If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
The lowest interest rates are reserved for borrowers with high credit scores. If you're a highly qualified borrower, these five lenders offer some of the lowest interest rates in the industry. The advantage of a low interest rate is the amount of money you'll save over the life of a loan, money that can be redirected to other things you care about, like planning for your future.
|Lending Partner||Min. Credit Score||Loan Amounts||Apr Range||Next Steps|
2023 Award Winner
SoFi Personal Loans
Rating image, 5.0 out of 5 stars.
|Min. Credit Score: 680||Loan Amounts: $5,000 - $100,000||APR Range: Fixed: 8.99%-25.81% APR (with all discounts)|
Rating image, 5.0 out of 5 stars.
|Min. Credit Score: 660||Loan Amounts: $3,500 - $40,000||APR Range: 6.99% - 24.99%|
Rating image, 4.5 out of 5 stars.
|Min. Credit Score: 620||Loan Amounts: $5,000 - $50,000||APR Range: 7.99% - 35.99%|
2023 Award Winner
Rating image, 4.0 out of 5 stars.
|Min. Credit Score: Good credit||Loan Amounts: $5,000 - $100,000||APR Range: 7.99%-25.49% (w/ AutoPay)*|
Wells Fargo Personal Loan
Rating image, 4.0 out of 5 stars.
|Min. Credit Score: 660||Loan Amounts: $3,000 - $100,000||APR Range: 7.49% - 23.74%|
Citi® Personal Loan
Rating image, 4.5 out of 5 stars.
|Min. Credit Score: Excellent||Loan Amounts: $2,000 - $30,000||APR Range: 11.49% to 19.49%|
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 25.81% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 05/19/23 and are subject to change without notice. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-6%, which will be deducted from any loan proceeds you receive.
Autopay: 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. Autopay is not required to receive a loan from SoFi.
The following payment example depicts the APR, monthly payment and total payments made during the life of a personal loan with a single disbursement. All loan rates below are shown with the autopay discount (0.25%) and direct deposit discount (0.25%). The monthly payment for a $30,000 loan with a 60-month term and a fixed annual percentage rate (APR) between 12.95% – 25.03% would be $681.82 – $881.07 in monthly payments, with total payments between $40,909.47 – $52,864.05. Your actual interest rate may be different than the loan interest rates in these examples and will be based on term of loan, your financial history, and other factors, including your cosigner’s (if any) financial history. Lowest rates reserved for the most creditworthy borrowers. See SoFi.com/eligibilityfor details.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Citi Personal Loans Disclaimer:
**Rates as of 09-01-23 . Your APR may be as low as 11.49% or as high as 19.49% for the term of your loan. The lowest rate quoted assumes excellent credit, and a loan term of 36 months or shorter. Otherwise, a higher rate will apply. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the interest rate. If you are in default, your APR may increase by 2.00%. No down payment is required. Rates subject to change without notice.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Loan proceeds cannot be used for post-secondary educational or business purposes.
If you apply online, you must agree to receive the loan note and all other account disclosures provided at loan origination in an electronic format and provide your signature electronically.
Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
*Marcus by Goldman Sachs Disclaimer
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. Rates range from 6.99% to 24.99% APR, and loan terms range from 36 to 72 months. For NY residents, rates range from 6.99%-24.74%. Only the most creditworthy applicants qualify for the lowest rates and longest loan terms. Rates will generally be higher for longer-term loans. 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. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.
Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 8.49% APR with a term of 5 years would result in 60 monthly payments of $205.12. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2023 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
There are a few reasons why getting a personal loan could be a smart idea. For example, if you have credit card debt, a personal loan could allow you to pay off your debt and consolidate several smaller balances into one fixed monthly payment. Or, if you want to do some home remodeling, pay for medical expenses, or cover pretty much any other expenses you may have, a personal loan can allow you to finance these things without having to max out credit cards.
For many borrowers, personal loan interest rates are significantly lower than they could hope to get from a credit card, and personal loans are fixed-rate instruments, so you don't have to worry about interest rates rising. Plus, it's also important to realize that the interest on a personal loan is usually fixed -- so if market rates rise significantly, your personal loan interest rate will stay the same. On the other hand, credit card interest rates are variable and can increase over time.
It's important to mention that for each lender, the lower end of the advertised APR (annual percentage rate) range is generally reserved for borrowers with excellent credit history (think 760 FICO® scores or higher). Additionally, the best interest rates may only be available for borrowers with the highest credit scores. A personal loan for bad credit may be a better option if you don't have a good credit score.
The point is that you generally need a "perfect storm" of qualifications and loan terms to get the best personal loans. Just keep this in mind when evaluating the lenders.
To be clear, while the interest rate is certainly an important piece of the puzzle, it's not the only thing you should consider when deciding on a personal loan. Here are a few potential factors to include in your decision-making process:
The number one rule when you're choosing a personal loan is to shop around. And this doesn't just mean researching your options like you're doing right now. Smart consumers take the time to prequalify with several personal lenders to see about personal loan approval before submitting a hard inquiry and borrowing money.
Because the industry is still relatively young, different personal lenders have dramatically different underwriting processes. It isn't uncommon for one borrower to get offered a fixed rate from one lender that's 8 or 9 percentage points greater or less than the rate they get offered by another. And most personal lenders allow you to check your interest rate and loan terms without affecting your credit score, so there's really no good reason not to check a few (or all) of the potential lenders before making a decision.
Finally, it's worth checking out your local banks and credit unions -- sometimes a credit union in particular is an excellent source for a low-interest way to borrow money and many offer an interest rate discount to existing customers. And if you own a home, it may be worth looking into a home equity loan or home equity line of credit (HELOC). Since these loans are backed by collateral (your home), banks sometimes offer lower interest rates than on personal loans, especially if you have an excellent credit history. (The same reason mortgage rates tend to be lower than personal loan interest rates.)
Need a loan? Check out The Ascent's guide on how to apply for a personal loan.
|Lending Partner||Min. Credit Score||Loan Amounts||APR Range||Best For|
|SoFi Personal Loans||680||$5,000 - $100,000||Fixed: 8.99%-25.81% APR (with all discounts)||Low APR for borrowers with high income|
|Marcus||660||$3,500 - $40,000||6.99% - 24.99%||Low overall APR|
|Achieve||620||$5,000 - $50,000||7.99% - 35.99%||Diverse offerings|
|LightStream||Good credit||$5,000 - $100,000||7.99%-25.49% (w/ AutoPay)*||Borrowers with good credit|
|Wells Fargo Personal Loan||660||$3,000 - $100,000||7.49% - 23.74%||Low APR and fast funding|
|Citi® Personal Loan||Excellent||$2,000 - $30,000||11.49% to 19.49%||Debt consolidation and long repayment terms|
A low interest rate for a personal loan is anything less than 10% in the current interest rate environment%. Rates in that range are usually given to borrowers with excellent credit.
The odds of qualifying for a low-interest loan with poor credit are very low. Typically, the higher your credit score, the lower the interest rate you will be offered. If your credit score is low, taking steps to boost it will take time but will ultimately save you money.
These banks offer some of the best low-interest personal loans:
Our Loans Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2023 The Ascent. All rights reserved.