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Americans looking for a quick loan often turn to a personal loan, with many providers funding them in as little as a day. These loans also often don’t require collateral, like a home or a car, to secure them, and sometimes offer lower rates than credit cards (see some of the best personal loan rates here). “Personal loans have the benefit of fixed interest rates, faster approval times and fewer fees,” LendingTree’s senior economist Jacob Channel told MarketWatch Picks previously.
That said, they can be pricey: High inflation and interest rate hikes this year by the Federal Reserve have pushed personal loan rates higher. And some companies are better than others.
If you’re in the market for a personal loan, we have analyzed personal loan reviews on 10 of the leading financial sites in America — including The Ascent/Motley Fool, Bankrate, Business Insider, CNBC, CNET, Forbes, Investopedia, Money, NerdWallet and WalletHub — to deliver the most recommended personal loan providers on the market today. Our ranking, which we will update every month, will include accounts with the best annual percentage rates (APR), terms and loan amounts.
Winner: 10 best-of awards
Annual percentage rate (APR) range: 8.99%-25.81%
Loan amount: $5,000-$100,000
Available term lengths: 2-7 years
Late fees: None
Origination fee: None
Funding timeline: Up to 7 days
Minimum credit score: 650
Pros
- Joint loan options available
- Rate discounts
- Hardship program offered
- Mobile app for loan management
- Pre-qualification options available
- Loan may be funded in as little as 2 days
- High loan maximum amounts
Cons
- Not able to choose initial payment date
- High minimum loan amount
- Direct payment to third-party creditors for consolidation isn’t available
- Co-signers not permitted
- Some applicants report difficulty qualifying
Winner: 9 best-of awards
Annual percentage rate (APR) range: 7.99%—25.49%
Loan amount: $5,000 – $100,000
Available term lengths: 2-12 years
Late fees: None
Origination fee: None
Funding timeline: Same-day funding available
Minimum credit score: Good credit
Pros
- Competitive APR
- No late fees or origination fees
- Same-day funding available
- High maximum loan amount
- Long loan terms available
- No fees
Cons
- Pre-approval not available for personal loans
- High credit requirements
- Limited due date flexibility
- High minimum loan amount
Winner: 7 best-of awards
Annual percentage rate (APR) range: 5.20% – 35.99%
Loan amount: $1,000 – $50,000
Available term lengths: 3 or 5 years
Late fees: 5% of the last amount due or $15, whichever is greater
Origination fee: 0% to 12% of the target amount
Funding timeline: Next-day funding available
Minimum credit score: None
Pros
- Open to borrowers with fair credit
- May accept those with insufficient credit history and without a credit score
- Flexibility to change payment dates
- Low minimum loan amount
Cons
- High late fees
- High origination fees
- $10 fee to request paper copies of loan agreement
- Only three and five year terms available
Winner: 6 best-of awards
Annual percentage rate (APR) range: 9.95% – 35.99%
Loan amount: $2,000 – $35,000
Available term lengths: 1-5 years
Late fees: THIS WAS LEFT BLANK
Origination fee: 5% one-time origination fee
Funding timeline: Next-day funding available
Minimum credit score: 580
Pros
- No prepayment penalty
- Funds may be deposited the next business day
- Long loan terms
- Low minimum credit score
Cons
- Multiple fees
- High maximum APR
- Low maximum loan amount
- Administrative fee
Winner: 6 best-of awards
Annual percentage rate (APR) range: 7.99% – 24.99%
Loan amount: $2,500 – $40,000
Available term lengths: 3-7 years
Late fees: $39
Origination fee: None
Funding timeline: Same-day funding available
Minimum credit score: 680
Pros
- No interest if repaid within 30 days
- Low minimum APR
- No origination fees
- Can pay creditors directly
- Multiple payment options including mail, check and pay by phone or app
Cons
- High late fee
- No co-borrowers permitted
- Low maximum loan amount
- No auto pay discounts
Winner: 5 best-of awards
Annual percentage rate (APR) range: 11.52% – 24.81%
Loan amount: $5,000 – $40,000
Available term lengths: 2-5 years
Late fees: 5% of monthly payment or $15, whichever is greater
Origination fee: 0% to 5%, based on creditworthiness
Funding timeline: Same-day funding available
Minimum credit score: 640
Pros
- Loan approval comes with membership and customer support
- No early payoff fees
- No late fees
- Free monthly FICO scores
- Simple application process
- Customer service available on weekends
Cons
- High minimum loan amount
- Soft inquiry must be submitted to see origination fees and details
Winner: 5 best-of awards
Annual percentage rate (APR) range: 7.74% to 17.99%
Loan amount: $600 – $50,000
Available term lengths: 1-5 years
Late fees: $29
Origination fee: None
Funding timeline: Up to 2 business days after verification
Minimum credit score: 580
Pros
- Loans as low as $600 available
- Co-borrower options available
- Physical branch locations available to members
- Membership available to anyone who applies
- Customer service available 7 days a week
Cons
- Late fees
- Low maximum loan amount
- Funds paid in physical check
- Membership required
Winner: 4 best-of awards
Annual percentage rate (APR) range: 8.49%- 35.99%
Loan amount: $1,000-$50,000
Available term lengths: 2-7 years
Late fees: $10
Origination fee: 1.85%-8.99%
Funding timeline: Up to 4 business days if sent to the borrower and 2 weeks if sent to creditors
Minimum credit score: 580
Pros
- Co-borrower options available
- Wide range of loans
- Next-day funding is possible
- Cash bonus available for signing up
Cons
- Low maximum loan amount
- High origination fees
Winner: 4 best-of awards
Annual percentage rate (APR) range: 8.99%- 35.99%
Loan amount: $2,000-$50,000
Available term lengths: 3 to 5 years
