Personal loans are a way to borrow several hundreds of dollars to several thousands for a wide range of expenses. And since personal loans have lower rates than credit cards, according to Federal Reserve data, they can be a much more affordable borrowing option, as well as a great way to refinance high-interest credit card debt.
Good to know
The average annual percentage rate (APR) on a two-year personal loan was 12.49% in February 2024, according to the Fed, while the average credit card APR was 21.59%.
A personal loan is a type of installment loan offered by a wide range of banks, credit unions, and online lenders. They provide a lump sum of money up front that you can use for almost any purpose, depending on the lender (some lenders only approve loans for specific purposes, like debt consolidation). Since most are unsecured, you don’t need to provide any collateral, and loan approval can be quick — as soon as the same day you apply, in many cases.
As for repayment, the loan amount and interest are typically split into fixed monthly payments over a set term. Unlike credit cards, interest rates are usually fixed as well, which means you don’t have to worry about the rate increasing. In some cases, lenders also charge up-front fees — like origination fees.
Here's a breakdown of common personal loan features:
- APRs: APRs on most personal loans are between 7% and 36%, and fluctuate as interest rates rise and fall. The APR takes both the interest rate and any up-front fees, like an origination or administrative fee, into account, which makes it a good way to compare overall borrowing costs between loans and lenders.
- Repayment terms: Terms vary by lender, but are often available between 1 and 7 years. Personal loans used for home improvement could have repayment terms up to 12 years or longer.
- Loan amount: Available loan amounts vary by lender; the amount you'll qualify for depends on your income, current debt, and credit, among other factors. Many lenders offer personal loans up to $50,000. Some offer $100,000 personal loans or more. You can also find small personal loans for less than $5,000.
- Fees: Many lenders charge late fees and insufficient funds fees. Some also charge an origination fee. An origination fee is a percentage of the loan amount that's deducted up front. They vary by lender, and could be as high as 12%. An origination fee is one way a lender can minimize its risk on a loan, which is why bad-credit and fair-credit borrowers may pay higher origination fees compared to borrowers with good credit.
- Time to fund: Many lenders fund personal loans within 1 to 2 business days of approval. But some lenders offer same-day funding for approved applications submitted before a cutoff time. Other lenders could take up to a week to fund.
- Loan purpose: While personal loans can be used for a wide range of purposes (except for tuition and as a down payment), not all lenders approve all generally permitted loan purposes. Most lenders ask what you want to use the loan for in their prequalification process and provide a list of options. If your intended loan purpose is not on the list, it's possible the lender won't approve it.
Tip
Before applying, prequalify with multiple lenders to get rate estimates. Prequalification won’t hurt your credit, but you will need to provide personal information to get customized quotes. When you formally apply, your credit could be impacted.
There are a few different varieties of personal loan available. These are some of the most common:
- Unsecured personal loan: This is the type discussed above, and is the most common type of personal loan.
- Secured personal loan: A few lenders offer personal loans secured by an asset, such as your car or savings account. Secured loans can make sense if you want to lower your rate or are struggling to qualify. But not all lenders offer them.
- Cosigned loan: A cosigner is someone who applies for the loan with you. They share equal responsibility (in the lender’s eyes) for repayment, but do not share the loan funds. A cosigner with good credit can help you get approved for a personal loan, but they’re on the hook if you miss payments. Their credit will suffer along with yours if you make late payments as well.
- Credit-builder loan: This is more like a reverse personal loan, and is designed for those who can’t get approved for a regular personal loan or want to rebuild their credit. Instead of receiving money up front, you only get the loan funds until after you’ve finished making payments on the loan, with interest.
Personal loans can be used for a wide variety of expenses. It’s actually easier to say what they can’t be used for than to cover everything they can. Generally speaking, you can’t use a personal loan to pay for tuition or a down payment on a home, and many lenders restrict use for business expenses as well.
Here are some of the most common personal loan uses:
Home improvements can be expensive, making them hard to cover out of pocket. By taking out a personal loan, you can split the costs up over time at a rate that’s often less than the rate on a credit card. While home equity loans tend to come with even lower rates, personal loans can be better if you don’t yet have enough equity in your home, want to avoid closing costs and a lengthy approval process, or don’t want to take out a second mortgage.
Personal loans can also offer a helpful way to streamline the repayment of multiple debts. For example, suppose you have a credit card with a $2,000 balance, a medical bill with a $500 balance, and an Affirm loan with a $700 balance. If you can get approved for a $3,200 debt consolidation loan, you could use it to pay off all three debts. Then, you’d have one monthly payment instead of three. Further, if you can get an APR lower than the APR on your existing debts, you may be able to save money on repayment.
