Best Personal Loan Companies

We compared top lenders on rates, fees and requirements to help you find the best place to get a personal loan.

Of our picks, Best Egg, Marcus by Goldman Sachs, Prosper and Upgrade have some of the lowest starting annual percentage rates (APRs): less than 8% for those who qualify. Upstart also has a low starting rate for those with good credit but still accepts applicants with “bad” credit. Check out LendingClub, OneMain Financial and LendingPoint for flexible minimum requirements, though their rates start a bit higher.*

Read our full methodology for more on how we selected our top picks.

• Good for low starting APR
  • Best Egg
  • Upgrade
  • Prosper
  • Marcus by Goldman Sachs
• Good for flexible credit score requirements
  • LendingClub
  • OneMain Financial
  • Upstart
  • LendingPoint

*All estimated APR ranges and fees are accurate as of publishing date.

Best Egg is one of our top picks overall because it has great reviews, wide availability and relatively low starting APRs. With Best Egg, 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 was a very simple and fast process for a personal loan request!” a reviewer in Tennessee said. “From the first click on my laptop — to the requested cash amount being deposited into my bank account. All completed within about 24 hours.”

A reviewer in Oregon recommends Best Egg because of its “transparency, easy application process and easy navigation of process through clear upfront information, fast release of funds and great customer service.”

Estimated rates and fees: Annual percentage rates (APRs) range from 8.99% to 35.99%. Best Egg offers simple interest loans, meaning that the interest is calculated only on the outstanding principal balance. In other words, you don’t have to pay “interest on top of interest,” like with credit cards, according to the company’s website.

The one-time origination fee, which Best Egg charges for processing the loan, is 0.99% to 8.99% of the total loan amount. There is a $15 returned payment fee if your payment can’t be processed because of a returned check or insufficient funds in your bank account.

What to know before you apply: In addition to a 600 credit score, you also need a debt-to-income 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).

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 two and seven years. Most of our other top picks only offer terms from three to five years.

Plus, the application process is easy to navigate, and “customer service is helpful, knowledgeable and professional,” according to a reviewer in Nevada.

Estimated rates and fees: Personal loans made through Upgrade have APRs of 7.96% to 35.97%. There’s no application fee, but all personal loans have an origination fee of 1.85% to 8.99%. Keep in mind that Upgrade also charges $10 for a failed payment attempt.

Personal loans come fully amortized with a fixed interest rate. Your specific rate is determined by your credit score, credit usage history and loan term, among other factors.

For example, if you get a $10,000 loan with a three-year term and 17.98% APR (includes 14.32% yearly interest rate plus a 5% origination fee), your required monthly payment would be $343.33. At the end of the term, you will have paid $12,359.97 in total.

What to know before you apply: 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.

Prosper is a peer-to-peer lender, which is slightly different from most other lenders on our list. The loans are funded by individual investors and institutions instead of the company itself. Prosper does not fund any part of the loan.

A reviewer in New York said that the process is “very simple” and only took about half a day. “It's a great way to get money without all the intrusive stuff you have to go through with a bank or standard loan company,” they said.

Another reviewer in Georgia highlighted the customer service: “You are treated with the utmost respect; makes you feel like one of their family members.”

We also like that you can get funding in as little as one day after final approval.

Estimated rates and fees: APRs range from 7.95% to 35.99%, with the lowest rates for borrowers with the best credit scores. All personal loans come with fixed interest rates. Origination fees vary between 2.41% and 5%. Charges for paying by check and late payments apply.

What to know before you apply: According to some reviewers, it seems like Prosper has a pretty strict identity verification process. One reviewer in Florida said it was difficult to prove they were “a person,” even after they were preapproved.

Some of the benefits of getting a personal loan through Marcus include customizable payment due dates and on-time payment rewards. You also get a 0.25% discount on the APR for enrolling in automatic payments.

It’s easy to apply online. Once you’re approved, the company will verify your bank account and deposit funds within about four days.

A reviewer in New York, who got a personal loan from Marcus to consolidate high-interest credit card debt, said the company has “excellent client services.” The loan paid off three accounts in full, and they said keeping up with the one monthly payment has helped boost their credit score “from good to excellent in seven months.”

Estimated rates and fees: APRs for personal loans range from 6.99% to 19.99%. Like other lenders, Marcus saves its best rates for applicants with higher credit scores. Generally, rates are also lower when you get a shorter term. There are no sign-up, prepayment or late fees — all you have to pay is the principal and interest.

“No fees” sounds pretty great. Just keep in mind that if you pay late or miss a payment, you will accumulate more interest and pay for it eventually. Otherwise, you risk defaulting on the installment loan. Late and partial payments will most likely turn up on your credit report.

