If you plan to make a big purchase or pay off credit card debt with a personal loan, you will broaden your options when you have a good credit score. With good credit – a FICO score of 670 or better – you’re more likely to receive approval for a personal loan and qualify for a lower interest rate than consumers with fair credit or worse.
Still, the ball is in your court to find the best rates and terms for a personal loan. You’ll want to compare the best personal loans for good credit to find the lowest interest rate and fees, and here is how.
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Lender |
Learn More |
APR |
Max. Loan Amount |
Min. Credit Score |
|---|---|---|---|---|
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8.99% to 23.43% | $100,000 | Not disclosed | |
 |
5.99% to 23.99% | $100,000 | 670 | |
 |
6.50% to 35.99% | $50,000 | Not disclosed | |
 |
8.24% to 35.97% | $50,000 | Not disclosed | |
 |
7.99% to 14.99% | $50,000 | 700 | |
 |
6.99% to 35.99% | $50,000 | Not disclosed | |
 |
8.42% to 29.99% | $45,000 | Not disclosed | |
 |
7.99% to 35.99% | $36,500 | Not disclosed | |
 |
8.05% to 36.00% | $40,000 | Not disclosed | |
 |
9.99% to 29.99% | $40,000 | Not disclosed |
SoFi, short for Social Finance, offers personal loans of up to $100,000 with terms between two and seven years. The lender was founded in 2011 and is known for offering loans with a no fees option in exchange for a higher interest rate. In addition to personal loans, SoFi offers student loans, auto and student loan refinancing and home loans.
LightStream is the online consumer lending division of Truist Bank. Low-interest fixed-rate loans from $5,000 to $100,000 are available for almost any purpose and backed by a $100 satisfaction guarantee. Borrowers have good to excellent credit and may receive funds as soon as the same day they apply from the website or mobile app.
Upstart is a lending platform that uses artificial intelligence to improve access to affordable credit. Based in California and founded by former Google employees in 2012, Upstart also applies AI to reduce lending risks and costs for its bank partners. The lending intermediary provides unsecured personal loans from $1,000 to $50,000 to borrowers anywhere in the U.S. except West Virginia or Iowa.
Upgrade offers access to personal loans, the Upgrade card with a personal line of credit, rewards checking and credit monitoring and educational tools. Founded in 2017 in San Francisco, the firm also has operations offices in Chicago, Phoenix and Montreal.
Axos Bank is a digital bank founded in July 2000 with one product, a basic checking account. The San Diego-based bank has since focused on providing innovative products and solutions, including personal loans, to customers nationwide. Potential borrowers can prequalify online with no credit damage and obtain personalized loan options and rates.
Prosper is a peer-to-peer lending marketplace that allows borrowers to apply online for fixed-rate, fixed-term loans from $2,000 to $50,000. Investors such as Sequoia Capital, Francisco Partners and Institutional Venture Partners provide backing for Prosper. Since its founding in 2005, Prosper has made possible more than $23 billion in loans. Prosper may not work with borrowers with credit scores below 600.
Rocket Loans offers personal loans to qualified borrowers in 47 states. These loans may be useful for people who need to borrow up to $45,000 for debt consolidation, home improvements, car repairs or other expenses.
LendingPoint offers personal and business loans in 48 states and Washington, D.C.; loans are not available in Nevada and West Virginia. The Georgia-based lender provides unsecured personal loans from $2,000 to $36,500, using data and technology to get a complete picture of your creditworthiness. Borrowers may receive funds as soon as the next business day after approval.
LendingClub connects borrowers and investors through its online marketplace. The company originated on Facebook and evolved into an extensive peer-to-peer lender, though it no longer offers peer-to-peer loans. Borrowers in all U.S. states and Washington, D.C., can apply for $1,000 to $40,000 loans with LendingClub.
Happy Money offers Payoff personal loans designed to consolidate credit card debt. It operates in all but two states and provides loans of up to $40,000. Happy Money is not a bank and instead works with lending partners that originate the loans. The California-based financial wellness company takes a psychological approach to money matters.
Personal loan interest rates rose this week, trending higher for three-year and five-year loan terms. Here are the average personal loan rates offered to well-qualified applicants with a credit score of 720 or greater, as of Mar. 13:
- Three-year personal loan term: 17.51% (up from 17.3% a week ago).
- Five-year personal loan term: 19.1% (up from 18.94% a week ago).
Personal loan rates vary widely based on creditworthiness. Borrowers with very good or excellent credit scores will see much lower interest rates than those with fair or poor credit, as seen in the chart below:
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Good credit makes loan approval more likely but doesn’t guarantee it. You should have no problem meeting the minimum credit score requirement, but you’ll still need to satisfy other criteria, including annual income and debt-to-income ratio.
Your debt-to-income, or DTI, ratio is a percentage that tells lenders how much you spend on debt each month compared with how much you earn. A low DTI ratio can help you qualify for a loan at a better interest rate than a high DTI ratio, which could signal to lenders that you’re taking on too much debt. Generally, personal loan companies prefer a DTI smaller than 36%, which means that monthly debt obligations as a percentage of your income should not exceed that amount.
Lenders also look for consistent payment history and income, says Sarah Pierce, formerly of mortgage lender Better.com.
“To determine this, lenders typically need documentation of your income history from the last two years, verified by tax returns and pay stubs,” Pierce says.
In addition to income and DTI, loan purpose could play a role in approval, but this factor may receive less weight than others. A personal loan application might ask how you plan to use your loan funds, such as paying for a wedding, repairing a home or car, or consolidating credit card debt.
