Best Personal Loan Companies

We compared 63 companies and chose the top personal loan lenders

  • Best overall
    Upgrade
    3.9(726)
  • Flexible repayment terms
    Best Egg
    4.8(2,262)
  • Larger loans
    Achieve Personal Loans
    4.6(786)

Best Personal Loan Companies

+3 more
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Edited by: Jana Lynch
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Fact-checked by: Jon Bortin

Compare our top 5 picks for best personal loans

  1. Our top pick overall: Upgrade
  2. Our pick for flexible repayment terms: Best Egg
  3. Our pick for larger loans: Achieve
  4. Our pick for customer service: Reach Financial
  5. Our pick for smaller loans: NetCredit

To select our top picks, we looked at 24 loan companies and compared their annual percentage rates (APRs), terms, fees and customer reviews.

Our picks may be Authorized Partners that compensate us. This does not affect our recommendations or evaluations.

Buyers Choice Award Finalist
Upgrade
Loan amounts
$1,000 to $50,000
Term lengths
24 to 84 months
Minimum credit score
580

Pros

  • Fast approvals for most borrowers
  • No prepayment penalty
  • High upper limit for loans

Cons

  • Can take two weeks for funds to creditors to clear
  • Late fees (starting at $10)
  • Origination fee up to 8.99% as of publishing

Many ConsumerAffairs readers report being pleased with Upgrade’s customer service and easy application process, which they say helped them find the right loan for their needs. “Customer service is helpful, knowledgeable and professional,” according to a reviewer in Nevada.

Joy from Wisconsin said about her experience, “The loan process was fast and easy. Everything was done online, and the instructions were simple and easy to follow. The cash arrived quickly, within a day or two, into my account. I would recommend Upgrade to a friend. Everything you need to manage your account, can be accessed through the app.”

However, there were customers who described issues with the payment process and not receiving promotional bonus offers.

Upgrade is an online lending platform that partners with several banks and financial institutions to originate loans. It does a soft credit pull to estimate your rate. Once you’re officially approved, Upgrade deposits funds into your bank account in about a day.

Upgrade stands out for its wide range of repayment terms, which are between 24 to 84 months. Plus, there’s no application fee. Upgrade also offers a smaller minimum loan amount than many other lenders.

If you’re self-employed, you’ll need additional documentation, including two years of recent tax returns and forms and bank statements to verify your income. Upgrade may verify receipt of your taxes using Form 4506-T, which can delay the process up to a week.

2024 Buyers Choice Award Winner
Best Egg
Loan amounts
$2,000 to $50,000
Term lengths
36 to 60 months
Minimum credit score
700

Pros

  • Loans available for a variety of purposes
  • Fast funding for most borrowers
  • Lower required minimum credit score than many competitors

Cons

  • Loan minimums vary by state
  • Origination fees
  • $15 insufficient funds fee

Reviewers state that getting a loan with Best Egg is a simple, easy and fast process, and loans come with comparable rates and acceptable terms. “From the first click on my laptop — to the requested cash amount being deposited into my bank account. All completed within about 24 hours,” said a reviewer in Tennessee.

Jill from New Jersey said, “This company has been extremely helpful with everything from switching payment accounts and moving payment dates. Everyone I have spoke with has been knowledgeable, helpful and polite. I would recommend them as they are fast and efficient as I have never waited on hold or been held up in time when I have contacted them. Quick and easy.”

Be aware, though, that some reviewers expressed concern with the preapproval process.

Best Egg is an online lender that offers personal loans ranging from $2,000 to $50,000. Select borrowers may have two open loans at a time, although the combined loan amount cannot exceed the upper limit of this range.

Best Egg is one of our top picks because it has relatively low starting APRs and it only takes a few minutes to check your rate. You’ll need your email address and phone number to get started. Most approved borrowers get funding within one to three days. It also has an easy, online-only application.

