Personal Loans

We analyzed dozens of personal loan lenders and selected our top picks for the best personal loans out there, sorted by what we believe makes the loan stand out.

Best for debt consolidation: Marcus by Goldman Sachs

Why Marcus stands out: If you want to pay off multiple debts at once, Marcus can help you by sending payments to up to 10 creditors. Plus, Marcus doesn’t charge application, origination, prepayment or late fees, which can increase the total amount you have to repay.

Marcus offers personal loans ranging from $3,500 to $40,000.

• Competitive interest rates — Marcus offers competitive rates, but the company says “only the most creditworthy applicants” will qualify for its lowest rates. And loans with longer terms tend to have higher interest rates. If you want to use a Marcus loan to consolidate debt, be sure to compare the interest rate you’re offered to the rate you’re paying on any existing debts. If you can’t qualify for a lower rate, it probably doesn’t make sense to take out a debt consolidation loan.
• Strong credit needed — If your credit has some dings in it, Marcus might not be the best choice. According to the Goldman Sachs 2020 annual report, 91% of Marcus customers have FICO® credit scores of 660 or higher.
• Ability to prequalify — During prequalification, Marcus uses a soft credit inquiry that doesn’t affect your credit scores to estimate your potential rate and terms. Just remember, prequalifying doesn’t mean you’ll be approved for a loan. And if you are approved, you may qualify for a different rate and term than you saw during prequalification.

 

Best for home improvement: LightStream

Why LightStream stands out: LightStream — the online lending division of Truist Bank — offers personal loans ranging from $5,000 to $100,000, making it possible for you to tackle home improvement projects from small to large. (Take note, though, that you may see a different loan range through Credit Karma.)

If you don’t want to (or can’t) use home equity to fund improvements, LightStream might be a good option. The lender offers very competitive interest rates and promises to beat other lenders’ rates in certain circumstances.

• Good credit required — Without a strong credit profile, you may have difficulty qualifying for a loan with LightStream.
• No-fee promise — LightStream doesn’t charge fees like origination or application fees or charge a prepayment penalty for early repayment of its personal loans.
• No option to prequalify — You can’t check rates and terms without affecting your credit scores. Applying for a personal loan with LightStream will generate a hard credit inquiry, which may lower your credit scores.

 

Best for bad credit: NetCredit

Why NetCredit stands out: NetCredit looks at factors beyond your credit scores when evaluating your loan application. Plus, NetCredit reports payments to credit bureaus Experian and TransUnion, which can help you build your credit history if you make all your payments on time as agreed. NetCredit also offers access to online financial education courses to help improve your knowledge about a range of financial topics, including budgeting, credit scores, saving and more.

• High interest rates — Because NetCredit works with people who have bad credit, the interest rates the company offers are higher than what you may find from other lenders. But NetCredit’s rates are lower than what payday lenders typically charge.
• Fees — NetCredit charges origination and late fees in some states. But there are no fees for paying off your loan early, which can save you on interest charges, or for insufficient funds.
• Ability to prequalify — If you’re eligible to receive a loan from NetCredit, you’ll receive an offer with estimated rates and loan terms. NetCredit uses a soft credit inquiry, which doesn’t affect your credit scores, to make you a prequalification offer. If you accept the offer, a hard inquiry will be generated. A hard inquiry may negatively affect your credit scores for a short time.

 

Best for building credit: Upstart

Why Upstart stands out: Upstart is a lending marketplace that says it considers nontraditional factors, such as education, field of study, grade point average and job history, when making loan decisions. And the company accepts applications from people who don’t have enough information in their credit file to generate a FICO® score. If you’re trying to improve your credit scores, Upstart may be an option, as the lender considers applicants with VantageScore® or FICO® credit scores as low as 620.

Upstart offers personal loans ranging from $1,000 to $50,000 and repayment terms of three or five years. (You may see different terms if you apply through Credit Karma.)

• Range of interest rates — Upstart’s interest rates range from competitive to relatively high, and the average APR on a three-year loan is 15%, according to its website. For comparison, the national average APR for credit cards in May 2020 was 14.52%. Upstart’s rates are determined by factors such as an applicant’s credit, annual income, education and job history.
• Prequalification available — When you apply for prequalification, Upstart uses a soft credit inquiry, which doesn’t affect your credit scores, to provide estimated loan amounts and terms you might qualify for. But prequalification doesn’t guarantee approval. And if you are approved, your loan amount and terms might be different than what you saw when you applied for prequalification.
• Potentially fast funding — If your loan application is approved and you accept your loan terms by 5 p.m. Eastern time, Upstart says you’ll typically receive your loan funds by the next business day. When you can actually access those funds will depend on your bank.

 

Best for secured personal loans: Wells Fargo

Why Wells Fargo stands out: Wells Fargo offers both unsecured and secured personal loans. Securing your personal loan with assets in a saving or CD account may give you access to a lower interest rate or larger loan amount. Keep in mind that a secured loan does have a $75 origination fee.

The bank’s unsecured loans range from $3,000 to $100,000 and secured options go up to $250,000.

• Competitive interest rates — Wells Fargo offers competitive interest rates that are in line with what other large banks charge for personal loans. Plus, the bank offers autopay discounts to customers with eligible Wells Fargo accounts. To qualify for the lowest rates available, you’ll need strong credit and enough income to repay your loan on time.
• Prequalification not available — Wells Fargo doesn’t let you check your estimated rate and loan term before applying. To see your loan details, you must submit a formal loan application, which will generate a hard credit inquiry that can negatively affect your credit scores.

 

Best credit union for personal loans: Alliant Credit Union

Why Alliant stands out: You must be a member to apply for a loan from Alliant Credit Union, but it’s not difficult to join. If you’re a member or decide to become one, Alliant Credit Union offers competitive rates, debt protection plans and sometimes even same-day loan funding.

• Competitive interest rates — Alliant Credit Union offers competitive interest rates on its personal loans, which vary based on the loan term. Loans with shorter repayment periods have lower interest rates than loans with longer repayment terms.
• Debt protection plan — With Alliant Credit Union’s debt protection plan, your monthly payments may be suspended or canceled due to disability, involuntary unemployment or death — without additional interest, penalties or impact to your credit scores.
• Loan amounts — Alliant Credit Union offers personal loans in amounts ranging from $1,000 to $50,000 with repayment terms of 12 to 60 months.