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Debt consolidation
Excellent (720-850)
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Accepts borrowers with bad credit or thin credit histories.
Has a low income requirement.
Fast approval and funding.
Allows secured loans.
Option to change your payment date.
Cons
Origination fee.
No rate discounts.
No joint or co-signed loans.
No direct payment to creditors on debt-consolidation loans.
View details
Qualifications:
Must be a U.S. citizen or permanent resident living in the U.S.
Must be at least 18 years old in most states.
Must have a valid email address and Social Security number.
Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
Must have a personal bank account at a U.S. financial institution with a routing number.
No bankruptcies in the last 12 months.
No current delinquent accounts on your credit reports.
Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
Minimum credit score: None.
Minimum annual income: $12,000.
Disclaimer
The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved. Most borrowers are instantly approved. The majority of unsecured loan borrowers on the Upstart marketplace are able to receive an instant decision upon submitting a completed application, without providing additional supporting documents, however final approval is conditioned upon passing the hard credit inquiry. Loan processing may be subject to longer wait times if additional documentation is required for review. If you accept your loan by 5pm EST (not including weekends or holidays), your funds will be sent on the next business day.
Direct payment to creditors with debt consolidation loans.
Wide variety of repayment term options.
Available nationwide.
Cons
No rate discount.
Late fee.
No co-sign or joint loan option.
View details
Qualifications:
Minimum credit score: 660.
Minimum annual household income: $25,000. Income can come from employment, retirement, alimony, child support, Social Security payments and disability benefits.
Must provide a valid U.S. address and email address.
Must be 18 years old with a valid Social Security number.
Disclaimer
This is not a commitment to lend from Discover Personal Loans. Your APR will be between 7.99% and 24.99% based on creditworthiness at time of application for loan terms of 36-84 months. For example, if you get approved for a $15,000 loan at 12.99% APR for a term of 72 months, you'll pay just $301 per month. You must have a minimum individual or household annual income of $25,000, be over 18 years of age, and have a valid US SSN to be considered for a Discover personal loan. Loan approval is subject to confirmation that your income, debt-to-income ratio, credit history and application information meet all requirements. Our lowest rates are available to consumers with the best credit. Many factors are used to determine your rate, such as your credit history, application information and the term you select. State restrictions may apply. A Discover personal loan is intended for personal use and cannot be used to pay for post-secondary education, to pay off a secured loan, or to directly pay off a Discover credit card. If your application is approved, we will send funds after you accept the loan. Your bank or creditor may take more days to process the funds. Discover makes loans without regard to race, color, religion, national origin, sex, disability, or familial status.
Best for Personal loans for good to excellent credit
Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
Disclaimer
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Direct payment to creditors with debt consolidation loans.
Long repayment terms on home improvement loans.
Cons
Origination fee.
No option to choose your payment date.
View details
Qualifications:
Minimum credit score: 580.
Minimum number of accounts on credit history: One account.
Maximum debt-to-income ratio: 75%, including mortgage payments.
Minimum length of credit history: Two years.
Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
Disclaimer
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 9.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.
Direct payment to creditors with debt consolidation loans.
Fast funding.
Free credit score monitoring.
Cons
Origination fee.
No rate discounts.
No mobile app to manage loan.
View details
Qualifications:
Minimum credit score: 600.
Maximum debt-to-income ratio: 70% including a mortgage.
Minimum credit history: 3 years and 1 account.
Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
Must be a U.S. citizen or permanent resident and at least 18 years of age.
