Best Personal Loans Of 2024: Top Lenders & Lowest Rates

Additional features such as no fees, rate reductions, and mobile app availability can make certain personal loan providers stand out. It’s always advisable to compare personal loans from several lenders before making your decision.

Top 5 US Best Personal Loan Lenders of 2024

1. SoFi Personal Loan

SoFi stands out for its innovative lending approach, offering personalized loan options suited to individual financial circumstances.

For small business owners, SoFi provides competitive rates and favorable terms, including the absence of origination fees and prepayment penalties. Additionally, SoFi offers member benefits such as career coaching and financial planning resources, which provide added value beyond the loan itself, making it a practical choice for entrepreneurs aiming to grow their businesses and manage their finances effectively.

• Loan amount. $5K-$100K
• Key Facts: SoFi is a strong option for good-credit consumers and offers low rates, no fees and flexible payments.
• Qualifications:
  • Must legally be an adult in your state.
  • Must be a U.S. citizen, permanent resident or non-permanent resident with valid documentation.
  • Must be employed, have sufficient income or have an offer of employment to start within 90 days.
• Available Term Lengths: 2 to 7 years
• Fees:
  • Origination fee: 0% to 7%.
  • Late fee: None.
• Pros:
  • Joint loan option.
  • Multiple rate discounts.
  • Mobile app to manage loan.
• Cons:
  • No option to choose initial payment date.
  • High minimum loan amount.

2. LightStream

Lightstream, a division of Trust Bank, is known for its range of loan options and competitive rates. The downside can be its strict eligibility criteria, making it difficult for those with less-than-stellar credit history to gain approval.

• Loan amount: $5K-$100
• Key Facts: LightStream targets strong-credit borrowers for loans with no fees and low rates that vary based on loan purpose.
• Qualifications:
  • Minimum credit score: 660, but can vary depending on the loan purpose and amount.
  • Maximum debt-to-income ratio: 50%.
  • Minimum credit history: 3 years.
  • Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
  • Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
• Available Term Lengths: 2 to 7 years
• Fees:
  • Origination fee: None.
  • Late fee: None.
• Pros:
  • No fees.
  • Rate discount for autopay.
  • Long repayment terms and large loan amounts.
  • Fast funding.
  • Rate Beat program and Experience Guarantee.
• Cons:
  • No option to pre-qualify.
  • No direct payment to creditors with debt consolidation loans.
  • High minimum loan amount.

3. Happy Money

Happy Money offers a useful feature by directly paying other creditors during the consolidation process. This approach can help save on interest when consolidating credit. It is a viable option for individuals with a good credit history who are carrying significant debt. The company has also assisted clients who faced job loss during the repayment period.

• Loan amount: $5K-$40K
• Key Facts: Happy Money offers loans plus ongoing support to help good-credit borrowers consolidate credit card debt.
• Qualifications:
  • Must be a U.S. citizen or permanent resident.
  • Must have a valid Social Security number.
  • Minimum credit score: 640.
  • Minimum credit history: 6 years and 2 accounts.
  • Maximum debt-to-income ratio: 55%.
  • No bankruptcies filed in past two years.
• Available Term Lengths: 2 to 5 years
• Fees: Origination fee: 1.5% to 5%.
• Pros:
  • Pre-qualify with soft credit check.
  • Direct payment to creditors with debt consolidation loans.
  • Fast funding.
  • Hardship program.
• Cons:
  • Origination fee.
  • No rate discount.
  • No joint, co-sign or secured loan options.
  • No option to choose initial payment date.

4. Upstart

Upstart does not require a minimum credit score for loan applications, making it accessible to a wide range of borrowers. Applicants with lower credit scores or inconsistent credit histories may receive offers with high APRs. Loan amounts vary from $1,000 to $50,000, with available term lengths of three or five years.

Upstart provides flexibility in payment dates, and funding may occur as quickly as the next business day. Requirements include employment, stable income, a personal bank account, an email address, and a Social Security number. Additional fees may apply, such as origination fees, late fees, or statement fees.

• Loan amount: $1K-$50K
• Key Facts: Upstart is a good option for those who have short credit histories and promising financial futures.
• Qualifications:
  • Must be a U.S. citizen or permanent resident living in the U.S.
  • Must be at least 18 years old in most states.
  • Must have a valid email address and Social Security number.
  • Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
  • Must have a personal bank account at a U.S. financial institution with a routing number.
  • No bankruptcies in the last 12 months.
  • No current delinquent accounts on your credit reports.
  • Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
  • Minimum credit score: None.
  • Minimum annual income: $12,000.
• Available Term Lengths: 3 to 7 years
• Fees:
  • Origination: 0% to 12%.
  • Late fee: 5% of the unpaid amount or $15, whichever is greater.
  • Insufficient funds fee: $15.
• Pros:
  • Accepts borrowers with bad credit or thin credit histories.
  • Has a low income requirement.
  • Fast approval and funding.
  • Allows secured loans.
  • Option to change your payment date.
• Cons:
  • Origination fee.
  • No rate discounts.
  • No joint or co-signed loans.
  • No direct payment to creditors on debt-consolidation loans.

