Best Personal Loans of 2025

Personal loans are installment loans that often come with fixed interest rates. You receive a lump sum upfront that can be used for almost any purpose, including home renovations, debt consolidation, and emergency expenses.

Our selections for the best personal loans have competitive interest rates, quick funding, and positive borrower reviews.

Reviews of the 7 best personal loan companies

We’ve reviewed personal loan lenders to determine which are best for borrowers based on their credit profile and financial goals. Here are our explanations for why each made our list.

• Best marketplace: Credible
• Best for excellent credit: LightStream
• Best for good credit: SoFi^®
• Best for fair credit: Upgrade
• Best for thin credit: Upstart
• Best for credit card debt: Happy Money 
• Best for a secured loan: Best Egg

Credible

Best Marketplace

5.0 _/5

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Why Credible is one of the best

Credible¹ is an excellent choice because of its free online marketplace, where borrowers can submit one application and compare actual offers from multiple lenders.

By comparing rates and terms in one location, borrowers can ensure they choose the best personal loan offer while avoiding having to submit one application for each lender.

Credible’s platform also caters to a diverse range of credit profiles, making it a terrific option for those with bad to excellent credit. The ability to view customized loan options based on one’s unique financial background makes Credible a standout choice in the personal loan market.

• Compare prequalified rates from multiple lenders
• No application or origination fees
• Checking your rate doesn’t affect your credit score

• Only shows offers from its partners

Rates (APR)	6.99% – 35.99%
Loan amounts	$600 – $200,000
Repayment terms	1 – 10 years

Eligibility requirements

• Soft credit check: Yes
• Minimum credit score: Varies by lender
• Minimum income: Varies by lender
• States: All 50 states and D.C.

Repayment terms

Because Credible is a platform that displays multiple personal loan offers, repayment details will vary by lender.

LightStream

Best for Excellent Credit

4.8 _/5

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Why LightStream is one of the best

LightStream offers competitive APRs on its personal loans, as well as large loan amounts of up to $100,000. Depending on your loan type, you could choose a loan term of two to 12 years, a range that gives you plenty of flexibility to repay your loan.

LightStream is unique for its Rate Beat Program. If you find a better rate on an unsecured personal loan from another lender, LightStream will beat it by 0.10 percentage points. LightStream also caps its rates much lower than most other personal loan lenders.

However, you should be confident in your credit score and income before applying. Unlike most other lenders on our roundup of the best personal loans, LightStream does not allow you to get prequalified. This means you can’t find out if you’re likely to get approved—you’ll need to apply, which means a hard inquiry on your credit report.

• Offers multiple loans customized to different uses
• No application, origination, or prepayment fees
• May reduce your rate by 0.10 percentage points if you find a lower rate elsewhere

• Checking your rate requires a hard credit check

Rates (APR)	7.49% – 25.49%
Loan amounts	$5,000 – $100,000
Repayment terms	2 – 12 years

Eligibility requirements

• Soft credit check: No
• Minimum credit score: 660
• Minimum income: Not disclosed
• States: All 50 states and D.C.
• Other requirements:
  • Few to no delinquencies in your payment history
  • Stable and sufficient income
  • A variety of financial accounts, all in good standing

Repayment terms

LightStream’s repayment terms range from two to 12 years, and you’ll manage repayment entirely online. If you enroll in autopay (payment comes directly from your bank account automatically each month), LightStream will reduce your interest rate by 0.50%. If not, you’ll pay by invoice, and you’ll need to make payments each month manually.

At any time, whether you’re paying by autopay or invoice, you can make extra payments toward the principal balance to help pay off the loan faster. There are no prepayment penalties for early loan payoff.

SoFi

Best for Good Credit

5.0 _/5

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Why SoFi is one of the best

SoFi² is an online lender that offers personal loans from $5,000 to $100,000. In addition to fast approval and no fees, you can sign up for automatic loan payments and receive a 0.25% interest rate reduction.

• Funds available as soon as the same day
• Pays off credit card issuers and adds a 0.25% rate discount
• Check your rate without affecting your credit in 60 seconds

• A high minimum loan requirement of $5,000

Fixed rates (APR)	8.99% – 29.99% with all discounts
Loan amounts	$5,000 – $100,000
Repayment terms	2 – 7 years

Eligibility requirements

• Soft credit check: Yes
• Minimum credit score: 650
• Minimum income: Not disclosed
• States: All 50 states and D.C.
• Other requirements:
  • Must be a U.S. citizen, permanent resident, or visa holder (J-1, H-1B, E-2, O-1, or TN)
  • At least 18 years old
  • Employed, have sufficient income from other sources, or have received an offer of employment to start within the next 90 days

Repayment terms

SoFi’s repayment terms range from two to seven years, and you’ll manage repayment entirely online. If you enroll in autopay (payment comes directly from your bank account automatically each month), SoFi will reduce your interest rate by 0.25%.