For approval, you’ll need a 700 credit score, and you also need a debt-to-income (DTI) ratio below 30%, verifiable income and a valid address. Some states have different minimum loan amounts ($5,000 in New Mexico and Ohio, $6,500 in Massachusetts and $3,000 in Georgia). Best Egg does charge origination fees ranging from 0.99% to 8.99% as of publishing, but there are no prepayment penalties.

3x Award Winner
Selected for having one of the highest satisfaction rates for Best Customer Service, Best Experience with Staff and Best Loan Process
2024 Buyers Choice Award Winner
Achieve Personal Loans
Loan amounts
$5,000 to $50,000
Term lengths
24 to 60 months
Minimum credit score
620

Pros

  • Flexible credit requirements
  • High upper limit for loans
  • Custom rates based on a few financial factors

Cons

  • Not available in all states
  • No small loans

Many reviewers on ConsumerAffairs mention being happy with Achieve’s staff and punctuality.

Merlene from New York said their experience with Achieve was “a very good one.” They told us, “I could not do it without their help, I totally appreciate them because they came into my life when I needed help. Their customer service are awesome even though I don't call them on a regular basis but they are always there and Attentive to your call. I totally would highly recommend them to any friends and family. Many thanks again for being there for me.”

Another reviewer from New York said, “They're always very friendly and helpful. The girl who helped me double-checked until I got the loan. The only thing I don't like about Achieve Personal Loans is the interest is so high. It doesn't look like I would finish paying off this loan. I wish after a year or six months, they could look at my credit score and try to reduce the interest. Other than that, they were the best. Even when I call customer service, they're very patient and knowledgeable.”

Achieve is an online lender that funds loans for various purposes, including debt consolidation, home improvement and medical expenses. It sets your APR based on your credit score, your job details and your payment history.

Over a recent three-year period, Achieve receive lots of positive feedback regarding its loan process, customer service and speed. It can fund loans within 24 hours, and it requires a credit score of 620 for borrowers.

To ensure you qualify, Achieve will verify your income and bank account information. Also keep in mind that loan availability and minimum loan amounts may vary by state.

3x Award Winner
Selected for having one of the highest satisfaction rates for Best Customer Service, Best Experience with Staff and Best Loan Process
Best for customer service
Reach Financial
Loan amounts
$3,500 to $40,000
Term lengths
24 to 60 months
Minimum credit score
700

Pros

  • Free access to credit score monthly
  • Payment pause up to 90 days
  • Cash bonuses for paying on time

Cons

  • Limited uses for loans
  • No weekend phone support

Leslie from Virginia said consolidating debt with Reach Financial “was a blessing.” They told us, “And with the low price, it was very nice. It was a no-brainer. The application process was very simple and the reps were very helpful and flexible. They told me what the process was and it took 90 days for everything to transfer over to Reach Financial. But it was immediate. There wasn't much for me to do. What they said would happen, happened. The reps were very transparent, clear, knowledgeable and personable. If I had a question, they answered it. If they didn't know, they got someone who did.”

Leslie went on, “It was a very pleasant experience. Working with Reach helped me get to my goal to be debt free. It's not stressful, which is wonderful. They laid it out and didn't overwhelm you with a whole lot of information, like spam mail. … I had a loan to pay for those creditors and get everything all done in one swoop, and it took a lot of stress when that happened.”

Reach Financial specializes in personal unsecured loans for debt consolidation and credit card refinancing. It offers flexible terms, so you can customize your loan to fit your budget and financial goals. The company also provides tools and resources to help customers manage their debt and improve their credit scores.

Once you submit an application online, you can see your rate in minutes, then you can select the terms that most appeal to you.

Reach Financial does charge origination fees (0% to 8% as of publishing). Also keep in mind that if you’re not currently in debt, one of our other top picks might be a better fit for you.

