What Is a Personal Loan Origination Fee?

·17 min read

Lenders sometimes charge fees on personal loans. One of the most common is an origination fee — an administrative fee that you pay a lender in return for borrowing money. This type of fee is usually deducted from your loan amount before the funds are disbursed.

While avoiding an origination fee on your loan means you’ll receive more of your loan funds to start, it could sometimes be worth paying an origination fee if you can get a good interest rate from the lender.

Here’s what you should know about personal loan origination fees:

  • What is an origination fee?

  • How can I avoid origination fees?

  • Additional personal loan factors to consider

What is an origination fee?

A loan origination fee is the price charged by a lender in return for offering a loan. In some cases, you might see an origination fee referred to as an application or processing fee.

Origination fees for personal loans typically range from 1% to 10%, depending on the lender. The higher the origination fee, the less money you’ll actually get from your loan.

For example: Say you take out a $10,000 personal loan with a 1% origination fee. In this case, you’d be charged $100 — meaning you’d only actually get $9,900. If you needed the full $10,000, you’d have to borrow more to account for the fee.

In some cases, lenders might let you roll the fee into the repayment of your loan instead of deducting it before disbursement. While this might sound like it would save you money, keep in mind that this means you’d pay interest on the fee as well as your principal balance.

Learn More: How to Get a Personal Loan

Why is there an origination fee?

Lenders charge origination fees to cover various expenses that come with offering loans. For instance, this kind of fee could include the cost of processing your application, underwriting, funding, and other administrative services.

Keep in mind: While some lenders charge a flat origination fee, other lenders have a range.

For instance, if you take out a personal loan from Upgrade, the origination fee could be anywhere from 2.9% to 8%. The actual amount you’ll be charged will depend on several factors, such as your credit and income.

Check Out: Where to Get a Personal Loan

How can I avoid origination fees?

If you’d like to avoid origination fees, here are a couple of options:

  • Work with a lender that doesn’t charge them. Some lenders don’t charge origination fees on their personal loans.

  • Ask for the fee to be waived. In some cases, a lender might be willing to waive an origination fee — for example, if you agree to pay a higher interest rate or are able to show a better offer from another lender.

Make sure to shop around and compare lenders. Most personal loan lenders charge origination fees. However, this isn’t necessarily always a reason to decline a loan offer, especially if you can qualify for a good interest rate from a lender that assesses origination fees.

This is why it’s critical to take the time to do your research and compare your options from as many lenders as possible. This way, you’ll be able to more easily find a good deal on a loan — whether it comes with an origination fee or not.

If you’re ready to start loan shopping, Credible can help. You can compare your prequalified rates from multiple lenders in just two minutes.

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Additional personal loan factors to consider

As you weigh your personal loan options, it’s important to consider as many lenders as you can to find the right loan for your needs.

In addition to origination fees, here are several factors to keep in mind as you shop around:

  • Loan types: Most personal loans are unsecured, which means you don’t have to worry about collateral. There are also some lenders that offer secured personal loans where you can provide an item of value to secure the loan, such as a vehicle or jewelry. Because secured loans aren’t as risky for the lender, they tend to come with lower interest rates — but if you can’t keep up with your payments, you could lose your property.

  • Interest rates: The average personal loan interest rate ranges from 4.99% to 36%. The rate you get on a loan will play a major role in determining your overall loan cost — the lower your rate, the less you’ll pay over time. Keep in mind that your credit and the repayment term you choose will also impact the rates you’re offered.

  • Repayment terms: You’ll typically have one to seven years to repay a personal loan, depending on the lender. It’s usually best to choose the shortest term you can afford to keep your interest costs as low as possible. Many lenders also offer better rates to borrowers who opt for shorter terms.

  • Loan amounts: Personal loans generally range from $600 to $100,000 or more, depending on the lender. Be sure to borrow only what you need so your future repayment costs are manageable.

  • Time to fund: The time to fund for a personal loan is usually about one week — though there are also some lenders that will fund loans as soon as the same or next business day after approval.

  • Minimum credit score: You’ll generally need good to excellent credit to qualify for a personal loan. A good credit score is usually considered to be 700 or higher. There are also several lenders that offer personal loans for bad credit — however, these loans also tend to come with higher interest rates compared to good credit loans. If you have poor credit, you might also find yourself saddled with higher origination fees from some lenders.

If a personal loan seems like the right fit for your needs, remember to consider as many lenders as you can to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.

Lender

Fixed rates

Loan amounts

Loan terms (years)

Origination fee?



