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Best Online Personal Loans Of December 2024

Updated: Dec 19, 2024, 4:12pm

Colin BeresfordDeputy Editor, Personal and Business Loans

Colin Beresford is a writer and editor experienced in helping people make the best decisions with their money, whether it's buying a car or taking on a loan. He has written for Bloomberg, The Associated Press, NerdWallet, Car and Driver magazine, amo...

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Written By

Colin Beresford

Colin BeresfordDeputy Editor, Personal and Business Loans

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Deputy Editor, Personal and Business Loans

Reviewed by

Jordan TarverLead Editor, Mortgages & Loans

Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top perf...

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Reviewed

Jordan Tarver

Reviewed by

Jordan TarverLead Editor, Mortgages & Loans

Read Full Bio

Lead Editor, Mortgages & Loans

& 1 other

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Online personal loan lenders offer a wide range of funding options with flexible qualification requirements. The best online loans have competitive interest rates, a range of term options and low qualification requirements. We reviewed 44 online loan lenders to find the best options available. Our top pick is Upgrade because of its flexible minimum credit-score requirements, making it widely available to various borrowers.

Find the Best Personal Loan

Show Summary

Best Online Personal Loans of December 2024

Best for Poor Credit

Upgrade

Minimum Credit Score

300

APR range

9.99% to 35.99%

Loan amounts

$1,000 to $50,000

Via Credible.com’s Website

300

9.99% to 35.99%

$1,000 to $50,000

Editor’s Take

Upgrade is a personal loan lender that makes funding available to borrowers with bad credit.

Why We Like It

Upgrade’s minimum required credit score of 300 is lower than many other lenders. Upgrade also offers both secured and unsecured personal loans.

What We Don’t Like

Upgrade personal loans can be costly. Origination fees are between 0% and 12% of your loan amount, and the maximum annual percentage rate (APR) is 35.99%.

Who It’s Best For

Upgrade’s personal loans are best for borrowers with bad credit who need a loan between $1,000 to $50,000.

Consumer Sentiment Index

5.4

5.4/10

Consumer Score

The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.

Consumer Sentiment Index

5,884

How do we calculate

We gather and analyze consumer sentiment from a range of sources to create the Consumer Sentiment Index to determine customer satisfaction levels for each feature outlined below. This data is designed to give you an idea of real consumer experience of the services and product we review. This data is currently separate from our overall rating out of 5

Insights Analyzed

# Interest Rates and Fees
For Interest Rates and Fees

54% of people had positive sentiments

10% of people had neutral sentiments

36% of people had negative sentiments
54%

10%

36%
For Interest Rates and Fees
- 54% of people had positive sentiments
- 10% of people had neutral sentiments
- 36% of people had negative sentiments
# Customer Service
For Customer Service

67% of people had positive sentiments

3% of people had neutral sentiments

30% of people had negative sentiments
67%

3%

30%
For Customer Service
- 67% of people had positive sentiments
- 3% of people had neutral sentiments
- 30% of people had negative sentiments
# Loan Terms and Flexibility
For Loan Terms and Flexibility

74% of people had positive sentiments

10% of people had neutral sentiments

16% of people had negative sentiments
74%

10%

16%
For Loan Terms and Flexibility
- 74% of people had positive sentiments
- 10% of people had neutral sentiments
- 16% of people had negative sentiments
# Ease of Approval and Process
For Ease of Approval and Process

94% of people had positive sentiments

2% of people had neutral sentiments

4% of people had negative sentiments
94%

2%

4%
For Ease of Approval and Process
- 94% of people had positive sentiments
- 2% of people had neutral sentiments
- 4% of people had negative sentiments

Upgrade customers report mixed experiences with its personal loan offerings. Some wins that jump out include the streamlined application process, easy approval and quick funding. But their experiences were not perfect. Some users are dissatisfied with the high APRs and loan fees that make working with Upstart costly.

Pros & Cons

Flexible eligibility requirements
Can pay off creditors directly
High loan amounts available

High APR range
Fees for late payments and insufficient funds
Charges origination fees from 0% and 12%

Details

Eligibility:

Minimum credit score. 300
Minimum income. None
Co-applicants. Permitted

Customer service

We called Upgrade to gauge the responsiveness of its customer service team and found it to be one of the most responsive lenders on our list. While we waited just over one minute for their team to answer our call—which is not the fastest time—they were transparent and knowledgeable about Upgrade’s loans.

