Individuals may get personal loans through banks, credit unions, and private lenders, such as online marketplace lenders and peer-to-peer lenders. The money from the loan may be used for almost anything, such as paying off other debt, making house improvements, or meeting family obligations such as a wedding or adoption.
Similar to a vehicle loan or a mortgage, a personal loan is repaid via monthly installments. Loan periods often run from 24 to 60 months, or even longer. The majority of personal loans are unsecured, which implies that they are not guaranteed by an asset such as a vehicle, home, or other property. If you need cash urgently, these loans are a smart option since the approval and financing procedure is often quicker than that of a home equity line of credit, which allows you to borrow money as you need it rather than in one lump amount.
Numerous personal loans provide funding within a few business days, so there is no need to delay. Consequently, the best personal loans must feature low rates of interest for those who qualify, a range of loan quantities and repayment options, and minimal costs.
List of Contents
- Best Personal Loans 2022: SoFi – The Overall
- Best Personal Loans 2022: LightStream – The Low-Interest Rates
- Best Personal Loans 2022: Upgrade – The Best for Bad Credit
- Best Personal Loans 2022: Marcus – Debt Consolidation
- Best Personal Loans 2022: Avant – Range of Repayment Terms
- Best Personal Loans 2022: Upstart – Loans as low as $1,000
- Best Personal Loans 2022: LendingPoint – Fast Funding & Below-average Credit
- Best Personal Loans 2022: Universal Credit – Comparing Multiple Offers
- Best Personal Loans 2022: Discover – No Interest If Repaid Within 30 Days
- Conclusion
- FAQs
Best Personal Loans 2022: SoFi – The Overall
Minimum credit score: 650
APR range: 6.99% to 22.28% (with autopay)
Loan amounts: $5,000 to $100,000
Term lengths: 2 to 7 years
Min. annual income: $30,000
Why We Selected It
SoFi is an online lending company that provides personal loans with set rates and no credit checks except for Mississippi. SoFi was founded in 2011 and has provided over $50 billion in loans. It distinguishes out since it allows individuals to borrow significant sums of money and has extended loan periods.
SoFi provides loans ranging from $5,000 to $100,000, making it an excellent option for those with excellent credit who need to borrow a substantial amount of money. The amount of money you can borrow depends on where you reside. SoFi’s repayment durations extend from two to seven years, giving it an extremely flexible alternative for those with strong credit (at least 650) and a high annual income (at least $45,000). SoFi also allows individuals seeking loans to apply jointly. However, co-signers are not permitted.
APRs for those that are authorized to borrow money are often low. SoFi charges no origination costs, late fees, or prepayment penalties. This is a distinguishing characteristic since most personal loan providers impose at least origination or late payment costs.
However, if you are considering obtaining a debt consolidation loan through SoFi, you should be aware that the lender does not pay the borrower’s other creditors directly. This implies that the loan funds will be deposited into your bank account, and you will be required to repay your other creditors individually. In addition, customers may get various additional perks and savings through the platform, such as unemployment protection and the opportunity to amend their payment due date once per year.
Pros
✔ No fees
✔ Loan amount ranges
✔ High-quality digital experience
✔ Acceptance of joint submissions
Cons
✘ Required creditworthiness
✘ No same-day financing
Additional Information
Eligibility: A personal loan applicant must have a minimum credit score of 650. However, many selected candidates have scores of 700 or above. Applicants must also have a minimum yearly income of $45,000, even though the average salary of a SoFi borrower exceeds $100,000.
Loan uses: Typically, SoFi personal loans may only be used for personal, family, or home purposes. This implies that a borrower may utilize loan funds for expenses such as medical bills, credit card repayment, house upgrades, or relocation. However, you cannot use SoFi loans to launch a new company, purchase real estate, stocks, or securities, pay for education, or get short-term bridging finance.
Turnaround time: After conditions are reviewed and accepted, borrowers often get their funds within a few days or the following business day. For loans exceeding $20,000, it may take more than a few days to get the cash.
