July 3, 2022

Best Personal Loans for Good Credit

If you plan to make a big purchase or pay off credit card debt with a personal loan, your options broaden when you have a good credit score. With good credit – a FICO score of 670 or better – you’re more likely to receive approval for a personal loan and qualify for a lower interest rate than consumers with fair credit or worse.

Still, the ball is in your court to find the best rates and terms for a personal loan. You’ll want to compare the best personal loans for good credit to find the lowest interest rate and the best repayment terms.

What you’ll learn here:

  • Can you get a personal loan with good credit?
  • How can you compare the best personal loans for good credit?
  • Where is the best place to get a personal loan?

The Best Personal Loans for Good Credit

LightStream

2.49% to 19.99% APR
$100,000 Max. Loan Amount
660 Min. Credit Score

Payoff

5.99% to 24.99% APR
$40,000 Max. Loan Amount
640 Min. Credit Score

Rocket Loans

7.16% to 29.99% APR
$45,000 Max. Loan Amount
Not disclosed Min. Credit Score

Avant

9.95% to 35.95% APR
$35,000 Max. Loan Amount
550 Min. Credit Score

SoFi

5.99% to 18.28% APR
$100,000 Max. Loan Amount
680 Min. Credit Score

Best Egg

4.99% to 29.99% APR
$50,000 Max. Loan Amount
640 Min. Credit Score

LendingClub

10.68% to 35.89% APR
$40,000 Max. Loan Amount
600 Min. Credit Score

Peerform

5.99% to 29.99% APR
$25,000 Max. Loan Amount
600 Min. Credit Score

Upgrade

7.99% to 35.97% APR
$50,000 Max. Loan Amount
Not disclosed Min. Credit Score

Discover

6.99% to 24.99% APR
$35,000 Max. Loan Amount
660 Min. Credit Score

Axos Bank

6.49% to 29.99% APR
$35,000 Max. Loan Amount
720 Min. Credit Score

FreedomPlus

7.99% to 29.99% APR
$40,000 Max. Loan Amount
620 Min. Credit Score

Prosper

7.95% to 35.99% APR
$40,000 Max. Loan Amount
640 Min. Credit Score

U.S. Bank

6.49% to 16.99% APR
$25,000 Max. Loan Amount
680 Min. Credit Score

Lender

Learn More
2.49% to 19.99% APR
$100,000 Max. Loan Amount
660 Min. Credit Score

Lender

Learn More
5.99% to 24.99% APR
$40,000 Max. Loan Amount
640 Min. Credit Score

Lender

Learn More
7.16% to 29.99% APR
$45,000 Max. Loan Amount
Not disclosed Min. Credit Score

Lender

Learn More
9.95% to 35.95% APR
$35,000 Max. Loan Amount
550 Min. Credit Score

Lender

Learn More
5.99% to 18.28% APR
$100,000 Max. Loan Amount
680 Min. Credit Score

Lender

Learn More
4.99% to 29.99% APR
$50,000 Max. Loan Amount
640 Min. Credit Score

Lender

Learn More
10.68% to 35.89% APR
$40,000 Max. Loan Amount
600 Min. Credit Score

Lender

Learn More
5.99% to 29.99% APR
$25,000 Max. Loan Amount
600 Min. Credit Score

Lender

Learn More
7.99% to 35.97% APR
$50,000 Max. Loan Amount
Not disclosed Min. Credit Score

Lender

Learn More
6.99% to 24.99% APR
$35,000 Max. Loan Amount
660 Min. Credit Score

Lender

Learn More
6.49% to 29.99% APR
$35,000 Max. Loan Amount
720 Min. Credit Score

Lender

Learn More
7.99% to 29.99% APR
$40,000 Max. Loan Amount
620 Min. Credit Score

Lender

Learn More
7.95% to 35.99% APR
$40,000 Max. Loan Amount
640 Min. Credit Score

Lender

Learn More
6.49% to 16.99% APR
$25,000 Max. Loan Amount
680 Min. Credit Score

Lender

Learn More

APR

Max. Loan Amount

Min. Credit Score

2.49% to 19.99% $100,000 660

6.49% to 17.99% $20,000 Not disclosed

5.99% to 24.99% $40,000 640

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

10.68% to 35.89% $40,000 600

5.99% to 29.99% $25,000 600

7.99% to 35.97% $50,000 Not disclosed

9.99% to 35.99% $25,000 600

6.99% to 24.99% $35,000 660

6.49% to 29.99% $35,000 720

7.99% to 29.99% $40,000 620

7.95% to 35.99% $40,000 640

6.49% to 16.99% $25,000 680

18% to 35.99% $20,000 Not disclosed

Best for low interest

LightStream is the national online consumer lending division of SunTrust Bank, which in 2019 became Truist after merging with BB&T. The key feature of LightStream’s online personal loans is that they can be up to $100,000 and used for nearly any reason, outside of refinancing existing LightStream loans. Personal loans are available to borrowers with good to excellent credit in all 50 states.

