Best Personal Loans of 2026

Finding the right personal loan means balancing interest rate, fees, loan terms, and how quickly you need the money. With dozens of lenders competing for your business in 2026, the range of options can feel overwhelming. Some lenders charge zero origination fees but have higher APRs. Others offer rock-bottom rates but require excellent credit. A few specialize in borrowers with fair or limited credit histories who might get rejected elsewhere.

We researched and compared more than 25 personal loan lenders and narrowed the field to the 10 best options based on rates, fees, borrower requirements, customer experience, and funding speed. Whether you need a loan for debt consolidation, home improvement, medical expenses, or a major purchase, this guide helps you find the lender that fits your situation and credit profile.

Top 10 Personal Loan Lenders Compared

This side-by-side comparison covers the most important factors for every lender on our list. All rates are current as of February 2026 and include autopay discounts where applicable. Prequalification is available from all 10 lenders with a soft credit pull that will not affect your score.

Several patterns stand out in this comparison. First, the no-fee lenders (SoFi, LightStream, Marcus, Discover, PenFed) save you the most money on a total-cost basis, especially for smaller loan amounts where a 3-8% origination fee eats a disproportionate share of your loan proceeds. Second, the APR floor matters less than the APR ceiling for most borrowers. Advertised rates of 6.99% or 7.49% are reserved for borrowers with 760+ credit scores, excellent income, and low debt-to-income ratios. The rate you are actually offered will depend on your complete financial profile.

How We Evaluated These Lenders

Our selection process started with more than 25 personal loan lenders and used a weighted scoring system across six categories to arrive at the final 10. We weighted each factor based on its importance to real borrowers, not marketing claims or brand recognition.

Interest rates (30% of score). We compared both the lowest and highest APR in each lender's range, with extra weight given to the rates that most borrowers actually receive. A lender advertising 6.99% but offering most borrowers 18%+ scored lower than one with a 8.99% floor that gives average borrowers 12-14%.

Fees (20% of score). We evaluated origination fees, late fees, prepayment penalties, and any other charges. Lenders with no origination fee and no prepayment penalty scored highest. We calculated the effective APR including origination fees for lenders that charge them, because a 10% APR loan with a 6% origination fee costs more than a 12% APR loan with no origination fee on shorter terms.

Accessibility (20% of score). This covers minimum credit score requirements, income minimums, geographic availability, and whether the lender serves borrowers with fair or limited credit histories. Lenders offering prequalification with soft credit pulls scored higher than those requiring hard inquiries upfront.

Loan flexibility (15% of score). We looked at the range of loan amounts, term lengths, and purpose restrictions. Lenders allowing loans as small as $1,000 and as large as $100,000 with terms from 24 to 84 months received the highest marks. We also favored lenders that allow loans for a wide range of purposes without restrictions.

Funding speed (10% of score). We measured the typical time from completed application to money in your account. Same-day funding scored highest, followed by next-business-day and two-to-three-day timelines.

Customer experience (5% of score). We reviewed customer complaint data from the Consumer Financial Protection Bureau (CFPB), checked Better Business Bureau ratings, and evaluated the quality of each lender's online application and account management tools.

Lender-by-Lender Reviews

SoFi — Best Overall Personal Loan

SoFi stands out as our top pick because it combines competitive rates (8.99-29.99% APR) with a genuinely fee-free experience: no origination fee, no late fees, and no prepayment penalties. SoFi also offers unemployment protection, which lets you pause payments and receive job placement assistance if you lose your job during the loan term. Loan amounts range from $5,000 to $100,000 with terms of 24 to 84 months, making it versatile enough for everything from credit card consolidation to major home renovations. The main drawback is a minimum credit score of around 680 and income requirements that exclude some lower-income borrowers. SoFi also does not offer direct creditor payment for debt consolidation, so you will need to distribute funds yourself.