Best Personal Loans 2022: LightStream – The Low-Interest Rates
Minimum credit score: 660
APR range: 5.73%–19.99% (with autopay)
Loan amounts: $5,000 to $100,000
Term lengths: 2 to 7 years
Min. annual income: $5,000
Why We Selected It
LightStream is a part of the company Truist that provides consumer loans. When SunTrust and BB&T joined, Truist was founded. Individuals may get personal loans using the site without making payments until the debt is repaid. The amount borrowed depends on the reason for the loan. Few lenders provide loans more significant than the maximum LightStream loan amount. The loan may be repaid over two to seven years, making it an excellent option for those who want to pay for large costs over time.
LightStream does not impose fees for loan origination, late payments, or early payoff. The phrases are also attractive and straightforward. The lender also offers 0.50% rate reductions to consumers who enroll in autopay, which is more than most lenders provide for the same incentive. In addition, the lender provides a 30-day satisfaction guarantee, assistance with Covid-19/hardship, and a chance to reduce interest rates. LightStream will surpass a competitor’s interest rate by 0.1% if certain conditions are met.
LightStream provides loans in all fifty states, Puerto Rico, and the District of Columbia. The lender’s customer support team is accessible seven days a week to applicants and Monday through Saturday to existing borrowers. LightStream does not provide a mobile app for loan management. However, consumers may access their accounts via LightStream.com.
Pros
✔ Without origination, prepayment, or late fees
✔ Competitively low costs
✔ Rapid financing and approval
Cons
✘ No prequalification process
✘ No deadline flexibility
✘ Restrictions on loan proceeds’ application
Additional Information
Eligibility: Before applying for a personal loan, LightStream recommends that applicants have excellent or outstanding credit. To increase their chances of approval, applicants should also have an extensive credit history with a range of account types, as well as a stable source of income that will enable them to pay off their current commitments and a new LightStream loan.
Potential LightStream borrowers do not have access to loan prequalification. In conjunction with the minimum credit score requirement, the platform is more attractive for those with a solid credit history. Applicants with higher credit scores have a greater chance of receiving favorable terms. LightStream does not enable co-signers, yet prospective borrowers are authorized to submit a joint application.
Loan uses: Personal loans from LightStream may be utilized for several purposes, such as home improvements and acquiring a new automobile, RV, or jewelry. Nonetheless, LightStream stands apart since loans may be used to finance land, timeshares, and so-called tiny residences. Like other major lenders, LightStream prohibits using its personal loans for higher education, business, and illegal activities. Additionally, borrowers are not permitted to utilize loan proceeds to refinance an existing LightStream loan.
Turnaround time: If the loan is approved before 2:30 p.m. Eastern time on a banking business day, LightStream clients may get their funds on the same day. To be eligible for same-day financing, the applicant must also examine and electronically sign the loan agreement, provide LightStream with funding options and relevant banking information, and complete the final verification process by 2:30 p.m. on the day the loan is approved.
Best Personal Loans 2022: Upgrade – The Best for Bad Credit
Minimum credit score: 560
APR range: 5.94% to 35.97%
Loan amounts: $1,000 to $50,000
Term lengths: 3 to 5 years
Min. annual income: $30,000
Why We Selected It
Upgrade was released in 2017, and all states except Iowa, Vermont, and West Virginia can use its online and mobile banking and credit services. Since then, the platform has given more than $3 billion in loans to over 10 million people and has kept improving its web and mobile features. Upgrade offers loans to people with bad credit, even though its maximum APRs are quite high compared to other online lenders.
The least you can borrow is $1,000, and the most you can borrow is $35,000. This is less than lenders who focus on low-risk customers. There are loans with terms of three and five years. Upgrade charges between 2.9% and 8% of the loan amount as an origination fee and borrowers will be charged $10 if their payment is more than 15 days late or does not go through. There are no savings for autopay. But Upgrade customers don’t have to pay penalties for paying off loans early, so you can lower the total cost of the loan by paying it off early.
Upgrade makes it easier to borrow money by giving borrowers a mobile app that lets them check their balance, make payments, and update their personal information. In addition, with Upgrade’s Credit Health service, it’s easy to keep an eye on your credit score while you have a loan.
