If you're looking to borrow money - maybe to consolidate your debt, find a lower interest rate, or even to make ends meet due to an unexpected expense, a personal loan can make a lot of sense. However, there are a lot of choices when it comes to personal loans - do you have to go somewhere in person or can you do it online? What does it cost? Will I qualify?
Well, to make things a bit easier, we break down our picks for the best personal loans companies and online lenders right now.
Remember, personal loans are unsecured debt. This means, depending on your credit score, you may qualify for really good rates and terms. Most personal loans are also fixed interest rates with fixed terms - meaning your payment will stay the same throughout the course of the loan.
Before you apply, make sure you shop around for the best personal loan you can get. Spending a little bit of time now can save you thousands later!
Shop And Compare In Minutes
We recommend the Credible comparison tool to shop around for the best personal loan in minutes. Think of Credible like Kayak - you enter your information once, and they shop the best lenders for you. If you like the offer, you can apply right there on the platform. Check out Credible here, enter your information, and start applying for a personal loan today.
The College Investor's Picks For Best Personal Loans In 2021
As you start considering a personal loan, here are our picks for the best personal loan lenders in 2021. If you want a simple comparison, check out Credible below - they are like the kayak for loans and you can easily compare a lot of lenders in 2 minutes.
Note: The loan offers that appear on this site are from companies from which The College Investor receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The College Investor does not include all loan companies or all loan offers available in the marketplace.
Best Personal Loan Comparison Tool: Credible
Best Personal Loans Overall: LendingClub, Upgrade, LightStream
Best Personal Loans For Excellent Credit: Sofi, Earnest
Best Personal Loans For Average Credit: Avant, Upstart
Best Personal Loans For Low Credit: Lending Point
Best Personal Loans For No Credit/Visa Holders: Stilt
If you're looking for another type of loan, these might help:
Best Personal Loan Companies Overview
There are a lot of different personal loan companies that all offer different rates, terms, fees, and more. We do our best to provide an overview of all the different offerings, how they compare, and key facts you need to know.
Remember, we recommend using Credible to quickly compare your personal loan options. With connections to the top lenders, Credible seamlessly allows you to shop and compare, then apply online, for the best personal loan for your situation from multiple companies. Check out Credible here.
Here's our list of all the major personal loan lenders (in alphabetical order):
Avant
Avant is one of our top personal loan picks because it does a great job helping people with a credit score between 600 and 700. They have great interest rates, especially given that they don't require top of the line credit scores.
Avant looks beyond your credit score at your educational and professional background to get the lowest interest rate possible.
You can borrow from Avant for debt consolidation, home improvement, and unexpected emergencies.
Avant is on the Credible platform so you can easily see how they compare. Check out our full Avant Personal Loans Review here.
- Loan amounts: $2,000 to $35,000
- Loan terms: 24-60 months
- Interest rates: 9.95% to 35.99%
- Minimum FICO score: 580
- Minimum annual income: N/A
- Credit check: Soft pull for rate estimates
- Fees: No application or prepayment fees, up to 4.75% administration fee
- Online Application and Approval: Yes
- Funding Time: As early as next business day
Citibank
Citibank is one of the few major banks on this list. They offer personal loans up to $30,000, and since they are a major bank, you can count on their rates to be good.
However, because they are a major bank, they do have more stringent underwriting criteria than other lenders on this list.
You can borrow from Citibank for debt consolidation, home improvement, and unexpected emergencies.
Check out our full Citibank Personal Loans review here.
- Loan amounts: $2,000 to $50,000 (but only loans up to $30,000 can be done online)
- Loan terms: 12-60 months
- Interest rates: 7.99% to 17.99%
- Minimum FICO score: Good to Excellent Credit Required
- Minimum annual income: $10,500
- Credit check: Soft pull for rate estimates
- Fees: No origination or prepayment fees
- Online Application and Approval: Yes
- Funding Time: A check mailed within 5 business days
Citizens Bank
Citizens Bank is another major bank that makes this list. The have great rates and terms, but they have the highest minimum credit score requirement of any lender for personal loans.
They don't charge any fees for personal loans, which is a big win. They also offer one of the longest repayment terms, at 7 years.
You can borrow from Citizens Bank for debt consolidation, home improvement, and unexpected emergencies.
