Best Personal Loans in 2026
Competitive rates and favorable terms for debt consolidation, home improvement, and more.
Personal loans provide a lump sum of money that you repay in fixed monthly installments over a set term, typically 2-7 years. They can be used for almost any purpose — debt consolidation, home improvement, major purchases, medical expenses, or emergencies.
We reviewed the leading personal loan providers to help you find competitive rates and favorable terms.
What Is a Personal Loan?
A personal loan is an unsecured loan (typically) that provides funds you repay through fixed monthly payments over a predetermined period.
- Fixed Interest Rate: Most personal loans have fixed rates, meaning your payment stays the same throughout the loan term.
- Fixed Term: You know exactly when the loan will be paid off — typically 2 to 7 years.
- Unsecured: Most personal loans don't require collateral. Approval is based on creditworthiness.
- Lump Sum Disbursement: You receive the full loan amount upfront.
- Multiple Uses: Unlike auto loans or mortgages, personal loans can be used for almost anything.
Common Uses for Personal Loans
Debt Consolidation: The most common use. Combining multiple high-interest debts into a single personal loan can lower your overall interest rate, simplify payments, and provide a clear payoff timeline. Americans carry over $1 trillion in credit card debt, often at rates exceeding 20%. Personal loans typically offer rates of 8-20% for qualified borrowers.
Home Improvement: Funding renovations, repairs, or upgrades when you don't want to tap home equity or don't qualify for a HELOC.
Major Purchases: Financing furniture, appliances, or other large purchases when 0% financing isn't available.
Medical Expenses: Covering medical bills, elective procedures, or dental work not covered by insurance.
Our Top Picks
Based on our evaluation, these are the top personal loan providers we recommend.
Amerisave
Over 20 years of lending experience with competitive rates across 49 states and an A+ BBB rating.
SoFi
Large loan amounts with same-day funding, zero origination fees, and valuable member perks.
LightStream
Longest available terms (up to 20 years) with zero fees and a rate-beat program that matches competitors.
What We Evaluated
Interest Rates (APR)
APR ranges across lenders, including interest rate plus fees. Personal loan APRs typically range from about 6-7% for the most qualified borrowers to 36% for higher-risk borrowers.
Fees
Origination fees (typically 1-8%), late fees, prepayment penalties (uncommon but worth checking), and application fees.
Loan Amounts & Terms
Minimum and maximum loan amounts, available term lengths, and flexibility in choosing terms to match your needs.
Credit Requirements
Minimum credit scores (stated and actual), income requirements, debt-to-income considerations, and options for borrowers with fair or poor credit.
Funding Speed
Application to approval timeline, approval to funding timeline, and same-day or next-day funding availability.
Customer Experience
Application process ease, customer service quality, online account management, and mobile app functionality.
What to Consider Before Applying
Check Your Credit First
Your credit score significantly impacts the rate you'll qualify for. Check your credit reports for errors at AnnualCreditReport.com and understand where you fall:
Credit Score Impact on Rates
- Excellent (720+): Best rates, typically 7-12% APR
- Good (680-719): Competitive rates, typically 12-18% APR
- Fair (640-679): Higher rates, typically 18-25% APR
- Poor (below 640): Limited options, typically 25-36% APR or denial
Compare Multiple Lenders
Rates and terms vary significantly. Get quotes from your current bank or credit union, online lenders, and peer-to-peer platforms. Many lenders offer pre-qualification with a soft credit check that doesn't affect your score.
Understand Total Cost
A lower monthly payment doesn't always mean a better deal. Calculate total cost by multiplying monthly payment by number of payments:
- Loan A: $300/month for 36 months = $10,800 total
- Loan B: $250/month for 60 months = $15,000 total
The lower monthly payment costs $4,200 more over the life of the loan.
Consider Alternatives
0% APR Credit Cards: For purchases, a 0% intro APR card may be cheaper if you can pay off before the promotional period ends.
Home Equity Options: If you own a home, HELOCs often offer lower rates (though your home becomes collateral).
Negotiate with Creditors: If consolidating medical debt, you may be able to negotiate directly for reduced balances or payment plans.
Read the Fine Print
Verify there's no prepayment penalty, understand late payment policies, confirm funding timeline, and review automatic payment discount eligibility.
Red Flags to Watch For
Guaranteed Approval
No legitimate lender guarantees approval without reviewing your creditworthiness. "Guaranteed approval" often signals predatory lending.
Upfront Fees Before Approval
Legitimate lenders don't require payment before approving a loan. Advance-fee loan scams are common.
Pressure to Act Immediately
High-pressure tactics suggest the deal doesn't hold up to scrutiny. Take time to compare options.
Unusually High Rates
Rates above 36% are prohibited in many states and should be a red flag. If a rate seems extremely high, it probably is.
Disclaimer
The information on ScoreCardHQ is for educational and informational purposes only. It does not constitute professional, legal, financial, or medical advice. We encourage all readers to conduct their own research and consult with qualified professionals before making significant decisions.