Pros
✔ Option to add a co-signer
✔ Loan amounts ranging from $1,000 to $50,000
✔ Debt consolidation loans can be paid directly to the lender.
Cons
✘ High APR range
✘ Fees for origination, late payment, and inadequate money are assessed.
✘ Provides just two loan payback terms
Additional Information
Eligibility: Upgrade personal loan eligibility requires a minimum credit score of 560. The average credit score of a borrower is 697, making this a viable alternative for those with ordinary credit. In addition, there is no minimum income criterion for applicants, despite the fact that the typical borrower earns $95,000 annually. Applicants must have a maximum pre-loan debt-to-income ratio of 45%, excluding their mortgage payment.
Additionally, the lender evaluates each applicant’s free cash flow, which indicates the likelihood that they would make regular loan payments on schedule. Applicants must have at least $800 per month in income.
By enabling co-applicants, Upgrade makes loans more accessible.
Loan uses: Similar to the majority of other personal loans, Upgrade loans must be used to pay off credit cards, consolidate debt, make home renovations, or fund other large expenditures. However, upgrade differs from other lenders because it allows customers to utilize personal loan funds to cover company expenses. Additionally, Upgrade pays off third-party lenders directly, making debt consolidation simpler than with other lenders.
There are no further limits on using Upgrade loans beyond what the legislation specifies.
Turnaround time: Upon approval of an Upgrade loan, the borrower typically receives the cash within four working days. If Upgrade is directly repaying a borrower’s debts to a third-party lender, however, it may take up to two weeks for the money to be cleared.
Best Personal Loans 2022: Marcus – Debt Consolidation
Minimum credit score: 660
APR range: 6.99% –19.99%
Loan amounts: $3,500–$40,000
Term lengths: 3 to 6 years
Min. annual income: $35,000
Why We Selected It
Marcus by Goldman Sachs is a division of Goldman Sachs that provides personal loans between $3,500 and $40,000. Marcus may not be the ideal option for those who need to borrow a substantial amount of money, but it does provide loans with periods ranging from three to six years.
The APRs available to borrowers vary from 6.99% and 19.9999%, and those who enroll in autopay may save 0.25 percentage points. Similar to other leading lenders, Marcus does not impose any fees, even for signing up, paying late, or paying off the loan early. Borrowers may also take advantage of the platform’s customizable payment plans and reward for paying payments on time.
Marcus, like many other leading lenders, allows applicants to do a soft credit check to see whether they qualify for a loan. This facilitates quick access to your lending possibilities without negatively impacting your credit score. Marcus consumers are unable to manage their loans through a mobile app, but the lender makes up for this by providing them with other means to reach customer support. Borrowers may access a wealth of information online and speak with customer care seven days a week between 9 a.m. and 7 p.m. Eastern Time.
Pros
✔ There are no fees for origination, late payment, lack of funds, or prepayment.
✔ Provides direct payments to third-party lenders for debt consolidation
✔ Borrowers can change the date of their payments up to three times during the loan’s life.
Cons
✘ Not accepting co-applicants or co-signers
✘ No refinancing of existing student loans is permitted.
✘ Up to four days may pass between loan approval and funding.
Additional Information
Eligibility: Marcus does not publish the minimum necessary credit score, however, applicants must have at least a 660 score. Those with higher credit scores are eligible for cheaper interest rates and better terms. In addition, although not disclosing minimum income criteria, the platform requires applicants to have adequate revenue to afford loan payback. Finally, Marcus, unlike other lenders of personal loans, does not authorize co-signers or co-applicants.
Loan uses: Personal loans from Marcus may be utilized for various purposes, including debt consolidation, home repair, relocation, special events, travel, and vacations. Unfortunately, borrowers cannot refinance current student loans with Marcus personal loans. Still, the platform does allow various kinds of debt consolidation via a consolidation calculator and direct payment to third-party lenders.
Turnaround time: A loan may be authorized in less than 24 hours, which is faster than other lenders but not the quickest approval procedure we found. Once a loan is granted, it takes one to four days for the cash to reach the borrower’s account following bank account verification. However, financing time varies based on the financial institution and the processing date of the loan.
