Best Personal Loans for Excellent Credit of December 2024

Based on an analysis of 31 lenders, we chose SoFi as the best for excellent credit because it offers low minimum rates, low or no fees, multiple repayment terms, high loan amounts, fast funding, and multiple rate discounts. Other noteworthy lenders include PenFed, Discover, and LightStream.

If you have excellent credit — a FICO score of 800 or above — you have the best chance of qualifying for a low rate on a personal loan. Beyond interest rates, the best personal loans for excellent credit also offer high loan maximums and long repayment terms.

Best personal loans for excellent credit

Pentagon Federal Credit Union, or PenFed, is the second-largest federal credit union in the country. Anyone can become a member and apply for a loan or other account with a $5 deposit to a share savings account, which sets this credit union apart from many others with more restrictive membership criteria. It offers bank accounts, credit cards, auto loans, mortgages, personal loans, and more and has a large network of over 85,000 ATMs.

This lender requires a minimum credit score of 700 and borrowers with excellent credit are most likely to qualify for the credit union's lowest rates — which are among the lowest we've found for personal loans.

• Starting APR: 8.99%
• Origination fee: None
• Loan amounts: $600 to $50,000
• Repayment terms: One to five years 
• Funding time: Within two business days

Methodology

Credible evaluated the best debt consolidation personal loans for excellent credit based on customer experience, minimum and maximum interest rates, origination fees, minimum and maximum loan amounts, minimum and maximum loan terms, discounts, the availability of secured loans, whether cosigners are accepted, and more. Special consideration was given to lenders that offer rate discounts for direct payments to creditors, as well as those who serve a range of credit profiles. To assign star ratings, we used the following metrics and weightings:

• 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%

Lenders with lower rates and fees, broader loan amount and repayment term ranges, more perks and discounts, and greater nationwide availability ranked highest.

Credible's team of experts gathered information from each lender's website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party 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 excellent credit?

Excellent credit refers to a FICO score of 800 or higher, well above the average FICO score of 717. An excellent credit score means lenders may be more willing to work with you because your credit history suggests you're less likely to default on a loan than people with lower credit scores.

FICO credit scores range from 300 to 850. Excellent credit scores are the top tier of FICO's scoring model, which breaks down as follows:

Personal loan interest rates for excellent credit

The interest rates on personal loans vary from one lender to the next. However, if you have excellent credit, and are otherwise well-qualified, the chances are good that you'll qualify for the rates on the lower end of a lender's APR range.

According to Credible data, applicants with credit scores above 780 see an average APR of 12.95% on three-year personal loans. That's almost 10 percentage points lower than the average for borrowers with scores between 680 and 719 (22.84% APR). If you have excellent credit (a FICO score above 800), you may be approved for an even lower rate.

How do excellent-credit loans work?

Excellent-credit personal loans work like other personal loans. When approved, you receive a lump sum to use for the loan purpose you provided on your application. Most personal loans are repaid in equal monthly installments and have fixed rates. Repayment terms are often between two and seven years. Loan amounts commonly range from $2,000 to $50,000 or more.

If you have excellent credit, you're most likely to receive rates at the bottom of the lender's APR range, be approved for the highest loan amounts, and receive favorable terms. It's also unlikely you'd be required to pay an origination fee.

Secured vs. unsecured

Personal loans are often unsecured or secured with collateral, like a car or a savings account. With excellent credit, you may be a good candidate for a low-interest unsecured loan.

How to compare excellent-credit lenders

If you have excellent credit, you may be able to choose from a wide range of personal loan lenders. Use the following criteria to help you compare various lenders:

Interest rate and APR

A loan's interest rate is the cost of borrowing, and its annual percentage rate (APR) includes the interest rate plus any upfront fees, such as origination fees, expressed as a percentage. The APR reflects total annualized borrowing costs.

Prequalification

Most lenders let you prequalify to compare loans. Prequalification provides you with estimated rates and loan amounts you might qualify for without hurting your credit score. However, prequalification doesn't guarantee approval or constitute an offer, and rates and fees are subject to change if you formally apply.

Fees

Lenders might charge origination fees, which are deducted from loan funds upfront, as well as incidental fees such as late fees. With excellent credit, you are more likely to qualify for personal loans with no origination fees.

Loan amount

Minimum and maximum loan amounts vary by lender, but many personal loans are capped at $50,000 or less. An excellent credit score could make you more likely to qualify for a $50,000 loan. Some lenders like SoFi, LightStream, and BHG offer even larger loans — up to $100,000 or more.

Available terms

Personal loan repayment terms generally range from 2 to 7 years, depending on the loan purpose and lender. However, some lenders offer much longer terms for certain loan types, such as home improvement loans and RV financing.

Ease of application

Look for lenders with a simple, user-friendly application process. Most lenders let you complete the entire application online.

Funding time

If you need your loan proceeds quickly, make funding time a priority. Some lenders can fund your loan the same business day you sign the agreement, while others may take a few business days or up to one week.

Customer satisfaction

Don't neglect other customers' experiences when comparing lenders. Read reviews on sites like Trustpilot or Better Business Bureau (BBB) for insight from previous borrowers.

