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Personal loan rates currently range from around 7% to 36%, depending on the lender, borrower creditworthiness and other factors. While interest rates are not the only costs associated with taking out a loan, it’s important to compare lenders to identify the best personal loan rates available.
Best Personal Loan Rates Of 2024
The above lists our best personal loan providers by lowest to highest annual percentage rate (APR) range. The below lists these providers in order from highest to lowest star rating. Our loan experts rate providers based on APR, as well as loan details, eligibility requirements, customer experience and more.
BEST OVERALL PERSONAL LOAN RATES
LightStream
APR range
6.99% to 25.49%
with autopay
6.99% to 25.49%
with autopay
Editor’s Take
With low minimum and maximum interest rates, LightStream personal loans stand out for having the best overall interest rates for a range of loan amount. Beyond that, LightStream charges no origination, late payment or prepayment fees. The lender also offers a 0.50% rate discount for borrowers who enroll in autopay, which is higher than most lenders with the same perk.
Pros & Cons
Long loan terms available
Low interest rates
Fast approval and funding
No prequalification option
High minimum loan amount
Low average customer rating on Trustpilot
Details
Eligibility:
Minimum credit score. 660
Minimum income. Does not disclose
Co-borrowers. Permitted
Lightstream, a division of Trust Bank, is known for its range of loan options and competitive rates. The downside can be its strict eligibility criteria, making it difficult for those with less-than-stellar credit history to gain approval.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
BEST FOR LARGE LOAN AMOUNTS
SoFi®
APR range
8.99% to 29.99%
with autopay
8.99% to 29.99%
with autopay
Editor’s Take
SoFi personal loans range from $5,000 to $100,000, making the lender a great option for those with excellent credit who need to borrow a large amount of money. Loan amounts available may vary by the state you live in. Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (minimum 650) and annual income (at least $45,000).
Pros & Cons
Prequalification without a hard inquiry
Same-day approval possible
Can pay off third-party creditors directly
High credit score requirement
Co-signers not permitted
Details
Eligibility:
Minimum credit score required. 650
Minimum annual income. $45,000
Co-borrowers. Permitted
Co-signers. Not permitted
What I find impressive about SoFi is its innovative approach to lending, with a focus on providing borrowers with personalized loan options tailored to their unique financial situations.
As a small business owner, I benefited from SoFi’s competitive rates and borrower-friendly terms, which include no origination fees or prepayment penalties. Also, SoFi’s member benefits, such as career coaching and financial planning resources, add value beyond just the loan itself, making it an attractive choice for entrepreneurs looking to grow their businesses while managing their finances responsibly.
— Michael Ashley, finance expert, Richiest.com
BEST FOR CURRENT WELLS FARGO ACCOUNT HOLDERS
Wells Fargo
APR range
7.49% to 23.24%
with autopay discount
7.49% to 23.24%
with autopay discount
Editor’s Take
For customers with an established relationship with Wells Fargo, a Wells Fargo personal loan is a good option thanks to the 0.25% or 0.50% relationship discount. Wells Fargo offers fixed-rate personal loans with limits between $3,000 to $100,000 and repayment terms from 12 to 84 months. While longer term lengths, such as 84 months, will decrease your fixed monthly payment, you will pay more interest over the life of your loan compared to a loan with terms of, let’s say, 12 months.
Pros & Cons
Receive funds the next business day, if approved
0.25% discount when you enroll in autopay
No origination fees or prepayment penalty
Must have a Wells Fargo checking account to receive 0.25% discount
New Wells Fargo customers will need to visit a branch to apply
No option to prequalify
Details
Overview: Wells Fargo offers fixed-rate personal loans with limits between $3,000 to $100,000 and repayment terms from 12 to 84 months. Although Wells Fargo is available to anyone in the United States, only current Wells Fargo customers will be able to apply online.
