Best Online Loans: Borrow Over the Internet

Getting a loan isn’t as hard as it used to be. In your grandparents’ days, they had to put on their Sunday best, set up a meeting with a local banker, and make their case live and in-person.

Today? Thanks to the plethora of online loans there are available, all it takes is the few clicks of a button. (You don’t even need to change out of those sweatpants).

Are you in need of a quick loan to get you by in a pinch? Here’s everything you need to know about finding and applying for loans online.

In this guide:

• Where to get a loan online
• Pros & cons of internet loans
• Online loans vs. payday loans: There’s a big difference
• How to get a loan online
• What to consider when comparing online loans

Where to get a loan online

You can get a number of different loan types online, but the most common (and typically most flexible) option is the online personal loan.

Personal loans are usually unsecured loans, meaning you don’t need collateral, and you can use them for virtually any purpose you need. You can also apply for them in a matter of minutes and often receive your funding as soon as the next business day

To get an idea of what the best personal loans are online, check out our list below. We’ve broken them down by credit category to help make your search more successful.

• If you have good credit
• If you have fair credit
• If you have bad credit

Best online loans for good credit

If you have a good credit score (think at least 660 or higher), then you can typically have your pick of online loan lenders. Want to make sure you get the best? We’ve rounded out our top-rated ones below.

LightStream

LightStream is a top-rated online lender that offers personal loans, car loans, debt consolidation loans, and more. It charges no origination fees or prepayment penalties, and there are discounts available if you’re willing to enable autopay. The lender also offers one-day funding in some cases.

• LendEDU rating: 5.00 / 5.00
• Minimum credit score: Not disclosed
• Loan amount: lightstream-perl-40-amountlow – lightstream-perl-40-amounthigh
• Loan terms: lightstream-perl-40-termlengthrange_m
• APRs: lightstream-Perl-40-alllow – lightstream-perl-40-allhigh
• Origination fee: $0
• Prepayment penalties: lightstream-perl-40-prepayfee
• Full review: LightStream Personal Loan Review

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SoFi

Our No. 2 highest-rated online personal loan is from SoFi, an online lender that offers personal loans, student loan refinancing, investing services, and more.

Loans come in fixed- and adjustable-rate options, and there’s even an unemployment protection feature that lets you pause your payments if you lose your job.

The lender also offers discounts if you have more than one product with them. SoFi is generally best for high-income borrowers.

• LendEDU rating: 4.87 / 5.00
• Minimum credit score: sofi-perl-36-mincreditscore
• Loan amount: sofi-perl-36-amountlow – sofi-perl-36-amounthigh
• Loan terms: sofi-perl-36-termlengthrange_y
• APRs: Fixed rates from sofi-perl-36-fixlow% – sofi-perl-36-fixhigh%
• Origination fee: $0
• Prepayment penalties: sofi-perl-36-prepayfee
• Full review: SoFi Personal Loan Review

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Best online loans for fair credit

If your credit is in the low- to mid-600s, you’ll pay a bit more in interest, but you still have quite a few online loan options. Let’s look at our top-ranked ones now.

Marcus

Marcus is an online lender owned by Goldman Sachs. It offers bank accounts, personal loans, Certificates of Deposit, and debt consolidation loans.

Marcus’ loans are highly flexible, letting you choose how much you want your monthly payment to be (and adjusting your term length accordingly). There are also no fees—origination, late payment, or otherwise. Borrowers are also allowed to skip a payment after staying on schedule for 12 months.

• LendEDU rating: 5.00 / 5.00
• Minimum credit score: marcus-perl-56-mincreditscore
• Loan amount: marcus-perl-56-amountlow – marcus-perl-56-amounthigh
• Loan terms: marcus-perl-56-termlengthrange_m
• APRs: marcus-perl-56-alllow – marcus-perl-56-allhigh
• Origination fee: $0
• Prepayment penalties: marcus-perl-56-prepayfee
• Full review: Marcus Personal Loan Review

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FreedomPlus

FreedomPlus is another online lender that’s best reserved for borrowers in the middle-range of credit scores. It offers personal and debt consolidation loans, and for some buyers, even same-day funding.

One caveat? The process can’t be done entirely online; you have to talk to a loan consultant on the phone to complete the application process.

• LendEDU rating: 4.38 / 5.00
• Minimum credit score: Not disclosed 
• Loan amount: freedomplus-perl-53-amountlow – freedomplus-perl-53-amounthigh
• Loan terms: freedomplus-perl-53-termlengthrange_y
• APRs: freedomplus-perl-53-alllow – freedomplus-perl-53-allhigh
• Origination fee: 0% – 4.99%
• Prepayment penalties: Not disclosed
• Full review: FreedomPlus Personal Loan Review

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Best online loans for bad credit

If your credit isn’t so strong, then you’ll have fewer online loans to choose from, and you’ll face significantly higher rates. Here are some of the top poor-credit internet loans we’ve analyzed.

