The Best Personal Loans of December 2024

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Interested in renovating your bathroom? Have some unexpected medical bills or auto repairs? Need to pay for a wedding? A personal loan could help you cover these costs. You can also use a personal loan to consolidate several high-interest debts into one monthly payment, which is helpful if your goal is to organize your finances. 

Many banks, credit unions and online lenders offer personal loans, and these loans are typically unsecured or not backed by collateral like your home or car. Since they’re unsecured, your creditworthiness will play a major role in whether you’re approved or not and the interest rate you’ll get. 

Depending on the lender, you could get a personal loan as small as $500 or as large as $100,000. Repayment terms also vary but commonly range from 12 to 60 months. It often takes as little as one business day to disburse a personal loan, making it a good option if you need funding fast. 

If you’re considering a personal loan to cover a significant expense, there’s no shortage of lenders. To help you narrow your options, we’ve pulled together a list of our top picks for personal loan lenders.

Best Personal Loans

• Best Overall: Citi
• Best for Bad Credit: Upgrade
• Best for Competitive Rates: LightStream
• Best for Consolidating Credit Card Debt: Happy Money
• Best for Fast Loan Funding: LendingPoint
• Best for Flexible Repayment Terms: Avant 
• Best for Secured Personal Loans: Best Egg
• Best for Small Loans: PenFed Credit Union
• Best for Thin Credit Profiles: Upstart

_{Loan results will vary based on creditworthiness, loan purpose, loan amount, and other factors.}

Best Overall

Citi® Personal Loan

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Secure application on issuer’s website

• Loan Amounts$2,000 ‐$30,000
• Loan Terms12 ‐ 60 months
• APR Range11.49% - 20.49%
• Minimum
  Credit ScoreExcellent credit

Citi® Personal Loans come with competitive rates, generous rate discounts, and no fees. Plus, enjoy same-day funding if you have an existing Citi bank account.

• Overview
• Pros & Cons

Overview

Borrowers who are looking for fast personal loans with zero fees (no origination fees, no late fees, no hidden fees) and competitive rates will find Citi® Personal Loans worth considering. Loans are also funded quickly after approval–same business day if you have an existing Citi account or within 2 business days without one. If you enroll in autopay, you’ll enjoy a 0.5% APR discount, which can help keep borrowing costs down. However, you’ll need to have excellent credit to qualify for its lowest rates.

Pros

• Autopay discounts available
• Same business day funding with Citi® account (or up to 2 days with non-Citi® account)
• Zero fees - No origination fee, no late fees, and no prepayment penalty

Cons

• No joint loans
• Loan maximum lower than other lenders
• Excellent credit required

Best for Bad Credit

Upgrade

Check Your Rate

• Loan Amounts$1,000 – $50,000
• Loan Terms24 – 84 months
• APR Range8.49% - 35.99%
• Minimum
  Credit Score560 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

Borrowers with less-than-stellar credit profiles may find Upgrade personal loans accessible, and its quick funding and flexible payment due dates convenient.

• Overview
• Pros & Cons

Overview

Upgrade offers personal loans that are accessible to those with not-so-ideal credit scores. The low loan minimum of $1,000 also makes it an easy choice for those with small financing needs. However, borrowers in certain states will be subject to higher minimum loan amounts. With this lender, you can expect to pay an origination fee. Borrowers can view their rate before applying without impacting their credit score. Overall, Upgrade is worth considering if you’re looking for a lender that is willing to work with lower credit scores and offers loans with competitive rates and flexible terms.

Pros

• Accessible to borrowers with bad credit
• Flexible loan terms
• Joint applications allowed
• Secured loan options
• Direct payment to creditors

Cons

• Has origination fees
• No physical branches
• Higher APRs than some competitors

Best for Competitive Rates

LightStream

Check Your Rate

• Loan Amounts$5,000 – $100,000
• Loan Terms24 – 144 months
• APR Range7.49% – 25.49% (with autopay)
• Minimum
  Credit Score660 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

LightStream is a solid online lender offering no fees, high loan maximums and low-rate personal loans for several purposes.

