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Personal loans allow you to get cash upfront for major expenses, such as home renovations or debt consolidation. But some lenders charge origination fees, and those fees can be as much as 10% of your loan amount.?
However, some lenders skip origination fees for borrowers with good to excellent credit. We identified the best personal loans with no origination fees based on their rates, repayment terms, and eligibility.
Best Personal Loans With No Origination Fees of 2023
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- Best Overall: SoFi
- Best for Low Interest Rates: LightStream
- Best for Excellent Credit: PenFed Credit Union
- Best for Military Members: Navy Federal Credit Union
- Best Big Bank: U.S. Bank
- Best Credit Union: Patelco Credit Union
- Best for American Express Customers: American Express
- For Citibank Customers: Citibank
| Company | APR | Credit Score est. | Loan Amount | More Details | |
|---|---|---|---|---|---|
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Best Overall : SoFi
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- APR Range: 8.99% - 25.81%
- Loan Amount: $5,000 - $100,000
- Loan Terms: 24 months - 84 months
SoFi is our top choice for personal loan lenders with no origination fees. Through SoFi, you can borrow up to $100,000 and have as long as seven years to repay the loan.
Depending on your loan amount, you could receive your loan funds as soon as the same day you apply. Plus, SoFi has other benefits, such as autopay discounts and unemployment protection that allows you to postpone payments while you search for a new job.?
SoFi’s loan minimum is higher than that of other lenders, so those looking for smaller loans may be required to borrow more than they need. And although SoFi doesn't disclose its minimum credit score requirements, borrowers generally have very good to excellent credit. If your credit score is too low, you may not qualify for a loan.
Funding as soon as the same day
Autopay discount
Unemployment protection
High loan minimum
Longer processing times for large loans
Good credit required
To qualify for a personal loan from SoFi, you must meet the following requirements:
- Be the age of majority in your state
- Be a U.S. citizen or permanent resident
- Be employed or have sufficient income from other sources
SoFi doesn’t disclose its income or credit score requirements, but you’ll typically need good to excellent credit to qualify for a loan. According to SoFi’s annual report, the weighted average FICO score for approved borrowers was 752 in 2022.
Best for Low Interest Rates : LightStream
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- APR Range: 7.49% - 25.49%
- Loan Amount: $5,000 - $100,000
- Loan Terms: 24 months - 144 months
For borrowers with very good to excellent credit—meaning a score of 740 to 850—LightStream offers the lowest rates on personal loans. Its rates vary by loan use. Loans used to purchase cars may have rates as low as 7.49%, while other uses like debt consolidation or home renovations have rates as low as 8.49%.?
LightStream offers longer loan terms than many lenders, doesn’t charge late fees, and you can receive loan funds as soon as the same day you apply.?
LightStream limits its loans to those with strong credit histories, so many people won’t qualify. And it has a higher loan minimum than some other lenders, so it may not be a good fit if you need a smaller amount of cash.?
Some lenders, including LightStream, offer extended loan terms. While a longer term will give you a more affordable monthly payment, you’ll pay more overall due to interest. Use our personal loan calculator to see how much you’ll repay over time with different loan terms.
Low rates
No late fees
Same-day funding
Higher loan minimum
Rates and terms vary by loan use
Excellent credit required
To qualify for a loan from LightStream, you must meet the following requirements:?
- Be the age of majority in your state
- Bbe a U.S. citizen or permanent resident
- Have a verifiable source of income
- Have very good to excellent credit
Best for Excellent Credit : PenFed Credit Union
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- APR Range: 7.99% - 17.99%
- Loan Amount: $600 - $50,000
- Loan Terms: 12 months - 60 months
Credit unions are not-for-profit organizations, so they often offer lower fees and better rates than other lenders. PenFed is no exception. You can borrow $600 to $50,000 and, if you have very good to excellent credit, you may qualify for a loan with better-than-average rates.?
PenFed also allows borrowers to apply with co-borrowers, so you could still qualify for a loan without origination fees even if your credit is less-than-perfect.?
Although some lenders offer loan disbursement as soon as the same day you apply, PenFed’s loans can take a few days to process. You don’t have to be a member to apply, but you will need to be a member to accept the loan. Membership is open to the public, but you will need to open a savings account with at least $5 first.