OneMain Financial

OneMain Financial is a longstanding lender offering personal loans, debt consolidation loans, car refinancing, and more. You can apply online or in any of its 1,600 locations across the country.

The lender offers a variety of term options, and it uses more than just your credit score when evaluating your loan application.

• LendEDU rating: 5.00 / 5.00
• Minimum credit score: Not disclosed
• Loan amount: onemainfinancial-perl-51-amountlow – onemainfinancial-perl-51-amounthigh
• Loan terms: onemainfinancial-perl-51-termlengthrange_m
• APRs: onemainfinancial-perl-51-alllow – onemainfinancial-perl-51-allhigh
• Origination fee: 1% – 5%
• Prepayment penalties: onemainfinancial-perl-51-prepayfee
• Full review: OneMain Financial Personal Loan Review

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Avant

Avant offers personal loans with reasonable interest rates to borrowers with bad credit. The application can be completed online and you may receive your funds as soon as the next day.

While there is no minimum credit score listed on Avant’s website, it does say that most of its customers have a score between 600 and 700.

• LendEDU rating: 3.86 / 5.00
• Minimum credit score: None
• Loan amount: $2,000 – $35,000
• Loan terms: 24 – 60 months
• APRs: 9.95% – 35.99%
• Administration fee: 4.75%
• Prepayment penalties: $0
• Full review: Avant Review

>> Read more: Personal Loans for Bad Credit

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How we rate online lenders

Our online lender ratings are based on the weighted average of multiple data points, including a lender’s APR, terms, fees, customer support, and Better Business Bureau rating. Take a minute to learn more about our methodology.

Pros & cons of internet loans

Online loans vs. payday loans: There’s a big difference

The loans we’ve mentioned above are online personal loans, but there are payday loans out there you should be careful of. Payday loans are short-term loans that offer small amounts of cash (typically less than $1,000) in exchange for repayment out of your next paycheck.

Oftentimes, these loans prey on low-income individuals, charging sky-high interest rates and starting an ongoing cycle of debt and financial stress.

Make sure you understand the terms of your online loan, and always check reviews of your online lender before moving forward. Steer clear of predatory lenders that charge more than 36% APR, and stick to respected, well-reviewed lenders with reasonable rates and terms.

>> Considering a payday loan? Read our guide to the best short-term loans instead.

How to get a loan online

The online loan process is incredibly easy. With most lenders, you’ll only need to fill out a short form, submit to a credit check, and upload a little documentation to the lender’s online portal.

For many borrowers, funding happens within a few hours to a business day. (Keep in mind: The exact timing and process varies from lender to lender.)

What you’ll need to apply

Any type of personal loan—whether you’re applying online or in person—will require one or two forms of identification, personal information (like your Social Security number), proof of income, and a credit check.

Check out this full list of personal loan documentation to learn more about what documentation you may need to apply for your online loan.

What to consider when comparing online loans

Online loans make comparison-shopping both simple and convenient. But what should you be looking at when comparing your options and quotes from different lenders? Let’s look at a few components.

APRs

The APR—or annual percentage rate—indicates the overall costs to borrow across the year including both the interest rate and fees. An APR of 5% on a $30,000 loan, for example, would mean you’d pay about $1,500 in interest annually to borrow the money.

When you’re comparing offers from different lenders, it’s important to compare APRs and not just the interest rate, since one lender may have a lower rate but higher fees. You can learn more in our guide to APRs vs. interest rates.

Loan fees

Every lender charges slightly different fees. There are origination fees, late payment fees, application fees, and much, much more.

If you’re comparing APRs, some of these fees should already be accounted for. But there are other fees not included in the APR, such as late payment fees or prepayment penalties. You can learn more about them in our guide to common personal loan fees and charges.

Be sure to get a full breakdown of any fees you’d be expected to pay with each lender, so you can consider them in your decision, too.

Your repayment term & budget

You’ll need to compare the overall terms of each loan option, too. Longer repayment terms mean lower monthly payments, but they also mean paying more in interest in the long run.

Shorter terms mean a higher payment, but fewer interest costs over time. Which route is best for your budget? Sit down and evaluate your monthly income, debts, and other financial factors, and determine which loan options you can most comfortable handle.

Our personal loan calculator can help you determine how different repayment terms will affect your budget.

The bottom line

If you’re looking to get a loan online, the options are endless, but make sure to tread carefully.

Only consider well-reviewed and trusted online lenders (like those above) and steer clear of payday loans and predatory rates and practices. When in doubt, check out our arsenal of lender reviews just to be safe.