- Loan amounts: $5,000 to $50,000
- Loan terms: 3-7 years
- Interest rates: 5.99% to 19.49%
- Minimum FICO score: 680
- Minimum annual income: $24,000
- Credit check: Soft pull for rate estimates
- Fees: No origination or prepayment fees
- Online Application and Approval: Yes
- Funding Time: Within 2 business days
Discover Personal Loans
Discover is a major bank that most people associate with their credit cards. However, Discover also offers a variety of loan products, including personal loans and student loans.
They don't charge any fees for personal loans, which is a big win. They also only offer fixed rate loans, which allow for easy repayment. They also allow you to have Discover pay off your other creditors for you if you're using the loan for debt consolidation
You can borrow from Discover Personal Loans for debt consolidation, home improvement, and unexpected emergencies.
- Loan amounts: $2,500 to $35,000
- Loan terms: 3-7 years
- Interest rates: 6.99% to 24.99%
- Minimum FICO score: Good to excellent
- Minimum annual income: N/A
- Credit check: Soft pull for rate estimates
- Fees: No origination or prepayment fees
- Online Application and Approval: Yes
- Funding Time: Within 1 business day
Earnest
Earnest is much more well known as one of the best student loan refinancing lenders. However, they also offer some great rates on personal loans.
Earnest is another lender that charges no fees, and they have one of the highest loan amounts we've seen. If you have excellent credit, we think they are one of the best lenders because of the low rates and higher loan amount you can get.
You can borrow from Earnest for debt consolidation, home improvement, wedding/honeymoon, security deposits, and unaccredited tuition for school (where you can't get a traditional student loan).
- Loan amounts: $5,000 to $75,000
- Loan terms: 3-5 years
- Interest rates: 6.99% to 18.24%
- Minimum FICO score: 680
- Minimum annual income: Proof of consistent income
- Credit check: Soft pull for rate estimates
- Fees: No origination or prepayment fees
- Online Application and Approval: Yes
- Funding Time: Within 1-2 business days
FreedomPlus
FreedomPlus is a fully online personal loan lender. They have one of the lowest advertised interest rates in the personal loan space, but they have some other requirements that might be difficult.
For example, they have a higher minimum loan amount than most, and a higher income requirement that most. But there are ways to lower your interest by taking simple actions.
You can borrow from FreedomPlus for debt consolidation, home improvement, wedding/honeymoon, security deposits, and unexpected expenses.
Check out our full FreedomPlus review here.
- Loan amounts: $7,500 to $40,000
- Loan terms: 2-5 years
- Interest rates: 7.99% to 29.99%
- Minimum FICO score: 620
- Minimum annual income: $34,000
- Credit check: Soft pull for rate estimates
- Fees: 1.99%-4.99% origination fees
- Online Application and Approval: Yes
- Funding Time: Within 2 business days
Lending Club
Lending Club is a peer to peer lending marketplace. What that means for you, as a borrower, is that your loan is funded by other individuals or other partner on the marketplace. This can lead to better competition and lower rates.
Since you're getting a loan from others, Lending Club doesn't have as many restrictions as other platforms. This can be great for borrowers who may not have excellent credit. It's also one of the reasons we have Lending Club as one of our best overall lenders.
You can borrow from Lending Club for debt consolidation, home improvement, wedding/honeymoon, security deposits, and unexpected expenses. Read our full Lending Club review here.
- Loan amounts: $1,000 to $40,000
- Loan terms: 3-5 years
- Interest rates: 6.95% to 35.89% **
- Minimum FICO score: 600
- Minimum annual income: N/A
- Credit check: Soft pull for rate estimates
- Fees: Origination Fees of 1-6%
- Online Application and Approval: Yes
- Funding Time: Within 1-3 business days. Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.
LightStream
LightStream is a personal loan company associated with Sun Trust Bank. SunTrust Bank also provides student loans, which aren't available through LightStream.
LightStream is an excellent lender if you have great credit - they offer a high loan amount and surprisingly low interest rates.
You can borrow from LightStream for just about anything - debt consolidation, home improvement, wedding/honeymoon, security deposits, and unexpected expenses.
Check out our full LightStream personal loan review here.