Low loan minimum
Co-borrowers permitted
Lower-than-average rates
Longer waits for loan funding
Shorter term maximum
To qualify for a PenFed loan, you or your co-borrower must meet the following requirements:?
- You must be the age of majority in your state
- You must have a verifiable source of income
- Good to excellent credit is recommended
- PenFed’s loans are available nationwide?
Most personal loans without origination fees require borrowers to have good to excellent credit. To qualify, your score will likely need to be between 670 and 850, or you may need a co-borrower or co-signer.
Best for Military Members : Navy Federal Credit Union
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- APR Range: 8.99% - 18.00%
- Loan Amount: $250 - $50,000
- Loan Terms: 6 months - 180 months
If you are an active-duty service member or veteran—or are the spouse or child of one—you may qualify for a personal loan from Navy Federal Credit Union. Navy Federal offers competitive interest rates and a broad range of loan amounts.?
Depending on how you intend to use the loan, you may be able to choose a longer loan term than other lenders offer. For example, Navy Federal personal loans used for home improvements can have terms as long as 15 years, giving you a much more manageable monthly payment for large projects.
Not everyone will qualify for a Navy Federal loan. You must be a qualifying member of the credit union. And there are loan minimums required to take advantage of the longer loan terms.?
Long repayment terms for some loans
Range of loan amounts
Secured loan options available
No pre-qualification option
Loan minimums apply for some loan terms
To qualify for a Navy Federal Credit Union personal loan, you must meet the following requirements:
- Be the age of majority in your state
- Be a U.S. citizen or permanent resident
- Be a qualifying member of Navy Federal Credit Union. Membership is limited to U.S. service members, veterans, Department of Defense civilian personnel, and family members of those groups.
Best Big Bank : U.S. Bank
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- APR Range: 8.24% - 24.99%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 12 months - 84 months
Although U.S. Bank operates branches in only 26 states, it's one of the largest banks in the country based on consolidated assets. And if you're an existing customer with a U.S. Bank checking or savings account, there are distinct benefits to taking out a personal loan through the bank.?
Existing customers have higher loan maximums than non-customers, and they can have up to seven years to repay the loan. You can apply online and, if approved, you can receive the loan funds within a few hours. Current customers in a financial bind can also take advantage of U.S. Bank's Simple Loan program to get small loans of $100 to $1,000 within minutes.
Those who are new to the bank will have a significantly lower loan maximum of $25,000 and will have up to five years to repay their loan. And it can take longer to process and disburse your loan; expect it to take one to four business days before your loan funds are disbursed.?
Same day disbursement
Small emergency loans available for checking customers
Pre-qualification tool?
Not available in all states
Low loan maximum for new customers
Shorter loan terms for new customers
To qualify for a U.S. Bank personal loan, you must meet these requirements:?
- Be the age of majority for your state
- Live in one of the states where the loan you want is available
- Have a valid Social Security number
Best Credit Union : Patelco Credit Union
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- APR Range: 8.95% - 17.90%
- Loan Amount: $300 - $100,000
- Loan Terms: 6 months - 84 months
Credit unions often offer lower rates and fees than banks, and Patelco Credit Union is an excellent example. Its personal loans have competitive rates with no origination fees, and you can borrow as little as $300 or as much as $100,000.?
Another standout perk is Patelco's LevelUp program. When you make 12 consecutive monthly payments on time, Patelco will give an interest rate discount up to 0.50%. You can receive the discount up to three times, reducing your interest rate by up to 1.50% over the life of your loan.?
Credit union membership is required to qualify for a personal loan, but Patelco's membership criteria are fairly broad.
Rate discounts for on-time payments
Broad range of loan options
Secured and credit-builder loans available
Only available to credit union members
Lowest rates apply to existing customers
Borrowers must meet the following requirements to qualify for a loan from Patelco Credit Union:?
- Be at least 18 years old
- Be a member of the credit union
Credit union membership is open to those who live in certain cities in California or who are employed by a Patelco sponsor company. But if you don't meet those requirements, you can qualify for Patelco membership by becoming a member of the Financial Fitness Association (FFA). Patelco will even pay your FFA membership for the first year, but you must visit a Patelco branch or call the credit union's membership team to take advantage of this perk.