2024 Buyers Choice Award Winner
NetCredit
Loan amounts
$1,000 to $10,000
Term lengths
6 to 60 months
Minimum credit score
700

Pros

  • Low minimum borrowing requirement
  • No prepayment penalties

Cons

  • Not available in all states
  • High APRs

Derrick from Arkansas said his experience with NetCredit was “phenomenal.” He told us, “NetCredit is truly amazing and remarkable! They helped me get approved for my cash advance and the funding was soo quickly and readily available. NetCredit is simply the best and they also honor their word as I read in their policy agreement. I am very impressed with the company as a whole and will recommend it to anybody who needs some timely financial assistance.”

Derrick said the company helped him through a financial crisis: “I am very thankful for all of their knowledgeable employees that helped me and I will definitely be using NetCredit again, if ever my financial bind occur again. I'm no longer overwhelmed because a was provided a way out through NetCredit. My head is now above water. I finally could see the light at the end of the tunnel and thank you NetCredit for turning it on for me.”

NetCredit focuses on smaller loans (between $1,000 to $10,000 as of publishing). Its loans can be used for any purpose (e.g., medical payments, car repairs, etc.). While its APRs are higher than rates from other companies on this guide, there’s no penalty for prepaying on your loan. The company does charge late fees, however.

You can check your eligibility for a NetCredit loan online. If you’re happy with your offer and accept the terms, you should see funds in your account within 24 hours.

The company offers loan terms between 6 to 60 months, but smaller loan amounts might require term lengths on the shorter end of this range. Rates and terms also vary by state.

3x Award Winner
Selected for having one of the highest satisfaction rates for Best Customer Service, Best Experience with Staff and Best Loan Process

Top Picks

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Personal loan buyers guide

Before picking a lender, make sure you review all the loan features to decide what’s best for you. Once you’ve evaluated your options, the next step is to start the application process. While lenders' processes may vary slightly, the steps to getting a personal loan are typically the same across the board.

Key insights

Different lenders cater to different needs. Consider minimum and maximum loan amounts, credit score requirements and repayment terms when choosing a lender.

Jump to insight

Look for a lender with a strong track record of positive customer reviews.

Jump to insight

Make sure you understand all loan terms, fees and APRs before committing.

Jump to insight

A good credit score improves your chances of approval and helps you secure lower interest rates.

Jump to insight

What is a personal loan?

A personal loan is a type of consumer loan. Personal loans are also sometimes called installment loans because you get a lump sum of money upfront and pay it back in regular installments over a predetermined period. Repayment terms can be anywhere from a few months to over five years.

What can I use a personal loan for?

Personal loans can be used for a wide range of purchases. You can also use them to pay down or consolidate others debts. Some lenders restrict personal loan usage — e.g., you might not be able to use them for college tuition or a mortgage down payment.

However, most lenders will allow personal loans to be used for the following:

  • Consolidating debt
  • Wedding expenses
  • Vacation costs
  • Medical expenses
  • Home repairs or remodeling
  • Moving costs
  • Financing motorcycles, RVs or boats
  • Other large purchases

Where to get a personal loan

You can get a personal loan from a bank, credit union, online lender or other financial institution. Some lenders only work with borrowers if they have a good credit score. Others have more flexible requirements but charge higher interest rates. The added costs mean you end up paying more over time.

Secured vs. unsecured loans

The majority of personal loans are unsecured, which means they’re not backed by collateral. This is why creditworthiness is a determining factor for approval. Secured personal loans are backed by collateral, like your car or savings, which the lender can repossess if you default.

» MORE: Interest rates and how they work

Personal loan interest rates

Interest rates on personal loans vary widely depending on your credit score, income, debt-to-income (DTI) ratio and the lender's terms. Generally, personal loan rates range from around 8% to 36%. When it comes to interest rates, lower is better. The lowest rates lenders advertise are for the ideal borrower — one with excellent credit, high income and low debt. A good interest rate will be one near a lender’s advertised rate.

If you’re unhappy with the rate you were given, you can improve your credit by paying off existing debt, reducing your credit utilization and making timely payments. These steps may help you qualify for a better rate in the future.

