A personal loan is money you borrow to cover a large, one-time expense and repay with interest in equal monthly installments. Compared to credit cards, it can be a cheaper way to finance a big project, like making a home improvement or consolidating debt.
While personal loan rates typically range from 5.99% to 35.99%, the average interest rate for a 24-month personal loan is 11.65% as of November 2025, according to the latest data from the Federal Reserve. Some lenders also charge origination fees, which can push up the APR, but if you have very good to excellent credit, you shouldn’t have to pay these.
The lenders in this list offer some of the most competitive rates and terms available today, with options for all credit types.
Finder’s lending experts review more than 120 lenders against 16 key metrics to narrow down the best personal loans:
We weigh 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 or change their terms.
The following lenders could be a good option but didn’t quite measure up to our picks for the best in the category.
Why it didn’t make the cut: Upgrade charges a 1.85% to 9.99% origination fee, which is high — especially for a lender that doesn’t work with borrowers who have bad or zero credit history. It also doesn’t offer loan amounts as large as our pick for fair credit.
This lender specializes in fast, fair-credit personal loans as an alternative to what you’d find at a bank.
Why it didn’t make the cut: This fair-credit lender charges slightly higher rates than Upstart and more heavily relies on credit scores.
While there’s a chance you won’t pay an origination fee at Prosper, this lender charges higher APRs than Upstart — from 8.99% to 35.99%. Upstart’s unique credit rating system makes qualifying for a reasonable rate easier, 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.
Why it didn’t make the cut: Unlike Discover, Happy Money charges origination fees, and it only offers credit card consolidation loans.
Happy Money (formerly Payoff) offers a niche product for credit card consolidation, but it’s more limited than our debt consolidation winner, Discover. It also charges origination fees and has shorter loan terms.
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 your choices, prequalify with your top picks to compare personalized offers — if those lenders offer prequalification.
Ideally, a personal loan should help you save money or even increase your wealth. The most common ways to use a personal loan are to consolidate debt or invest in home improvements.
Debt consolidation involves getting a loan to pay off one or more credit accounts. According to Lending Tree, the average credit card rate is 23.77%, almost 50% higher than the average personal loan rate. That means you’ll most likely save on interest and get out of debt more quickly by using a personal loan to pay down your accounts.
A personal loan’s low rates also make it great for home improvements, such as renovating a bathroom or putting on a new roof. And fixing up your house can help it increase in value and grow your equity in it.
Use the following strategies to get the lowest interest rate possible on a personal loan.
Check your credit score online to understand the number your lender will see. Most personal loans require a FICO score of 670 or higher. If your FICO score is below 670, consider improving your credit by paying your bills on time, reducing debt and correcting any inaccuracies on your credit reports.
Not all lenders rely solely on your FICO score to determine your creditworthiness. Some, like Upstart, have found that its algorithms are more accurate in predicting your likelihood of defaulting on a loan. That allows lenders to specialize in specific borrowers — 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 alternative credit scoring methods offer more ways to highlight financial strengths, like a consistent savings habit.
Lenders tend to offer lower interest rates for short-term loans. For example, SoFi provides the lowest personal loan rates on two-year loans, while rates for its seven-year loans start at about four points higher.
The National Credit Union Administration (NCUA) bars federal credit unions from charging more than 18% interest. This maximum rate was established in 1987, and since then, the NCUA board has voted 24 times to maintain that rate ceiling. By comparison, most personal loan lenders’ highest rate is 35.99%.
Your current bank might offer a relationship discount on your interest rate if you have a 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% or more rate discount if you sign up to have payments automatically debited from your account. This rate could be on top of 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 lets you see your likely rate and terms based on basic financial information. It uses a soft credit check that won’t affect your credit score. While not guaranteed, it gives you a realistic picture of what you might qualify for. If you move forward, the lender does a hard credit pull and requests documentation for final approval.
Many lenders offer rate calculators, but prequalification gives you more accurate, personalized results.
While banks are a traditional choice for borrowing money, you can get a personal loan from various lenders, including online 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 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. Still, your credit scores help predict what interest rates you may receive.
| Credit score range | Average estimated interest rate (%)* |
|---|---|
| 720+ | 15.46% |
| 680-719 | 23.27% |
| 660-679 | 27.30% |
| 640-659 | 29.19% |
| 620-639 | 30.57% |
| 580-619 | 31.96% |
| 560-579 | 33.39% |
*Source: LendingTree user data on closed personal loans for Q3 2025. Note: Personal loans with amounts below $5,000 and terms under 24 months were excluded from the analysis.
If you need your money fast, you can find lenders that fund your loan in 24 hours or less. But you may be trading a more competitive interest rate for a quicker turnaround time.
Consider the following factors that could affect how quickly your loan gets funded:
Doing your research and having your documents in order can also help move things along.
A personal loan may not be the best option in all situations — especially when rates are high and it’s challenging to qualify for a low rate.
Consider four alternatives before you apply:
Discover if Grace Loan Advance is right for you.
You need a personal loan credit score of at least 670 to get the best deal, but there are options for people with lower credit.
Need quick cash? See how BMG Money helps employees handle emergencies without a credit check.
These five lenders offer personal lines of credit with instant approval.
Get personal loans fast, but be aware: loan terms may vary from what’s advertised.
Compare other loan options or cash advance apps as alternatives to allotment loans like BMG Money.
Compare lenders that offer no-doc personal loans and loans with low minimum income requirements.
Transform Credit accepts cosigners on personal loans, but there are cheaper alternatives.
Those with good credit can apply for a personal loan in minutes with SoFi’s simple online application. Learn about similar online lenders.
Best Egg offers personal loans up to $50,000; see how they compare to other lenders.