LightStream personal loans
Finder Rating: 4.83 / 5 ★★★★★
Min. credit score | 660 |
---|---|
APR | 5.73% to 19.99% |
Loan amount | $5,000 to $100,000 |
Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure
A personal loan is money that you borrow to cover a large, one-time expense and repay with interest in monthly installments. It can be an inexpensive way to finance a big project like a home improvement or consolidate high-cost debt — at least compared to credit cards. But in a time of rising interest rates, getting the lowest rate and no fees requires near-perfect credit.
While rates typically range from 4% to 36%, the average personal loan interest rate is now 11.23%, according to the Federal Reserve, up from 9.09% in 2021. And while the best personal loans don’t charge fees, a no-fee personal loan is more difficult to come by than it was a year ago. The lenders in this list offer some of the most competitive rates and terms available today, with options for all credit types.
LightStream personal loans
Finder Rating: 4.83 / 5 ★★★★★
Min. credit score | 660 |
---|---|
APR | 5.73% to 19.99% |
Loan amount | $5,000 to $100,000 |
SoFi personal loans
Finder Rating: 4.45 / 5 ★★★★★
Min. credit score | 680 |
---|---|
APR | 8.99% to 23.43% |
Loan amount | $5,000 to $100,000 |
Discover personal loans
Finder Rating: 4 / 5 ★★★★★
Min. credit score | Good to excellent credit |
---|---|
APR | 6.99% to 24.99% |
Loan amount | $2,500 to $35,000 |
Upstart personal loans
Finder Rating: 4.15 / 5 ★★★★★
Min. credit score | 300 |
---|---|
APR | 5.40% to 35.99% |
Loan amount | $1,000 to $50,000 |
OneMain Financial personal loans
Finder Rating: 3.4 / 5 ★★★★★
Min. credit score | Varies |
---|---|
APR | 18% to 35.99% |
Loan amount | $1,500 to $20,000 |
Monevo personal loans
Finder Rating: 4.4 / 5 ★★★★★
Min. credit score | 300 |
---|---|
APR | 5.40% to 35.99% |
Loan amount | $500 to $500,000 |
PenFed Credit Union personal loans
Finder Rating: 3.6 / 5 ★★★★★
Min. credit score | 650 |
---|---|
APR | 7.74% to 17.99% |
Loan amount | $600 to $50,000 |
Finder’s lending experts review more than 120 lenders against 16 key metrics to narrow down the best personal loans:
We weight the lender’s minimum and maximum APR to focus on the best low-interest personal loans. And we regularly review our top selections as lenders enter and leave the market.
The following lenders could be a good option but didn’t quite measure up to our picks for the best in category.
Upgrade specializes in fast fair-credit personal loans as an alternative to what you’d find at a bank. But it charges high origination fees compared to Upstart, which it deducts from your funds before you receive it. Borrowers who meet its 620 credit score minimum may be able to find better options elsewhere.
While there’s a chance you won’t pay an origination fee at Prosper, this lender charges slightly higher APRs than Upstart — from 6.99% to 35.99%. Upstart’s unique credit rating system also makes it easier to qualify for a good rate even when your credit history is thin. So while Prosper might accept credit scores as low as 600, Upstart may offer a better deal to fair-credit borrowers.
Happy Money (formerly Payoff) offers a niche product for credit card consolidation. But rates start at a high 8.99% APR, and origination fees are as high as 5% — meaning you might not be able to save as much as with other lenders. The fact that it doesn’t consolidate other types of debt makes it more limited than our debt consolidation winner, Discover.
Keep in mind these top factors to find the best personal loan for your budget and needs:
Also consider how the application process meets your needs by looking at factors like the turnaround time and whether you can apply online. When you’ve narrowed down your choices, prequalify with your top picks to compare personalized offers — if those lenders offer prequalify.
Ideally, a personal loan should help you save money or even increase your wealth. The most common way to use a personal loan is to consolidate debt or invest in a home improvement.
Debt consolidation involves taking out a loan to pay off one or more credit accounts. The average credit card rate is 19.07%, according to the Federal Reserve, about 8 percentage points higher than your average personal loan. That means you can likely save on interest and get out of debt more quickly simply by using a personal loan to pay down your accounts.
The low, fixed rates of a personal loan make it great for small home improvements that can increase your home’s equity by increasing its value, such as renovating a bathroom.
A personal loan can be a lifesaver to help cover a medical or emergency expense, but it might not be the best choice in a pinch.
Personal loan monthly payments are the same every month, which can strain your budget if your income changes. Payment flexibility can be important: 54% of Americans are stressed about personal loan payments, according to Finder’s Consumer Confidence Index, while only 45% worry about credit card debt.
You may be able to combine these tactics to ensure a low interest rate on a personal loan.
Check your credit score online to understand your credit score range and get an estimate of the number your lender will see.
Knowing your credit score can help you understand the types of rates you’re eligible for. Most personal loans require a FICO score of 670 or higher. If your FICO score is below 670, consider taking steps to improve your credit first, such as paying your bills on time, paying down your debt and correcting any inaccuracies on your credit report.
Not all lenders rely on your FICO score alone to determine your creditworthiness. More lenders than ever are using algorithms to assess the creditworthiness of borrowers.
