You can get just about anything online, including loans to buy a house or pay off high-interest debt. Some online loans can be approved in less time than it takes to drive to a bank branch.
As with any financial product, you will want to work with a reputable company and make sure your loan is a good fit for you.
Here’s a look at some pluses and minuses of online loans and what to look for to get the best deal.
- What is an online loan?
- Can you get an online loan instantly?
- How can you get an online loan?
- Are online loans legitimate?
Best Online Personal Loans of 2021
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Lender |
Learn More |
APR |
Max. Loan Amount |
Min. Credit Score |
|---|---|---|---|---|
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2.49% to 19.99% | $100,000 | 660 | |
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6.49% to 17.99% | $20,000 | Not disclosed | |
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8.69% to 35.99% | $50,000 | 620 | |
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5.99% to 24.99% | $40,000 | 640 | |
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7.16% to 29.99% | $45,000 | Not disclosed | |
 |
9.95% to 35.95% | $35,000 | 550 | |
 |
6.99% to 19.99% | $40,000 | 660 | |
 |
5.99% to 18.28% | $100,000 | 680 | |
 |
4.99% to 29.99% | $50,000 | 640 | |
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10.68% to 35.89% | $40,000 | 600 |
Before You Apply
- Minimum FICO credit score: 660
- Loan amounts: $5,000 to $100,000
- Repayment terms: 24 to 144 months
- Better Business Bureau rating: A+
Best Features
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A variety of loan uses are available.
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Loans of up to $100,000 are available.
Best for low minimum loan amounts
Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $500 to $20,000
- Repayment terms: up to 60 months
- Better Business Bureau rating: A+
Best Features
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Terms of up to 60 months.
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There are no origination fees.
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Borrowers can get access to funds as early as the day after approval.
Best for borrowers with no credit or poor credit
Before You Apply
- Minimum FICO credit score: 620
- Loan amounts: $1,000 to $50,000
- Repayment terms: 36 to 60 months
- Better Business Bureau rating: A+
Best Features
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Upstart may accept applicants with fair credit or even those with no credit history, using artificial intelligence to quantify risk.
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Upstart loans as low as $1,000 are available in most states.
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The lender’s credit dashboard allows borrowers to see the impact of loan repayments and to modify payment dates.
Payoff is not a bank; instead, it works with lending partners that originate loans. The company, which considers itself a financial wellness firm, is based in California.
In 2017, Payoff launched a sister company called Happy Money, which takes a psychological approach to money matters. Today, Payoff is a service under the Happy Money umbrella.
Before You Apply
- Minimum FICO credit score: 640
- Loan amounts: $5,000 to $40,000
- Repayment terms: 24 to 60 months
- Better Business Bureau rating: A+
Best Features
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Borrowers don’t face prepayment or late fees.
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Borrowers can get preapproved with no hard credit check.
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Some borrowers with fair credit may be eligible.
Best for digital customer care
Before You Apply
- Minimum FICO credit score: undisclosed
- Loan amounts: $2,000 to $45,000
- Repayment terms: 36 to 60 months
- Better Business Bureau rating: A+
Best Features
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Same-day loan funding is available in some cases.
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No prepayment penalties apply.
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An online application process is available.
Before You Apply
- Minimum FICO credit score: 550
- Loan amounts: $2,000 to $35,000
- Repayment terms: 24 to 60 months
- Better Business Bureau rating: A
Best Features
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Loans as low as $2,000 are available.
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Funding can happen as early as the next business day after approval.
Before You Apply
- Minimum FICO credit score: 660
- Loan amounts: $3,500 to $40,000
- Repayment terms: 36 to 72 months
- Better Business Bureau rating: A+
Best Features
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Marcus does not charge any fees on its personal loans.
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Borrowers can adjust their payment due date.
Best for loans of up to $100,000 with no fees
Before You Apply
- Minimum FICO credit score: 680
- Loan amounts: $5,000 to $100,000
- Repayment terms: 24 to 84 months
- Better Business Bureau rating: A
Best Features
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SoFi offers no-fee loans, including no late fees.
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Loans of up to $100,000 are available.
