Top Personal Loan Lenders and Rates: Compare the Best Options

Personal loans are a great option for consolidating high-interest debt, funding home improvements, or covering large expenses such as medical bills. By securing a personal loan with a lower interest rate, you can save money compared to relying on credit cards or other forms of borrowing. But how do you know which personal loan offers the best terms for your financial needs? Let’s take a look at the top personal loan companies and what they offer.

Best Personal Loan Rates Overview

Personal loans come with varying interest rates based on factors like your credit score and the loan terms. If you’re looking for the best rates available, comparing multiple lenders is crucial. Rates can start as low as 4.60% APR for those with good credit, and loan amounts typically range from $1,000 to $100,000, depending on the lender.

Here are some of the top personal loan lenders and their starting rates:

• Credible: 4.60% APR* (with autopay), loan terms from 2-7 years.
• SoFi: 5.99% APR*, loan terms from 2-7 years.
• Payoff: 5.99% APR, loan terms from 2-5 years.
• Prosper: 7.95% APR, loan terms from 3-5 years.
• Upgrade: 8.49% APR, loan terms from 3-5 years.
• Lending Club: 10.68% APR, loan terms from 3-5 years.
• LightStream: 5.95% APR* (with autopay), loan terms from 2-7 years.
• Marcus by Goldman Sachs: 6.99% APR, loan terms from 3-6 years.
• Avant: 9.95% APR, loan terms from 2-5 years.
• Rocket Loans: 7.161% APR* (with autopay), loan terms from 3-5 years.
• Discover: 6.99% APR, loan terms from 3-7 years.

Top Personal Loan Companies to Consider

1. Credible Credible allows you to compare multiple lenders in one place, making it easy to find the best rates. Loan terms range from 2 to 7 years, and you can borrow from $1,000 to $100,000 depending on the lender. Credible also offers a $200 best-rate guarantee if you find a better deal elsewhere. Checking your rate through Credible won’t hurt your credit score.
2. SoFi SoFi is known for offering no-fee personal loans. There are no origination, prepayment, or late fees, making it a solid option for those looking to avoid hidden costs. Loan amounts range from $5,000 to $100,000 with terms between 2 and 7 years. Fixed rates start at 5.99% APR with a 0.25% discount for autopay. SoFi also provides an easy prequalification process that doesn’t affect your credit.
3. Payoff Payoff specializes in providing loans for paying off credit card debt. With loan amounts between $5,000 and $35,000, fixed interest rates start at 5.99% APR. Loan terms range from 2 to 5 years. While Payoff charges an origination fee of 0% to 5%, they do not charge application, early payment, or late fees. To qualify, you’ll need a credit score of at least 640 and a debt-to-income ratio of 50% or less.
4. Prosper Prosper offers peer-to-peer lending with rates starting at 7.95% APR. It’s an ideal option for those with good credit who want to borrow up to $40,000. Loan terms range from 3 to 5 years, and Prosper charges an origination fee between 2.4% and 5%. They have a fast application process and allow joint loan applications.
5. Upgrade Upgrade offers personal loans with fixed rates, no prepayment penalties, and affordable monthly payments. You can borrow between $1,000 and $35,000, with terms of 3 to 5 years. Rates start at 8.49% APR. While they charge an origination fee of 2.9% to 8%, they provide a quick online application and allow you to check your rate without affecting your credit score.
6. LendingClub LendingClub is another peer-to-peer lender that offers loans from $1,000 to $40,000 for debt consolidation, home improvements, and other major expenses. Interest rates start at 10.68% APR, and the loan terms range from 3 to 5 years. LendingClub charges an origination fee of 2% to 6% but has no prepayment penalties.
7. LightStream LightStream, a division of SunTrust, offers personal loans for almost any purpose, including home improvement, debt consolidation, and more. Loan amounts range from $5,000 to $100,000, and fixed rates start at 5.95% APR when you set up autopay. Loan terms range from 2 to 7 years. LightStream promises quick approval and same-day funding for qualified borrowers.
8. Marcus by Goldman Sachs Marcus by Goldman Sachs offers personal loans up to $40,000, with rates starting at 6.99% APR. The loan term options are 3 to 6 years, and the loan application process is straightforward. There are no fees for prepayment, late payments, or origination, making this a fee-friendly choice for borrowers.
9. Avant Avant offers personal loans ranging from $2,000 to $35,000 with rates starting at 9.95% APR. Loan terms are typically 2 to 5 years, and Avant charges an administration fee of up to 4.75%. Their fast approval process means you could have funds in your account the next business day. While Avant has some fees, it’s a good option for borrowers with average credit.
10. Rocket Loans Rocket Loans offers personal loans from $2,000 to $45,000 for debt consolidation, home improvement, and more. Interest rates start at 7.161% APR when you enroll in autopay. Loan terms range from 3 to 5 years, and Rocket Loans charges an origination fee of 1% to 6% of the loan amount.
11. Discover Discover’s personal loans range from $2,500 to $35,000, with fixed rates starting at 6.99% APR. They offer terms of 3, 4, 5, 6, and 7 years, and there are no origination fees. You can check your rate online without affecting your credit score, and Discover typically provides a decision within minutes.

What Can You Use a Personal Loan For?

Personal loans are often used to consolidate debt, cover emergency expenses, or fund home improvements. However, it’s important to avoid using them for unnecessary purchases like vacations or new furniture. Here are some common uses for personal loans:

• Consolidating credit card debt
• Covering medical bills
• Paying for home renovations
• Funding fertility treatments or adoption costs
• Addressing financial emergencies

What Credit Score Do You Need for a Personal Loan?

Each lender has its own credit score requirements, but generally, you’ll need a good score to secure the lowest rates. A FICO score between 670 and 739 is considered good. However, there are lenders that offer loans for people with average or even poor credit, though the rates may be higher.

In addition to your credit score, lenders will also consider factors like your income, debt-to-income ratio, and loan amount when making a decision.

Conclusion

Finding the right personal loan can help you achieve your financial goals while saving you money on interest. To ensure you’re getting the best deal, take time to compare offers from multiple lenders, considering factors like interest rates, fees, and loan terms. With careful consideration, a personal loan could be the solution to managing debt or funding a major life event.