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Best Personal Loans

SoFi offers the best personal loans for a variety of purposes

Our Process Advertiser Disclosure We help millions of readers find the best personal loans through an independent review process and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend.
38 Lenders reviewed
40 Loan features considered
10 Best of awards

When you need to borrow money for a big expense, a personal loan is generally the best way to go. It’s way cheaper than a credit card, and you can use it for almost anything: consolidating high-interest debt from credit cards, paying for home repairs and upgrades, or even things like vacations and weddings (although most financial experts recommend only borrowing money for needs, not wants).

The downside is that there are so many lenders to choose from, it’s hard to know where to start shopping. Some lenders only work with people with certain types of credit, and some have different policies that can have a big impact on your loan repayment, or even whether you’ll be approved for a personal loan at all.?

To help narrow your search down, here are our top recommendations for the best personal loans for different situations, including offers from our partners; they offer low rates, low fees, and flexible repayment terms so you can borrow comfortably.

Best Personal Loans of January 2023

If youre not seeing anything in the results that are a good fit for your needs, consider warranties from these companies:
Company APR Credit Score est. Loan Amount More Details
Best Overall SoFi
4.9
APR With Autopay Discount
7.99% - 23.43%
Recommended Minimum Credit Score
Not Disclosed
This lender does not disclose its minimum credit score requirements.
Loan Amount
$5,000 - $100,000
See Details Check Rates
Best Big Bank U.S. Bank
4.7
APR With Autopay Discount
8.99% - 21.49%
Recommended Minimum Credit Score
660
This lender does not disclose its minimum credit score requirements.
Loan Amount
$1,000 - $50,000
See Details Check Rates
Best With a Co-Borrower PenFed Credit Union
4.7
APR Range
7.74% - 17.99%
Recommended Minimum Credit Score
650
This lender does not disclose its minimum credit score requirements.
Loan Amount
$600 - $50,000
See Details Check Rates
Best for Excellent Credit Regions
4.4
APR With Autopay Discount
7.99% - 29.99%
Recommended Minimum Credit Score
Not Disclosed
This lender does not disclose its minimum credit score requirements.
Loan Amount
$2,000 - $50,000
See Details Check Rates
Best for Payment Flexibility Marcus
4.4
APR With Autopay Discount
6.99% - 24.99%
Recommended Minimum Credit Score
Not Disclosed
This lender does not disclose its minimum credit score requirements.
Loan Amount
$3,500 - $40,000
See Details Check Rates
Best for Small Loans and Bad Credit Upgrade
4.3
APR With Autopay Discount
7.96% - 35.97%
Recommended Minimum Credit Score
560
This lender does not disclose its minimum credit score requirements.
Loan Amount
$1,000 - $50,000
See Details Check Rates
Best for Debt Consolidation Discover
4.2
APR Range
6.99% - 24.99%
Recommended Minimum Credit Score
660
This lender does not disclose its minimum credit score requirements.
Loan Amount
$2,500 - $35,000
See Details Check Rates
Best for Fair Credit First Tech Federal Credit Union
4.1
APR Range
8.99% - 18.00%
Recommended Minimum Credit Score
600
This lender does not disclose its minimum credit score requirements.
Loan Amount
$500 - $50,000
See Details Check Rates
Best for Emergency/Quick Funding Rocket Loans
4
APR With Autopay Discount
8.42% - 29.99%
Recommended Minimum Credit Score
Not Disclosed
This lender does not disclose its minimum credit score requirements.
Loan Amount
$2,000 - $45,000
See Details Check Rates
Best for Military Service Members Navy Federal Credit Union
4
APR Range
7.49% - 18.00%
Recommended Minimum Credit Score
600
This lender does not disclose its minimum credit score requirements.
Loan Amount
$250 - $50,000
See Details Check Rates
Filter (10)

Best Overall : SoFi

Investopedia's Rating
4.9

  • APR Range: 7.99% - 23.43%
  • Time To Receive Loan: 0 days
  • Loan Amount: $5,000 - $100,000
Pros & Cons
Pros
  • Zero fees

  • Same-day funding

  • Unemployment protection

Cons
  • Small loan amounts not available

  • Rates a touch higher than other lenders

  • Doesn’t allow co-signers, only co-borrowers

Why We Chose It

SoFi offers excellent loan rates, even if they’re not the absolute lowest. A more important feature in its favor, however, is its unemployment protection. If you lose your job, SoFi will work with you to put your loan into forbearance while it offers you assistance and resources to find a new job. That might come in handy during a recession, for example.?