New customers will need to visit a branch location. Wells Fargo does not have branch locations in Indiana, Kentucky, Louisiana, Ohio, Oklahoma, Maine, Massachusetts, Michigan, Missouri, New Hampshire, Vermont or West Virginia.
Eligibility:
Doesn’t disclose minimum credit requirement
Doesn’t disclose minimum income requirement
Doesn’t allow co-signers or co-borrowers
Loan uses:
Debt consolidation
Home improvement
Medical bills
BEST FOR NO INTEREST IF REPAID WITHIN 30 DAYS
Discover
Editor’s Take
Discover personal loans offer borrowers the ability to repay their loans within 30 days interest-free. Along with that feature, Discover stands out because of its online application and mobile banking tools, well-reviewed customer support team and quick funding. In general, loans are available from $2,500 to $40,000 and may be issued for between three and seven years.
Pros & Cons
No origination fees
Low interest rates
Funds can go directly to paying off credit lines
No interest rate discount for autopay
No co-signers or co-borrowers accepted
Good credit needed to qualify
Details
Eligibility:
Minimum credit score: 660
Minimum income: $25,000
Co-signers. Not permitted
Co-borrowers. Not permitted
BEST FOR EXISTING U.S. BANK CUSTOMERS
U.S. Bank
APR range
8.74% to 24.99%
with autopay
Loan amounts
$1,000 to 50,000 to existing U.S. Bank customers (up to $25,000 for noncustomers)
Depends on the area you live in
8.74% to 24.99%
with autopay
$1,000 to 50,000 to existing U.S. Bank customers (up to $25,000 for noncustomers)
Depends on the area you live in
Editor’s Take
For their current customers, U.S. Bank personal loans are a great option since having a checking account here allows borrowers to access higher borrowing amounts and longer repayment terms. For customers, loan terms range from 12 to 84 months and loan amounts from $1,000 to $50,000.
Pros & Cons
Operates physical branches
0.50% autopay discount
Quick funding
Need a credit score of at least 800 to qualify for the lowest advertised rates
Smaller loan amounts available to non-U.S. Bank checking customers
Branch locations in only 26 states
Details
Eligibility
Minimum credit score. Does not disclose
Minimum income. Does not disclose
Co-signers. Permitted
Co-borrowers. Permitted
U.S. Bank’s loans are a reliable option for small business owners seeking financing solutions. What makes U.S Bank special is its flexible loan terms and competitive interest rates, making it a favorable choice for entrepreneurs looking to fund their business ventures. Also, U.S. Bank’s simple application process and responsive customer service make it a very convenient option for small business owners to access the funds they need promptly.
— Michael Ashley, finance expert, Richiest.com
BEST FOR LOW RATES AT A CREDIT UNION
PenFed
Editor’s Take
PenFed is a national credit union with fixed-rate, low-interest loans that start at $600 to $50,000. PenFed personal loans carry rates from 8.99% to 17.99%, based on your application and credit information, and there’s no early payoff penalty and no origination or hidden fees.
Pros & Cons
No origination or prepayment fees
Prequalification with a soft credit check
Allows for co-borrowers
Doesn’t operate branches in all states
Requires membership
Charges late payment fee of $29
Details
Eligibility:
Minimum credit score. Does not disclose
Minimum income. Does not disclose
Co-borrowers. Permitted
PenFed is best for those who have been a member of the credit union for a while. Anyone can join the credit union and membership actually seems to factor into loan availability. Loan rates are often lower with PenFed than with many direct lenders. This is an excellent option for those with high credit scores.
— Herman Thompson, Jr., advisory board member
BEST FOR LOANS AS LOW AS $1,000
Upstart
Editor’s Take
With various loan options, including loan amounts ranging from $1,000 to $50,000, an Upstart personal loan is a good option for borrowers looking for small personal loans. Beyond that, the lender’s minimum 300 credit score makes it an accessible option to those with fair credit.