LightStream — Best for Lowest Rates and Same-Day Funding

LightStream, a division of Truist Bank, offers the lowest starting APR on our list at 7.49% and is one of the few lenders providing same-day funding for approved applicants. It charges no origination fees and backs every loan with a Rate Beat Program: if you receive a lower rate from another lender, LightStream will beat it by 0.10 percentage points. Terms extend up to 144 months (12 years) for certain loan purposes, which is significantly longer than most competitors. The catch is that LightStream does not offer prequalification. You must submit a full application with a hard credit inquiry to see your rate. Borrowers need good to excellent credit (660+) and a strong financial profile to qualify. LightStream is ideal for well-qualified borrowers who want the absolute lowest rate and fastest funding.

Marcus by Goldman Sachs — Best No-Fee Lender with Flexible Payments

Marcus offers APRs from 6.99% to 24.99% with absolutely no fees of any kind: no origination fee, no late fee, and no prepayment penalty. What sets Marcus apart is its payment flexibility. If you make 12 consecutive on-time payments, Marcus allows you to skip one monthly payment without penalty, though interest continues to accrue. Loan amounts range from $3,500 to $40,000 with terms of 36 to 72 months. Marcus requires a minimum credit score of approximately 660 and stable income, placing it in the good-credit category. The maximum loan amount of $40,000 is lower than some competitors, and Marcus does not offer a mobile app for loan management, which may frustrate tech-savvy borrowers.

Discover — Best for Direct Creditor Payment

Discover Personal Loans offer APRs of 7.99-24.99% with no origination fees and a standout feature for debt consolidation borrowers: Discover will send payments directly to your existing creditors on your behalf. This direct-payment option ensures your old debts are actually paid off rather than sitting in a checking account where you might be tempted to spend the money. Loan amounts range from $2,500 to $40,000 with terms of 36 to 84 months. Discover funds most loans within one to two business days of acceptance and offers a 30-day money-back guarantee — if you change your mind, you can return the full loan amount within 30 days and owe nothing. The minimum credit score is approximately 660, and the $40,000 cap may be limiting for larger borrowing needs.

Upstart — Best for Fair Credit Borrowers

Upstart uses an AI-driven underwriting model that considers education, employment history, and area of study in addition to traditional credit factors. This approach benefits younger borrowers and those with limited credit histories who may have strong earning potential but thin credit files. Upstart approves borrowers with credit scores as low as 600, and some borrowers with no credit score at all have been approved. APRs range from 7.80% to 35.99%, and origination fees range from 0% to 12% depending on your risk profile. Loan amounts go up to $50,000 with terms of 36 or 60 months. The downside is that borrowers with fair credit will likely face the higher end of both the APR and fee ranges, and the maximum 60-month term is shorter than many competitors offer.

LendingClub — Best for Debt Consolidation

LendingClub is a strong choice for debt consolidation because it offers direct creditor payment and co-borrower applications that can improve your rate. APRs range from 9.57% to 35.99% with origination fees of 3% to 8%. While the fees are a drawback, LendingClub approves borrowers with credit scores as low as 600 and offers loan amounts from $1,000 to $40,000. The platform also lets you add a co-borrower to your application, which can significantly lower your rate if the co-borrower has stronger credit. Funding takes three to five business days, which is slower than direct lenders. LendingClub is best for borrowers who value the direct-payment feature and co-borrower option over zero fees.

Best Egg — Best for Good Credit with Quick Approval

Best Egg serves borrowers with good credit (640+) and offers fast approval decisions, often within minutes. APRs range from 8.99% to 35.99% with origination fees of 0.99% to 8.99%. Loan amounts go up to $50,000, and Best Egg also offers secured loan options for borrowers who want lower rates or have credit challenges. Funding typically arrives in one to three business days. Best Egg stands out for its high approval rates among good-credit borrowers and a straightforward online application. The origination fee is the primary drawback, as even the minimum 0.99% adds cost that fee-free lenders like SoFi and Marcus avoid entirely.