Sometimes life throws you an expensive curveball, like an emergency room visit, broken refrigerator, cracked windshield, or sick pet. When you can’t comfortably pay for something out-of-pocket or don’t want to, personal loans offer a way to split it up over time. With loan amounts ranging from $600 to over $100,000, they’re versatile and can come in handy for a wide variety of situations.
If you need (or want) to make a large purchase that you might otherwise put on a card, a personal loan could be a better option. Weddings, vacations, a new laptop, or a new bike are just a few items you can buy with a personal loan. Just note that not all lenders allow all loan purposes, so be sure to make sure any lender you’re considering allows you to use the money how you want.
Personal loan costs are expressed in terms of APR, which tells you how much you’ll pay per year if the interest and upfront fees were broken up evenly over your loan term. Personal loan rates generally range between 7% APR and 36% APR. But the APR a lender offers is based on a variety of factors including your creditworthiness, the loan amount you request, your income, the length of the repayment term, and more.
That said, average rates are most impacted by credit score. For example, the average personal loan interest rate on three-year loans was 12.50% for applicants with FICO scores over 780 in October 2024. However, for FICO scores between 600 and 639, the average rate was 32.28%.
To qualify for a personal loan, you’ll have to meet the lender’s eligibility requirements. While they vary by lender, most will review your credit scores, credit reports, income, employment situation, and debt-to-income ratio to assess the amount of risk you present. The higher your risk level, the more personal loans will cost and the lower your chance of approval. That said, some lenders specialize in extending loans to borrowers who present more risk, so don’t rule yourself out if you need a personal loan with bad credit.
Prequalify before you apply to get a sense of whether you’re eligible for a personal loan and the rates you might qualify for.
If you decide a personal loan is right for you, you should know that there are many lenders to choose from. They vary not only in who they approve but also in the loan amounts, APRs, and loan terms they offer. So to find a competitive deal, you’ll usually need to shop around.
But where do you start? You can visit lenders' websites one by one, review their eligibility requirements, and request quotes. Or, to speed things up, you can use a loan marketplace to collect quotes from a wide range of lenders in one go. Once you have multiple quotes, review them carefully, paying special attention to the following factors:
- Loan amount: Does the lender offer the amount you need? Will you need to borrow too much or too little?
- Loan term: Does the loan term meet your needs? Is it too long or too short?
- APR: Is the APR competitive? The lower, the better.
- Fees: Does the lender charge any upfront fees like origination fees? How do other fees, like late fees and insufficient funds fees compare?
- Monthly payment amount: Does the monthly payment amount fit into your budget? Is it the lowest available to you?
- Overall cost: How much will the loan cost you overall? Is it competitive in comparison to your other quotes? Lenders may not include the overall loan cost. If they don’t, you can quickly figure it out using a personal loan calculator.
- Check your credit: If you want to apply for a personal loan, the first step is to check your credit. Look over your reports and scores to ensure everything is accurate and in good shape. If you find any errors, you can dispute them with the credit bureaus. Also, look for ways to quickly improve your scores, such as paying down revolving credit lines or taking advantage of the Experian Boost program.
- Research lenders: Find lenders that offer the terms you need, such as loan amount, repayment term, and time to fund. Then, check that you meet their minimum credit score and income requirements, and make sure they will approve your intended loan purpose.
- Prequalify with lenders: Once you have a few potentials, start collecting quotes from lenders. This is where you'll prequalify. You'll likely have to provide personal information, such as your Social Security number, to get customized rates. But your credit won't be impacted. Then, you can go back to the winning lender’s website to apply once you've compared quotes.
- Apply: During the full application process, lenders will typically ask for more details about your income, debts, and employment. Further, they may request proof such as pay stubs, tax returns, or utility bills. The process also involves a hard credit check which may cause your credit score to drop by a few points.
Once you finish the full application, the lender will provide you with a final decision. If you get approved, the loan will be sent to your bank account according to the lender’s funding times.
Advertiser DisclosureOverview
Many lenders cap personal loans at $50,000, but LightStream is one of few that lets you borrow up to $100,000. This makes it an ideal lender if you’re looking to finance larger expenses, like home improvements or weddings. Additionally, LightStream doesn’t charge origination fees and APRs start at 6.99%—with the best rates reserved for borrowers with good to excellent credit.