SoFi is also one of the few lenders to truly charge zero fees on its loans—not even late fees. (There are other consequences if you pay late, though, like a potential hit to your credit score.) It’s also very fast; nearly 9 out of 10 people who signed their loan agreement before 7 p.m. EST received their funds on the same day they applied, according to 2021 data from the company.?

Putting your personal loan into forbearance can be a helpful way to pause payments if you run into problems. However, interest will still accrue, causing your loan balance to grow rather than shrink.?

Qualifications
  • Available in all states and Washington, D.C.
  • Must have a source of income or a job starting in the next 90 days
  • Must be a U.S. citizen, permanent resident, or non-permanent alien resident?

Best Big Bank : U.S. Bank

Investopedia's Rating
4.7

  • APR Range: 8.99% - 21.49%
  • Time To Receive Loan: 0 days
  • Loan Amount: $1,000 - $50,000
Pros & Cons
Pros
  • Can apply in person

  • Same-day funding available

  • High customer satisfaction ratings

Cons
  • More loan restrictions for non-customers

  • Few borrower assistance plans

  • Branch locations only available in 26 states

Why We Chose It

Big banks have a reputation for being not-quite-so-customer friendly, but that’s not the case with U.S. Bank’s personal loans at least. In addition to low rates on loans, it was rated as the second-best bank for quality customer service in 2022, according to a J.D. Power survey.

U.S. Bank’s personal loans are easiest to apply for if you’re already a customer because you can do it all online. But if you’re not already banking with U.S. Bank, you can still apply for a personal loan. You’ll just need to apply in person, and you’ll be a bit more limited in your loan options (a maximum amount of $25,000, with a term length up to five years). Since U.S. Bank isn’t available in every state across the country, this means some people won’t be able to apply.?

Qualifications
  • You must have a credit score of 660 or higher (higher for non-customers).
  • You must be the age of majority in your state.
  • You must live in a state where U.S. Bank operates.
  • You must have a valid Social Security number.

Best With a Co-Borrower : PenFed Credit Union

Investopedia's Rating
4.7

  • APR Range: 7.74% - 17.99%
  • Time To Receive Loan: 1 day
  • Loan Amount: $600 - $50,000
Pros & Cons
Pros
  • Pre-qualification available

  • Membership open to anyone

  • Smaller loan amounts available

Cons
  • Allows co-borrowers, not co-signers

  • Doesn’t offer any interest rate discounts

  • Must join credit union if approved for a loan

Why We Chose It

If your credit isn’t the best, PenFed is a good option to consider. Not only is it quite tolerant of fair credit scores already, but if you still need help, you can apply with a co-borrower. This is a bit different from a co-signer, who essentially agrees to repay your loan for you if you default. A co-borrower, on the other hand, agrees to be responsible for the loan along with you right from the get-go.?

Some other benefits of PenFed are that you can get pre-qualified before you commit to fully joining the credit union, if you’re not already a member. And membership is open to anyone. Some credit unions such as Navy Federal, for example, don’t have the option to pre-qualify for a loan and have more restricted membership.?

You’ll generally need to open a savings account and keep a small amount in it (usually around $5) to establish your membership with a credit union. It’s not a huge hassle, but it is more work than most other lenders require.

Qualifications
  • You must be a member of the PenFed Credit Union, or join during the application process.
  • You must be the age of majority in your state.
  • You must have a valid Social Security number or individual taxpayer identification number.
  • You must have a verifiable source of income.

Best for Excellent Credit : Regions

Investopedia's Rating
4.4

  • APR Range: 7.99% - 29.99%
  • Time To Receive Loan: 0 days
  • Loan Amount: $2,000 - $50,000
Pros & Cons
Pros
  • Ultra-low rates

  • In-person applications accepted

  • Can use savings or vehicles as collateral

Cons
  • Limits on who can apply online

  • Not available in Western or Northeastern U.S.

  • Smaller loan limits for non-Regions customers

Why We Chose It

If you live in a state where Regions operates and you have excellent credit (usually defined as 800 or higher), consider yourself lucky. This lender offers some of the lowest-cost loans out there for people with excellent credit, although you can use collateral or find a joint applicant if your credit isn’t the best.?

However, there are some limits to be aware of. If you’re not a current Regions customer, you’ll need to call or visit a Regions branch to apply. Only current Regions customers are eligible to apply online, and only if you’re applying as a solo applicant. Anyone with a joint applicant—current customer or not—will need to apply in person.???

