Best Personal Loans in March 2025

The key to finding the best personal loan is to compare personalized loan quotes from multiple lenders. This way, you can see which lenders are likely to give you the loan you want at the lowest rates. It takes less than five minutes to prequalify for a personal loan, and if you use a personal loans marketplace (like Credible), you could compare custom rate quotes and terms across several lenders at once. 

That said, some lenders stand head and shoulders above the rest. If you can prequalify for a loan with LightStream, we suggest you consider it. LightStream has industry-low rates, no fees, high loan amounts, and allows a wide range of loan purposes. But you’ll need good credit to qualify. 

Best personal loan lenders

Read more about rates and terms

PenFed: Best credit union for personal loans

PenFed is a credit union that offers personal loans to applicants with good credit. Though you'll need to become a member to receive a loan, membership is open to everyone. PenFed shines with no origination fees, small available loan amounts, and low interest rates. 

If you don't have a FICO score above 700, you may not qualify on your own, but can apply with a cosigner with good credit — which is not something most lenders offer.

PenFed doesn't have a minimum income amount, and offers live chat and an entirely online loan application process.

Methodology

Credible evaluated 31 lenders across 899 data points to find the best personal loans. Our team of experts gathered lender information from each lender's website, customer service department, directly from our partners, and via email support. We further evaluated lenders based on proprietary Credible personal loans data over the past 12 months. We considered each lender’s approval rates, average interest rates, average FICO scores, average loan amounts, and approved loan purposes. 

We chose the best lenders based on the following weighted categories:

• Rates and fees: 18%
• Loan terms: 18%
• Customer experience: 17%
• Eligibility: 14%
• Customer satisfaction: 10%
• Efficiency: 10%
• Options for poor credit and no credit: 9%
• Discounts: 4%

Each data point was verified by a senior editor to make sure it was accurate and up to date. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

Compare personal loan rates in March 2025

When will interest rates go down?

Though we generally saw rates drop in November (after the Federal Reserve cut rates a second time in 2024), they've not fallen much since. Whether rates go down this year depends on overall market and economic conditions.

Interest rates by credit score over the past year

Market and economic conditions

One of the biggest drivers of personal loan interest rates and rates on other loans, including mortgages and credit cards, is the federal funds rate. When the Fed cuts rates, it reduces the federal funds rate, which in turn can reduce personal loan rates and rates on other loans. The Fed left rates unchanged at its last meeting in January. 

Lenders also set rates based on market conditions and loan demand. If lenders feel that consumers as a whole are less likely to pay their loans or more likely to miss payments, they could tighten underwriting requirements — by increasing their minimum credit score requirement, for example, or charging higher rates. When demand is high, it could have a similar effect. 

To see interest rates drop, we’d ideally see the Fed reduce interest rates further, demand for loans weaken, and the quality of consumer loans improve. 

Tips on comparing personal loans

It’s helpful to begin by prequalifying so you can compare customized personal loan quotes from multiple lenders. When looking at loan quotes, consider:

1. APRs: A loan’s APR expresses the annual cost of borrowing money and is often the most important element to consider when comparing personal loans. To get an idea of the APR you might be approved for, it helps to prequalify first. 
2. Repayment terms and monthly payments: Consider the length of repayment terms and how each affects your monthly payments and overall cost. Look at potential monthly payment amounts across different quotes to ensure you can afford the loan.
3. Total interest costs: Keep in mind that a lower monthly payment doesn’t necessarily mean a more affordable loan overall. The longer your repayment term, the higher your total interest costs are likely to be. Use a personal loan calculator to see how repayment terms affect total interest. 
4. Fees: Check whether the lender is likely to charge an origination fee. A loan with a low APR could still carry an origination fee, which would be deducted upfront and reduce the amount of money you receive. Compare lenders based on other fees charged as well, such as late fees.
5. Loan amounts: Some lenders may not prequalify you for the full amount you’d like to borrow.  
6. Eligibility factors: While prequalification is a good gauge of whether you’re likely to qualify for a loan, it’s still smart to consider specific eligibility criteria between lenders you’re considering. Do you meet its minimum income and credit score requirements? Do you have a debt-to-income ratio (DTI) low enough to qualify? Some lenders answer these questions in their FAQ.
7. Reviews: Compare user reviews on sites like Trustpilot and see whether the lender is accredited by the Better Business Bureau. 
8. Lender discounts: Some lenders offer rate discounts for autopay; some also offer discounts for sending loan funds to creditors if you’re getting a debt consolidation loan.

Learn More: How To Compare Personal Loans

What is a personal loan and how do they work?

Personal loans are a type of installment loan, which means you pay back the amount you borrow in installments over a specified period of time. You receive the loan amount as a cash sum upfront to use for your intended loan purpose. Repayment terms often range between two and seven years, depending on the lender. They may be longer for home improvement loans and other higher-dollar loan purposes like buying an RV or boat. 

Loan amounts typically range between $1,000 and $50,000, depending on the lender. A few lenders (SoFi and LightStream) offer $100,000 loans, and BHG Financial offers $200,000 loans. But you’ll need very good credit to qualify.

Like other loans, you’re charged an interest rate. But lenders typically advertise their APR range, which indicates the lowest rate they offer to borrowers with excellent credit and the higher rate they offer to borrowers who are less qualified.

Learn More: How Do Personal Loans Work?

