The Best Personal Loans of January 2022

If you’re in need of cash to cover an expense like a medical bill or a vacation, a personal loan could be a good option to refuel your bank account.

With a personal loan, you apply to take out a specific amount of money. The lender will show you available offers depending on financial factors such as your credit score, debt-to-income ratio, and ability to repay the loan. 

The best personal loan for you often depends on your credit score, as one lender may offer a better deal than another. We’ve rounded up the best lenders for people with a range of credit scores, with a particular emphasis on finding companies that offer low APRs. 

Regular APR

2.49% to 19.99% with AutoPay (Rates as of 12/14/2021. Rates vary by loan purpose.)

  • Pros & Cons
  • Details

  • Pros
    • Competitive APR
    • Approval decisions should come shortly after applying
    • Loans can be funded the same day
    • Wide range of borrowing amounts and terms
    • No fees
    • Only available to people with good credit
    • No pre-approval option
    • Loan amounts range from $5,000 to $100,000
    • Loan term lengths range from 2 to 12 years
    • Apply online and you’ll receive a response shortly during business hours.
    • Receive your funds as soon as the same day
    • Loans are made by Truist Bank, member FDIC

    Read Our Review

    Read Our Review
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    SunTrust Bank created Lightstream for online loans, and the bank offers personal loans for things like home remodels, medical debt, and debt consolidation. Lightstream is the best option for those with excellent credit because its lowest APR is lower than any other lender on our list — even though SoFi has a higher minimum credit score requirement.

    Look out for: High credit score requirements. Lightstream’s minimum credit requirement for a personal loan is 660, so this lender might not be right for all credit types.  

    Read Insider’s full review of Lightstream.

    Regular APR

    4.99% to 19.53% (with AutoPay)

  • Pros & Cons
  • Details

  • Pros
    • High maximum loan limit
    • Unemployment protection
    • No fees
    • Competitive APR
    • High minimum credit score requirement
    • High minimum loan amount
    • No in-person support
    • Loan amounts range from $5,000 to $100,000
    • Loan term lengths range from 2 to 7 years
    • Usually receive your money in a few business days after your application is approved
    • Unemployment protection if you lose your job during your loan repayment, allowing you to apply for a three-month forbearance, up to a total of 12 months
    • Loans are made by SoFi Lending Corp.

    Read Our Review

    Read Our Review
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    SoFi’s personal loans have a minimum credit score requirement of 680, at the lower end of what’s considered a good credit score. People with a good credit score will likely be able to get a good rate with SoFi, but borrowers with an excellent credit score may be able to snag a lower rate with Lightstream. 

    Interest rates on these loans range by about 13 percentage points, making for a smaller range than offered by other companies. This means interest rates for borrowers with relatively lower credit scores can only go so high.

    Look out for: A relatively high minimum income for approval. According to loan comparison site Credible, less than 1% of borrowers approved for personal loans through SoFi have an income of less than $50,000 per year, and a majority make more than $100,000. 

    Read Insider’s full review of SoFi.

    Regular APR

    5.74% to 19.99%

  • Pros & Cons
  • Details

  • Pros
    • Large maximum loan amounts
    • Discounts for current customers
    • Established brick-and-mortar lender
    • No origination fee or prepayment penalty
    • Significant late fees
    • History of mismanaging customer information
    • No online applications for non-customers
    • Loan amounts range from $3,000 to $100,000
    • Up to $39 late payment fee
    • Term lengths range from 1 to 7 years
    • Rate discounts to customers who have a checking account with the bank and who make their loan payments automatically through that account
    • Non-customers must apply by visiting a branch and talking with a banker
    • Loans made by Wells Fargo, member FDIC

    Read Our Review

    Read Our Review
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    As a longstanding bank, Wells Fargo offers a variety of loan types. Its personal loans offer low interest rates, smaller minimum borrowing amounts, and shorter terms than others. Wells Fargo offers loans between $3,000 and $100,000, for payoff terms as short as 12 months. Borrowers who want to get their debt under control quickly might find that Wells Fargo’s personal loans are flexible enough to tackle debt consolidation. 

    Look out for: Secured and unsecured loan options. With secured loans, you’ll be putting up collateral to protect your loan. That could mean your home or your car is at risk if you don’t pay. While secured loans can offer lower interest rates, they can put very important assets in jeopardy.  Wells Fargo is the only one of our top picks to offer secured loans.

    Additionally, it’s worth noting Wells Fargo’s history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues associated with creating fake accounts several years ago. 

    Read Insider’s full review of Wells Fargo.

    Regular APR

    9.95% to 35.99%

  • Pros & Cons
  • Details

  • Pros
    • Funds generally deposited by the next business day
    • No prepayment penalty
    • Multiple types of fees
    • High maximum APR
    • Low maximum loan limit
    • Loan amounts range from $2,000 to $35,000
    • Loan term lengths range between 2 to 5 years
    • Administration fee of up to 4.75%, which will be deducted from your loan proceeds when the loan is funded, and late fee that varies by state
    • Loans made by WebBank, member FDIC

    Personal loans are generally offered to those with better credit scores, but online lender Avant offers personal loan options for borrowers with credit scores as low as 600. It has a lower limit than other lenders, with $35,000 as the maximum loan amount.

