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10 Best Personal Loans of February 2024: Rates Starting at 6.40%
After extensive research and analysis, here are the top picks for personal loans to suit various needs.
Best Overall: SoFi
SoFi stands out as the best overall personal loan lender due to its low cost, high customer satisfaction ratings, and comprehensive benefits package. Borrowers enjoy benefits like unemployment assistance, free financial planning, and career counseling.
| Company | APR | Credit Score est. | Loan Amount | More Details |
|---|---|---|---|---|
| SoFi | 8.99% – 25.81% | Not Disclosed | $5,000 – $100,000 | See Details |
Why We Chose It
SoFi offers a good blend of options along with extra benefits like unemployment assistance and career counseling. It’s highly rated by borrowers for its customer satisfaction.
Pros & Cons
Pros:
- Zero fees charged
- Same-day funding available
- Access to SoFi membership benefits
Cons:
- No secured loan options
- High minimum loan amounts
Qualifications
- Available in all U.S. states and Washington, D.C.
- Must be at least 18 years old
- Must have income or a job offer starting within 90 days
- Must be a U.S. citizen, permanent resident, or non-permanent resident
Best for Debt Consolidation: Discover
Discover offers excellent rates with zero origination fees, making it a great choice for debt consolidation.
| Company | APR | Credit Score est. | Loan Amount | More Details |
|---|---|---|---|---|
| Discover | 7.99% – 24.99% | 660 | $2,500 – $40,000 | See Details |
Why We Chose It
Discover provides fast funding and low rates, making it an ideal option for consolidating debt.
Pros & Cons
Pros:
- No origination fee
- Excellent customer satisfaction ratings
- Can send payment to creditors directly
Cons:
- Only accepts individual applications
- Can’t consolidate debt from a Discover credit card
Qualifications
- Must be at least 18 years old
- $25,000 minimum annual household income
- Must be a U.S. citizen or permanent resident
Best for Emergency/Quick Funding: Upgrade
Upgrade is suitable for fair credit scores and offers quick funding options.
| Company | APR | Credit Score est. | Loan Amount | More Details |
|---|---|---|---|---|
| Upgrade | 8.49% – 35.99% | 620 | $1,000 – $50,000 | See Details |
Why We Chose It
Upgrade accepts fair credit scores and offers various discount options for borrowers.
Pros & Cons
Pros:
- Multiple discount options
- $200 checking account bonus offer
- Allows collateral, co-borrowers, and co-signers
Cons:
- Expensive origination fee
- Poor customer satisfaction ratings
Qualifications
- Available in all U.S. states and Washington, D.C.
- Must be at least 18 years old
- Must have an email address and a bank account
Best for Bad Credit: Upstart
Upstart offers loans for borrowers with credit scores in the “bad” or “poor” range, with rates capped at 35.99%.
| Company | APR | Credit Score est. | Loan Amount | More Details |
|---|---|---|---|---|
| Upstart | 6.40% – 35.99% | 300 | $1,000 – $50,000 | See Details |
Why We Chose It
Upstart has the lowest minimum credit score requirement and offers fast funding options.
Pros & Cons
Pros:
- Low minimum credit score
- Fast funding
- Good loan amount flexibility
Cons:
- High origination fee
- High APRs
Qualifications
- Full range of credit scores considered
- Must be 18 years old
- Must have a verifiable source of income
Best for Excellent Credit: PenFed Credit Union
PenFed offers excellent rates and a wide range of loan options, with easy membership requirements.
| Company | APR | Credit Score est. | Loan Amount | More Details |
|---|---|---|---|---|
| PenFed Credit Union | 7.99% – 17.99% | Not Disclosed | $600 – $50,000 | See Details |
Why We Chose It
PenFed offers competitive rates and a variety of loan options with easy membership requirements.
Pros & Cons
Pros:
- No origination fee
- Excellent range of loan options
- Easy membership requirements
Cons:
- Doesn’t allow co-signers
- Doesn’t offer longer loan terms
Qualifications
- Available in all U.S. states and Washington, D.C.
- Must join the credit union by depositing $5 in a savings account
Best With No Credit Check: OppLoans
OppLoans offers loans without relying on a borrower’s credit score, making it accessible to those with poor or no credit history.
| Company | APR | Credit Score est. | Loan Amount | More Details |
|---|---|---|---|---|
| OppLoans | 160.00% – 179.00% | Not Disclosed | $500 – $4,000 | See Details |
Why We Chose It
OppLoans provides loans without requiring a minimum credit score, making it accessible to a wider range of borrowers.