Qualifications
  • You must have a valid Social Security number.
  • You must have a verifiable source of income.
  • You must have a valid bank account.
  • If you are a Regions customer, you must provide your online banking credentials or your ATM or debit card numbers.

Regions’ personal loans are only available in the 15 states—primarily in the South, Midwest, and Texas—where Regions operates.

Best for Payment Flexibility : Marcus

Investopedia's Rating
4.4

  • APR Range: 6.99% - 24.99%
  • Time To Receive Loan: 1 day
  • Loan Amount: $3,500 - $40,000
Pros & Cons
Pros
  • Zero fees

  • On-time payment reward

  • Can change your payment due date

Cons
  • Funds can take 1–4 days to arrive

  • Few borrower assistance programs

  • Doesn’t allow co-signers or joint applicants

Why We Chose It

Marcus offers good rates and zero fees (it doesn’t even charge late fees). But what really differentiates Marcus from its competitors is the flexibility it offers you in making your payments.?

If you make all of your payments on time for a year, for example, Marcus will offer an “on-time payment reward” where you essentially get a ticket to skip a payment, interest-free (it will add on an extra month to your repayment, however). In addition, Marcus allows you to reschedule your payment due date up to three times over the life of your loan.

Qualifications
  • Available in all U.S. states and territories
  • Must be a U.S. resident with a Social Security number
  • Must be at least 18 years old (19 in Alabama, 21 in Mississippi and Puerto Rico)

Best for Small Loans and Bad Credit : Upgrade

Investopedia's Rating
4.3

  • APR Range: 7.96% - 35.97%
  • Time To Receive Loan: 1 day
  • Loan Amount: $1,000 - $50,000
Pros & Cons
Pros
  • Relatively low minimum recommended credit score

  • Next-day funding

  • Can change payment due date

  • Discounts for using other Upgrade products

Cons
  • High origination fee

  • Short-term loans not available

  • Not available in Washington, D.C.

Why We Chose It

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 offer smaller-dollar loans), then Upgrade might be your best bet, especially if your credit isn’t the greatest. If you’re open to switching banks, there’s also a lot to say for Upgrade, which offers plentiful rewards and discounts for using its other financial products too.?

The downside is that Upgrade’s loans are a bit on the pricey side, especially if you do have bad credit. Depending on your loan profile, you’ll have to pay an origination fee ranging from 1.85% to 8.99%. We’d also like to see shorter-term loan options offered, such as six months or even just one year.?

Qualifications
  • Recommended credit score of 560 or higher
  • Debt-to-income ratio of 75% or less
  • Have a valid email address and bank account
  • Available in all states except for Washington, D.C.
  • Must be a U.S. citizen, permanent resident, or have a valid visa

Best for Debt Consolidation : Discover

Investopedia's Rating
4.2

  • APR Range: 6.99% - 24.99%
  • Time To Receive Loan: 1 day
  • Loan Amount: $2,500 - $35,000
Pros & Cons
Pros
  • Quick funding

  • 30-day interest-free loan guarantee

  • Can send funds directly to old creditors

Cons
  • Doesn’t offer any rate discounts

  • Doesn’t allow co-signers or joint applicants

  • Can’t use loan to consolidate debt from Discover

Why We Chose It

Discover offers some of the best personal loan rates for debt consolidation (or almost any other purpose, really). If you are consolidating debt, a good feature to look for is a lender who will send the funds directly to your old creditors to pay off your old debt. This saves you an extra step (and the temptation to not use the loan funds for their intended purpose). Discover does offer this ability.?

However, if you’re looking to consolidate any other debt from Discover, such as its popular credit cards, you may need to find another debt consolidation loan. Discover doesn’t allow you to use the funds to consolidate any other Discover debt. In addition, it does offer a nice interest-free money-back guarantee where you can return the loan funds within 30 days if you change your mind, but this doesn’t apply to debt consolidation loans since that money is generally already spent.

Qualifications
  • Minimum recommended credit score of 660.
  • You must be the age of majority in your state.
  • You must be a U.S. citizen or permanent resident.
  • You must have an income of $25,000 or more.

Loan funds cannot be used to repay a secured loan, such as a car loan, or to directly pay off a Discover credit card.

