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Best Peer-to-Peer Lenders for 2024

Review Updated
Dana George
By: Dana George

Our Loans Expert

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

If you're looking for a personal loan, peer-to-peer lenders offer an alternative option. The best peer-to-peer lenders offer secure loans to borrowers with a wide-range of credit scores. Here, we'll explain what a peer-to-peer loan is, when such a loan is a good idea, and how to apply.

As of Feb. 05, 2024
Lending Partner Min. Credit Score Loan Amounts Apr Range Next Steps
Award Icon 2024 Award Winner
SoFi Personal Loans
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
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Min. Credit Score: 680 Loan Amounts: $5,000 - $100,000 APR Range: Fixed: 8.99%-29.99% APR (with all discounts)
Award Icon 2024 Award Winner
LightStream
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Min. Credit Score: Good credit Loan Amounts: $5,000 - $100,000 APR Range: 7.49%-25.49% (w/ AutoPay)*
LendingClub
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Min. Credit Score: 600 Loan Amounts: $1,000 - $40,000 APR Range: 9.57% - 36.00%
Credible
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Min. Credit Score: 640 Loan Amounts: $600-$200,000 APR Range: 4.60% - 35.99%
LendingTree
Rating image, 3.5 out of 5 stars.
3.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Min. Credit Score: varies by lending partner Loan Amounts: $1,000 – $50,000 APR Range: 7.49%-35.99%
Disclaimers

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. © 2024 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.

*SoFi Personal Loan Disclaimer

Fixed rates from 8.99% APR to 29.99% 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 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. 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%-7%, 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.


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.

Impact to credit score: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Best For: Exclusive borrower benefits

Award Icon 2024 Award Winner
Logo for SoFi Personal Loans
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Minimum Credit Score
680
Loan Amounts
$5,000 - $100,000
APR Range
Fixed: 8.99%-29.99% APR (with all discounts)
Term Length
24 - 84 months

SoFi was chosen as a best peer-to-peer lender because of its positive overall approach to its customers (called members). Besides low rates, high loan limits, and no fees required, SoFi borrowers get access to financial planning services and estate planning services.

  • Competitive interest rates
  • No fees or prepayment penalty
  • High maximum loan limit
  • Same-day funding available
  • High minimum loan amount
  • High minimum credit score
  • No in-person support

Best For: High maximum loan amounts

Award Icon 2024 Award Winner
Logo for LightStream
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Minimum Credit Score
Good credit
Loan Amounts
$5,000 - $100,000
APR Range
7.49%-25.49% (w/ AutoPay)*
Term Length
24-144 months (varies by loan purpose)

LightStream was selected as a best peer-to-peer lender because the loan limit is high (up to $100,000), the interest rate is very low, and there are no loan fees. Loans fund in as little as one day. Qualification requirements are on the strict side, as only well-qualified applicants will be approved.

  • Competitive APRs
  • No fees or prepayment penalty
  • Same-day funding available
  • High maximum loan amount
  • Better APRs available
  • No pre-approval for personal loans

Best For: Low rates for strong credit borrowers

LendingClub

Logo for LendingClub
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Minimum Credit Score
600
Loan Amounts
$1,000 - $40,000
APR Range
9.57% - 36.00%
Term Length
24-60 months

LendingClub is our pick for best peer-to-peer lenders because of the low minimum loan amount ($1,000) and low interest rates for qualified borrowers. Joint applicants are allowed, as long as one borrower meets its credit standards. We love LendingClub's transparency. Informed consumers can make better choices, and LendingClub makes it easy to find out what they require and what you'll pay.

  • Wide range of loan amounts, ranging from $1,000 to $40,000
  • No prepayment penalty
  • Allows for joint applicants, as long as one borrower meets credit standards
  • Origination fees

Credible

Logo for Credible
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Minimum Credit Score
640
Loan Amounts
$600-$200,000
APR Range
4.60% - 35.99%
Term Length
12 - 84 months

Credible offers a personal loan marketplace where you can see prequalified rates from multiple lenders at once. There's no fee or credit score impact to check your rates and Credible says it won't sell your data.

