Best online loans of April 2024
Which is best for you depends on your credit profile and the loan’s purpose.
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If you’re shopping for an online loan, you’re spoiled for options. We’ve weeded through personal loans offered online by banks, credit unions, and online lenders to find the ones that offer the best customer service, most competitive annual percentage rates (APRs), shortest funding times, and more.
Compare online loan rates of April 2024
Fox Money rating
Fixed (APR)
6.99% - 25.49%
Loan Amounts
$5000 to $100000
Min. Credit Score
700
Fox Money rating
Fixed (APR)
7.80% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
620
Fox Money rating
Fixed (APR)
-
Loan Amounts
$2500 to $40000
Min. Credit Score
660
Fox Money rating
Fixed (APR)
8.49% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
600
Fox Money rating
Fixed (APR)
8.99% - 29.99%
Loan Amounts
$5000 to $100000
Min. Credit Score
Does not disclose
Fox Money rating
Fixed (APR)
8.99% - 35.99%
Loan Amounts
$2000 to $50000
Min. Credit Score
600
Fox Money rating
Fixed (APR)
-
Loan Amounts
$5000 to $35000
Min. Credit Score
700
Fox Money rating
Fixed (APR)
11.69% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
560
Fox Money rating
Fixed (APR)
-
Loan Amounts
$20000 to $200000
Min. Credit Score
660
Fox Money rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1500 to $20000
Min. Credit Score
540
Fox Business does not make or arrange loans.
Best online loans
The best online loan will depend on your financial situation and what you’re looking for in a lender. We’ve analyzed the top personal loan lenders offering online loans to find the best options, from lenders that cater to borrowers with great credit scores to ones that have more flexible credit requirements.
Best overall
SoFi
4.9
Fox Money rating
Est. APR
8.99 - 29.99%
Loan Amount
$5000 to $100000
Min. Credit Score
Does not disclose
Pros and cons
More details
Best for fast funding and fair credit
PenFed
4.6
Fox Money rating
Est. APR
8.49 - 17.99%
Loan Amount
$600 to $50000
Min. Credit Score
760
Pros and cons
More details
Best for fair credit
Upgrade
4.5
Fox Money rating
Est. APR
8.49 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
600
Pros and cons
More details
Best for no origination fees (and low rates)
Discover Personal Loans
4.4
Fox Money rating
Est. APR
-
Loan Amount
$2500 to $40000
Min. Credit Score
660
Pros and cons
More details
Best debt consolidation loans for bad credit
Universal Credit
4.3
Fox Money rating
Est. APR
11.69 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
560
Pros and cons
More details
Best home improvement loans and low rates
LightStream
4.2
Fox Money rating
Est. APR
6.99 - 25.49%
Loan Amount
$5000 to $100000
Min. Credit Score
700
Pros and cons
More details
Best for high close rates if pre-approved
Best Egg
4
Fox Money rating
Est. APR
8.99 - 35.99%
Loan Amount
$2000 to $50000
Min. Credit Score
600
Pros and cons
More details
Best for large personal loans
BHG Money
4
Fox Money rating
Est. APR
-
Loan Amount
$20000 to $200000
Min. Credit Score
660
Pros and cons
More details
Best bad credit personal loans
OneMain Financial
3.9
Fox Money rating
Est. APR
18.00 - 35.99%
Loan Amount
$1500 to $20000
Min. Credit Score
540
Pros and cons
More details
Best fast personal loans for all credit types
Upstart
3.9
Fox Money rating
Est. APR
7.80 - 35.99%
Loan Amount
$1000 to $50000
Min. Credit Score
620
Pros and cons
More details
Methodology
We evaluated the best online loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Our team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.
What is an online loan?
An online loan is a type of loan that you can apply for online and receive without having to go to a bank branch or other physical location. Many personal loans generally fit the description, so we've focused on personal loans as opposed to other types of loans, like home equity loans, that may have an offline requirement, such as a home appraisal. There are online-only lenders, and many traditional banks and credit unions now offer fully online loan processes as well.
Some financial institutions may offer a hybrid process where the initial application takes place online but the applicant then brings in physical documentation to complete it. However, fully online loan applications are becoming more common at most financial institutions.
With an online personal loan, you’ll receive a lump sum of money upfront that can be used for almost any purpose. The loan is then repaid in fixed installments with interest, generally over one to seven years. You can prequalify with many lenders to see what rate you may be approved for without hurting your credit. However, prequalifying is not an offer of credit, the final rate is not guaranteed to be the same, and you'll generally need to allow the lender to conduct a hard credit pull when you apply, which could ding your score.