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

9.95% - 35.99% APR

$2,000 to $35,000**

2, 3, 4, 5*

Yes

  • Fixed APR: 9.95% - 35.99% APR

  • Variable APR: N/A

  • Min. credit score: 550

  • Loan amount: $2,000 to $35,000**

  • Loan terms (years): 2, 3, 4, 5*

  • Time to fund: As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)

  • Fees: Origination fee

  • Discounts: Autopay

  • Eligibility: Available in all states except CO, IA, HI, VT, NV NY, WV

  • Customer service: Phone, email

  • Soft credit check: Yes

  • Loan servicer: Avant

  • Loan Uses: Debt consolidation, emergency expense, life event, home improvement, and other purposes

  • Min. Income: $1,200 monthly



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

6.79% - 17.99% APR

$10,000 to $50,000

3, 4, 5, 6

Yes

  • Fixed APR: 6.79% - 17.99% APR

  • Variable APR: N/A

  • Min. credit score: 700

  • Loan amount: $10,000 to $50,000

  • Loan terms (years): 3 to 6

  • Time to fund: Next business day

  • Fees: No prepayment penalty

  • Discounts: None

  • Eligibility: Available in all 50 states

  • Customer service: Phone

  • Soft credit check: Yes

  • Min. Income: Does not disclose

  • Loan Uses: Debt consolidation, home improvement, self-employment, and other purposes



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

4.99% - 35.99% APR

$2,000 to $50,000

2, 3, 4, 5

Yes

  • Fixed APR: 4.99% - 35.99% APR

  • Variable APR: N/A

  • Min. credit score: 600

  • Loan amount: $2,000 to $50,000

  • Loan terms (years): 2, 3, 4, 5

  • Time to fund: As soon as 1 - 3 business days after successful verification

  • Fees: Origination fee

  • Discounts: None

  • Eligibility: Available in all states except DC, IA, VT, and WV

  • Customer service: Phone

  • Soft credit check: Yes

  • Loan servicer: Best Egg and Blue Ridge Bank

  • Min. Income: None

  • Loan Uses: Credit card refinancing, debt consolidation, home improvement, and other purposes



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

5.99% - 24.99% APR

$2,500 to $35,000

3, 4, 5, 6, 7

No

  • Fixed APR: 5.99% - 24.99% APR

  • Min. credit score: 660

  • Loan amount: $2,500 to $35,000

  • Loan terms (years): 3, 4, 5, 6, 7

  • Time to fund: As soon as the next business day after acceptance

  • Fees: Late fee

  • Discounts: None

  • Eligibility: Available in all 50 states

  • Customer service: Phone

  • Soft credit check: Yes

  • Loan Uses: Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

7.99% - 29.99% APR

$10,000 to $35,000

2, 3, 4, 5

Yes

  • Fixed APR: 7.99% - 29.99% APR

  • Min. credit score: Does not disclose

  • Loan amount: $10,000 to $50,000

  • Loan terms (years): 2, 3, 4, 5

  • Time to fund: As soon as 2 business days

  • Fees: Origination fee

  • Discounts: No

  • Eligibility: Available in all states except CO, CT, HI, KS, NH, NY, ND, OR, VT, WV, WI, and WY

  • Customer service: Phone

  • Soft credit check: Yes

  • Min. Income: None

  • Loan Uses: Debt consolidation, home improvement, wedding, travel, medical expenses, and other purposes



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

7.04% - 35.89% APR

$1,000 to $40,000

3, 5

Yes

  • Fixed APR: 7.04% - 35.89% APR

  • Min. credit score: 600

  • Loan amount: $1,000 to $40,000

  • Loan terms (years): 3, 5

  • Time to fund: Usually takes about 2 days

  • Fees: Origination fee

  • Discounts: None

  • Eligibility: Available in all 50 states

  • Customer service: Phone, email

  • Soft credit check: Yes

  • Loan servicer: LendingClub Bank

  • Min. Income: None

  • Loan Uses: Debt consolidation, paying off credit cards, home improvement, pool loans, vacations, and other purposes



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

9.99% - 35.99% APR

$2,000 to $36,500

2, 3, 4

Yes

  • Fixed APR: 9.99% - 35.99% APR

  • Min. credit score: 580

  • Loan amount: $2,000 to $36,500

  • Loan terms (years): 2, 3, 4

  • Time to fund: As soon as the next business day

  • Fees: Origination fee

  • Discounts: Autopay

  • Eligibility: Available in all states except NV and WV

  • Customer service: Phone, email

  • Soft credit check: Yes

  • Min. Income: $20,000

  • Loan Uses: Home improvement, consolidate debt, credit card refinancing, relocate, make a large purchase, and other purposes



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

2.49% - 19.99% APR

$5,000 to $100,000

2, 3, 4, 5, 6, 7
(up to 12 years for home improvement loans)

No

  • Fixed APR: 2.49% - 19.99% APR

  • Min. credit score: 660

  • Loan amount: $5,000 to $100,000

  • Loan terms (years): 2, 3, 4, 5, 6, 7*

  • Time to fund: As soon as the same business day

  • Fees: None

  • Discounts: Autopay

  • Eligibility: Available in all states except RI and VT

  • Customer service: Phone, email

  • Soft credit check: No

  • Loan servicer: LightStream

  • Min. Income: Does not disclose

  • Loan Uses: Credit card refinancing, debt consolidation, home improvement, and other purposes