  • Check multiple rates at once
  • Wide range of options
  • No fee to use the service
  • No prepayment penalties
  • Not a direct lender
  • Approval isn't guaranteed

LendingTree

Logo for LendingTree
Rating image, 3.5 out of 5 stars.
3.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Minimum Credit Score
varies by lending partner
Loan Amounts
$1,000 – $50,000
APR Range
7.49%-35.99%
Term Length
12 - 60 months

For those who hope to minimize the amount paid in interest, Lending Tree offers loans with a flexible terms. This peer-to-peer lender also offers one of the lowest interest rates in the industry, perfect for the well-qualified borrower.

  • Loans as small as $1,000 are good for covering small emergencies
  • Cosigners accepted
  • Low APRs available to highly qualified borrowers
  • Loans available to applicants with fair credit
  • Takes the guesswork out of rate shopping
  • APRs can be extremely high
  • Origination fees add to loan expenses
  • Some lender partners conduct only hard credit checks
  • Some lender partners charge a prepayment penalty
  • Can take up to seven business days to receive funds

What is a peer-to-peer loan?

To understand peer-to-peer loans, it helps to start with how this loan differs from a traditional loan. There are two types of peer-to-peer loans: personal and small business. Unlike a traditional loan, a peer-to-peer loan is funded by investors or a group of investors. Also referred to as "P2P" or "crowdlending," these loans are available only through online marketplaces. Once someone applies for a loan, the marketplace (or lender) matches borrowers with investors willing to make the loan. It's the marketplace that reviews loan applications, underwrites the loan, and assigns it to a risk category.

Risk categories

The assigned risk category is based on factors like credit score, debt ratio, and employment history. Here's how it works: An applicant with a low credit score is considered a high-risk borrower. Any P2P lender (or lenders) that agree to lend that person money knows they're taking a risk. Therefore, the interest rate on the loan is set higher. That higher interest rate is why some lenders choose that borrower's profile over others.

On the other hand, a person with a high credit score (and other positive credit factors, like a low debt ratio), is categorized as low-risk. While lenders won't earn as much interest funding this loan, they're also taking less risk.

For an investor who wants to "mix up" their lending portfolio, it makes sense to fund some high-risk and some low-risk loans, but that's up to the investor.

Secured and unsecured loans

A secured loan is secured by collateral. Say a small business wants to borrow $100,000. To help minimize the risk of loaning that much money, a P2P lending platform may require the business to put up collateral. It could be anything of value, from a small airplane to a vintage car, or business equipment. If the borrower fails to make payments as agreed, the lender has the right to take possession of the collateral, sell it, and recoup the loss.

An unsecured loan requires no collateral but may carry a higher interest rate. Still, if you've decided that it's better to finance a project rather than pay cash, it may be worth it to pay a bit more interest for a loan that does not require collateral.

How to apply for a peer-to-peer loan

The best peer-to-peer lenders make it easy to apply through their websites. Here is the information and documentation you'll need to supply:

  • Name
  • Address
  • Date of birth
  • Proof of employment
  • Proof of income
  • Social Security number
  • Personal information, like whether you currently rent or own your home and how much debt you carry
  • If you're applying with a co-signer, you'll need to provide that person's information too.

Apply from a position of strength

As you've likely noticed, the lowest rates and best loan options go to those with the highest credit scores and best overall financial picture. One of the worst mistakes a borrower can make is to believe they don't have control over their credit score or that they must accept whatever interest rate they're offered. That is simply untrue. If you're taking out a loan to renovate your home, go on vacation, or for any other reason that can wait, decide whether you can postpone the loan until you've had time to increase your credit score.

Here are five ways to quickly boost your score.