Pros and cons of personal loans

Pros

• Lower rates than credit cards: Two-year personal loans come with average interest rates more than 9 percentage points lower than credit cards — 12.33% vs. 21.76% — according to the Federal Reserve.
• May not require collateral: When you take out an unsecured personal loan, you don't risk losing personal assets if you default. Though unsecured loans may have higher interest rates overall than secured loans, excellent-credit borrowers often qualify for the lowest rates.
• Fast funding: Many lenders can fund a loan within a day of approval, and some may even disburse funds the same day you apply, like LightStream or SoFi.
• Predictable monthly payments: Personal loans typically come with fixed monthly payments and interest rates, unlike other forms of credit. This means you'll know exactly how much you owe each month.
• Flexible use: Personal loans are disbursed as lump sums that can be used for a variety of approved purposes, including paying for large purchases, debt consolidation, emergency expenses, vacations, medical procedures, and home renovation.

Cons

• Increased debt burden: Taking out a personal loan means adding to the amount of debt you owe (unless used to consolidate other debt). Lump-sum funding differs from revolving lines of credit, which allow you to borrow as needed.
• Potential fees: Some personal loans come with fees, like origination fees and late fees.
• May have higher interest rates than other forms of debt: While personal loans tend to have lower rates than credit cards, they tend to have higher rates than loans secured using your home's equity as collateral, such as a home equity loan.

How much will an excellent-credit personal loan cost?

Your cost will depend on the following factors:

• Loan amount: The amount you can borrow depends on your income and current debt, along with your credit score and intended loan purpose. Most lenders offer $1,000 up to $50,000, but some provide loans up to $100,000 or more.
• Repayment term: Most lenders offer terms between 2 and 5 years, but some offer 7-year terms as well. You may find longer terms for certain purposes (such as home improvement).
• APR: The annual cost of the loan is represented by the APR, which accounts for the interest rate and any upfront fees the lender charges.

Consider these hypothetical examples:

• A borrower in the exceptional credit range ( 800 FICO and above): A $10,000, three-year loan with a 13% interest rate would mean a monthly payment of $337 and a cost of $2,130 in total interest over the life of the loan.
• A borrower in the good credit range (670-739): A 23% interest rate on a $10,000, three-year loan, would mean a monthly payment of $387 and an overall interest cost of $3,935. In this case, having excellent credit as opposed to good credit could save you up to $1,805.

Use a personal loan calculator to estimate your payments — including both your monthly payments and the total amount of interest you'll pay — with different loans. Most calculators let you change the loan term, loan amount, and rate.

How to apply for a personal loan for excellent credit

The application process for personal loans tends to be the same no matter your credit score. Here are the typical steps to expect.

Research and compare lenders

Research lenders and their APRs, fees, loan maximums, funding times, accessibility, and customer service. Make sure the lender will allow you to use the loan how you'd like. For instance, some lenders may only make loans for debt consolidation and credit card refinancing.

Prequalify

Many lenders allow you to prequalify before applying. Doing so involves a soft credit pull and gives you an estimate of your potential loan terms, making it easier to compare options. Keep in mind the lender performs a hard credit inquiry if you apply, which typically dings your credit score by a few points.

Choose a lender and apply

After choosing the best personal loan quote, review the application process. Many lenders offer online applications. Before beginning the application, gather any necessary information and documentation. You'll typically need to supply a government-issued ID, recent W-2s or tax returns, and proof of address.

Review terms and your sign loan agreement

After the lender receives and approves your application, review the final loan terms offered. If you're comfortable with the terms and monthly payments, sign the loan agreement.

Receive your funds and begin making monthly payments

Funds should land in your account as soon as the next day or within a week, depending on the lender. After receiving the funds, you'll start making monthly payments. The payment schedule or start date should be laid out in your loan agreement.

Alternatives to personal loans for excellent credit

If you have excellent credit, you have several options when it comes to borrowing.

Credit cards

Credit cards are more flexible than personal loans — you can use as much or as little of your available credit as you want, repay the balance, and do the same the following month. Plus, most cards have an interest-free grace period. If you need a short-term loan (one billing cycle or less) and have a sufficient limit, a credit card may be the best choice.

If you have excellent credit, you're likely to qualify for a new card with a 0% APR introductory rate that could last well over one year. Or you might already have a card with a 0% APR balance transfer offer. Since introductory rates and balance transfer offers tend to have shorter periods than personal loans, be sure you can pay off the bulk of the amount within that time.

Keep in mind that balance transfers often include fees between 3% and 5% of the amount transferred. Additionally, if you don't pay off your balance within the promotional period, the regular APR will apply.

Home equity loan

If you have sufficient equity in your home, borrowing against it may cost you less in interest than a personal loan. Home equity loans are secured by using your home as collateral, so they tend to come with lower interest rates. As with personal loans, a home equity loan is received in a single lump sum, then repaid via monthly installments.

Home equity loans can come with terms up to 30 years, depending on the lender, and you can typically borrow up to 80% of the equity in your home. However, you may have to pay closing costs between 2% to 5% and funding can take 30 days or more.

Home equity line of credit

A home equity line of credit (HELOC) is another secured form of borrowing that uses your home equity as collateral. Unlike a home equity loan, a HELOC is a revolving line of credit. You can draw against it, up to your available limit, during the draw period. After that, you'll pay it off with monthly payments during your HELOC's repayment period. HELOC draw periods may be around 10 or 15 years, and repayment periods are up to 20 years.

Keep in mind, with a HELOC and a home equity loan, your house is on the line if you fail to make payments.

Read More:

• How Do Personal Loans Work?
• What Are Personal Loans Used For?
• Best Personal Loans for Bad Credit
• Best Personal Loans for Fair Credit
• Best Personal Loans for Good Credit