Disclaimer
*Trustpilot TrustScore as of June 2024. Best Egg loans are personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, N.A., Member FDIC, Equal Housing Lender. The Best Egg Credit Card is issued exclusively by First Bank & Trust, Member FDIC, Brookings SD pursuant to a license by Visa International. Visa is a registered trademark, and the Visa logo design is a trademark of Visa International Incorporated. “Best Egg” is a trademark of Best Egg Technologies, LLC. Offers may be sent pursuant to a joint marketing agreement between Cross River Bank, Blue Ridge Bank, N.A. and/or First Bank & Trust and Marlette Marketing, LLC, a subsidiary of Best Egg, Inc. The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500; Ohio, $5,001; and Georgia, $3,001. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $100,000. Annual Percentage Rates (APRs) range from 6.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–9.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. For example: a 5‐year $10,000 loan with 9.99% APR has 60 scheduled monthly payments of $201.81, and a 3‐year $5,000 loan with 6.99% APR has 36 scheduled monthly payments of $152.83. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Best Egg products are not available if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories. TO REPORT A PROBLEM OR COMPLAINT WITH THIS LENDER, YOU MAY WRITE OR CALL– Operations Manager, Email: [email protected], Address: P.O. Box 42912, Philadelphia, PA 19101, Phone: 1-855-282-6353. This lender is licensed and regulated by the New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, 2550 Cerrillos Road, Santa Fe, New Mexico 87504. To report any unresolved problems or complaints, contact the division by telephone at (505) 476-4885 or visit the website https://www.rld.nm.gov/financial-institutions/
Direct payment to creditors with debt consolidation loans.
Option to pre-qualify with a soft credit check.
Option to change your payment date.
Cons
Origination fee.
View details
Qualifications:
Minimum credit score: 600; average borrower score is above 700.
Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
Maximum DTI: 40%.
Minimum credit history: 36 months and two accounts.
Disclaimer
Between July 1, 2024 to September 30, 2024, Personal Loans issued by LendingClub Bank were funded within 22 hours after loan approval, on average. 56% of Personal Loans issued by LendingClub Bank during the same period were funded within 24 hours after loan approval. Loan approval, and the time it takes to issue a credit decision, are not guaranteed and individual results vary based on creditworthiness and other factors, including but not limited to investor demand. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,008 for a term of 36 months, with an interest rate of 11.74% and a 6.00% origination fee of $1,140 for an APR of 16.09%. In this example, the borrower will receive $17,868 and will make 36 monthly payments of $629. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states. For Personal Loans, APR ranges from 8.91% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of Oct 10, 2024 and are subject to change without notice. Unless otherwise specified, loans are made by LendingClub Bank, N.A., Member FDIC (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. LendingClub Bank is not an affiliate of NerdWallet and is not responsible for the products and services provided by NerdWallet. Loans are subject to credit approval and sufficient investor commitment. If a credit union is selected to invest in the loan, credit union membership will be required. Certain information that LendingClub Bank subsequently obtains as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that you request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com. “LendingClub” is a trademark of LendingClub Bank.
Minimum credit score: 550. Avant uses FICO score version 8.0 and VantageScore version 3.0 from TransUnion.
Minimum monthly net income: $1,200. This lender accepts income from employment alimony, retirement, child support, Social Security payments or disability benefits.
Must be a resident of a state where Avant’s loans are available.
Must provide a Social Security number.
Must have a personal bank account in your name.
No active bankruptcies.
Disclaimer
Personal loan funds are generally deposited via ACH for delivery next business day if approved by 4:30 pm CT Monday-Friday. Loan amounts range from $2,000 to $35,000. APR ranges from 9.95% to 35.99%. Loan lengths range from 24 to 60 months. Administration fee up to 9.99%. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state. Administration fee is deducted from the loan proceeds and paid to the Lender. Any administration fee of 5% or less of the initial loan amount is not refundable. Administration fee amount in excess of 5% of the initial loan amount is refundable on a prorated basis over the remaining term of the loan when and if the loan is paid in full prior to its original maturity date. A partial prepayment does not trigger a refund of any administration fee amount. Borrower recognizes that the Administration fee is deemed part of the loan principal and is subject to the accrual of interest. Example: A $5,700 loan with an administration fee of 9.99% and an amount financed of $5,130.57, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $217.66. New Mexico consumer brochure (hyper linked to - https://assets.ctfassets.net/vrxttq978is8/1eS8eJhH54ycK7fhPa7hUk/bd189960ce122598d8c7551d2fb96fad/NM_Consumer_Information_Brochure_and_Loan_Rate_and_Fee_Disclosure.pdf) for common terms and definitions and regulations around rates and fees. Avant branded credit products are issued by WebBank.
