In 2024, personal loans continue to serve as an effective financial tool for individuals seeking to consolidate debt, finance home renovations, or manage unexpected expenses.
The personal loan market is rich with options, ranging from traditional banks and credit unions to online lenders, each offering unique features, interest rates, and repayment terms.
Whether you’re looking for a loan with low-interest rates, flexible repayment plans, or fast approval times, this guide will help you navigate the best personal loan options available in 2024.
What to Consider Before Choosing a Personal Loan
Top 10 Universities for Distance Learning
Before diving into the top personal loans of 2024, it’s crucial to understand what factors to consider when applying for one. Here are the main points that can help you make an informed decision:
- Interest Rates: Your credit score, the loan amount, and the loan term will all impact the interest rate you receive. Shop around to find the most competitive rate.
- Fees: Some loans come with origination fees, prepayment penalties, or late fees. Be sure to account for all potential fees when calculating the overall cost of the loan.
- Loan Terms: The loan term can range from one to seven years or more. Longer loan terms might have lower monthly payments but could result in paying more interest over the life of the loan.
- Approval Time: Depending on the lender, approval times can vary. Some lenders offer instant approval, while others may take several business days to process your application.
- Loan Amount: Personal loans typically range from $1,000 to $50,000, although some lenders may offer larger amounts for specific needs like home renovations or large medical expenses.
With these factors in mind, let’s explore the top 10 personal loans of 2024.
1. SoFi Personal Loans
Best for Flexible Terms and Large Loan Amounts
Why Choose SoFi?
SoFi stands out as one of the best lenders in 2024, offering personal loans that range from $5,000 to $50,000 with competitive rates.
Known for its flexible terms, SoFi allows you to choose a repayment period anywhere from 24 to 84 months. Their rates are often lower than the average for borrowers with excellent credit.
Key Features:
- Loan Amount: $5,000 – $50,000
- APR: 7.99% – 23.43% (variable and fixed)
- Loan Terms: 24 – 84 months
- Fees: No origination fees or prepayment penalties
- Approval Time: Same-day approval
Eligibility:
SoFi generally looks for borrowers with good to excellent credit, a stable income, and a solid financial history. If you’re a creditworthy borrower, you can expect a fast approval process and some of the best rates available.
2. Marcus by Goldman Sachs
Best for No Fees and High Loan Amounts
Why Choose Marcus?
Marcus by Goldman Sachs is a top contender for borrowers who want a personal loan without any hidden fees.
Whether you’re consolidating credit card debt or paying for a large expense, Marcus offers competitive interest rates with no origination fees, late fees, or prepayment penalties.
Key Features:
- Loan Amount: $3,500 – $40,000
- APR: 6.99% – 19.99% (fixed rates)
- Loan Terms: 36 – 72 months
- Fees: No fees of any kind
- Approval Time: Typically 1-3 business days
Eligibility:
Marcus generally requires a good credit score (700+), and borrowers must demonstrate the ability to repay the loan.
Although the process is streamlined, you will need to provide documentation like proof of income and employment history.
3. LightStream Personal Loans
Top 10 Online Loan Apps: Fast and Convenient Borrowing
Best for Borrowers with Excellent Credit
Why Choose LightStream?
If you have excellent credit, LightStream offers one of the most attractive personal loans on the market. They provide competitive rates with the option of using the loan for almost any purpose.
Their same-day funding for approved borrowers makes LightStream an excellent choice for those who need quick access to funds.
Key Features:
- Loan Amount: $5,000 – $100,000
- APR: 5.99% – 19.99% (fixed rates)
- Loan Terms: 24 – 144 months
- Fees: No fees or prepayment penalties
- Approval Time: Same-day funding if approved by 2:30 p.m. ET
Eligibility:
LightStream is best suited for borrowers with excellent credit (740+), and they typically require a high income level. The loan application process is thorough but quick, and it can be completed entirely online.
4. Upstart Personal Loans
Best for Borrowers with Fair Credit
Why Choose Upstart?