Best for Fair Credit : First Tech Federal Credit Union

Investopedia's Rating
4.1

  • APR Range: 8.99% - 18.00%
  • Time To Receive Loan: 0 days
  • Loan Amount: $500 - $50,000
Pros & Cons
Pros
  • Secured loan options

  • No membership restrictions

  • Debt protection plans available

Cons
  • Doesn’t offer rate discounts

  • Doesn’t offer short-term loans

  • Need to open a separate savings account

Why We Chose It

Credit unions have a reputation for being more willing to work with people who have fair credit (a score from 580–669, according to FICO) than your average lender, and First Tech FCU is no exception. The upper end of its APR range is quite low (18% is the maximum for credit unions), making for an excellent rate option for people who have fair credit. You can also use your stocks or First Tech FCU certificates and savings accounts as collateral for a secured loan, if necessary.?

If you’re worried about being able to make your payments, First Tech FCU also has you covered here too. You can purchase an optional Debtsafe debt protection plan with your loan so that if something happens, you can have some of your payments or even your entire loan canceled entirely.

Qualifications
  • You must be the age of majority in your state
  • Recommended credit score of 600 or higher (or have a creditworthy co-signer)
  • You must be a member of the First Tech FCU

To join First Tech FCU, you must meet one of the below criteria:?

  • You must have family or household member that is a current member of First Tech FCU
  • You must work for one of the credit union’s partner employers?
  • You must work or live in Lane County, Oregon
  • You must belong to the Computer History Museum or the Financial Fitness Association (you can join online; digital memberships start at $15 per year)

Best for Emergency/Quick Funding : Rocket Loans

Investopedia's Rating
4.0

  • APR Range: 8.42% - 29.99%
  • Time To Receive Loan: 0 days
  • Loan Amount: $2,000 - $45,000
Pros & Cons
Pros
  • Same-day funding

  • Able to change due date

  • Rate discount for autopay

Cons
  • High origination fee

  • No co-signers or joint applicants

  • Not available in Iowa, Nevada, and West Virginia

Why We Chose It

If you’ve run into an emergency and need money fast, Rocket Loans is one of the best lenders. If you complete your loan application, receive an approval decision, and sign the final agreement before 1:00 p.m. ET on a regular business day, Rocket Loans will submit an ACH deposit that same day. Depending on your bank’s policies, the money will then show up right away or it could take a few days.

Rocket Loans says its application approvals generally happen in “real-time,” but you may need to provide extra documents in some cases. If you round up a copy of your driver’s license, recent pay stubs, current bank statements, and your most recent tax return in advance, you can speed up the loan approval process in case they do request these documents.

Qualifications
  • Must be a U.S. resident.
  • Must be at least 18 years old.
  • Available in all states except for Iowa, Nevada, and West Virginia.

Best for Military Service Members : Navy Federal Credit Union

Investopedia's Rating
4.0

  • APR Range: 7.49% - 18.00%
  • Time To Receive Loan: 0 days
  • Loan Amount: $250 - $50,000
Pros & Cons
Pros
  • Same-day funding

  • Secured loan options

  • Wide range of loan terms and loan amounts

Cons
  • No option for pre-qualification

  • Restrictive membership criteria

  • Unable to modify payment due date

Why We Chose It

You’ll need to become a Navy Federal Credit Union member before you apply for this loan, and membership is only open to active duty service members, veterans, civilian contractors, and their family members. If you’re able to get past that hurdle, though, there’s a lot to like about these loans.?

NFCU personal loans cover an extremely broad range of options. You can get a small $250 loan to tide you over until payday or take out a big $50,000 lump sum to consolidate your debt or remodel your home, for example. The only downside is there isn’t any pre-qualification option. But if you get all of your loan shopping done within two weeks the credit scoring models will mark those all as one credit inquiry, thereby limiting the damage to your credit score.

Qualifications
  • You must be the age of majority in your state.
  • You must have a verifiable source of income.
  • You must be a member of the credit union.

Not everyone is eligible for Navy Federal Credit Union membership. To join, you must belong to one of the following groups:?