Late fees: $15
Origination fee: 0.99%-8.99%
Funding timeline: Up to 3 business days
Minimum credit score: 600
Pros
- Low minimum APR offered
- Low minimum loan amount offered
- Next-day funding available
- Direct payment options available for debt consolidation
Cons
- Good credit needed
- No autopay discounts
- High maximum APR
- Low maximum loan amount
Winner: 3 best-of awards
Annual percentage rate (APR) range: 7.99% – 35.99%
Loan amount: $2,000-$36,500
Available term lengths: 2-6 years
Late fees: $30
Origination fee: Up to 10%
Funding timeline: Soon as 1 day after approval
Minimum credit score: 600
Pros
- Wide range of potential terms
- Available in most states (Nevada and West Virginia excluded)
- Low minimum annual income of $35,000 required
- Low minimum borrowing amount
Cons
- High origination fees
- High maximum APR
- Low maximum loan amount
Our methodology for choosing personal loan providers
Every month, our team scours the internet in search of personal loan provider recommendations from industry experts to bring you the very best of the best, including NerdWallet, Forbes, CNET, CNBC, Investopedia, Bankrate, Money, WalletHub, The Ascent/Motley Fool and Business Insider. We then rank these accounts based on the total number of recommendations. Winners are determined by the number of times they appear on any of these experts’ lists. Simply put, financial institutions that appear the most will be deemed the winner.
Frequently asked questions (FAQs):
What is a personal loan?
In finance, personal loans are (typically unsecured) loans made by financial institutions such as banks, credit unions or online lenders to borrowers for various personal expenses. Personal loans are provided based on various factors including, but not limited to, a borrower’s creditworthiness and ability to pay it back.
What can personal loans be used for?
Personal loans can be used for everything from home improvements to medical bills to vacations or other personal expenses. They can also be used for debt consolidation purposes. However many lenders may include their own set of restrictions for how the funds can be used.
How do I know if I’m eligible for a personal loan?
Minimum requirements to receive a personal loan differ from one financial institution to the next. That’s why it’s critical to review your credit score, credit history and ensure the lender’s terms align with your own income level
How do I apply for a personal loan?
Depending on the financial institution, applying for a personal loan can include several steps. This MarketWatch Picks guide walks you through what you will need to apply for a personal loan.
Before applying make sure you know your credit score, which will help determine your ability to qualify for a loan. Typically, the higher your credit score, the more likely you are to qualify for a loan and at a more favorable the annual percentage rate (APR).
Once you’ve found the terms and APR favorable to you and your financial situation, the next step you’ll need to take is to pull together your financial documents, review the terms and fill out an online loan application. This process may include the loan company running a credit check; this can impact your current credit score, so be sure to read all of the fine print.
Can I prequalify for a personal loan?
Most lenders will allow you to prequalify for a personal loan without impacting your credit score. Before you run a credit check, you’ll want to know what kind of check a lender will run.
- Soft credit check: This is more of an inquiry made by either yourself or a financial institution into your personal credit score. This form or credit check is typically just used for pre-approval offers and for background checks and does not have an impact on your credit score.
- Hard credit check: These checks look for outstanding credit, including credit cards, loans or other debt, as well as any missing or incomplete payments from the past six years, and can impact your credit score by as much as 10 points, according to a Bankrate report.
What documents do I need to apply for a personal loan?
Before applying for a loan, you will likely need to pull together a lot of paperwork and financial documents to prove your financial standing. These can include everything from bank statements; personal identification, such as a diverse license or passport; proof of income such as pay stubs and tax returns; and proof of address, such as utility bills or a lease or mortgage statement.
How long does it take to receive a credit score?
Credit scores are critical in determining how much of a loan you might be eligible for and what terms you may be able to receive. For those without a credit score and starting from scratch, building one can take anywhere from two to six months of credit activity, or even longer for a good credit score.
What is considered a good credit score?
Generally speaking, credit scores are ranked from bad to excellent based on someone’s creditworthiness. FICO, one of the most commonly known credit scoring systems, ranks these scores from 300 all the way to 850.
- Poor: 300-629
- Fair: 630-689
- Good: 690-719
- Excellent: 720-850
What happens if I can’t repay my loan?
If you are unable to pay your loan, this balance will likely go from delinquency to default and can end up in collections. If they remain unpaid after a collections agency purchases the loan from your original lender, borrowers may be subject to layquits, a lien on your personal property or a garnishment of your wages.
What’s more, the longer your balance goes past due, and the further it collects fees and interest, the more this unpaid loan will negatively impact your credit score. If you are unable to make a payment, it’s advised to reach out to your lender and discuss other options to keep up with your loan. This may include hardship programs or refinancing options.
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