Best Personal Loans of September 2024 (2024)

LightStream

Our Top Pick

Why LightStream Stands Out: LightStream has a best-rate guarantee, offering you a rate 0.10 percentage points lower than any other competitor you’ve been approved with. It also has a loan-experience guarantee, where the company will pay you $100 if you’re not completely satisfied with your closing experience and submit a questionnaire about it.

LightStream offers loans of $5,000 to $100,000 with terms of two to 12 years. You’ll need to have good to excellent credit to get the best rates and a minimum FICO credit score of 660 to qualify for a loan.

LightStream’s advertised APR range includes an autopay discount of 0.50%. In partnership with American Forests, a conservation organization, the lender plants a tree for every loan it makes.

Our MarketWatch Guides teammate applied for a boat loan from LightStream and shared his experience with our research team.

“Approval was not automatic,” he said. “I thought that applying for a loan online would give me immediate approval. I completed the application at 3:30 p.m. and got the approval notification at 9:56 p.m. Overall, the process was clear and straightforward.”

To get a LightStream loan, you must have:

• Credit score of 660 or higher
• Sufficient income to make payments
• Good payment history with few delinquent payments

LightStream’s personal loans can be used for just about anything you can think of, minus higher-education financing. It offers some of the best interest rates on the market, along with some of the widest term and loan amount ranges. Plus, it offers same-day funding (depending on when your application is submitted and approved) and no prepayment penalties if you’re able to pay your loan off early.

Other notable perks include a best-rate guarantee, a loan-experience guarantee (where LightStream will give you $100 if you’re not completely satisfied with your loan) and an autopay discount of 0.50%.

As a downside, LightStream doesn’t allow you to prequalify for a loan. You’ll need to apply — which involves a hard credit check — to see which rate you’ll be offered based on your credit profile. Also, LightStream only approves good-to-excellent credit profiles.

SoFi

Best Customer Experience

Why SoFi Stands Out: SoFi will show you the rates you qualify for with no hit to your credit, give you discounts for autopay and direct deposit. The lender may also fund your loan as soon as the same day you sign. SoFi will lend you up to $100,000, with repayment terms of two to seven years. Its minimum credit score is 680.

Borrowers who miss their due date won’t be charged a late fee — a huge differentiator between SoFi and competitors such as PenFed and Discover. And if you’re looking for a lender with excellent customer service, SoFi may be a good bet. It has 4.5 out of 5 starson Trustpilot with over 8,600 reviews.

To get a SoFi loan, you must have:

• A 680 credit score or higher
• Gainful employment
• Reached the age of majority for your state (usually 18)
• Residence in one of the 29 states (or Washington, D.C.) that SoFi serves

SoFi offers personal loans of up to $100,000, the potential for same-day funding and an autopay discount of 0.25%. You can get an additional 0.25% rate discount if you qualify for SoFi’s membership program, SoFi Plus. SoFi also lets you see which rates and terms you may qualify for before applying for a loan, with no impact to your credit score.

SoFi’s loans have no prepayment fees or late fees, the latter of which competitors such as PenFed and Discover charge. However, SoFi’s loans can’t be used for real estate, business or post-secondary education purposes. And while SoFi advertises that it doesn’t charge origination fees, the fine print says it may charge fees of up to 7%.

PenFed Credit Union

Best for Small Loans

Why PenFed Credit Union Stands Out: If you don’t need to borrow a large amount, PenFed may be a good option. Its minimum personal loan is only $600, while its maximum is $50,000. The maximum loan repayment term of five years is a tighter time frame than some other lenders offer. PenFed doesn’t publish the minimum credit score needed to get a personal loan, and you’ll need to prequalify to find out what your loan rate could be.

While other lenders only require you to apply for a loan, PenFed requires applicants to become credit union members to be eligible for a loan. But membership is available to anyone, and if you’re approved for a loan, PenFed will automatically create your membership.

To get a PenFed loan, you must have:

• Verifiable income
• Ability to make payments
• Solid employment history

PenFed offers a lower maximum loan amount than LightStream and SoFi at only $50,000, but its minimum loan amount of $600 is much lower than LightStream and SoFi’s $5,000 minimum requirement. It also offers the chance to prequalify, so you can see which terms and rates you may qualify for before applying.

