Best Personal Loans for Borrowers With Good Credit

·16 min read

Content provided by Credible. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.

This article first appeared on the Credible blog.

Having good credit often makes it easier to get approved for personal loans as well as qualify for low interest rates. A good credit score is usually considered to be 700 or higher while anything above 750 is excellent.

Keep in mind that the best personal loans for good credit provide competitive interest rates, a wide selection of loan terms, and inclusive eligibility requirements.

Best personal loans for good and excellent credit

Before you take out a personal loan, it’s important to consider as many lenders as possible. This way, you can find the right loan for your needs.

Here are Credible’s partner lenders that offer personal loans for good credit:

Avant

Avant offers personal loans from $2,000 to $35,000 with repayment terms from two to five years. If you’re approved, you could get your funds as soon as the next business day.

Pros

  • Fast loan funding

  • Accepts poor and fair credit

  • No prepayment penalty

Cons

  • Not available in Colorado, Iowa, Hawaii, Vermont, Nevada, New York, or West Virginia

  • Administration fee up to 4.75%

  • Charges late and dishonored payment fees

Axos Bank

With Axos Bank, you can borrow $5,000 to $35,000 with terms from one to five years. If you’re approved, you could get your funds as soon as the next business day.

Pros

  • Fast loan funding

  • Competitive rates

  • Variety of loan uses

Cons

  • Minimum credit score is in the upper range of good credit

  • Origination fees from 0% to 2%

  • Charges late and insufficient funds fees

Best Egg

Best Egg personal loans range from $5,000 to $50,000 with repayment terms from two to five years. Additionally, rates from Best Egg can be very competitive for borrowers with good to excellent credit and income.

Pros

  • Competitive rates

  • Fast loan funding

  • No prepayment penalty

Cons

  • Origination fees from 0.99% to 5.99%

  • Charges late fees

  • Not available in Iowa; Vermont; Washington, D.C.; or West Virginia

Discover

If you’re looking for a long repayment term, Discover could be a good choice — you can borrow $2,500 to $35,000 with terms from three to seven years. Just keep in mind that opting for a longer term means you’ll pay more in interest over time.

Pros

  • Repayment terms up to seven years

  • Fast loan funding

  • No origination fee

Cons

  • Charges late fees

  • Must borrow at least $2,500

  • Can’t add a cosigner to the loan

FreedomPlus

If you’re planning to consolidate debt with a personal loan, FreedomPlus might be a good option — if you use at least 85% of a FreedomPlus loan to pay off existing debt, you might qualify for a lower interest. Adding a cosigner or showing proof of retirement savings could also get you a better rate.

You can borrow $10,000 to $35,000 with repayment terms from two to five years.

Pros

  • Fast loan funding

  • No prepayment penalty

  • Could get a lower rate by using 85% of the loan for debt consolidation, adding a cosigner, or showing proof of retirement savings

Cons

  • Origination fees from 1.99% to 4.99%

  • Must borrow at least $7,500

  • Not available in Nevada

LendingClub

With LendingClub, you can borrow $1,000 to $40,000 with a three- or five-year term. Additionally, if you use a LendingClub personal loan to pay off credit cards or other debt, you might get a lower rate if you let LendingClub pay up to 12 creditors directly.

Pros

  • Could get a lower rate by having LendingClub pay creditors directly

  • No prepayment penalty

  • Being turned down doesn’t hurt your credit score

Cons

  • Can have higher rates than other lenders

  • Origination fees from 3% to 6%

  • Charges late fees

LendingPoint

LendingPoint personal loans range from $2,000 to $36,500 with terms from two to five years.

If you’re approved, you could get your funds as soon as the next business day.

Pros

  • Accepts poor credit scores

  • Fast approval decisions

  • Fast loan funding

Cons

  • Can have higher rates compared to other lenders

  • Origination fees from 0% to 6%

  • Not available in Nevada or West Virginia

LightStream

If you need to borrow a large amount, LightStream could be a good choice — you can borrow $5,000 to $100,000. Most LightStream loans have terms from two to seven years, but if you use your loan for home improvements, you could have up to 12 years to repay it.

Pros

  • Can borrow up to $100,000

  • Funding as soon as the same business day

  • 0.50% autopay discount

Cons

  • Autopay discount available only before loan funding

  • Not available in Rhode Island or Vermont

  • Doesn’t disclose minimum income requirements

Marcus

With Marcus, you can borrow $3,500 to $40,000 with repayment terms from three to six years. After making at least 12 on-time, consecutive payments, Marcus will let you defer one monthly payment interest-free.

