LightStream stands out with some of the lowest personal loan rates available for borrowers with excellent credit scores. Truist created LightStream for online loans, and the bank offers personal loans for things like home remodels, medical debt, and debt consolidation. 

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.  

Service Credit Union has some of the best customer support among personal loan lenders and can get you your money fast. Customer support is available 24 hours a day, seven days a week. The approval process takes about 24 hours, and after your loan application is accepted, you may be able to have the funds in your account the same day. 

Membership requirements. Much like with most credit unions, you'll need to meet certain requirements to be eligible. If you've served in the military or Department of Defense or work at qualifying associations or organizations, you'll qualify. If that doesn't apply to you, you can join the American Consumer Council for free with a promo code. 

PenFed Credit Union offers personal loans for smaller amounts than many other lenders, making it a good choice for those who just need to borrow a little bit of money for a short time. PenFed will lend you as little as $600. This could make the credit union an attractive alternative to a payday loan. 

Membership requirements. You don't need to be a member of the credit union to apply for a personal loan, but you'll have to be a member to get your loan. If you've served in the military or work at qualifying associations or organizations, you'll qualify.

However, you have a pretty easy workaround if that doesn't apply. You can join by opening a savings account with a $5 minimum deposit.

SoFi personal loans have a minimum credit score requirement of 680, at the lower end of what's considered a good credit score. People with a good credit score will likely be able to get a good rate with SoFi®, but borrowers with an excellent credit score may be able to get a lower rate with LightStream. 

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.

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 of less than $50,000 per year, and a majority make more than $100,000. 

Avant stands out as a lender that applicants with low credit scores can turn to for personal loans. Personal loans are generally offered to those with better credit scores. Avant offers personal loan options for borrowers with credit scores as low as 600. It has a lower limit than other lenders, with $35,000 as the maximum loan amount.

Administrative fees. Avant's personal loans carry up to 4.75% in administration fees with an undisclosed late fee and returned payment fee. 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 lower 600s, those with better credit could find better rates elsewhere. 

Upstart differentiates itself from other personal loan lenders with its underwriting process, which is how it decides who gets a loan and how much to charge in interest. Like any lender, Upstart considers credit scores as part of the process. But it also considers employment history and education history, such as where you went to school and your area of study.

Potentially high origination fees. Upstart's personal loans can have late fee of 5% or $15, whichever is greater. This can take a significant portion out of your overall loan proceeds. 

Wells Fargo personal loans offer low interest rates, smaller minimum borrowing amounts, and shorter terms than many others. Wells Fargo offers loans between $3,000 to $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. 

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. 

The best personal loans will offer fast money when you need it, without astronomical fees and interest rates. We looked at loan providers that cater to a variety of credit scores and offer a range of loan term lengths. The best personal loans aren't necessarily from big-name banks; credit unions generally offer lower interest rates, and you can find strong options through online banks, too.

A personal loan is an installment loan. That means you borrow money and pay it back with a set repayment schedule of monthly payments over a designated period of time.

Most personal loans are unsecured, meaning they don't require you to put down collateral. Since the lender has no collateral to collect if you default on your loan, it can charge higher interest rates for you to borrow.

With a secured loan, on the other hand, you'll put down collateral to "secure" the money you borrow. Mortgages are examples of secured loans since the house you're paying off can be repossessed if you fail to keep up with payments. Auto loans are also considered secured loans, as cars are tangible assets that the lender can repossess if you default on repayment.

Since secured loans are backed by collateral, lenders generally charge less in interest fees. However, most personal loans fall under the unsecured category. That doesn't mean you can't score a low interest rate; if you have a high credit score, you're in a good position to secure the lowest personal loan interest rates even with an unsecured loan.

Personal loans also usually come with fixed interest rates. This means the amount of interest you'll pay will stay the same for the entire loan term. With variable-rate personal loans, on the other hand, the interest rate you pay may start out low, but it can change at any time based on market conditions. Many borrowers prefer fixed-rate loans because they offer predictability; your monthly payment won't change, for better or worse.

Interest rates for unsecured personal loans are determined largely by your credit score. The higher your credit score, the better your chances of getting the lowest available personal loan interest rates.

You can get a personal loan through three types of lenders:

Online lenders can provide convenience and offer competitive rates. They typically offer a streamlined qualification and application process, allowing borrowers to apply and receive funds entirely online. Online lenders frequently cater to borrowers with a wide range of credit scores.

Banks are the traditional sources of personal loans with established reputations and familiarity. You can visit a local branch to discuss loan options and receive personalized assistance. Some banks offer perks including discounts for existing customers.

Credit unions are member-owned financial institutions. They often offer better rates and fees compared to banks, for members in good standing. Credit unions can also be more flexible in their lending criteria for borrowers with lower credit scores. Interest rates for credit union personal loans are capped at 18% by the National Credit Union Administration. 

To pick the best lender for you, take stock of the factors that are most important to you. Many borrowers zero in on the lowest interest rate. But be sure to also look at any fees, the minimum credit score needed, and the accessibility of the lender's customer service before you apply for personal loans.

Also look at the different types of lenders you may borrow with. Some people may feel comfortable with an online lender, while others may prefer a credit union or bank.

You'll also want to make sure you're able to select a term length that works for you and that your loan's purpose is allowed by the lender you choose.