While its loans don’t require an origination fee, early-payoff fees or balance-transfer fees, it charges a $29 late fee for payments more than five days late. It also doesn’t typically offer the potential for same-day funding with its soonest funding timeline typically being the next day.

Although PenFed requires membership, the credit union is easy to join since membership is open to anyone, unlike with other credit unions.

Discover

Best for Low Rates

Online personal loans from Discover offer competitive interest rates. The lowest available APR, 7.99%, is one of the lowest on the list. Personal loans range from $2,500 to $40,000, with APRs up to 24.99%, and terms last three to seven years for additional flexibility. Discover offers free perks for customers, including credit monitoring and online privacy protection – which can give you assistance in removing your personal information from up to 10 websites at no additional cost. It’s a helpful offer, especially from an online lender.

Some online personal loan lenders only work with borrowers in select states, but Discover’s online personal loans are available nationwide. If you’re struggling to find providers in your state, Discover might be a feasible option.

First, check your rate with no impact on your credit score. If you like your rate, continue your online application, decide how much you’d like to borrow and your terms, and find out if you’re approved quickly, usually the same day. Once you’re approved, use your mobile phone or computer to accept your loan. Sign your loan documents and set up your funding and you’re all set. Because Discover is fully online, they have a robust customer service department with U.S.-based agents to help with any questions you might have.

Upstart

Best for Bad Credit

Why Upstart Stands Out: Upstart, a lending marketplace, can help you find personal loans from several lenders. While this is good for comparing options, it may result in texts, emails and phone calls from multiple lenders.

Upstart offers loans from $1,000 to $50,000 with only two terms — three or five years. It’sopen to lending to borrowers with credit scores as low as 300 or with no credit history at all. But even people with higher credit scores often find that the APRs they’re offered are competitive with other lenders on our list.

To get an Upstart loan, you must have:

• 300 credit score or higher
• Reached 18 years of age
• Debt-to-income ratio (DTI ratio) no higher than 45% or 50%, depending on your state (refers to monthly debts divided by gross monthly income)
• No bankruptcies or negative public records in the last 12 months
• No current delinquencies on credit report
• Fewer than six credit inquiries in the last six months

As a lending marketplace, Upstart uses artificial intelligence (AI) to connect consumers to loan products from more than 100 banks and credit unions. Upstart is focused on improving access to credit for all, meaning some lending partners may accept applicants with poor credit or no credit history.

Upstart offers a reasonable range of terms and loan amounts, though its rates tend to be on the higher side. There are no prepayment penalties, but Upstart charges origination fees and late fees. It’s easy to prequalify for a loan rate before officially applying, and you can typically receive funding in about one business day if you’re approved.

U.S. Bank

Best for Loyal Customers

Why U.S. Bank Stands Out: One of the most notable aspects of U.S. Bank is that you can get your money within hours — as long as you’re a current U.S. Bank customer. If you need money quickly, U.S. Bank may be a no-brainer.

U.S. Bank rewards loyalty. If you’re a current customer, you may qualify for a higher loan amount than non-customers — up to $50,000 compared to $25,000. You could also get up to seven years to repay your loan, while non-customers have repayment terms of one to five years. And customers only need a minimum credit score of 660, but people without U.S. Bank accounts need a score of at least 720.

You must meet the following criteria to get a U.S. Bank personal loan:

• Credit score of 660 (existing customers) or 720 (non-customers)
• Verifiable income
• Ability to make payments

If you’re a U.S. Bank customer, you may be able to receive funding within a few hours — one of the fastest funding timelines available — along with financing of up to $50,000 and terms of up to seven years.

In comparison, non-bank customers can typically receive funding within one to four business days and can only borrow up to $25,000 and receive terms of up to five years.

Upgrade

Best Discounts

Why Upgrade Stands Out: Borrowers who use Upgrade can get a discount if they directly pay their debt off with their personal loan, sign up for automatic payments when applying or use their cars as collateral. Unlike most other loan companies on this list, Upgrade isn’t a direct lender. Like Upstart, it’s an online marketplace connecting borrowers to banks and credit unions. Upgrade’s lending partners offer loans between $1,000 and $50,000 with terms from two to seven years. The company doesn’t disclose its minimum credit score.