Best Personal Loans 2022: Avant – Range of Repayment Terms
Minimum credit score: 550
APR range: 9.95% –35.99%
Loan amounts: $2,000–$35,000
Term lengths: 2 to 5 years
Min. annual income: $14,400
Why We Selected It
Avant, a consumer lending platform founded in 2012 and headquartered in Chicago, provides secured and unsecured personal loans via a third-party bank (WebBank). Only the states of Hawaii, Iowa, New York, Vermont, West Virginia, and Maine do not provide unsecured loans. The platform focuses on providing loans to individuals with fair to excellent credit, and a minimum credit score of 580 is required to qualify.
In comparison to other lenders, the maximum loan amounts are modest. Still, the cheap minimum loan amount and flexible repayment terms (two to five years) make it an excellent option for borrowers. However, like other loans for those with poor credit, Avant personal loans are not free. Avant’s APR range of 9.5% to 35.99% for applicants with good to exceptional credit is relatively high, and there is no autopay discount. In addition, there is an administrative charge equaling up to 4.75% of the loan amount. However, this platform receives the highest marks from borrowers with less-than-perfect credit who need quick access to cash.
In April 2019, Avant and the Federal Trade Commission agreed to a $3.85 million settlement (FTC). According to records filed with the FTC, the lawsuit was initiated because Avant was accused of billing consumers who did not owe them late fees and interest, as well as accepting payments from customers without their consent or for more than the agreed-upon amount. We attempted to contact Avant to inquire about any changes to its procedures following the settlement, but they did not respond. Nevertheless, Avant has an excellent Trustpilot rating of 4.7 stars.
Pros
✔ Loan possibilities include both secured and unsecured.
✔ Low credit score required
✔ Maximum 60-month loan lengths are offered.
Cons
✘ Charges an administrative charge upfront
✘ Prime borrowers begin with a high APR.
✘ Not permitted: co-signers or co-applicants
Additional Information
Eligibility: Avant intends to provide credit services to a range of consumers, including those with average credit. As a result, Avant’s minimum credit score requirement is 580, while the typical borrower’s credit score falls between 600 and 700. Additionally, Avant targets low- to middle-income borrowers and has a minimum income criterion of $20,000, despite the majority of borrowers having an average household income between $40,000 and $100,000.
To make more individuals eligible, Avant will consider your income from sources other than your work, such as alimony and child support, and may even consider the payment of additional household members. Therefore, co-applicants and co-signers are not permitted with Avant.
Loan uses: Similar to many other personal loan organizations, Avant loans may be used to pay for medical expenses, auto repairs, home upgrades, relocating, travel, and vacations. Unfortunately, Avant borrowers cannot utilize personal loan funds to pay for company expenses. However, the platform allows current borrowers to refinance their existing Avant loans with another loan, perhaps at a reduced APR.
Turnaround time: If an Avant borrower is authorized for an unsecured loan before 4:30 p.m. Central Time, Monday through Friday, they may get their funds the next business day. However, similar to other personal loans, the borrower’s bank determines the period required to get the funds. Therefore, borrowers receiving secured loans may have a more extended waiting period.
Best Personal Loans 2022: Upstart – Loans as low as $1,000
Minimum credit score: 600
APR range: 5.35% –35.99%
Loan amounts: $1,000–$50,000
Term lengths: 3 to 5 years
Min. annual income: $12,000
Why We Selected It
Upstart has created a reputation for itself in the market for personal loans by employing artificial intelligence and machine learning to determine loan eligibility. In fact, Upstart claims it has been able to approve 27% more borrowers than it would have been able to under a conventional lending approach. However, with competitive APRs, Upstart is not the most excellent option for borrowers who can find better rates elsewhere. Still, a minimal credit score of 600 makes the platform a choice for those with average credit.
You don’t have to borrow (or pay interest) more than you need with Upstart’s loan alternatives, which start at $1,000. And despite the fact that Upstart’s loans are capped at $50,000, which is lower than the maximum offered by other lenders, this is likely sufficient for a large number of borrowers.
