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9 Best Personal Loans of May 2023
| Company | APR | Credit Score est. | Loan Amount | More Details | |
|---|---|---|---|---|---|
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Best for Younger Borrowers : SoFi
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- APR Range: 8.99% - 23.43%
- Loan Amount: $5,000 - $100,000
- Loan Terms: 24 months - 84 months
- Zero fees
- Same-day funding
- Unemployment protection
- Small loan amounts not available
- Rates a touch higher than other lenders
- Doesn’t allow co-signers, only co-borrowers
- Available in all states and Washington, D.C.
- Must have a source of income or a job starting in the next 90 days
- Must be a U.S. citizen, permanent resident, or non-permanent resident alien
Best With a Co-Borrower : PenFed Credit Union
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- APR Range: 7.74% - 17.99%
- Loan Amount: $600 - $50,000
- Loan Terms: 12 months - 60 months
- Pre-qualification available
- Membership open to anyone
- Smaller loan amounts available
- Allows co-borrowers, not co-signers
- Doesn’t offer any interest rate discounts
- Must join credit union if approved for a loan
- Must be a member of the PenFed Credit Union, or join during the application process
- Must be the age of majority in your state
- Must have a valid Social Security number or individual taxpayer identification number
- Must have a verifiable source of income
Best for Small Loans and Bad Credit : Upgrade
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- APR Range: 8.49% - 35.97%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 24 months - 84 months
- Relatively low minimum recommended credit score
- Next-day funding
- Can change payment due date
- Discounts for using other Upgrade products
- High origination fee
- Short-term loans not available
- Not available in Washington, D.C.
- Recommended credit score of 560 or higher
- Debt-to-income ratio of 75% or less
- Must have a valid email address and bank account
- Available in all states except for Washington, D.C.
- Must be a U.S. citizen or permanent resident or have a valid visa
Best Big Bank : U.S. Bank
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- APR Range: 8.74% - 21.24%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 12 months - 84 months
- Can apply in person
- Same-day funding available
- High customer satisfaction ratings
- More loan restrictions for non-customers
- Few borrower assistance plans
- Branch locations only available in 26 states
Big banks have a reputation for being not quite so customer-friendly, but that’s not the case with U.S. Bank, at least for personal loans. In addition to low rates on loans, it was rated as the second-best bank for quality customer service in 2022, according to a J.D. Power survey.
U.S. Bank’s personal loans are easiest to apply for if you’re already a customer, because you can do it all online. But if you’re not already banking with U.S. Bank, you can still apply for a personal loan. You’ll just need to apply in person, and you’ll be a bit more limited in your loan options (a maximum amount of $25,000, with a term length up to five years). Since U.S. Bank isn’t available in every state across the country, this means some people won’t be able to apply.- Must have a credit score of 660 or higher (higher for non-customers)
- Must be the age of majority in your state
- Must live in a state where U.S. Bank operates
- Must have a valid Social Security number
Best for Excellent Credit : Regions
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- APR Range: 7.99% - 29.99%
- Loan Amount: $2,000 - $50,000
- Loan Terms: 36 months - 60 months
- Ultra-low rates
- In-person applications accepted
- Can use savings or vehicles as collateral
- Limits on who can apply online
- Not available in Western or Northeastern U.S.
- Smaller loan limits for non-Regions customers
If you live in a state where Regions operates and you have excellent credit (usually defined as 800 or higher), consider yourself lucky. This lender offers some of the lowest-cost loans out there for people with excellent credit, although you can use collateral or find a joint applicant if your credit isn’t the best.
However, there are some limits to be aware of. If you’re not a current Regions customer, you’ll need to call or visit a Regions branch to apply. Only current Regions customers are eligible to apply online, and only if you’re applying as a solo applicant. Anyone with a joint applicant—current customer or not—will need to apply in person.- You must have a valid Social Security number.
- You must have a verifiable source of income.
- You must have a valid bank account.
- If you are a Regions customer, you must provide your online banking credentials or your ATM or debit card numbers.
Regions’ personal loans are only available in the 15 states—primarily in the South, Midwest, and Texas—where Regions operates.
Best for Debt Consolidation : Discover
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- APR Range: 6.99% - 24.99%
- Loan Amount: $2,500 - $40,000
- Loan Terms: 36 months - 84 months
- Quick funding
- 30-day interest-free loan guarantee
- Can send funds directly to old creditors
- Doesn’t offer any rate discounts
- Doesn’t allow co-signers or joint applicants
- Can’t use loan to consolidate debt from Discover
Discover offers some of the best personal loan rates for debt consolidation (or almost any other purpose, really). If you are consolidating debt, a good feature to look for is a lender who will send the funds directly to your old creditors to pay off your old debt. This saves you an extra step (and the temptation to not use the loan funds for their intended purpose). Discover does offer this ability.
