Finding a lender you can trust can be difficult with so many options on the internet. Your MarketWatch Guides team has shortened your search by putting together a list of our top recommendations for fast and trustworthy online personal loans.
Key Takeaways
- The best online personal loan providers are LightStream, SoFi, PenFed, Discover, Upstart, U.S. Bank and Upgrade.
- Technology has automated the online personal loan application process – meaning in many cases, you can be approved and funded within the same business day.
- The best lenders are transparent about rates and fees and have a strong customer service department you can reach out to at any time with questions.
The Best Online Personal Loans
The best online personal loans offer straightforward online applications, competitive interest rates, minimal fees and excellent customer service. The following providers offer some of the best personal loans.
- LightStream: Our top pick
- SoFi: Best customer service
- PenFed: Best for small loans
- Discover: Best rate range
- Upstart: Best for bad credit
- U.S. Bank: Best for loyal customers
- Upgrade: Best discounts
LightStream
Our Top Pick
4.4
APR Range6.99% to 25.99%Term Options24 months to 144 monthsLoan Size Offered$5,000 to $100,000
LightStream Overview
LightStream is an online-only lender offering competitive interest rates for unsecured loans between $5,000 and $100,000 with APRs of 6.99% to 25.99%. Loan terms range from 24 to 84 (or up to 144 months for home improvement loans), the longest repayment terms offered. But you must have good credit to excellent credit (at least 670) to qualify, so it might not be a realistic fit for everyone.
Pros and Cons
Pros “Virtually paperless”: LightStream advertises a simple, almost-paperless online process where you apply online then e-sign your agreement and get set up for funding Rate Beat Program: If you get a lower interest rate offer from another lender, LightStream will beat it by 0.10 percentage points, the only recommended lender to offer this guarantee Zero fees: The company does not charge origination, late or prepayment penalty fees Extended repayment terms: LightStream offers repayment terms of up to 144 months, the longest term on the list Cons Cannot prequalify: You can’t check potential loan terms with a soft credit check, the only lender on our list who doesn’t offer prequalification Requires good to excellent credit: LightStream has a minimum credit score requirement of 670 (which is considered good credit) to qualify for a loan Cannot pay creditors directly: LightStream only deposits loan funds in your account, so you must schedule payments if you plan to use the funds for debt consolidation
Why LightStream’s Online Application Stands Out
Apply for a personal loan on LightStream’s website and in most cases, receive a decision within the same business day. You’ll get 0.50% off your quoted rate if you set up AutoPay during your application. If approved, you will need a valid Mastercard or Visa credit card for verification purposes, although you won’t be charged.
After you’re approved, you can e-sign your paperwork. Once you set up your bank account to receive the money, the loan process is complete. If you complete your part before 2:30 p.m., you can be funded the same day.Also, LightStream is the only lender we recommend that guarantees its “loan experience.” If you’re not satisfied with the application process, they’ll give you $100 after filling out a questionnaire.
SoFi
Best Customer Experience
4.4
APR Range8.99% to 29.49%Term Options24 months to 84 monthsLoan Size Offered$5,000 to $100,000
SoFi Overview
SoFi is an online lender with a straightforward application process, same-day funding and no required fees. Borrow from $5,000 to $100,000 with terms from two to seven years. SoFi offers interest rates from 8.99% to 29.49% APR along with some discounts.
On the customer service front, SoFi also offers career coaching, free investment management, and social events for its members. It’s also the only lender on this list to offer unemployment protection, which can pause your payments if you lose your job. SoFi will even help you find new employment.
Pros and Cons
Pros Rate discounts: You can earn a 0.25% rate discount for autopay and an extra 0.25% for direct deposit to a SoFi account, plus 0.125% rate discounts if you have multiple loans with SoFi Forbearance option: If you are unemployed during your loan term, you can request forbearance for up to 12 months and they’ll even help you look for a job Free member perks: SoFi offers members career counseling, social events and other unique perks Cons State restrictions: While SoFi personal loans are available in all 50 states, Washington DC and Puerto Rico, some states such as Michigan have restrictions on loans. Fees for best rates: To secure the lowest rates, you may have to pay an origination fee of up to 6%
Why SoFi’s Online Application Stands Out
You can check your rates online with SoFi in as quickly as 60 seconds with no effect on your credit score. If you like your rate, you can continue your application. SoFi’s loan application is easy to use and you’ll get an approval fast, usually within the same day. If you e-sign your paperwork and indicate where your funds should be sent before 2:30 p.m., you’ll likely be funded the same day.