• Overview
• Pros & Cons

Overview

LightStream offers personal loans for several purposes, including debt consolidation, medical expenses, home improvement, weddings, car purchases and more, making this worth considering for those seeking flexibility. The lender offers relatively low rates compared to competitors, including autopay discounts. Its personal loans also have no origination fees or late fees, which can help keep borrowing costs low. However, borrowers will likely need to have good-to-excellent credit in order to be approved for a LightStream personal loan. Overall, it’s a good lender to add to your shortlist if you’re looking for flexible funding, no fees and a low APR. Lightstream may also disburse loans as soon as the same day you’re approved, making this lender a worthy choice if you need fast funding.

Pros

• Low minimum APR
• No origination fees, no late fees
• High loan maximum of $100,000
• Autopay discount
• Joint applications allowed

Cons

• Rates and terms vary by loan purpose
• No soft pull prequalification
• Must have good-to-excellent credit
• No physical branches

Best for Consolidating Credit Card Debt

Happy Money

Check Your Rate

• Loan Amounts$5,000 – $40,000
• Loan Terms24 – 60 months
• APR Range11.72% – 17.99%
• Minimum
  Credit Score640 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

Happy Money can help pay off and consolidate credit card debt into one fixed monthly payment.

• Overview
• Pros & Cons

Overview

Happy Money, formerly known as Payoff, offers loans for credit card debt payoffs. Eligibility is clearly stated online, so borrowers will appreciate the transparent criteria. Borrowers have the option to have Happy Money deposit funds directly to their credit cards to help streamline the payoff process. Funding can take between three to six business days, which is longer than other lenders, but still considered a decent turnaround time.

Personal loans are accessible to borrowers with fair credit, and there are no options for co-signers or joint applicants. Unfortunately, the loans are not available in Massachusetts or Nevada, so borrowers will need to look elsewhere for lending options.

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Pros

• No late fees
• Direct payment to creditors
• Prequalification with no hard credit check
• All loans come with a hardship payment protection plan

Cons

• Most loans can only be used to pay off credit card debt
• Has origination fees
• High loan minimum
• No joint or co-signed loans
• Not available in all states
• Funding slower than other lenders

Best for Fast Loan Funding

LendingPoint

Check Your Rate

• Loan Amounts$2,000 – $36,500
• Loan Terms24 – 72 months
• APR Range7.99% – 35.99%
• Minimum
  Credit Score600 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

LendingPoint offers fast personal loans with flexible credit requirements, making it accessible for borrowers with less-than-ideal credit.

• Overview
• Pros & Cons

Overview

LendingPoint uses technology to help evaluate potential borrowers and has more flexible credit score requirements than some competitors. Its personal loan APRs are fairly competitive, and loan funds can be disbursed in as soon as one business day. However, borrowers may need to pay an origination fee, ranging from 0% to 8% of the total loan amount. Still, LendingPoint’s low minimum credit score and lengthy maximum repayment term make it a compelling offering.

Pros

• Fast funding available
• Low minimum credit score requirement
• Long repayment terms up to 72 months

Cons

• Relatively low maximum loan amount ($36,500)
• No physical locations
• Origination fee may apply (0% to 8%)

Best for Flexible Payment Terms

Avant

Check Your Rate

• Loan Amounts$2,000 – $35,000
• Loan Terms12 – 60 months
• APR Range9.95% – 35.99%
• Minimum
  Credit Score580 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

Avant offers small personal loans that are accessible to borrowers with fair credit, with funding available as soon as the next day.

• Overview
• Pros & Cons

Overview

Avant is known for its personal loans that can be used for a wide range of purposes and are accessible for those with fair credit. Funding can be completed as soon as the next business day once approved. The minimum APRs tend to be higher than competitors, but the maximum APR is comparable to other online lenders. A unique feature offered by Avant is their flexible payment due date, which allows a 10-day grace period without incurring a late fee.

Pros

• Loan terms up to 60 months
• Low minimum credit score requirement
• Flexible payment due date
• Next day funding available

Cons

• No physical locations
• Origination fee of up to 4.75%
• Relatively low maximum loan amount ($35,000)
• High minimum APR
• No joint applicant or co-signer

Best for Secured Personal Loans

Best Egg

Check Your Rate

• Loan Amounts$2,000 – $50,000
• Loan Terms36 – 60 months
• APR Range8.99% – 35.99%
• Minimum
  Credit Score700 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

Best Egg provides fast personal loans, including unsecured and secured options.

• Overview
• Pros & Cons

Overview

You can use Best Egg loans for various purposes, including paying for moving expenses, home improvements, debt consolidation, weddings, adoption and more. Borrowers will pay origination fees and need a minimum annual income of $100,000 to qualify for their lowest rates. Best Egg products are not available for residents in Iowa, Vermont, West Virginia, the District of Columbia or U.S. Territories.