Upstart is a modern online lender that uses artificial intelligence to evaluate borrowers, considering factors beyond just credit scores.
This makes Upstart a great option for individuals with fair credit who may not qualify for loans from traditional banks.
Key Features:
- Loan Amount: $1,000 – $50,000
- APR: 6.99% – 35.99% (fixed rates)
- Loan Terms: 36 – 60 months
- Fees: 1% – 8% origination fee
- Approval Time: As fast as one business day
Eligibility:
Upstart considers factors such as employment history, education, and credit score when determining eligibility. Borrowers with credit scores as low as 580 may qualify, though rates tend to be higher for lower credit scores.
5. Discover Personal Loans
Top 10 Universities with Vibrant Campus Life
Best for No Fees and Flexible Terms
Why Choose Discover?
Discover is a trusted financial institution offering personal loans that come with no fees whatsoever, including no origination fees, late fees, or prepayment penalties. Their flexible terms and competitive rates make Discover an attractive option for a variety of borrowers.
Key Features:
- Loan Amount: $2,500 – $35,000
- APR: 6.99% – 24.99% (fixed rates)
- Loan Terms: 36 – 84 months
- Fees: No fees
- Approval Time: Typically 1-3 business days
Eligibility:
Discover requires a good to excellent credit score (700+), but they are less stringent than some other top-tier lenders, making their loans accessible to a wider audience.
6. Best Egg Personal Loans
Best for Debt Consolidation
Why Choose Best Egg?
Best Egg offers one of the best personal loans for debt consolidation in 2024. The lender’s loan options feature quick approval, low rates, and large loan amounts, making it ideal for consolidating credit card debt or funding large expenses.
Key Features:
- Loan Amount: $2,000 – $50,000
- APR: 5.99% – 35.99% (fixed rates)
- Loan Terms: 36 – 60 months
- Fees: 0.99% – 5.99% origination fee
- Approval Time: Same-day funding in some cases
Eligibility:
Best Egg is open to borrowers with fair credit and above (580+), though the best rates are reserved for those with higher credit scores. You’ll need to provide documentation to verify income and employment history.
7. LendingClub Personal Loans
Top 10 Affordable Universities for International Students
Best for Peer-to-Peer Lending
Why Choose LendingClub?
LendingClub is one of the pioneers of the peer-to-peer lending model, connecting borrowers with individual investors who fund loans.
They offer a wide range of loan amounts and terms, and they can be an excellent option for those who prefer a non-traditional lending experience.
Key Features:
- Loan Amount: $1,000 – $40,000
- APR: 7.04% – 35.89% (fixed rates)
- Loan Terms: 36 – 60 months
- Fees: 3% – 6% origination fee
- Approval Time: 2-5 business days
Eligibility:
LendingClub typically requires a credit score of 600+, and they also look at income, debt-to-income ratio, and other financial indicators. As a peer-to-peer lender, they can be a great option for borrowers who don’t fit the traditional mold.
8. OneMain Financial
Best for Low Credit Scores
Why Choose OneMain Financial?
OneMain Financial specializes in personal loans for people with lower credit scores. They offer secured and unsecured loans, which allows borrowers to use collateral to potentially secure a lower interest rate.
Key Features:
- Loan Amount: $1,500 – $20,000
- APR: 18.00% – 35.99% (fixed rates)
- Loan Terms: 24 – 60 months
- Fees: Origination fees
- Approval Time: Typically 1-2 business days
Eligibility:
OneMain Financial is more flexible when it comes to credit scores and offers loans to borrowers with credit scores as low as 580. The availability of secured loans makes this an excellent option for individuals with poor credit.
9. Avant Personal Loans
Top 10 Affordable Universities with Quality Education
Best for Fast Funding
Why Choose Avant?
Avant is a great option for borrowers who need fast funding. They offer personal loans ranging from $2,000 to $35,000 with relatively low rates
for borrowers with less-than-perfect credit.
