Best Personal Loans for Good Credit in April 2025

Having good credit can make it easier to get approved for a personal loan and qualify for a low interest rate — but that doesn’t mean you should settle for a loan that’s just good enough. Shopping around for loans can help you find an ever better deal than you might expect.

We found that the best personal loans for good credit are from Upgrade, thanks to fast funding, competitive interest rates, and loan amounts up to $50,000. SoFi is another strong option, especially if your credit is not just good but very good.

Compare lenders and quotes to find the best personal loan for good credit, whether you’re planning a big purchase, making home improvements, or covering an emergency expense.

Best personal loans for good credit

Methodology

Credible evaluated 31 lenders across 899 data points to find the best personal loans for good credit. Our team of experts considered internal proprietary data, including prequalification rates by lender, credit score minimums, and approved loan purposes. We also gathered information from each lender's website, customer service department, directly from our partners, and via email support. 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 sourced and 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.

What is a good credit score?

Your credit score is a three-digit number that provides a snapshot of your creditworthiness. Lenders use it to predict how likely you are to repay personal loans and other types of credit on time. FICO is the most commonly used credit scoring model, and both FICO and VantageScore models range from 300 to 850. Here are the “good credit” ranges for both models (although VantageScore uses the term “prime”):

What does a good credit score mean? Not only do your odds of loan approval improve with a good credit score or better, but you're also more likely to qualify for lower interest rates and lower (or no) fees — which means borrowing money could cost you less than it would for someone with fair credit or bad credit.

What are good credit loans and how do they work?

A good credit loan is any loan issued to applicants with a good credit score, generally defined as a FICO score between 670 and 739. They tend to have lower rates than loans for bad credit or fair credit, fewer fees, and larger loan amounts. However, borrowers with very good or excellent credit tend to be approved for lower rates.

Where to find good credit loans

Personal loans for good credit are typically unsecured loans that are available from financial institutions such as:

• Banks
• Credit unions
• Online lenders

How to qualify for a good credit loan

Your credit score and overall credit profile play a significant role in determining whether a lender approves your loan application, as well as the rates and terms you qualify for. Typically, lenders reserve their lowest interest rates for applicants with good to excellent credit. 

When you apply, the lender looks at your credit and other factors, like income, employment history, and debt-to-income ratio (DTI). If you're approved, the lender disburses the loan funds, either to your linked bank account or directly to your creditors (in the case of a debt consolidation loan), depending on your preference.

Repayment terms

You repay the money you’ve borrowed — plus interest and upfront fees, expressed as an annual percentage rate (APR) — in monthly installments of equal size. In general, personal loans offer repayment terms between one and seven years, but you could be approved for a longer term for specific loan purposes and large loan amounts, depending on the lender. 

Pros and cons of personal loans

Personal loans can be a valuable tool to fund your financial goals. With the advantages, though, come some potential drawbacks to consider as well:

Pros

• Fixed rates: Personal loans often have fixed interest rates, which means predictable monthly payments that make budgeting easier.
• Lower interest than credit cards: The average interest rate on two-year personal loans was 12.32%, according to the Federal Reserve, compared to an average rate of 21.47% on credit cards.
• No collateral on unsecured loans: Most personal loans are unsecured, so you won't need to put up an asset like a car or home to get approved.
• Many uses: Personal loans can be used for a wide range of expenses, including debt consolidation, home improvements, emergency expenses, and more.
• Fast funding: Most personal loan lenders can send money directly to your bank account within days of your application. Some can even send money the same day you apply.

Cons

• Rates may be higher than secured loans: Since the lender has no collateral to offset its risk on an unsecured loan, most personal loans have higher rates than secured options like home equity loans and home equity lines of credit.
• Some loans have fees: Some lenders charge origination fees, which are typically deducted upfront and reduce the amount you receive. Other fees may include late fees and non-sufficient funds (NSF) fees.
• Increased debt: Taking on additional debt can increase your DTI and affect your credit score.