Offers direct payment to creditors with debt consolidation loans.
Fast funding.
Offers multiple rate discounts.
Offers free credit score access.
Cons
Charges origination fee.
Borrowers can choose from only two repayment term options.
View details
Qualifications:
Minimum credit score: 580.
Minimum number of accounts on credit history: 1 account.
Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
Minimum length of credit history: 2 years.
Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
Disclaimer
Personal loans made through Universal Credit feature Annual Percentage Rates (APRs) of 11.69%-35.99%. All personal loans have a 5.25% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 36 to 60 months. For example, if you receive a $10,000 loan with a 36-month term and a 28.47% APR (which includes a 22.99% yearly interest rate and a 7% one-time origination fee), you would receive $9,300 in your account and would have a required monthly payment of $387.05. Over the life of the loan, your payments would total $13,933.62. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Universal Credit's bank partners. Information on Universal Credit's bank partners can be found at Universal Credit | Bank Partners. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within one (1) business day. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.
Direct payment to creditors on debt consolidation loans.
Seven-day cancellation policy.
Cons
Rates are high compared to other lenders.
Charges origination fee.
No rate discounts.
Limited loan amounts.
Pre-qualification doesn’t show APR.
View details
Qualifications:
Must have a taxpayer identification number.
Must be 18 or older in most states.
Minimum credit score: None.
Minimum credit history: None; this lender prefers some minimal credit history.
Minimum number of accounts on credit report: 1 active account.
Minimum income: None, but borrowers must have sufficient disposable income to make the monthly loan payment. This lender accepts income from employment, alimony, retirement, child support and Social Security payments.
Disclaimer
You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant’s state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral. Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant’s name with valid insurance. APRs are generally higher on loans not secured by a vehicle. Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07. OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount. For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees. Current OneMain Customers: Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options. Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes. Time to Fund Loans: Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.
NerdWallet's guide to choosing a personal loan
An unsecured personal loan can help you cover a large expense, pay for an emergency car or home repair or consolidate your debt. You can use funds from a personal loan for almost any purpose.
Each lender offers unique features and benefits, and some work better for certain borrowers and expenses than others. NerdWallet's personal loan guide will help you compare different lenders and find a loan that fits your budget and financial goals.
Why trust NerdWallet?
NerdWallet has rated and reviewed personal loans from more than 35 financial institutions. We collect over 50 data points from each lender and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender's pre-qualification flow and follow up with company representatives. We do not receive compensation for our ratings. Read more about our personal loan star ratings methodology and our editorial guidelines.
A personal loan is money you borrow from a bank, credit union or online lender. Loan amounts are from $1,000 to $100,000, and they’re typically repaid over a term of two to seven years. To qualify, lenders look at factors including your credit score, credit history and debt-to-income ratio.
You can use personal loan funds for nearly any reason. Ideally, getting one positively impacts your overall financial health by helping you pay off debt faster, for example, or adding to the value of your home. Here are some top ways consumers use personal loans:
Debt consolidation: Use a debt consolidation loan to roll your debts into one monthly payment, potentially reducing the interest you pay and helping you pay it off faster.
Home improvement: Need to repair your roof, add a home office or install a swimming pool? Use a personal loan to finance home improvements.
Large expenses: You can use a personal loan to buy a boat, RV or other items with large price tags.
Life events: It can be expensive to finance your wedding or a vacation with a personal loan, but having one lump sum of money can help you stick to a budget.
Emergencies: Because personal loans are funded quickly, they can help cover an urgent home or car repair. Compare a loan with other low- or no-interest options.
Medical bills: A personal loan can help pay for medical or dental procedures, covering costs associated with out-of-network charges, high deductibles or specialty care.
Top personal loans for your next money move
Compare the best personal loans for anything from debt consolidation to home improvement.
Online lenders offer a convenient way to find and compare personal loans. Some online lenders offer low rates to good- and excellent-credit borrowers, while others can approve borrowers with poor or limited credit.
