The best personal loan is one that gives you the amount of money you need at an affordable rate. As you review the lenders below, check their annual percentage rates. APRs are the most straightforward way to compare costs among lenders.
APRs on personal loans generally range from 7% to 36%, although they vary among lenders. Borrowers with good credit who pre-qualified with NerdWallet over the last 30 days received an average rate of 19.38%.
Details about our picks for the best personal loans
We want to help you find the best personal loan, so take a closer look at our picks and what makes them stand out. You should also be aware of potential downsides, so we’ve noted those, too.
Upgrade, the best personal loan overall
Why we like it: There’s a lot to like about Upgrade’s personal loans. For one, it offers rate discounts for setting up autopay, signing up for multiple Upgrade products and — for debt consolidation loans — letting it directly pay your lenders. And that’s on top of already-competitive rates.
Upgrade also offers many ways to borrow, by offering a variety of repayment terms and loan types. Besides unsecured loans, you can apply for secured and co-signed loans.
The downside: Upgrade charges an origination fee of 1.85% to 8.99%.
LendingClub, best for debt consolidation loans
Why we like it: If you’re aiming to pay off multiple debts, LendingClub can simplify the process by sending the loan proceeds to up to 12 creditors. It also offers a rate discount if you opt into this feature.
LendingClub also stands out from most lenders because it allows borrowers to choose your payment date before signing the loan agreement and change that date during repayment. That’s a convenient perk if you take a new job with a different pay schedule.
The downside: LendingClub may charge an origination fee, up to 8%.
🤓 Nerdy Tip
You’ll see that many lenders charge origination fees, which can be up to 10% of the loan amount and are typically taken from the loan proceeds. Say you get a $20,000 loan with a 5% origination fee. That 5% — or $1,000 — would be deducted from your loan and leave you with $19,000. And while you receive the lesser amount, you must still repay the higher amount of $20,000.
Discover, for borrowers with good or excellent credit
Why we like it: If your credit is strong enough that you qualify, you’ll benefit from no origination fees, late fees or any other kind of fees. That’s pretty rare among lenders.
You’ll likely also benefit from same-day approval decisions, according to Discover. Then the lender sends funds on the same day you accept the loan if you’re depositing into a Discover checking or savings account. If not, funds are sent as early as the next business day.
The downside: Discover’s minimum credit score is high, at 660. And the lender says its average borrower has a 750 credit score.
Universal Credit, best for borrowers with bad to fair credit
Why we like it: Universal Credit has the lowest minimum credit score (560) on this list among the lenders that provide that information.
We also appreciate its fast funding: The lender says it approves most applications within about five minutes and typically sends funds within one business day.
Universal Credit is also a solid choice if you’re consolidating debts. The lender will send loan funds directly to creditors and possibly offer you a rate discount if you choose this route.
The downside: Universal Credit has the highest starting APR on this list and an origination fee of 5.25% to 9.99%.
LightStream, best for home improvement loans
Why we like it: LightStream offers repayment plans of up to 20 years for loans greater than $25,000 that are used for home improvement projects. It’s also a solid choice for other large expenses — its loan amounts range from $5,000 to $100,000, which is higher than most other lenders.
LightStream also shines for charging no fees, offering multiple rate discounts and allowing co-borrowers.
The downside: LightStream doesn’t allow you to pre-qualify with a soft credit check on its website, which is unusual. However, you may be able to check your rates with LightStream through partner sites like NerdWallet.
Best Egg, best for secured personal loans
Why we like it: In addition to offering unsecured loans, Best Egg allows you to secure a loan with collateral. Specifically, the lender accepts permanent home fixtures, like built-in cabinets or vanities. Securing your loan may help your chances of qualifying and getting better terms. The downside is that if you don’t repay, the lender may take your collateral.
Beyond offering a secured loan option, Best Egg says it makes approval decisions instantly and typically funds loans the next business day.
The downside: Best Egg charges an origination fee of 0.99% to 9.99%.
Upstart, best for borrowers with short credit histories
Why we like it: Upstart is unique in that it says it doesn’t have a minimum requirement for credit score or credit history. While many lenders base approval decisions primarily on credit and income, Upstart also factors in details like college education and work history. So Upstart could be a strong option if you feel confident you can repay the loan but can’t necessarily prove it with traditional data.
Upstart also offers a secured loan option, allowing you to pledge your vehicle as collateral, which can also help approval chances.
The downside: Upstart has a maximum origination fee of 12%, which is higher than that of most other lenders.
SoFi, best for large loan amounts
Why we like it: SoFi is one of only a few lenders that provides loans up to $100,000 for those who qualify. You can also get a joint loan if you and the co-borrower live together. Sharing responsibility could be one way to manage that large loan.
The lender also offers multiple rate discounts, including a reduction of 0.25 percentage points for setting up autopay.
The downside: SoFi’s smallest loans start at $5,000, so it’s not the lender for you if you only need to borrow a little bit.