Average personal loan rates for good-credit borrowers

Even with a good credit score, the APR you pay depends on variables — the lender, the purpose of the loan, and the economic and regulatory trends that influence interest rates for all borrowers. 

Still, data from the Credible personal loan marketplace can give you a general idea of what good-credit borrowers could expect. Here are the average prequalified interest rates for good-credit borrowers through Credible for the month of February:

Average rates for good credit by loan purpose

Credible data from the past 12 months show the following average APRs for common loan purposes:

How to get a good credit personal loan

While having good credit is a great start, you'll need more than a solid FICO score to secure a low interest rate.

1. Research and compare lenders

Prequalification for a personal loan is the easiest way to compare multiple lenders, with no charge and no obligation. By using an online marketplace like Credible, you can get quotes from several lenders at once and compare APRs, fees, and repayment terms. Just remember two important distinctions: 

• Prequalification is an estimate, not an offer of credit. The APR, terms, and fees in a loan offer might differ from prequalified quotes. 
• Prequalification involves a soft credit inquiry that won’t affect your credit score, but applying for a loan typically requires a hard credit inquiry that could lower your credit score by up to 10 points for up to a year.

Note that some lenders have minimum credit score and income requirements, although they’re not always disclosed.

2. Pick a loan option

After comparing lenders, choose the loan option that offers the best combination of overall interest costs and affordable monthly payments. Use a personal loan calculator to see how the length of the repayment term affects the size of your monthly payment and interest costs over the life of the loan. Here’s an example using a $15,000 personal loan at 20% APR:

Shorter repayment terms mean larger monthly payments but lower total interest costs, while longer repayment terms generally mean the opposite. You’ll need to strike a balance between a monthly payment you can comfortably afford and how much interest you want to pay over the long term.

3. Complete the application

Once you've picked a lender, you'll need to fill out a full application and submit any required documentation, such as proof of identity and proof of income. If you’re applying for a secured loan, you’ll need to provide information about the asset you’re using as collateral so that the lender can appraise its value.

4. Review and sign the loan agreement

Read the loan agreement provided by the lender to ensure the APR, fees, and terms are as expected. If you have questions, don’t hesitate to contact the lender.

4. Get your funds

Once you’ve signed the loan paperwork, the lender can send the money to your bank account or to your creditors if you're getting a debt consolidation loan. The time to fund a personal loan typically takes two to three business days, though some lenders offer fast personal loans that can be funded as soon as the same or the next business day.

Learn More: How To Get a Personal Loan

How to compare personal loans for good credit

Here are some key factors to consider when you’re choosing among personal loans:

• Cost of borrowing: APR accounts for the interest rate and upfront fees. Lenders are required by the Truth in Lending Act (TILA) to display APR when advertising rates, so borrowing costs are generally transparent. However, be sure to check for other fees, such as late fees. Although most lenders don’t charge prepayment penalties for paying off a loan early, it never hurts to check the fine print.
• Loan amounts: Loan amounts vary between lenders. Make sure the lender offers the loan amount you need. Note that you might qualify for a larger loan amount with a lender that offers longer repayment terms relative to one that doesn’t.
• Repayment terms: Look at the repayment periods offered by lenders you are considering. Shorter terms mean higher monthly payments but less interest overall. Longer terms lower monthly costs but increase the total interest paid.
• Customer service: Choose a lender with a reputation for providing excellent customer support. You want a lender that will be helpful and responsive if you have questions or issues with your loan. Trustpilot and the Better Business Bureau are valuable resources for researching how well lenders and other businesses treat their customers.

Learn More: How To Compare Personal Loans

Will a personal loan boost my credit score?

