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Here are the best personal loans right now:
According to data from Experian, personal loans were the fastest-growing type of loan in 2019. Credit scores play a big role in your ability to get a personal loan, and how much you’ll pay to borrow the money. The better your credit score, the lower your interest rate is likely to be, and the less you’ll pay in interest over the life of the loan. Credit scores fall into five categories in a range of 300 to 850, according to FICO.
- Very poor : below 579
- Fair : between 580 and 669
- Good : between 670 and 739
- Very good : between 740 and 799
- Exceptional : above 800
While credit does have an impact on your interest rate, it’s worth noting that interest rates can also change on their own, fluctuating based on the bank’s cost of borrowing called the federal funds rate. While there are alternatives to borrow money, like 0% APR credit cards and home equity loans, they don’t always work for every person or situation. If a personal loan seems like the right fit for you, here are the best for several different situations.
LightStream : Best personal loan overall, best personal loan for excellent credit
SunTrust Bank created Lightstream for online loans, and the bank offers personal loans for things like home remodels, medical debt, and debt consolidation. While mainly catering towards borrowers with better credit, interest rates are fairly low.
Interest rate range: 3.99% to 19.99%* APR with Auto Pay (Rates as of 10/27/2020. Rates vary by loan purpose).
Look out for: High credit score requirements. Lightstream’s minimum credit requirement for a personal loan is 660, so this lender might not be right for all credit types.
2. SoFi Personal Loan: Best personal loans for good credit
SoFi’s personal loans have a minimum credit score requirement of 680, at the lower end of what’s considered a good credit score. Interest rates on these loans range by about 13 percentage points, making for a smaller range than offered by other companies. This means interest rates for borrowers with relatively lower credit scores can only go so high.
Interest rate range: 5.99% to 18.28% APR (with Auto Pay)
Look out for: A relatively high minimum income for approval. According to loan comparison site Credible, less than 1% of borrowers approved for personal loans through SoFi have an income less than $50,000 per year, and a majority make more than $100,000.
Wells Fargo: Best personal loans for debt consolidation
As a longstanding bank, Wells Fargo offers a variety of loan types. Its personal loans offer low interest rates, smaller minimum borrowing amounts, and shorter terms than others. Wells Fargo offers loans between $3,000 and $100,000, for payoff terms as short as 12 months. Borrowers who want to get their debt under control quickly might find that Wells Fargo’s personal loans are flexible enough to tackle debt consolidation.
Interest rate range:5.49% to 24.49% APR
Look out for:
Secured and unsecured loan options. With secured loans, you’ll be putting up collateral to protect your loan. That could mean your home or your car at risk if you don’t pay. While secured loans can offer lower interest rates, they can put very important assets in jeopardy. Wells Fargo is the only one of our top picks to offer secured loans. Additionally, it’s worth noting Wells Fargo’s history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues associated with creating fake accounts several years ago.
Avant Personal Loans: Best personal loans of 2020 :
Personal loans are generally offered to those with better credit scores, but online lender Avant offers personal loan options for borrowers with credit scores as low as 580. It has a lower limit than other lenders, with $35,000 as the maximum loan amount.
Interest rate range: 9.95% to 35.99% APR
Look out for:
Administrative fees. Avant’s personal loans carry a fee of up to 4.75% of your loan’s value. Considering that many of the other loans on this list don’t carry administrative fees, prepayment fees, or origination fees, Avant’s fee is high. It’s also worth noting that interest rates are high from this lender. While this is a good option for anyone with credit scores in the upper 500s and lower 600s, those with better credit could find better rates elsewhere.

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