Pros

• Loans are funded as soon as the next day
• Loans up to $50,000
• Option for secured loans for homeowners

Cons

• No physical locations
• Has origination fees
• Steep income and credit requirements
• Doesn’t allow co-signers or joint applicants
• Not available in all states

Best for Small Loans

PenFed Credit Union

Check Your Rate

• Loan Amounts$600 – $50,000
• Loan Terms12 – 60 months
• APR Range7.99% – 17.99%
• Minimum
  Credit Score700 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

PenFed offers no fees and small personal loans as low as $600.

• Overview
• Pros & Cons

Overview

While you will need to become a PenFed member if you decide to get a personal loan there, anyone can apply for membership and the process is quick and simple. Many lenders have relatively high minimum loan amounts, but PenFed offers loans as small as $600, with no origination fees and competitive APRs. If you’d like to view personal loan rates with PenFed, you can do so without impacting your credit score.

Pros

• Pre-qualification is available
• No origination fee, hidden fees or prepayment penalties
• Borrow as little as $600
• Allows co-borrower
• Funding as early as 1-2 business days after approval

Cons

• Must be a member to receive the loan
• No option for direct payment to creditors for debt consolidation

Best for Thin Credit Profiles

Upstart

Check Your Rate

• Loan Amounts$1,000 – $50,000
• Loan Terms36 or 60 months
• APR Range7.8% - 35.99%
• Minimum
  Credit Score300 or above More Info

  A credit score is used to indicate the creditworthiness of an applicant, but it is only one of several factors considered for approval. These credit scores alone are not guarantees for approval and should only be used as guidelines.

Using artificial intelligence to help evaluate borrowers, Upstart is a unique lending platform that looks beyond your credit score for personal loan approval.

• Overview
• Pros & Cons

Overview

Upstart is a first-of-its-kind online lending platform that uses artificial intelligence to help make smarter lending decisions. This means the company considers factors beyond a borrower’s credit score to help determine creditworthiness. Upstart indicates its model has resulted in 43% lower rates for borrowers than traditional credit score models.

Beyond your credit score, Upstart will also look at your employment history, income and level of education when deciding whether to approve you for a loan. The company states that borrowers with credit scores as low as 300 might be able to get approved for a personal loan, though that loan may come with a relatively high APR.

Upstart’s rates are fairly competitive and loan funds are disbursed as soon as one business day after approval. This lender charges origination fees, so it’s important to read the fine print before applying.

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Pros

• Considers factors beyond your credit score in lending decisions
• Loans up to $50,000
• Fast funding time
• Check rate without affecting credit score
• Low minimum credit score requirement

Cons

• No physical locations
• Limited repayment terms
• Has origination fees
• High maximum APR
• Not available in Iowa or West Virginia

Average Personal Loan Rates

The current average personal loan rate varies based on many factors. Another thing to note is that you might not qualify for the lowest rate that's being advertised.

That's because the loan amount and rate you get approved for depends on a handful of factors:

• Credit score
• Income
• Payment history 
• Debt-to-income ratio

Low-interest loans are for those with excellent credit scores. If you have a low credit score, expect to pay more for your personal loan. 

It's key to prequalify for a personal loan so you can compare quotes from different lenders. That way, you'll know you're getting the best loan possible for your needs and situation.

What Can a Personal Loan Be Used for?

Personal loans can be used to cover a variety of large expenses, from home repairs to moving costs. You can also use them for debt consolidation, which can be helpful if you'd like to consolidate multiple high-interest debts into a single monthly payment. Here are some other common uses for personal loans:

• Medical expenses or veterinary bills
• Car repair bills
• Wedding expenses
• Home renovation or improvement costs
• Moving expenses
• Funeral costs
• Debt consolidation

While these loans have a variety of uses, there are also some restrictions to be aware of. For example, you generally won’t be able to use a personal loan for college tuition, a home down payment, gambling or illegal activities. 

Related Article

14 Ways You Can Use a Personal Loan

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Pros and Cons of Personal Loans 

How to Choose a Personal Loan

If a personal loan sounds like a decent option for your financial situation, it’s important to compare a few factors as you shop around with lenders. Doing so will help you get the best possible loan for your needs at an affordable cost. Here’s what to consider as you research different loans.