Pros

  • No fees

  • 0.25% autopay discount

  • Can defer one monthly payment interest-free after making 12 consecutive, on-time payments

Cons

  • Doesn’t disclose minimum income requirements

  • Potentially longer funding time compared to some other lenders

  • Doesn’t allow cosigners

OneMain Financial

OneMain Financial offers personal loans from $1,500 to $20,000 with terms from two to five years. If you’re approved, you could get your funds as soon as the same day — however, this usually requires a visit to a branch office.

Pros

  • Fast loan funding

  • No minimum credit score

  • Considers financial history, income, expenses, and loan purpose in addition to credit history when determining creditworthiness

Cons

  • Can have higher interest rates compared to other lenders

  • Higher loan amounts might require collateral

  • Origination fees from $25 to $500 or from 1% to 10% of loan amount, depending on your state

Payoff

With Payoff, you can borrow $5,000 to $40,000 with terms from two to five years. Keep in mind that Payoff personal loans are specifically designed for credit card consolidation — you can’t use them for other purposes.

Pros

  • Free FICO score updates

  • If you lose your job, Payoff will work with you on payments

  • Offers scientific personality, stress, and cash flow assessments to help you get a better understanding of your personal finances

Cons

  • Can only use loans for credit card consolidation

  • Origination fees from 0% to 5%

  • Not available in Massachusetts, Nebraska, Nevada, or Ohio

PenFed

If you’re looking for a small personal loan, PenFed might be a good choice — you can borrow as little as $600 up to $50,000 with terms from one to five years.

Keep in mind that while you don’t have to join the credit union to apply for a loan, you’ll have to become a member if you are approved and choose to accept the loan.

Pros

  • Can borrow small loan amounts

  • No fees

  • Can use for a variety of purposes

Cons

  • Doesn’t disclose minimum income requirements

  • Must join the credit union if you are approved and decide to accept the loan

  • Sends loan funds through the mail, which can take more time

Prosper

Prosper offers personal loans from $2,000 to $40,000 with three- or five-year terms. If you’re approved, you could get your funds as soon as the next business day.

Pros

  • No prepayment penalty

  • No minimum income requirement

  • Can be used for a variety of purposes

Cons

  • Origination fees from 2.4% to 5%

  • Not available in Iowa, North Dakota, or West Virginia

  • Funding could take up to 14 days (though might be as soon as one business day)

SoFi

SoFi could be a good choice if you need to borrow a large amount — its loans range from $5,000 to $100,000 with terms from two to seven years. With SoFi, borrowers also have access to several perks, including unemployment protection, career coaching, and investing advice.

Pros

  • Can borrow up to $100,000

  • No fees

  • Borrower perks (such as unemployment protection and investing advice)

Cons

  • Doesn’t disclose minimum income or credit requirements

  • Not available in Mississippi

  • Funding can take longer compared to some other lenders

Upgrade

Upgrade offers personal loans from $1,000 to $50,000 with two, three, five, or six year terms. Additionally, borrowers can take advantage of free credit monitoring and educational resources.

Pros

  • Fast approval decisions

  • Free credit monitoring and educational resources

  • Funding within a day of clearing necessary verifications

Cons

  • Origination fees from 2.9% to 8%

  • Not available in West Virginia

  • Limited repayment terms (three or five years)

Upstart

In addition to your credit, Upstart will also consider your education and job history to determine creditworthiness — which means you might still qualify even if you have little to no credit history. You can borrow $1,000 to $50,000 with Upstart.

Pros

  • Considers education and job history in addition to credit

  • No prepayment penalty

  • Low minimum income requirement ($12,000)

Cons

  • Origination fees from 0% to 8%

  • Charges late and returned check fees

  • Not available in Iowa or West Virginia

Visit Credible to easily compare personal loan rates these lenders.

Methodology

To find the “best companies,” Credible looked at loan and lender data points from 10 categories to give you a well-rounded perspective on each of our partner lenders. Here’s what we considered:

  • Interest rates

  • Repayment terms

  • Repayment options

  • Maximum loan amount

  • Loan funding time

  • Fees

  • Discounts

  • Customer service availability

  • Whether the minimum credit score is available publicly

  • Whether consumers could request rates with a soft credit check

Credible’s hope is that this will be a win-win situation for you and us — we only want to get paid if you find a loan that works for you, not by selling your data. This means Credible will only get paid by the lender if you finish the loan process and a loan is disbursed. Additionally, Credible charges you no fees of any kind to compare your loan options.