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Co-borrowers are accepted.
Before You Apply
- Minimum FICO credit score: 640
- Loan amounts: $2,000 to $50,000
- Repayment terms: 36 to 60 months
- Better Business Bureau rating: A+
Best Features
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Loan funding typically takes one to three business days upon approval.
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The minimum loan amount is $2,000 in most states.
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Borrowers incur no prepayment penalty.
Before You Apply
- Minimum FICO credit score: 600
- Loan amounts: $1,000 to $40,000
- Repayment terms: 36 to 60 months
- Better Business Bureau rating: not rated
Best Features
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Loans of $1,000 or more are available.
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Joint applications are accepted.
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Borrowers can qualify with fair to excellent credit.
Best Online Mortgage Lenders of 2021
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Best for low-interest VA loans
Before You Apply
- Mortgage types: VA, Military Choice, conventional fixed rate, Homebuyers Choice, ARM
- Minimum FICO credit score: Not disclosed
- Maximum loan amount: $2 million
- Better Business Bureau rating: A+
Best Features
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Zero-down loans are available.
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Private mortgage insurance is not required for many loans.
Before You Apply
- Mortgage types: conventional, FHA, VA, USDA, ARM, Carrington Flexible Advantage, first-time buyers, refinancing
- Minimum FICO credit score: 500
- Maximum loan amount: $2.5 million
- Better Business Bureau rating: A+
Best Features
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Applicants with credit scores as low as 500 are accepted for some products.
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Conventional loans are offered with down payments as low as 3%.
Before You Apply
- Mortgage types: fixed rate, ARM, conventional, USDA/Rural Development, FHA, VA, jumbo, refinance, renovation, reverse mortgage
- Minimum FICO credit score: 580
- Maximum loan amount: undisclosed
- Better Business Bureau rating: A+
Best Features
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The selection of mortgages includes VA and USDA loans, which often have no down payment requirements.
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The company has an A+ customer service rating with the Better Business Bureau.
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Renovation loan options include the HomeStyle Renovation Loan, which combines the cost of remodeling and the mortgage into one loan.
Best for consumers with credit scores between poor and good
Before You Apply
- Mortgage types: conventional, fixed rate, ARM, FHA, refinance, VA, FHA Streamline Refinance, Refi Plus, VA Streamline Refinance
- Minimum FICO credit score: 620
- Maximum loan amount: Not disclosed
- Better Business Bureau rating: A+
Best Features
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Borrowers with fair credit may qualify.
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It features a simple online application process.
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VA loan borrowers aren’t charged lender fees.
Before You Apply
- Mortgage types: conventional, FHA, VA, USDA, ARM, refinancing, renovation, jumbo
- Minimum FICO credit score: 620
- Maximum loan amount: $2 million
- Better Business Bureau rating: A+
Best Features
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A broad range of mortgage products are offered.
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Special mortgage programs for first-time buyers and manufactured homebuyers are available.
Before You Apply
- Mortgage types: VA, VA jumbo, refinance
- Minimum FICO credit score: 640
- Maximum loan amount: $1.5 million
- Better Business Bureau rating: A+
Best online bank for customer service
Before You Apply
- Mortgage types: fixed rate, ARM, home equity loans, refinancing, HomeReady for first-time homebuyers
- Minimum FICO credit score: 620
- Maximum loan amount: $4 million
- Better Business Bureau rating: A+
Best Features
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A program is available for first-time homebuyers.
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Existing Ally customers can get a closing cost discount.
Before You Apply
- Mortgage types: fixed rate, Affordable Loan Solution, FHA, VA, ARM, home equity line of credit, fixed-rate refinancing, FHA refinancing, VA refinancing, cash-out refinancing, adjustable-rate refinancing, jumbo
- Minimum FICO credit score: Not disclosed
- Maximum loan amount: $2.5 million
- Better Business Bureau rating: A+
Best Features
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Bank of America has a wide variety of mortgage products.
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The lender offers origination fee discounts for qualifying Bank of America and Merrill Lynch clients.
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Home equity lines of credit have no annual, application or cash advance fees or closing costs.
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Bank of America offers a first-time homebuyer program.
