Best Personal Loans In The United States

Generally, a personal loan is the best option when you need to borrow money for an expensive expense. You can use it for almost anything, even vacations and weddings (although financial experts advise only borrowing money for needs, not wants). It’s cheaper than a credit card, and it can be used for consolidating high-interest credit card debt, making repairs and upgrades to your home, or paying for home repairs and upgrades.

Our top recommendations for personal loans for different situations, including offers from our partners, can help you narrow down your search. In creating our rankings, we evaluated 38 lenders across 40 different loan, lender, and customer service criteria. We considered costs, loan terms, eligibility, and additional features such as pre-approval policies.

Personal loans: what are they?

A personal loan is a money that you borrow from a bank, credit union, or internet lender and returns over two to seven years in equal monthly installments.

The loan approval process for personal loans is based on your credit profile, income, and debts. If you fail to repay the loan, your credit can suffer.

What is the process of getting a personal loan?

A lender will deposit your loan amount, minus any origination fee, into your bank account a few days after you’ve been approved for a personal loan.

You usually begin paying back your personal loan 30 days after you receive it. You can pay the fixed monthly amount directly, or you can set up automatic payments from your bank account. Monthly payments continue until the loan term ends — or earlier if you make additional payments towards your loan.

Advantages and Disadvantages of personal loans

Advantages:

1. Payments based on fixed rates and monthly payments

A personal loan has fixed rates and monthly payments over a set period, so you always know how much you owe and for how long. Other financing options, like home equity lines of credit, have variable rates that can mean fluctuating monthly payments.

2. A flexible loan amount is another benefit

A personal loan may be available in amounts ranging from $1,000 to $100,000, depending on the lender and your creditworthiness.

3. No collateral is required

The difference between an unsecured personal loan and a home equity loan is that unsecured personal loans do not require collateral. If you can’t repay the loan, your credit may be damaged, but no assets will be at risk.

Disadvantages:

1. APRs can be high at maximum

APRs on personal loans can be higher than those on credit cards if you have a low credit score.

2. Fees that may apply

Along with loan payments, borrowers may have to pay origination or late fees.

3. Debt increase

If you take out a personal loan, you will be adding debt to your budget, so you should factor in the additional obligation and feel comfortable repaying it.

Best Overall Personal Loans:

#1. LightStream Personal Loans —

1. Annual Percentage Rate(APR): 7.99% – 24.99%
2. Loan Amounts: $5,000 – $100,000
3. Terms: 24 to 144 months* dependent on loan purpose

Advantages: 

1. Wire transfers or ACH transfers are available for same-day funding (conditions apply)
2. Amounts up to $100,000 are available for loans
3. There are no origination fees, early payoff fees, or late fees
4. With every loan, LightStream plants a tree

Disadvantages: 

1. Credit history of several years is required
2. Direct payments to creditors are not available
3. Student loans and business loans are not available
4. There is no option for pre-approval on the website (although some third-party lending platforms offer prequalification)

For whom is this intended?

SunTrust Bank’s LightStream online lending arm offers low-interest loans with flexible terms to those with good credit. Its loans are available for nearly every purpose except higher education and small businesses. Depending on the company’s website, you can get a LightStream personal loan to purchase a new car, remodel your bathroom, consolidate debt, or cover medical expenses.

#2. SoFi Personal Loans —

1. Annual Percentage Rate(APR): 8.99% – 25.81%
2. Loan Amounts: $5,000 – $100,000
3. Terms: 24 to 84 months

Advantages:

1. Zero fees
2. Funding on the same day
3. Protection from unemployment
4. Call 877-936-2269 to apply with a creditworthy co-borrower who is a U.S. citizen/permanent resident
5. Co-applicants are welcome

Disadvantages: 

1. Small loan amounts are not available
2. A bit higher than other lenders’ rates
3. Only allows co-borrowers, not co-signers

For whom is this intended?

In addition to refinancing student loans, SoFi offers personal loans up to $100,000 based on creditworthiness, making it an ideal lender for refinancing high-interest credit card debt.

SoFi offers a user-friendly app for managing payments if you have high-interest debt on one or more cards, and want to refinance to a lower APR.