What to know before you apply: Marcus accepts applications from people older than 18 in most states (19 in Alabama and 21 in Mississippi). You need a valid U.S. bank account and Social Security or individual taxpayer identification number. It currently only accepts individual loan applications (no joint applications).

LendingClub is an online lending marketplace. In addition to personal loans, it also offers business loans (up to $500,000) and auto loan refinancing.

Most applicants get approval within 24 hours and receive funds from LendingClub Bank within two days, according to the company’s website. It offers the convenient option to make automatic payments.

Happy reviewers say the application process is easy, rates are reasonable and funds are promptly deposited. A reviewer in Florida highlighted LendingClub’s ”fast service” and “easy application process,” adding that paying off the loan helped to increase their credit score “considerably.”

However, a reviewer in Washington suggested that communication over the phone and by email is lacking.

Estimated rates and fees: APRs range from 7.04% to 35.89%, and the average APR offered is 15.95%. Like all other lenders, your rate will vary based on your credit history. There’s a one-time origination fee between 3% and 6%.

There is no application fee or prepayment penalty. We like that LendingClub extends a 15-day grace period on late payments before charging late fees.

If you have excellent credit, you can probably find a lower rate elsewhere, according to a reviewer in Utah: “This is not a place where you can go with good credit and get great rates and fast funding.”

What to know before you apply: To qualify, you have to be at least 18 years old and have a verifiable bank account. Unlike some of our other top picks, LendingClub allows joint applications, which means you can put more than one borrower on the application.

OneMain Financial has served over 10 million customers since 2010. Currently, it has about 1,400 branches and offers services in 44 states.

“The process of applying and getting the funding is pretty easy with OneMain,” said a reviewer in Alabama. “All their fees and the process are upfront. They have very high interest rates, but keep in mind that they finance the high risk group.”

OneMain Holdings is one of the United States’ biggest near-prime installment lender, according to the company, and it focuses on applicants whose credit falls between prime and subprime. One reviewer in California called One Main “a lender of last resort.”

Unlike many other personal loan companies, OneMain Financial offers both unsecured and secured options to applicants. The type you’re offered depends on the size of the loan, your credit score and your income. Forms of collateral OneMain Financial accepts include cars, trucks, motorcycles, boats, campers and RVs.

A reviewer in Tennessee said, “OneMain Financial representatives truly care about you as an individual, are empathetic to your needs and go out of their way to help.”

Estimated APR and fees: OneMain Financial’s rates start a bit higher than our other picks — this is the trade-off for more flexible credit requirements. APRs range from 18% to 35.99%, as of publishing, with an average of 27%.

At up to 10%, its origination fees are also a little steep. If you’re late on a payment, expect to pay a fee between $5 and $30, or up to 15% of your monthly payment.

What to know before you apply: Some states have different minimum loan amounts: $3,000 in California, $3,100 in Georgia, $2,000 in North Dakota and Ohio, $2,100 in Alabama and $2,600 in Virginia. Borrowers in North Carolina can only access up to $7,500 on unsecured loans.

You’ll need a copy of your government-issued ID, proof of residence, proof of income and sometimes additional documents to apply. If approved, you can get your money through direct deposit or in person at a OneMain Financial branch.

Upstart specializes in personal loans for debt consolidation and paying off credit cards. Its lending platform uses artificial intelligence (AI), and two-thirds of loans are fully automated, with no human involvement from the initial rate request through final funding.

It’s a good choice for those with middle-of-the-range credit scores, but you can apply no matter how low your score is — or even if you have don’t have enough of a credit history to have a score. If approved, you can expect to receive funds within one to two business days.

Estimated rates and fees: Rates skew a little higher than some other companies. APRs start at 5.22% but go as high as 35.99%. Upstart charges an origination fee up to 8% of the loan amount. There are no prepayment penalties. The late payment fee is either 5% of the late amount or $15 (whichever is higher).

On average, five-year loans from Upstart have an APR of 21.4%. For example, the total cost of a $10,000 loan with that APR would be $14,775, with a $582 origination fee. Your actual rate is determined by your credit score, income and other financial information submitted on the loan application.

What to know before you apply: To be eligible, you must be at least 18 (19 in some states); have a verifiable name, birthday and Social Security number; provide a valid email address; have a regular income source and meet several other requirements. The minimum loan amount varies by state: $7,000 in Massachusetts, $6,000 in Ohio, $5,100 in New Mexico and $2,100 in Hawaii.

LendingPoint specializes in unsecured personal loans for people across the credit score spectrum. We like that the website boasts extra security features to protect your personal information, including encryption.

