To find the best personal loan it’s important to understand that there are many reasons you might need to borrow money. Whether you want to consolidate your debt, take care of an unexpected expense, or finance a home improvement project, a personal loan could be a good fit to help you access the money you need.
Best Personal Loans–October 2020
|Lender||Best For||APR Range||Minimum Loan Amount||Maximum Loan Amount||Terms||Recommended Credit Score|
|SoFi||Best Overall||5.99%–18.53% with autopay||$5,000||$100,000||2–7 years||680+|
|Marcus by Goldman Sachs||Best for Debt Consolidation||6.99%–19.99%||$3,500||$40,000||36–72 months||660+|
|LightStream||Best for Good Credit||3.99%–19.99% with autopay||$5,000||$100,000||24–144 months||680+|
|Upstart||Best for Fair Credit||7.98%–35.99%||$1,000||$50,000||3 or 5 years||600+|
|Avant||Best for Bad Credit||9.95%–35.99%||$2,000||$35,000||2–5 years||600+|
|Best Egg||Best Overall, Runner-Up||5.99%–29.99%||$2,000||$35,000||36–60 months||640+|
|Wells Fargo||Best Bank||5.74%–20.24% with relationship discount||$3,000||$100,000||12–84 months||670+|
|First Tech Credit Union||Best Credit Union||7.70%–18%||$500||$50,000||24–84 months||580+|
Loan amounts, APR, and repayment period may vary by loan purpose or type.
Before you sign on the dotted line, it’s smart to do a little research. Comparing loan options in advance could potentially save you money and protect your credit from unnecessary hard inquiries, which can lower your credit score. It’s not uncommon for companies that offer personal loans to do what are known as soft pulls, which don’t ding your credit, so you can see if you qualify before filling out an official loan application.
Of course, there’s no such thing as a one-size-fits-all personal loan. The federal reserve reported the 24-month average personal loan interest rate at 9.63% in Q1 2020.1 Yet current interest rates on personal loans can range from around 3.99% to 36%, based on your credit. Plus, some lenders may not let you borrow as much money as you need.
We’ve researched more than two dozen personal loan options and compared their interest rates, fees, qualification requirements, and other features. Below you’ll find a list of our top picks for a number of categories. One overall positive: None of them charge a prepayment penalty if you happen to pay off your loan early. Depending upon your situation and why you need to borrow money, one of these personal loans might be a good fit for you.