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

  • A variety of loan uses are available.

  • Loans of up to $100,000 are available.

See full profile

Best for low minimum loan amounts

PenFed Credit Union serves members of the Armed Forces, Department of Defense, Department of Homeland Security, military associations, eligible veterans and retirees, and their families. However, military association is not required to apply for a loan or become a credit union member. The credit union offers personal loans for eligible members and eligible co-borrowers in all 50 states.

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

  • Terms of up to 60 months.

  • There are no origination fees.

  • Borrowers can get access to funds as early as the day after approval.

See full profile

Best for debt consolidation

Payoff offers personal loans designed to consolidate credit card and other high-interest debt. It operates in most states and provides loans of up to $40,000.

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

  • Borrowers don’t face prepayment or late fees.

  • Borrowers can get preapproved with no hard credit check.

  • Some borrowers with fair credit may be eligible.

See full profile

Best for digital customer care

Rocket Loans offers personal loans to qualified borrowers in all U.S. states except Iowa, West Virginia and Nevada. These loans are designed for people with fair to excellent credit who need to borrow up to $45,000 for debt consolidation, home improvements, medical expenses and business or other expenses.

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

  • Same-day loan funding is available in some cases.

  • No prepayment penalties apply.

  • An online application process is available.

See full profile

Best for risky borrowers

Since 2012, Avant has provided access to personal loans to more than 800,000 borrowers nationwide. Borrowers may qualify with fair to excellent credit and can borrow from $2,000 to $35,000.

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

  • Loans as low as $2,000 are available.

  • Funding can happen as early as the next business day after approval.

See full profile

Best for no origination fee

Marcus is the consumer bank and lending arm of investment bank Goldman Sachs. Established in 2016, the lender offers personal loans of up to $40,000.

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

  • Marcus does not charge any fees on its personal loans.

  • Borrowers can adjust their payment due date.

See full profile

Best for loans of up to $100,000 with no fees

SoFi, short for Social Finance, offers personal loans of up to $100,000 to borrowers with very good to excellent credit. The lender operates nationwide, but does not offer personal loans in Mississippi, and is known for offering loans with no fees. In addition to personal loans, SoFi offers student loans, student loan refinancing, home loans and small business financing.

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

  • SoFi offers no-fee loans, including no late fees.

  • Loans of up to $100,000 are available.

  • Co-borrowers are accepted.

See full profile

Best for bad credit

Best Egg is a national online lender offering personal loans starting at $2,000 for a variety of purposes. Loans can be funded in as little as one business day.

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

  • Loan funding typically takes one to three business days upon approval.

  • The minimum loan amount is $2,000 in most states.

  • Borrowers incur no prepayment penalty.

See full profile

Best for fair credit

LendingClub is an online marketplace that connects borrowers and investors through its network of lending partners. LendingClub initially launched on Facebook and has evolved into an extensive peer-to-peer lender. Borrowers in all U.S. states except Iowa and U.S. territories who have fair to excellent credit can get $1,000 to $40,000 loans with LendingClub.

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

  • Loans of $1,000 or more are available.

  • Joint applications are accepted.

  • Borrowers can qualify with fair to excellent credit.

See full profile

What Is the Best Interest Rate on a Personal Loan?

When you shop around for the best personal loan interest rate, you can save. Compare your personal loan offers with national average trends for personal loans to know whether you’ve found a good deal.

The average personal loan rate is 9.34%. Last week’s average rate was 9.93%.*

*Rate as of May. 21, 2021

Personal Loan Finder

Select your desired loan amount and loan purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.

Can You Get a Personal Loan With Good Credit?

Good credit makes approval more likely but doesn’t guarantee it. You should have no problem meeting the minimum credit score requirement, but you’ll still need to satisfy other criteria, including annual income and debt-to-income ratio.

Your debt-to-income, or DTI, ratio is a percentage that tells lenders how much you spend on debt each month compared with how much you earn. Generally, personal loan companies prefer a DTI of no more than 43%, which means monthly debt obligations as a percentage of your income should not exceed that amount.

A low DTI ratio can offer easier approval and better interest rates than a high DTI, which can signal to lenders that you might be taking on too much debt.

Lenders also look at your ability to make monthly payments and how consistent your income has been recently, says Sarah Pierce, head of sales and operations for online mortgage lender Better.com.

“To determine this, lenders typically need documentation of your income history from the last two years, verified by tax returns and pay stubs,” Pierce says.

In addition to income and DTI, loan purpose could play a role in approval, but this factor may receive less weight than others. A personal loan application might ask how you plan to use your loan funds, such as paying for a wedding, repairing a home or car, or consolidating credit card debt.