The company uses a proprietary scoring and underwriting system to evaluate each applicant, including their debt-to-income ratio, payment-to-income ratio and other factors.

Same-day approvals are eligible for funding as soon as the next business day. Funds can be used for debt consolidation, unexpected medical expenses, home improvements, weddings and just about anything else.

Estimated rates and fees: APRs range from 9.99% to 35.99%. The origination fee is up to 6% of the loan amount. You might have the option to deduct the origination fee from the loan amount. LendingPoint doesn’t charge any prepayment penalties.

What to know before you apply: How much you can borrow varies based on your credit profile and other financial information. LendingPoint won’t offer a loan amount that it doesn’t believe you can afford. Currently, joint and co-signed loans are not available.

For example, for a well-qualified applicant who gets a $10,000 loan with an APR of 23.72%, a 6% origination fee and a 48-month term, the monthly payment is $324.48. The total cost of the loan in this scenario is $15,575.04.

A personal loan is a type of consumer loan. Other types of consumer loans include mortgages, student loans and car loans. Unlike a car loan or a mortgage, a personal loan is often unsecured. This means you don’t have to provide collateral the lender can take in case you default.

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.

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 they charge higher interest rates, like with payday loans. The added costs mean you end up paying more over time. Read about the different types of personal loans to learn more.

What can you use a personal loan for?

Other types of loans have specific requirements for use, but you can use a personal loan for practically anything, including emergency expenses, special occasions, investments and paying down credit card debt.

A 2019 Experian survey found that large purchases and debt consolidation were the most common uses for personal loans. According to SoFi, the most common reasons people get personal loans are:

• Debt management and consolidation
• Wedding expenses
• Unexpected medical bills
• Moving costs
• Funeral expenses
• Home improvement projects

Personal loans are a viable option in many circumstances. The most important thing to consider is your ability to pay the money back. (The average personal loan debt in the third quarter of 2020 was $16,458, according to Experian data.)

If you default on an unsecured loan, expect to see a negative effect on your credit score. If you don’t pay it back, the lender can also put your account in collections or take legal action.

Personal loans vs. credit cards

Although they operate differently, both personal loans and credit cards appeal to people who need money that they don’t presently have. Both let you pay for large purchases over time rather than upfront. In this way, personal loans are similar to credit cards.

A credit card is a revolving line of credit from which you can borrow money at any time, up to your credit limit. Compared with loans, credit cards give you more flexibility in how much debt you take on and how much you pay back each month. Unlike personal loans, which generally have fixed rates, credit cards come with variable interest rates.

When deciding whether a personal loan or credit card is better for your situation, think about how you’d prefer to receive funds and the option that lets you pay the least in interest.

If you can qualify for a 0% APR credit card, that might be a better route. Otherwise, compare lenders to see what rates are available to you and choose the lender with the lowest option.

• When to get a personal loan: If you need funds quickly, have a good credit score and are confident in your ability to repay.
• When to get a credit card: If you need access to a revolving line of credit (not a lump sum) and if you want to take advantage of cashback rewards or other rewards.

First, check your credit score. Your credit score determines the interest rate you can get. According to Bankrate, average interest rates range from 10.3% to 12.5% if you have an excellent score.

Borrowers in the bad-to-fair credit range can still qualify if they meet the lender’s other criteria (a low debt-to-income ratio and verifiable full-time employment history, for example.) However, they won’t get a very good interest rate.

There are ways to fix your credit, but it takes time and might not be practical if you need the money in a pinch. Still, it’s best to avoid payday loan companies if possible because of the high APRs. Instead, try to borrow from friends or family, work with a peer-to-peer lending marketplace, like Prosper, or check out one of these payday loan alternatives.

Once you have an idea of what you’re looking for, it’s always a good idea to shop around and compare loan offers. Here are five tips for comparing different lenders to help you get the best rate and term.

1. Look at the website

A lender’s website or a promotional mailer is often your first impression of the company. Make sure that the website is secure, especially if you need to enter sensitive information.

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.

• State licensing and disclosures: Licensing and disclosures are usually at the bottom of the lender’s homepage or website FAQ. Consumer information and disclosures requirements vary by state. If you don’t see your state, check a different one — if you see triple-digit interest rates, that’s a red flag.
• Lender fees: It could be another warning sign if the website doesn’t have information about these charges. The most common types of lender fees include charges for origination and late payments (Marcus by Goldman Sachs, which does not charge late fees, is a notable exception).

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 and avoid interest.

A good website is also important because so much of the lending process is digital these days. For example, a PenFed Credit Union reviewer in Alabama told us they got a flyer stating they were preapproved for up to $30,000, so they got online to check out the website.

