans
- Repayment terms up to 5 years
- Check your rates online through prequalification
Best Egg offers unsecured and secured personal loans up to $50,000. Its secured loans are available to homeowners. Unlike a home equity loan, which your home secures, items in your home secure a Best Egg loan. These include light fixtures, cabinets, and vanities.
According to Best Egg, qualifying homeowners can take out a secured loan in 24 hours without completing additional paperwork. Whether you’re opting for an unsecured or secured loan, Best Egg lets you check your rates online with no impact on your credit score.
- Minimum credit score: 600
- Prequalify with a soft credit check? Yes
- Rates (APR): 8.99% – 35.99%
- Loan amounts: $2,000 – $50,000
- Repayment terms: 36 – 60 months
- Funding time: 1 – 3 business days
- Disclosed fees: Origination fee of 0.99% to 8.99%
How we chose the best personal loan companies
LendEDU has evaluated lenders since 2017 to help our readers find the best personal loans. Our most recent evaluation consisted of 45 lenders and 18 data points for each, resulting in 810 data points in our analysis.
These data points fell under 11 categories: transparency, eligibility requirements, rates, repayment terms, loan amounts, fees, customer experience, company history, benefits, funding time, and limitations on received funds.
How to get the best personal loan rates
A low rate is a top priority when choosing a personal loan. To find a competitive offer, take time to shop around with multiple lenders. By prequalifying for loans online, you can check your rates with a variety of loan providers and not hurt your credit score.
As you compare your options, keep an eye on the loan’s APR, repayment term, and any fees. Keep in mind that a shorter repayment term will have a higher monthly payment, but it can reduce the overall interest you pay.
On the other hand, a longer term will come with more affordable monthly bills, but you may pay more interest over the long run. If your goal is to keep interest charges down, opt for the shortest loan term that works for your budget.
Do I qualify for the best personal loan?
You’ll often need strong credit to qualify for the best rates on a personal loan. On the FICO scoring model, a good score starts at 670, a very good score starts at 740, and an exceptional score is at least 800.
Lenders may also look at your income and debt-to-income ratio when evaluating you for a loan. Borrowers with a high income, low debt-to-income ratio, and excellent credit will get the best personal loan offers.
If you have trouble qualifying or want to access better rates, you may boost your chances by applying with a creditworthy cosigner or co-borrower. Check with the individual lender to see whether it accepts joint applications.
Is a personal loan my best option?
Whether a personal loan is your best option depends on your circumstances. If you need to pay for a large expense or consolidate debt and can qualify for a reasonable interest rate, a personal loan could make sense.
On the other hand, a personal loan might not be the wisest choice if you get stuck with a high interest rate. It’s worth considering other financing options, which could include:
- Credit card with a 0% APR promotional period
- Home equity loan or line of credit (HELOC)
- Loan from a friend or family member
- Cash from your own savings
If you can cover your expense at a lower interest rate (or avoid interest charges), a personal loan might not be your best choice. But if a personal loan offers the lowest borrowing costs among your other options, it might be suitable.
How to apply for a personal loan
If you’re looking to borrow a personal loan, here are the steps to apply:
- Check your credit. Start by checking your credit score and reviewing your credit report, so you know what you’re working with as you go into the loan process. If you spot errors on your credit report, dispute them to have them removed.
- Determine your loan amount. Figure out how much you need to borrow and can afford to pay back. If the lender subtracts an origination fee from your loan proceeds, take that into account when you make your request.
- Prequalify with several lenders. Shop around with multiple lenders so you can find a loan with the best rates and terms.
- Select your loan offer. Compare loan features such as APR, fees, and repayment terms to decide which loan has the lowest costs of borrowing.
- Submit a full application. Once you choose a loan, you’ll complete an official application with your personal details and required documentation, such as pay stubs or tax returns. At this point, the lender will run a hard inquiry on your credit.
- Get your funds, and start paying your loan back. Your final steps will be to sign your loan agreement and receive your funds. Check when your first payment is due, and consider setting up automatic payments so you don’t miss any bills.
FAQ
How does a personal loan work?
A personal loan is an installment loan you pay monthly over a set period, often between three and seven years. When you borrow a personal loan, you might get a lump sum as direct deposit into your account. Some lenders will also send direct payments to your creditors if you’re using the loan for debt consolidation.
Most personal loans are unsecured, so you must meet a lender’s underwriting requirements for credit and income to qualify. However, some lenders also offer secured loans, which are backed with collateral. Secured loans may have more lenient qualification requirements, but you risk losing your asset if you can’t pay them back.
What’s the average personal loan rate today?
The average APR on a 24-month personal loan was 11.21% in November 2022, according to the most recent data from the Federal Reserve.
How do I know if I got a good personal loan rate?
If you’re wondering whether you got a good personal rate, you can check your lender’s range of rates to see if yours falls on the low end. It’s also wise to shop around with multiple lenders to find a loan with the most competitive APR.
Before you sign your loan agreement, use a personal loan calculator to estimate your monthly payments and long-term interest charges. If the costs of borrowing are too great, the rate you got wouldn’t be a suitable fit.
What does prequalifying for a personal loan mean?
Prequalifying for a personal loan means you can check your customized rates with no obligation or impact on your credit score. Many lenders offer prequalification on their websites. You’ll enter a few basic personal details, such as your name, date of birth, Social Security number, and requested loan amount.
The lender will run a soft credit check and show you which loan offers you qualify for. Keep in mind a prequalified offer isn’t set in stone. Your rates could change after you submit a full application and the lender runs a hard credit check.
What can I use a personal loan for?
You can use a personal loan for almost any legal purpose, including home improvement, debt consolidation, medical bills, wedding expenses, and more.
Some lenders set certain restrictions on personal loan uses, so check with your lender for any guidelines. For instance, some lenders say you can’t use a personal loan for investing, gambling, a down payment on a home, or postsecondary education expenses.
How long does it take to get funds from a personal loan?
The time it takes to get a personal loan will depend on your lender, as well as your bank if you’re getting the funds via direct deposit. Some lenders offer funding as soon as the same day you’re approved, while others take several business days to process your application.
How do personal loan rates compare to credit cards?
Personal loan rates may be lower than credit card rates, which is why some consumers borrow a personal loan to consolidate credit card debt. However, your personal rate depends on your credit profile and other factors.
Borrowers with excellent credit may qualify for rates starting around 7% or 8% APR. Borrowers with bad credit, however, may get stuck with rates on the higher end of a lender’s range, which can hit 36% APR.
The average rate on a credit card was 15.5% in 2022, according to the most recent Federal Reserve data.
How many personal loans can you have at a time?
There’s no limit to the number of personal loans you can have at one time, as long as your lender approves it. Owing a lot of debt, however, may make it difficult to meet a lender’s underwriting requirements for debt-to-income ratio.
Can you refinance a personal loan?
You may qualify to refinance your personal loan with another personal loan, depending on the lender’s guidelines. If your credit has improved since you borrowed the original loan, you might qualify for a new loan with a better rate. Then you can use your new loan to pay off your old one.
How does a personal loan affect my credit score?
A personal loan can affect your credit score for better or worse, depending on how you pay it back. On-time payments can increase your credit score, and late payments will drag it down.
When you borrow your personal loan, you may also see your credit score fall by a few points after your lender runs a hard credit inquiry. However, your credit score should bounce back within a few months as long as you pay your bills on time.
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