  • Active duty service member
  • U.S. military veteran
  • Family member of a qualifying service member or veteran
  • Department of Defense civilian employees and retirees

Compare the Best Personal Loans of January 2023

Overall Rating Best For
APR Range
Average Origination Fee
Late Fee
Time To Receive Loan
Loan Amount
Latest Repayment
Reset All
SoFi
4.9
Best Overall 7.99% - 23.43% 0.00% $0.00 0 days $5,000 - $100,000 84 months Check Rates
Hide, not for me
U.S. Bank
4.7
Best Big Bank 8.99% - 21.49% 0.00% $29.00 0 days $1,000 - $50,000 84 months Check Rates
Hide, not for me
PenFed Credit Union
4.7
Best With a Co-Borrower 7.74% - 17.99% 0.00% $29.00 1 day $600 - $50,000 60 months Check Rates
Hide, not for me
Regions
4.4
Best for Excellent Credit 7.99% - 29.99% 0.00% 5.00% - $100.00 0 days $2,000 - $50,000 60 months Check Rates
Hide, not for me
Marcus
4.4
Best for Payment Flexibility 6.99% - 24.99% 0.00% $0.00 1 day $3,500 - $40,000 72 months Check Rates
Hide, not for me
Upgrade
4.3
Best for Small Loans and Bad Credit 7.96% - 35.97% 1.85%–8.99% $10.00 1 day $1,000 - $50,000 84 months Check Rates
Hide, not for me
Discover
4.2
Best for Debt Consolidation 6.99% - 24.99% 0.00% $39.00 1 day $2,500 - $35,000 84 months Check Rates
Hide, not for me
First Tech Federal Credit Union
4.1
Best for Fair Credit 8.99% - 18.00% 0.00% $0.00 0 days $500 - $50,000 84 months Check Rates
Hide, not for me
Rocket Loans
4.0
Best for Emergency/Quick Funding 8.42% - 29.99% 1.00% - 7.00% $15.00 0 days $2,000 - $45,000 60 months Check Rates
Hide, not for me
Navy Federal Credit Union
4.0
Best for Military Service Members 7.49% - 18.00% 0.00% $29.00 0 days $250 - $50,000 180 months Check Rates
Hide, not for me
*APR ranges for some companies include a discount for automatic payments or existing bank customers.

Final Verdict

Personal loans are one of the most versatile financial products out there since you can use them for just about anything you want, and you can get one from nearly every lender. SoFi wins out as the best personal loan overall due to its low costs, helpful customer programs, and lightning-quick funding speed.?

If you prefer working with credit unions, PenFed or First Tech is your best bet unless you’re military, in which case we might recommend Navy Federal. Don’t be afraid to shop with big banks either because you might find some surprisingly low-cost options, such as with U.S. Bank.

Guide for Choosing the Best Personal Loans

Best Place to Get a Personal Loan

If you’re looking for a personal loan, some of the best places to get one are banks, credit unions, and online lenders. If you need funds quickly, choose a lender that offers a simple online application and fast funding. Many banks and credit unions allow you to apply online and get funding quickly, but you’ll generally need to have good credit to get approved. If you don’t have good credit, an online lender is usually a better option.??

Should You Apply for a Personal Loan?

If you need funds to cover a large expense or want to consolidate existing debt, then you might consider applying for a personal loan. Personal loans are commonly used by people who need funding for a big expenditure, like paying for a wedding, covering emergency expenses, or making home improvements or repairs. Loan funds can also be used to consolidate higher-rate debt into a lower-cost fixed-rate loan.

Personal loans can be a good option for those who need immediate funding and can afford the monthly payments. However, you’ll pay interest on the loan, so it’s more costly to use loan funds than to cover the same expenses using cash. Even so, the APRs on personal loans are usually lower than the rates you’ll pay on credit card debt. So, if you need to choose between using credit cards or personal loans, the latter is often the better choice.

One of the other benefits of an unsecured personal loan is that you don’t have to pledge any collateral, like your home or car, to get the loan. This can save you money because you don’t have to pay for costs associated with the collateral, such as appraisal fees. Plus, you may be able to get the funds more quickly because there’s no collateral involved. So, if you need funds to make home improvements, like repairing your roof, building a new office, or adding solar, a personal loan can be the way to go.

Comparing Personal Loan Lenders

The most important things to consider when selecting a personal loan lender include the costs and terms of the loan, what it takes to apply, and how quickly you can get approved and funded. As you’re comparing personal loan lenders, pay close attention to these factors:

  • APR and Fees: Personal loan rates and fees are the primary factors to consider before choosing a lender. Rates and fees are factored into the loan’s APR, which measures the annual cost of the loan. The better your credit, the lower the rate you’ll get.
  • Repayment Terms: Shorter repayment terms result in higher payments and usually carry lower interest rates. This means you may reduce your overall borrowing costs by choosing the shortest possible repayment term. However, just make sure you can afford the monthly payments before applying.
  • Application Process: It’s also important to consider the lender’s application process. You might want to get a loan at your local bank or credit union, which can be a great option. However, keep in mind that certain small lenders may not offer automated systems or online applications, making the application process more time-consuming. If you’d prefer to avoid applying in person, choose a lender that offers an online application. 
  • Approval and Funding Speed: The loan’s funding speed is often closely linked to the application process. Lenders that have online applications and automated processes are often able to get you funded more quickly. However, many of these lenders only approve borrowers with good credit. If you have blemishes on your credit, choose a lender with less stringent credit score requirements, like an online lender or a local bank or credit union that can make individual decisions based on your unique circumstances.