Funds with LightStream may be available as soon as the same day, and repayment terms can last up to 20 years, depending on the type of loan you receive. However, LightStream does not offer prequalification on its site, so you won’t be able to see an estimate of your rates unless you formally apply.
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Upstart often has one of the lowest minimum APRs available, making it a solid choice for borrowers with good credit or better. Applicants with poor, fair, or little to no credit may also be considered, as Upstart has no minimum credit score requirement (if you apply on the lender's website) and may accept applicants without scores. This lender offers loans between $1,000 and $50,000 with either three- or five-year repayment terms. Upstart may be ideal for you if you have good credit and can qualify for a low APR, or if you have bad credit and need a lender to look beyond your score.
In terms of its drawbacks, Upstart charges origination fees up to 12% on some personal loans. It also has a maximum APR of 35.99%, which is around the highest rate you'll find with a reputable lender, with no discounts available. Upstart also has fewer repayment term options than most lenders.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
Splash is a lending marketplace that offers loans up to $100,000 (if you apply via its website) from a wide range of lenders, with next-day funding available with many. If you apply on its website, terms range from two to seven years. Notably, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email.
It's worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere, and origination fees can reach 12% on some loans.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
Overview
Discover Personal Loans offer amounts up to $40,000 with fixed APRs starting at 7.99%. Repayment terms can be from 3 to 7 years and there are no additional fees, as long as you pay on time. The company lends to borrowers nationwide and funds may be available as soon as the next business day after approval.
Discover doesn’t allow cosigners and you’ll need a FICO credit score of 660 or higher to qualify.
Eligibility
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Overview
SoFi’s personal loan rates are competitive, and that’s far from the only feature that makes this lender one of our best picks for borrowers with good credit. It also offers same-day funding, multiple rate discounts, large loans, and a range of terms — plus no mandatory origination fees. You may be able to borrow between $5,000 and $100,000 and repay it in two to seven years with SoFi.
Unfortunately, SoFi doesn’t allow cosigners, so the lender won’t be a good fit for borrowers with fair or poor credit profiles who want to apply with a friend or family member. SoFi does, however, have a convenient prequalification process than can give you an idea of whether you may qualify for a loan. The lender also provides a seamless online experience and has an admirable Trustpilot consumer review rating of 4.5 out of 5 stars.
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Overview
Best Egg ranked second in J.D. Power's Consumer Lending Satisfaction Study, so it should come as no surprise that it’s one of our best picks for a wide range of borrowers. In addition to having relatively low rates and discounts, Best Egg provides loans from $2,000 to $50,000 and may consider applicants with credit scores of at least 600. Terms range from two to five years.
This lender stands out for offering better approval odds for prequalified applicants than many other lenders, according to Credible data. Specifically, prequalified applicants were more than twice as likely to be approved for final loans. Best Egg’s origination fees can reach 9.99%.
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
LendingClub provides personal loans up to $40,000 with repayment terms between two to five years. The company is a strong choice for borrowers with good credit who don’t need funds fast, as LendingClub does not specify funding times on its site.
You can prequalify directly with LendingClub without having to provide your Social Security number, though you will need to provide it if you formally apply. Origination fees may be charged and range from 3% to 8%. LendingClub doesn’t offer discounts for autopay or direct pay.
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
Overview
Avant personal loans are better suited to borrowers with bad credit (a FICO score below 580) than many others because the lender may consider applicants with credit scores in the 500s. Loan amounts up to $35,000 are available, so these loans are on the smaller side. But if this maximum is sufficient, Avant might appeal to you because it offers funding as soon as the next business day after approval and is more likely to approve the applications of prequalified borrowers than other lenders.
That said, Avant’s interest rates are steep, and the lender charges an origination fee up to 9.99%.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Upgrade offers loans from $1,000 to $50,000 and features competitive APRs, discounts for direct payments to creditors and enabling automatic payments, fast funding (as soon as the same day as approval), repayment terms up to seven years, and nationwide availability. Upgrade even offers secured personal loans, which is not common among lenders, and you don't need to input your Social Security number to prequalify on the website.
Upgrade does charge origination fees between 1.85% and 9.99%, however. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
BHG Financial stands out for offering the largest loan amounts - up to $200,000 - of any of our partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to find one. However, loan amounts start at $20,000, so look elsewhere for small loans. You'll have between three and 10 years to repay the loan, but you'll need an annual income of at least $100,000 and a FICO score of 660 or better to qualify.