Best for American Express Customers : American Express
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- APR Range: 4.98% - 18.97%
- Loan Amount: $3,500 - $40,000
- Loan Terms: 12 months - 60 months
If you are an American Express cardholder and need a lump sum of cash for home improvements or to consolidate debt, an Amex personal loan can be an excellent solution. In fact, American Express was the top-ranked lender in J.D. Power's 2023 U.S. Consumer Lending Satisfaction Study.?
Existing cardholders may be pre-approved for a loan with competitive rates, and they can borrow up to $40,000 without having to undergo a hard credit inquiry. There's no impact on your credit when you apply; the only way the loan affects your credit is if you're approved and accept the loan.?
Although these loans can be appealing, not everyone is eligible. Only existing Amex cardholders who receive pre-approval offers can take out a loan.?
There are also some restrictions on loan use. Although you can use the loan funds to consolidate debt, you can't use the loan, for example, to buy real estate, securities, or a vehicle. And loans cannot be used to pay down balances on an American Express credit card.?
No hard credit check
Top-ranked for customer satisfaction
Competitive rates
Must be an existing cardholder
Cannot consolidate Amex card debt
To qualify for an Amex personal loan, you must meet these requirements:?
- Be an existing American Express cardholder
- Be at least 18
- Be a U.S. citizen or permanent resident
For Citibank Customers : Citibank
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- APR Range: 10.49% - 19.49%
- Loan Amount: $2,000 - $50,000
- Loan Terms: 12 months - 60 months
If you're an existing customer with a Citi checking or savings account and are approved for a personal loan, Citi will disburse the funds to your account as soon as the same day you apply.?
The application process is quick and easy for existing customers. Citi uses your account information to pre-approve you for a loan.?
However, Citi has a loan maximum of just $30,000, which is lower than many other lenders offer, and it doesn't allow co-applicants or co-signers. You'll have to qualify for a loan solely based on your own information, and you'll typically need good to excellent credit.?
Although Citi doesn't charge late fees, be aware that there is a significant penalty for late payments. If you default on your loan, Citi will raise your APR by as much as 2.00%.?
No late fees
Same-day funding available
0.5% autopay discount
Low loan maximum
Longer disbursement times for non-customers
Co-applicants not permitted
- You must be the age of majority in your state
- You must meet Citibank’s credit requirements
Compare the Best Personal Loans With No Origination Fees of 2023
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The Bottom Line
Origination fees are common with personal loans, but if you have very good to excellent credit, you may be able to avoid them.?
When it comes to the best personal loans with no origination fees, SoFi is our top choice because of the available loan amounts, loan terms, and added benefits. But for those who want to avoid hard credit checks, existing American Express or Citibank customers can get quick access to cash by taking out a personal loan from those lenders.
Guide to Choosing the Best Personal Loans With No Origination Fees
What Is an Origination Fee?
An origination fee is a fee that lenders charge to cover the cost of their administrative expenses and underwriting process. It's an upfront fee that the lender charges at the time the loan is disbursed.
How Much Are Loan Origination Fees?
Origination fees vary by loan lender. Depending on the lender and your credit profile, origination fees often range from 0% to 10% of the loan amount.
APR the Biggest Cost Worry for Borrowers
In Investopedia’s 2023 Personal Loan Borrower Survey, 78% of borrowers said APR is their chief cost concern, with 10% citing origination fees.
Why Do Lenders Charge Origination Fees?
Some lenders charge origination fees as a way to offset the cost of loan underwriting, processing, and disbursing funds. Lenders charge origination fees at the time the loan is disbursed, and they are typically deducted from the loan total. For example, if you took out a $10,000 loan with a 10% origination fee, the fee would be $1,000. That number is deducted from the loan amount before its disbursement, so you’d actually receive just $9,000 in loan funds.?
How to Avoid Origination Fees
Many personal loan companies charge origination fees. To avoid them, follow these tips:
- Boost your credit: Lenders that don’t charge origination fees tend to have relatively high credit score requirements. If your credit score is below the very good or excellent range, focus on improving your credit before taking out a loan. Make all of your payments on time and pay down existing balances to increase your credit score.