Learn More: What is personal loan pre-approval?
How to compare online loan lenders
When you’re shopping for a loan, there are multiple factors to consider to determine which option is the best for you.
- APR: The annual percentage rate is the yearly cost of borrowing a loan, including the interest rate and upfront fees, expressed as a percentage of the amount borrowed. The higher your APR, the more interest you’ll pay on the loan.
- Loan amount: Loan amounts on personal loans can range from $600 to $100,000 or more, though the amount you’ll qualify for depends on the lender’s evaluation of your ability to repay it. Seek a lender that offers the loan amount you need.
- Repayment terms: Sometimes you can lower the overall cost of your loan by choosing a shorter repayment period. However, this will generally make your monthly payments larger. Most lenders offer 1- to 7-year repayment terms, but some loans can last 10 or more years, especially if used for home improvements or to buy a boat or RV.
- Fees: Some lenders charge an origination fee upfront. This can range as high as 12%, depending on your credit and where the lender caps such fees. Some lenders also charge late fees.
- Discounts: Some lenders give rate discounts if you choose autopay or allow the lender to pay your creditors directly when using the loan to consolidate debt. Even a quarter of a percentage point could save you hundreds of dollars over the term of the loan.
- Cosigner option: If you’re unable to get approved on your own, some lenders will let you apply with a cosigner, which is a friend or family member with good credit. But be careful, if you’re unable to make payments on your loan, a cosigner becomes responsible, which could damage their finances and your relationship. Not all lenders allow cosigners.
- Time to fund: If you need the money quickly, look for lenders with quick funding times. Some lenders offer same-day loan decisions and disbursements, which means you could potentially get money the same day you apply.
- Lender reputation: Check with the Better Business Bureau and look at online reviews to get a sense of how a lender is viewed by customers. To avoid scams, the Federal Trade Commission advises that you see if the lender is registered in your state, do research online, and don’t pay in advance.
Check Out: Best Fast Personal Loans
Pros and cons of online loans
Pros:
- Smoother, faster online process: Online lenders and personal loan marketplaces typically streamline the process. The application itself will be entirely online, and you can upload the necessary documentation and sign the final paperwork online as well.
- Quick funding times: Most online lenders can fund loans, once approved, within one to two business days. Some lenders even offer same-day personal loans if your loan is approved before the lender’s cutoff time.
- Unsecured loans: Most personal loans online are unsecured, which means you don’t need to pledge collateral, such as your house or car, to get the loan.
- Lower average rates than credit cards: The average credit card APR was 21.47% in November 2023, according to Federal Reserve data, while the average APR for a 24-month personal loan was 12.35%.
- Online process leads to lower cost for consumers: Since online lending processes reduce or eliminate the cost of maintaining and staffing physical branches, many lenders claim to pass those savings on to their customers via lower interest rates and fees — and some research has found that to be true. But always do your research and apply for the best rate available to you.
Cons:
- Difficult to qualify for: It may be difficult to get approved for an unsecured personal loan with bad credit.
- In-person customer service may be unavailable: If you choose to borrow from an online lender, it might be difficult or impossible to find an in-person customer service option. Even some traditional banks with online loans might not have a branch in your area. Make sure you’re comfortable using chat, email, or phone calls to get your questions answered and any issues resolved.
How to apply for an online loan
The actual application process will vary from lender to lender, but here are the basic steps:
1. Check your credit score
Your credit score has a huge impact on how much borrowing money will cost you. A high credit score means lenders are more likely to see you as a lower-risk borrower and offer you better rates. A low credit score will have the opposite effect — if your credit score is too low, you may find it difficult to qualify for a loan at all. Pull your credit report to see if there are errors bringing your score down. If there are, dispute them.
Knowing your score can also help you find lenders that are more likely to approve your application. Check your score against the lender’s minimum credit score requirement before submitting a formal application.
2. Prequalify with multiple lenders
Prequalify with multiple lenders to get a sense of the rates and terms you might be approved for. Not all lenders have a prequalification option, but most do. You can also use a personal loan marketplace to prequalify with multiple lenders at once, instead of having to prequalify multiple times at different lender websites.
Prequalification won’t hurt your credit score, but it’s not an offer of credit. Once you formally apply, the lender will conduct a hard credit check that could ding your score temporarily.
3. Compare loan quotes
Now take those prequalification quotes and compare APRs, fees, monthly payment amounts, loan amounts, terms, and other factors like lender funding times to see which is the best option for you.
