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- Best Personal Loans
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Our list of top personal loans combine low interest rates, terms that fit your budget, and excellent customer service. If you're like most people, you're busy, and shopping for the right personal loan requires time and energy you just don't have. Whether you're looking for a secured personal loan or an unsecured personal loan, we're here to help you find the best personal loan.
Read on to discover what to look for in a loan, how to get one, and when it's the right route for you. If you're considering a new loan in 2021, you're in the right place. We've scoured hundreds of personal loan options to bring you the best offers on the market today.
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.
Upstart was started by some former Google employees in 2012 and it immediately became a personal lending industry unicorn. Upstart's unique underwriting process takes things like education and career history into account, as well as other factors unrelated to credit score. As such, Upstart is ideal for younger borrowers with little credit history (but plenty of earning potential). Read our Upstart review to learn more.
LightStream's lowest interest rate currently sits at an impressive 2.49%. As we whittled down personal loan companies, this fact alone was enough to inspire us to include LightStream. Not only does LightStream offer a wide range of terms, but they also promise no fees or prepayment penalties. Read our full LightStream review to learn more.
Marcus (a division of Goldman Sachs) prides itself on its flexible terms and lack of fees, plus it offers one of the lowest interest rates on the market. It targets customers with good credit scores and a solid credit history, and you won't pay prepayment, origination, or late fees. For borrowers with excellent credit, the interest rate can be as low as 6.99%. Read our full Marcus by Goldman Sachs review to learn more.
SoFi's interest rates can run as low as 5.99% for those with excellent credit. Even its highest rate tops out at 25.05% if you use AutoPay to reduce your rate by setting up automatic payments. Qualified borrowers will enjoy SoFi's personal loan perks, such as unemployment protection and its no-fee policy. If SoFi sounds like your kind of lender, read our full SoFi review to learn more.
Payoff may be the perfect choice for borrowers saddled with high-interest debt who want to consolidate or refinance. With interest rates as low as 5.99%, Payoff is ideal for those looking to create a workable debt consolidation plan and get out of debt. This peer-to-peer lender offers a personalized service to help you figure out how much you need to borrow (up to $40,000) and the loan term that works best (from two to five years). Read the full Payoff review to learn more.
Avant is designed for borrowers who may have trouble securing a personal loan through other lenders. Not only is the minimum credit score relatively low, but Avant offers a fast loan approval time. Read the full Avant review here.
FreedomPlus prides itself on its quick funding and lack of hidden fees. With loans up to $40,000 and interest rates as low as 7.99% for highly-qualified borrowers, FreedomPlus is a good option for customers looking to consolidate debt or finish a project around the house. Read our full FreedomPlus review to learn more.
A Discover personal loan gives borrowers with high-interest debt up to seven years to pay it off through debt consolidation. The downside to repaying a loan over a long period is that you will pay more in interest overall. However, this loan may be the perfect solution for a borrower who wants to keep their monthly payments low. Read our full Discover personal loan review here.
A personal loan is money borrowed from a bank, credit union, or online lender in a lump sum. The best loan rates are typically reserved for customers with the highest credit scores. You'll normally make set monthly payments until you've paid back the debt.
While other loan types are used to pay for specific purchases, like a home or vehicle, the best unsecured personal loans can be used for a variety of purposes. For example, you can use personal loans to finance home improvements, cover the cost of an engagement ring, or pay for medical expenses.
Personal loans are a good idea when you have a clear purpose in mind. For example, the top personal loans can provide you with the funds you need to repair or remodel your home, cover an emergency expense, or consolidate debt. As with any debt, personal loans are not a good option if you're not sure how you'll pay the money back, or you're borrowing for something you don't actually need.
If you need the proceeds from your personal loan quickly, look for a loan with streamlined approval. This will limit the time you have to wait for funds to be deposited into your bank account. If you run into a financial roadblock, a personal loan can help you over it, even when you need the cash fast.
TIP
If your income was cut due to the coronavirus pandemic, you might qualify for a coronavirus hardship loan. These small, low-interest loans are designed to help people make ends meet. They can be used to pay rent, buy food, pay off medical bills, or cover other expenses during the pandemic. To find one, reach out to one of the lenders on this list, or call your bank or credit union and ask about their loan options.
For more information, read our guide to getting a coronavirus hardship loan.