Some, like Upstart, have found their own algorithms are more accurate at predicting your likelihood of defaulting on a loan. Using these algorithms allow lenders to specialize in a specific type of borrower — in Upstart’s case, young professionals who haven’t had the chance to build a strong credit history.
You still need strong personal finances to qualify with these lenders, but these alternative credit scoring methods offer more ways to highlight financial strengths like a consistent savings habit.
Lenders tend to offer lower interest rates to short-term loans. For example, SoFi offers the lowest personal loan rates on two-year loans, while rates for their seven-year loans can be more than 5% higher.
The gap is tighter at LightStream, where seven-year loan rates are almost 4% higher than their two-year loans.
The National Credit Union Administration (NCUA) bars federal credit unions from charging more than 18% in interest. This maximum rate is regularly updated by the NCUA board, which could extend the cap or increase it on September 10, 2024.
But even if the rate increases a percentage point or two, it’s still lower than the average rates of many other lenders. For example, the average interest rate on Upstart personal loans is 26.57%, even though it offers rates as low as 6.7% APR.
Your bank might offer a relationship discount on your interest rate if you have a current checking or savings account. Banks can offer discounts as high as 0.5%, and using your own bank may also help you get your loan funds faster.
Some lenders offer a 0.25% rate discount if you sign up to have payments automatically debited from your account. And this rate can be on top of your other relationship discounts if you use autopay for a loan from your current bank.
Lenders like LightStream don’t just offer competitive rates, but also guarantee to beat other lenders if your offer meets specific requirements.
Don’t just go with the first loan offer you find. Comparing lenders can sometimes lead you to an even better deal.
Prequalifying for a loan gives you the opportunity to see what kind of loan you can qualify for based on some basic financial and credit information. Because it usually involves a soft credit check, it doesn’t affect your credit score — unlike an application. There’s no guarantee you’ll get the rates and terms quoted, but prequalifying can give you an idea of the kind of offer you might receive.
If you decide to pursue the personalized offer after prequalification, the lender moves forward with a hard credit pull and asks you to provide more documents for loan approval.
To see the rates you may qualify for without going through the prequalification process, most lenders offer calculators that allow you to enter your own financial details. But the results you get won’t be as accurate and they definitely aren’t binding.
While banks are a traditional choice for borrowing money, you can get a personal loan from a range of different lenders, including digital lenders and fintechs.
Lender type | Details |
---|---|
Credit unions | Customer-owned institutions that offer low rates to a wide range of credit types compared to other lenders. Federal credit unions legally can’t charge rates over 18%. |
Banks | Offers some of the lowest rates out there with a credit score of at least 670 to qualify — and some only offer loans to current customers. |
Online lenders | Lenders may offer higher rates on average, but typically put less weight on credit score than a bank or credit union. |
Connection services | Helps you prequalify with partner lenders to find the lowest rate you qualify for. |
Your APR is not just your interest rate. It includes the interest and fees you’d pay over one year, giving you a more accurate idea of how much your loan is going to cost.
Fees that typically factor into your APR include:
If you have good or excellent credit, you’ll likely have the same APR and interest rate. That’s because lenders generally don’t charge application or origination fees unless they see the borrower as a risk. But loans for borrowers with fair and poor credit almost always have origination fees.
Regardless, Finder uses APR to provide an apples-to-apples way to compare the cost of a loan among lenders.
Your credit score is one of the most important factors that lenders use to determine the interest rates you qualify for. The two credit scoring models are FICO and VantageScore 4.0.
It’s not a perfect science, and FICO and VantageScore have some differences, but your credit scores can help you predict what interest rates you may receive when borrowing credit and help you choose a lender that can accommodate your credit rating.
Credit score range | Average estimated interest rate (%)* |
---|---|
720+ | 12.55% |
680-719 | 19.60% |
660-679 | 30.16% |
640-659 | 41.55% |
620-639 | 55.31% |
580-619 | 83.61% |
560-579 | 117.42% |
Less than 560 | 158.87% |
*Source: LendingTree consumer data, Q4 2022.
If you need your money fast, you can find lenders that fund your loan in 24 hours or less. But you may find yourself trading a more competitive interest rate for a quicker turnaround time.
Consider the following factors that could affect how quickly your loan is funded:
Doing your research and having your documents in order can also help move things along.
Planning how to manage your loan once it’s funded can give you a little more confidence as you apply.
Keep in mind these three loan management features:
Narrow down top lenders by APR, loan amount and more to find the best for your budget and goals. Select Compare for up to four lenders to see their details side by side. Select Learn more to go to a partner’s site or More info to read our editorial review.
A personal loan may not be the best option in all situations — especially when rates are high and it’s difficult to qualify for a low rate.
Consider four alternatives before you apply:
Learn about the security features of the COLDCARD Mk4 — a Bitcoin-only hardware wallet.
Gas prices are on the rise, which has the vast majority of Americans worried about what the future holds.
Your simple and straightforward guide to ETFs, how they work and the different types available.
Learn how you can use various short-selling strategies to further your Bitcoin profits.
Your place to check out the latest Finder Money Newsletter.
Discover more about the 31 assets in Coinbase Ventures Portfolio and its $484bn market cap.
Data on the personal saving rate in the US.
A breakdown of disposable income stats for the US including historical charts, averages and more.
The best trading apps come with low fees and are easy to use.