Best personal loan rates of July 2024
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BLUEPRINT
Updated 5:23 a.m. UTC July 1, 2024
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Finding a personal loan with a good interest rate can make borrowing money much less expensive in the long run. The lenders with the best personal loan rates of 2024 also typically provide a variety of loan amounts, relatively long repayment terms and fast funding. Several also offer rate discounts to help you save more money on your loan.
Best personal loan rates
- SoFi: Best for fast funding.
- LightStream: Best for large loans.
- Upgrade: Best for co-borrowers.
- LendingPoint: Best for fair credit.
- PenFed: Best for small loans.
- U.S. Bank: Best for in-person service.
- Axos Bank: Best for good credit.
- Discover: Best for excellent credit.
- TD Bank: Best for East Coast borrowers.
Why trust our personal loan experts
Our team of experts evaluated hundreds of personal loan products and analyzed thousands of data points to help you find the best fit for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 40 personal loan lenders reviewed.
- 640 data points analyzed.
- 6-stage fact-checking process.
Compare the best personal loan rates
| INTEREST RATES | LOAN AMOUNTS | REPAYMENT TERMS | MIN. CREDIT SCORE | TIME TO FUND (AFTER APPROVAL) | |
|---|---|---|---|---|---|
SoFi
| 8.99% to 29.49%
| $5,000 to $100,000
| 2 to 7 years
| 680
| As soon as the same day as approval
|
LightStream
| 6.99% to 25.99%
| $5,000 to $100,000
| 2 to 12 years (depending on loan type)
| Does not disclose
| As soon as the same day after approval
|
Upgrade
| 8.49% to 35.99%
| $1,000 to $50,000
| 2 to 7 years
| No minimum
| Within 1 business day after approval
|
LendingPoint
| 7.99% to 35.99%
| $2,000 to $36,500
| 2 to 6 years
| 600
| As soon as the next business day after approval
|
PenFed
| 8.99% to 17.99%
| $600 to $50,000
| 1 to 5 years
| Does not disclose
| Within 1 to 2 business days after approval
|
U.S. Bank
| 8.74% to 24.99%
| $1,000 to $50,000 ($25,000 maximum for non-U.S. Bank customers)
| 1 to 7 years (5-year maximum for non-U.S. Bank customers)
| Does not disclose
| Within 1 to 4 business days
|
Axos Bank
| 11.79% to 20.84%
| $7,000 to $50,000
| 3 to 6 years
| 730
| As soon as the same day
|
Discover
| 7.99% to 24.99%
| $2,500 to $40,000
| 3 to 7 years
| 660
| As soon as 1 business day after approval
|
TD Bank
| 8.99% to 23.99%
| $2,000 to $50,000
| 3 to 5 years
| Does not disclose
| As soon as the next business day after approval
|
All rates include discounts where noted by the lender and are accurate as of Jan. 11, 2024.
Methodology
Our expert writers and editors have reviewed and researched multiple lenders to help you find the best personal loan rates. Out of all the lenders considered, the nine that made our list excelled in areas across the following categories (with weightings): loan details (15%), loan cost (45%), eligibility and accessibility (15%), customer service (15%) and ease of application (10%).
Within each major category, we considered several characteristics, including APR ranges, loan amounts, maximum repayment terms, minimum credit score requirements, funding speeds and customer experience. We also evaluated whether providers offer lender discounts or charge late or prepayment fees as well as if co-signers or co-borrowers are permitted.
Why some lenders didn’t make the cut
Of the personal loan lenders that we reviewed, only a fraction made the cut. The reasons for this varied by lender, with several scoring lower due to having higher interest rates. Some also received lower scores based on having limited customer service options.
What is a personal loan?
A personal loan is a type of loan offered by a few kinds of lenders, including online lenders, banks and credit unions. The funds can be used for a wide range of purposes, such as to cover unexpected expenses, consolidate debt or finance a major purchase.
Personal loan terms, including the interest rate and repayment period, are generally fixed, and payments are due in equal monthly installments. You’ll typically have one to seven years to repay a personal loan while average interest rates can range from just under 6% up to 36%, depending on the lender.
Most personal loans are unsecured, meaning they don’t require collateral. Because this is riskier for lenders, personal loans can come with higher interest rates and more stringent requirements compared to secured loans.
How to compare personal loan rates
Comparing personal loan rates is crucial when shopping for financing. However, there are also other loan terms that can affect how much you pay in interest and other fees over the life of the loan. Here are some important points to consider when comparing borrowing costs:
- Interest rate: This is what you’re charged in addition to the amount you borrowed, usually expressed as a percentage of your loan balance. Several factors affect what interest rates you’re offered, such as your credit and the repayment term you choose. In general, you’ll need good to excellent credit to qualify for the best rates. Some lenders also offer loans for bad credit, but these generally come with higher interest rates.
- APR: Your loan APR includes not only the interest but also other fees charged by the lender. Because of this, you’ll get a better idea of how lenders compare by looking at the APRs rather than only the interest rates.
- Repayment term: The longer your repayment period, the more interest you’ll pay overall. That said, shorter terms come with higher monthly payments — though many lenders also offer better rates on loans with shorter terms. It’s usually best to choose the shortest term you can afford to avoid excessive interest charges.
- Fees: Some lenders charge fees on personal loans, such as origination fees or late fees. These can add to the cost of your loan.
Tip: Use our personal loan calculator to see how different rates and terms will affect your total repayment costs.
What is a good personal loan rate?
A good personal loan rate is generally one that’s lower than the national average. As of Jan. 1, 2024, the average rate for a three-year personal loan is 15.38% while the average rate for a five-year loan is 22.16%, according to data from Credible.
In general, you’ll need good to excellent credit to qualify for personal loans with the lowest rates. Borrowers with bad credit generally face higher rates because they’re seen as more of a risk by lenders.
Frequently asked questions (FAQs)
The APR on a personal loan is the yearly cost of your loan expressed as a percentage. It includes both the interest rate and any additional fees or charges. Looking at your APR can help you better understand the overall cost of borrowing as well as accurately compare loan costs from different lenders.
Ultimately, the best personal loan lender is one with accessible qualification requirements, sufficient loan amounts and budget-friendly terms. However, the best personal loan lender for you specifically will depend on your individual needs and qualifications.
Because of this, it’s important to take the time to shop around and compare your options with as many lenders as possible. Be sure to consider not only interest rates but also other factors like loan amounts, repayment terms, fees and eligibility requirements. Many lenders also let you get pre-qualified with only a soft credit check that won’t hurt your credit score, which will give you a better idea of what rate and terms you could get approved for should you formally apply.
With a good personal loan rate considered to be one below the national average, a bad one is generally one above the average. However, this is also highly subjective and is contingent on your financial circumstances. For example, rates above 36% are often viewed as predatory while borrowers with excellent credit might consider rates above 10% to be excessive.
“A rate above 15% usually sets off alarm bells, but context is key,” says Alastair Hazell, entrepreneur and founder of The Calculator Site. “Your credit history, personal financial situation and what you genuinely can afford all play significant roles. It’s not just about a number; it’s about your story.”
Whether you should get a personal loan from a bank depends on various factors. Banks often offer competitive rates to existing customers and those with good credit. You might also qualify for loyalty rate discounts if you already have an account with a bank. However, credit unions and online lenders might offer more flexible terms and less stringent eligibility requirements compared to banks.
Ultimately, be sure to compare rates, terms and fees from a wide variety of lenders to find the right option for your needs.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