Yes, a personal loan can increase your credit score over time if managed responsibly. Here are a few key ways that getting a personal loan, and repaying it, can help your score:

• Maintaining a positive payment history: Payment history is the largest factor in determining your FICO score (35%). Making each loan payment helps strengthen your record of paying on time. 
• Amount of debt owed: This category accounts for 30% of your FICO score, making it the second-most influential factor after payment history. Although taking out a personal loan increases your total debt, paying off the loan gradually reduces it. FICO looks at debt owed on all your accounts, so it’s important to fulfill your other obligations in addition to the loan.
• Lowering your credit utilization ratio: Your credit utilization is the amount you owe on revolving credit lines, such as credit cards, compared to your credit limits. If you use a personal loan to consolidate credit card debt, you could reduce your credit utilization ratio and see improvements to your credit score within one month.
• Diversifying your credit mix: Lenders like to see that you can handle multiple types of credit. Adding a new personal loan could improve your credit mix, which accounts for 10% of your FICO score, especially if you don't have another type of installment loan on your credit report.

Alternatives to personal loans 

Although a personal loan can be very useful, it’s not a Swiss army knife. There may be some situations where you should consider alternatives to personal loans. 

Line of credit

A line of credit is a type of revolving credit account that allows you to borrow money when you need it. You can get an unsecured line of credit from some banks, for example. Once you're approved, you can draw from it as needed during the draw period. Lines of credit may have a defined draw period and repayment period or a continuous draw period:

• Draw period: The time during which you can use the line of credit. Interest-only payments may be required.
• Repayment period: Once the repayment period begins, you can no longer use the credit line and will pay off the balance in installments over a period of years.
• Continuous draw period: You can keep using the line of credit, similar to a credit card.

Lines of credit typically have variable interest rates. How large a credit line you qualify for will depend on your credit, income, and current debt. 

Home equity line of credit (HELOC)

Some banks and lenders offer a specific product called a home equity line of credit (HELOC) that lets you borrow against the equity in your home. Lenders typically require that you have at least 20% available equity to qualify. 

A HELOC may have a lower variable APR and higher credit line available and may offer longer repayment terms than other lines of credit. How large a credit line you qualify for will depend on the amount of equity you have in your home, your credit, income, and current debt.

Home equity loan

Like a HELOC, a home equity loan lets you tap your home's equity, and the home is used as collateral. You'll need at least 20% available equity to qualify or a loan-to-value ratio (LTV) of less than 80%. Instead of a line of credit, you'd receive a lump sum upfront that's repaid over a period of years.

Because they're a type of secured loan, rates on home equity loans tend to be lower than personal loan rates, often coming in around 8% or 9% APR, depending on your credit, income, and LTV.

In addition to the collateral requirement, it can take a month or more to get approved for a home equity loan and receive loan funds. This can be a good option if you've built a large amount of equity and need more than what you'd qualify for with a personal loan. Plus, if you use the funds to improve your home, you may be able to deduct the interest on your taxes.

Compare: Personal Loan vs. Home Equity Loan

Credit card

If you need long-term financing, a credit card is rarely a good option. The average credit card rate was 21.47% APR, according to Federal Reserve data. However, there are a few instances when using a credit card could be a better option:

1. You can qualify for a 0% APR promotion: If you have good credit, you might be eligible for a card with a 0% APR on new purchases and balance transfers. Keep in mind that transfers often come with a fee from 3% to 5%. Zero APR offers may last from 6 to 21 months or more. If you can pay off the balance within that time, you can essentially get an interest-free loan. However, the card’s regular APR applies after the promotional period ends.
2. You can pay off the balance within the card's grace period: Credit cards typically have a grace period of one billing cycle, during which time you won't be charged interest on purchases. If you can't pay your balance within the grace period, the purchase will be charged interest at the card's standard APR.
3. You plan to refinance credit card debt: If you're eligible for a 0% APR promotion but can't pay off the balance within the promotional period, you might consider using a personal loan to refinance the debt before the APR adjusts. This is not necessarily recommended since there's no guarantee you'll be able to qualify for debt consolidation.

Learn More: Personal Loan vs. Credit Card

Read More:

• Best Loans for Bad Credit
• Best Loans for Fair Credit
• Best Loans for Excellent Credit
• Best Banks for Personal Loans
• Best Credit Unions for Personal Loans
• Best Online Personal Loans