Personal loan example

To better illustrate how a personal loan works, let’s look at an example.

Say you have $10,000 in credit card debt at a 30% APR. You’re struggling to keep up with the $350 minimum monthly payment and are concerned about your credit score. You know that you can use a personal loan to pay off credit cards, potentially at a lower rate, so you apply for a $10,000 debt consolidation loan. 

(You’ve already used a credit card calculator to determine how long it would take you to pay off your cards by paying just the minimum — 4 years and 3 months — and the total interest you’d pay — $7,757.)

You’re approved for a $10,000 personal loan with a five-year repayment term at a 22% APR (including a 0.25% rate reduction by signing up for autopay). Your monthly payment would be $276 per month with a total interest cost of $6,571, saving almost $1,200 in interest and reducing your monthly payment by $74. 

What are personal loans used for?

Specific allowed and restricted uses vary by lender. For example, some lenders may only offer loans for debt consolidation or credit card refinancing. Always confirm with the lender directly.

Average personal loan interest rates by lender

Average rates across lenders ranged between 10.81% APR and 29.30% APR, depending on the lender, over the last 12 months.

Average personal loan rates by credit score

Pros and cons of personal loans

Pros

• Quick, easy application: You can apply for a personal loan online in just a few minutes.
• Lower rates than credit cards: The average credit card interest rate is 21.47%, according to the Federal Reserve. That's over six points higher than the average rate on a 3-year personal loan at 14.00%, according to Credible personal loans data.
• Fast funding: Most personal loan lenders transfer the funds directly to your bank account within a few days.
• Predictable payments: You repay a personal loan in fixed monthly installments that are easier to plan for than variable-rate loans.
• Typically unsecured: Most personal loans don't require you to offer collateral, like your home or vehicle. That means you won't risk losing those assets if you miss payments.
• Flexible use of funds: You can use a personal loan for a wide variety of expenses.

Cons

• Higher rates than secured loans: Personal loans can come with higher average rates than secured loans, such as home equity loans and HELOCs
• May be tough to qualify for: While some lenders have relatively lenient credit and income requirements, most require at least fair credit (a FICO score between 580 and 669). Some other loan types have fewer requirements, including 401(k) loans and payday alternative loans.
• Possible damage to your credit: Applying for a personal loan typically requires a hard inquiry, which causes a temporary dip in your credit score. Missed or late payments on a personal loan can negatively impact your credit as well.

Related: Should I Get a Personal Loan?

How to qualify for a personal loan

Lenders evaluate several factors to determine whether to loan you money and at what rate to do so. Key factors include your credit score, income, and debt-to-income (DTI) ratio.

• Credit score: A high credit score typically increases your chances of approval and may help you get a low interest rate.
• Income: Lenders also want to see proof of a stable and sufficient income to ensure you can comfortably make monthly payments.
• DTI: Your debt-to-income ratio, which compares your monthly debt payments to your gross monthly income, is another core factor. A lower DTI indicates that you have more room in your budget to handle unforeseen expenses and are less likely to struggle with repayment.

Most lenders have specific eligibility criteria, including minimum income and credit score requirements. Knowing these beforehand can help you eliminate lenders you're less likely to qualify with and focus on those more likely to approve your application.

If you’re struggling to qualify for a low rate or the amount you need, consider applying with a co-applicant to get a joint personal loan, or try finding lenders that allow cosigners.

Related: What Are the Requirements for a Personal Loan?

How to get a personal loan with bad credit

Getting a personal loan with a bad credit score (a FICO score below 580) can be tricky, but it's not necessarily impossible. Try these tips if you're having trouble qualifying:

• Look for bad-credit lenders: Some lenders specialize in personal loans for bad-credit borrowers. You can also get an installment loan with no hard credit check through lenders like OppLoans, but these loans typically come with higher APRs.
• Apply for a lower amount: If you can't qualify for the amount you need due to insufficient income or a high DTI, try asking for less.
• Consider secured options: You may have an easier time qualifying for a personal loan that's secured by an asset, like your home or vehicle. One Main Financial, Best Egg, and Upgrade all offer secured loans.
• Apply with a cosigner or joint applicant: A cosigner is someone with good credit who agrees to be responsible for the loan if you fail to repay. A co-applicant does the same, but also has access to the funds. Either can help you qualify for a personal loan if you have bad credit.

Learn More: How to Get a Bad Credit Loan

Steps for applying for a personal loan

1. Research lenders.
2. Prequalify with several lenders. (Lenders use a soft credit pull during prequalification, which won’t hurt your credit score.)
3. Compare loan quotes, based on APRs, total interest costs, monthly payments, loan amounts, origination fees, and repayment terms.
4. Narrow down to a few top picks.
5. Confirm eligibility criteria (you may need to contact the lender directly to do this).
6. Apply, and authorize a hard credit inquiry (in most cases) — this could lower your score by up to 10 points for one year. 
7. Supply requested documentation, such as paystubs, bank statements, and/or tax returns.
8. If approved, review the loan offer before accepting.
9. If the loan amount, origination fee, payment date, monthly payment amount, and APR are all agreeable, sign the loan documents.
10. Loan funds could be disbursed as soon as the same day you apply, but typically take between 1 and 3 business days.

Related: How To Apply for a Personal Loan

Alternatives to personal loans

If a personal loan doesn’t fit your needs, consider these alternatives.