Below is a general breakdown of typical personal loan APRs by credit score (as of publishing).

How to find the best personal loan

Before you apply for a personal loan, check your credit score. The better your score is, the more likely you are to qualify for a lower rate. It might save you money to fix your credit before taking out a personal loan, though this is not a fast process.

Once you know your score, shop around and compare loan offers for your credit range. Here are five tips for comparing different lenders to help you get the best rate and terms.

1. Research the lender

Remember that if an offer sounds too good to be true, it likely is. Before you apply for a loan, make sure the company is legitimate by verifying that it’s licensed in your state and reviewing its rate and fee disclosure. You’ll also want to find out if the lender allows you to check your rate with a soft or hard credit check.

“Lenders who cannot explain all the loan details, upfront fees, rates, etc., will likely have hidden excessive fees,” said Fred Winchar, president of Max Cash. He also recommends avoiding lenders that promise guaranteed approvals or rush you through the loan process.

Typically, origination fees range between 2% and 6% on a personal loan, but some companies charge up to 10%. We suggest avoiding lenders that charge prepayment fees that make it difficult to pay off your loan early.

2. Read recent reviews

Reading different lender reviews will give you a sense of what to expect from different lenders. Keep an eye out for multiple reviews that mention high-pressure sales tactics and unexpected charges or fees.

Keep in mind that you will also likely find negative reviews by people who are simply annoyed that they were denied. This information may not be relevant to you.

3. Compare loan offers

The rate you get depends on how the lender evaluates your creditworthiness. That’s why applicants with bad credit rarely get the lowest rate advertised.

“As you decide [your loan term], leave a little room for other unexpected expenses that could set you financially off balance,” said Winchar.

Generally, the interest rate on your loan depends on your:

  • Credit history and score
  • DTI ratio
  • Income and employment information
  • Lender
  • Size of the loan
  • Length of repayment term
Ensure you’re considering the APR (vs. interest rate) when you’re looking at the total cost of your loan. Because the APR includes fees, it provides a fuller picture of total costs over time.

You want to consider the total cost of the loan; to do that, look at the APR, which includes fees. Also, check the options for term lengths and the monthly payment amount to make sure it fits in your budget.

4. Apply for the loan

You can apply for a personal loan at your local financial institution or through an online lender; most lenders have online loan applications to make the process faster. The application will ask you questions about yourself, your finances and what you plan to do with the loan. Have these documents ready when you apply:

  • Government-issued ID
  • Social Security number
  • Income verification (pay stubs, W-2s or bank statements)
  • Proof of residence (utility bill, rental agreement, mortgage statement)
  • Bank account information (routing number, account number)
  • Creditor information (for debt consolidation)

Once you submit your application, expect a hard pull on your credit, which can temporarily decrease your credit score. Once your application is approved, you will have a chance to view and approve your rate and repayment terms.

» READ MORE: Where to get a personal loan

Pros and cons of personal loans

Pros

  • Flexibility
  • Quick funds
  • No collateral required
  • Predictable payments

Cons

  • Fees
  • Potentially very high interest rates
  • Can compound financial stress

Personal loans can be used to finance anything from a medical emergency to a vacation. They’re also a good option for debt repayment — you can consolidate multiple higher-interest debts into a lower-interest loan with a single, predictable monthly payment.

However, remember that personal loans can come with stricter borrowing requirements since they are not typically backed by collateral, like a mortgage or auto loan is.

What to do before taking out a personal loan

Before taking out a personal loan, consider the following steps:

  1. Assess your financial situation: Ensure you truly need a loan and that it aligns with your financial goals. Check your credit score and review your debt-to-income ratio.
  2. Improve your credit score: A better score can lead to lower interest rates and better terms.
  3. Compare multiple lenders: Shop around for the best rates and terms available for your credit profile.
  4. Understand the total cost: Look at APRs and fees to determine the overall expense of the loan.
  5. Create a repayment plan: Make sure you can afford the monthly payments and have a plan to pay off the debt responsibly. 