Banks
Some national banks, including Wells Fargo, U.S. Bank and Discover, offer personal loans with competitive rates and in-person support. Banks may offer rate discounts if you’re already a customer, but they typically have tougher eligibility requirements than online lenders.
Credit unions
Credit union loans may carry lower rates than banks and online lenders, especially for those with fair or bad credit, and loan officers may be more willing to consider your total financial picture.
Personal loan annual percentage rates typically range from about 6% to 36%.
Lenders assess primarily your financial and credit information to determine your rate, but may consider other factors like whether you own your home, your education level and your work history. Consumer advocates say 36% is the highest annual percentage rate a loan can have and still be considered affordable.
Borrowers with good to excellent credit scores (690 and higher) typically get the lowest interest rates and can borrow larger amounts. They also have the most options when shopping for a loan.
Those with fair to bad credit (scores below 690) may have to look a little harder and pay a higher rate for a personal loan. Having steady income, low debt, a long credit history and a record of on-time payments will improve your chances of approval.
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from Oct. 1, 2024, through Oct. 31, 2024. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.
How does the economy affect personal loan rates?
Macroeconomic conditions guide personal loan lenders to determine their rates. For example, changes in the wider economy (like high inflation and Federal Funds rate increases) prompted lenders to tighten their underwriting standards in 2022 and 2023.
What to know about the Fed rate in 2024
After keeping the Fed rate steady for more than a year, the committee that sets the rate lowered it half a point in September 2024 and another quarter point in November.
If you have a personal loan, a lower Fed rate won’t affect your monthly payments because personal loan rates are fixed for the full repayment term.
If you’re considering a personal loan, a lower Fed rate could mean a chance at a modestly better rate later in the year.
Regardless of economic changes, the biggest factors that determine your personal loan interest rate are your creditworthiness, income and outstanding debts.
Expert take: Can you get a low personal loan rate in 2024?
Though average personal loan rates aren’t as low as they were in 2021, borrowers can still get low personal loan rates in 2024. The key is to be able to show strong credit, solid income and keep your other debts low. You also don’t need to accept the first loan you’re offered. It might feel like lenders have the upper hand when you’re applying, but consumers can pre-qualify and rate shop with multiple lenders before they commit to one offer.
Use this calculator to estimate monthly payments for a personal loan, based on the loan amount, rate and term. See how different rates and terms affect the monthly payment as well as the payoff date.
Rates, terms, funding time and other features vary, so take the time to compare loans from multiple lenders. Here are the most important considerations:
APR
A loan’s annual percentage rate represents the interest rate plus any fees the lender charges. When comparing offers, APR tells you which is the least expensive overall. It also provides an apples-to-apples comparison across financial products, so you can compare the cost of a personal loan to a credit card, for example.
Monthly payment
Even if a loan has a low APR, you need room in your budget to repay it each month. Your monthly payment is determined by the loan amount, interest rate and repayment term. A shorter term may mean higher monthly payments, but you’ll pay less in interest over the life of the loan. Use the personal loan calculator above to see how the rate and repayment terms affect the monthly payment.
Fees
The most common fees on personal loans are late and origination fees. An origination fee can be 1% to 10% of your loan amount, and lenders typically deduct the fee before sending you the funds. If your lender charges this fee, make sure the final loan amount will be enough to cover your expenses.
Funding time
Many lenders can fund a loan within a day or two of approval, but some take up to a week to send you the money. If you need cash fast, compare quick personal loans to find a lender that offers same- or next-day funding.
Some lenders let you choose your initial payment date and allow multiple changes during repayment, while others require you to pay on the same date each month for the life of the loan. Since you could be repaying this loan for years, consider whether you’ll want the option to change your due date, skip a payment or pause payments during a hardship.
Other consumer-friendly features
If you have a couple of competitive offers, consider other personal loan features to break the tie. Some lenders offer rate discounts, no fees, extra long repayment terms on home improvement loans or direct fund transfers to other creditors on debt consolidation loans.
