Find the best choice for your personal needs.
When searching for the best personal loan, the most important factor is you. Your situation will determine what you need in a lender. Even if you have great credit, compare your options carefully before settling on a decision. It could make the difference between a decent personal loan and the best one for you.
Our top pick: LendingClub Personal Loan
- No prepayment penalties
- Flexible loan terms
- Fast and easy application
Our top pick: LendingClub Personal Loan
- Min. Credit Score Required: 640
- Min. Loan Amount: $1,000
- Max. Loan Amount: $40,000
- APR: 6.95% to 35.89%
- Requirements: US citizen or permanent resident, verifiable bank account, steady source of income, ages 18+.
The 7 best personal loans you can apply for in April 2019
| Lender | APR | Best for… | |
|---|---|---|---|
LendingClub |
6.95% to 35.89% | Quickly comparing multiple types of loans | |
Prosper |
6.95% to 35.99% | Transparent terms and fair practices | |
SoFi |
5.99% to 16.24% | Additional perks like career advice and networking events | |
Best Egg |
5.99% to 29.99% | Loans with a fast turnaround | |
Even Financial |
3.84% to 35.99% | Comparing rates from different lenders | |
Laurel Road |
8.01% to 16.30% | Doctors and other healthcare professionals | |
CompareFirst |
2.99%–36% | Comparing lenders that accept cosigners |
How did we choose these products?
We evaluate lenders and connection services on factors that matter most to borrowers: interest rates, fees and reviews posted to websites like the Better Business Bureau and Trustpilot. Because both variable and fixed rates have been increasing steadily, lenders that continue to offer a low APR typically make it to our list of best personal loans. We update our list of best personal loans regularly to reflect changes in the what each provider offers.
To learn more about how we rate each factor, read our personal loan ratings methodology.
How top personal loan providers stack up
Need a personal loan but not sure where to start? Take a look at how our top picks for personal loan providers. If you’re interested, you can learn more by reading our full review.
LendingClub
- Starting APR: 6.95%
- Loan amounts: $1,000 to $40,000
- Loan terms: 3 years to 5 years
- Eligibility requirements: US citizen or permanent resident, verifiable bank account, steady source of income, ages 18+.
LendingClub is an award-winning peer-to-peer lender that connects borrowers with investors. It offers a risk-free quote of the rates you might qualify for so you can easily compare your offer with other lenders. And if you prefer dealing with one lender for all of your borrowing needs, LendingClub also offers car loans and financing for small businesses.
Prosper
- Starting APR: 6.95%
- Loan amounts: $2,000 to $40,000
- Loan terms: 3 years to 5 years
- Eligibility requirements: Must be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score.
Prosper was one of the first peer-to-peer lenders to pop up in the US and has become a trusted name in the industry. It offers a variety of loan options, including personal loans for debt consolidation, special occasions, home improvement and small business financing.
SoFi
- Starting APR: Variable rates start at 5.74% with autopay. Fixed rates start at 5.99% with autopay.
- Loan amounts: $5,000 to $100,000
- Loan terms: 2 years to 7 years
- Eligibility: Ages 18+, US citizen or permanent resident
SoFi may be best known for its student lona refinancing option, but it also offers a wide range of personal loans — and qualified borrowers may be approved for up to $100,000. In addition, you can take advantage of its unique features, like networking events and free financial counseling.
Best Egg
- Starting APR: 5.99%
- Loan amounts: $2,000 to $35,000
- Loan terms: 3 years to 5 years
- Eligibility: Must have a FICO® score of 640+ and be a US citizen or permanent resident. Not available in IA, WV, VT, PR, or GU.
Best Egg may have one of the lowest maximum amounts, but it makes up for it with speed. It’s one of the fastest peer-to-peer lenders out there, with turnaround in as little as one day.
Even Financial
- Starting APR: 3.84%
- Loan amounts: $1,000 to $100,000
- Loan terms: 2 years to 7 years
- Eligibility: Credit score of 550+, American citizen or permanent resident and ages 21+
While Even Financial isn’t a direct lender, it can cut down on the time you spend comparing lenders. By filling out a quick, risk-free online form, you can get potential rate quotes from up to five lenders at once. And unlike many of the other lenders on this list, you only need a score of 580 to potentially qualify for a personal loan.
Laurel Road
- Starting APR: 8.01%
- Loan amounts: $1,000 to $45,000
- Loan terms: 3 years to 5 years
- Eligibility: Must be a US citizen or permanent resident with a valid I-551 card. Best for people w/ 680+ credit scores and $60,000+ annual income.
Formerly known as DRB, Laurel Road lender offers no-fee personal loans at competitive rates. It also has a few other perks, namely its 0.25% discount for using autopay, $300 cash bonus for referring a friend and special terms for doctors, dentists and medical residents.
CompareFirst
- Starting APR: 2.99%
- Loan amounts: $2,000 to $50,000
- Loan terms: 1 year to 5 years to 5 years
- Eligibility: Must be a US citizen or permanent resident, age 18 or older, with a credit score of 580 or higher, and have a minimum annual income of $35,000.
CompareFirst has a network of lenders that work with borrowers of all credit backgrounds, including those who want to borrower with a cosigner. It’s powered by Backed Inc. a direct lender that specializes in cosigned loans designed to help young adults build up their personal credit. And like other comparison sites, you’ll see your potential rates from several lenders when you complete its online form.