- Loan amounts: $5,000 to $100,000
- Loan terms: 2-7 years* (see below)
- Interest rates: 3.99%-19.99%* APR with AutoPay (rates as of 10/16/2020)
- Minimum FICO score: Good to Excellent Credit Profile
- Minimum annual income: N/A
- Credit check: Hard pull when applying, potential rates displayed prior to applying
- Fees: No origination fees
- Online Application and Approval: Yes
- Funding Time: Same day funding available (conditions apply)
Marcus by Goldman Sachs
Marcus is an online bank (created by Goldman Sachs) that is most well known for its high yield savings accounts. However, Marcus also has a great personal loan product.
Marcus really focuses on no fees, which is awesome. However, they do have higher requirements and lower loan amounts than other lenders.
You can borrow from Marcus for debt consolidation, home improvement, and more.
Marcus is on the Credible personal loans platform, so you an easily see how they compare. Check out our full Marcus personal loans review here.
- Loan amounts: $3,500 to $40,000
- Loan terms: 3-6 years
- Interest rates: 6.99% to 24.99%
- Minimum FICO score: Good to excellent credit
- Minimum annual income: N/A
- Credit check: Soft pull for rate estimates
- Fees: None
- Online Application and Approval: Yes
- Funding Time: 1 to 4 business days
One Main Financial
OneMain Financial is a company that focuses on borrowers with really poor or no credit. As a result, OneMain does have higher interest rates and lower loan amounts than other lenders.
Where OneMain Financial shines, though, is by offering credit to people who may need it, and who might not typically been able to afford it.
You can borrow from OneMain Financial for debt consolidation, home improvement, emergency expenses, and more. Check out our full OneMain Financial review here.
- Loan amounts: $1,500 to $20,000
- Loan terms: 2-5 years
- Interest rates: 16.05% to 35.99%
- Minimum FICO score: No credit score required
- Minimum annual income: Must show some proof of income
- Credit check: Soft pull for rate estimates
- Fees: None
- Online Application and Approval: Yes
- Funding Time: Same Day
Payoff
Payoff is an app-based personal loan that focuses on helping you payoff your credit cards and saving you money.
If you can get a better rate than your current credit cards with a loan for Payoff, then it makes sense to borrow from Payoff to eliminate your credit card debt and start making simple payments to Payoff.
You can only currently borrow from Payoff to consolidate credit card debt. Check out our full Payoff review here.
- Loan amounts: $5,000 to $35,000
- Loan terms: 2-5 years
- Interest rates: 8.00% to 25.00%
- Minimum FICO score: 640
- Minimum annual income: N/A
- Credit check: Soft pull for rate estimates
- Fees: 2-5% origination fee
- Online Application and Approval: Yes
- Funding Time: 2 business days
Peerform
Peerform is another peer-to-peer lender that can help borrowers, even with lower credit scores.
Compared to other companies that focus on lower credit borrowers, Peerform offers better rates because it leverages peer-to-peer lending. However, they don't have as many flexible terms and options compared to other lenders - all loans are fixed at 3 years.
You can borrow from Peerform to consolidate debt, pay for unexpected expenses, and more. Check out our full Peerform review here.
- Loan amounts: $1,000 to $5,000
- Loan terms: 6 months to 24 months
- Interest rates: 7.99% to 29.99%
- Minimum FICO score: N/A
- Minimum annual income: (Requires verified job offer)
- Credit check: Soft pull for rate estimates
- Fees: 0-5% origination fee
- Online Application and Approval: Yes
- Funding Time: 2 business days
Prosper
Propser is another peer-to-peer lending platform, and was one of the original peer-to-peer lenders. As such, it has a long track record of personal loan lending.
Prosper offers a range of loans, and some more variation of loan products compared to other peer-to-peer lenders, with a choice of either a 3 year or 5 year loan.
You can borrow from Prosper to consolidate debt, pay for unexpected expenses, and even get a small business loan. Check out our full Prosper personal loans review here.
- Loan amounts: $2,000 to $40,000
- Loan terms: 3 years or 5 years
- Interest rates: 7.95% to 35.99%
- Minimum FICO score: N/A
- Minimum annual income: N/A
- Credit check: Soft pull for rate estimates
- Fees: 2.41% to 5% origination fee
- Online Application and Approval: Yes
- Funding Time: 5 business days
SoFi
SoFi is most well known for it's student loan refinancing product, but SoFi also offers personal loans to well qualified borrowers.
