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Best personal loans of October 2020
These are the top 10 personal loans you can find right now.
The coronavirus pandemic has had an unprecedented impact on Americans’ finances. If you lost your job and are considering taking out a personal loan to cover bills, you might have a difficult time qualifying. Read our financial guide to COVID-19 to explore other options available to you.
When choosing the best personal loans, we considered each lender’s rates and fees, terms and loan amounts, funding speed and borrower perks. We also looked at customer reviews on the Better Business Bureau and Trustpilot, and ran our own user testing with six borrowers to find out what was most important to them.
In January 2020, we updated our scoring methodology to be more comprehensive — giving you a better idea of how providers stack up. We also switched out a few providers:
Best for applying with a cosigner: We swapped out Upgrade for Laurel Road, which is one of a few lenders that accepts cosigners — not coapplicants.
Best for good credit: We originally replaced Laurel Road with Earnest, but as of May 2020 Earnest has stopped offering personal loans. We’ve since replaced Earnest with SoFi.
I need help covering bills during the coronavirus outbreak. Can I get a personal loan?
Possibly — KeyBank, US Bank, Gesa Credit Union and many others are offering low-cost emergency loans to customers impacted by the coronavirus pandemic. These typically come with low or no interest and the option to defer payments for several months.
Aside from these emergency options, other lenders are still offering personal loans as they normally were, though you might be able take advantage of deferred repayments.
LightStream offers one of the best deals around — if you have excellent credit. It has some of the most competitive rates to begin with. And if you get a better offer from another lender, it might beat that rate by 0.1%, as long as the APR meets certain terms and conditions.
While it’s a comparison service, Monevo has lenders in its network that accept borrowers with credit scores as low as 450. But don’t expect to qualify for its larger loan amounts — your loan options may be limited to smaller amounts with rates set at the high maximum APR of 35.99%. However, Monevo can be a good choice if you’re looking for a lender to help build your credit and haven’t had luck hunting down one that will work with a low score.
SoFi may be best known for its student loan refinancing option, but it also offers a wide range of personal loans — and qualified borrowers may be approved for up to $100,000. It offers competitive rates, accepts coapplicants and has no fees. But perks like career coaching and personalized financial assistance are what really set SoFi apart from other lenders.
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.
While Fiona isn’t a direct lender, it can cut down on the time you spend comparing lenders. By filling out a quick online form, you can get personalized rate quotes from multiple lenders at once — without affecting your credit score. But you’ll need to be over 21 to use this service.
Prosper is a pioneering peer-to-peer lender that offers loans funded by investors, instead of a bank. You can qualify with a credit score of 640 and a relatively high debt-to-income ratio, making it a solid choice if you already have loans or credit cards.
You’ll have to pay an origination fee of up to 5%, however. And it can take as long as five business days to receive your loan.
Alliant Credit Union is one of the top lenders for borrowers at the upper end of the fair credit range. Its minimal fees and debt protection plan set it apart from many other lenders in the personal loans sphere. And with a low maximum APR of 10.49%, you can look forward to a loan that competes with rates only offered to borrowers with excellent credit.
Rates from 6.24% to 27.24%
No origination, prepayment or late fees
Offers debt protection for disability, unemployment and death
Laurel Road is one of the only lenders that accepts cosigners — someone who can help you meet eligibility requirements when you can’t on your own. This can help you take advantage of its competitive APRs and perks, like its $300 referral bonus and special rates for healthcare professionals.
This online lender will disburse the funds directly to your creditors if you sign up for debt consolidation. But its low maximum amount might not make it ideal for debts above $35,000.
While other sites often pick Payoff as their top choice for debt consolidation, we chose Discover because it works with more than just credit card debt. Some sites also picked Marcus, but we preferred Discover’s lower rates, longer terms and perks like its 30-day return period.
No origination fee
30-day return policy
Sends debt consolidation loans directly to creditors
GreenSky’s sole focus is on home improvement loans, which means you’ll have a lender that understands the ups and downs of home renovations. It offers a low starting APR of just 4.99%, and borrowers with credit scores as low as 640 are eligible to apply.
But what we like best is its financing process. You get six months to spend up to your credit limit on your GreenSky payment card, which means you’ll only pay interest on the amount you end up using. And if you decide to use a professional from GreenSky’s network, you won’t pay interest on your purchases for 12 months.
Funding designed for home improvement
Rates from 3.99% to 26.99%
Potential 0% interest for first 18 months
Only 6 months to make purchases
Interest-only payments start immediately while you're shopping
Takes 10 days to get your card after signing contract
This online lender is one of the few that can fund your loan as soon as the same business day. And you don’t need to have perfect credit to qualify.
But its starting APR is relatively high at 7.16%. And you might have to pay an origination fee of up to 6%.