Before You Apply
- Mortgage types: fixed rate, FHA, VA, USDA, ARM, home equity line of credit, refinancing, medical professional mortgage program, jumbo, PNC Community
- Minimum FICO credit score: Not disclosed
- Maximum loan amount: $5 million
- Better Business Bureau rating: A+
Best Features
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Multiple types of mortgages are available.
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Some mortgage options require no or low down payments.
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PNC supplies an online home ownership cost tool.
Before You Apply
- Mortgage types: Traditional, ARM, refinancing, home equity line of credit, Alliant Advantage Mortgage
- Minimum FICO credit score: 620
- Maximum loan amount: $2.5 million
- Better Business Bureau rating: A+
Best Features
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No-down-payment mortgages are available for first-time homebuyers with excellent credit.
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Mortgages are available to borrowers with FICO credit scores as low as 620.
Best Online Student Loans of 2021
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Find the Best Student Loan Refinance Lenders
Before You Apply
- Loan types: undergraduate, graduate, co-signer, refinancing, Parent PLUS refinancing, MBA, law, medical
- Minimum FICO credit score: 650
- Co-signer accepted: yes
- Better Business Bureau rating: A+
Best Features
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Earnest doesn’t charge origination, application or late fees.
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You can choose your monthly payment and loan term length.
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You can use a co-signer on undergraduate or graduate student loans, and student loan refinancing is available.
Before You Apply
- Loan types: undergraduate, graduate, parent loans, refinancing, parent refinancing, MBA, law, health care
- Minimum FICO credit score: 680
- Co-signer accepted: yes
- Better Business Bureau rating: A+
Best Features
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There are no application, origination or prepayment fees.
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All types of student loans are eligible for refinancing.
Before You Apply
- Loan types: undergraduate, graduate, parent loans, refinancing, MBA, law, dental, medical, career, international
- Minimum FICO credit score: undisclosed
- Co-signer accepted: yes
- Better Business Bureau rating: A+
Best Features
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Loans are available from $5,000.
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Prequalify for a rate in less than 1 minute.
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Loan terms are available from 5 to 20 years.
Before You Apply
- Loan types: undergraduate, career training, parent, K-12, graduate, MBA, medical, medical residency, dental, dental residency, health professions, law school, bar study
- Minimum FICO credit score: undisclosed
- Co-signer accepted: yes
- Better Business Bureau rating: A+
Best Features
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Student loans completely cover school-certified expenses such as tuition, fees, books, housing, meals, travel or a laptop.
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Customer service is 100% U.S.-based.
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Borrowers don’t have to pay a loan origination fee.
Before You Apply
- Loan types: undergraduate, graduate, parent, refinancing, MBA, law, international, consolidation, health professions, residency, bar exam. International loans require a co-signer who is a U.S. citizen or permanent resident.
- Minimum FICO credit score: undisclosed
- Co-signer accepted: yes
- Better Business Bureau rating: A+
Best Features
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Loans as small as $1,000 are available.
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Discover has no origination, application or late fees.
Best for speedy credit decisions
Before You Apply
- Loan types: refinancing, parent refinancing
- Minimum FICO credit score: 650
- Co-signer accepted: yes
- Better Business Bureau rating: A-
Best Features
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Refinancing is available for a range of student loans.
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Splash Financial works with a network of banks and credit unions to provide the best possible rates.
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There are no application fees, origination fees or prepayment penalties.
Before You Apply
- Loan types: undergraduate, graduate, MBA, law, health professions, refinance
- Minimum FICO credit score: 680
- Co-signer accepted: yes
- Better Business Bureau rating: A+
Best Features
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Borrowers can get up to 15 years to pay off the loan.
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The lender offers an interest rate discount for automatic payments.
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Borrowers can make full payments or pay interest only while in school, or defer payments.
Best for graduate health care program loans.
Before You Apply
- Loan types: student loan refinancing, health care graduate, Parent PLUS refinancing
- Minimum FICO credit score: 650
- Co-signer accepted: yes
- Better Business Bureau rating: A
Best Features
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Loans are available from $5,000 up to 100% of the student’s school-certified cost of attendance.