We received information on loan amounts, required documentation, interest rate ranges, approval speed, fees and various perks, like hardship programs and autopay discounts. The representative also confirmed that they report payments to credit bureaus.

Best for Competitive Rates

LightStream

Minimum Credit Score

660

APR range

6.94% to 25.29%

with autopay

Loan amounts

$5,000 to $100,000

Via Credible.com’s Website

660

6.94% to 25.29%

with autopay

$5,000 to $100,000

Editor’s Take

LightStream’s lowest advertised interest rates beat most competitors, but the best rates are reserved for highly qualified applicants.

Why We Like It

Interest rates on LightStream personal loans are as low as 6.94%. It also offers a rate beat of 0.10 percentage points if another lender offers you a lower rate.

What We Don’t Like

To find out if you qualify for LightStream’s low rates, you’ll have to submit a full application and undergo a hard credit check as the lender doesn’t allow applicants to prequalify.

Who It’s Best For

LightStream personal loans are best for borrowers with good credit and steady income who can qualify for the lender’s lowest rates.

Consumer Sentiment Index

4.0

4/10

Consumer Score

Consumer Sentiment Index

1,791

How do we calculate

Insights Analyzed

# Interest Rates and Fees
For Interest Rates and Fees

64% of people had positive sentiments

14% of people had neutral sentiments

22% of people had negative sentiments
64%

14%

22%
For Interest Rates and Fees
- 64% of people had positive sentiments
- 14% of people had neutral sentiments
- 22% of people had negative sentiments
# Customer Service
For Customer Service

19% of people had positive sentiments

1% of people had neutral sentiments

80% of people had negative sentiments
19%

1%

80%
For Customer Service
- 19% of people had positive sentiments
- 1% of people had neutral sentiments
- 80% of people had negative sentiments
# Loan Terms and Flexibility
For Loan Terms and Flexibility

71% of people had positive sentiments

18% of people had neutral sentiments

11% of people had negative sentiments
71%

18%

11%
For Loan Terms and Flexibility
- 71% of people had positive sentiments
- 18% of people had neutral sentiments
- 11% of people had negative sentiments
# Ease of Approval and Process
For Ease of Approval and Process

77% of people had positive sentiments

8% of people had neutral sentiments

15% of people had negative sentiments
77%

8%

15%
For Ease of Approval and Process
- 77% of people had positive sentiments
- 8% of people had neutral sentiments
- 15% of people had negative sentiments

LightStream borrowers appreciate the user-friendly application process, fast funding and competitive interest rates. However, there are a handful of concerns about customer service and discrepancies between advertised and actual rates.

Pros & Cons

Long loan terms available
Low interest rates
Fast approval and funding

No prequalification option
High minimum loan amount
Low average customer rating on Trustpilot

Details

Eligibility:

Minimum credit score. 660
Minimum income. Does not disclose
Co-borrowers. Permitted

Customer service

We tried to call LightStream to test the quality of its customer service, but they don’t provide a customer service number. If you want to reach their customer service team, you must contact them via email. Its email support is available Monday through Friday, 9:30 am to 7 pm and Saturday, 12 to 4 pm ET.

Best for Large Amounts

SoFi®

Minimum Credit Score

650

APR range

8.99% to 29.99%

with autopay

Loan amounts

$5,000 to $100,000

Via Credible.com’s Website

650

8.99% to 29.99%

with autopay

$5,000 to $100,000

Editor’s Take

SoFi offers some of the largest personal loan amounts and allows borrowers to prequalify online.

Why We Like It

SoFi’s personal loans range from $5,000 to $100,000. The lender offers repayment terms between two to seven years and charges no required fees.

What We Don’t Like

SoFi applicants need a minimum credit score of 650 to qualify, which is higher than many other lenders.

Who It’s Best For

SoFi’s personal loans are best for applicants with good credit who need a large personal loan.