SoFi offers a wide variety of term lengths, and charges no origination fees for their loans. They also offer a very high loan amount. SoFi also has a hardship program where you can get a deferment on your loans if you lose your job.
SoFi now only offers fixed rate personal loans.
You can borrow from SoFi to consolidate debt, pay for unexpected expenses, and more!
- Loan amounts: $5,000 to $100,000
- Loan terms: 2-7 years
- Interest rates: 5.99% APR to 19.63% APR (with AutoPay)
- Minimum FICO score: Good or excellent
- Minimum annual income: N/A
- Credit check: Soft pull for rate estimates
- Fees: No fees
- Online Application and Approval: Yes
- Funding Time: 2 business days
Stilt
Stilt is the newest personal loan lender on this list, and they focus on helping international students and visa holders get loans.
Stilt is a new product that really focuses on borrowers with no credit due to their immigration or visa status. These loans have lower limits and higher interest rates, but can be helpful if you couldn't have borrowed in other ways.
You can borrow from Stilt to pay for school (since you likely can't get a student loan), debt consolidation, and more.
- Loan amounts: $1,000 to $5,000
- Loan terms: 6 months to 24 months
- Interest rates: 7.99% to 29.99%
- Minimum FICO score: N/A
- Minimum annual income: Proof of income or verified job offer
- Credit check: Soft pull for rate estimates
- Fees: 1-5% origination fees
- Online Application and Approval: Yes
- Funding Time: 2 business days
Upgrade
Upgrade is a newer online lender that offers great rates and terms across a wide variety of borrowers.
Upgrade was started from a couple guys from Lending Club, and they've brought a similar business model to their company. Great rates, simple terms, and open to as many borrowers as possible.
You can borrow from Upgrade to consolidate credit card debt, pay for unexpected expenses, and more. Read our full Upgrade review here.
- Loan amounts: $1,000 to $35,000
- Loan terms: 3 years or 5 years
- Interest rates: 6.98%-35.89% APR
- Minimum FICO score: 600
- Minimum annual income: Requires employment
- Credit check: Soft pull for rate estimates
- Fees: 1-6% origination fees
- Online Application and Approval: Yes
- Funding Time: 2 business days
Upstart
Upstart is one of the easiest personal loan and online lenders to qualify for.
Upstart has a very flexible lending program that allows borrowers with low credit scores to potentially qualify. Plus, Upstart uses alternative methods (beyond the credit score) to see if borrowers qualify.
You can borrow from Upstart to consolidate credit card debt, pay for unexpected expenses, and more. Read our full Upstart review here.
- Loan amounts: $1,000 to $50,000
- Loan terms: 3 years or 5 years
- Interest rates: 8.36% to 29.99%
- Minimum FICO score: 620
- Minimum annual income: $12,000
- Credit check: Soft pull for rate estimates
- Fees: 1-8% origination fees
- Online Application and Approval: Yes
- Funding Time: 1 business day
Wells Fargo Personal Loans
Wells Fargo is one of the largest banks on this list, but they have a good personal loan program that allows you to borrow to meet you needs.
Given that Wells Fargo is a bank, they aren't as flexible with requirements, but they do offer a variety of loan terms that could meet your needs.
You can borrow from Wells Fargo to consolidate credit card debt, pay for unexpected expenses, and more.
- Loan amounts: $3,000 to $100,000
- Loan terms: 1-5 years
- Interest rates: 7.24% to 24.24%
- Minimum FICO score: Good to excellent
- Minimum annual income: N/A
- Credit check: Soft pull for rate estimates
- Fees: No origination fees
- Online Application and Approval: Yes
- Funding Time: 1 business day
When Does A Personal Loan Make Sense?
Remember, a personal loan is an unsecured loan. This means that you don't have to put up any collateral to get the loan (like a car or house). Since they don't require collateral, the loan is based on the lender's estimate about your ability to repay.
They figure this out by looking at your credit history, income, and more.
A personal loan can make a lot of sense in a few situations:
Debt Consolidation: If you have multiple credit cards or other loans, and you're looking for a way to streamline your payments and potentially save money, a personal loan can make sense. For example, if you have credit cards with interest rates over 15%, and you can get a personal loan for under 10% - you'll save 5% in interest! That's great savings.