Pros & Cons
Accessible to borrowers with no credit history
Prequalification with a soft credit check
Ability to choose a custom payment date
Charges an origination fee up to 12% of the loan amount
No co-signer option
Only offers three or five years terms
Details
Eligibility:
Minimum credit score. 300
Minimum income. No minimum but must have a source of income
Co-signers. Not permitted
Co-borrowers. Not permitted
Upstart has no minimum credit score to apply for a loan, which makes them a popular choice for borrowers of all categories. Those with lower credit scores or uneven credit history may receive offers with [high APRs]. Loan amounts range from $1,000 to $50,000 and loan term lengths available are three or five years.
Upstart offers flexibility with payment dates and funding can be as soon as one business day. However, some requirements are employment, steady income, a personal bank account, email address and a Social Security number. Some fees may apply, including an origination fee, late fees or statement fees.
— Stephen Kates, CFP®, Annuity.org
Summary: Best Personal Loan Interest Rates Of June 2024
The above personal loan rates and details are accurate as of June 28, 2024. While we update this information regularly, the annual percentage rates (APRs) and loan details may have changed since the page was last updated. Keep in mind, some lenders make specific rates and terms available only for certain loan purposes. Be sure to confirm available APR ranges and loan details, based on your desired loan purpose, with your lender before applying.
Tips for Comparing Personal Loan Rates
In general, annual percentage rates (APRs) vary by lender and depend on several factors, including the applicant’s creditworthiness. However, there are several things you can do to access the lowest rate possible when applying for a personal loan. Consider these factors when comparing personal loan rates:
Credit score and eligibility requirements.
Credit scores are the main factor in determining the interest rate a borrower qualifies for through a lender. Evaluate each lender’s eligibility requirements to see how your score compares to the minimum credit score requirement. This can help determine whether you’re likely to qualify for the lender’s lowest—or highest—rates.
Average borrower rates.
While banks and online lenders advertise a range of available interest rates, it is not always clear how many borrowers actually qualify for the most competitive offerings. Some lenders publish the average interest rate borrowers qualify for, but it may be necessary to read customer reviews to see whether the average borrower qualifies for competitive rates.
Loan amounts and repayment terms.
Higher loan amounts typically come with higher interest rates to make up for the increased lending risk. Likewise, longer loan terms are often accompanied by higher APRs. When comparing lenders, consider whether the personal loan rates can be reduced by changing the structure of the loan.
Additional costs.
Beyond a lender’s interest rates, consider whether borrowers are charged any additional fees that can increase the APR and overall cost of borrowing. This may include origination fees that are charged when the loan is disbursed, late fees or prepayment penalties.
Pro Tip
When comparing personal loan options, be sure to check lender rules for acceptable personal loan uses since some lenders place restrictions on how you can use funds. For example, you may not be able to use a personal loan to pay for college tuition, business expenses or a house down payment. On the other hand, you’re typically allowed to use personal loan funds to consolidate debt or pay for major expenses, like home improvement costs or medical bills.
Complete Guide To Personal Loan Rates
Current Personal Loan Rates
What Is a Good Interest Rate on a Personal Loan?
Personal loan rates range from around 7% to 36%, with the average hovering around 12-15% for a 3-year loan. A good interest rate on a personal loan is one that is lower than the national average. However, borrowers with excellent credit scores may qualify for even lower rates.
Average Personal Loan Interest Rates By Credit Score
Interest rates vary by lender, borrower qualifications and loan characteristics. However, interest rates are best predicted by a borrower’s credit score. According to Experian, the average interest rates for Vantage Score ranges are as follows:
Personal Loan Rates for Excellent Credit
If you have excellent credit, or a credit score above 720 on the FICO scale, you’re most likely to qualify for the lowest interest rates on a personal loan. If you also have a high and steady income, you’ll be offered competitive interest rates from a range of lenders.
Related: Best Personal Loans For Excellent Credit
Personal Loan Rates for Good Credit
Good credit, or a FICO score of at least 670, can help you qualify for low interest rates. If you have good credit along with a low debt-to-income ratio (DTI) and a steady income, you could be offered loans with the lowest interest rates.