What to do if you’re denied a personal loan

Here are steps you can take to improve your chances of approval in the future:

  1. Understand why you were denied. Common reasons include a low credit score, high debt-to-income (DTI) ratio or insufficient income.
  2. Improve your credit score. Review your credit report, pay down debt and make consistent, on-time payments.
  3. Reduce your debt-to-income ratio. Focus on paying off high-interest debts to reduce your monthly obligations and avoid taking on new debt.
  4. Consider a co-signer. This can improve your chances of approval and may help you secure a better interest rate.
  5. Explore alternative lenders. Some lenders specialize in working with borrowers who have less-than-perfect credit.
  6. Wait and reapply later. Use the time to strengthen your financial profile. Reapply once your credit score, income or DTI has improved.

FAQ

How long does it take to get a personal loan?

How long the application process takes varies by lender. Most lenders make it easy to get started online, showing your prequalification rate in minutes. Some lenders approve borrowers and distribute funds on the same day, while others can take multiple days.

Can you refinance a personal loan?

You can refinance a personal loan, similarly to how you can refinance a car loan, student loan or home loan. Refinancing allows you to replace your current loan with one that has more favorable terms.

How many personal loans can you have at once?

It’s possible to have multiple loans from the same lender or across different lenders. A lender might require you to wait several months before applying for a new loan. Having an existing personal loan can affect your eligibility for another loan.

» MORE: What to know about taking out a personal loan

What are the eligibility requirements for a personal loan?

Eligibility requirements vary by lender, but they typically include the following:

  • Credit score: Most lenders require a minimum credit score of 600 to 660.
  • Income: Lenders want to see that you have a steady income and can afford the monthly payments.
  • Debt-to-income ratio: This is a measure of how much of your monthly income goes toward debt payments. Lenders typically prefer a debt-to-income ratio of 40% or lower.
How much will a $10,000 personal loan cost per month?

The monthly payment for a $10,000 personal loan will depend on the interest rate and the repayment term. For example, with a 10% interest rate and a 5-year term, the monthly payment would be approximately $212. If the interest rate is higher or the term is shorter, the monthly payment will increase.

Will taking out a personal loan affect my credit score?

Yes, taking out a personal loan can affect your credit score. When you apply for a loan, lenders typically perform a hard inquiry, which may temporarily lower your score. However, if you make on-time payments and maintain a low debt-to-income ratio, a personal loan can also help build your credit over time.

Get expert advice on personal loans

When are personal loans a good option for achieving financial goals?
Elaine Luther

Elaine Luther

Professor, business management, Point Park University

Even the best planners will encounter situations where they need additional funds beyond current savings, including emergency funds. The reasons for obtaining personal loans can be sorted into two categories: needs and wants. Both reasons might be valid, but the bar to go into debt for a want might be higher than for a need. Borrowers should closely evaluate those reasons before making a final decision.

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Axel Stock

Axel Stock

Associate professor, marketing, University of Central Florida

It all starts with assessing your financial situation. Borrowers need to determine how much they can afford to borrow and repay each month without straining their finances. They also need to check their credit score to understand what loan terms they might qualify for. Then they can use loan comparison tools. For example, online loan calculators can be utilized to compare different loan offers based on a borrower’s financial situation.

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Brandis Phillips

Brandis Phillips

Associate professor, accounting, North Carolina Agricultural and Technical State University

Personal loans are an excellent tool to consolidate credit card debt. Rates should be lower, and you will be able to choose a defined loan period. However, adding a personal loan to your debt is only a good option if you have the willpower not to use the credit cards you paid off. The best alternative for most people is to close the high interest credit card account and forgo obtaining additional credit cards.