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Borrowers can make full payments while in school, or choose to pay interest only, a flat fee or defer payments.
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Laurel Road student loans have no application, origination or prepayment fees.
Before You Apply
- Loan types: undergraduate, graduate, refinance
- Minimum FICO credit score: undisclosed
- Co-signer accepted: yes
- Better Business Bureau rating: A
Best Features
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Students can consider multiple lenders with a single application.
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LendKey has no origination or application fees.
Before You Apply
- Loan types: undergraduate, graduate, refinancing, MBA, law, dental, medical, bar and residency
- Minimum FICO credit score: undisclosed
- Co-signer accepted: yes
- Better Business Bureau rating: A+
Best Features
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PNC offers a range of loans for undergraduate, graduate and professional education.
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Loans are available in all 50 states.
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Borrowers can receive an interest rate discount for automatic payment from a checking or savings account.
Best Online Business Loans
Methodology: U.S. News selected national small-business loan companies for this guide based on consumer ratings and availability of products.
Lender Highlights
- Loan types: invoice factoring, lines of credit, term loans
- Minimum FICO credit score: 530
- Maximum loan amount: $5 million
- Better Business Bureau rating: A+
Best Features
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Invoice factoring credit lines as large as $5 million
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Disbursement within 24 hours
Lender Highlights
- Loan types: lines of credit, merchant cash advances
- Minimum FICO credit score: undisclosed
- Maximum loan amount: $5 million
- Better Business Bureau rating: A+
Best Features
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Loans come from a network of financial institutions
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Borrowers matched with loan options
Lender Highlights
- Loan types: lines of credit
- Minimum FICO credit score: undisclosed
- Maximum loan amount: $100,000
- Better Business Bureau rating: A+
Best Features
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Loan amounts from $1,000 to $100,000
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Some funds with next-business-day availability
Best for fixed monthly payments
Lender Highlights
- Loan types: term loans
- Minimum FICO credit score: 660
- Maximum loan amount: $500,000
- Better Business Bureau rating: A+
Best Features
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Term loans of up to $500,000
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No annual revenue minimums for loans
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Loans available in every state except Nevada
Lender Highlights
- Loan types: lines of credit, term loans
- Minimum FICO credit score: undisclosed
- Maximum loan amount: $2 million
- Better Business Bureau rating: A+
Lender Highlights
- Loan types: bridge loans, invoice factoring, lines of credit, merchant cash advances, term loans
- Minimum FICO credit score: undisclosed
- Maximum loan amount: $1 million
- Better Business Bureau rating: A+
Best Features
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Loans charge monthly fee instead of annual percentage rate
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Smallest loan amount is $5,000
What Is an Online Loan?
Online loans allow you to complete the loan process online, from comparing rates to applying for and receiving funds. Typically, you can obtain your loan and manage your account without setting foot in a brick-and-mortar space.
Some online lenders offer three choices for customer service. They provide not only online resources, but also options for phone and in-person service.
Most online loans are personal loans, with uses ranging from debt consolidation to home improvement loans. But mortgages, business loans, student loans and other loan types can also be obtained online.
“Personal loans have been the fastest-growing type of loan over the last couple of years,” says Peter Klipa, senior vice president of creditor relations for the nonprofit National Foundation for Credit Counseling. “A lot of that is driven by the category of debt consolidation.” Debt consolidation loans are popular because personal loan rates tend to be lower than credit card rates.
Adds Yasmin Farahi, a policy counsel at the Center for Responsible Lending, a consumer advocacy group: “So much of what consumers are doing is online these days, so in that way, (the growth) is not surprising.”
Can You Get an Online Loan Instantly?
One main benefit of online loans compared with traditional loans is speed. Application, approval and the chance to review multiple offers happens quickly, so you can obtain online loans fast.
Some online personal loan companies say they can obtain loan approval in five minutes or less. And you might be able to get funds as soon as the next business day.
Where Can You Get an Online Loan?
Many types of lenders let you borrow money online: traditional banks, credit unions and online financial technology, or fintech, companies. The latter issues almost half of all unsecured personal loans, according to a 2019 report from the credit bureau Experian.