Consumer Sentiment Index

4.2

4.2/10

Consumer Score

Consumer Sentiment Index

3,184

How do we calculate

Insights Analyzed

# Interest Rates and Fees
ForInterest Rates and Fees

57% of people had positive sentiments

14% of people had neutral sentiments

29% of people had negative sentiments
57%

14%

29%
ForInterest Rates and Fees
- 57% of people had positive sentiments
- 14% of people had neutral sentiments
- 29% of people had negative sentiments
# Customer Service
For Customer Service

26% of people had positive sentiments

11% of people had neutral sentiments

63% of people had negative sentiments
26%

11%

63%
For Customer Service
- 26% of people had positive sentiments
- 11% of people had neutral sentiments
- 63% of people had negative sentiments
# Loan Terms and Flexibility
For Loan Terms and Flexibility

56% of people had positive sentiments

23% of people had neutral sentiments

21% of people had negative sentiments
56%

23%

21%
For Loan Terms and Flexibility
- 56% of people had positive sentiments
- 23% of people had neutral sentiments
- 21% of people had negative sentiments
# Ease of Approval and Process
For Ease of Approval and Process

64% of people had positive sentiments

10% of people had neutral sentiments

26% of people had negative sentiments
64%

10%

26%
For Ease of Approval and Process
- 64% of people had positive sentiments
- 10% of people had neutral sentiments
- 26% of people had negative sentiments

While some borrowers appreciate SoFi’s simple application and disbursement process, others are dissatisfied with communication and customer service. Borrowers are also frustrated with misleading promotional offers and how their loan inquiries were handled.

Pros & Cons

Prequalification without a hard inquiry
Same-day approval possible
Can pay off third-party creditors directly

High credit score requirement
Co-signers not permitted

Details

Eligibility

Minimum credit score required. 650
Minimum annual income. $45,000
Co-borrowers. Permitted
Co-signers. Not permitted

Customer service

We evaluated SoFi’s customer service experience by calling its team directly. During our assessment, we found that its wait times were some of the longest—one minute and 41 seconds. Once we connected with customer service, its team was able to answer each of our questions effectively.

They disclosed loan amounts, available interest rates, required documents and loan approval times. They also shared information about prequalification and potential fees.

Best for Debt Consolidation

LendingClub

Minimum Credit Score

600

APR range

8.91% to 35.99%

Loan amounts

$1,000 to $40,000

Via Credible.com’s Website

600

8.91% to 35.99%

$1,000 to $40,000

Editor’s Take

LendingClub offers a wide-range of financial services, making it a good choice if you want to consolidate your debt with a full-service lender.

Why We Like It

LendingClub sends payment directly to creditors so borrowers don’t have to. The lender also consolidates all types of debt.

What We Don’t Like

LendingClub’s origination fees can be as high as 3% to 8%, which can reduce the total borrowed amount.

Who It’s Best For

LendingClub’s personal loans are best for borrowers who want their creditors paid directly with a debt consolidation loan.

Consumer Sentiment Index

6.0

6/10

Consumer Score

Consumer Sentiment Index

10,607

How do we calculate

Insights Analyzed

# Interest Rates and Fees
For Interest Rates and Fees

64% of people had positive sentiments

13% of people had neutral sentiments

23% of people had negative sentiments
64%

13%

23%
For Interest Rates and Fees
- 64% of people had positive sentiments
- 13% of people had neutral sentiments
- 23% of people had negative sentiments
# Customer Servic
For Customer Service

68% of people had positive sentiments

2% of people had neutral sentiments

30% of people had negative sentiments
68%

2%

30%
For Customer Service
- 68% of people had positive sentiments
- 2% of people had neutral sentiments
- 30% of people had negative sentiments
# Loan Terms and Flexibility
For Loan Terms and Flexibility

84% of people had positive sentiments

7% of people had neutral sentiments

9% of people had negative sentiments
84%

7%

9%
For Loan Terms and Flexibility
- 84% of people had positive sentiments
- 7% of people had neutral sentiments
- 9% of people had negative sentiments
# Ease of Approval and Process
For Ease of Approval and Process

95% of people had positive sentiments

2% of people had neutral sentiments

3% of people had negative sentiments
95%

2%

3%
For Ease of Approval and Process
- 95% of people had positive sentiments
- 2% of people had neutral sentiments
- 3% of people had negative sentiments

Borrowers are typically satisfied with LendingClub and value the competitive interest rates and efficient application process. However, some cite concerns about high origination fees and communication issues.