Other personal loan lenders to consider

There are also other lenders that offer personal loans for good credit. Keep in mind that these lenders are not offered through Credible, so you won’t be able to easily compare your rates with them on the Credible platform like you can our partner lenders.

Citizens

You can borrow $5,000 to $50,000 with Citizens. The lender offers both autopay and loyalty discounts.

Pros

  • No fees

  • Fast funding

  • Multiple discounts

Cons

  • Doesn’t disclose eligibility requirements

  • Doesn’t disclose minimum income requirements

  • No small loan amounts

Earnest

With Earnest, you can borrow between $5,000 and $75,000. The lender only has a few repayment term options, but they offer an autopay discount.

Pros

  • Quick funding

  • Can borrow large amounts

  • Autopay discount

Cons

  • Doesn’t disclose fees

  • Only 3 repayment term options

  • Not available in Alabama, Delaware, Kentucky, Nevada, and Rhode Island

How to get a good-credit loan

If you’re ready to apply for a personal loan, follow these four steps:

  • Research and compare lenders. Be sure to consider as many personal loan lenders as you can to find the right loan for you. Consider not only interest rates but also repayment terms and any fees charged by the lender.

  • Pick a loan option. After comparing lenders, choose the loan option that works best for you.

  • Complete the application. Once you’ve picked a lender, you’ll need to fill out a full application and submit any required documentation, such as pay stubs or tax returns.

  • Get your funds. If you’re approved, the lender will have you sign for the loan so the money can be released to you. The time to fund for a personal loan is usually about one week — though some lenders offer fast personal loans that can be funded as soon as the same or next business day after approval.

Tip: Before you take out a personal loan, be sure to consider how much that loan will cost you in the future. This way, you can be prepared for any added expenses.

You can estimate how much you’ll pay for a loan using Credible’s personal loan calculator.

What is a good credit score to get a loan?

To get approved for a personal loan, you’ll typically need good to excellent credit. This usually means a score of 700 or higher.

Additionally, having a good credit score means you’re more likely to qualify for lower interest rates as well as higher loan amounts.

Keep in mind: Some lenders offer personal loans for bad credit, but these loans generally have higher interest rates compared to good credit loans.

Here are the credit score ranges you’ll typically come across:

Will a personal loan boost my credit score?

When you apply for a personal loan, the lender will perform a hard credit check to determine your creditworthiness. This could cause your score to drop slightly — usually five points or less. This effect is usually only temporary, and your credit score could bounce back within a few months.

The good news is that a personal loan could actually boost your credit score over time — outweighing any initially negative impact. For example, most borrowers who use a personal loan to consolidate debt see an increase of 20 points or more, according to TransUnion.

A few positive ways a personal loan could impact your credit score include:

  • Building positive payment history: Payment history is one of the largest factors in your credit score. If you make on-time payments on your personal loan, you could see a boost to your credit.

  • Lowering credit utilization ratio: Your credit utilization is the amount you owe on revolving credit lines — such as credit cards — compared to your limits. If you use a personal loan to consolidate your debt, you could reduce your credit utilization ratio and improve your credit score.

  • Diversifying your credit mix: Lenders like to see that you can handle multiple types of credit — which is why having different kinds of loans contributes to your credit score. Adding a new personal loan could help improve your credit mix and potentially boost your score.

Credible lets compare personal loan rates from various lenders.

How does the coronavirus affect personal loans?

Generally, the COVID-19 pandemic hasn’t had much of an effect on personal loans and the process to get one. You’ll still generally need good credit and verifiable income to get approved for a personal loan.

Keep in mind: Some lenders might have more stringent requirements to ensure that borrowers can repay their loans.

Additionally, many lenders are offering various forms of payment help for borrowers impacted by COVID-19, such as deferment or forbearance options. Here are some of Credible’s partner lenders that are providing assistance to their borrowers:

  • Discover: You can defer past due payments to the end of the loan, make interest-only payments for six to 12 months, or change your repayment term to reduce your monthly payments.

  • LendingPoint: Offers additional time and flexibility for payments, as well as multiple personalized solutions for struggling borrowers.

  • Marcus: You can defer one monthly payment without accruing interest during the deferral period.