Key Features:
- Loan Amount: $2,000 – $35,000
- APR: 9.95% – 35.99% (fixed rates)
- Loan Terms: 24 – 60 months
- Fees: Up to 4.75% origination fee
- Approval Time: Same-day funding in many cases
Eligibility:
Avant typically works with borrowers who have fair credit (580+). If you have a stable income and a reasonable debt-to-income ratio, Avant can offer a quick and reliable loan.
10. Payoff Personal Loans
Best for Credit Card Debt Consolidation
Why Choose Payoff?
Payoff specializes in loans for consolidating credit card debt. Their loans are designed to help borrowers manage high-interest debt and simplify their monthly payments.
Key Features:
- Loan Amount: $5,000 – $40,000
- APR: 5.99% – 24.99% (fixed rates)
- Loan Terms: 24 – 60 months
- Fees: No fees
- Approval Time: Typically 2-3 business days
Eligibility:
Payoff is designed for borrowers with a credit score of at least 640 who are looking to consolidate their credit card debt into a single, lower-interest loan.
Conclusion
Selecting the best personal loan for your needs in 2024 depends on your financial goals, credit score, and specific circumstances.
Whether you’re looking for a low-interest loan to consolidate debt, a flexible loan for home improvement, or a fast loan for an emergency, there are plenty of options to choose from.
Key Takeaways:
- SoFi and LightStream offer excellent options for borrowers with good to excellent credit.
- Upstart and OneMain Financial provide flexibility for those with less-than-perfect credit.
- Marcus by Goldman Sachs and Discover are great options for no-fee loans with competitive interest rates.
Make sure to compare loan offers, read the fine print, and ensure you understand the fees and terms before committing to a loan. In the end, the best personal loan for you will align with your financial needs and goals.
Frequently Asked Questions (FAQs)
1. What is the minimum credit score required for a personal loan in 2024?
The minimum credit score required for a personal loan can vary widely depending on the lender. In general, borrowers with excellent credit (700+) tend to receive the best rates and terms.
However, many lenders offer personal loans to individuals with fair or even poor credit. For instance, lenders like Upstart may approve loans for borrowers with scores as low as 580,
while others, such as OneMain Financial, specialize in offering loans to individuals with lower credit scores.
2. How long does it take to get approved for a personal loan?
Approval times can differ depending on the lender and your individual financial situation. Some online lenders, like SoFi and LightStream, offer fast approvals, sometimes even the same day if you apply early enough.
On average, approval can take anywhere from 1 to 5 business days. Once approved, the loan disbursement typically happens within a few business days, with some lenders offering same-day funding, especially for smaller loan amounts.
3. Can I use a personal loan for anything?
Yes, personal loans are typically unsecured and come with few restrictions on how the funds can be used. Borrowers can use them for a variety of purposes, including debt consolidation, home renovations,
medical bills, weddings, travel expenses, or even starting a business. However, some lenders may have specific guidelines regarding how the funds can be spent, particularly for larger loan amounts,
so it’s always best to read the loan terms carefully.
4. Are personal loans secured or unsecured?
Most personal loans are unsecured, meaning you don’t need to provide collateral (like a house or car) to secure the loan. However, some lenders, like OneMain Financial, offer both secured and unsecured personal loans.
A secured loan may come with a lower interest rate, but it requires you to pledge an asset (such as a vehicle or savings account) as collateral. Unsecured loans, while slightly riskier for the lender, tend to be easier to qualify for.
5. What are the typical fees associated with personal loans?
The fees associated with personal loans can vary depending on the lender. Common fees include:
- Origination Fees: This is a fee charged by the lender to process your loan application, typically ranging from 1% to 8%.
- Late Fees: If you miss a payment, many lenders will charge a late fee.
- Prepayment Penalties: Some lenders charge a fee if you pay off the loan early. However, many top lenders, like Marcus by Goldman Sachs and Discover, do not charge this fee.
Be sure to review the loan agreement carefully to understand all potential fees before accepting an offer.