Pros & Cons
Pros:
- No minimum credit score requirement
- Strong customer service
- Same-day funding available
Cons:
- Very high interest rates
- Short repayment terms
Qualifications
- Must be at least 18 years old
- Must have a bank account and verifiable source of income
Best Big Bank: U.S. Bank
U.S. Bank offers in-branch service and reduced credit requirements for current customers.
| Company | APR | Credit Score est. | Loan Amount | More Details |
|---|---|---|---|---|
| U.S. Bank | 8.24% – 24.99% | Not Disclosed | $1,000 – $50,000 | See Details |
Why We Chose It
U.S. Bank provides in-branch service and offers reduced credit requirements for current customers.
Pros & Cons
Pros:
- No origination fee
- In-branch service available
- Autopay discount
Cons:
- Poor customer satisfaction ratings
- Only available in about half of U.S. states
Qualifications
- Only available in 27 U.S. states
Best for Small Loan Amounts: Lake Michigan Credit Union
Lake Michigan Credit Union offers small loans starting from $250 with🌟 10 Best Personal Loans of February 2024: Picks for Every Need
Lake Michigan Credit Union 🏦
Content Description: Lake Michigan Credit Union (LMCU) offers small loan amounts with a low minimum credit score requirement of 620. However, there’s no pre-qualification available, and membership is required before borrowing.
Pros & Cons
| Pros | Cons |
|---|---|
| Small loan amounts | No pre-qualification |
| Low minimum credit score required | Membership required |
Qualifications
- Available in all U.S. states and Washington, D.C.
- Minimum credit score of 620 required for a personal loan
- Membership criteria include living, working, or attending church in Florida or Michigan’s lower peninsula, being a U.S. citizen with an immediate family member who is an LMCU member, or contributing $5 to the Amyotrophic Lateral Sclerosis Fund.
Navy Federal Credit Union ⚓
Content Description: Navy Federal Credit Union provides a wide range of term lengths and loan amounts with no origination fees and an autopay discount. However, membership is limited to military members and their families, and there’s no pre-qualification option.
Pros & Cons
| Pros | Cons |
|---|---|
| Same-day funding | Doesn’t allow co-signers |
| Autopay discount | Not available to most civilians |
| Highest J.D. Power customer satisfaction ratings | Doesn’t offer loan pre-qualification |
Qualifications
- Available in all U.S. states and Washington, D.C.
- Membership open to active-duty military members, veterans, Department of Defense contractors, and their families by depositing $5 in a savings account.
Patelco Credit Union 🏦
Content Description: Patelco Credit Union offers a broad range of loan amounts and term lengths with various discounts available. However, there’s a scarcity of customer reviews, and their deposit accounts may have fees.
Pros & Cons
| Pros | Cons |
|---|---|
| No origination fees | Scarcity of customer reviews |
| Many discounts available | Uninspiring checking and savings accounts |
| Wide range of loan options |
Qualifications
- Available in all U.S. states and Washington, D.C.
- Membership required; Patelco may pay for the first year of membership for those who don’t qualify for free membership.
SoFi 🎓
Content Description: SoFi offers low rates, quick funding, and high customer satisfaction. However, it requires good to excellent credit for the best rates.
Pros & Cons
| Pros | Cons |
|---|---|
| Quick funding times | Unsecured loans are more expensive than secured loans |
| Predictable monthly payments | Harms credit if you miss payments or default |
| Cheaper than using credit cards | Requires good to excellent credit for the best rates |
Qualifications
- Available for those with good to excellent credit.
- Flexible loan options.
Discover 💳
Content Description: Discover provides loans suitable for debt consolidation with competitive rates and next-day funding. However, there’s a late fee and a minimum loan amount requirement.
Pros & Cons
| Pros | Cons |
|---|---|
| Best for Debt Consolidation | Late fee |
| Next-day funding | Minimum loan amount required |
| Competitive rates |
Qualifications
- Requirements may vary based on creditworthiness.
Upgrade 🚀
Content Description: Upgrade offers quick funding for emergencies with various loan amounts. However, it has an origination fee and requires good credit for the best rates.
Pros & Cons
| Pros | Cons |
|---|---|
| Best for Emergency/Quick Funding | Origination fee |
| Quick funding | Requires good credit for the best rates |
| Various loan amounts |
Qualifications
- Good credit required for the best rates.
- Minimum credit score and income requirements apply.
Upstart 🚀
Content Description: Upstart caters to those with bad credit with competitive rates and quick funding. However, it charges a late fee and may have higher origination fees for those with lower credit scores.
Pros & Cons
| Pros | Cons |
|---|---|
| Best for Bad Credit | Late fee |
| Competitive rates | Higher origination fees for lower credit scores |
| Quick funding |
Qualifications
- Available for those with bad credit.
- Minimum credit score requirements may apply.