However, if you’re looking to consolidate any other debt from Discover, such as its popular credit cards, you may need to find another 伟民配资_在线配资炒股:debt consolidation loan. Discover doesn’t allow you to use the funds to consolidate any other Discover debt. In addition, it does offer a nice interest-free money-back guarantee where you can return the loan funds within 30 days if you change your mind, but this doesn’t apply to debt consolidation loans since that money is generally already spent.
- Minimum recommended credit score of 660
- Must be the age of majority in your state
- Must be a U.S. citizen or permanent resident
- Must have an income of $25,000 or more
Loan funds cannot be used to repay a secured loan, such as a car loan, or to directly pay off a Discover credit card.
Best for Fair Credit : First Tech Federal Credit Union
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- APR Range: 8.99% - 18.00%
- Loan Amount: $500 - $50,000
- Loan Terms: 24 months - 84 months
- Secured loan options
- No membership restrictions
- Debt protection plans available
- Doesn’t offer rate discounts
- Doesn’t offer short-term loans
- Need to open a separate savings account
Credit unions have a reputation for being more willing to work with people who have fair credit (a score from 580–669, according to FICO) than your average lender, and First Tech FCU is no exception. The upper end of its APR range is quite low (18% is the maximum for credit unions), making for an excellent rate option for people who have fair credit. You can also use your stocks or First Tech FCU certificates and savings accounts as collateral for a secured loan, if necessary.
If you’re worried about being able to make your payments, First Tech FCU also has you covered here too. You can purchase an optional Debtsafe debt protection plan with your loan so that if something happens, you can have some of your payments or even your entire loan canceled entirely.- Must be the age of majority in your state
- Recommended credit score of 600 or higher (or have a creditworthy co-signer)
- Must be a member of First Tech FCU
- Have a family or household member that is a current member of First Tech FCU
- Work for one of the credit union’s partner employers
- Work or live in Lane County, Oregon
- Belong to the Computer History Museum or the Financial Fitness Association (you can join online; digital memberships start at $15 per year)
Best for Emergency/Quick Funding : Rocket Loans
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- APR Range: 9.12% - 29.99%
- Loan Amount: $2,000 - $45,000
- Loan Terms: 36 months - 60 months
- Same-day funding
- Able to change due date
- Rate discount for autopay
- High origination fee
- No co-signers or joint applicants
- Not available in Iowa, Nevada, and West Virginia
- Must be a U.S. resident
- Must be at least 18 years old
- Available in all states except Iowa, Nevada, and West Virginia
Best for Military Service Members : Navy Federal Credit Union
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- APR Range: 7.49% - 18.00%
- Loan Amount: $250 - $50,000
- Loan Terms: 6 months - 180 months
- Same-day funding
- Secured loan options
- Wide range of loan terms and loan amounts
- No option for pre-qualification
- Restrictive membership criteria
- Unable to modify payment due date
NFCU personal loans cover an extremely broad range of options. You can get a small $250 loan to tide you over until payday or take out a big $50,000 lump sum to consolidate your debt or remodel your home, for example. The only downside is there isn’t any pre-qualification option. But if you get all of your loan shopping done within two weeks the credit scoring models will mark those all as one credit inquiry, thereby limiting the damage to your credit score.
- Must be the age of majority in your state
- Must have a verifiable source of income
- Must be a member of the credit union
- Active duty service members
- U.S. military veterans
- Family members of qualifying service members or veterans
- Department of Defense civilian employees and retirees
Compare the 9 Best Personal Loans of May 2023
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Final Verdict
Personal loans are one of the most versatile financial products out there since you can use them for just about anything you want, and you can get one from nearly every lender. SoFi is a good choice for young borrowers with its low costs, helpful customer programs, and lightning-quick funding speed. If you prefer working with credit unions, PenFed or First Tech is your best bet unless you’re military, in which case we might recommend Navy Federal. Don’t be afraid to shop with big banks, either, because you might find some surprisingly low-cost options, such as with U.S. Bank.Guide to Choosing the Best Personal Loans
Best Place to Get a Personal Loan
If you’re looking for a personal loan, some of the best places to get one are banks, credit unions, and online lenders. If you need funds quickly, choose a lender that offers a simple online application and fast funding. Many banks and credit unions allow you to apply online and get funding quickly, but you’ll generally need to have good credit to get approved. If you don’t have good credit, an online lender is usually a better option.Should You Apply for a Personal Loan?
If you need funds to cover a large expense or want to consolidate existing debt, then you might consider applying for a personal loan. Personal loans are commonly used by people who need funding for a big expenditure, like paying for a wedding, covering emergency expenses, or making home improvements or repairs. Loan funds can also be used to consolidate higher-rate debt into a lower-cost fixed-rate loan.Personal loans can be a good option for those who need immediate funding and can afford the monthly payments. However, you’ll pay interest on the loan, so it’s more costly to use loan funds than to cover the same expenses using cash. Even so, the APRs on personal loans are usually lower than the rates you’ll pay on credit card debt. So, if you need to choose between using credit cards or personal loans, the latter is often the better choice.