SoFi does not charge late fees. If you want to pay the loan off early, you don’t have to worry about prepayment penalties.

Upgrade

Best for Fair Credit

4.9 _/5

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Why Upgrade is one of the best

Upgrade is a solid choice for fair-credit borrowers. This lender will also fund personal loans starting at $1,000, which could appeal to borrowers seeking a low loan amount. Upgrade can fund your loan within one business day of verifying your application.

However, all Upgrade personal loans have a one-time origination fee between 1.85% and 9.99% of the amount borrowed, representing the cost to underwrite the loan. This cost is factored into your overall APR, reflecting fees and interest rates.

• Review multiple loan options to choose your best terms
• Funds are available in as little as one day
• Accepts joint applications
• Check your rate without affecting your credit

• Charges an origination fee of 1.85% to 9.99%

Rates (APR)	8.49% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	2 – 7 years

Eligibility requirements

• Soft credit check: Yes
• Minimum credit score: 580
• Minimum income: Not disclosed
• States: All 50 states and D.C.
• Other requirements:
  • Must be a U.S. citizen, permanent resident, or in the U.S. on a valid visa
  • Must be 18+ years old (19+ in Alabama and other select states)
  • Must be able to provide verifiable bank info and have a valid email

Repayment terms

Upgrade’s repayment terms range from two to seven years, and you’ll manage repayment entirely online. To get the lowest rate with Upgrade, you need to opt into autopay, which automatically pays your loan balance from your bank account each month.

Late payments are subject to penalties, but there is no fee for paying off the loan early.

Upstart

Best for Thin Credit

4.8 _/5

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Why Upstart is one of the best

Upstart accepts borrowers with credit scores of 300—the lowest possible. Upstart offers prequalification online, so you can check your rates without impacting your credit score.

Rather than just credit score, Upstart uses an artificial intelligence-powered alternative lending model to determine whether you qualify for a loan. Upstart relies on various factors to assess your finances and make an approval decision.

Upstart may charge an origination fee for your personal loan, as much as 12% of the amount borrowed.

• Funds can be available as soon as the next day
• Check your rate without affecting your credit in 5 minutes

• Charges an origination fee of up to 12%

Rates (APR)	7.80% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	3 – 5 years

Eligibility requirements

• Soft credit check: Yes
• Minimum credit score: None
• Minimum income: $12,000
• States: All 50 states and D.C.
• Other requirements:
  • Must have a verifiable name, date of birth, and Social Security number
  • Must be 18+ years of age
  • Must have a job (or job offer or verifiable source of regular income), valid email address, and U.S. address
  • Must meet minimum credit underwriting requirements (that is, an established credit history); if no credit history, borrowers must be enrolled in a degree program (associate, bachelor’s, or more advanced) at an accredited school
  • Must have a valid bank account

Repayment terms

Upstart’s repayment terms range from three to five years, and you’ll manage repayment entirely online. Upstart lets you set up recurring payments online, and you can also split your monthly payment into two, smaller payments throughout the month. There is no prepayment penalty for paying off your personal loan early.

Happy Money

Best for Credit Card Debt 

4.8 _/5

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Why Happy Money is one of the best

Happy Money offers an unsecured personal loan called the “Payoff Loan.” Happy Money’s Payoff Loans can help you consolidate and pay down credit card debt.

Depending on your preference, you can ask Happy Money to pay your creditors or deposit your loan in your checking or savings account. Happy Money designed its loans to pay off credit card debt.

• Choose your terms, pay-off date, and monthly payment
• Can pay off credit card companies directly
• Check your rate without affecting your credit

• A high minimum loan balance of $5,000
• Funds can only be used to pay off credit card debt

Rates (APR)	12.45% – 17.99%
Loan amounts	$5,000 – $40,000
Repayment terms	2 – 5 years

Eligibility requirements

• Soft credit check: Yes
• Minimum credit score: 640
• Minimum income: Not disclosed
• States: All 50 states and D.C.
• Other requirements:
  • No delinquencies on your credit report

Repayment terms

Happy Money’s repayment terms range from two to five years, and you’ll manage repayment entirely online. Happy Money encourages customers to use the automatic payment feature, which pays your bill each month automatically by withdrawing funds from your bank account. That said, you can opt into manual payments.