1. Check your credit report

Once a year, you are eligible for a free credit report from each of the "big three" credit reporting agencies. You can order your free reports from Experian, TransUnion, and Equifax by submitting one simple form at annualcreditreport.com. Once you have your reports in hand, go over each with a fine-tooth comb.

You're looking for any mistakes that may be contained in those reports. For example, a report may indicate you still owe money on a debt you've paid off or include a debt that does not belong to you. If you find a mistake, dispute it with the credit reporting agency in question. The agency has 45 days to find evidence that its report is correct or to remove the remark. Even the smallest mistake in your credit history can drag your score down, so make sure there aren't any.

2. Stay current with bills

Each late or missed payment lowers your credit score. In addition to paying all current bills on time, focus on getting caught up on anything that may be overdue.

3. Don't close paid-off accounts

Closing unused credit card accounts may seem like a good idea but it will actually harm your credit score. By keeping them open, you're indicating you have access to credit but use it wisely.

4. Apply for credit only when you need it

Your credit report indicates each time you apply for credit, and creditors worry about anyone who appears to be opening several accounts during a short period of time. Only apply for credit you actually need.

5. Get help from the outside

Things like rent paid to a landlord and utility payments are not typically reported to the credit bureaus. Into that void has stepped companies that, for a fee, will make sure rent and utility payments get reported to all of the big three credit reporting agencies. Those positive reports can quickly build your credit score. However, there is a fee involved. For example, ExtraCredit.com charges $24.99 for the service. If you're looking to build your credit score fast, though, it is worth looking into.

Most peer-to-peer lenders conduct a soft credit check, which means it won't impact your credit score. It's not until you commit to one lender that it runs a hard credit check that will ding your score a bit. Don't worry, though. A few on-time payments will send your score back up.

Apply with at least three lenders (within a two-week time frame so all personal loan inquiries appear as one on your credit report). Once you have approvals, compare them side by side to determine which works best for you. The best way to pay a loan off fast is to go with the lender that has the lowest interest rate and loan fees.

When a P2P loan makes sense

If one of the following applies to you, include peer-to-peer lenders as you're shopping for a personal loan. Even if you end up going with a traditional lender, you'll know that you investigated all options.

  • You have a low credit score. If you find you don't qualify for a traditional personal loan due to having a bad credit score, you may find a peer-to-peer lender more forgiving.
  • You have a high credit score. When comparing the best personal loans, include a few peer-to-peer lenders. It may be a peer-to-peer lender that offers the lowest rate and best loan terms.
  • You own a small business. If you have a business plan that makes sense and you're confident you can repay the loan, a business loan can help
Lending Partner Min. Credit Score Loan Amounts APR Range Best For
SoFi Personal Loans 680 $5,000 - $100,000 Fixed: 8.99%-29.99% APR (with all discounts) Low APR for borrowers with high income
LightStream Good credit $5,000 - $100,000 7.49%-25.49% (w/ AutoPay)* Borrowers with good credit
LendingClub 600 $1,000 - $40,000 9.57% - 36.00% Low APR for borrowers with good to excellent credit scores
Credible 640 $600-$200,000 4.60% - 35.99% Best for smaller loans
LendingTree varies by lending partner $1,000 – $50,000 7.49%-35.99% Best for long-term loans

FAQs

  • While some lenders put restrictions on how a peer-to-peer loan can be used, many do not. As long as you're creditworthy and make payments as promised, lenders are not concerned about how the funds are used.

  • Peer-to-peer lending is safe for borrowers. It's the lender who takes a risk, a fact that helps explain why interest rates can be so high. Some lenders hedge their bets against loss by charging higher interest rates. Some also make money by charging fees -- like origination fees, administrative fees, late payment fees, and prepayment penalties.

  • Since 2008, the Securities and Exchange Commission (SEC) has regulated peer-to-peer lending. The SEC oversees the lending-investing process. The Consumer Financial Protection Bureau and Federal Trade Commission regulate the borrower side of peer-to-peer lending.

Our Loans Expert