Pros & Cons

Directly pay off creditors with debt consolidation loans
Offers loans as small as $1,000 to $40,000
No minimum credit or income requirements

Charges origination fees
Terms available for two to five years

Details

Eligibility:

Minimum credit score. None
Minimum annual income. None
Co-borrowers. Permitted

Customer service

We tested LendingClub’s customer service to assess how helpful it is for prospective borrowers and found the representative could provide only surface-level answers. For example, after waiting just over one minute to connect with a rep, they confirmed you can set up autopay but did not confirm if any autopay discounts are available. In another case, they mentioned LendingClub charges an origination fee but didn’t disclose anything further like the amount.

However, this does not mean they were not responsive or able to provide helpful information. We connected with a rep in just over one minute. Through our evaluation, we gathered key information, including loan amounts, required documentation such as W-2s and bank statements, loan assistance options and funding turnaround times.

Best for Credit Card Debt Consolidation

Happy Money

Minimum Credit Score

640

APR range

8.95% to 17.48%

Loan amounts

$5,000 to $40,000

Via Credible.com’s Website

640

8.95% to 17.48%

$5,000 to $40,000

Editor’s Take

Happy Money’s loans are intended to help borrowers consolidate high-interest credit card debt.

Why We Like It

Happy Money sends payments directly to creditors and has a maximum annual percentage rate (APR) of 17.99%.

What We Don’t Like

Borrowing from Happy Money can become costly due to its origination fee of 1.5% to 5.5%, and its loans aren’t available in Massachusetts or Nevada. The lender may also not be able to consolidate debts other than credit card debt.

Who It’s Best For

Happy Money is best for borrowers who want to consolidate their credit card debt.

Consumer Sentiment Index

5.6

5.6/10

Consumer Score

Consumer Sentiment Index

1,928

How do we calculate

Insights Analyzed

# Interest Rates and Fees
For Interest Rates and Fees

79% of people had positive sentiments

6% of people had neutral sentiments

15% of people had negative sentiments
79%

6%

15%
For Interest Rates and Fees
- 79% of people had positive sentiments
- 6% of people had neutral sentiments
- 15% of people had negative sentiments
# Customer Service
For Customer Service

79% of people had positive sentiments

1% of people had neutral sentiments

20% of people had negative sentiments
79%

1%

20%
For Customer Service
- 79% of people had positive sentiments
- 1% of people had neutral sentiments
- 20% of people had negative sentiments
# 3 Loan Terms and Flexibility
For Loan Terms and Flexibility

53% of people had positive sentiments

9% of people had neutral sentiments

38% of people had negative sentiments
53%

9%

38%
For Loan Terms and Flexibility
- 53% of people had positive sentiments
- 9% of people had neutral sentiments
- 38% of people had negative sentiments
# Ease of Approval and Process
For Ease of Approval and Process

93% of people had positive sentiments

1% of people had neutral sentiments

6% of people had negative sentiments
93%

1%

6%
For Ease of Approval and Process
- 93% of people had positive sentiments
- 1% of people had neutral sentiments
- 6% of people had negative sentiments

Happy Money borrowers express mixed feelings about its personal loans. While many appreciate the streamlined application, quick approvals and competitive interest rates, others report poor communication, difficulties with payment adjustments and frustrations with the online platform.

Pros & Cons

Pays creditors directly
Offers low rates
No late fees, returned check fees or prepayment penalty fees

Has origination fees
Primarily consolidates credit card debt
Doesn’t allow co-signers or co-borrowers

Details

Eligibility

Minimum credit score. 640
Minimum income. None
Co-signers. Not permitted
Co-borrowers. Not permitted

Customer service

We tested Happy Money’s customer service quality to gauge a prospective borrower’s experience. Through our research, we found that Happy Money had the longest wait time, two minutes and 15 minutes, which may be frustrating for some customers.

Once we connected with a representative, they disclosed much of the information we hoped to receive. For example, they shared loan amounts, interest rates, required documentation and turnaround times for the entire loan process, including preapproval, approval and funding. Besides the wait time to speak with a representative, the call was helpful and effective.

Best for Banking With a Credit Union

PenFed

Minimum Credit Score

Does not disclose

APR range

8.99% to 17.99%

Loan amounts

$600 to $50,000

Via MoneyLion’s Website

Does not disclose

8.99% to 17.99%

$600 to $50,000

Editor’s Take

PenFed Credit Union offers a wide range of financial services and allows anyone to become a member by opening an online savings account and depositing at least $5.

Why We Like It

For those who want to borrow from a credit union, PenFed’s personal loans are a great choice due to its flexible membership requirements and national presence.