5. Upgrade

Upgrade’s personal loans include a requirement for automatic payments. This feature is designed to help prevent defaults but may not be ideal for individuals with inconsistent income.

• Loan amount: $1K-$50K
• Key Facts: Upgrade offers personal loans plus credit-building tools; you’ll need strong cash flow to qualify.
• Qualifications:
  • Minimum credit score: 580.
  • Minimum number of accounts on credit history: One account.
  • Maximum debt-to-income ratio: 75%, including mortgage payments.
  • Minimum length of credit history: Two years.
  • Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
• Available Term Lengths: 2 to 7 years
• Fees:
  • Origination fee: 1.85% to 9.99%.
  • Late Fee: $10.
  • Failed payment fee: $10.
• Pros:
  • Secured and joint loans.
  • Multiple rate discounts.
  • Mobile app to manage loan payments.
  • Direct payment to creditors with debt consolidation loans.
  • Long repayment terms on home improvement loans.
• Cons:
  • Origination fee.
  • No option to choose your payment date.

Top Places to Secure a Personal Loan

You can obtain a personal loan from online lenders, banks, and credit unions. The ideal personal loan should have rates, terms, and features that align with your financial needs.

1. Online Lender Loans. With online lenders, the entire loan process — from application to receiving the funds — can be handled at your convenience without leaving your home. Online lenders often offer the quickest funding times, with some providing same-day or next-day funding.
2. Bank Loans. Some banks offer rate reductions and benefits to their existing customers. Generally, banks require borrowers to have good to excellent credit (scores of 690 or above) to qualify for personal loans.
3. Credit Union Loans. To secure a personal loan from a credit union, you need to be a member. Credit unions tend to be more accommodating to borrowers with fair or poor credit (scores below 690), and federal credit unions limit interest rates to a maximum of 18%.

How to Evaluate the Best Personal Loan Providers

When comparing personal loans, consider the following factors:

• Pre-qualification. Many lenders allow you to pre-qualify online, giving you an estimate of your interest rate and loan terms. This process involves a soft credit check that won’t impact your credit score. It’s advisable to pre-qualify with several lenders and compare offers and features.
• Annual Percentage Rates (APRs). Since APRs include both interest rates and fees, they provide a straightforward comparison of the costs across different personal loan offers. You can use a personal loan calculator to understand how the APR affects your monthly payments and total loan expenses.
• Funding Speed. The time required to receive a personal loan can vary by lender. Many online lenders approve applications and disburse funds within a day or two, while banks and credit unions might take up to a week.
• Repayment Terms. Lenders typically offer a range of repayment options, usually between two to seven years. Shorter terms lead to less interest paid, while longer terms result in lower monthly payments. Depending on your financial situation, one option may be more suitable than the other.
• Loan Amount. The amount you need will influence which lender is the best fit. Most lenders offer loan amounts between $2,000 and $50,000, though some go as high as $100,000. Assess your financial needs, whether it’s consolidating credit card debt or estimating the cost of a home renovation, and choose a lender that meets your required loan size.
• Additional Features. Consider whether the lender provides any special features that align with your financial goals. Benefits such as rate discounts for autopay, financial planning resources, or hardship assistance programs might be advantageous.

Personal loan interest rates and fees

Personal loan interest rates differ by lender, and the rate you receive depends on factors like your credit score, income and debt-to-income ratio (DTI). Here’s a look at current average personal loan rates.

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from July 1, 2024, through July 31, 2024. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.

Some lenders charge origination fees to cover the cost of processing the loan. Lenders typically deduct the fee before sending you the funds, but it is included in the loan’s annual percentage rate.

Pros and cons of personal loans

Depending on your financial situation and the loan’s purpose, a personal loan can be the right move or one you should sidestep.

Pros

• Lower starting APRs than credit cards.
• Fixed rates and monthly payments.
• Flexible loan amounts.
• No collateral.

Cons

• Maximum APRs can be high.
• Possible fees.
• Increases debt.

How to get a personal loan

• Review your credit. Your credit score plays a significant role in a lender’s decision to approve your personal loan and the interest rate you’ll be offered. Correct any mistakes that could negatively impact your score and try to reduce your debt to improve your DTI ratio. You can obtain a free credit report via NerdWallet or visit AnnualCreditReport.com for a free report.
• Pre-qualify with various lenders. Pre-qualification provides an estimate of the rate and terms you may receive. By comparing pre-qualified offers, you can find the lowest APR and monthly payments that suit your financial situation.
• Submit your application. The official loan application process generally requires documentation to confirm your identity and income. Upon approval, you can expect to receive your loan funds within a week.