    Look out for: Administrative fees. Avant’s personal loans carry a fee of up to 4.75% of your loan’s value. Considering that many of the other loans on this list don’t carry administrative fees, prepayment fees, or origination fees, Avant’s fee is high. 

    It’s also worth noting that interest rates are high from this lender. While this is a good option for anyone with credit scores in the lower 600s, those with better credit could find better rates elsewhere. 

    Read Insider’s full review of Avant.

    Personal loan credit score requirements

    Credit scores play a big role in your ability to get a personal loan, and how much you’ll pay to borrow the money. The better your credit score, the lower your interest rate is likely to be, and the less you’ll pay in interest over the life of the loan.

    You can find your credit report for free on from any of the three major credit bureaus weekly through April 20, 2022. While this report won’t give you your credit score, it will show you information about your credit and payment history, which lenders use to decide whether to give you a loan. Reviewing your credit report can help you know what you need to improve. 

    You can get your score at no cost on your credit card statement or online account. You can also pay for it from a credit reporting agency. 

    Credit scores fall into five categories in a range of 300 to 850, according to FICO:

    • Very poor: below 579
    • Fair: between 580 and 669
    • Good: between 670 and 739
    • Very good: between 740 and 799
    • Exceptional: above 800

    While credit does have an impact on your interest rate, it’s worth noting that interest rates can also change on their own, fluctuating based on the bank’s cost of borrowing called the federal funds rate. While there are alternatives to borrow money, like 0% APR credit cards and home equity loans, they don’t always work for every person or situation. 

    Other personal loans we considered

    • Marcus: This well-known lender and bank requires the same 660 minimum credit score as banks that offer much lower interest rates, like Lightstream. 
    • Discover: Discover’s loans are similar to Marcus’, with the same 660 minimum credit score requirements and starting 6.99% APR. But borrowers with good credit could get lower interest rates elsewhere. 
    • LendingClub: This online lending marketplace has an accessible 600 minimum credit score requirement. But, it charges an average origination fee of 5.2%, which can make the cost of borrowing add up. Read Insider’s full review of LendingClub.
    • Prosper: Fees keep Prosper from being a top choice. While it only requires a minimum credit score of 640, it also requires an origination fee between 2.4% and 5%. Read Insider’s full review of Prosper.

    Which lender is the most trustworthy?

    The Better Business Bureau, a non-profit organization focused on consumer protection and trust, evaluates businesses using factors like their responsiveness to consumer complaints, honesty in advertising, and clarity about business practices. Here is each company’s score:

    Three of our top picks are rated A- or higher by the BBB. Keep in mind that a high BBB score does not ensure a positive relationship with a lender, and that you should keep doing research and talking to others who have used the company to get the most comprehensive information possible. 

    The BBB doesn’t have a rating for Wells Fargo as the business is in the process of responding to previously closed complaints. Previously, the organization gave Wells Fargo an F in trustworthiness. In the past few years:

    If this history makes you uncomfortable, you may consider using one of the other personal loan lenders on our list.

    Frequently asked questions

    Why trust our recommendations?

    Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product, we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.

    How did we choose the best personal loans?

    Business Insider combed through the fine print of personal loans and compared our findings to those of personal finance sites including NerdWallet, MagnifyMoney, and ValuePenguin. The research included personal loans at all different credit levels. We considered factors like:

    • APR range: We considered interest rates, or what it costs to borrow. However, APRs are variable, and could change in the future. 
    • Variety of term lengths: We looked for banks that offered variety in loan terms, or the length of time it will take to repay the loan. The longer a loan is, the more likely it is to cost more.
    • Fees: Early payoff, origination, and administrative fees can increase the cost of borrowing. Where possible, we looked for loans without fees. 
    • Nationwide availability: Loans considered were available in most US states, if not all 50. 

    Is a personal loan right for me? What are other alternatives?

    Personal loans aren’t right for every situation, nor every person. Often, personal loans can be difficult to qualify for, with high credit score requirements. They can also carry high interest rates, which could mean there are better options out there. 

    Personal loans come in two types: secured or unsecured. Unsecured loans aren’t backed by collateral like a home or car, while secured loans are. Personal loans also have higher interest rates than you’d see on a car loan or a student loan. Homeowners sometimes find that home equity lines of credit are better to fund major repairs or renovations with lower interest rates.

    For small amounts, you might find that a 0% APR credit card would be a better fit — they can be especially useful for consolidating credit card debt or making purchases that you’d like to pay off over time. Generally, these cards have 0% APRs for the first 12 to 16 months from opening. Pay off the card in full before the introductory period is up, and you won’t pay interest on your purchase. 

    For larger purchases that won’t fit within a credit limit, a personal loan might be the right option. It’s worth calculating the interest you’ll pay, and carefully considering options like a secured loan to bring down the interest rate. However, personal loans should be used wisely, as they have high interest rates and could be risky when there’s collateral involved. 

    Where else can personal loans be found?

    If you’re a member of a local credit union or have one nearby to join, it could be worth checking on rates for a personal loan there. Oftentimes, smaller lenders like

    credit unions

    can offer much lower interest rates than bigger banks and lenders. They also tend to be more flexible about credit requirements. It might be worth checking on their rates and terms as part of your research.