PenFed Credit Union 🏦
Content Description: PenFed Credit Union offers loans for those with excellent credit with competitive rates and quick funding. However, there’s an origination fee and a late fee.
Pros & Cons
| Pros | Cons |
|---|---|
| Best for Excellent Credit | Origination fee |
| Competitive rates | Late fee |
| Quick funding |
Qualifications
- Available for those with excellent credit.
- Minimum credit score requirements may apply.
OppLoans 💼
Content Description: OppLoans provides loans with no credit check for those with limited credit options. However, it comes with a higher APR and shorter repayment terms.
Pros & Cons
| Pros | Cons |
|---|---|
| Best With No Credit Check | Higher APR |
| No origination fees | Shorter repayment terms |
| Quick funding |
Qualifications
- No credit check required.
- Higher APR may apply.
U.S. Bank 🏦
Content Description: U.S. Bank offers loans suitable for big expenses with competitive rates and quick funding. However, there’s an origination fee and a late fee.
Pros & Cons
| Pros | Cons |
|---|---|
| Best Big Bank | Origination fee |
| Competitive rates | Late fee |
| Quick funding |
Qualifications
- Requirements may vary based on creditworthiness.
Guide to Choosing the Best Personal Loan 📝
Content Description: An overview of personal loans, including what they are, how they work, and factors to consider when choosing one.
What Is a Personal Loan and How Does It Work? 🤔
Content Description: Explains what a personal loan is, how it’s disbursed, and the repayment process.
Average Personal Loan Interest Rate 📊
Content Description: Information on the average interest rates for personal loans.
Where to Get a Personal Loan 🏦
Content Description: Discusses different sources for personal loans, including banks, credit unions, and online lenders.
Reasons to Apply For a Personal Loan 📝
Content Description: Lists common reasons people apply for personal loans, such as debt consolidation and home improvements.
Pros and Cons of Personal Loans 🎯
Content Description: Weighs the advantages and disadvantages of personal loans.
Tips for Picking the Best Personal Loan for You 💡
Content Description: Offers guidance on selecting the right personal loan based on various factors.
How to Qualify
🌟 10 Best Personal Loans of February 2024: Picks for Every Need
Personal Line of Credit
- Some banks and credit unions offer personal lines of credit, allowing you to draw against them as needed.
- Ideal for frequent small loans.
Loans from Family or Friends
- Consider asking your social support network for loans, formalized with promissory notes or loan agreements with interest.
Home Equity Loan or HELOCs
- Homeowners with at least 20% equity can utilize home equity loans or lines of credit for borrowing money, especially for home improvements.
Watch Out for Deferred-Interest Store Credit Cards
- Be cautious with store credit cards or financing offers with deferred interest.
- Ensure to pay off the amount financed within the interest-free period to avoid additional charges.
Frequently Asked Questions
🤔 What Is the Best Bank for a Personal Loan?
- U.S. Bank and online lender SoFi are top choices.
- U.S. Bank offers affordable rates with no origination fees, while SoFi provides additional benefits like financial advisors.
🤔 What Personal Loan Is the Easiest to Get Approved For?
- If you lack good credit or a strong income, having a creditworthy co-signer or using collateral can improve approval chances.
🤔 What Credit Score Is Needed for a Personal Loan?
- The average personal loan borrower had a credit score of 685 in Q4 2022.
- Requirements vary; some lenders have no minimum score while others require over 700.
🤔 How Much Money Can You Borrow With a Personal Loan?
- Lenders like SoFi offer loans up to $100,000, but actual amounts depend on your financial situation.
🤔 Should I Get a Personal Loan?
- Personal loans can be beneficial for emergencies or debt consolidation.
- Assess affordability using a personal loan calculator.
🤔 How Much Would a $5,000 Personal Loan Cost a Month?
- Monthly costs depend on loan amount, term, and interest rate.
- Use a personal loan calculator to estimate; e.g., a $5,000 loan over 24 months at 12.17% interest costs $235.76/month.
🤔 What Is the Best Personal Loan Out There?
- SoFi stands out for its competitive rates, fees, and customer experience.
🤔 What Company Is Best for a Personal Loan?
- SoFi ranks highest overall, offering competitive rates, large loan amounts, and excellent customer service.
Companies We Reviewed
- We researched 70 lenders to find the top 10 listed.
- SoFi emerges as the best overall lender.
How We Picked the Best Personal Loans
- Evaluated 70 lenders based on APRs, loan amounts, fees, customer experience, etc.
- Weighted data according to consumer priorities to generate star ratings.
Guide to Personal Loans
- Understand what personal loans are, how they work, and when to use them.
- Learn about alternatives and utilize personal loan calculators for informed decisions.