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

6.99% - 19.99% APR1

$3,500 to $40,0002

3, 4, 5, 6, 7

No

  • Fixed APR: 6.99% - 19.99% APR1

  • Min. credit score: 660
    (TransUnion FICO®️ Score 9)

  • Loan amount: $3,500 to $40,0002

  • Loan terms (years): 3, 4, 5, 6

  • Time to fund: Many Marcus customers receive funds in as little as three days

  • Fees: None

  • Discounts: Autopay

  • Eligibility: Available in all 50 states

  • Customer service: Phone

  • Soft credit check: Yes

  • Loan servicer: Goldman Sachs

  • Min. Income: $30,000

  • Loan Uses: Credit card refinancing, debt consolidation, home improvement, major purchase, and other purposes



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

18.0% - 35.99% APR

$1,500 to $20,000

2, 3, 4, 5

Yes

  • Fixed APR: 18.0% - 35.99% APR

  • Min. credit score: None

  • Loan amount: $1,500 to $20,000

  • Loan terms (years): 2, 3, 4, 5

  • Time to fund: As soon as the same day, but usually requires a visit to a branch office

  • Fees: Origination fee

  • Discounts: None

  • Eligibility: Must have photo I.D. issued by U.S. federal, state or local government

  • Customer service: Phone, email

  • Soft credit check: Yes

  • Min. Income: Does not disclose



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

4.99% - 17.99% APR

$600 to $50,000 (depending on loan term)

1, 2, 3, 4, 5

No

  • Fixed APR: 4.99% - 17.99% APR

  • Min. credit score: 660

  • Loan amount: $600 to $50,000*

  • Loan terms (years): 1, 2, 3, 4, 5

  • Time to fund: 2 to 4 business days after verification

  • Fees: None

  • Discounts: None

  • Eligibility: Does not disclose

  • Customer service: Phone, email

  • Soft credit check: No

  • Min. Income: Does not disclose

  • Loan Uses: Debt consolidation, home improvement, transportation, medical, dental, life events



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

6.95% - 35.99% APR

$2,000 to $40,000

3, 5

Yes

  • Fixed APR: 6.95% - 35.99% APR

  • Min. credit score: 640

  • Loan amount: $2,000 to $40,000

  • Loan terms (years): 3, 5

  • Time to fund: As soon as one business day

  • Fees: Origination fee

  • Discounts: None

  • Eligibility: Available in all states except IA, ND, WV

  • Customer service: Phone, email

  • Soft credit check: Yes

  • Min. Income: None

  • Loan Uses: Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

5.74% - 20.28% APR10

$5,000 to $100,000

2, 3, 4, 5, 6, 7

No

  • Fixed APR: 5.74% - 20.28% APR10

  • Min. credit score: Does not disclose

  • Loan amount: $5,000 to $100,000

  • Loan terms (years): 2, 3, 4, 5, 6, 7

  • Time to fund: 3 business days

  • Fees: None

  • Discounts: Autopay

  • Eligibility: Available in all states except MS

  • Customer service: Phone, email

  • Soft credit check: Yes

  • Min. Income: Does not disclose

  • Loan Uses: Solely for personal, family, or household uses



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

8.93% - 35.93% APR7

$1,000 to $20,000

3, 5

Yes

  • Fixed APR: 8.93% - 35.93% APR7

  • Min. credit score: 560

  • Loan amount: $1,000 to $50,000

  • Loan terms: 3 to 5 years 8

  • Time to fund: Within one day, once approved9

  • Loan types: Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases

  • Fees: Origination fee

  • Discounts: Autopay

  • Eligibility: A U.S. citizen or permanent resident; not available in DC, SC, WV

  • Customer service: Phone, email

  • Soft credit check: Yes



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

5.94% - 35.97% APR

$1,000 to $50,000

2, 3, 5, 6

Yes

  • Fixed APR: 5.94% - 35.97% APR

  • Min. credit score: 560

  • Loan amount: $1,000 to $50,000*

  • Loan terms (years): 2, 3, 5, 6

  • Time to fund: Within a day of clearing necessary verifications

  • Fees: Origination fee

  • Discounts: Autopay

  • Eligibility: Available in all states except West Virginia

  • Customer service: Email

  • Soft credit check: Yes

  • Min. Income: Does not disclose

  • Loan Uses: Debt consolidation, credit card refinancing, home improvement, and other purposes



Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

4.37% - 35.99% APR4

$1,000 to $50,0005

3 to 5 years4

Yes

  • Fixed APR: 4.37% - 35.99% APR4

  • Min. credit score: 580

  • Loan amount: $1,000 to $50,0005

  • Loan terms (years): 3 to 5 years4

  • Time to fund: As fast as 1 business day6

  • Fees: Origination fee

  • Discounts: None

  • Eligibility: Available in all 50 states

  • Customer service: Phone, email

  • Soft credit check: Yes

  • Min. Income: $12,000

  • Loan Uses: Payoff credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposes

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All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | 10SoFi Disclosures | Read more about Rates and Terms


About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.99-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.