Loans

Best Personal Loans of 2022

Choose from the best loan companies offering personal loans for debt consolidation, emergency expenses and more.

A personal loan allows you to borrow money to consolidate high-interest debt, finance a large purchase or cover emergency expenses.

If you have strong credit and a steady income, finding the best personal loan for your needs, especially if you can secure a low interest rate, could save you thousands. Here’s what you need to know about choosing a personal lender and getting approved.

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APR

MAX. LOAN AMOUNT

MIN. CREDIT SCORE

Alliant Credit Union

4.7

6.24% to 10.24% $50,000 Not disclosed

PenFed Credit Union

4.6

6.74% to 17.99% $50,000 650

Discover

4.6

5.99% to 24.99% $35,000 660

LightStream

4.5

3.99% to 19.99% $100,000 670

SoFi

4.5

6.99% to 22.23% $100,000 Not disclosed

Marcus by Goldman Sachs

4.4

6.99% to 19.99% $40,000 660

Upstart

4.4

Not disclosed $50,000 Not disclosed

Happy Money

4.3

5.99% to 24.99% $40,000 600

Best Egg

4.3

5.99% to 35.99% $50,000 640

U.S. Bank

4.2

6.99% to 19.49% $50,000 660

PNC Bank

4.2

5.99% to 13.84% $35,000 Not disclosed

Axos Bank

4.2

7.15% to 17.99% $50,000 700

Upgrade

4.1

6.55% to 35.97% $50,000 Not disclosed

LendingUSA

4.1

Up to 29.99% $47,500 Not disclosed

Rocket Loans

4.1

7.73% to 29.99% $45,000 Not disclosed

Oportun

4

6.99% to 35.99% $10,000 Not disclosed

LendingClub

4

6.34% to 35.89% $40,000 Not disclosed

Avant

3.9

9.95% to 35.99% $35,000 580

LendingPoint

3.9

7.99% to 35.99% $36,500 580

FreedomPlus

3.8

7.99% to 29.99% $50,000 Not disclosed

U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.

To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. Personal loan companies are evaluated based on customer service ratings, interest rates, maximum loan term, minimum and maximum loan amounts, minimum FICO score, online features, and origination fees. The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.

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To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.

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When you shop around for the best personal loan rate, you can save. Compare personal loan offers with national average personal loan trends to know whether you’ve found a competitive interest rate.

You could pay a higher interest rate or a lower one, depending on your credit score.

The average personal loan rate is 8.73%*.*Rate as of May 2022

 

Personal Loan Finder

Select your desired loan amount and loan purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.

A personal loan is a lump sum you can borrow from a bank, a credit union or an online lender and repay over a fixed amount of time, unlike a credit card or line of credit.

Personal loans are typically unsecured, which means they are supported by your creditworthiness rather than collateral. Collateral is an asset, such as a car or house, a lender may use to recoup its losses if you default on a secured loan.

You can get a personal loan from different types of lenders, including traditional brick-and-mortar banks and online lenders. They serve borrowers with varying credit scores, income levels and other requirements.

Pros

  • Depending on the lender, borrowers can potentially receive funds for personal loans in as little as one business day.
  • Personal loans can help borrowers consolidate high-interest credit card debt and pay it off faster at a lower interest rate.
  • Personal loans are delivered as a lump sum.
  • Personal loans are typically unsecured, so the borrower doesn’t have to use collateral.

Cons

  • Depending on the lender, borrowers may have to pay origination fees, or even prepayment fees.
  • A personal loan may have a higher APR than other options, such as a 0% credit card or a home equity loan, depending on creditworthiness and other factors.
  • Personal loans may be difficult for consumers with fair credit or below to obtain.

Lenders often set minimum requirements and will likely look at your credit score, payment history, income and debt-to-income ratio.

If you’re furloughed or unemployed, the lender may ask you for documentation that indicates when you’ll return to work, such as your furlough letter or a job offer.

Age eligibility requirements can vary by lender or by state and territory laws. Generally, consumers must be 18 to apply, but some states may require borrowers to be 19 or 21.

If you’re applying for a secured loan, the lender will also consider your collateral.

Find the Personal Loan That’s Right for You

IF YOU ARE: CONSIDER:
Trying to streamline your finances and pay off debts Best Debt Consolidation Loans
Looking for competitive interest rates Best Low-Interest Personal Loans
Seeking quick approval Best Emergency Loans for Bad-Credit Borrowers
Choosing a personal loan and have great credit Best Personal Loans for Excellent Credit
Choosing a personal loan and have good credit Best Personal Loans for Good Credit
Comparing fair-credit lenders Best Personal Loans for Fair Credit
Shopping for a loan but have bad credit Best Bad Credit Loans
Hoping to finance a medical procedure Best Medical Loans for Financing Medical Expenses
Exploring loans to consolidate credit card debts Best Personal Loans for Credit Card Refinance
Attending college and need a personal loan Best Personal Loans for Students
Facing a financial hardship and you’re a veteran Best Personal Loans for Veterans
Focusing your search on online lenders Best Online Loans
Researching options for less-than-perfect credit Best Installment Loans
Considering alternatives to traditional financial institutions Best Peer-to-Peer Lending

 

Although they won’t work for everyone, personal loan might make sense in certain situations. You may consider applying for a personal loan if you have an emergency expense, need to make a large purchase or want to consolidate some of your high-interest debts.

There are times when a personal loan might not be the best option, though. While personal loans can be used as home improvement loans, for example, you may want to consider a home equity loan instead if you don’t mind using your home as collateral. And for some types of special purchases, such as a wedding or a vacation, it’s best to plan and save so you can pay cash rather than take out a personal loan.

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Find the Personal Loan That’s Right for You

IF YOU ARE: CONSIDER:
Trying to streamline your finances and pay off debts Best Debt Consolidation Loans
Looking for competitive interest rates Best Low-Interest Personal Loans
Seeking quick approval Best Emergency Loans for Bad-Credit Borrowers
Choosing a personal loan and have great credit Best Personal Loans for Excellent Credit
Choosing a personal loan and have good credit Best Personal Loans for Good Credit
Comparing fair-credit lenders Best Personal Loans for Fair Credit
Shopping for a loan but have bad credit Best Bad Credit Loans
Hoping to finance a medical procedure Best Medical Loans for Financing Medical Expenses
Exploring loans to consolidate credit card debts Best Personal Loans for Credit Card Refinance
Attending college and need a personal loan Best Personal Loans for Students
Facing a financial hardship and you’re a veteran Best Personal Loans for Veterans
Focusing your search on online lenders Best Online Loans
Researching options for less-than-perfect credit Best Installment Loans
Considering alternatives to traditional financial institutions Best Peer-to-Peer Lending

 

Although they won’t work for everyone, personal loan might make sense in certain situations. You may consider applying for a personal loan if you have an emergency expense, need to make a large purchase or want to consolidate some of your high-interest debts.

There are times when a personal loan might not be the best option, though. While personal loans can be used as home improvement loans, for example, you may want to consider a home equity loan instead if you don’t mind using your home as collateral. And for some types of special purchases, such as a wedding or a vacation, it’s best to plan and save so you can pay cash rather than take out a personal loan.

  • Borrow from a family member. Asking for help may be difficult, but if someone is in a position to loan you money, then it may be better than a personal loan. It’s up to you to weigh the pros and cons of borrowing from friends or family.

 

Usnews.com

 

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