Prosper — Best for Peer-to-Peer Lending and Joint Applications

Prosper is a peer-to-peer lending platform where your loan is funded by individual investors rather than a single institution. APRs range from 8.99% to 35.99% with origination fees of 1% to 9.99%. Prosper allows joint applications, which can improve your approval odds and interest rate by combining the financial profiles of two applicants. Loan amounts range from $2,000 to $50,000 with terms of 24 to 60 months. The peer-to-peer model means funding takes three to five business days, and the origination fees are among the highest on our list. Prosper works best for borrowers who benefit from a joint application or who want an alternative to traditional bank lending.

Avant — Best for Fair and Bad Credit

Avant specializes in borrowers with fair to poor credit, accepting scores as low as 580 with verifiable income. APRs range from 9.95% to 35.99% with origination fees up to 4.75%. While these rates and fees are higher than what good-credit borrowers can find elsewhere, Avant is often the best available option for borrowers who cannot qualify at SoFi, Marcus, or LightStream. Loan amounts range from $2,000 to $35,000 with terms of 24 to 60 months. Avant funds quickly, typically within one to two business days, and offers a mobile app for easy payment management. The key advantage is accessibility: Avant says yes when many other lenders say no, and its rates are far better than payday loans or high-interest credit cards.

PenFed Credit Union — Best Credit Union Option

PenFed Credit Union offers some of the lowest maximum APRs in personal lending: the rate caps at 17.99% even for borrowers at the lower end of its approval range, compared to 29.99-35.99% at most online lenders. APRs start at 7.74% with no origination fees, and loan amounts range from $600 to $50,000 with terms of 12 to 60 months. PenFed requires credit union membership, but joining is open to anyone through the Voices for America's Troops association ($17 one-time fee). The trade-off is slightly slower funding (two to five business days) and a less polished online experience compared to fintech lenders. For a deeper look at credit union rates, see our credit union personal loan rates comparison.

Best Personal Loan Use Cases

Personal loans are among the most versatile forms of borrowing because most lenders place few restrictions on how you use the funds. That said, some use cases make more financial sense than others. Here are the most common reasons people take out personal loans and which lenders are best suited for each.

Debt Consolidation

This is the single most popular reason for taking out a personal loan, accounting for roughly 35% of all personal loan originations. The strategy is straightforward: replace multiple high-interest credit card balances with a single personal loan at a lower rate. If you are paying 20-28% APR on credit cards and can qualify for a personal loan at 8-14% APR, the interest savings can be substantial. The best lenders for debt consolidation are Discover and LendingClub because they offer direct creditor payment, which ensures your old balances are actually paid off. SoFi and Marcus are also excellent choices because they charge no origination fees, maximizing the amount that goes toward paying down your debt. For a complete guide, see our debt consolidation loans article.

Home Improvement

Personal loans are a popular alternative to home equity loans for renovation projects under $50,000 because they do not require your home as collateral. LightStream is the standout lender for home improvement because it offers dedicated home improvement loan rates that are among its lowest, plus terms up to 144 months for larger projects. SoFi and Marcus are also strong choices for home improvement loans due to their no-fee structures.

Medical Bills

Unexpected medical expenses can be financially devastating, and a personal loan often beats the alternatives: medical credit cards with deferred interest (which charges retroactive interest if you miss the payoff deadline) or payment plans with interest from the provider. For medical expenses, Upstart and Avant are good options because they approve borrowers with lower credit scores who may be under financial stress from medical bills. Always negotiate with the medical provider first and ask about interest-free payment plans before taking out a loan.

Emergency Expenses

When an emergency hits and you need funds quickly, funding speed becomes the priority. LightStream offers same-day funding, while SoFi, Discover, and Avant typically fund within one to two business days. Avoid payday lenders and high-interest cash advance apps for emergencies. A personal loan at 10-20% APR is far cheaper than a payday loan at 400%+ APR. If possible, build an emergency fund in a high-yield savings account to reduce future borrowing needs.

Major Purchases

Personal loans can be used for large purchases such as appliances, furniture, electronics, or special events. The fixed payment schedule ensures you pay off the purchase within a defined timeframe, unlike credit card purchases where minimum payments can stretch the debt out for years. For major purchases, compare the personal loan rate against any 0% APR financing offered by the retailer. If you can pay off the purchase within the promotional period, 0% financing is the better deal. If not, a personal loan with a fixed rate and term provides more certainty.