If your income, DTI or another factor disqualifies you from getting an unsecured personal loan, you could consider a secured personal loan, also known as a collateral loan.

Whatever you choose, your credit score is critical to determining loan terms, including loan amount, says Mark Victoria, head of personal lending at TD Bank. Make sure your credit report is accurate before applying for a loan, he says.

You’ll want to review your credit reports and dispute errors. Normally, you’re entitled by law to one free copy of your credit report from each of the three national credit bureaus every 12 months at AnnualCreditReport.com or 877-322-8228. But the credit bureaus are now providing consumers free weekly access to their credit reports through April 2021 amid the coronavirus pandemic.

How Can You Compare the Best Personal Loans for Good Credit?

Evaluating factors such as APR, loan amount and fees will help you select the right loan. You can start your comparison shopping by prequalifying with at least three personal loan lenders.

Many personal loan companies offer online prequalification, which uses a soft credit check to determine your eligibility. Unlike a hard credit check when you formally apply for a loan, a soft credit check does not hurt your credit score.

When you prequalify, you will provide personal information to the lender that will let you learn an estimated loan amount, APR and monthly payment.

The APR provides a simple way to assess the cost of a loan. It includes interest charges and fees, such as origination fees, providing your total yearly cost of borrowing.

Taking the lowest APR deal may save you hundreds or even thousands of dollars, depending on your loan’s principal balance. The average APR for a personal loan is about 9.6%, according to the Federal Reserve’s most recent data, but a good credit score can result in more competitive interest rates.

Good-credit borrowers may qualify for rates at the low end of a lender’s APR range. Personal loan lenders may offer you lower rates because your good credit score suggests that you’ve used credit responsibly and may have a lower risk of default than other borrowers.

Make sure that you read the terms and conditions of your loan offer, and note all fees and when they will apply. In addition to origination fees, some lenders charge late fees, application fees andprepayment penalties.

Calculate how quickly you can realistically afford to repay the personal loan. But keep in mind that the longer the loan term, the more you will pay in interest over the life of the loan.

The term range you’ll have to repay your loan in full varies by lender. Some lenders offer a maximum loan term of three years, and others provide up to seven years to pay back loans.

You might even get flexible repayment terms, allowing you to tailor your payoff plan to attain a monthly payment that works best for your budget.

Personal loan amounts vary by lender, and a good credit score isn’t a guarantee of an offer for a lender’s maximum loan amount. You’ll need to meet the financial institution’s minimum annual income and other requirements for approval.

You can request a loan amount in your application, and the lender will evaluate whether that figure is reasonable based on factors such as income and credit history, Victoria says.

“Some lenders allow borrowers to request a higher loan amount, but in some cases, decisions are automated based on eligibility,” he says.

Lenders may offer you discounts to earn your business. “The most common incentive is a rate discount, typically used to incentivize consumers to sign up for autopay,” Victoria says.

Knowing what other borrowers think of working with a lender can be helpful because you can gain insight into what to expect if you get a loan. Read full reviews to learn about a lender’s interest rates, terms, loan amounts and fees.

Where Is the Best Place to Get a Personal Loan With Good Credit?

The best place to get a personal loan with good credit depends on the loan terms you seek. Traditional banks, credit unions and online lenders offer personal loans for good-credit borrowers.

You can choose from among many lenders offering personal loans if you have good credit. Here’s a look at how different types of lenders may stack up:

  • Your financial institution. If you have good credit and a relationship with a financial institution, see what loan offers it has for you. It already has your identifying information and some of your financial details and could provide a fast decision on your loan application.
  • A traditional bank. Conventional banks, as for-profit financial institutions, could charge higher APRs and fees on personal loans than other lenders. But if you prefer banking at convenient brick-and-mortar branches, this option might be for you.
  • Credit unions. These member-owned financial institutions return profits to members in the form of lower fees and competitive personal loan rates. If you meet a credit union’s eligibility requirements, then you can join and apply for a loan.
  • Online lenders. Because these lenders lack physical branches, you apply and upload documents digitally.

Is a Personal Loan a Good Choice?

You’ll want to compare not only personal loan companies but also consider whether a personal loan is the best solution for your needs. With good credit, you have the ability to shop around.

If you’re making major home repairs, for instance, a home equity loan might be a better choice than a personal loan and could offer a lower interest rate. But if you need to consolidate and pay off a small amount of credit card debt, a balance transfer credit card with an interest-free period may be best.

View More Best Personal Loans for Good Credit

Best for peer-to-peer loans of up to $25,000

Peerform is a marketplace lending platform that connects borrowers nationwide with investors. Borrowers with a credit score of 600 or higher may qualify for loans of up to $25,000.