PenFed Credit Union
Best for Small Loans
4.3
APR Range8.99% to 17.99%Term Options12 months to 60 monthsLoan Size Offered$600 to $50,000
PenFed Overview
PenFed is a credit union with options for online personal loans. The credit union offers loan amounts that range from just $600 to $50,000, and interest rates are lower than what you can find from most other lenders with an APR range of 8.99% to 17.99%.This maximum annual percentage rate is lower than that of any other lender on the list, which can help you save thousands of dollars throughout your loan term.
Pros and Cons
Pros Prequalify to check offers: You can prequalify online without impacting your credit score Lower loan minimum: PenFed’s minimum loan is just $600, which is the lowest minimum of our recommended lenders No application fees: You do not have to pay origination fees and PenFed doesn’t charge prepayment penalties if you make bigger payments or pay your loan off early Cons Limited repayment terms: Timeline options to repay your loan are less flexible than any other lender on the list. The maximum repayment is a short 60 months Late fees: PenFed charges $29 late fees if your payment is more than 5 days late
Why PenFed’s Online Application Stands Out
PenFed has set up their application to be as easy as possible. Check your rate online without affecting your credit score, and receive multiple loan offers. Choose the one you want, then PenFed will automatically create a membership into the credit union for you, so you’ll have access to all the benefits of membership into the country’s second-largest credit union. PenFed offers approval as fast as the same day, and after you sign your loan, you can get funded in 1-2 business days.
Discover
Best for Low Rates
4.1
APR Range7.99% to 24.99%Funding SpeedAs soon as the next business dayLoan Size Offered$2,500 to $40,000
Discover Pros and Cons
Pros Monthly credit score: Discover is the only lender on this list to provide access to free FICO credit score updates. Few fees: There are no origination fees or prepayment penalties, although there is a $39 late payment fee. Fast funding: You could get your money as early as the next business day after you’re approved. Easy-to-use online services: More than 38% of customers who left positive reviews appreciated the ease of using Discover’s online and mobile services. Cons Smaller loan range: The minimum amount you can borrow is a relatively high $2,500, and the maximum amount you can borrow is only $40,000. No discounts: Discover is one of only three lenders on our list that doesn’t offer an automatic payment discount. Minimum income requirement: You must earn at least $25,000 per year in household income to qualify for a loan. Customer support issues: About 36% of negative reviews criticized how the company handled disputes and technical issues.
Editor’s View
Discover offers competitive rates and flexible term options but you’ll need a minimum credit score of 660 or higher to qualify. Its maximum loan amount is $40,000, so it’s not a suitable lender for large loan needs. It doesn’t offer same-day funding, either, instead offering next-day funding after approval. There are no origination fees or prepayment penalties, but Discover charges a $39 late payment fee — one of the highest late fees we’ve seen.
If you’re using a loan to consolidate high-interest debt, Discover provides the option to pay creditors off directly. While personal loans can generally be used to consolidate credit card debt, Discover doesn’t allow you to use one of its personal loans to pay off a Discover credit card.
What Reviewers Say About Discover
Most Praised Features
Digital experience: Reviewers frequently mentioned how convenient Discover’s mobile app is, highlighting features like easy account management.
Customer service: Several reviewers praised the responsiveness and helpfulness of Discover’s customer service, frequently noting that it is U.S.-based and available 24/7.
Most Common Complaints
Customer service inconsistency: Despite the positive feedback noted above, some reviewers had inconsistent experiences with the quality of service, especially with complex issues such as disputes or account closures.
Unexpected loan denials: Many reviews expressed frustration with the loan approval process, reporting unexpected denials despite strong credit scores and financial history.
We reached out to Discover for comment on its negative reviews but did not receive a response.