Accessibility 

As you compare lenders, research if they offer loans in your state. Some lenders only issue loans in certain states, while others offer loans that are available nationwide. 

Minimum Credit Score Requirement

Lenders generally require that borrowers have at least a 620 credit score to get approved for a loan, but some have lower credit score requirements. Research these requirements as you compare lenders, especially if you’ve previously struggled with your credit. And be aware that lenders typically reserve the lowest interest rates for borrowers with the highest credit scores.

Income Requirements

Some lenders also have annual income requirements for borrowers. For example, you might need an annual income of $30,000 to get approved for a personal loan. Look into income requirements for lenders you’re considering.

Interest Rates

The interest rates will help you determine how much the loan will cost you. The lowest rates aren't necessarily what you're eligible for. If you have strong credit, you typically are eligible for a low interest rate. Getting prequalified will help you see the true cost of the loan.

Loan Amounts

Looking to borrow $500? How about $50,000? Not all lenders offer personal loans in these amounts. Taking the time to compare loan amounts offered by different financial institutions can help you find the best option for you.

Fees

Origination fees, or the cost to process your loan, are common with personal loans. As you shop around, consider if each lender you’re considering charges an origination fee. These fees can range from 1% to 8% of the total loan amount, and they’re often deducted from your loan proceeds. So the loan amount you get might be slightly different than the amount you applied for. 

Repayment Terms

The amount of time you’ll get to pay off your personal loan can vary based on several factors, including the lender, the amount you borrow and more. While repayment terms of 12 to 60 months are common, you may also be able to get a shorter or longer term. Keep this in mind as you’re narrowing your options.

Special Features

Some lenders might offer unique perks, such as free financial counseling or a temporary pause on your loan payments should you lose your job. On the flip side, some might offer restrictions such as limitations on what you can spend your loan on. Be sure to check if there are any restrictions on a loan. 

Discounts

Some lenders offer a discount if you set up automatic payments or become a credit union or organization member. You could possibly swoop in on a relationship discount if you're an existing customer.

Customer Service

Should you have a question, need some guidance, or run into a snag or quandary, working with a lender with a responsive customer service team can make a huge difference. Check to see what hours the customer service crew is available and if they're available via chat or mobile app, and whether they can be reached via phone and email.

Ease of Use

Some lenders allow you to do everything entirely online, from applying for a loan to signing off on the loan documents to making payments. Is there a mobile app available to get your questions answered, upload documents, check the status of your loan and make payments?

If you prefer to speak to a human in person, does the lender have brick-and-mortar locations? That can help you stay on top of your loan and make for a smoother experience.

Related Article

How to Prequalify for a Personal Loan, and Why It Can Be a Good Idea

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Related Article

5 Reasons a Personal Loan Can Be Denied

Read More

The Bottom Line

If you need fast cash, personal loans are a flexible funding option. These loans typically have a relatively low interest rate compared to credit cards or payday loans, making them a good choice if you’re concerned about borrowing costs. While the lenders we’ve listed above offer solid options for personal loans, it’s always a good idea to compare with your specific financial situation in mind. Consider your needs and shop around to find the best option for you.

FAQs

• Can I still get a personal loan if I have bad credit?

  Yes, getting a personal loan is still an option if you have bad credit, as there are loans accessible to bad credit borrowers. You’ll most likely have stronger odds of getting a secured personal loan, which means offering collateral to back up the loan. Expect to probably pay a higher rate than a borrower with good credit will. The lender might also require that you apply with co-signers.

• How much does a personal loan cost?

  Interest rates can be anywhere from 3 to 36 percent. Other fees typically tacked onto a personal loan include origination, application and annual fees. You might also get pegged with late payment fees or prepayment penalties. Be sure to read the fine print and understand the terms.

• What’s the maximum amount I can borrow with a personal loan?

  Lenders offer different amounts, which can be anywhere from $100 to $100,000. However, you’ll usually see personal loan amounts capped at $50,000. How much you’ll be approved for depends on financial factors such as your credit score, credit history, debt-to-income ratio and the lender.

• How is my personal loan rate determined?

  The cost of a personal loan depends on your credit score and history, debt-to-income ratio and how much you make each year. The rate might also vary depending on whether you got the loan through a bank, credit union or online lender, which might have varying rates and slightly different lending criteria for the same amounts.