Whatever you choose, your credit score is critical to determining loan terms, including loan amount, says Mark Victoria, senior vice president and Partnership Program executive at TD Bank. Make sure your credit report is accurate before applying for a loan, he says.
You’ll want to review your credit reports and dispute errors. Free weekly access to each credit report from the three major credit bureaus, a benefit for consumers that began during the pandemic, will continue through 2023 at annualcreditreport.com.
Evaluating factors such as APR, loan amount and fees will help you select the right loan. You can start your comparison shopping by prequalifying with at least three personal loan lenders.
Many personal loan companies offer online prequalification, which uses a soft inquiry that won’t hurt your credit score to determine your eligibility. When you prequalify, you will provide personal information to a lender that will let you learn estimates of an APR and other important loan details:
- APR. The APR, which includes interest charges and fees, provides a simple way to assess the total yearly cost of a loan. Taking the lowest APR deal may save you hundreds or even thousands of dollars, depending on your loan’s principal balance. The average APR for a personal loan is 10.16%, according to the Federal Reserve’s data in the third quarter of 2022, but a good credit score can result in more competitive rates.
- Fees. Make sure you read the terms and conditions of your loan offer, and note all fees and when they will apply. In addition to origination fees, some lenders charge late fees, application fees and prepayment penalties.
- Loan terms. The term range you’ll have to repay your loan in full varies by lender. Some lenders offer a maximum loan term of three years, and others provide up to seven years to pay back loans. You might even get flexible repayment terms, allowing you to tailor your payoff plan to attain a monthly payment that works best for your budget.
- Loan amounts. Good credit doesn’t mean that an offer for a lender’s maximum loan amount is certain. You can request a loan amount in your application, and the lender will evaluate whether that figure is reasonable based on factors such as your income and credit history, Victoria says. “Some lenders allow borrowers to request a higher loan amount, but in some cases, decisions are automated based on eligibility,” he says.
- Discounts. Lenders may offer you discounts to earn your business. “The most common incentive is a rate discount, typically used to incentivize consumers to sign up for autopay,” Victoria says.
- Customer service. Check reviews to understand a lender’s overall customer satisfaction. The Consumer Financial Protection Bureau’s Consumer Complaint Database and the Better Business Bureau can reveal common problems.
Find the Personal Loan That’s Right for You
The best place to get a personal loan with good credit depends on the loan terms you seek. Traditional banks, credit unions and online lenders offer personal loans for good-credit borrowers.
You can choose from among many lenders offering personal loans if you have good credit. Here’s a look at how different types of lenders may stack up:
- Your financial institution. If you have good credit and a relationship with a financial institution, see what loan offers it has for you. It already has your identifying information and some of your financial details and could provide a fast decision on your loan application.
- A traditional bank. Conventional banks, as for-profit financial institutions, could charge higher APRs and fees on personal loans than other lenders. But if you prefer banking at convenient brick-and-mortar branches, this option might be for you.
- Credit unions. These member-owned financial institutions return profits to members in the form of low fees and competitive personal loan rates. If you meet a credit union’s eligibility requirements, then you can join and apply for a loan.
- Online lenders. These lenders often have lower overhead costs because they lack physical branches to maintain and can offer no fees and better rates than their brick-and-mortar peers.
Pros
- Flexibility: A personal loan can be used to pay for almost anything, such as home renovations, car repairs or medical bills. Ask about restrictions, which can include college costs, down payments and investments.
- Competitive rates: The APR for personal loans can range from about 7% to 36%. If you have a great credit score, a strong credit history and a stable income, you could qualify for lower rates than alternatives, such as credit cards.
- Higher borrowing limits than other credit products: Personal loans generally offer borrowing limits that start at $1,000 and go up to $100,000, depending on your qualifications.
- Credit building: If you make the monthly payments on time, your credit score may increase, as payment history accounts for 35% of your FICO score.
Cons
- Multiple fees: Some lenders charge application, origination, late payment and prepayment fees. The origination fee could be a flat rate or a percentage of your loan amount, which can be between 1% and 6%.
- Higher interest rates than alternatives: You could end up paying more than on credit cards or secured loans, depending on your credit score.
- Higher monthly payments than minimum credit card payments. That’s because a personal loan has a fixed repayment term of generally one to five years.
- Risk of more debt. A personal loan can pay off your credit cards, leaving them open for more spending and creating more debt.
- Home equity loan. If you’re making major home repairs, a home equity loan or a home equity line of credit could offer a lower interest rate. However, this loan is secured by your home, meaning you risk foreclosure if you can’t pay it back.
- Balance transfer credit card. If you can qualify for one, a credit card with an introductory 0% interest period may be best if you want to pay off credit card debt without being charged interest. Just be sure that you can pay off the balance before the rate expires, usually from 12 to 21 months.
- Personal line of credit. With a line of credit, you use funds when you need them, as with a credit card. Interest rates sometimes are lower than credit cards, but personal lines of credit generally come with a repayment term. Some may have variable rates.
- Borrowing from family members or friends. If you go this route, keep in mind how it could affect your relationship, especially if you have a problem paying back the loan.
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. Personal loan companies are evaluated based on customer service ratings, interest rates, maximum loan term, minimum and maximum loan amounts, minimum FICO score, online features, and origination fees.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks:
Best Personal Loans for Good Credit of March 2023
Advertising Disclosure: Some of the loan offers on this site are from companies
who are advertising clients of U.S. News. Advertising considerations may impact
where offers appear on the site but do not affect any editorial decisions,
such as which loan products we write about and how we evaluate them. This site
does not include all loan companies or all loan offers available in the marketplace.