How to Get a Personal Loan

Once you’ve decided to get a personal loan, it’s time to get your paperwork in order and ensure your credit is in the best possible shape. Many lenders will start with a pre-qualification process, which involves pulling a soft credit check on you. To pre-qualify, you’ll need to provide some personally identifiable information (such as your Social Security Number and date of birth), income details, the reason you need the funds, the amount you want to borrow, and how long you need to repay the loan.

While pre-qualifying doesn’t guarantee you’ll be approved for a loan, it does let you see the rate you may receive. If you’re quoted for a high rate, you can work on repairing your credit before submitting a full application. Generally, the better your credit, the better the rate you’ll get. 

If the rate is acceptable and you decide to move forward, you’ll then complete a full application. This will involve providing the lender with additional information, such as proof of income and details on your monthly debts. You’ll also undergo a hard credit check as part of the application process.

If you’re approved for the loan, the lender will provide you with details about the loan terms, including the rates, fees, and repayment terms. Pay close attention to this information to understand the details before accepting the loan. If you don’t understand the loan details, speak with a representative to get clarification before proceeding.

As soon as you’ve accepted the loan, the lender will send you the loan funds in the way you specified in your application. This can include directly depositing the funds into your bank account, sending the money to your creditors to pay off existing debt, or even writing you a check.?

You’ll also learn how to manage your loan, such as by logging into an online portal or using a mobile app. This can be helpful, as you’ll understand how to make your monthly payments and where to go if you need help in the future.

What Is a Personal Loan?

A personal loan is a predetermined amount of money given to an individual by a bank or private lender. It is usually unsecured and carries a fixed interest rate. The borrower must agree to the loan rate and terms and make on-time monthly payments until it is fully repaid. A personal loan can be used for several things, including paying off or consolidating debt, covering medical expenses, or making a large purchase.

How Do Personal Loans Work?

Personal loans work by lending a borrower money if they meet certain qualifications set by the lender. The money is paid back over time with interest. The borrower usually makes set monthly payments of principal and interest to repay the loan. A personal loan is often a more affordable option than a credit card because the interest rate is usually lower.

How Much Do Personal Loans Cost?

Some of the fees associated with personal loans are origination fees, prepayment penalties, late fees, and administrative fees. However, not all lenders charge the same fees. It’s important to check with the lender before getting a personal loan. Despite what fees the lender charges, the largest cost is going to be what you’re paying in interest. The average interest rate for a personal loan is 9.09%.

What Are the Pros and Cons of Getting a Personal Loan?

If you're considering a personal loan, it's important to look at the pros and cons.

Pros
:

  • Personal loans usually have lower APRs than credit cards.
  • Your personal loan will be fully repaid over a short period, versus credit cards, which might never be repaid if you just make the minimum monthly payments.
  • Interest rates are fixed on personal loans, meaning your rate will never change.
  • Unsecured personal loans don’t require collateral, making them quicker and easier to get than secured loans such as home equity loans.

Cons:

  • You’ll have to pay interest and fees with a loan, costs you wouldn’t incur if you used cash.
  • Short repayment terms translate into higher monthly payments, so it’s essential to ensure you can afford the monthly payment before getting the loan.
  • If loan interest rates decrease in the future, you’ll be stuck with a higher interest rate until you pay off the loan or refinance it.
  • Since unsecured personal loans don’t require collateral, they may have higher APRs than secured loans, loan amounts can be smaller, and you’ll likely need better credit to qualify.

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. To rate providers, we collected hundreds of data points across more than 40 lenders, including interest rates, fees, loan amounts, and repayment terms, to ensure that our reviews help users make informed decisions for their borrowing needs.

Best-personal-loans-4773300

Getty Images / sakchai vongsasiripat

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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  4. Experian. "Do Multiple Loan Inquiries Affect Your Credit Score?"?

  5. Federal Reserve. "Consumer Credit - G.19."

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