A personal loan is money you borrow to cover a large, one-time expense and repay with interest in monthly installments. Compared to credit cards, it can be a relatively inexpensive way to finance a big project or consolidate debt 21% of Americans have a personal loan and 67% believe it’s benefiting them.

While rates typically range from 7% to 36%, the average personal loan interest rate is now 11.05% as of June 2023. And while the best personal loans don’t charge fees, a no-fee personal loan is more difficult to come by now than a year ago. The lenders in this list offer some of the most competitive rates and terms available today, with options for all credit types.

5 best personal loans

• Best for bad credit: Plan B Loan
• Best for young professionals: Your Faster Payday
• Best for fair credit: Green Light Cash
• Best overall: USA New Loan

• Best payday loans for poor credit scores: Funds Joy

  How to compare personal loans

Keep in mind these top factors to find the best personal loan for your budget and needs:

• Review the requirements, especially the minimum credit score, to help avoid lenders you are ineligible for.
• Look at the APR to compare costs quickly. This number represents the interest and fees you’ll pay over one year.
• Consider origination fees to weigh the upfront cost of the loan. Lenders typically deduct this from the funds before you receive them or add it to your balance.
• Rule out lenders that don’t offer the loan amount you’re looking for to avoid overborrowing.
• Look for a repayment term that offers affordable monthly payments. Use our personal loan calculator to see how the term affects your payments.
• Assess the lender’s reputation by reading vetted customer reviews on sites like the Better Business Bureau and Trustpilot.

Also, consider how the application process meets your needs by looking at factors like the turnaround time and whether you can apply online. When you’ve narrowed down your choices, prequalify with your top picks to compare personalized offers — if those lenders offer prequalification.