Funding as soon as the same day
640 credit score OK
Positive customer reviews
Origination fee of 1% to 6%
Relatively short 10-day grace period of for payments
No loans over $45,000
Loan Amount
$2,000 – $45,000
APR
7.16% to 29.99%
Interest Rate Type
Fixed
Min. Credit Score
640
Min term
36 months
Max term
60 months
Turnaround Time
As soon as the same day
How to choose the best personal loan
Shopping around and comparing offers is the best way to get a good deal. Here are a few tips as you begin your search:
Nail down your priority. Do you care the most about rates? Monthly repayments? Overall loan cost? Consider what matters the most to you and start comparing lenders based on that feature.
Check that you’re eligible. Even if you have excellent credit and a high income, you might not be eligible for every loan. Some lenders don’t operate in every state, while others won’t work with self-employed applicants. If you’re not sure what the requirements are, reach out to the lender’s customer service team and ask.
Use a repayment calculator to compare costs. Comparing APR is a good way to get a quick idea of which loan is the least expensive — as long as they have the same terms. When you’ve narrowed down your choices, use our calculator to find out how much each option might cost you in the short and long term.
Read customer reviews. This can give you an idea of the quality of customer service you can expect with a lender. Take reviews with a grain of salt — people typically don’t go to the Better Business Bureau or Trustpilot when they’re satisfied with a product. But if you notice a pattern of complaints, that could be a red flag.
Score better rates by improving your credit
No matter where your score sits, improving your credit is a simple way to decrease the cost of borrowing. Taking the time to pay down the balances of some of your credit cards, correcting late payments and signing up for Experian Boost to list your phone and utility bills on your credit report are quick ways to improve your score. When a lender sees you have a good handle on your finances, it’s that much more likely to approve you for a lower rate on your next personal loan.
Best personal loan rates and summary
Lender
APR
Best for …
Finder rating
What sets it apart
LightStream
Varies
Excellent credit
★★★★★
Low starting rates compared to other lenders, a 0.5% rate discount and its rate beat program.
SoFi
5.99% to 18.28%
Good credit
★★★★★
An extensive benefits program for borrowers, including unemployment protection as well as financial and career advice.
Alliant Credit Union
6.24% to 27.24%
Fair credit
★★★★★
Only requires a 640 credit score and offers a low maximum APR — compared to other fair credit lenders.
Monevo
3.49% to 35.99%
Bad credit
★★★★★
An award-winning service that helps you compare multiple options, even if your credit score is as low as 450.
GreenSky
3.99% to 26.99%
Home improvements
★★★★★
Financing that combines line of credit and personal loan to help you avoid overborrowing.
Discover
6.99% to 24.99%
Debt consolidation
★★★★★
Consolidate multiple types of debt with a loan that gets paid directly to your creditors — and comes with a 30-day return policy.
Prosper
7.95% to 35.99%
Peer-funded loans
★★★★★
A high minimum debt-to-income ratio and relatively short turnaround time compared to other P2P lenders.
Rocket Loans
7.16% to 29.99%
Loans with a fast turnaround
★★★★★
A turnaround as fast as the same business day with a relatively low credit score cutoff of 640.
Fiona
4.99% to 35.99%
Comparing rates
★★★★★
Allows you to compare offers from multiple lenders after filling out one form — and without affecting your credit score.
Laurel Road
7.50% to 24.75%
Applying with a cosigner
★★★★★
This is one of the only lenders that accepts cosigners — not coborrowers or coapplicants.
How much your loan costs depends on the rates, terms and how much you borrow. Use this calculator to get an estimate of your monthly repayment and the total cost of your loan by entering the APR, loan amount and term.
Alternatives to taking out a personal loan
Taking out a personal loan isn’t always the right move — consider these alternatives before filling out that application:
Home equity loan or line of credit. These products are ideal if you need to borrow money to make home repairs or other renovations that could increase your home’s value. Since your home is used as collateral, these tend to come with lower rates.
Credit card. While APRs are typically higher than your traditional unsecured personal loan, their convenience can help you cover an emergency expense faster than most personal loans.
Pay advance app. If you only need to borrow a few hundred dollars or don’t have the credit to qualify for a traditional personal loan, a pay advance app can help you gain access to your paycheck early — usually for a small membership fee or optional tip.
At the end of the day, the best personal loan depends on your needs and your finances. There are a number of loan types and lenders to cover pretty much any situation, so do some careful research when you’re searching for a loan. Start by reading our guide to personal loans so you know where to look and how to tell when an offer really fits your needs.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
The most qualified applicants have a minimum credit score of 680. Laurel Road tends to be best for people with annual income above $60,000 and total debt of less than 40% their income. If you don’t think Laurel Road is best for you, explore other loan options.
The most qualified applicants have a minimum credit score of 680. Laurel Road tends to be best for people with annual income above $60,000 and total debt of less than 40% their income. If you don’t think Laurel Road is best for you, explore other loan options.
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 950 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
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finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
