- Best Personal Loans of 2024
- Best for Excellent Credit
- Best for Customer Support
- Best for Small Loan Amounts
- Best for Fair Credit
- Best for Low Credit
- Best for Limited Credit History
- Best for Flexible Terms
- Find the Best Personal Loans for Your Unique Needs
- FAQs
- Why You Should Trust Us
- What Determines the 'Best' Personal Loan?
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Personal loans are excellent options for people in need of cash to cover a wide range expenses like medical bills, home improvement projects, weddings, startup costs for a business, moving costs, and more.
One of the most common reasons people take out personal loans is for debt consolidation. There are personal loans for borrowers who want a sizeable chunk of money and for those who just need a small amount to tide them over.
Best Personal Loans of 2024 Summary
- Best for excellent credit: LightStream Personal Loan
- Best for customer support: Service Credit Union Personal Loan
- Best for fair credit: SoFi Personal Loan
- Best for small loan amounts: PenFed Credit Union Personal Loan
- Best for low credit: Avant Personal Loan
- Best for borrowers with limited credit history: Upstart Personal Loan
- Best for flexible terms: Wells Fargo Personal Loan
Compare Personal Loan Rates
Top Personal Loans Comparison
The best personal loans will offer fast money when you need it, without astronomical fees and interest rates. We looked at loan providers that cater to a variety of credit scores and offer a range of loan term lengths. The best personal loans aren't necessarily from big-name banks; credit unions generally offer lower interest rates, and you can find strong options through online banks, too.
Here are the best personal loans as picked by Business Insider editors in 2024.
Best Personal Loan for Excellent Credit
LightStream stands out with some of the lowest personal loan rates available for borrowers with excellent credit scores. Truist created LightStream for online loans, and the bank offers personal loans for things like home remodels, medical debt, and debt consolidation.
Look out for: High credit score requirements. LightStream's minimum credit requirement for a personal loan is 660, so this lender might not be right for all credit types.
LightStream Personal Loan Review
Best Personal Loan for Customer Support
Service Credit Union Personal Loan
Service Credit Union has some of the best customer support among personal loan lenders and can get you your money fast. Customer support is available 24 hours a day, seven days a week. The approval process takes about 24 hours, and after your loan application is accepted, you may be able to have the funds in your account the same day.
Look out for: Membership requirements. Much like with most credit unions, you'll need to meet certain requirements to be eligible. If you've served in the military or Department of Defense or work at qualifying associations or organizations, you'll qualify. If that doesn't apply to you, you can join the American Consumer Council for free with a promo code.
Service Credit Union Personal Loan Review
Best Personal Loan for Small Loan Amounts
PenFed Credit Union Personal Loan
PenFed Credit Union offers personal loans for smaller amounts than many other lenders, making it a good choice for those who just need to borrow a little bit of money for a short time. PenFed will lend you as little as $600. This could make the credit union an attractive alternative to a payday loan.
Look out for: Membership requirements. You don't need to be a member of the credit union to apply for a personal loan, but you'll have to be a member to get your loan. If you've served in the military or work at qualifying associations or organizations, you'll qualify.
However, you have a pretty easy workaround if that doesn't apply. You can join by opening a savings account with a $5 minimum deposit.
Best Personal Loan for Fair Credit
SoFi Personal Loan
SoFi personal loans have a minimum credit score requirement of 680, at the lower end of what's considered a good credit score. People with a good credit score will likely be able to get a good rate with SoFi, but borrowers with an excellent credit score may be able to get a lower rate with LightStream.
Interest rates on these loans range by about 13 percentage points, making for a smaller range than offered by other companies. This means interest rates for borrowers with relatively lower credit scores can only go so high.
Look out for: A relatively high minimum income for approval. According to loan comparison site Credible, less than 1% of borrowers approved for personal loans through SoFi have an income of less than $50,000 per year, and a majority make more than $100,000.
Best Personal Loan for Bad Credit
Avant Personal Loan
Avant stands out as a lender that applicants with low credit scores can turn to for personal loans. Personal loans are generally offered to those with better credit scores. Avant offers personal loan options for borrowers with credit scores as low as 600. It has a lower limit than other lenders, with $35,000 as the maximum loan amount.