What We Don’t Like

Although PenFed can lend in all states, it only operates branches in 14.

Who It’s Best For

PenFed personal loans are best for borrowers who want to work with a credit union.

Consumer Sentiment Index

3.8

3.8/10

Consumer Score

Consumer Sentiment Index

546

How do we calculate

Insights Analyzed

# Interest Rates and APR
For Interest Rates and APR

61% of people had positive sentiments

8% of people had neutral sentiments

31% of people had negative sentiments
61%

8%

31%
For Interest Rates and APR
- 61% of people had positive sentiments
- 8% of people had neutral sentiments
- 31% of people had negative sentiments
# Customer Service
For Customer Service

22% of people had positive sentiments

8% of people had neutral sentiments

70% of people had negative sentiments
22%

8%

70%
For Customer Service
- 22% of people had positive sentiments
- 8% of people had neutral sentiments
- 70% of people had negative sentiments
# Loan Terms and Flexibility
For Loan Terms and Flexibility

45% of people had positive sentiments

34% of people had neutral sentiments

21% of people had negative sentiments
45%

34%

21%
For Loan Terms and Flexibility
- 45% of people had positive sentiments
- 34% of people had neutral sentiments
- 21% of people had negative sentiments
# Ease of Approval and Process
For Ease of Approval and Process

67% of people had positive sentiments

3% of people had neutral sentiments

30% of people had negative sentiments
67%

3%

30%
For Ease of Approval and Process
- 67% of people had positive sentiments
- 3% of people had neutral sentiments
- 30% of people had negative sentiments

PenFed personal loan borrowers gave the lender mixed reviews. Some appreciated the ease and speed of the application process, while others had issues with customer service, transparency and loan processing. Some borrowers also faced unexpected fees.

Pros & Cons

No origination or prepayment fees
Prequalification with a soft credit check
Allows for co-borrowers

Doesn’t operate branches in all states
Requires membership
Charges late payment fee of $29

Details

Eligibility

Minimum credit score. Does not disclose
Minimum income. Does not disclose
Co-borrowers. Permitted

Customer service

We called PenFed to evaluate its customer service team’s responsiveness and found it to be one of the most helpful and efficient experiences among lenders on our list. While we waited one minute and 15 seconds to connect with a rep, they provided complete transparency for each of our questions.

PenFed’s team disclosed essential loan details like loan amounts, available interest rates, required documentation and loan approval times. They also shared information about potential fees and payment assistance options if repayment becomes challenging. We are impressed with PenFed’s willingness to share this information with prospective borrowers, which can improve the overall loan experience.

Best Existing U.S. Bank Customers

U.S. Bank

Minimum Credit Score

Does not disclose

APR range

8.74% to 24.99%

with autopay

Loan amounts

$1,000 to $50,000 for existing U.S. Bank customers and up to $25,000 for new customers

Depends on the area you live in

Via MoneyLion’s Website

Does not disclose

8.74% to 24.99%

with autopay

$1,000 to $50,000 for existing U.S. Bank customers and up to $25,000 for new customers

Depends on the area you live in

Editor’s Take

U.S. Bank operates physical branches in 27 states and offers personal loans to borrowers in every state.

Why We Like It

If you’d like to visit physical branches and work with your lender in person, U.S. Bank is a great option.

What We Don’t Like

U.S. Bank requires borrowers to be customers to access the maximum loan amount available—$50,000—and the lender’s longest repayment terms.

Who It’s Best For

U.S. Bank personal loans are best for current customers who want to do their banking in person.

Consumer Sentiment Index

2.6

2.6/10

Consumer Score

Consumer Sentiment Index

2,112

How do we calculate

Insights Analyzed

# Interest Rates and Fees
For Interest Rates and Fees

20% of people had positive sentiments

4% of people had neutral sentiments

76% of people had negative sentiments
20%

4%

76%
For Interest Rates and Fees
- 20% of people had positive sentiments
- 4% of people had neutral sentiments
- 76% of people had negative sentiments
# Customer Service
For Customer Service

5% of people had positive sentiments

2% of people had neutral sentiments

93% of people had negative sentiments
5%

2%

93%
For Customer Service
- 5% of people had positive sentiments
- 2% of people had neutral sentiments
- 93% of people had negative sentiments
# Loan Terms and Flexibility
For Loan Terms and Flexibility