Guides like this one will help you compare multiple lenders in the same place to weigh their pros and cons. Keep in mind that you should also read individual reviews of any lenders you're considering. 

We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories. They are:

As you can see, each category is weighted differently. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. 

We consulted personal loan and financial experts to give their insights into finding the best loan companies for your needs.

• Markia Brown, certified financial education instructor and registered financial associate at Money Plug, LLC
• Ryan Wangman, former loans reporter at Business Insider

"The interest rate on a personal loan is the price you pay for borrowing the loan. This rate can make a massive difference in the total amount paid over time, so ensuring you have the lowest interest rate available saves you money!"

"Depending on the interest rate you're charged, you could end up paying hundreds or thousands of dollars more than a borrower with better credit who takes out a similar amount of money."

"The first step is to pull a copy of your credit report from TransUnion, Equifax, and Experian. All you have to do is go to www.annualcreditreport.com.

After you pull your credit reports, go through them to identify what could be holding you back from qualifying for a better rate. Some of the information on your credit report is used to generate your credit score, which is used when determining if you qualify for a loan and what your interest rate should be. The five sections used to calculate your credit score are your payment history, credit utilization, length of payment history, mix of accounts, and new accounts or inquiries."

"The best way to get a lower rate is to improve your credit history. You can do so by making on time, reliable payments and managing the amount of debt you take out compared to your overall limit."

What Determines the 'Best' Personal Loan?

There's no one-size-fits pick for the best personal loan that will work for all borrowers. However, there are key features to focus on when making a decision. The most important are:

APRs on personal loans can vary widely from one lender to another. The interest rate on your determines how much you'll ultimately repay. Even a relatively small difference in the interest rate can add thousands of dollars over the life of your loan.

The term of a personal loan, or the period of time you have to repay it, determines how high or low your monthly payment will be. A longer term will mean a lower payment, but you'll pay in total interest. A shorter term will come with a higher payment and ultimately less overall interest. The best personal loan lenders offer a wide range of terms to choose from.

Personal Loan Lender Trustworthiness

Whether you're interested in taking out a $5,000 loan or a $40,000 loan, finding the right provider can help with your loan approval experience. The Better Business Bureau, a non-profit organization focused on consumer protection and trust, evaluates businesses using factors like their responsiveness to consumer complaints, honesty in advertising, and clarity about business practices. Here is each company's score:

All of our top picks, minus Wells Fargo, are rated A or higher by the BBB. Keep in mind that a high BBB score does not ensure a positive relationship with a lender, and that you should keep doing research and talking to others who have used the company to get the most comprehensive information possible.

The BBB gives Wells Fargo an F rating because of the business' failure to respond to 24 complaints and government actions against the business. Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.

If this history makes you uncomfortable, you may consider using one of the other personal loan lenders on our list.

Sarah Silbert

Deputy Editor

Sarah Silbert is a personal finance expert and award-winning journalist. As deputy editor for Personal Finance Insider, she oversees all of the guides and reviews published across banking, credit, credit cards, mortgages, loans, investing, and insurance. ExperienceSarah joined Business Insider as an editor in 2019, and had built multiple Personal Finance Insider verticals from the ground up. Prior to joining Business Insider, Sarah was a senior editor at The Points Guy for more than four years, covering credit cards and award travel. Alongside her team at TPG, Sarah helped Chase launch coverage for the popular Chase Sapphire Reserve travel rewards credit card in 2016.Sarah began her journalism career writing about technology for Engadget and Laptop Magazine, jobs which led to international travel for trade shows and conferences and sparked her interest in credit card benefits.Sarah started educating herself on personal finance best practices during her early years struggling to find balance amid New York City’s high cost of living. The money management skills Sarah learned during her years as a self-employed freelance editor also honed her financial acumen, giving her a passion for helping others navigate the financial challenges of small business ownership, taxes, and budgeting. In her personal life, Sarah loves helping her friends level up their credit card strategies to book fancy hotel rooms and flights. She also loves talking about her dog to anyone who will listen.ExpertiseSarah’s areas of personal finance expertise include:

• Credit scores
• Credit cards
• Loans (personal loans and student loans)
• Investing
• Banking
• Insurance

EducationSarah is a graduate of Sarah Lawrence College, where she wrote and edited for the college paper. 

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Elias Shaya

Compliance and Operations Associate

Elias Shaya is a Compliance and Operations Associate on Business Insider's personal finance team in New York. He collaborates with the editorial team to provide timely, accurate, and impartial financial advice to readers ExperienceElias is a point person on multiple personal finance topics, from credit cards to investment products. He ensures editorial content is transparent and accessible through clear and precise language while also complying with regulatory and partner marketing guidelines. Since joining as a compliance fellow in 2022, Elias has played a crucial role in the team’s compliance efforts, ensuring no stone is left unturned. His close attention to detail and broad knowledge of various complex financial subjects help minimize risk for partners while protecting editorial independence so readers get the best possible advice. Expertise: Elias’ expertise includes:

• Credit cards
• Investing
• Loans
• Mortgages

Education: Elias graduated from the College of Staten Island with a degree in International Business.When he’s not reviewing or updating personal finance topics, Elias enjoys traveling, comedy shows, and binge-worthy TV shows.

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