18 Best Personal Loans for January 2023

Other personal loans to consider

Here are more personal loan companies we evaluated. Keep in mind that these lenders aren’t offered through Credible, so you won’t be able to easily compare your rates with them on the Credible platform like you can with our partner lenders listed above.

Lender	Loan terms (years)	Loan amount	Best for
Show details	2, 3, 4, 5	$3,000 – $50,000 (depending on relationship with HSBC Bank)	HSBC: Best for existing HSBC customers
Rates: Fixed Loan terms (years): 2, 3, 4, 5 Loan amount: $3,000 – $50,000 (depending on relationship with HSBC Bank) Fees: None Discounts: Does not disclose Eligibility: Available in all states except WI Min. income: Does not disclose Customer service: Phone, chat Soft credit check: Yes Min. credit score: Does not disclose Time to get funds: 1 – 3 days
Show details	3	$1,000 – $35,000	PNC: Best for small loan amounts
Rates: Fixed Loan terms (years): 3 Loan amount: $1,000 – $35,000 Fees: None Discounts: None Eligibility: Does not disclose Min. income: Does not disclose Customer service: Phone Soft credit check: Yes Min. credit score: Does not disclose Time to get funds: Does not disclose
Show details	3, 5	$2,000 – $45,000	Rocket Loans: Best for quick loan funding
Rates: Fixed Loan terms (years): 3, 5 Loan amount: $2,000 – $45,000 Fees: Origination fee Discounts: Autopay Eligibility: Available in all states except IA, NV, and WV Min. income: Does not disclose Customer service: Phone, email Soft credit check: Yes Min. credit score: Does not disclose Time to get funds: Does not disclose
The lenders in this table aren’t our partners. But you can use Credible to compare rates in 2 minutes from other lenders who offer personal loans. Get Rates Now

How to qualify for a personal loan

While eligibility criteria can vary by lender, you’ll likely come across a few common requirements, including:

• Good credit: You’ll typically need good to excellent credit to get approved for a personal loan — a good credit score is usually considered to be 700 or higher. Several lenders offer personal loans to borrowers with poor and fair credit – for example, you might be able to get a personal loan with a 600 credit score or lower. But keep in mind that these loans generally come with higher interest rates compared to good credit loans.
• Verifiable income: Some lenders have a minimum income requirement while others don’t — but in either case, you’ll likely have to show proof of income, such as from a traditional job, self-employment, or other source.
• Low debt-to-income ratio: Your debt-to-income (DTI) ratio is the amount you owe in debt payments each month compared to your income. Lenders typically like to see a DTI ratio of 40% or less — though some lenders might make exceptions to this.

Learn More: 6 Credit Unions Offering Personal Loans

If you don’t qualify

If you don’t qualify for a personal loan, here are a few other options to consider:

• Apply with a cosigner. If you have less-than-perfect credit, applying with a cosigner who has good credit could improve your chances of getting approved for a personal loan.
• Take on a side hustle. Another way to possibly earn some extra cash is by taking on a side hustle. For example, you could sign up to drive for Uber, perform tasks through TaskRabbit, or deliver food with DoorDash.
• Sell stuff you’re not using. See if there are items you’re no longer using in your home, such as electronics, gently used clothing and toys, or even a second vehicle. You might be able to sell them to get the cash you need.

Check Out: Emergency Loans: How to Get a Personal Loan Fast

How to take out a personal loan

If you’re ready to take out a personal loan, follow these four steps:

1. Research and compare lenders. Be sure to compare as many lenders as possible to find the right loan for your situation. Consider not only personal loan interest rates but also repayment terms, any fees charged by the lender, and eligibility requirements.
2. Pick your loan option. After comparing lenders, choose the loan option that works best for you.
3. Complete the application. Once you’ve picked a lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs.
4. Get your funds. If you’re approved, the lender will have you sign for the loan so the funds can be released to you. The time to fund for a personal loan is usually about one week — though some lenders will fund loans as soon as the same or next business day after approval.

Before you take out a personal loan, it’s important to consider how much that loan will cost you. This way, you can be prepared for any added expenses. You can estimate how much you’ll pay for a loan using our personal loan calculator below.

How to get the best personal loan rates

For borrowers who took out a personal loan through Credible during the week of September 12, 2022, three-year personal loan interest rates averaged 11.88% while rates on five-year personal loans averaged 15.93%.

However, it’s possible to qualify for better interest rates than this. To get the best personal loan rates, you’ll typically need good to excellent credit — in general, the better your credit, the lower your rate. Choosing a shorter loan term could also get you a better rate.