Related: Best Personal Loans For Good Credit
Personal Loan Rates for Fair Credit
With fair credit, or a score between 580 and 669 on the FICO scale, you’ll likely have difficulty qualifying for low interest rates on a personal loan. Many lenders will offer you a loan, but it may come with high interest rates or fees. Improving your credit score can save you money on interest if you decide to take out a loan.
Related: Best Personal Loans For Fair Credit
Personal Loan Rates for Bad Credit
With bad credit, or a FICO score below 580, you’ll have difficulty qualifying for most personal loans, and if you do, you’ll likely be offered high interest rates. Look for lenders that work with borrowers who have bad credit scores or those who use alternative lending models.
Related: Best Personal Loans For Bad Credit
How Lenders Determine Personal Loan Rates
Lenders determine personal loan rates based on several factors, but the applicant’s credit score and overall credit profile are the most important. Many traditional and online lenders also look at the prospective borrower’s income and current outstanding debts to determine their debt-to-income ratio (DTI).
DTI is the ratio of a borrower’s monthly income to their monthly debt service and is used to evaluate an applicant’s ability to make on-time payments. The higher the DTI, the riskier the borrower—and the higher the interest rate they’ll likely receive.
When determining personal loan rates, some online and alternative lenders also look at a prospective borrower’s occupation and education to evaluate earning potential. Likewise, lenders may evaluate the risk posed by a borrower based on where they live.
How to Get the Best Personal Loan Rates In 2024
The most competitive personal loan rates are typically reserved for the most creditworthy borrowers. However, there are other factors that can impact rates, and it is possible to get a lower rate without a stellar credit profile. Follow these tips to get the best personal loan rates:
Understand your credit report. Before prequalifying or applying for a personal loan, request a copy of your credit report from one of the three main credit bureaus—Equifax, Experian and TransUnion. A credit report includes valuable insight into how your credit scores are calculated and how much risk you pose to lenders. Likewise, check your credit score and use it to prequalify for an APR before submitting to a hard credit inquiry.
Calculate the best loan amount and term. Personal loan APRs are generally higher for larger loans and more extended repayment terms. That said, shorter repayment terms mean larger monthly payments. Use a personal loan calculator to determine how much monthly payment you can afford, and then opt for the shortest possible loan term.
Apply with a co-signer or co-borrower. If you won’t qualify for a competitive APR based on your personal credit, consider applying with a co-borrower or co-signer who has a higher credit score. This approach can lead to higher approval odds and lower personal loan rates.
Choose a secured loan. A secured personal loan is one that is collateralized by a valuable asset, such as real estate. If a borrower defaults on a secured loan, the lender can seize the collateral in order to recoup the outstanding loan balance. Because secured loans are less risky to lenders, they may be a better fit for borrowers who can’t qualify for a personal loan or a competitive APR.
Take advantage of rate discounts. Many lenders offer rate discounts to borrowers who sign up for automatic payments during the loan application process. When comparing lenders, choose an option that offers autopay discounts or other savings opportunities.
Opt for a fee-free lender. To remain competitive, some lenders moved to a fee-free structure that does not charge origination fees, late payment fees, prepayment penalties or other additional costs. Choosing a fee-free lender can reduce the overall cost of a loan, thereby reducing the APR.
Pros and Cons of Personal Loans
Before taking out a personal loan to consolidate debt or finance your next purchase, it’s a good idea to run through the pros and cons. Below are the advantages and disadvantages of personal loans you should be aware of.
