Best Personal Loans Of April 2024 (2024)

Best Personal Loans of April 2024

• SoFi – Best for High Loan Amounts
• LightStream – Best for Low Interest Rates
• LendingPoint – Best for Fast Funding & Below-Average Credit
• Upgrade – Best for Bad Credit
• Universal Credit – Best for Comparing Multiple Offers
• Discover – Best for No Interest If Repaid Within 30 Days
• Upstart – Best for Loans as Low as $1000
• Avant – Best for Range of Repayment Options

*Some APRs and loan amounts are available only for certain loan purposes.

The above personal loan rates and details are accurate as of April 1, 2024. Some APRs and loan amounts are available for certain loan purposes.

Summary: Best Personal Loans

Company	Company - Logo	Forbes Advisor Rating	Forbes Advisor Rating - Image	Minimum Credit Score	Current APR range	Loan amounts	Learn More CTA text	Learn more CTA below text	LEARN MORE
SoFi®		4.0		650	8.99% to 29.99%	$5,000 to $100,000	Compare Rates	Via Credible.com's Website
LightStream		4.0		660	7.49% to 25.49%	$5,000 to $100,000	Compare Rates	Via Credible.com's Website
LendingPoint		4.0		600	7.99% to 35.99%	$2,000 to $36,500	Compare Rates	Via Fiona.com's Website
Upgrade		3.5		580	8.49% to 35.99%	$1,000 to $50,000	Compare Rates	Via Credible.com's Website
Universal Credit		3.5		580	11.69% to 35.99%	$1,000 to $50,000	Compare Rates	Via Credible.com's Website
Discover		3.5		660	7.99% to 24.99%	$2,500 to $40,000	Learn More	Read Our Full Review
Upstart		3.5		300	7.80% to 35.99%	$1,000 to $50,000	Compare Rates	Via Credible.com's Website
Avant		3.5		580	9.95% to 35.99%	$2,000 to $35,000	Compare Rates	Via Credible.com's Website

How To Compare Best Personal Loans

Consider these tips when comparing personal loans:

• Where possible, prequalify.Many personal loan providers offer prospective borrowers the ability to prequalify for a loan. This means the applicant can submit details about their financing needs, income, housing situation and other relevant information to find out what kind of loan amounts, rates and repayment terms they are likely to qualify for. Even better, this process typically only requires a soft credit inquiry so you can shop around without hurting your credit score.
• Consider the purpose of your loan.While personal loans can be used for a pretty broad range of purposes, they are limited to things like consumerdebt consolidation, home improvements, vacations, weddings, funerals, large purchases and other personal expenses. For that reason, lenders often restrict the use of personal loans for postsecondary education expenses, business purposes and illegal activities, at a minimum. When considering a lender, confirm that your intended use of the loan is permissible under its borrower agreement.
• Keep an eye out for additional fees.Some lenders offer fee-free personal loans that don’t require borrowers to payorigination fees, late payment fees, prepayment penalties or any other common loan costs. However, this is more the exception than the rule, so it’s important to ask about fees when shopping for the best loan terms. And, if a lender charges an origination fee, find out whether it’s built into the APR or taken out of the loan amount prior to funding, as this may impact the loan amount you need to request.
• Evaluate the lender’s customer support options.If you’ve found a lender that’s prepared to offer the money you need at acceptable terms, there’s one more thing to consider before signing the loan agreement. While customer support may not seem like a big deal in the honeymoon phase of your loan, it can make a huge difference if you encounter issues with payments or face a financial hardship during your repayment period. Review the lender’s customer service resources and read reviews from past and current borrowers to make sure it’s a good fit.

Complete Guide to Personal Loans

• Current Average Personal Loan Interest Rates
• What Is a Personal Loan?
• Reasons To Get a Personal Loan
• What Loan Term Length Should You Choose?
• Pros and Cons of Personal Loans
• Best Place To Get a Personal Loan
• How To Get a Personal Loan
• Recap of the Best Personal Loans of 2024
• Methodology
• FAQs

Current Average Personal Loan Interest Rates

Average Personal Loan Interest Rates By Credit Score

Here are the average estimated interest rates for personal loans based onVantageScorerisk tiers, according to Experian. Please note that interest rates are determined and set by lenders. The rates provided are estimations.

While lenders determine and set rates, as an applicant, you can increase your chances of receiving a low-interest personal loan.

Best Personal Loans by Credit Score

• Best Personal Loans for Excellent Credit
• Best Personal Loans for Good Credit
• Best Personal Loans for Fair Credit
• Best Bad Credit Personal Loans

What Is a Personal Loan?

A personal loan is a type of lump-sum financing borrowers can get from a traditional bank, credit union or online lender, which they can use for a variety of expenses. Common uses include medical bills, auto repairs,home improvement projectsand debt consolidation. Personal loans typically have repayment terms between two and seven years and offer interest rates as low as 3% for high-qualified borrowers.

Read More:How Do Personal Loans Work?