36% of people had positive sentiments

21% of people had neutral sentiments

43% of people had negative sentiments
36%

21%

43%
For Loan Terms and Flexibility
- 36% of people had positive sentiments
- 21% of people had neutral sentiments
- 43% of people had negative sentiments
# Ease of Approval and Process
For Ease of Approval and Process

31% of people had positive sentiments

3% of people had neutral sentiments

66% of people had negative sentiments
31%

3%

66%
For Ease of Approval and Process
- 31% of people had positive sentiments
- 3% of people had neutral sentiments
- 66% of people had negative sentiments

The majority of feedback for U.S. Bank was negative, with many borrowers expressing dissatisfaction with the customer service and issues with the loan process. Borrowers reported unexpected fees, delays and problems with loan payoff and documentation.

Pros & Cons

Operates physical branches
0.50% autopay discount
Quick funding

Need a credit score of at least 800 to qualify for the lowest advertised rates
Smaller loan amounts available to non-U.S. Bank checking customers
Branch locations in only 26 states

Details

Eligibility

Minimum credit score. Does not disclose
Minimum income. Does not disclose
Co-signers. Permitted
Co-borrowers. Permitted

Customer service

We called U.S. Bank’s customer service team to test its quality. Compared to other lenders on our list, we waited the second longest for our call to be answered—two minutes and one second. Although the representative was friendly and transparent, they provided most of the information through a sales pitch, which may be unsettling to some prospective borrowers.

U.S. Bank was one of few lenders that provided a specific interest rate based on loan details we provided. While the rep didn’t ask for a credit score to provide the interest rate, its website discloses you need a score of at least 800 to qualify for the lowest rates.

Summary: Best Online Personal Loans of 2024

Upgrade

5.0

Compare Rates

Via Credible.com’s Website

Minimum Credit Score

300

Current Apr Range

9.99% to 35.99%

Loan Amounts

$1,000 to $50,000

LightStream

4.9

Compare Rates

Via Credible.com’s Website

Minimum Credit Score

660

Current Apr Range

6.94% to 25.29%

Loan Amounts

$5,000 to $100,000

SoFi®

4.9

Compare Rates

Via Credible.com’s Website

Minimum Credit Score

650

Current Apr Range

8.99% to 29.99%

Loan Amounts

$5,000 to $100,000

LendingClub

4.8

Compare Rates

Via Credible.com’s Website

Minimum Credit Score

600

Current Apr Range

8.91% to 35.99%

Loan Amounts

$1,000 to $40,000

Happy Money

4.8

Compare Rates

Via Credible.com’s Website

Minimum Credit Score

640

Current Apr Range

8.95% to 17.48%

Loan Amounts

$5,000 to $40,000

PenFed

4.4

Learn More

Via MoneyLion’s Website

Minimum Credit Score

Does not disclose

Current Apr Range

8.99% to 17.99%

Loan Amounts

$600 to $50,000

U.S. Bank

3.6

Compare Rates

Via MoneyLion’s Website

Minimum Credit Score

Does not disclose

Current Apr Range

8.74% to 24.99%

Loan Amounts

$1,000 to $50,000 for existing U.S. Bank customers and up to $25,000 for new customers

COMPANY	FORBES ADVISOR RATING	MINIMUM CREDIT SCORE	CURRENT APR RANGE	LOAN AMOUNTS	LEARN MORE
Upgrade	5.0	300	9.99% to 35.99%	$1,000 to $50,000	Compare Rates Via Credible.com’s Website
LightStream	4.9	660	6.94% to 25.29%	$5,000 to $100,000	Compare Rates Via Credible.com’s Website
SoFi®	4.9	650	8.99% to 29.99%	$5,000 to $100,000	Compare Rates Via Credible.com’s Website
LendingClub	4.8	600	8.91% to 35.99%	$1,000 to $40,000	Compare Rates Via Credible.com’s Website
Happy Money	4.8	640	8.95% to 17.48%	$5,000 to $40,000	Compare Rates Via Credible.com’s Website
PenFed	4.4	Does not disclose	8.99% to 17.99%	$600 to $50,000	Learn More Via MoneyLion’s Website
U.S. Bank	3.6	Does not disclose	8.74% to 24.99%	$1,000 to $50,000 for existing U.S. Bank customers and up to $25,000 for new customers	Compare Rates Via MoneyLion’s Website