If necessary, you may be eligible to change your payment date. You can only do this once every 12 rolling months. Happy Money doesn’t charge late fees or prepayment penalties for paying off your loan early.

Best Egg

Best for a Secured Loan

4.8 _/5

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Why Best Egg is one of the best

Best Egg offers unsecured and secured personal loans up to $50,000. Its secured loans are available to homeowners. Unlike a home equity loan, which your home secures, items in your home secure a Best Egg loan. These include light fixtures, cabinets, and vanities.

According to Best Egg, qualifying homeowners can take out a secured loan in 24 hours without completing additional paperwork. Whether you’re opting for an unsecured or secured loan, Best Egg lets you check your rates online without impacting your credit score.

• Possibility to receive lower rates than with an unsecured loan
• Funds are available in as little as 24 hours
• Check your rate without affecting your credit

• Requires you to secure your loan with personal items in your home
• An origination fee of 0.99% to 9.99%

Rates (APR)	7.80% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	3 – 5 years

Eligibility requirements

• Soft credit check: Yes
• Minimum credit score: 600
• Minimum income: Not disclosed
• States: All 50 states and D.C.
• Other requirements:
  • Must be a U.S. citizen currently living in the U.S. or a permanent resident currently living in the U.S.
  • Must be of legal age (varies by state)
  • Must have a valid checking account, email, and physical address (no PO boxes)

Repayment terms

Best Egg’s repayment terms range from three to five years, and you’ll manage repayment entirely online. You can opt into automatic payments within your Best Egg account so you never miss a payment. Within your account, you can also change your loan due date or change your monthly payment to two smaller payments each month.

Best Egg doesn’t charge any prepayment penalties for paying your personal loan off early or making additional payments ahead of schedule.

How to get the best personal loan rates

To get a good rate for a personal loan, you’ll have to do some extra legwork:

Improve your credit score

First and foremost, understand that your credit score is typically the largest determining factor when a lender sets your personal loan rate. Other factors, such as debt-to-income ratio and amount borrowed, may also play a role. If your credit score is in rough shape and you can wait to borrow the money, spend a few months improving your score before applying. 

Remember, improving your credit score takes time. If you are diligent, you may see small improvements in as little as 30 to 45 days, but larger changes will take months of positive changes. 

Want to get serious about improving your credit score? Consider opening a credit builder loan; though they can last years, positive impacts will start to reflect on your credit report quickly.

2. Get a cosigner

If your credit score isn’t in great shape but you need funds now, you can ask a trusted friend or family member—who has a strong credit score—to cosign the personal loan with you. This can improve your approval chances and may get you a lower interest rate.

3. Shop around

Don’t just go with the first personal loan you find. Use our roundup of the best personal loans, or use an online personal loan marketplace to get prequalified with multiple lenders. From there, compare offers and go with the best one.

4. Look at APRs, not interest rates

When comparing personal loans, look at the annual percentage rate (APR), not the interest rate. APRs include the loan’s interest rate and any associated fees. That means an APR is a more accurate reflection of the total cost of borrowing over the life of the loan.

Do I qualify for the best personal loans?

To qualify for the best personal loans, you’ll typically need an excellent credit score (800 or higher), a high income, and a low debt-to-income ratio. Each lender assesses applicants in its own way, but the more attractive you are as a borrower, the more likely you are to get that lender’s best rates.

How to get prequalified for a personal loan

Many lenders allow you to find out if you’ll likely be approved for a loan—and at what rate—by getting prequalified on their websites.

Prequalifying for a personal loan means you can check your customized rates with no obligation or impact on your credit score. You’ll enter a few basic personal details, such as your name, date of birth, Social Security number, and requested loan amount.

The lender will run a soft credit check and show you which loan offers you qualify for. Keep in mind: A prequalified offer isn’t set in stone. Your rates could change after you submit a full application and the lender runs a hard credit check.

How to compare personal loans

When you prequalify for a handful of loans, you’ll want to compare several factors to find the best personal loan for your needs. Here’s what you should be comparing:

• APR: The annual percentage rate represents the cost of your personal loan. The lower the rate, the less you’ll spend to borrow money over the life of the loan.
• Loan amounts: One lender may offer you a lower rate than another, but it may also not be willing to lend you as much money as the other. Make sure that the loan offer you go with will be enough to cover your expenses, such as a home renovation or medical bill.
• Repayment flexibility: Some lenders may have shorter repayment windows than others. A shorter repayment term results in higher monthly payments since you’ve got to pay off the full amount faster. Review your budget to determine how much you can afford to pay back each month; if the loan with the short repayment term results in high monthly payments you’ll struggle to afford, you should go with a different option.