Reasons To Get a Personal Loan

You can use personal loans for just about any type of personal expense. Most commonly, though, personal loans are good for:

1. Emergency expenses. If you need money right away for unexpected expenses like medical bills, funeral costs, car repairs or something else that needs immediate attention, you can use an emergency personal loan.
2. Debt consolidation. Personal loans are a great way to consolidate high-interest debt to help save money on interest and streamline your payments.
3. Home improvements and repairs. If you have an upcoming home project, you can take out a home improvement personal loan to help finance the costs. You can also use personal loans for unexpected home repairs or maintenance expenses.
4. Auto financing. While auto loans are the most common way to finance a vehicle, personal loans also can help you get the job done. Personal loans have fewer restrictions on the types of cars you can purchase, but they typically charge higher interest rates than traditional auto loans.
5. Moving costs. Thecost of movingcan add up quickly. If you don’t have cash on hand, a personal loans for moving can help you finance the costs.

Who Is a Personal Loan Right For?

A personal loan is right for someone who needs cash to cover an expected expense or consolidate debt. Although personal loans can be crucial in an emergency, they can be expensive and in some cases, can become a burden once they need to be repaid.

When you take out a loan, you’ll repay the amount and any interest and fees. This means your expense will cost more than the price tag you see. For example, let’s say you have auto repairs of $2,000 and you take out a one-year loan with an interest rate of 11%. You would owe $121.16 in interest, bringing your total balance to $2,121.16.

Use a personal loan calculator to see what a personal loan could cost you, including interest. The loan calculator can also give you an idea of what your loan payments could look like as well.

What Loan Term Length Should You Choose?

Much like your loan amount, personal loan term lengths play a key role in determining both your monthly payment and interest charges. Loans with shorter terms come with larger monthly payments but less interest overall. Longer term loans, however, offer smaller monthly payments at the cost of more interest paid over the life of your loan.

For example, if you borrow $3,000 over one year with 11% interest, you’d owe $265 per month and $182 in interest overall—a total of $3,182. Now let’s say you extend that same loan over three years. You’d owe $98 per month but $536 in total interest—or $3,536 for the full loan amount and interest. This makes it clear that you can save money by opting for shorter loan terms, but that’s only possible if you’re able to afford the higher monthly payment.

Pros and Cons of Personal Loans

Pros

• Interest rates and monthly payments remain fixed throughout the life of the loan
• Fewer qualification requirements than other financing methods, such as lower minimum credit score requirements
• You can use personal loans for a variety of reasons

Cons

• You have to repay the full amount of your loan, even if you end up not needing it all
• Borrowers pay interest on the full loan amount
• Possible origination fees between 1% and 8% of the loan amount

Best Place To Get a Personal Loan

You can get personal loans from three types of institutions:

• Online lenders. These are often technology-based non-bank companies that offer a small range of lending products, including personal loans. Online lenders typically offer low interest rates, loans that are available nationally and can provide funds within 24 to 48 hours.
• Banks. Many local and national banks offer personal loans in addition to other financial products, such as checking and savings accounts. If you have an existing relationship with a bank, you may want to consider opening your personal loan through that bank.
• Credit unions. These are local to your community and tend to offer applications both online and in person. Credit unions require membership, so be sure to check if you’re eligible.

The best place to get a personal loan is where you can access the most favorable terms and loan limits that fit your needs.

Related: Where To Get A Personal Loan

How To Get a Personal Loan

While the process varies by lender, follow these general steps toapply for a personal loan:

• Check your credit score.Start by checking your credit score for free through your credit card issuer or another website that offers free scores. This will give you an understanding of your creditworthiness and your qualification chances. Aim for a score of at least 610; however, a score of at least 720 will yield the most favorable terms.
• If necessary, take steps to improve your credit score.If your score falls below 610 or you want to boost your score to receive the best terms possible, take time toimprove your credit scorebefore applying, such as lowering your credit usage or paying off unpaid debts.
• Determine how much you need to borrow.Once you check your credit score, calculate how much money you want to borrow. Remember, though, you’ll receive your money as a lump sum, and you’ll have to pay interest on the entire amount—so only borrow what you need.
• Shop around for the best terms and interest rates.Many lenders will let youprequalifyprior to submitting your application, which lets you see the terms you would receive with just asoft credit inquiry. Prequalifying lets you shop around for thebest rateswithout hurting your credit score.
• Submit a formal application and await a lending decision.After you find a lender that offers you the best terms for your situation, submit your application online or in person. Depending on the lender, this process can take a few hours to a few days.

Related:5 Personal Loan Requirements To Know Before Applying

Recap of the Best Personal Loans of 2024

Rank	Company	Company - Logo	Forbes Advisor Rating	Forbes Advisor Rating - Image	Learn More CTA text	Learn more CTA below text	Learn More
1	SoFi®		4.0		Compare Rates	Via Credible.com's Website
2	LightStream		4.0		Compare Rates	Via Credible.com's Website
3	LendingPoint		4.0		Compare Rates	Via Fiona.com's Website
4	Upgrade		3.5		Compare Rates	Via Credible.com's Website
5	Universal Credit		3.5		Compare Rates	Compare rates from participating lenders via Forbes Advisor
6	Discover		3.5		Compare Rates	Via Fiona.com's Website
7	Upstart		3.5		Compare Rates	Via Credible.com's Website
8	Avant		3.5		Compare Rates	Via Credible.com's Website

Related: Compare Personal Loan Rates

Methodology

We reviewed 29 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the 8 best lenders based on the weighting assigned to each category:

• Loan details.20%
• Loan cost.35%
• Eligibility and accessibility.20%
• Customer experience.15%
• Application process.10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our.