Loan funds are available within three to 14 days of loan approval. BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Note that you can't prequalify for a personal loan with BHG.
Fees
Origination fees, late fees, other fees may apply
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Overview
Universal Credit personal loans are ideal for bad-credit borrowers because the lender may consider applicants with credit scores as low as 560. You can apply for loan amounts between $1,000 and $50,000 and may qualify for next-day funding. Because Universal Credit has higher APRs than other lenders, it may be best suited to individuals without the credit and/or income needed to qualify for more competitive rates with other lenders.
You can choose from repayments terms of three, five or seven years. Universal Credit has higher origination fees than many lenders, charging between 5.25% and 9.99% on all personal loans. This lender offers interest rate discounts when you opt for automatic payments or direct payment to creditors (in the case of debt consolidation).
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
Happy Money, formerly known as Payoff, is an ideal lender for debt consolidation and credit card consolidation loans. The company offers APRs starting at 11.72% and loan amounts up to $40,000. You may be able to qualify for a loan with Happy Money with fair credit, but the best rates are reserved for those with good to excellent credit scores.
The company charges origination fees up to 5%, which is lower than some competitors, and you can receive funding in three to five business days once approved. Check to see if loans are available in your area, as Happy Money doesn’t fund borrowers in Massachusetts or Nevada.
Eligibility
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Overview
When it comes to personal loans for fair-credit borrowers, Reach Financial is one of the best choices around. This lender offers fast processing, with a majority of approved applications receiving funds within a day. Terms start at two years and end at five years for personal loans, and loan amounts are between $3,500 and $40,000. This isn’t the right lender for the shortest or longest terms available, and the borrowing range is narrower than you’d find with many lenders.
Reach focuses on borrowers using personal loans to pay off debt and only permits two purposes for its loans: debt consolidation and credit card refinancing. It’s also worth noting that the lender does not work with borrowers in every state and charges origination fees up to 8%.
Fees
Origination Fee, $15 Late Fee, $25 NSF Fee
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
Overview
For bad-credit personal loans, OneMain Financial is one of the best lenders you can consider. In addition to not setting a minimum credit score for applicants who apply directly through the website, OneMain permits cosigners on applications and offers secured personal loans. Cosigners can help you improve your chances of approval and possibly secure lower APRs. Secured loans require you to pledge collateral when applying and tend to be easier to qualify for than unsecured loans, which typically require higher credit scores and no collateral.
Repayment terms range from two to five years. Personal loan amounts between $1,500 and $20,000 are available, with different minimums and maximums in select states. Also depending on where you live, you’ll pay a flat fee of $25 to $500 or 1% to 10% for origination. You may be eligible for a personal loan with OneMain if you have bad credit (a FICO score of 580 or lower), but the lender’s rates are very high compared to many others.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Overview
Many lenders cap personal loans at $50,000, but LightStream is one of few that lets you borrow up to $100,000. This makes it an ideal lender if you’re looking to finance larger expenses, like home improvements or weddings. Additionally, LightStream doesn’t charge origination fees and APRs start at 6.99%—with the best rates reserved for borrowers with good to excellent credit.
Funds with LightStream may be available as soon as the same day, and repayment terms can last up to 20 years, depending on the type of loan you receive. However, LightStream does not offer prequalification on its site, so you won’t be able to see an estimate of your rates unless you formally apply.
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except RI and VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Upstart often has one of the lowest minimum APRs available, making it a solid choice for borrowers with good credit or better. Applicants with poor, fair, or little to no credit may also be considered, as Upstart has no minimum credit score requirement (if you apply on the lender's website) and may accept applicants without scores. This lender offers loans between $1,000 and $50,000 with either three- or five-year repayment terms. Upstart may be ideal for you if you have good credit and can qualify for a low APR, or if you have bad credit and need a lender to look beyond your score.
In terms of its drawbacks, Upstart charges origination fees up to 12% on some personal loans. It also has a maximum APR of 35.99%, which is around the highest rate you'll find with a reputable lender, with no discounts available. Upstart also has fewer repayment term options than most lenders.
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
Splash is a lending marketplace that offers loans up to $100,000 (if you apply via its website) from a wide range of lenders, with next-day funding available with many. If you apply on its website, terms range from two to seven years. Notably, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email.
It's worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere, and origination fees can reach 12% on some loans.