If you want to get approved for better interest rates, here are a few options to consider:

• Compare your rates from multiple lenders. To find the best rate you can get, it’s critical to shop around and compare your options from as many lenders as you can. You might get a better rate from one lender over another.
• Build your credit. If you can wait to take out a personal loan, it could be worth spending some time improving your credit before applying to qualify for a better rate in the future. A few possible ways to do this include paying all your bills on time, paying down credit card balances, or becoming an authorized user on the credit card account of someone you trust.
• Find a cosigner. Even if you don’t need a cosigner to get approved for a loan, having one could qualify you for a lower interest rate than you’d get on your own. Just keep in mind that a cosigner shares responsibility for the loan, so they’ll be on the hook if you can’t make your payments.

Learn More: Direct Deposit Loans: 10 Alternative Loans With Fast Funding Times

Ways to use a personal loan

You can use a personal loan to cover almost any personal expense — though some lenders might restrict their loans for certain purposes. For example, you can only use Happy Money personal loans to consolidate credit card debt.

Here are some potential expenses you could cover with a personal loan:

Medical bills

Covering medical expenses is a common source of debt. A personal loan could help you pay for your procedures, then pay them off over a period of time.

Car repairs

If your car needs repairs, a personal loan could get you the funds you need quickly — depending on the lender you choose, you might get your funds as soon as the same or next business day.

Vacations

Vacations can come with a variety of expenses, such as travel and lodging — all of which could be covered by a personal loan.

Debt consolidation

If you use a personal loan to pay off your debt, you might qualify for a lower interest rate than you’ve been paying. This could save you money on interest and potentially help you pay off your debt faster.

Home improvements

A personal loan for home improvements could get you the money you need for home improvements, repairs, or a remodel.

Additionally, home improvement personal loans sometimes offer longer repayment terms that could help keep your monthly payments low — for example, you could have up to 12 years to repay a LightStream home improvement loan.

Major purchases

You can use a personal loan for almost any personal expense — this includes major purchases such as cars, boats, or recreational vehicles.

Moving costs

No matter if you’re moving to another state or just across town, it can be expensive. With a personal loan, you can cover various expenses that come with moving, such as renting a truck or hiring movers.

Check Out: Is Using a Personal Loan for Taxes a Good Idea?

Personal loan FAQs

Here are the answers to several commonly asked questions about personal loans:

What is a personal loan?

A personal loan is a type of installment loan — meaning you borrow a specific amount of money and make payments over a set period of time. Personal loans typically range from $600 up to $100,000 or more with repayment terms from one to seven years, depending on the lender.

Most personal loans are unsecured, so you don’t have to worry about collateral. Also keep in mind that unlike revolving credit (such as credit cards), you can’t access your loan amount more than once. If you want to borrow more, you’ll have to take out another loan.

Check Out: How to Check If a Personal Loan Company Is Legitimate

Which is better: a credit card or a personal loan?

When deciding between a personal loan vs. credit card, the right option for you will ultimately depend on your needs and spending habits. Here are a few pros and cons to keep in mind as you compare the two:

What interest rate can I expect?

Credible’s partner lenders offer personal loan rates starting at
5.4%+

. Keep in mind that the interest rates you’ll be offered depend primarily on three factors:

• Your credit score
• The repayment term you choose
• The lender you pick

What is the difference between APR and interest rate on a personal loan?

• The interest rate is how much you pay each year to borrow money, expressed as a percentage. Personal loan interest rates are usually fixed, which means your rate and payments won’t ever change. However, some lenders also offer variable-rate loans — meaning your rate and payment could fluctuate over the life of the loan.
• The APR includes not only the interest rate but also other loan fees, such as origination fees. This gives you a more complete picture of your loan costs compared to just the interest rate.

Learn More: Refinancing a Personal Loan: Can It Be Done?

Do personal loans have fees?

This depends on the lender — while some lenders charge personal loan fees, others don’t. Some potential fees that could come with personal loans include:

• Origination fees, which are deducted before your loan is disbursed
• Late fees, which are charged if you miss your payment due date
• Returned payment fees, which are assessed if you don’t have the funds in your bank account to cover your loan payment

Check Out: Home Equity Loan vs. Personal Loan: Which Is Right for You?

Can I get a personal loan with bad credit?

While you typically need good to excellent credit to qualify for a personal loan, some lenders offer personal loans for bad credit. Keep in mind, though, that borrowers with poor credit generally receive higher interest rates compared to borrowers with good credit.

You could also consider applying with a cosigner to improve your chances of getting approved. Having a cosigner might also help you get a better interest rate, which can save you money on your loan.

Learn More: Comparing Credit Score Ranges

Do personal loans hurt my credit?

When you apply for a new loan, the lender will use a hard credit check to determine how likely you are to repay the loan. This could cause a temporary drop in your credit score — typically five points or less.

But this dip is usually only temporary, and your score will likely go back up in a few months. Plus, if you make on-time payments on your new personal loan, you might see further improvements to your credit.

See: How Personal Loans Impact Your Credit Score

How many years can I finance a personal loan?

Personal loan terms generally range from three to seven years. Available terms vary by lender, so be sure to consider multiple lenders to find a term that fits your needs.