SoFi lending is distinct in that it offers the choice of variable or fixed APR. Variable rates can fluctuate over time, allowing you to potentially benefit from a decreased APR, although the opposite is possible too. On the other hand, fixed rates guarantee consistent payments during the loan’s life, making budgeting much simpler.

#3. Happy Money Personal Loans —

1. Annual Percentage Rates(APR): 11.25% – 24.50%
2. Loan Amounts: $5,000 – $40,000
3. Terms: 24 to 60 months

Advantages:

1. Checking multiple offers is easy with the peer-to-peer lending platform
2. Happy Money membership and customer support are required for loan approval
3. Fees for early payoffs are not charged
4. There are no late fees
5. An application that is fast and easy
6. Customer service based in the U.S.

Disadvantages:

1. To see origination fees and other details, you must submit a soft inquiry

For whom is this intended?

If you want to consolidate your credit card debt and pay it off over time at a lower interest rate, a Happy Money personal loan is a good choice.

Since Happy Money’s mission is to help consumers get out of credit card debt once and for all, its loans are specifically designed for debt consolidation.

There is a soft inquiry tool on its website that enables you to look at possible loan options based on your credit report without affecting your credit score. Loan amounts range from $5,000 to $40,000, and loan terms range from 24 to 60 months.

Whether you decide to pay off your debt faster than you originally intended, Happy Money does not charge late payment fees or early payoff penalties, but there is an origination fee based on your credit score and application. If your credit score is high, your origination fee and interest rate will be lower.

The money you borrow from Happy Money can be deposited into your linked bank account or sent directly to your creditors.

#4. PenFed Personal Loans —

1. Annual Percentage Rates(APR): 7.74% to 17.99%
2. Loan Amounts: $600 – $50,000
3. Terms: 1 to 5 years

Advantages:

1. Credit union membership available to anyone
2. Loans as low as $600
3. A physical can be picked up at a branch
4. You may apply with a co-borrower

Disadvantages:

1. There is a physical check for the funds
2. To receive funds, you must be a member (you don’t need to be a member to apply)
3. To get your funds the next day, you must pay for expedited shipping
4. $50,000 is the maximum loan amount
5. There is a $29 late fee

For whom is this intended?

The PenFed credit union offers membership to the general public and offers personal loans for debt consolidation, home improvements, medical expenses, auto financing, and more.

With PenFed, you can get a $600 loan with terms ranging from one to five years, while most lenders require a minimum loan of $1,000. If you wish to receive your funds, you must sign up for a PenFed membership and keep $5 in a qualifying savings account.

If you live near a PenFed location, you can pick up your check directly from the bank. However, if you do not live close to one, you will have to pay for expedited shipping to receive your check the following day. PenFed loans are a good option for smaller amounts, but one drawback is that they come in the form of paper checks. PenFed doesn’t offer an autopay discount like some lenders.

#5. Discover Personal Loans —

1. Annual Percentage Rates(APR): 6.99% to 24.99%
2. Loan Amounts: $2,500 – $35,000
3. Terms: 36, 48, 60, 72 and 84 months

Advantages:

1. There are no origination fees or early payoff fees
2. Decisions made the same day (in most cases)
3. Direct payment option for creditors
4. From mailing a check to paying by phone or app, there are 7 different ways to pay

Disadvantages:

1. There is a $39 late fee
2. Discounts for autopay are not available
3. Cosigners or joint applications are not allowed

For whom is this intended?

Consolidating debt, improving your home, planning a wedding, and taking vacations are all possibilities with Discover Personal Loans. If your application was submitted without any errors (and the loan was funded on a weekday), you could receive your funds as early as the next business day. If not, it will take a week.

There are no origination fees, but Discover charges a late fee of $39 if you fail to repay your loan on time every month. You can pay off your loan early or make extra payments to reduce interest.

You can link your credit card accounts so Discover can send the money directly to your creditors if you’re getting a debt consolidation loan. When you are approved for and accepted for a personal loan, you can link your credit card accounts. All you need is the account number, the amount you’d like paid, and the payment address.