Loan amount
$5,000 - $100,000 (up to $35,000 on Credible)
Eligibility
Available in all states except VT. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Loan uses
Debt consolidation, home improvement, medical expenses, major purchases
Overview
Discover Personal Loans offer amounts up to $40,000 with fixed APRs starting at 7.99%. Repayment terms can be from 3 to 7 years and there are no additional fees, as long as you pay on time. The company lends to borrowers nationwide and funds may be available as soon as the next business day after approval.
Discover doesn’t allow cosigners and you’ll need a FICO credit score of 660 or higher to qualify.
Eligibility
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Overview
SoFi’s personal loan rates are competitive, and that’s far from the only feature that makes this lender one of our best picks for borrowers with good credit. It also offers same-day funding, multiple rate discounts, large loans, and a range of terms — plus no mandatory origination fees. You may be able to borrow between $5,000 and $100,000 and repay it in two to seven years with SoFi.
Unfortunately, SoFi doesn’t allow cosigners, so the lender won’t be a good fit for borrowers with fair or poor credit profiles who want to apply with a friend or family member. SoFi does, however, have a convenient prequalification process than can give you an idea of whether you may qualify for a loan. The lender also provides a seamless online experience and has an admirable Trustpilot consumer review rating of 4.5 out of 5 stars.
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Overview
Best Egg ranked second in J.D. Power's Consumer Lending Satisfaction Study, so it should come as no surprise that it’s one of our best picks for a wide range of borrowers. In addition to having relatively low rates and discounts, Best Egg provides loans from $2,000 to $50,000 and may consider applicants with credit scores of at least 600. Terms range from two to five years.
This lender stands out for offering better approval odds for prequalified applicants than many other lenders, according to Credible data. Specifically, prequalified applicants were more than twice as likely to be approved for final loans. Best Egg’s origination fees can reach 9.99%.
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
LendingClub provides personal loans up to $40,000 with repayment terms between two to five years. The company is a strong choice for borrowers with good credit who don’t need funds fast, as LendingClub does not specify funding times on its site.
You can prequalify directly with LendingClub without having to provide your Social Security number, though you will need to provide it if you formally apply. Origination fees may be charged and range from 3% to 8%. LendingClub doesn’t offer discounts for autopay or direct pay.
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
Overview
Avant personal loans are better suited to borrowers with bad credit (a FICO score below 580) than many others because the lender may consider applicants with credit scores in the 500s. Loan amounts up to $35,000 are available, so these loans are on the smaller side. But if this maximum is sufficient, Avant might appeal to you because it offers funding as soon as the next business day after approval and is more likely to approve the applications of prequalified borrowers than other lenders.
That said, Avant’s interest rates are steep, and the lender charges an origination fee up to 9.99%.
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Upgrade offers loans from $1,000 to $50,000 and features competitive APRs, discounts for direct payments to creditors and enabling automatic payments, fast funding (as soon as the same day as approval), repayment terms up to seven years, and nationwide availability. Upgrade even offers secured personal loans, which is not common among lenders, and you don't need to input your Social Security number to prequalify on the website.
Upgrade does charge origination fees between 1.85% and 9.99%, however. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
BHG Financial stands out for offering the largest loan amounts - up to $200,000 - of any of our partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to find one. However, loan amounts start at $20,000, so look elsewhere for small loans. You'll have between three and 10 years to repay the loan, but you'll need an annual income of at least $100,000 and a FICO score of 660 or better to qualify.
Loan funds are available within three to 14 days of loan approval. BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Note that you can't prequalify for a personal loan with BHG.
Fees
Origination fees, late fees, other fees may apply
Eligibility
Available in all states except Illinois, North Dakota, and Montana
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Overview
Universal Credit personal loans are ideal for bad-credit borrowers because the lender may consider applicants with credit scores as low as 560. You can apply for loan amounts between $1,000 and $50,000 and may qualify for next-day funding. Because Universal Credit has higher APRs than other lenders, it may be best suited to individuals without the credit and/or income needed to qualify for more competitive rates with other lenders.
You can choose from repayments terms of three, five or seven years. Universal Credit has higher origination fees than many lenders, charging between 5.25% and 9.99% on all personal loans. This lender offers interest rate discounts when you opt for automatic payments or direct payment to creditors (in the case of debt consolidation).
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
Happy Money, formerly known as Payoff, is an ideal lender for debt consolidation and credit card consolidation loans. The company offers APRs starting at 11.72% and loan amounts up to $40,000. You may be able to qualify for a loan with Happy Money with fair credit, but the best rates are reserved for those with good to excellent credit scores.