Also keep in mind that the longer the term, the more interest you’ll pay — so it’s usually a good idea to choose the shortest term you can afford.

Learn More: Personal Loans for College Students

How much will I qualify for?

Personal loans can range from $600 to $100,000 or more. But the actual amount you’ll qualify for when applying for a personal loan will depend on two factors: the lender’s loan limit and how much of your available monthly income will be required to make your loan payments.

For example, while some lenders will approve $100,000 personal loans, you’ll also have to meet their debt-to-income requirements.

Check Out: How to Find a $35,000 Personal Loan Without Stressing

How can I get a quick loan online?

Several online lenders offer simple online application processes to get a personal loan. Additionally, many of these lenders offer approval decisions within just a few minutes.

The time to fund an online personal loan is usually about five business days — but some lenders can fund your loan as soon as the same or next business day after approval.

Learn More: Swimming Pool Loans: Finance with a Personal Loan

Is it better to get a personal loan from my bank?

This depends on your bank. With some banks, borrowers who already have accounts could qualify for loyalty discounts if they take out a personal loan with them. If your bank offers these discounts or other perks, you might be able to reduce your overall loan costs.

However, it’s still important to compare as many lenders as you can in addition to your bank. This way, you can be sure you’re getting the right loan for your needs.

Check Out: Personal Loans From Banks: Where to Get Loans

Can I pay my loan off early?

If you can afford it, paying off your loan early can be a great way to save money on interest charges. Many personal loan lenders don’t charge prepayment penalties (fees assessed if you pay off your loan ahead of schedule), but some do.

What happens if I can’t pay back my loan?

Most personal loans are unsecured and don’t require collateral, so your assets aren’t at risk if you default on your loan. However, that doesn’t mean there aren’t consequences.

If you fall behind on your loan payments, the lender will report it to the credit bureaus, which could severely damage your credit score. A loan default can remain on your credit report for up to seven years, which could affect your eligibility for other types of credit later on.

What is the difference between a secured loan and an unsecured loan?

While most personal loans are unsecured, some lenders also offer secured personal loans. Here’s how they compare:

• Secured loans require collateral, such as a vehicle or other item of value. Because these loans are less risky to the lender, they tend to come with lower interest rates compared to unsecured loans. You might also have an easier time getting approved for a secured loan if you have bad credit. However, if you can’t keep up with your payments, the lender could seize your property.
• Unsecured loans don’t require collateral. These loans are riskier for lenders, so they often come with stricter requirements as well as smaller loan amounts. You’ll likely need good to excellent credit to qualify for an unsecured loan.

Credible’s partner lenders

If you’re ready to find your personal loan, Credible can help: You can compare your prequalified rates from our partner lenders in the table below in two minutes.

Lender	Min. credit score	Best for	Time to fund
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	Not disclosed by lender	Consolidating high-interest debt	If approved, funds sent within 24-72 hours†
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	550	Borrowers with poor credit	As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	700	Borrowers with excellent credit	Next business day
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	600	Borrowers with good credit	As soon as 1 to 3 business days after successful verification
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	660	Long repayment terms	As soon as the next business day after acceptance
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	600	Borrowers who need a cosigner	Usually takes about 2 days†
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	580	Borrowers with near-prime credit	As soon as the next business day
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	660	Large loan amounts	As soon as the same business day
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	660 (TransUnion FICO®️ Score 9)	Budget-friendly repayment options	Many Marcus customers receive funds in as little as three days
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	None	Borrowers with below-average credit	As soon as 1 to 2 business days after approval
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	600	Consolidating credit card debt	As soon as 2 to 5 business days after verification
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	660	Small loan amounts	2 to 4 business days after verification
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	640	Home improvement loans	As soon as one business day
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	600	Customizable monthly payments	90% funded within a day13
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	Does not disclose	Borrower perks	3 business days
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	560	Borrowers who want to build their credit	Within one day, once approved9
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	560	Fast loan funding	Within a day of clearing necessary verifications
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	580	Borrowers with little to no credit history	As fast as 1 business day6
Compare rates from these lenders without affecting your credit score. 100% free!Compare Now

Kat Tretina contributed to the reporting for this article.

About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 5.40%-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 10%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.

Methodology: Credible evaluated loan and lender data points in 8 categories to identify the “best companies” for personal loans. We looked at interest rates, repayment terms, repayment options, fees, discounts, and customer service availability offered by 21 lenders. We also considered each company’s max loan amount, how long it takes to receive funds, whether the minimum credit score is available publicly, and whether consumers could request rates with a soft credit check.

Credible receives compensation from its lender partners when a user of the Credible platform closes a loan with the lender.

Learn about Credible’s mission and promise to our readers.

About the author

Angela Brown

Angela Brown is a student loan, personal finance, and real estate authority and a contributor to Credible. Her work has appeared in Fox Business, LendingTree, FinanceBuzz, and Yahoo Finance.

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