  • PenFed: Allows borrowers to skip a payment if affected by COVID-19.

  • SoFi: Provides unemployment protection for borrowers who have lost their jobs. SoFi’s Special Handling Team can also discuss repayment options.

Tip: If you’re struggling to make loan payments due to the pandemic, be sure to reach out to your lender to see what assistance options might be available to you. Additionally, some lenders are also offering small coronavirus hardship loans that generally charge lower interest rates — possibly as low as 0%. If you need help making ends meet, check with your lender to see if they offer these loans.

Personal loans vs. credit cards

Another option to make a large purchase, consolidate debt, or cover another unexpected expense is to use a credit card. If you’re considering a personal loan vs. a credit card, here are a few pros and cons of both to keep in mind:

Pros of personal loans

  • Lower interest rates: Personal loans typically have lower interest rates than credit cards — especially for borrowers with good to excellent credit. This also

  • Fixed monthly payments: Most personal loans come with fixed interest rates, which means your payments won’t ever change.

  • Can apply with a cosigner: Some lenders allow cosigners on personal loans, which can help you get approved or even get you a lower interest rate. Most major credit card issuers don’t allow cosigners.

Cons of personal loans

  • Might come with fees: Some personal loan lenders charge fees — such as origination fees or late fees. These can increase your overall loan cost.

  • Set loan amount: If you need to borrow more, you’ll have to apply for a second personal loan. Credit cards, on the other hand, provide you with a credit line that you can repeatedly draw on and pay off so long as you don’t surpass your limit.

  • Immediately begins to accrue interest: Interest charges and origination fees accrue right away for personal loans. The loan expenses can be more than credit cards with an introductory 0% APR if you can pay the balance off during this time.

Pros of credit cards

  • 0% APR: Some credit cards come with a 0% APR introductory period, which means you can avoid paying interest if you repay your balance before this period ends. However, keep in mind that if you can’t pay off the card in time, you could be stuck with hefty interest charges.

  • Could continue to help build your credit: You can generally keep a credit card open for an unlimited amount of time — which means it can continue to help your credit over time.

  • Rewards or perks: Depending on the card you choose, you might be able to take advantage of various rewards or perks, such as airline miles or cash back.

Cons of credit cards

  • Higher interest rates: Credit cards generally charge higher interest rates than personal loans.

  • Might charge fees: Depending on the card, you might have to pay fees for balance transfers, cash advances, and more.

  • Could be tempting to rack up a balance: It can be easy to swipe your credit card without thinking, which can draw you further into debt.

When should you use a personal loan over a credit card — and vice versa? If you know exactly how much you need to borrow and would prefer a longer repayment term, taking out a personal loan could be a good choice.

But if you only need to cover a small expense and can take advantage of a 0% APR introductory period, then a credit card might be a better option.

How much can you borrow with a personal loan?

Personal loans typically range from $600 to $100,000 or more, depending on the lender. Keep in mind that you’ll likely have an easier time getting approved for a large loan balance if you have:

  • Good to excellent credit

  • Income that supports your ability to repay the loan

  • Low debt-to-income ratio

Tip: Be sure to borrow only what you need — even if you qualify for a larger amount. This way, you can keep your future costs as low as possible.

If you decide to take out a personal loan, remember to consider as many lenders as possible to find a loan that best suits your needs. Credible makes this easy — you can compare your prequalified rates from multiple personal loan lenders in two minutes.

Credible’s personal loan lenders for good and excellent credit

  • Avant: Best for thin credit history

  • Axos Bank: Best for good credit

  • Best Egg: Best for excellent credit

  • Discover: Best for good to excellent credit

  • FreedomPlus: Best for debt consolidation

  • LendingClub: Best for good credit

  • LendingPoint: Best for thin credit history

  • LightStream: Best for excellent credit

  • Marcus: Best for excellent credit

  • OneMain Financial: Best for debt consolidation

  • Payoff: Best for debt consolidation

  • PenFed: Best for debt consolidation

  • Prosper: Best for good credit

  • SoFi: Best for good credit

  • Upgrade: Best for debt consolidation

  • Upstart: Best for thin credit history

About the author: Josh Patoka is a personal finance authority and a contributor to Credible. His work has been published on Fox Business and several award-winning personal finance blogs including Well Kept Wallet, Wallet Hacks, and Frugal Rules.

The post Best Personal Loans for Borrowers With Good Credit appeared first on Credible.