Don’t be confused by the similar names. While Upgrade, like Upstart, is designed primarily for borrowers who don’t have good credit, it has discounts, longer terms and educational resources that could make it worth exploring.

You must meet the following criteria to get an Upgrade personal loan:

• Verifiable income
• U.S. citizen, permanent resident or valid visa
• Verifiable bank account
• At least 18 years old (19 in some states)
• Valid email address

Similar to Upstart, Upgrade is dedicated to expanding credit access, so you may be able to qualify for a loan with a lower credit score. You can check your rate before officially applying, and it offers both unsecured and secured loans of up to $50,000 and fast funding within one business day. However, Upgrade charges an origination fee of up to 9.99% and potentially high rates.

Upgrade offers a wide range of discounts, including for setting up autopay, using a loan to pay existing debt off and opening a secured loan (instead of an unsecured loan). It’s also currently offering a $200 welcome bonus when you’re approved for a loan and open a new Upgrade Rewards Checking Plus account. To qualify, you’ll need to receive direct deposits of at least $1,000 to your checking account within 45 days of account opening.

Wells Fargo

Best for In-Person Service

Why Wells Fargo Stands Out: If you want a personal loan from a bank you can visit in person, Wells Fargo may be a good option since it has branch locations in 40 states and Washington, D.C. The bank has the most physical locations of any lender on this list — an ideal scenario if you’re looking for a more personal customer service experience.

Wells Fargo offers personal loans of $3,000 to $100,000 with repayment terms from one to seven years. While you can avoid many common personal loan fees, you must have been a customer of the bank for at least a year before you can be eligible for a personal loan. Also, you’ll only be eligible for the relationshipdiscount if you have a qualifying Wells Fargo checking account and make automatic payments from a Wells Fargo deposit account. Interest rates range from 7.49% to 24.99% APR, which includes the 0.25% relationship discount.

You must meet the following criteria to be eligible for a Wells Fargo personal loan:

• Existing Wells Fargo customer (for at least a year)
• Verifiable income
• Verifiable address
• Ability to make payments

Wells Fargo is the third largest bank in the U.S. by asset size and has more than 4,200 branches across 40 states, so it’s a great option if you want a personal loan from a bank you can visit in person. It offers competitive rates and a wide range of terms and loan amounts, and you can check your rate with only a soft credit pull. And if you have a qualifying Wells Fargo consumer checking account and meet other qualifying criteria, you can earn a relationship rate discount of 0.25%.

The main downside is that you can only apply for a personal loan with Wells Fargo if you’ve been an existing customer for at least 12 months.

Ask The Experts

Chief credit industry analyst at LendingTree

“I don’t think anyone should expect lower personal loan rates anytime soon. It’s looking less and less likely that the Fed will lower rates in either of the next few meetings. Meanwhile, lenders keep tightening personal loan requirements, and with inflation remaining stubborn, debt rising and delinquencies continuing to grow, that doesn’t seem likely to change either. Add it all up, and borrowers should expect interest rates to remain at or around their current levels for at least the next few months.”

See Also

Articles

President of Achieve Lending

“Most personal loans will have terms of 24 to 60 months, with strict payment schedules. This helps make sure you actually pay off the debt, versus keep making minimum payments like you could on a credit card.”

Content manager on MarketWatch Guides team

“If your credit score is still relatively intact, a personal loan from a credit union or bank to pay off the balance of high-interest credit card debt in exchange for a much lower interest rate debt is an option worth strong consideration. Credit card interest rates can mean that even if you make your minimum payments, you may still see your balance increase each month if that balance is high enough. Getting a personal loan with a lower interest rate can help keep that from happening and allow you to pay down your debt at a pace you can manage.”

How much is your loan amount? $10,000

$1,000 $100,000

What is your loan term? 5 years

1 years 9 years

What is your interest rate? 8%

6% 35%

Monthly Payment $202.76

Principal Interest

Total Paid $12,166

Show amortization schedule