First Tech, best for range of loan amounts and terms for members
Why we like it: First Tech offers a wide range of loan amounts ($500 to $50,000) and term lengths (six months to seven years). There’s also a secured loan option, allowing you to use an investment account, savings account or certificate of deposit as collateral. If you’re looking to consolidate debt, First tech will directly pay the lenders with your funds.
The downside: First Tech is a credit union for the employees of about 1,700 tech companies, as well as their household and family members. Only its members can benefit from the many standout features of First Tech’s personal loans.
Expert take: How to find the best lender for you
“Finding the best lender takes some legwork, but it mostly comes down to what you can qualify for and the rate. Start by checking lenders’ credit score requirements and focusing on those with minimums below your score. Also make sure their loan amounts and terms fit your needs. And most important: Pre-qualify with multiple lenders and compare the rates and terms you’re offered. Then pick the best offer, which usually means the lowest rate.”
How to choose the best personal loan for you
Personal loan amounts, terms and rate ranges can be similar between lenders. So how do you know which is best? Here are the factors to consider when comparing personal loans.
Aim for a low annual percentage rate
The loan’s APR includes interest and fees, making it the best way to compare total cost among loan options. The lower the APR, the less expensive the loan.
Unlike variable-rate products such as credit cards, personal loans have fixed rates, so the APR and monthly payment amount won’t change over the life of the loan.
💡Tip: The rate you receive depends on multiple factors, so even borrowers with perfect credit may not qualify for a lender’s lowest rate. Here are the average APRs by credit band that borrowers who pre-qualified with NerdWallet received over the last 30 days:
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet in the last 30 days. Rates are estimates only and not specific to any lender.
Determine how much you need to borrow
Most personal loan lenders offer small to midsize loans of $2,000 to $50,000, although a few offer amounts up to $100,000. Consider how much you need to borrow, then look for lenders that match what you need.
💡Tip: Avoid the temptation to request more than you need. You have a better chance of qualifying for an amount the lender thinks you can afford.
Consider different repayment terms
Personal loans tend to come with term lengths of two to seven years, though some lenders may offer longer terms for larger loan amounts. Think about how long you want to be repaying your loan.
💡Tip: A shorter-term loan means you’ll pay less interest overall, while a longer repayment term gives you lower monthly payments.
Ask yourself how quickly you need the funds
The time it takes to get a personal loan varies by lender, but some online lenders can approve your application in minutes and provide same-day funding or fund a loan on the next business day. Other lenders, like banks or credit unions, may take a few days.
💡Tip: You can speed up the process by promptly submitting any required documents and responding to lenders’ questions.
Factor in fees
Some personal loans have origination fees to cover the cost of processing the loan. This fee is included in the APR and often deducted from the loan funds.
Lenders may also charge a fee for late payments or a non-sufficient funds fee if you don’t have enough money in your bank account to cover the total amount of a payment. Setting up autopay and keeping an eye on your checking account can help you avoid these fees.
💡Tip: It’s best to avoid origination fees, but a loan with an origination fee may be less expensive than one without the fee if the APR is lower.
» MORE: How to get a personal loan in 7 steps
Personal loan calculator
Use our calculator to see how different loan amounts, rates and terms affect your monthly payment.
Estimated monthly payment
$309.92
Total interest over 3 years
$1,157.12
Total loan payment
$11,157.12
PRINCIPAL AMOUNT — $10,000TOTAL INTEREST PAID — $1,157.12
» MORE: Get details on how our loan payment calculator works
How to qualify for a personal loan
Personal loans are typically unsecured loans, meaning they don’t require collateral to back the loan. Instead, lenders look at the information on your loan application to determine eligibility. Here’s what lenders told NerdWallet they like to see.
Know your credit
Your credit score and credit history are two of the most important factors for getting approved for a personal loan. Though lenders are most likely to approve borrowers with good credit or higher (a score in the mid 600s and up), borrowers with fair or bad credit can still qualify. They just may receive a high interest rate.
Lenders also consider the length of your credit history and prefer to see at least two years across one to two accounts.
Determine your debt-to-income ratio
Debt-to-income ratio, or DTI, is another important consideration for loan approval. This measures your monthly debt payments against your gross monthly income.
If you have too much debt compared to your income, a lender may not approve you. Most lenders prefer applicants with a DTI below 50% (excluding mortgage).
» MORE: Try our debt-to-income calculator
Consider the loan details
Information about the loan you’re applying for can also influence your loan decision. For example, a larger loan with a long term is often harder to get approved for, since it means more risk for the lender. Choosing the minimum loan amount you need to cover the expense may be a better option.
You may also choose to apply for a co-signed, joint or secured loan, which can help boost your application by adding someone with better credit to the loan or guaranteeing the loan with collateral, like your car.
Pre-qualify with multiple lenders
We always recommend pre-qualifying for a personal loan to check your chances of approval and what interest rate you may get. This helps you compare loan offers between different lenders, too, and has no impact on your credit score.
You can pre-qualify through the lenders’ websites or through NerdWallet, where you can see offers from several lenders within minutes.
» NEXT: Pre-qualify through NerdWallet