Even while Upstart’s three- and five-year loan durations are less flexible than those of other lenders, it’s likely a reasonable trade-off for candidates who may not be accepted in a more conventional financing climate. Additionally, it is accessible in every state except West Virginia and Iowa, making it as accessible as many other top lenders.
Pros
✔ No minimum credit score needed
✔ Changeability of payment dates
✔ Loan amounts ranging from $1,000 to $50,000
Cons
✘ No joint loan alternatives
✘ Paper copies charge
✘ Not defined eligibility standards
Additional Information
Eligibility: When reviewing borrower applications, Upstart distinguishes itself by using an AI-based platform that considers a variety of non-traditional factors. In addition, although the platform advertises a minimum credit score of 600, Upstart may accept candidates with insufficient credit history to have a credit scores. Upstart evaluates potential borrowers based on their college degree, employment history, place of residence, debt-to-income ratio, bankruptcies and delinquencies, and number of credit queries.
Borrowers must also have a full-time job or offer full-time employment within six months, regular part-time work, or another regular source of income, with a minimum annual income of $12,000. Not authorized are co-signers and co-applicants.
Loan uses: Personal loans from Upstart can be used to pay off credit cards and other debt for special events, moving, medical and dental bills, and home improvements. In addition, unlike many traditional and online lenders, Upstart lets people use personal loan money to pay for school expenses (except in California, Connecticut, Illinois, Washington, and the District of Columbia).
Personal loans can’t be used to pay for illegal activities or buy weapons, guns, or illegal drugs.
Turnaround time: Monday through Friday, if a loan is approved by 5 p.m. Eastern Time, the borrower may get the funds the next business day. When a loan is granted after 5 p.m., it is often not disbursed until the next or the day after. According to Upstart, however, 99% of loan applicants get their funds within one business day after consenting to the conditions of their loan. After a loan is approved, it might take up to three more business days to process a loan for school expenses.
Best Personal Loans 2022: LendingPoint – Fast Funding & Below-average Credit
Minimum credit score: 600
APR range: 7.99% to 35.99%
Loan amounts: $2,000 to $36,500
Term lengths: 2 to 5 years
Min. annual income: n/a
Why We Selected It
LendingPoint is an Atlanta-based online creditor that provides personal loans to potential customers in 48 states and the District of Columbia, but not in Nevada and West Virginia. Applicants in qualified states may apply online and get speedy financing.
Personal loans from LendingPoint vary from $2,000 to $36,500, with a minimum loan amount of $3,500 in Georgia. The repayment lengths range from 24 to 60 months or two to five years.
LendingPoint has two significant drawbacks: high maximum APRs and origination costs. At the same time, you may often avoid high APRs by keeping a good credit score; the origination costs charged by LendingPoint range from 0% to 6%, depending on the state where you reside.
Pros
✔ Rapid financing
✔ Low credit score requirements
✔ No prepayment penalty
Cons
✘ Origination costs ranging from 0 to 6%
✘ No co-signers or joint loans allowed
✘ Not accessible in Nevada and West Virginia
Additional Information
Eligibility: To be eligible for a LendingPoint personal loan, you must have a credit score of at least 600 and reside in one of the 48 qualifying U.S. states or Washington, D.C. Loans are not accessible to borrowers in Nevada and West Virginia.
Turnaround time: If authorized, you might get your cash as soon as the following working day.
Best Personal Loans 2022: Universal Credit – Comparing Multiple Offers
Minimum credit score: 560
APR range: 8.93% to 35.93%
Loan amounts: $1,000 to $50,000
Term lengths: 2 to 5 years
Min. annual income: n/a
Why We Selected It
Universal Credit is an online network of lenders whose partners offer personal loans of between $1,000 and $50,000. The time it takes to pay back a loan ranges from three to five years or 36 to 60 months.
People with bad credit can get a personal loan through Universal Credit, but it has a few problems. First, the APRs are much higher than the rates on our list that are the most competitive. Second, all personal loans from Universal Credit have an origination fee of between 4.25 and 8%. Since this is taken out of your loan profits, you will need to consider it when setting the size of your loan to ensure you get the right amount in the end.