Some of the largest online loan companies for personal loans include SoFi, LightStream, Prosper and Upstart. Like traditional lenders, they require a hard credit check and have set minimum annual income and other eligibility criteria, such as good to excellent credit.
Unlike traditional lenders, though, online lenders use automated underwriting for quicker and easier online loan approval. And you won’t have to visit a bank branch or make a phone call to get a loan.
How Can You Get an Online Loan?
Follow these steps as you choose an online loan:
Decide how much you need, and budget for monthly payments. First, figure out how much money you need to borrow, such as the minimum loan amount to consolidate high-interest debt. Determine what you can reasonably afford to pay on the loan each month.
Get quotes. Many online lenders allow you to prequalify for loan offers with basic information such as your Social Security number, which can tell you how much you may be able to borrow, term lengths, your interest rate and other loan terms. Prequalifying is a good way to assess competitive interest rates and potentially get a lower interest rate. Check that the lender only does a soft credit inquiry for rate quotes, which won’t affect your credit score.
A hard credit inquiry, used when you formally apply for a loan, could affect your credit history and score. But that’s only if you are piling up inquiries in a short span of time.
Review costs. Compare loan rates, terms, loan amounts and other factors to find the best online loan for your needs. Look closely at the loan costs disclosed by the lender, which should include the interest rate and fees, including the origination fee and late fees. Your annual percentage rate can tell you what your loan costs with interest and fees.
“Think about interest as the rent you must pay for borrowing,” says Nandita Das, founder of Das Financial Health in Newark, Delaware. “Along with the interest, you have other fees that become the total cost of the loan.”
The federal Truth in Lending Act requires lenders to provide you with clear information about the costs of a loan. It also allows borrowers to cancel certain loans within three days of signing up for them.
Loan terms should be clear, including loan amount, fees and interest, finance charge and payoff amount.
Are Online Loans Legitimate?
Most online loans are safe, but scams – and really bad deals – can be pitfalls of online loans. Here’s how to tell the difference between legitimate online lenders and ones you should avoid.
Online loan companies fall into two groups: firms that rely on credit report checks before they approve your loan and payday-type lenders that only use soft credit checks and may consider wages or bank accounts instead. Although a loan with no hard credit check might sound like a good deal, especially if you have bad credit, a full credit check is a good sign an online lender is legitimate.
Because they have few approval requirements, payday loans can help you borrow if you have bad credit. But easier access to bad credit loans comes at a cost.
A consumer will pay much higher interest rates for not going through a credit check, Klipa says. “As much as the consolidation loans have been growing, the payday lenders have also been growing,” he adds.
Payday lenders target consumers with a below-average credit score.
If an offer seems too good to be true – such as fast funding for anyone, with no minimum credit score – be careful. Getting payday loans online is rarely a good choice because the cost of borrowing can quickly become overwhelming.
- The offer seems too good to be true.
- Loan costs aren’t clear, or information is limited.
- High interest rates or fees are well above average.
- No credit check is required.
- Payments aren’t reported to credit bureaus.
Online payday-type lenders “are the same thing in a different package,” Farahi says. “Because of a new shiny package, people think of them as different, like they’re not payday loans or have the same kinds of issues, but they do.”
Look for online lenders that perform credit checks and provide clear terms, with fees that are within reason for the type of loan you want.
Is an Online Loan the Right Choice?
Sometimes a loan of any kind just isn’t the right choice. Maybe you’re buried under credit card debt and credit counseling would be more helpful than credit card refinancing with another bill to pay. Or if you want to take a vacation, saving money could be a better option than borrowing.
Online loans can be faster and easier than traditional loans, but those aren’t the most important factors to consider. If you want an online loan, get prequalified for offers from all types of lenders to see whether you’re getting the best deal on rates, terms and fees.
Advertising Disclosure: Some of the loan offers on this site are from companies
who are advertising clients of U.S. News. Advertising considerations may impact
where offers appear on the site but do not affect any editorial decisions,
such as which loan products we write about and how we evaluate them. This site
does not include all loan companies or all loan offers available in the marketplace.
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