Look out for: Administrative fees. Avant's personal loans carry up to 4.75% in administration fees with an undisclosed late fee and returned payment fee. Considering that many of the other loans on this list don't carry administrative fees, prepayment fees, or origination fees, Avant's fee is high.
It's also worth noting that interest rates are high from this lender. While this is a good option for anyone with credit scores in the lower 600s, those with better credit could find better rates elsewhere.
Best Personal Loan for Borrowers with Limited Credit History
Upstart Personal Loan
Upstart differentiates itself from other personal loan lenders with its underwriting process, which is how it decides who gets a loan and how much to charge in interest. Like any lender, Upstart considers credit scores as part of the process. But it also considers employment history and education history, such as where you went to school and your area of study.
Look out for: Potentially high origination fees. Upstart's personal loans can have late fee of 5% or $15, whichever is greater. This can take a significant portion out of your overall loan proceeds.
Best Personal Loan for Flexible Terms
Wells Fargo Personal Loan
Wells Fargo personal loans offer low interest rates, smaller minimum borrowing amounts, and shorter terms than many others. Wells Fargo offers loans between $3,000 to $100,000, for payoff terms as short as 12 months. Borrowers who want to get their debt under control quickly might find that Wells Fargo's personal loans are flexible enough to tackle debt consolidation.
Look out for: It's worth noting Wells Fargo's history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues associated with creating fake accounts several years ago.
Wells Fargo Personal Loans Review
How to Find the Best Personal Loans for Your Needs
What Is a Personal Loan?
A personal loans is an installment loan. That means you borrow money and pay it back through monthly payments over a set period of time. Most personal loans are unsecured, meaning they don't require you to put down collateral.
Personal loans also usually come with fixed interest rates. Interest rates for unsecured personal loans are determined largely by your credit score. The higher your credit score, the better your chances of getting the lowest available personal loan interest rates.
Where to Secure the Best Personal Loan Offers
You can get a personal loan through three types of lenders:
Online Lenders
Online lenders can provide convenience and offer competitive rates. They typically offer a streamlined qualification and application process, allowing borrowers to apply and receive funds entirely online. Online lenders frequently cater to borrowers with a wide range of credit scores.
Banks
Banks are the traditional sources of personal loans with established reputations and familiarity. You can visit a local branch to discuss loan options and receive personalized assistance. Some banks offer perks including discounts for existing customers.
Credit Unions
Credit unions are member-owned financial institutions. They often offer better rates and fees compared to banks, for members in good standing. Credit unions can also be more flexible in their lending criteria for borrowers with lower credit scores. Interest rates for credit union personal loans are capped at 18% by the National Credit Union Administration.
Personal Loan Lender Trustworthiness
Whether you're interested in taking out a $5,000 loan or a $40,000 loan, finding the right provider can help with your loan approval experience. The Better Business Bureau, a non-profit organization focused on consumer protection and trust, evaluates businesses using factors like their responsiveness to consumer complaints, honesty in advertising, and clarity about business practices. Here is each company's score:
| Lender | BBB Grade |
| LightStream Personal Loan | A+ |
| SoFi Personal Loan | A+ |
| Wells Fargo Personal Loan | F |
| Avant Personal Loan | A |
| PenFed Credit Union Personal Loan | A+ |
| Service Credit Union Personal Loan | A+ |
| Upstart Personal Loan | A+ |
All of our top picks, minus Wells Fargo, are rated A or higher by the BBB. Keep in mind that a high BBB score does not ensure a positive relationship with a lender, and that you should keep doing research and talking to others who have used the company to get the most comprehensive information possible.
The BBB gives Wells Fargo an F rating because of the business' failure to respond to 24 complaints and government actions against the business. Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.
If this history makes you uncomfortable, you may consider using one of the other personal loan lenders on our list.
How to Choose the Best Personal Loan
To pick the best lender for you, take stock of the factors that are most important to you. Many borrowers zero in the lowest interest rate. But be sure to also look at any fees, the minimum credit score needed, and the accessibility of the lender's customer service before you apply for personal loans.