Pros
✔ Flexible qualifying requirements
✔ The following day funding
✔ No prepayment penalty
Cons
✘ High APRs
✘ The origination charge on all personal loans is between 4.25 and 8%
Additional Information
Eligibility: Universal Credit demands a minimum credit score of 560, making it accessible to a diverse group of consumers.
Turnaround time: Universal Credit will transfer your cash to your bank within one business day after approval. However, the availability of your money is contingent upon the speed with which your bank processes the transaction. For example, it may take up to two weeks if you immediately pay off another creditor with the money.
Best Personal Loans 2022: Discover – No Interest If Repaid Within 30 Days
Minimum credit score: 660
APR range: 5.99% to 24.99%
Loan amounts: $2,500 to $35,000
Term lengths: 3 to 7 years
Min. annual income: $25,000
Why We Selected It
Discover is an online bank that allows people in all fifty states to get credit cards, retirement plans, and personal loans. Discover stands out as a lending platform because of its online application and mobile banking features, well-respected customer service staff, and fast funding.
Most loans can be paid back over three to seven years, ranging from $2,500 to $35,000. So, borrowers might be able to get a bigger loan from another lender, but the terms for paying back the loan are pretty flexible. For example, discover charges a fee for late payments, and autopay doesn’t get you a discount. But it doesn’t charge fees for starting the loan or paying it off early, which is the same as other top personal loan companies.
Pros
✔ Option to directly repay creditors
✔ No upfront costs or prepayment penalties
✔ Pays debtors directly
Cons
✘ Imposes late fines
✘ Small loan limit
Additional Information
Eligibility: A Discover personal loan requires a minimum credit score of 660, but the average Discover applicant has a score of 750. Discover does not require applicants to have a certain length of credit history. Also, applicants must show that their family makes at least $25,000 a year, but the average family income is not given. Discover also looks at each applicant’s credit history, current credit activity, and other credit inquiries. Cosigners and co-applicants are not allowed.
Loan uses: Discover offers personal loans for financial crises, medical expenses, adoption or fertility fees, auto repairs, and pet-related situations. Unlike other personal loan providers, Discover loans may be used to pay for small company expenses. Customers cannot utilize Discover loans to finance postsecondary education, repay secured loans, or engage in unlawful activities.
Turnaround time: Discover provides personal loans for financial crises, medical expenses, adoption or fertility costs, car maintenance, and pet-related fees. Unlike other personal loan providers, discover loans may be utilized to finance small company expenditures. However, you cannot use a Discover loan to finance a college education, settle secured debts, or engage in unlawful activity.
Conclusion
These loans are offered by conventional banks, credit unions, and internet lending platforms that make it simple to apply online – without visiting a bank office. In addition, many personal loans may be approved within a few business days, so you do not have to wait to get the money you need. The best personal loans have low-interest rates for qualifying customers, flexible loan amounts and payback options, and minimal costs. However, before deciding on the best personal loans for 2022, you should examine the specifics thoroughly.
FAQs
When choosing a personal loan, you should consider the interest rate, the loan amount, the repayment term, and any fees or charges associated with the loan. It is also important to consider the lender’s reputation, customer service, and any reviews or feedback from previous customers. Make sure you understand the terms and conditions of the loan, including any penalties for late or missed payments.
To apply for a personal loan, you will need to provide personal and financial information to the lender, including your income, employment status, and credit history. You may also need to provide documentation such as bank statements, tax returns, and pay stubs. You can usually apply for a personal loan online or in person at a bank or credit union.
Yes, you may be able to get a personal loan if you have bad credit, but you may have to pay a higher interest rate or provide collateral to secure the loan. Some lenders specialize in offering personal loans to borrowers with bad credit, but you should be cautious of predatory lenders who may charge exorbitant fees and interest rates.
A personal loan is a type of installment loan that is typically paid back over a period of months or years. Personal loans usually have lower interest rates and fees than payday loans, which are short-term loans that are meant to be repaid on the borrower’s next payday. Payday loans often have extremely high interest rates and can trap borrowers in a cycle of debt.
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