How to Qualify for a Personal Loan

Personal loan qualification depends on four main factors, and understanding them before you apply helps you target the right lenders and improve your chances of approval at a competitive rate.

Credit score is the primary factor. Most lenders on our list require a minimum score of 600-680, though Avant works with scores as low as 580. Your score determines not just approval but which rate tier you fall into. Here is a general framework:

• 740+: Qualifies for the best rates (6.99-10.99% APR) at any lender on our list
• 700-739: Competitive rates (10-16% APR) from most lenders
• 660-699: Moderate rates (14-22% APR) with wider lender selection than you might expect
• 600-659: Higher rates (18-30% APR) from Upstart, LendingClub, Avant, and Best Egg
• 580-599: Limited options primarily through Avant and some credit unions

Debt-to-income ratio (DTI) measures your total monthly debt payments divided by your gross monthly income. Most lenders prefer a DTI below 40%, and the best rates go to borrowers with DTIs under 30%. For example, if you earn $6,000 per month and your total debt payments (including the proposed new loan) are $2,100, your DTI is 35% — within range for most lenders but not optimal.

Income and employment. Lenders want to see stable income sufficient to support the loan payments. Most require annual income of at least $20,000-$45,000, though this varies. You will typically need to provide recent pay stubs, W-2 forms, or tax returns. Self-employed borrowers should expect to provide two years of tax returns and may face more scrutiny.

Existing banking relationship. Some lenders offer rate discounts or faster approval for existing customers. SoFi members who use SoFi checking and direct deposit may access better rates. PenFed members with existing accounts may receive relationship pricing advantages. If you already bank with a lender on our list, check whether that gives you a rate advantage before shopping elsewhere.

Hard vs Soft Credit Pulls and Prequalification

Understanding the difference between hard and soft credit inquiries is essential when shopping for a personal loan, because the wrong approach can temporarily lower your credit score before you even get funded.

A soft credit pull (also called a soft inquiry) checks your credit without affecting your score. All 10 lenders on our list except LightStream offer prequalification through a soft pull. This lets you see your estimated rate, loan amount, and terms without any impact on your credit. You can prequalify with multiple lenders in a single day to compare offers side by side — this is the smart way to rate-shop.

A hard credit pull (hard inquiry) happens when you formally apply for a loan. This typically reduces your credit score by 5-10 points and stays on your credit report for two years, though the scoring impact fades after about 12 months. Hard inquiries signal to other lenders that you are seeking new credit.

The rate-shopping window. If you submit multiple formal applications within a 14-day period (45 days for some scoring models), all of those hard inquiries are typically counted as a single inquiry for scoring purposes. This means you should do all your final applications within a short window. The recommended strategy is to prequalify with soft pulls first, narrow your choices to two or three lenders, and then submit formal applications to those finalists within the same one-to-two-week period.

LightStream is the exception on our list: it does not offer prequalification and requires a hard credit pull to see your rate. If LightStream is on your short list, apply there at the same time you apply to your other finalists to stay within the rate-shopping window.

How Personal Loan Rates Are Determined

The interest rate you receive on a personal loan is not random. Lenders use a combination of factors to assess your risk and price your loan accordingly. Understanding these factors helps you take steps to improve your rate before applying.

Credit score and history. Your FICO score is the starting point, but lenders also look at the details behind the number: how long your credit history is, whether you have any derogatory marks (collections, bankruptcies, late payments), your mix of credit types, and how many recent inquiries you have. A 720 score with a clean 15-year credit history gets a better rate than a 720 score with a thin 2-year file.

Debt-to-income ratio. Even with an excellent credit score, a high DTI signals that you are stretching your finances thin. Lenders see this as increased risk and may charge a higher rate or offer a smaller loan amount. Reducing your DTI before applying — by paying off a credit card balance or increasing your income — can meaningfully lower your rate.

Income level and stability. Higher income generally qualifies you for better rates because lenders are more confident you can absorb the loan payment without difficulty. Employment stability matters too: a borrower who has been at the same employer for five years typically gets a better rate than one who started a new job last month, all else being equal.