#6. Upstart Personal Loans —

1. Annual Percentage Rates(APR): 4.60% – 35.99%
2. Loan Amounts: $1,000 – $50,000
3. Terms: 36 and 60 months

Advantages:

1. Borrowers with fair credit (minimum 300 scores) are eligible
2. Applicants without a credit score and insufficient credit history will be accepted
3. There are no early payoff fees
4. 90% of personal loans are funded the next business day after the paperwork is completed before 5 p.m. Monday through Friday

Disadvantages:

1. Late fees are high
2. There is an origination fee of 0% to 10% of the target amount (automatically deducted from your loan before it is delivered)
3. The fee for paper copies of the loan agreement is $10 (there is no fee for eSigned virtual copies)
4. A Social Security number is required

For whom is this intended?

One of the few companies that consider factors other than credit score when determining eligibility is Upstart, which is perfect for those with a low credit score or no credit history. If you don’t have sufficient credit, you can still apply with a co-applicant to receive a lower interest rate if you apply with a co-applicant.

If you want to find out your APR before applying, Upstart will perform a soft credit check. Upstart considers factors such as education, employment, credit history, and work experience. When you apply for the loan, the company will perform a hard credit inquiry, which temporarily lowers your credit score.

#7. Upgrade Personal Loans —

1. Annual Percentage Rates(APR): 8.49% – 35.99%
2. Loan Amounts: $1,000 – $50,000
3. Terms: 24 months – 84 months

Advantages:

1. A minimum credit score is relatively low ( Credit Score of 560 or higher )
2. Funding on the same day
3. The payment due date can be changed
4. Discounts for using other Upgrade products

Disadvantages:

1. Origination fees are high
2. There are no short-term loans available
3. Not available in Washington, D.C

For whom is this intended?

If you don’t need to borrow a large amount and don’t want to go through the hassle of joining a credit union (which often offers smaller-dollar loans), Upgrade might be your best bet, especially if your credit isn’t the greatest. It also offers numerous rewards and discounts for using other financial products if you’re willing to switch banks.

The downside is that Upgrade’s loans are a bit on the pricey side, especially if you do have bad credit. An origination fee varies based on your loan profile, from 1.85% to 9.99%. A shorter-term loan would also be welcome, such as a six-month or one-year loan.

#8. U.S. Bank Personal Loans —

1. Annual Percentage Rates(APR): 8.74% – 21.24%
2. Loan Amounts: $1,000 – $50,000
3. Terms: 12 months – 84 months

Advantages:

1. In-person applications are accepted
2. Funding is available on the same day
3. Ratings of high customer satisfaction

Disadvantages:

1. Non-customers are subject to more loan restrictions
2. Borrower assistance plans are few and far between
3. There are only 26 branch locations available

For whom is this intended?

The reputation of big banks isn’t always so good for customers, but at least for personal loans, U.S. Bank isn’t quite that way. According to a J.D. Power survey, it ranked second in quality customer service in 2022, along with low loan rates.

U.S. Bank’s personal loans are easiest to apply for if you’re already a customer because you can do it all online. However, you can still apply for a personal loan even if you don’t already bank with U.S. Bank. However, you’ll have to apply in person, and the loan amount is limited (up to $25,000, with a five-year term). U.S. Bank isn’t available in all states, so it won’t be possible for everyone to apply.

#9. First Tech Federal Credit Union Personal Loans —

1. Annual Percentage Rates(APR): 8.99% – 18.00%
2. Loan Amounts: $500 – $50,000
3. Terms: 24 months – 84 months

Advantages:

1. Options for secured loans
2. There are no restrictions on membership
3. There are debt protection plans available

Disadvantages:

1. Offers no discounts on rates
2. Offers no short-term loans
3. A separate savings account needed

For whom is this intended?

In general, credit unions work better with people with fair credit than your average lender (a score of 580-669, according to FICO), and First Tech FCU is no exception. APRs at the upper end of this range are quite low (18% is the maximum for credit unions), making it a perfect choice for those with fair credit. As collateral for a secured loan, First Tech FCU certificates and savings accounts can also be used.