Also look at the different types of lenders you may borrow with. Some people may feel comfortable with an online lender, while others may prefer a credit union or bank. You'll also want to make sure you're able to select a term length that works for you and that your loan's purpose is allowed by the lender you choose.
Guides like this one will help you compare multiple lenders in the same place to weigh their pros and cons. Keep in mind that you should also read individual reviews of any lenders you're considering.
Best Personal Loan FAQs
How quickly can I get funded from the best personal loans? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.You can usually get access to personal loan funds relatively quickly. Online lenders may offer same-day or next-day funding. Some banks might take a few days.
What credit score do I need for a personal loan? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Generally, lenders require a credit score in the mid-600s to qualify for a personal loan, though some will lend to borrowers with lower credit scores. To get a loan with bad credit, you might also want to consider credit unions offering personal loans and secured loans.
Can I use a personal loan for anything? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Most lenders have a broad range of allowable usages for the money but might have exclusions, such as not using it for investing or paying tuition.
What are alternatives to a personal loan? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Alternatives to personal loans include 0% APR credit cards, which can be used to consolidate credit card debt or make purchases that you'd like to pay off over time, and home equity lines of credit, which can fund major repairs or renovations usually at lower interest rates.
What is a good rate for a personal loan? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.The average personal loan rate is about 12%, so a good rate would be anything below that. You'll have the best chance of getting a lower rate if you have a high credit score.
Why You Should Trust Us: Our Experts for the Best Personal Loans
We consulted personal loan and financial experts to give their insights into finding the best loan companies for your needs.
- Markia Brown, certified financial education instructor and registered financial associate at Money Plug, LLC
- Ryan Wangman, former loans reporter at Personal Finance Insider
Our Experts' Advice for Choosing the Best Personal Loan
How does the interest rate on a personal loan affect how much I pay?
Markia Brown:
"The interest rate on a personal loan is the price you pay for borrowing the loan. This rate can make a massive difference in the total amount paid over time, so ensuring you have the lowest interest rate available saves you money!"
Ryan Wangman:
"Depending on the interest rate you're charged, you could end up paying hundreds or thousands of dollars more than a borrower with better credit who takes out a similar amount of money."
If someone wants to get a lower interest rate but doesn't currently qualify for one, what should they do?
Markia Brown:
"The first step is to pull a copy of your credit report from TransUnion, Equifax, and Experian. All you have to do is go to www.annualcreditreport.com.
After you pull your credit reports, go through them to identify what could be holding you back from qualifying for a better rate. Some of the information on your credit report is used to generate your credit score, which is used when determining if you qualify for a loan and what your interest rate should be. The five sections used to calculate your credit score are your payment history, credit utilization, length of payment history, mix of accounts, and new accounts or inquiries."
Ryan Wangman:
"The best way to get a lower rate is to improve your credit history. You can do so by making on time, reliable payments and managing the amount of debt you take out compared to your overall limit."
What Determines the 'Best' Personal Loan?
There's no one-size-fits all best personal loan for all borrowers. However, there are key features to focus on when making a decision. The most important are:
Competitive Interest Rates
APRs on personal loans can vary widely from one lender to another. The interest rate on your determines how much you'll ultimately repay. Even a relatively small difference in the interest rate can add thousands of dollars over the life of your loan.
Flexible Terms
The term of a personal loan, or the period of time you have to repay it, determines how high or low your monthly payment will be. A longer the term will mean a lower the payment, but you'll pay in total interest. A shorter the term will come with a higher payment and ultimately less overall interest. The best personal loan lenders offer a wide range of terms to choose from.
How We Rate Personal Loans
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.
See our full ratings methodology for personal loans »
Liz Knueven Personal Finance Reporter Liz was a personal finance reporter at Insider. Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven. Read more Read less 
Ryan Wangman, CEPF Loans Reporter Ryan Wangman was a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe. Read more Read less 
Elias Shaya Compliance Associate Elias Shaya is a Compliance Associate on the Personal Finance Insider team based in New York City, which ensures content accuracy and editorial independence so readers are always getting up-to-date and objective financial advice.The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up-to-date and accurate.He joined Insider in February 2022 as a fellow on the compliance team. Read more Read less Top Offers From Our Partners 
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