Pros of Personal Loans
Flexible loan amounts
Unsecured loans typically require no collateral or down payment
Fixed installment payments
Can qualify for low interest rates
Loan funding may happen in a week or less
Funds can be used to pay for almost any type of legal personal expense
Cons of Personal Loans
Loans may have origination fees
Collateral may be required if you don’t have good credit
Borrowers with less-than-perfect credit may qualify for higher interest rates
Loans can damage your credit history if you don’t make on-time payments
Late payment fees or prepayment penalties may increase the cost of the loan
Where To Get a Personal Loan
Various lenders offer personal loans and some may be better suited for you and your financial needs. Before accepting a loan, consider
How To Get a Personal Loan
Although the process can vary by lender, you’ll generally take these steps in order to get a personal loan:
Check your credit. Before starting your search for lenders, check your credit score for free through your credit card issuer or another service. This will help you narrow down which lenders will be willing to work with you.
Improve your credit. If your credit score is lower than 610, take steps to improve your credit score such as lowering your credit usage or paying off debts. This can help you qualify for a loan and, in some cases, a lower interest rate.
Shop around for lenders. Determine how much money you need to borrow and which lenders whose qualification requirements you meet. Many lenders will let you pre-qualify before submitting a formal application, which allows you to see the rates you could qualify for without impacting your credit score.
Submit an application. Once you find the lender that works best for you, submit an application. Depending on the lender, this can take hours or days.
Recap: Best Personal Loan Interest Rates of 2024
LightStream: Best for borrowers who can qualify for low interest rates and want a lender with no origination, late payment or prepayment fees
SoFi: Best for borrowers who are looking to borrow a large personal loan
Wells Fargo: Best for borrowers who have an existing relationship with the lender
Discover: Best for borrowers who can repay their loan within 30 days
U.S. Bank: Best for borrowers who are U.S. Bank customers and can take advantage of the customer discounts
PenFed: Best for borrowers looking to get low interest rates at a credit union
Upstart: Best for borrowers who are looking to borrow a small amount
Methodology
We reviewed 29 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
Loan cost. 35%
Loan details. 20%
Eligibility and accessibility. 20%
Customer experience. 15%
Application process. 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Frequently Asked Questions (FAQs)
A personal loan is a type of financing that lets borrowers access cash for a wide range of personal uses, including home improvements, auto repairs and unanticipated expenses. Loan amounts and repayment terms vary by lender, but the best personal loans typically range from $1,000 to $100,000 with some starting as low as $250. In general, loan repayment terms extend from one to seven years.
What’s the difference between APR and interest rate?
The main difference between APR versus interest rate is that the interest rate is the actual cost to borrow money. In contrast, a loan’s annual percentage rate includes the interest rate plus additional costs like finance charges as the annual cost over the life of the loan.
Can I negotiate personal loan rates with lenders?
In some cases, you may be able to negotiate with lenders to get a lower interest rate on your personal loan. Call and ask the lender if you can lower your interest rate, and if that doesn’t work, refinancing your loan may be the best option for securing a lower interest rate.
Can I get a personal loan with bad credit?
It is possible to get a personal loan with bad credit, but it is generally more difficult to qualify—especially for competitive rates. Less creditworthy applicants also face lower borrowing limits and higher interest rates than more qualified applicants. However, some lenders specialize in personal loans for borrowers with bad credit, instead basing lending decisions on alternative credit data.
How much will a personal loan cost?
The cost of a personal loan depends on the lender, type of loan and the borrower’s creditworthiness. Interest typically accrues on personal loans at a rate from 4% to 36%, with the lowest rates accessible to high-credit borrowers. In addition to interest, some lenders also charge origination fees between 1% and 8% of the total loan amount. Borrowers also may be subject to late payments fees and/or prepayment penalties, which can increase the total cost of the personal loan.
How much can you borrow with a personal loan?
How large of a personal loan you can borrow depends on what the lender offers and your own creditworthiness. It’s possible to find lenders offering a wide range of loan amounts from a few hundred dollars up to $100,000.
When you apply with a lender, they’ll consider several different factors to figure out how much to approve you for. This could include your credit score, monthly income, other debt obligations and overall credit history.
Next Up In Personal Loans
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