One of the other benefits of an unsecured personal loan is that you don’t have to pledge any collateral, like your home or car, to get the loan. This can save you money because you don’t have to pay for costs associated with the collateral, such as appraisal fees. Plus, you may be able to get the funds more quickly because there’s no collateral involved. So, if you need funds to make home improvements, like repairing your roof, building a new office, or adding solar, a personal loan can be the way to go.Comparing Personal Loan Lenders
The most important things to consider when selecting a personal loan lender include the costs and terms of the loan, what it takes to apply, and how quickly you can get approved and funded. As you’re comparing personal loan lenders, pay close attention to these factors:- APR and fees: Personal loan rates and fees are the primary factors to consider before choosing a lender. Rates and fees are factored into the loan’s APR, which measures the annual cost of the loan. The better your credit, the lower the rate you’ll get.
- Repayment terms: Shorter repayment terms result in higher payments and usually carry lower interest rates. This means you may reduce your overall borrowing costs by choosing the shortest possible repayment term. However, just make sure you can afford the monthly payments before applying.
- Application process: It’s also important to consider the lender’s application process. You might want to get a loan at your local bank or credit union, which can be a great option. However, keep in mind that certain small lenders may not offer automated systems or online applications, making the application process more time-consuming. If you’d prefer to avoid applying in person, choose a lender that offers an online application.
- Approval and funding speed: The loan’s funding speed is often closely linked to the application process. Lenders that have online applications and automated processes are often able to get you funded more quickly. However, many of these lenders only approve borrowers with good credit. If you have blemishes on your credit, choose a lender with less stringent credit score requirements, like an online lender or a local bank or credit union that can make individual decisions based on your unique circumstances.
How to Get a Personal Loan
Once you’ve decided to get a personal loan, it’s time to get your paperwork in order and ensure your credit is in the best possible shape. Many lenders will start with a pre-qualification process, which involves pulling a 伟民配资_在线配资炒股:soft credit check on you. To pre-qualify, you’ll need to provide some personally identifiable information (such as your Social Security Number and date of birth), income details, the reason you need the funds, the amount you want to borrow, and how long you need to repay the loan.
While pre-qualifying doesn’t guarantee you’ll be approved for a loan, it does let you see the rate you may receive. If you’re quoted for a high rate, you can work on 伟民配资_在线配资炒股:repairing your credit before submitting a full application. Generally, the better your credit, the better the rate you’ll get.
If the rate is acceptable and you decide to move forward, you’ll then complete a full application. This will involve providing the lender with additional information, such as proof of income and details on your monthly debts. You’ll also undergo a hard credit check as part of the application process. If you’re approved for the loan, the lender will provide you with details about the loan terms, including the rates, fees, and repayment terms. Pay close attention to this information to understand the details before accepting the loan. If you don’t understand the loan details, speak with a representative to get clarification before proceeding. As soon as you’ve accepted the loan, the lender will send you the loan funds in the way you specified in your application. This can include directly depositing the funds into your bank account, sending the money to your creditors to pay off existing debt, or even writing you a check. You’ll also learn how to manage your loan, such as by logging into an online portal or using a mobile app. This can be helpful, as you’ll understand how to make your monthly payments and where to go if you need help in the future.What Is a Personal Loan?
A 伟民配资_在线配资炒股:personal loan is a predetermined amount of money given to an individual by a bank or private lender. It is usually unsecured and carries a fixed interest rate. The borrower must agree to the loan rate and terms and make on-time monthly payments until it is fully repaid. A personal loan can be used for several things, including paying off or consolidating debt, covering medical expenses, or making a large purchase.
How Do Personal Loans Work?
Personal loans work by lending a borrower money if they meet certain qualifications set by the lender. The money is paid back over time with interest. The borrower usually makes set monthly payments of principal and interest to repay the loan. A personal loan is often a more affordable option than a credit card because the interest rate is usually lower.
What's the Lowest Credit Needed for a Loan?
There are a wide variety of personal loan lenders; some only work with borrowers who have good or better credit, while others work with borrowers of all credit profiles. In general, the worse your credit, the more you'll pay to borrow money (in interest and other fees). Applying with a co-signer can improve your chances of qualifying with good terms. See our picks for the 伟民配资_在线配资炒股:best bad credit loans for a selection of lenders that work with a wide range of borrowers.
How Much Do Personal Loans Cost?
Some of the fees associated with personal loans are origination fees, prepayment penalties, late fees, and administrative fees. However, not all lenders charge the same fees. It’s important to check with the lender before getting a personal loan. Despite what fees the lender charges, the largest cost is going to be what you’re paying in interest. The average interest rate for a personal loan is 11.21%.
Methodology
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. To rate providers, we collected hundreds of data points across more than 40 lenders, including interest rates, fees, loan amounts, and repayment terms, to ensure that our reviews help users make informed decisions for their borrowing needs.:max_bytes(150000):strip_icc()/PersonalLoans_sakchai-vongsasiripat-592f7ec06ec443be8c7b25acfe29c2fb.jpg)
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