*Reviews aggregated from Trustpilot, the Better Business Bureau, Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Upstart
Best for Bad Credit
4.0
APR Range7.80% to 35.99%Term Options36 months to 60 monthsLoan Size Offered$1,000 to $50,000
Upstart Overview
Upstart connects borrowers with banks and other lenders as an online lending platform. Their range of interest rates is the widest on our list, from 7.8% to 35.99% APR*. Personal loan amounts range from $1,000 to $50,000**, and terms are for three or five years. There aren’t any penalties if you pay off your balance early, but you might have to pay an origination fee.
Upstart considers education*** and work history for loan approval and lends to people with credit scores as low as 300, so you might have a better chance of qualifying for a loan with Upstart over other companies if you have subpar credit.
Pros and Cons
Pros AI determines lending: You can be instantly approved for a loan with Upstart. The company automates the lending process with AI for quicker and more accurate lending decisions and it offers one of the fastest approvals on our list. Unique eligibility requirements: Upstart considers your education, finances and job history when making lending decisions, instead of relying on debt-to-ratio income and credit history, making it a solid pick for borrowers with fair credit. Low minimum APR: Upstart’s lowest APR is just 7.8%, one of the lowest on our list. Cons High origination fees: Upstart charges origination fees that range from 0% to 12%, the highest charged by our recommended lenders. No co-signers: You must qualify for a loan from Upstart on your own and cannot apply with a co-signer. Limited repayment terms: The company only offers two repayment terms — three or five years.
Why Upstart’s Online Application Stands Out
Upstart (along with Upgrade) is unique among our recommended lenders as it does not directly fund loans, but instead offers a lending marketplace where you receive offers from several lenders for a personal loan and you can choose your favorite. Check your rate within five minutes with no impact on your credit score****.
To apply, you’ll provide information about your education, work experience and how the loan will be used. Most applications are approved within the same day and once you sign and accept your loan terms, funding can happen within 24 hours*****.
U.S. Bank
Best for Loyal Customers
4.0
APR Range8.74% to 24.99%Term Options12 months to 60 months for non-customersLoan Size Offered$1,000 to $50,000
U.S. Bank Overview
U.S. Bank offers online personal loans, but the loans are best suited for existing customers. Non-customers must have a higher credit score to qualify and will receive access to lower loan amounts and shorter terms. On the other hand, customers can borrow up to $50,000, and terms range from 12 to 84 monthswith interest rates ranging from 8.74% to 24.99% APR.
Pros and Cons
Pros Autopay discount: U.S. Bank offers a 0.5% autopay discount, which is higher than some other lenders and you can use a U.S. Bank account or an external account Fastest funding: U.S. Bank customers with a qualifying credit score can receive funds in a few hours, the fastest funding time on our list No fees: You do not have to pay origination fees or prepayment penalties Cons Limited availability: Specific U.S. Bank personal loans are only available to residents in select states Harder to qualify for non-customers: If you’re not a U.S. Bank customer, you need a 720 minimum credit score versus 660 for customers Lower loan limits: The maximum loan amount for non-customers is $25,000, the lowest max on our list
Why U.S. Bank’s Online Application Stands Out
If you’re a customer, U.S. Bank offers the fastest funding on our list. U.S. Bank’s online application takes just a few minutes to complete. You can apply with a co-borrower, and you’ll need your Social Security number, address and employment details. Once you’re approved, which can be as fast as a few minutes, you can benefit from funding within a few hours.
Upgrade
Best Discounts
3.9
APR Range9.99% to 35.99%Term Options24 months to 84 monthsLoan Size Offered$1,000 to $50,000
Upgrade Overview
Online personal loans from Upgrade have two- to seven-year repayment terms, and you can borrow from $1,000 to $50,000. APRs are high, at 9.99% to 35.99%, but there are extensive rate discounts. Origination fees of 1.85% to 9.99%, which are taken directly out of your loan proceeds, will unfortunately offset your savings. Upgrade offers discounts for autopay, direct pay for debt consolidation loans and opening a new account. They also have a discount for active-duty military.