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Roberta Newell

Roberta Newell

Associate professor, accounting, The University of Rhode Island

Personal loans are not always the best option for all financial situations, however here are some instances when they may be effective:

  • Consolidating High Interest Debt: Personal loans are especially effective when you have a number of high interest credit cards. Consolidating the credit card debt into a single payment could reduce the overall burden on your budget and result in paying off the debt earlier than if left on the credit cards.
  • Financing Major Expenses: Personal loans can help cover significant expenses like medical bills, home improvements or other large purchases. If you can’t afford to pay up front, borrowing through a personal loan can help spread out the cost.

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What are the best practices for using personal loans responsibly?
Scott Boylan

Scott Boylan

Professor, accounting, Washington & Lee University

Personal loans must be repaid on time. Failure to do so will hurt your credit score and could prevent you from getting a mortgage or car loan in the future. If you take out a personal loan, it is essential to have a plan to repay it.

It is more responsible to use personal loans for necessary purchases than for discretionary ones. Using a personal loan to pay for a major car repair will allow you to continue to use your vehicle for work. Replacing a broken furnace or water heater is necessary to properly maintain your home. In contrast, if you want to take a fancy vacation or add an expensive guitar to your collection, it might be better to postpone the transaction until you have saved enough to cover the cost without going into debt.

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Elaine Luther

Elaine Luther

Professor, business management, Point Park University

Beyond evaluating the purpose of the personal loan, borrowers should also fully understand the cost of those loans. In addition, they should research to see if they have other options. There are three main options for obtaining additional funds: credit cards, personal loans, and secured or collateral loans.

Another reasonable option is to explore part-time jobs or other side hustle options to provide additional funds. In some cases, those jobs could be at places where you could use the employee discounts to help you afford projects like new appliances or other home improvement expenditures. Some of these options might require more research than others, but in most cases, borrowers should take the time to explore their options. As part of a good financial plan, it might be a good idea to explore these options even before a specific need arises.

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James Clifton

James Clifton

Assistant professor, accounting, North Dakota State University

  • Never take them if you can avoid them.
  • Do your best to lower the costs of borrowing.
  • Reduce origination fees or eliminate them.
  • Obtain the lowest interest rate possible.
  • Always leave room in your budget for unexpected costs. You must have an emergency fund of at least $1,000.
  • Plan to repay the loan faster than the lending contract requires.

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Roberta Newell

Roberta Newell

Associate professor, accounting, The University of Rhode Island

  • Borrow Only What You Need: Remember the budget that you created to determine an affordable monthly payment and stick to it!
  • Make Timely Payments: This is especially important if you are trying to build or improve your credit.
  • Take Out One Personal Loan: Taking out multiple personal loans could defeat the purpose of the loan. Pay off one loan at a time before taking out another one (if at all).

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How can borrowers repay personal loans while staying financially stable?
Scott Boylan

Scott Boylan

Professor, accounting, Washington & Lee University

Being able to repay a new personal loan boils down to cash flow. One way to generate cash to repay a loan is to earn more income. For example, you could take a second job or a side hustle.

Another way to increase cash flow is by spending less, which starts with setting a budget. Understand how much you currently spend and look for areas in which you can cut back. If you currently are saving, you could temporarily reduce your savings to cover the monthly payments on the debt. If you rent, consider downsizing to a smaller or more modest apartment when your lease expires. If that isn’t feasible, or if it’s too disruptive, you could cancel subscriptions, dine out less frequently, postpone trips or defer other discretionary purchases. If you find yourself wanting a new outfit, recreational gear or tech toy, make a list and wait a month or two. Then review the list to see whether you still really want what’s on it. Finally, if you are already in debt, you can improve your cash flow by refinancing at a lower rate. Alternatively, you could stretch out the payments, but that is more expensive in the long run.

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James Clifton

James Clifton

Assistant professor, accounting, North Dakota State University

Budget, budget, budget! If we want to be financially stable, have money for what we want to do and retire at a reasonable age, we must budget and track our money to ensure we follow that budget. That means we don’t borrow money unless it is a part of our financial plan.