4. Complete your application
Once you identify which loan is right for you, it’s time to complete the application. You’ll need to submit documentation to prove your identity, income, and place of residence, which typically includes a government ID, bank or tax statements, and employer information.
Ensure there are no typos or errors on your application to streamline the approval process. If you’re approved, carefully review the loan agreement before signing to ensure that you fully understand the terms of the loan.
5. Final steps and repayment
In addition to signing the loan agreement, you’ll need to provide the lender account information for where you want the funds to be sent, if you haven’t already done so.
Once you’ve finalized the loan and received the funds, make sure you’re ready for your first loan payment. Set your payments to automatically come out of your account or set a calendar reminder to help you remember.
Check Out: Best Personal Loan Rates
Fox Money rating
Fixed (APR)
6.99% - 25.49%
Loan Amounts
$5000 to $100000
Min. Credit Score
700
Fox Money rating
Fixed (APR)
7.80% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
620
Fox Money rating
Fixed (APR)
-
Loan Amounts
$2500 to $40000
Min. Credit Score
660
Fox Money rating
Fixed (APR)
8.49% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
600
Fox Money rating
Fixed (APR)
8.98% - 35.99%
Loan Amounts
$1000 to $40000
Min. Credit Score
660
Fox Money rating
Fixed (APR)
8.99% - 29.99%
Loan Amounts
$5000 to $100000
Min. Credit Score
Does not disclose
Fox Money rating
Fixed (APR)
8.99% - 35.99%
Loan Amounts
$2000 to $50000
Min. Credit Score
600
Fox Money rating
Fixed (APR)
9.95% - 35.99%
Loan Amounts
$2000 to $35000
Min. Credit Score
550
Fox Money rating
Fixed (APR)
-
Loan Amounts
$5000 to $35000
Min. Credit Score
700
Fox Money rating
Fixed (APR)
11.69% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
560
Fox Money rating
Fixed (APR)
11.72% - 17.99%
Loan Amounts
$3000 to $40000
Min. Credit Score
640
Fox Money rating
Fixed (APR)
-
Loan Amounts
$20000 to $200000
Min. Credit Score
660
Fox Money rating
Fixed (APR)
14.30% - 35.99%
Loan Amounts
$3500 to $40000
Min. Credit Score
640
Fox Money rating
Fixed (APR)
18.00% - 35.99%
Loan Amounts
$1500 to $20000
Min. Credit Score
540
Fox Business does not make or arrange loans.
Online loan alternatives
If an online loan doesn’t sound right for you, there are other options. Here are some to consider:
- In-person loans: If the online element is what’s throwing you, reach out to local banks and credit unions to see if you can apply for a loan at a branch nearby.
- Home equity-based loans: If you own a home with sufficient equity, you might consider tapping that equity instead. You could qualify for a lower APR, which could mean a lower monthly payment. But your home secures the loan, so if you default, the lender could foreclose. Also, home equity-based loans can take a month or more to close, and could result in higher interest costs over the life of the loan if you choose a long repayment term.
- Credit cards: Some credit card companies offer a 0% introductory APR to well-qualified applicants, which can be a good deal if you can repay the balance before that period ends.
- Family or friends: If you have family or friends that would be willing to lend you the money you need, you can avoid the online loan process altogether. Hammer out an agreed-upon repayment plan, and keep up your end of it to avoid damaging your relationship.
- Saving for large purchases: Instead of borrowing money for a large purchase, put it off and save for it instead. You could take on a freelance job or gig work to supplement your income to speed up the process. This has the benefit of saving you money you would otherwise pay to your lender as interest and fees.
Best online loans FAQ
Where can I get an online loan?
Online loans are available from online-only lenders, banks, and credit unions. You can apply directly on lender websites or through a personal loan marketplace.
Can I get an online loan with bad credit?
Many online lenders lend to borrowers with bad credit, but interest rates are likely to be higher, you may be charged an origination fee, and you may not qualify to borrow a large amount. If you have a co-borrower with good credit, such as a spouse or partner, you might consider applying with them to improve your application. Alternatively, you could apply with a cosigner with good credit and income, though fewer lenders offer this option.
Are online payday loans bad?
Payday loans are often a bad idea. Some scammers pose as online payday lenders to take advantage of desperate borrowers, and even legal online payday lenders usually charge extremely high fees. Payday loans have a long-held and well-deserved reputation for trapping borrowers in costly debt cycles that can be hard to break. Explore other options and familiarize yourself with your state’s laws governing payday loans before seeking one out.
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