Review your credit report for errors or accounts that may be weighing on your score and address them before applying. For example, a past-due account could be a reason a lender denies your application. You might decide to postpone getting a loan and instead take steps to build your credit to get a lower rate or a larger loan.
2. Review your debt-to-income ratio
A low DTI shows lenders that you have ample income for new loan payments. If yours is high (usually above 40%), pay down debt before you apply to improve your chance of qualifying. Make sure to include all sources of income on an application.
3. Compare your options
Interest rates on personal loans for excellent credit start below 10% APR, but if you can qualify for a 0% interest credit card — and pay off the balance within the promotional period — then you may be better off with the credit card. Here's how to compare personal loans and credit cards.
4. Consider a co-applicant
Borrowers with blemished credit can add a co-signer or co-borrower with better credit and higher income for a better chance of qualifying or a potentially lower rate. Both co-signers and co-borrowers are responsible for repaying the debt if the primary borrower misses payments.
5. Weigh secured personal loans
Using a car, savings account or other asset as collateral may get you a lower rate. The risk is losing your asset if you default on a secured personal loan.
6. Assess your overall financial well-being
Personal loans work best as part of a balanced financial plan. Borrow money to consolidate debt if it means you’ll get out of debt more quickly. But don’t borrow if it only adds financial strain. If your current debt is overwhelming, investigate your debt-relief options.
Calculate your payments. Review your budget to see how much room you have for monthly loan payments. Then, use a personal loan calculator to see what loan amount, rate and repayment term will get you affordable monthly payments.
Pre-qualify and compare offers. Most online lenders allow you to pre-qualify without affecting your credit score. Check your rate with multiple lenders to find the best offer. If you have good credit and an existing banking relationship, take a pre-qualified loan offer to your bank and ask if they’ll beat it. Once you have multiple loan offers in hand, compare the loan features and fine print, including total costs and any penalties.
Gather documents. Most personal loan applications require documents, including W-2s, pay stubs or bank statements to prove your income. You’ll also need a government-issued ID such as a driver’s license or passport and your Social Security number. Gather these documents before you apply to speed up the process.
Apply. The final step is to submit your personal loan application. Applying involves a hard credit check that can temporarily lower your credit score. Depending on the lender, you should receive your funds within a few days.
Shop for personal loans based on your credit
Compare the best personal loans for excellent, good, fair, bad and no credit.
Even before you receive your loan, make a plan to pay it off, ensuring you can manage on-time monthly payments for the life of the loan — whether that's two or seven years. Missing even one loan payment can hurt your credit score, and defaulting on the loan can mean late fees and collections calls.
If you face a financial setback while paying off your loan, reach out to your lender and ask about a hardship option. Some lenders may allow you to defer loan payments for a specified time.
Personal loans come in a lump sum and are repaid, with interest, in equal monthly installments over a term that’s usually a year or longer. Personal loans have fixed interest rates, so your monthly payment never changes.
To approve you for a personal loan, lenders consider your creditworthiness and financial information like your income and outstanding debts.
Which banks offer personal loans?
Large national banks, including Wells Fargo, U.S. Bank, Citi and Discover offer personal loans. Local banks and regional banks like TD Bank also offer personal loans. Major banks that don’t offer personal loans include Chase, Capital One and Bank of America.
How long does it take to get a personal loan?
From application to funding, it can take a week or less to get a personal loan. Applications can take minutes if you have the correct documents when you apply, and many lenders can approve an application the same day. Once approved, personal loans can take a day to a week to be funded.
How does a personal loan affect your credit score?
When you get a personal loan, a lender will pull your credit and cause your credit score to drop by a few points. The biggest impact to your score happens during repayment: On-time payments help build credit, while missed payments hurt your score.
NerdWallet writers and editors conduct an annual comprehensive fact check and update of our lender reviews, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable.
DisclaimersAnnual Percentage Rates (APR), loan term and monthly payments are estimated based on analysis of information provided by you, data provided by lenders, and publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers' credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term, and credit history. All loans are subject to credit review and approval.