Paying For Education: You can only get a student loan if the school you're attending is accredited. However, if you need some type of specialty education or training for you career field, and it can boost your income, getting a personal loan to help pay for it might make sense.
Funding Unexpected Expenses: Even the most well prepared people encounter unexpected expenses every now and then. If you just need a quick boost of money to pay for something (say car repairs or home repairs), getting a personal loan and paying it off can make a lot of financial sense. There interest rates on a personal loan may be lower than credit cards, especially if you need time (i.e. years) to repay the debt.
Something to Consider: If you have a personal loan or other debts, you might want to consider credit life insurance. This is insurance that will help your family eliminate your debts if something were to happen to you. That way you can avoid being a burden after you're gone.
What To Look For To Find The Best Personal Loan
When shopping for a personal loan, you need to make sure you're getting the best loan you can qualify for, that makes sense for your situation.
That's one of the reasons why we like Credible. Credible allows you to shop around for multiple loans in minutes, by filling out just one simple application.
When shopping though, here's what to look for:
Interest Rate/APR: The main starting point should be your interest rate. This is what you're going to pay to borrow, and the higher the number, the more you'll pay. The better your own credit score and history, the lower interest rate you'll qualify for. As such, look for the lowest interest rate you can get - it's one of the biggest factors in cost.
Fees: Fees are also important to look at - specifically origination fees. These are fees to just get the loan, and it's basically a sunk cost to borrow. Some of the best lenders on this list charge $0 in origination fees, so that can save you money when getting a personal loan.
Loan Limits: It's important to get a loan that works for you - and loan limits matter. If you need $10,000, don't apply for a $5,000 loan - you're just going to struggle and have to get another loan. Borrow what you need and be mindful of the limits.
Repayment Terms: Always look at the repayment terms - specifically the length of time you have to pay it back. The longer the repayment term, the lower your monthly payments will be. Make sure you find a payment amount that you can afford each month, so that you can eventually pay off your loan.
Funding Time: Some loans can fund same day or next day, while others take a few days. Make sure the lender you are working with can get you your money when you need it.
Benefits: Finally, consider any benefits the company offers to help with repayment. For example, do you get a discount on interest rate if you sign up for auto-payment? Or, even better, do they have any benefits for you if you lose your job and can't make payments? These are minor compared to the other things on this list, but they can still be helpful!
Personal Loans vs. Credit Cards
Another constant debate is when it makes sense to use a personal loan, versus using a credit card with 0% APR. The real thing is, it all comes down to timing and saving money.
A 0% APR credit card is fantastic, if you can pay off the entire balance in full before the interest rate rises back to normal. For example, if you get a credit card with a 13 month 0% bonus APR, make sure you pay off the full amount in that 13 month period of time.
If you can't, the interest rate will likely shoot up into the 13% or higher range, and there may be fees as well.
Check out the best balance transfer cards here. You might be surprised at the deals.
If you don't think you can pay off the credit card while in the 0% period, then a personal loan will usually make the most sense. The reason is simple: your APR/interest rate on the loan will usually be much less than the credit card.
So, while your credit card might jump to 13% APR, your personal loan may be at 8% APR. So, even if you paid that for an entire year, you'll be ahead of the credit card.
Final Thoughts
Most people are not fond of getting personal loans. However, they can serve a valid purpose if used correctly, and if you need one, the best thing you can do is find the best personal loan.
Hopefully this list and these tools help you understand your personal loan options, and allow you to shop around for the best personal loan rates and terms.
Remember, if you just want to keep things simple, check out Credible for personal loans. They will do all the legwork for you in shopping around multiple lenders in minutes.
Disclosures
* Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
Payment example: Monthly payments for a $10,000 loan at 5.95% APR with a term of 3 years would result in 36 monthly payments of $303.99.
Truist Bank is an Equal Housing Lender. © 2020 Truist Financial Corporation. SunTrust, Truist, LightStream, the LightStream logo, and the SunTrust logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
** All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 6.95% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. *The origination fee ranges from 1% to 6%; the average origination fee is 5.2% (as of 12/5/18 YTD).* There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