Any personal loans we take must have a well-thought-out purpose. They must give us something we need that we cannot or will not wait for, and they must fit within our budget, so we know we can comfortably make that monthly payment. We must always leave room in our budget for unexpected costs.

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Roberta Newell

Roberta Newell

Associate professor, accounting, The University of Rhode Island

  • Devise a Repayment Plan: This plan should be in alignment with your original budget. Stick with the plan to achieve your financial goals.
  • Start an Emergency Fund: Everyone should have at least 3-6 months of savings that they can tap into for emergencies. Recall the flexibility that you built into your budget.
  • Adhere to Your Budget: This might mean tightening your belt a bit but remember the long-term plan. A little sacrifice can lead you to achieving your financial goals.

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Elaine Luther

Elaine Luther

Professor, business management, Point Park University

The most important thing to do is to clearly identify and prioritize all debt repayments. Failure to do this could impact your finances for many years to come.

One way to do this is to identify additional revenue options. Having a part-time job or other side hustle is always a good idea. It helps to have a backup plan. Another strategy is to identify discretionary spending where savings could be made. More consideration should be given to practicing delayed gratification.

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How can borrowers determine if a personal loan aligns with their budget?
James Clifton

James Clifton

Assistant professor, accounting, North Dakota State University

I can afford the loan if I have room in my monthly budget. That means I need to prepare a monthly budget to find this answer. A monthly budget tells us how much money we have coming in, how much money is going out and how much money is left at the end of the month.

We can better afford the loan if we can reduce the loan costs, which include any origination fees and the interest rate.

Read their bio
Roberta Newell

Roberta Newell

Associate professor, accounting, The University of Rhode Island

Before taking out a personal loan, borrowers need to determine if their budget allows for repayment and how the loan fits into their long-term financial plan. The following are some guidelines:

  • Review Your Income and Expenses: Before taking out a loan, review your monthly income and expenses. This exercise not only sheds light on your budget but will help determine an affordable monthly payment, if at all.
  • Compare Loan Terms: The terms are the interest rate, repayment period and fees. For example, a loan with a longer repayment term might have lower monthly payments, however, that often means you’ll be paying more interest over time. Weigh the loan options to see which best suits your budget.
  • Consider the Unexpected: One cannot predict future changes to income and expense, so be sure that you still have flexibility in your budget to accommodate these changes.

Read their bio
Elaine Luther

Elaine Luther

Professor, business management, Point Park University

Having a budget is an essential step in achieving financial responsibility. Knowing how you are spending your money is the first step in planning and controlling it. It will also help you start saving for the long- and short-term emergencies that might arise.

One important metric to track is how much debt you are carrying and what monthly payments are associated with that debt. This is what lenders will use to decide whether they will approve a loan. The level of debt will also be used to determine the total amount that will be loaned and what interest rate will be charged. Other factors impacting a personal loan decision are employment stability, credit scores and loan purpose.

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Methodology

To determine our five top picks, including our pick for the best overall personal loan company, we used a weighted scoring system that took into account both reviews about each company from ConsumerAffairs users and specific company offerings we researched.

We conducted sentence-by-sentence sentiment analysis of thousands of reviews on our site from Oct. 1, 2021, to Sept. 30, 2024, to identify the aspects people care about most — and which companies reviewers were happiest with in terms of these aspects. For personal loans, these included:

  • Loan process
  • Customer service
  • Staff
  • Punctuality

We then carefully selected the most important offerings consumers should consider before choosing a lender and researched these offerings at each company. For personal loans, these features included:

  • Minimum and maximum loan amounts
  • Lowest APR
  • Funding time
  • Credit score requirements
  • Maximum term length

The company with the highest score in each category’s uniquely weighted formula was given the “Our pick for” designation. In some cases where a single company received the top score across multiple categories, the company with the second-highest score was named the winner.

Not sure how to choose?

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