Tip

Want to know if you got a good personal loan rate from a lender? Compare the rate you’ve been offered to the lender’s stated APR range. For instance, if the lender offers loans between 8.99% and 35.99% and you were offered a 14.99% APR, that’s 6% higher than the lowest possible offer from that lender.

Ask the expert

Rand Millwood

CFP®

Typically, the best way to determine you are receiving the best APR is to 1) find out from the credit reporting agencies what your credit score is, 2) research which lenders provide the best rates and repayment terms for your need and credit score, and 3) apply with three to four lenders that fit your criteria. This way, you can evaluate which gives you the best options for your needs and potentially take advantage of a rate match guarantee.

Is a personal loan my best option?

Whether a personal loan is your best option depends on your circumstances. A personal loan could make sense if you need to pay for a large expense or consolidate debt and qualify for a reasonable interest rate. 

Personal loans are also ideal if you need money fast; many offer same- or next-day funding.

On the other hand, a personal loan might not be the wisest choice if you get stuck with a high interest rate. It’s worth considering other financing options, which could include: 

• Credit card 
• Home equity loan or line of credit (HELOC)
• Loan from a friend or family member
• Cash from your own savings 

The table below breaks down when these options might make more sense than a personal loan:

Borrowing option	When it makes sense	What to know
Credit card	If you qualify for a card with a 0% intro APR	Make sure you pay off the debt before the promo period ends
Home equity loan or HELOC	If you’re a homeowner with significant equity	You risk losing your house if you don’t repay your loan, and funding times are longer
Loan from a friend or family	You have bad credit and can’t qualify for alternatives	Make a plan to repay the loan promptly to avoid a strain on your relationship
Cash from savings	If you’ve built an emergency fund	Focus on rebuilding your savings before the next emergency occurs

Ask the expert

Rand Millwood

CFP®

Usually, using cash on hand is your best first option because it doesn’t cost you anything or require payments. However, you don’t want to use all the cash you have on hand in the case of an emergency. A HELOC may be a good option depending on your cash flow situation, home equity situation, and the need for the funds. Remember you typically can’t write off the interest on a HELOC if the funds aren’t used for upgrading your home. A loan from a friend or family can be a tough situation. Credit cards are typically a last resort as the interest rates are high.

How to apply with the best personal loan providers

If you’re looking to get a personal loan, here are the steps to apply: 

1. Check your credit. Start by checking your credit score and reviewing your credit report so you know what you’re working with as you go into the loan process. If you spot errors on your credit report, dispute them to have them removed. 
2. Determine your loan amount. Figure out how much you need to borrow and can afford to pay back. If the lender subtracts an origination fee from your loan proceeds, take that into account when you make your request. 
3. Prequalify with several lenders. Shop around with multiple lenders so you can find a loan with the best rates and terms. Often, you can get prequalified for a personal loan in a matter of minutes.
4. Select your loan offer. Compare features such as APR, fees, and repayment terms to determine which loan offers the lowest borrowing costs. 
5. Submit a full application. Once you choose a loan, you’ll complete an official application with your personal details and required documentation, such as pay stubs or tax returns. At this point, the lender will run a hard inquiry on your credit. Some lenders may approve you within a few hours, but others may take a couple of business days.
6. Get your funds, and start paying your loan back. Your final steps will be to sign your loan agreement and receive your funds. Check when your first payment is due, and consider setting up automatic payments so you don’t miss any bills. While some online lenders can offer same- or next-day funding to your bank account, others may require a few days to get the money. Online lenders are your best bet for faster loan funding.

You could get a personal loan the same day you start researching them, especially if you have all the information you need on hand and go with an online lender. That said, getting approved for a personal loan—and having it funded—could take a week or more, depending on the lender and your circumstances.

FAQ

How does a personal loan work?

A personal loan is an installment loan you pay monthly over a set period, often between three and seven years. You might get a lump sum as a direct deposit into your account when you borrow a personal loan. Some lenders will also send direct payments to your creditors if you use the loan for debt consolidation. 

Most personal loans are unsecured, so you must meet a lender’s underwriting requirements for credit and income to qualify. However, some lenders also offer secured loans backed with collateral. Secured loans may have more lenient qualification requirements, but you risk losing your assets if you can’t repay them. 

Can I take out a personal loan online?