How To Compare Online Personal Loans

The first step to comparing online loans is to prequalify for loan offers. Prequalification doesn’t impact your credit score and can give you an idea of the rates and terms you could be offered. Once you’ve prequalified, you can compare your options using these loan features:

Annual percentage rate (APR). APR represents the cost of borrowing, including interest and fees. Choosing the loan offer with the lowest APR can save you money, but be sure to consider other loan features before accepting funding.
Loan terms. Your loan term is how long you have to repay the loan, and each lender can offer different terms. Your loan terms will help determine your monthly payments and overall interest costs. A personal loan calculator can help determine the payments you can afford, and as a result, the terms that work for you.
Loan amounts. Each lender will likely offer different loan amounts. Estimating the financing amount you’ll need can help determine which loan offer works best for you. If lenders offer more than you request, be careful not to over-borrow since that can increase your interest costs and monthly payments.
Fees and penalties. Some lenders may charge late payment fees, prepayment penalties and origination fees. If you may miss payments or repay your loan early, it may be best to find a lender that won’t charge you for doing so.
Perks. Lenders can offer perks such as discounts for enrolling in automatic payments or payment deferrals if you need forbearance. These features can help you decide which loan option is right for you.

How To Qualify for an Online Personal Loan

It can be easier to qualify for an online personal loan, and in most cases, you’ll need to meet the requirements for each of these categories.

Credit score. Most online personal loan lenders set a minimum required credit score to qualify. In most cases, you’ll need a credit score of 600 or higher to qualify for a loan, but keep in mind that the higher your score, the more likely you are to be offered lower rates.
Income. Although most online lenders don’t disclose minimum income requirements, many do require that you have consistent, steady income to qualify for a loan. Lenders typically accept workers’ compensation, alimony, social security and employment income as acceptable forms of income.
Debt-to-income ratio (DTI). Lenders will often look at your current debt payments compared to your income, known as your DTI. Your DTI helps lenders determine if you can afford additional debt payments, and typically, lenders look for a DTI of 36% or less.
Collateral. If you’re applying for a secured loan, you’ll need sufficient collateral to back your loan. Before a loan is approved, the lender will evaluate your collateral to ensure it fully backs the loan amount.

Online Loans Vs. In-Person Loans

With an online personal loan lender, the entire process of receiving a loan occurs online. An in-person lender, on the other hand, allows you to apply for and receive a loan at a physical location.

Below are some of the ways that these two lenders compare.

ONLINE LENDERS	IN-PERSON LENDERS
Many options, including banks, credit unions and online-only lenders	Fewer options, which include credit unions and banks
Customer service is online	In-person customer service
Typically have lower interest rates	Typically have higher interest rates
More options for borrowers with bad credit or low income	Fewer options for borrowers with bad credit or low income

Alternatives to Online Loans

Online loan lenders aren’t the only option if you’re searching for a personal loan. Many credit unions and banks offer loans that can be applied for and funded online.

Alternatives to online loans include:

Home equity loans. If you’ve established equity in your home, you can tap into it using a home equity loan or home equity line of credit. Although these options can come with a lower interest rate than many personal loans, if you fail to repay these loans, the lender can take possession of your home.
Credit cards. If you need to cover a small financial emergency, credit cards can be an effective tool if you don’t overspend and create a plan for repayment. Credit card APRs and fees can make carrying a balance very costly.
Cash advance app. Cash advance apps can offer short-term loans of up to $500 in most cases. If repaid within the two-week term, these loans can be cost-effective, but if the repayment due date is missed, they can accumulate fees quickly.
Savings. If you can wait to pay for your expense, you won’t have to pay interest when you use your savings. Beyond that, you also won’t have to make payments on your loan over many years.
Friends and family. If possible, friends and family can be a good option for a loan. Before accepting any funding from friends or family, be sure to write a promissory note so both parties can agree on the loan terms.

Methodology

We reviewed 44 popular lenders based on 20 data points in the categories of customer sentiment index, loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:

Customer sentiment index. 40%
Loan costs. 22%
Loan details. 15%
Eligibility and accessibility. 13%
Application process. 10%

We also considered several characteristics within each major category, including available loan amounts, repayment terms, annual percentage rate (APR) ranges and applicable fees. We also looked at minimum credit-score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer-support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.

Find the Best Personal Loan

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

Colin Beresford

Deputy Editor, Personal and Business Loans

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