Pros and Cons
Pros Rate discounts: Upgrade offers a wealth of discounts, including for autopay, direct pay for debt consolidation loans and opening a new Upgrade checking account. Pay creditors directly: You can have Upgrade pay your third-party creditors directly, meaning you have one less task to complete Credit health: Upgrade offers free credit monitoring and personalized recommendations with its Credit Health tools Cons Origination fee: Upgrade charges between 1.85% and 9.99% of your total loan amount as an origination fee, one of only two lenders with origination fees on our list Higher interest rates: Upgrade’s minimum APR of 9.99% is the second highest on our list (and that’s with discounts) and its maximum APR of 35.99% is the highest Late fees: If you miss a payment or pay late, Upgrade may charge up to $10 per incident
Why Upgrade’s Online Application Stands Out
Upgrade has an online platform where it presents multiple offers from its lending partners, the only lender apart from Upstart to present offers from multiple lending institutions. You can check your rate with no impact on your credit score, then choose one of the offers you’ve qualified for. Fill out an application online, accept a loan offer and designate where you want funds to be sent. Funds will be deposited within one business day.
*APR accurate as of September 12, 2024.
Online Versus Brick-and-Mortar Lenders
Can You Trust an Online Lender?
Online personal loan lenders don’t always have brick-and-mortar branches, so when you’re choosing a lender with a fully online presence, you want to make sure they’re trustworthy.
Todd Schwartz, founder and CEO of OppFi, an online finance platform, recommends picking a lender that’s affiliated with a bank partner (like LightStream, which is affiliated with Truist Bank).
Moreover, publicly traded companies on major stock exchanges are more credible than those that are not because they are subject to elevated standards from the marketplace and regulatory agencies
Todd Schwartz
Another consideration is an online lender’s level of customer service.
Rachael Olson, head of product strategy at Discover Personal LoansThink about the lender’s reputation, whether you have a preexisting relationship with them, and whether you’ll be able to rely on their customer service to answer all of your questions,”
“Both online lenders and brick-and-mortar lenders are subject to the same laws and regulations, so you should choose the best lender based on the options available to you.
When You Might Consider an Online Personal Loan
The average borrower on our MarketWatch Guides team’s latest personal loans survey took out $16,866.60, and the top reasons for a loan were debt consolidation, home improvement and car financing or repairs.
Personal loans offer fixed interest rates and predictable monthly payments, making it easier to budget each month. When you apply for an online personal loan, expect to be able to easily compare rates and get fast approval and access to funds.
An online personal loan is a financial tool, and like most tools, it can help or hurt your finances depending on how you use it. Consider your current budget, expected spending and credit score before you apply for an online personal loan. “In the end, a personal loan may or may not be the right option for your financial situation,” Olson said. But if it is, “you want to feel good about the lender you choose to work with,” she said.
If you’re unsure whether a personal loan makes sense for you, consult your financial adviser or credit counselor.
The Bottom Line
Personal loans are financial investments that can help you accomplish your goals. As you determine the best lender, consider the loan cost and customer experience. It can be helpful to compare offers from multiple lenders to understand your options better and find the best fit.
The best online personal loan for you might differ from the best one for someone else, and that’s OK. The best fit for you depends on your credit history, financial needs and preferred loan terms.
Recap of Our Picks for the Best Online Personal Loans
- LightStream Personal Loans: Our top pick
- SoFi Personal Loans: Best customer service
- PenFed Credit Union Personal Loans: Best for small loans
- Discover Personal Loans: Best for low rates
- Upstart Personal Loans: Best for low-income borrowers
- U.S. Bank Personal Loans: Best for bank switchers
- Upgrade Personal Loans: Best discounts
- Wells Fargo Personal Loans: Best for in-person service
Methodology: Our System for Ranking the Best Online Personal Loans
Our team put together a comprehensive100-point rating systemto evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the US and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.
- Affordability(35%): How expensive each company’s loans are to pay back.
- Loan features(35%): The breadth of loan terms and features available to prospective customers.
- Customer experience(20%): Ease of application, prequalification and customer service interactions.
- Company reputation(10%): An exploration of lenders’ Better Business Bureau files, customer reviews and outstanding regulatory actions.
Our top-rated lenders may not be the best fit for all borrowers. To learn more,read ourfull personal loans methodology.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