- Shop around: Although origination fees are common, not all lenders charge them. Shop around and pre-qualify to compare rates and fees for multiple lenders until you find one with the lowest overall cost.
- Consider credit unions: Credit unions are not-for-profit organizations, so they tend to have reduced fees and lower rates than banks and other financial institutions. Joining a credit union may allow you to get a personal loan without origination fees.
- Add a co-signer: If you don’t qualify for a personal loan without an origination fee on your own, consider adding a co-signer to your application. If your co-signer has very good or excellent credit and a steady source of income, you could qualify for a loan with no origination fees.
How to Qualify For and Apply For a No-Origination Fee Personal Loan
To apply for a personal loan without origination fees, follow these steps:
- Review your credit: Lenders without origination fees typically want borrowers with high credit scores. Check your credit report and work on improving your credit so you have a better chance of qualifying for a loan.?
- Compare rates: Rates vary between lenders, so request quotes from several companies to find the best deal. Many lenders have pre-qualification tools so you can check rates without affecting your credit score.?
- Fill out the application: Most lenders allow you to apply online. You’ll need to provide your personal information, income, and employment details.?
- Await the lender’s decision: While some lenders will send you a decision within minutes, others can take longer. If approved, the lender will send you a loan agreement to review and sign before disbursing your loan funds.?
- Wait for loan disbursement: Once the agreement is signed, the lender will process and disburse your loan. Depending on the lender and the amount you borrowed, it may take a few days to receive your money.?
Other Personal Loans Fees and Charges
Other common personal loan fees include:
- Late fees: If you miss your payment due date, the lender may charge you a late fee. Depending on the lender, the fee may be a flat amount or a percentage of the missed payment.
- Payment processing: Some lenders charge additional fees if you don’t use automatic payments; if you pay via check or wire transfer, there may be a payment processing fee.?
- Prepayment penalty: Some lenders will charge a fee if you pay off your loan early.
Other Factors to Consider When Shopping for Personal Loans
When researching loan options, consider these factors:?
- Other fees: Besides origination fees, there are other fees to be aware of before taking out a loan. For example, some lenders charge late fees, returned payment fees, or prepayment penalties.?
- Loan amounts: Some lenders have relatively high loan minimums, such as $5,000. If you need less money, look for lenders like PenFed that have minimum amounts as low as $600.?
- Repayment terms: Most personal loans have loan terms between one and five years. But there are some lenders, such as LightStream and Navy Federal Credit Union, with longer options that can give you a more manageable monthly payment.?
- Ability to add a co-signer: Some lenders allow you to add a co-signer to your application, improving your chances of qualifying for a loan and getting a lower interest rate.?
- APRs: The loan’s APR affects how much interest accrues on your debt. With the best personal loans, rates may range from about 5.99% to 35.99%, so it pays to shop around.?
Frequently Asked Questions
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Do All Personal Loans Have Origination Fees?
Not all personal loan lenders charge origination fees. Several—such as SoFi and LightStream—have no origination fees.
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Are Interest Rates Higher With Origination Fees?
Personal loan lenders that charge origination fees tend to cater to borrowers with poor or fair credit, or those with limited credit histories, so their interest rates may be higher. Loans that don’t charge origination fees are typically for borrowers with very good to excellent credit, so they usually have lower interest rates as well.
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When Do You Pay an Origination Fee?
Personal loan lenders deduct the origination fee from the loan amount at the time they disburse the loan. So you pay the origination fee before you receive the funds.
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What’s a Good Interest Rate for a Personal Loan With No Origination Fees?
If you have good to excellent credit, it's possible to find a personal loan without origination fees with an APR in the single digits. For example, you may find a personal loan with an interest rate of 5.99%.
Methodology
To evaluate and rank personal loan providers we collected hundreds of data points across 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more. To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted. We grouped those factors into four broad areas:
- Loan costs (advertised APR, fees, and six other factors): 29.25%
- Loan terms (loan amount, repayment term, and three other factors): 22.25%
- Borrowing requirements (credit score, membership requirement, and six other factors): 28.5%
- Additional features (online application, pre-qualification, and eight other factors): 20%
Learn more about how we evaluated personal loans in our complete methodology.
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