Loan amount and term. Some lenders offer lower rates on larger loan amounts because the fixed costs of originating the loan are spread over a bigger balance. Shorter terms (24-36 months) generally carry lower rates than longer terms (60-84 months) because the lender's money is at risk for less time. However, shorter terms mean higher monthly payments, so you need to balance the rate savings against your monthly budget.

Loan purpose. Some lenders, particularly LightStream, adjust rates based on what you plan to use the loan for. Home improvement loans and auto loans may receive lower rates than general-purpose or debt consolidation loans because the underlying use case is considered lower risk.

Co-borrower or co-signer. Adding a co-borrower or co-signer with strong credit can significantly improve your rate. The lender considers the stronger financial profile of the two applicants when determining the rate, which benefits primary borrowers with fair credit. LendingClub and Prosper are the most co-borrower-friendly lenders on our list.

Fixed Rate vs Variable Rate Personal Loans

The vast majority of personal loans carry fixed interest rates, and all 10 lenders on our list offer fixed-rate products. A fixed rate means your APR and monthly payment remain the same for the entire life of the loan. This predictability makes budgeting straightforward and protects you from rate increases.

A variable rate personal loan has an APR tied to a benchmark index, typically the prime rate. When the benchmark rises, your rate and payment increase. When it falls, your costs decrease. Variable rates often start lower than fixed rates — sometimes 1-2 percentage points lower — which can be appealing for short-term loans. However, in a rising-rate environment, a variable rate can cost significantly more over time.

When to choose fixed rate: If you are borrowing for longer than 24 months, a fixed rate is almost always the smarter choice. Rate movements over three to seven years are unpredictable, and the certainty of a fixed payment is worth a slightly higher starting rate. Fixed rates are also better if you are using the loan for debt consolidation, where the whole point is to create a predictable payoff plan.

When to consider variable rate: If you are borrowing a small amount for a short period (12-24 months) and can afford higher payments if rates rise, a variable rate may save you money. Some lenders, particularly credit unions, offer variable-rate personal loans with rate caps that limit how high your APR can go, which reduces your risk. However, SoFi, LightStream, Marcus, and most other lenders on our list offer only fixed rates, so the choice may be made for you.

Secured vs Unsecured Personal Loans

An unsecured personal loan requires no collateral. The lender approves you based on your creditworthiness, income, and financial history. All 10 lenders on our primary list offer unsecured loans as their main product. The advantage is that you do not risk losing an asset if you fall behind on payments (though defaulting will still severely damage your credit). The disadvantage is higher interest rates because the lender bears more risk.

A secured personal loan requires you to pledge an asset — typically a savings account, certificate of deposit, or vehicle title — as collateral. If you default, the lender can seize the asset. In exchange, secured loans offer lower interest rates (often 2-4 percentage points below unsecured rates) and may be available to borrowers with lower credit scores. Best Egg offers a secured personal loan option, and most credit unions offer savings-secured personal loans at reduced rates.

When secured makes sense: Consider a secured loan if your credit score is below 650 and you have assets you can pledge as collateral. The rate savings can be substantial: a secured loan at 8% APR vs an unsecured loan at 16% APR saves $2,400 in interest on a $15,000 five-year loan. Secured loans can also help you build credit, since they are easier to qualify for and on-time payments are reported to the credit bureaus.

When unsecured is better: If you have good to excellent credit (680+) and can qualify for competitive rates without collateral, an unsecured loan is simpler and does not put your assets at risk. There is no advantage to pledging collateral if your unsecured rate is already in the 8-12% range.

Warning: Predatory Lenders and What APR Is Too High

Not all personal loan lenders operate ethically, and borrowers with fair or poor credit are the most vulnerable to predatory practices. Knowing what to watch for can save you from a financial trap that makes your situation worse instead of better.