According to the reviewer, the website was “primitive, lagging and [had] all kinds of issues. It’s 2021 and you don’t have a website that can work properly?? That’s a good clue to probably stay away.”

We suggest looking for websites that are “informative,” as a reviewer in Florida said about Best Egg’s website.

2. Read recent reviews

Reading different lender reviews will give you a sense of what to expect from different lenders.

Some of the top-rated lenders on our site have 5-star reviews with comments about helpful customer service, easy applications and quickly deposited funds.

Keep an eye out for multiple reviews that mention high-pressure sales tactics and unexpected charges or fees. However, 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.

You can also check out the Consumer Financial Protection Bureau’s Consumer Complaint Database for information about companies. Some of the most common negative feedback collected relates to getting the loan, problems when making payments and unexpected fees.

When reading lender reviews, watch for red flags like mentions of unexpected fees or high-pressure sales tactics.

3. Compare loan offers

Once you have a few lenders in mind, it’s time to reach out for estimated rates. When it comes to interest rates and APRs, lower is better.

Most lenders have access to rates between 3% and 36%. 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.

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

• Income and employment information
• Credit history and score
• Debt-to-income (DTI) ratio
• Lender
• Size of the loan
• Length of repayment term

Comparing offers is the most essential step to getting a good deal on a personal loan, so don’t limit yourself to the first offer you get. You can also utilize an online marketplace, like LendingTree.

If you’re getting a loan for debt consolidation, make sure you’re saving money with a lower interest rate, even when factoring in fees. If you prefer face-to-face communication, it's a good idea to work with a local company (see below).

4. Beware of too many hard credit inquiries 

It won’t hurt your credit to get a rate estimate. However, your credit score will take a dip after a hard inquiry, which is required for official loan approval.

For example, a Prosper reviewer in California was preapproved for a loan but wanted to shop around for a better rate before eventually coming back. Apparently, Prosper did another credit pull “and then denied me based on one issue: Too many credit inquiries in the recent year from similar companies.”

5. Consider the total cost of the loan

The overall cost for a personal loan is less with a lower rate and shorter term. The faster you can pay the loan off, the less you have to pay in accumulated interest.

For example, let’s say you get a $10,000 loan with a 15% APR and three-year term. The total loan costs $12,479.52 by the time you pay it back ($10,000 in principal plus $2,479.52 in interest and fees). If you get the same loan amount and rate but pay it off over five years, it costs about $1,800 more ($10,000 in principal plus $4,273.96 in interest and fees, totaling $14,273.96).

Below, compare total loan costs (principal plus interest and fees) on a $10,000 personal loan with different rates and terms.

Below, compare personal loan companies on available amounts, repayment terms, APRs and minimum credit score requirements.

Once you’ve evaluated your options, the next step is to start the application process. While lenders' processes may vary slightly, the steps to get a personal loan are typically the same.

	Loan amounts	Repayment terms	Starting APR*	Min. credit score
	$2,000 to $50,000	36 or 60 months	8.99%	600
	$1,000 to $50,000	24 to 84 months	7.96%	560
	$2,000 to $40,000	36 or 60 months	7.95%	640
	$3,500 to $40,000	36 to 72 months	6.99%	660
	$1,000 to $40,000	36 or 60 months	7.04%	Varies
	$1,500 to $20,000	24 to 60 months	18%	Varies
	$1,000 to $50,000	36 or 60 months	5.22%	300
	$2,000 to $36,500	24 to 60 months	9.99%	Varies

*As of the time of publication

	$2,000 to $50,000	36 or 60 months	8.99%	600
	$1,000 to $50,000	24 to 84 months	7.96%	560
	$2,000 to $40,000	36 or 60 months	7.95%	640
	$3,500 to $40,000	36 to 72 months	6.99%	660
	$1,000 to $40,000	36 or 60 months	7.04%	Varies
	$1,500 to $20,000	24 to 60 months	18%	Varies
	$1,000 to $50,000	36 or 60 months	5.22%	300
	$2,000 to $36,500	24 to 60 months	9.99%	Varies

The ConsumerAffairs Research Team chose top picks by comparing 24 personal loan companies on online reputation, rate transparency and availability.

• Online reputation: We compared ratings and reviews on our site and across the internet, including on Trustpilot and Bankrate. We also checked in with the Better Business Bureau to look for current alerts and government actions within the last three years.
• Rates and fees: We only chose lenders that cap APRs at 35.99%, and we gave preference to lenders with lower rate ranges, lower origination fees and no prepayment penalties. We also gave preference to companies with clear rates and plenty of easy-to-access information about fees.
• Availability: We eliminated lead generators and companies that are only licensed in a few states. All of our top picks serve residents in most states.