Yes, you can take out a personal loan online. In fact, you can often find better deals (lower APRs and higher loan amounts) when shopping for online lenders, and the funding process is often faster. 

Plus, you can use online personal loan marketplaces to compare multiple lenders in one spot to ensure you get the best deal.

To take out a personal loan online:

1. Research multiple lenders. This will help you understand their rates, credit score requirements, loan amounts, and processing times.
2. Get prequalified. When you’ve narrowed your list to a few lenders, get prequalified to see customized rates without impacting your credit score. You’ll need to complete a form online with basic info such as your name, Social Security number, and requested loan amount.
3. Apply. Choose a lender and submit a formal application online based on your prequalification offers. Many online lenders approve you within minutes and can fund your bank account within a business day.

Online personal loans offer several pros:

• Fast approval and funding.
• Competitive rates.
• Lower credit score requirements, in some cases.

But they also have some downsides. For instance, there’s no in-person help. If you want that personal touch while you navigate a personal loan, you’re better off choosing a brick-and-mortar lender with a location near you.

How can I know if a personal loan lender is reputable? 

To determine if a lender is legitimate and reputable, turn to customer reviews. You can find reviews on sites like Better Business Bureau and Trustpilot, as well as on Google and the lenders’ social media profile. This is especially useful when analyzing online personal loan lenders.

Look for positive reviews on third-party websites, as well, and survey friends, family, colleagues, and neighbors to see if they’ve gotten a personal loan—and if they had a positive experience. Relying on loved ones in the community is a great way to assess local brick-and-mortar lenders.

	BBB	Trustpilot
Credible	A+	4.8 stars (7,643 reviews)
Lightstream	A	1.5 stars (80 reviews)
SoFi	A+	4.5 stars (8,641 reviews)
Upgrade	A+	4.4 stars (40,790 reviews)
Upstart	A+	4.9 stars (47,042 reviews)
Happy Money	A+	3.9 stars (374 reviews)
Best Egg	A+	4.6 stars (9,263 reviews)

What’s the average personal loan rate today?

According to the latest data from the Federal Reserve, the average personal loan rate for a two-year loan is 12.35%. This varies by credit score, however. Someone with an excellent credit score averages 11.30%, while someone with poor credit pays an average 25.20% APR.

What can I use a personal loan for?

A personal loan can be used for almost any purpose, as long as it’s legal. Common uses include debt consolidation, home improvements, and medical bills.

Some lenders set certain restrictions on personal loan uses, so check with your lender for any guidelines. For instance, some lenders say you can’t use a personal loan for investing, gambling, a down payment on a home, or postsecondary education expenses. 

How do personal loan rates compare to credit cards?

Personal loan rates may be lower than credit card rates, so some consumers take out a personal loan to consolidate credit card debt. However, your personal rate depends on your credit profile and other factors. 

Borrowers with excellent credit may qualify for rates around 7% or 8% APR. Borrowers with bad credit, however, may get stuck with rates on the higher end of a lender’s range, which can hit 36% APR.

According to the most recent Consumer Financial Protection Bureau data, the average credit card rate was a record high of 22.8% in 2023. It’s also important to note that personal loans are usually fixed interest, while credit cards are a form of revolving credit, typically with variable interest rates.

How many personal loans can you have at a time?

There’s no limit to the number of personal loans you can have at one time as long as your lender approves it. Owing significant debt, however, may make it difficult to meet a lender’s underwriting requirements for a debt-to-income ratio. 

Can you refinance a personal loan?

Depending on the lender’s guidelines, you may qualify to refinance your personal loan with another personal loan. If your credit has improved since you borrowed the original loan, you might qualify for a new loan with a better rate. Then, you can use your new loan to pay off your old one. 

How does a personal loan affect my credit score?

A personal loan can affect your credit score for better or worse, depending on how you pay it back. If you make on-time payments, a personal loan can increase your credit score, and late payments will drag it down.

When you borrow your personal loan, you may also see your credit score fall by a few points after your lender runs a hard credit inquiry. However, your credit score should bounce back within a few months if you pay your bills on time.

How we selected the best personal loans

Since 2017, LendEDU has evaluated personal loan companies to help readers find the best personal loans. Our latest analysis reviewed 1,029 data points from 49 lenders and financial institutions, with 21 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Higher star ratings are ultimately awarded to companies that create an excellent borrower experience with affordable financing solutions. This includes offering online eligibility checks, cost transparency, little to no fees, and other unique benefits to support borrowers in repayment.

Recap of the best personal loans