Before You Apply

  • Minimum FICO credit score: 600
  • Loan amounts: $4,000 to $25,000
  • Repayment terms: undisclosed
  • Better Business Bureau rating: A

Best Features

  • Some borrowers with fair credit may qualify.

  • Borrowers can complete the entire loan process online.

See full profile

Best for loan amounts of up to $50,000

Upgrade is an online lender that offers personal loans and lines of credits nationwide. Borrowers can qualify for up to $50,000 in financing.

Lender Highlights

  • Minimum FICO credit score: Not disclosed
  • Loan amounts: $1,000 to $50,000
  • Repayment terms: 36 to 60 months
  • Better Business Bureau rating: A+

Best Features

  • Loans and lines of credit are available up to $50,000.

  • Borrowers can complete the entire loan process online.

See full profile

Best for FICO scores between 580 and 669

LendingPoint, which specializes in loans for borrowers with fair credit, has offered online personal loans since 2014. The lender, operating in 49 states and the District of Columbia, provides loans as large as $25,000.

Before You Apply

  • Minimum FICO credit score: 600
  • Loan amounts: $2,000 to $25,000
  • Repayment terms: 24 to 48 months
  • Better Business Bureau rating: A+

Best Features

  • Loan funds are available as soon as one day after approval.

  • Borrowers with fair credit may qualify.

See full profile

Best for low costs

Discover is a digital bank and payment services company known for its credit cards. But Discover also offers other products including fixed-rate personal loans of up to $35,000 to borrowers in all 50 states and Washington, D.C. The lender boasts no fees as long as you pay on time.

Before You Apply

  • Minimum FICO credit score: 660
  • Loan amounts: $2,500 to $35,000
  • Repayment terms: 36 to 84 months
  • Better Business Bureau rating: A+

Best Features

  • Discover has no fees other than a late fee.

  • Customizable loan terms from 36 to 84 months.

  • Borrowers get free access to their FICO credit score.

See full profile

Best for flexible loan terms

Axos Bank launched in 2000 and is owned by San Diego-based Axos Financial. You won’t find any brick-and-mortar branches, but the bank has offices throughout the country. Aside from personal loans, Axos Bank offers CDs, plus checking, savings, money market and retirement accounts.

Before You Apply

  • Minimum FICO credit score: 720
  • Loan amounts: $5,000 to $35,000
  • Repayment terms: 12 to 60 months
  • Better Business Bureau rating: A+

Best Features

  • The loan application process is completely digital because Axos Bank is online only.

  • Flexible loan terms are one to five years.

  • You can borrow between $5,000 and $35,000.

See full profile

Best for below-average credit

FreedomPlus is an online lender offering personal loans ranging from $7,500 to $40,000. Loans are available to qualified borrowers with a minimum FICO credit score of 620.

Before You Apply

  • Minimum FICO credit score: 620
  • Loan amounts: $7,500 to $40,000
  • Repayment terms: 24 to 60 months
  • Better Business Bureau rating: A+

Best Features

  • Borrowers with fair credit may qualify for a loan.

  • Loans of up to $40,000 are available.

  • Same-day approval is available, with loans funded in as little as 48 hours.

See full profile

Best for post-sales support

Prosper is a peer-to-peer lending marketplace that allows borrowers to apply online for fixed-rate, fixed-term loans. Prosper matches borrowers with partner investors including Sequoia Capital, Francisco Partners, Institutional Venture Partners and Credit Suisse Fund. Since its founding in 2005, Prosper has expedited more than $18 billion in loans. Prosper lends to borrowers with fair to excellent credit with a minimum 640 FICO score.

Lender Highlights

  • Minimum FICO credit score: 640
  • Loan amounts: $2,000 to $40,000
  • Repayment terms: 36 to 60 months
  • Better Business Bureau rating: A+

Best Features

  • Prosper offers preapproval with a soft credit check.

  • Small-dollar loans of $2,000 or more are available.

  • Joint personal loans are available.

See full profile

Best for short-term loans

U.S. Bank offers both short- and long-term personal loans with fixed interest rates.

Before You Apply

  • Minimum FICO credit score: 680
  • Loan amounts: $1,000 to $25,000
  • Repayment terms: three to 60 months
  • Better Business Bureau rating: A+

Best Features

  • Loan funds are paid out relatively quickly.

  • U.S. Bank doesn’t charge an origination fee.

See full profile

Best for small loan amounts

OneMain Financial offers secured and unsecured personal loans through its nationwide network of branches. The lender provides loans of up to $20,000.

Before You Apply

  • Minimum FICO credit score: Not disclosed
  • Loan amounts: $1,500 to $20,000
  • Repayment terms: 24 to 60 months
  • Better Business Bureau rating: A+

Best Features

  • Secured and unsecured options are available.

  • Borrowers can prequalify with a soft credit check.

See full profile

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.

Source link