What APR is too high? As a general rule, any personal loan with an APR above 36% should be avoided. Most states cap personal loan rates at 36% APR, and reputable lenders stay within this limit. All 10 lenders on our list cap their rates at or below 35.99%. If a lender offers you a rate above 36%, look elsewhere. For context, here is how different APR levels translate to cost on a $5,000, 36-month loan:

Red Flags of Predatory Lending

• Guaranteed approval with no credit check: Legitimate lenders always check your credit. A lender that guarantees approval without checking is either charging an extremely high rate to compensate or is running a scam
• Upfront fees before the loan is funded: Reputable lenders deduct origination fees from your loan proceeds or add them to the loan balance. They never ask you to pay fees out of pocket before you receive the money
• Pressure to borrow more than you need: A responsible lender helps you borrow the minimum amount necessary. If a lender pushes you toward a larger loan, they are prioritizing their profit over your financial wellbeing
• Balloon payments or unclear terms: If the loan requires a large lump-sum payment at the end of the term, or if the APR, fees, or payment schedule are not clearly stated in writing, walk away
• Payday loans and car title loans: These carry APRs of 200-400%+ and trap borrowers in cycles of debt. A personal loan from any lender on our list, even at 35.99% APR, is far cheaper than a payday loan

Payday loan alternatives. If your credit score is below 580 and you cannot qualify for a traditional personal loan, consider these alternatives before turning to a payday lender: credit union payday alternative loans (PALs) at rates capped at 28% APR, payment plans negotiated directly with your creditors, assistance from nonprofit credit counseling agencies, or local community assistance programs. The Consumer Financial Protection Bureau maintains resources for borrowers who are struggling with debt.

For strategies on improving your credit score so you can qualify for better loan rates, or for broader financial planning guidance including debt payoff strategies, explore our related guides.

Frequently Asked Questions About Personal Loans

What is the best personal loan company in 2026?

The best personal loan company depends on your credit profile and borrowing needs. For most borrowers, SoFi is the top overall pick because it charges no origination fees, no late fees, and offers unemployment protection. For the lowest rates with excellent credit, LightStream offers APRs starting at 7.49% with same-day funding. For borrowers with fair credit (580-669), Upstart uses AI-based underwriting that considers education and employment history alongside credit scores, making approval more accessible. Marcus by Goldman Sachs is the best choice if you want no-fee borrowing with flexible payment options.

What credit score do you need for the best personal loan rates?

To qualify for the best personal loan rates — typically under 10% APR — you generally need a credit score of 720 or higher, a debt-to-income ratio below 35%, and stable employment with verifiable income. Borrowers with scores of 740+ can access rates as low as 6.99-8.99% from top lenders like Marcus, LightStream, and SoFi. Scores in the 670-719 range can still get competitive rates of 10-15%, while scores of 580-669 will face higher rates of 18-29%.

Do personal loans hurt your credit score?

Applying for a personal loan involves a hard credit inquiry, which typically lowers your score by 5-10 points temporarily. However, many lenders now offer prequalification with a soft credit pull that does not affect your score, allowing you to compare rates before formally applying. Once you have the loan, it can actually help your credit over time by adding to your credit mix and building a positive payment history — as long as you make every payment on time. If you use the loan for debt consolidation, paying off credit card balances can lower your credit utilization ratio and may boost your score significantly.

How fast can you get a personal loan?

The fastest personal loan lenders can fund your loan the same day you apply. LightStream offers same-day funding for approved applicants who complete their application before 2:30 PM ET. SoFi and Discover typically fund within one to two business days. Upstart and Best Egg usually take one to three business days. LendingClub and Prosper, as peer-to-peer platforms, take three to five business days because your loan must be funded by investors.

Should I get a personal loan or use a credit card?

A personal loan is generally better for larger expenses over $3,000 or for debt consolidation because it offers a fixed interest rate, fixed monthly payment, and a defined payoff date. Credit cards are better for smaller purchases you can pay off within one to two billing cycles to avoid interest, or when a 0% introductory APR offer lets you finance a purchase interest-free for 12-21 months. If you need to borrow $5,000 or more and cannot pay it back within a year, a personal loan at 8-15% will almost always cost less than carrying a credit card balance at 20-28%.