The company charges origination fees up to 5%, which is lower than some competitors, and you can receive funding in three to five business days once approved. Check to see if loans are available in your area, as Happy Money doesn’t fund borrowers in Massachusetts or Nevada.
Eligibility
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Overview
When it comes to personal loans for fair-credit borrowers, Reach Financial is one of the best choices around. This lender offers fast processing, with a majority of approved applications receiving funds within a day. Terms start at two years and end at five years for personal loans, and loan amounts are between $3,500 and $40,000. This isn’t the right lender for the shortest or longest terms available, and the borrowing range is narrower than you’d find with many lenders.
Reach focuses on borrowers using personal loans to pay off debt and only permits two purposes for its loans: debt consolidation and credit card refinancing. It’s also worth noting that the lender does not work with borrowers in every state and charges origination fees up to 8%.
Fees
Origination Fee, $15 Late Fee, $25 NSF Fee
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
Overview
For bad-credit personal loans, OneMain Financial is one of the best lenders you can consider. In addition to not setting a minimum credit score for applicants who apply directly through the website, OneMain permits cosigners on applications and offers secured personal loans. Cosigners can help you improve your chances of approval and possibly secure lower APRs. Secured loans require you to pledge collateral when applying and tend to be easier to qualify for than unsecured loans, which typically require higher credit scores and no collateral.
Repayment terms range from two to five years. Personal loan amounts between $1,500 and $20,000 are available, with different minimums and maximums in select states. Also depending on where you live, you’ll pay a flat fee of $25 to $500 or 1% to 10% for origination. You may be eligible for a personal loan with OneMain if you have bad credit (a FICO score of 580 or lower), but the lender’s rates are very high compared to many others.
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Fox Business does not make or arrange loans.
Here’s a look at how a personal loan works in practice.
Let’s suppose you have decent credit and apply for a $10,000 personal loan. After shopping around, you decide on a loan that has a five-year term and a 24% APR. If the loan doesn’t have an origination fee, your monthly payment amount would be about $288 per month and your overall loan cost would total $7,261.
On the other hand, let’s suppose the loan does have a 5% origination fee ($500) but still has a 24% APR. The lender would deduct the $500 origination fee from your loan before you receive it, so you would only get $9,500. Note that you still have to repay the full $10,000 principal loan amount. Your ongoing interest rate would then be lower, 21.5%, because your APR includes the origination fee.
As a result, your monthly payments would land around $273 and the overall cost would be about $6,901. While this is slightly lower than the example above, in this case you only truly borrowed $9,500.
Not sure if a personal loan is the right fit? Don’t worry. You can finance personal expenses using other credit products such as a credit card, a cash advance app, or a buy now, pay later (BNPL) loan.
- Credit cards: Credit cards provide you with a revolving credit line that you can use, repay, and use again. They can be good for short-term financing. If you pay off the balance within 1 month, you can avoid interest charges. Some card issuers also offer 0% APR promotional periods which allow you to finance purchases over an extended period without paying any interest.
- Cash advance apps: Cash advance apps like EarnIn and MoneyLion allow you to get small cash advances between paychecks, often $700 or less. These can help bridge gaps between paychecks. Unlike many loan products, eligibility is often based on your bank account transaction history rather than your credit. Just watch out for expensive instant transfer fees.
- “Buy now, pay later” (BNPL) loans: BNPL services like Afterpay and Affirm have become increasingly popular. They allow you to break up purchases into smaller payments over time, sometimes without interest charges. You can initiate purchases through BNPL apps or may find them as a payment option during checkout at certain retailers.
A personal loan can be used for personal expenses of your choice. For example, you could use one to finance the cost of car repairs, new clothes, a vacation, a wedding, or a move. Lenders typically only have a few restrictions on the use of the funds, such as forbidding them to be used to fund illegal activities, a new business, college tuition, or gambling.
It’s possible to apply for a personal loan, get approved, and have the funds in your bank account as soon as the same day. However, application and funding times vary by lender. They often range from one to three business days.
Personal loans offer a few advantages over credit cards, including lower average interest rates, large loan amounts, and a fixed repayment schedule. They’ll often be cheaper when making large purchases that you want to pay off over time, unless you qualify for a 0% APR promotion on a credit card and can pay off the balance within the term.
Meet the contributor:
Jessica Walrack
Jessica Walrack has over a decade of experience in personal finance. Her work has been featured by CBS News MoneyWatch, USA Today, U.S. News and World, Investopedia, and The Balance Money.