Best personal loans by credit score
| Credit score | Best lender | Why you might like it | |
|---|---|---|---|
| Very good and excellent (740+) | SoFi | No fees, easy online application, funding in a few days |
Read review |
| Good (670-739) | Prosper | Loans for any personal or small business expense with no prepayment fees |
Read review |
| Fair (580–669) | LendingPoint | Rate quotes online with no hard credit pull |
Read review |
| Poor (579 or lower) | NetCredit | Payment reports sent to Experian and TransUnion can improve your credit |
Read review |
How do I decide between my loan options?
The best personal loan should stand out based on its features, so keep these factors in mind when choosing your lender.
- Competitive interest rates. Even if you don’t have perfect credit, the best personal loans will still offer competitive interest rates. As an added benefit, these are usually lower than the interest rates that come with a credit card.
- APR. A loan’s annual percentage rate (APR) is the interest and fees accrued across an entire year, rather than the monthly charge. Different interest rates and loan amounts will impact the APR of your loan, so compare providers based on this number.
- Fees. Some lenders charge a monthly service fee, application fee or other large fees when you borrow. Find out what types of fees a lender plans on charging, then narrow down your selection. Some of the best personal loans don’t have any fees, so be on the lookout for lenders that limit them.
- Borrower reviews. The best personal loans tend to come from well-rated lenders. Check up on a lender’s Trustpilot and Better Business Bureau (BBB) ratings, as well as its Yelp and Reddit reviews, to see how it handles customer complaints and problems.
- Additional perks. Does the lender offer any additional perks that might stand out to you? Access to exclusive events or an easy-to-use mobile app can be the difference between lenders with other competitive features.
- Good customer service. The best personal loan lenders will have knowledgeable and responsive customer service teams to answer your questions.
Which lenders have the best interest rates for personal loans?
Traditionally, personal loans offered by banks and credit unions have the best rates. However, more and more online lenders are offering deals for borrowers with excellent credit and high incomes.
Keep in mind that just because a lender offers a low starting rate doesn’t mean you’ll be able to qualify for it — few people have strong enough finances to do so. The best way to find the best rate you can qualify for is to compare lenders. Even if it’s not the lowest rate out there, you may be able to find a lender that offers a competitive rate for your credit score, which means it’s likely still a good deal.
Find a low-interest personal loan
Who qualifies for the most competitive rates?
Lenders typically look for the following features before giving a borrower the best rates they offer.
- High credit score. Having a good or excellent credit score is one of the most important factors in getting a competitive rate. Many preapproval decisions are based on your credit score.
- Strong credit history. Your credit score should reflect your credit history to an extent, but lenders also like to see that you have a long history of paying off several different types of debt on time.
- High income. Most personal loan providers have a minimum income requirement to qualify, but you’ll generally need an income that is much higher than the cutoff to get the best rate.
- Low debt-to-income ratio (DTI). Sometimes even more important than income is the ratio of your monthly debt payments to your monthly income, as it better shows your ability to take on another payment. Typically lenders don’t want to work with anyone with a DTI higher than 43%, though a lower DTI generally helps borrowers score better rates.
Add a cosigner or collateral to qualify for a better deal
Backing is one way to make sure you get the best deal possible. You have two options: Having a cosigner back your loan or using collateral to secure your loan. These both make it less risky for the lender, which will typically offer more favorable rates and terms in return.
- Cosigners are responsible for paying back your loan if you can’t. They can strengthen your application if you don’t meet all requirements or want to qualify for a better rate or term. But if you default, it might fall on your cosigner to take over the loan – which can mean strained relationships.
- Collateral can take the form of a vehicle, piece of property or other valuable item. You’ll still need to meet all requirements on your own to get a secured loan, but you could get a better deal. Unfortunately, default often results in losing the collateral you used to back your loan.
What to watch out for when comparing the best personal loans
While personal loans are helpful in many scenarios, it’s in your best interest to avoid certain traps and pitfalls.
- Read the fine print. Scrutinize all your options carefully from the start and remember to look for ongoing fees, early repayment fees and late payment fees. Read the terms and conditions document from start to finish. A nice interest rate can be appealing, but make sure the other features of the loan won’t hurt your finances.
- Borrow less than you can afford. Just because you qualify for a large loan doesn’t mean you have to borrow the maximum amount. Use our calculator to find out how much you can comfortably afford to repay. The best loan should be affordable, even if you take a hit to your income or need to take on more debt.
- Know your credit score. The best personal loans will have strict eligibility criteria. If you don’t have good or excellent credit, your chances of approval may be slim.
- Understand the restrictions. Depending on the type of personal loan you choose, you may be restricted as to how you can use it. Many lenders forbid borrowers from using personal loan funds for school or business purposes. If the lender you’re looking at doesn’t cover your needs, look elsewhere.
- Check that the lender is licensed. There are a number of credit brokers and providers that operate illegally. If you want to safeguard your information, it’s best to do your research to avoid these disreputable lenders. They may advertise “the best” loans, but they’re often only out to steal from borrowers.
- Be wary of scams. When shopping for a loan, be wary of deals that are too good to be believed. It could be legit, but it could also be the first sign that you may be looking at a personal loan scam.
Compare more personal loans
Bottom line
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.
Frequently asked questions
Before you visit Laurel Road…
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.
Before you visit Laurel Road…
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.
Disclaimer
SoFi APRs and terms 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, years of professional experience, income and other factors. See APR examples and terms. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. 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. To check the rates and terms you 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.All rates, terms, and figures are subject to change by the lender without notice. For the most up-to-date information, visit the lender's website directly.
SoFi unemployment protection
If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