There's a wide range of personal loan options available, and that's why it's so important to know how to identify the loan that will benefit you the most. Whether you enjoy excellent credit or are specifically looking for a loan for borrowers with poor credit, at their core, the best personal loans have three things in common.Â
The lower the interest rate, the more money you save in total.
Let's say you need to borrow $20,000 to replace the roof of your house, and you're planning on getting a loan with a 5-year term. You're considering two options: Lender A and Lender B. Below, we've summarized these two imaginary lenders and how their interest rates would impact the cost of your loan. As you can see, even a small percentage change can result in significant savings.
Lender A
Lender B
The higher interest rate will only cost you an extra $13 per month, but that small difference amounts to $780 over the life of the loan. For more information, check out our guide to good interest rates for personal loans.
A loan term is the period of time you have to repay the loan. The longer the loan term, the lower your monthly payment -- but the more you'll pay in interest overall. Look for your personal loan term sweet spot. The shortest term with the most affordable payment is your personal loan sweet spot.
The best personal loan rates mean little if they are coupled with expensive fees. The best personal loan lenders won't charge an origination fee (or a very low origination fee) and keep other expenses -- like prepayment and late fees -- to a minimum.
For example, many lenders charge origination fees to cover the cost of processing and distributing your loan. Origination fees range from 1% to 8% of the amount you borrow. Using the scenario above, if you borrow $20,000 to replace a roof, that means you could pay between $200 and $1,600 in origination fees alone.
The loan application process is much easier if you prepare in advance. Whether you want to work with a traditional bank, credit union, or peer-to-peer lender, here are the steps to take:
Personal loan pre-qualification or pre-approval allows you to get a sense of what loan terms are available. Most pre-qualification processes use a soft credit check, which won't impact your credit score. If you qualify, lenders will let you know how much you can borrow, the interest rate you will be charged, and how long you'll have to repay the loan. You can use this information to compare personal loans. If you do not qualify, you can learn what you need to do to improve your odds of getting a personal loan.
The best personal loan lenders can provide a great way to borrow money affordably, but they are not the right choice for everybody. Depending on your circumstances -- for example, if you need money to fund a project or pay an unexpected expense -- you may want to look at other options. Here are two alternatives to personal loans:
A credit card can provide fast cash in an urgent situation. If you qualify for a 0% APR credit card, you have months (sometimes between 12 and 18) to pay the debt off with no interest. Avoid using a credit card with a 0% transfer offer if you're not confident you can pay it off in full before the promotional rate expires. At the end of the promotional period, the interest rate will shoot up to its standard rate.
A secured line of credit can help you snag the best rates for personal loans. Secured loans often charge a lower interest rate because you put something of value up as collateral. It may be anything of value, such as your car, home, boat, or jewelry. A line of credit offers greater flexibility. You can borrow up to your credit limit, depending on what you need, and you'll only pay interest on the amount you borrow.
We recognize that our best personal loans picks might not be right for everyone. As such, it may be important to also consider quality picks that didn't land a spot on this list. Here are several more picks that may better suit to your needs:
All financial decisions -- including whether to take out a personal loan -- can have serious implications. Take time to decide if a new loan fits comfortably within your budget before rate shopping the best personal loan for you.
A personal loan is money you borrow in a lump sum and pay back in regular installments. Unlike an auto loan or a mortgage, a personal loan can be used to pay for a variety of things, such as an engagement ring, home improvements, or a vacation.
The ideal personal loan combines a low interest rate, reasonable repayment terms, and low fees.Â
The best rates are offered to the most qualified borrowers. Lenders will take your credit score, income, and existing debt into account when determining whether you qualify for a personal loan. Be prepared to provide supporting documentation, like ID and proof of income. Know how much you need to borrow and where you want the funds deposited.Â
Yes, depending on your situation. If you're struggling to make ends meet because of the pandemic, you might qualify for a coronavirus hardship loan. See our guide to coronavirus hardship loans for more information on this type of loan.
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*Personal Loan Disclaimer
Fixed rates from 5.99% APR to 18.28% APR (with AutoPay). SoFi rate ranges are current as of October 5, 2020 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
Marcus by Goldman Sachs Disclaimer
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.
LightStream Disclaimer
* Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
© 2020 Truist Financial Corporation. SunTrust, Truist, LightStream, the LightStream logo, and the SunTrust logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
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