Personal loans can be an excellent source of funding if you need to make an important purchase or cover an emergency expense, but personal loans can differ widely in how expensive they are and how well they fit your needs. You can get a personal loan from online lenders, banks, and credit unions.
Where to get a personal loan
A personal loan is a type of installment loan that can be used for a variety of purposes. These loans generally come with a set repayment amount and schedule and a fixed interest rate. Here’s where you can get a personal loan:
- Online lenders: Online lenders serve as a kind of catch-all term for nontraditional loan providers. These marketplaces use online platforms to provide loans for borrowers from either companies or investors. The process is typically 100% digital.
- Banks: Banks, whether giant global banks or small community banks, can be reputable sources for personal loans, and can offer an in-person experience if you prefer.
- Credit unions: Credit unions fulfill many of the same functions of a bank, but are nonprofit institutions that serve a specific population, such as a community, an employer, or a labor union. You typically need to be a member to receive their benefits, however.
Advertiser DisclosureOverview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Repayment terms
2 - 12 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full reviewOverview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
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Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Eligibility
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
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Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
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LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
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SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Read full reviewOverview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
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Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Repayment terms
1 to 5 years (2 to 5 years through Credible)
Read full reviewOverview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Time to get funds
Same day available, typically 1-3 days
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
Read full reviewOverview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full reviewOverview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Eligibility
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Read full reviewOverview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Fees
Origination fees, late fees
Eligibility
Available in all states except Maryland and Illinois
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Read full reviewFees
Origination Fee, $15 Late Fee, $25 NSF Fee
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
Read full reviewOverview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Read full reviewOnline lenders
Online lenders can be digital-only arms of existing banks or credit unions, peer-to-peer lenders (where investors lend directly to borrowers), or other forms of nontraditional financial institutions. These lenders offer all the unique upsides and downsides of a digital process, from fast and easy applications to a lack of options for customer service.
Pros:
- Easy online applications: Online lenders often have extremely streamlined and simplified online applications, from prequalifying to see your loan options, to easy and fast document submissions.
- Fast experience: These smooth online processes can often get you a same-day decision on your loan — and sometimes even a same-day disbursement of your money. On average, however, you will typically receive your funds between 2 to 14 days.
Cons:
- Higher APRs for low-credit borrowers: You’re more likely to see a wide range of APRs with online lenders than with banks and credit unions. While borrowers with low credit scores can sometimes still qualify for loans from these lenders, they will also often be offered loans with quite high APRs.
- Can be difficult to get personal support: While online lenders often have multiple ways to contact customer support, (phone lines, chat, and/or email) there’s no in-person option. Finding help outside of normal business hours may be limited.
*APRs as of October 3, 2023. Upstart, SoFi, and LightStream are all Credible partners.
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Banks
Banks are a great source for personal loans, and many offer the perks of online lenders (easy online applications and fast decisions and disbursement) with the added benefits of in-person service if you have questions or want hands-on help. Personal loans from banks come with lower interest rates on average than payday loans or credit cards, making them a great option for large or emergency expenses.
Pros:
- Can often choose between online and in-person application and service: If you value an in-person experience and want an easy online process, you can likely find a bank in your area that can offer either option or both.
- Can offer better rates if you have a relationship: Many banks will offer discounted interest rates for customers with existing relationships or those who are willing to pay from a linked account with the same bank.
Cons:
- May have higher APRs on average: While personal loans from banks tend to have lower maximum APRs than many other borrowing options, rates can still be slightly higher on average than personal loans from credit unions, which are nonprofit member organizations. Online lenders, who save money by not having physical branches and staff, may also offer lower starting APRs to borrowers with excellent credit.
- Often have more stringent borrowing standards: Since banks are a for-profit enterprise, many look for borrowers with higher credit scores and generally have higher qualification standards than credit unions or online lenders might.
*APRs as of October 3, 2023
Credit unions
Credit unions are financial institutions that cater to specific memberships. Credit unions, instead of trying to turn a profit for themselves, feed any profits back into the membership by lowering fees, raising savings rates, and lowering loan rates.
Pros:
- Lower rates: Personal loans from credit unions can have slightly lower rates than banks, due to the nonprofit nature of the organization. As of June 2023, the national average rate for a personal loan from a credit union was 10.32%, compared to 11.04% for a national bank, according to the National Credit Union Administration.
- In-person service: While some credit unions will have fast and easy online applications, many are smaller and will need you to complete your loan application in person. (This can be a pro for some, and a con for others.)
Cons:
- Have to be a member: Credit unions don’t have customers, they have members. You will need to find a credit union where you qualify for membership. To join, you will typically pay a small fee of between $5 to $25.
- Can have slower processing times: Again, this will vary widely depending on your credit union’s size and other factors, but it may take longer for a credit union to process your loan application, make a decision, and disburse your money than it would for a large national bank or online lender.
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*APRs as of October 3, 2023
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How to apply for a personal loan
Personal loan applications can vary from lender to lender, but here’s what you can expect:
- Look at your credit report: Your credit score has a major impact on the loan amount you qualify for and the APR you’re offered. You can visit AnnualCreditReport.com to get a free credit report and make sure there are no errors bringing your score down. If you have a low credit score, you can boost your score before applying for a personal loan.
- Prequalify if possible: Many lenders have an easy online prequalification process that allows you to see the terms of the loans available to you based on your financial situation. Your lender will typically perform a soft credit check, which doesn’t affect your score. So it can be a good idea to prequalify and know the best offers available before you formally apply and trigger a hard inquiry. One thing to note, your final rate may differ from what you prequalified for.
- Compare terms: Once you have your loan terms from multiple lenders, take a look at the APRs, loan amounts, and repayment terms to see which is right for you. The APR will directly affect how much it costs you to borrow, but also remember that the longer your repayment term, the more interest you will pay overall. It’s usually best to choose the lowest rate and the shortest repayment term with a monthly payment you know you can afford.
- Submit your application: Once you’ve chosen the best option for you, it’s time to complete the application. If you only prequalified for the loan, you’ll need to submit documentation for things like your identity, your employment, and your income. Make sure you read and understand the fine print before you sign and finalize the loan. Your lender will perform a hard inquiry at this time, which can lower your credit score temporarily.
- Prepare for repayment: Once you receive your money, start planning for repayment. Put the due dates on your calendar and consider setting up automatic payments.
Learn More: How Long Does It Take To Get a Personal Loan?
FAQ
Where can I get a personal loan for bad credit?
Many lenders will offer personal loans to borrowers with low credit scores, but these often come with high interest rates. Consider a payday alternative loan from a federal credit union, and compare rates to make sure you’re getting the best offer.
Where can I get a personal loan with no credit check?
Some lenders will advertise loans with no credit check, but again, these often come at a high borrowing cost. Make sure you’ve considered all your options and can afford any debt you take on.
How should I compare personal loans?
Personal loans should be compared by their overall cost to you. Factors that influence the cost include interest rates, fees, and repayment terms, or how long it will take you to repay the loan. You should also ensure any personal loan you take out is from a reputable lender.
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Meet the expert:
Hilary Collins
Hilary Collins is a finance writer and editor. She loves taking topics that could be dry and complicated and turning them into engaging stories with actionable takeaways.