Personal Loans

Best personal loans for good credit of December 2023

By
Jamela Adam,
edited by
Kelly Larsen
Updated Aug. 30, 2023, 11:33 a.m. ET
Overjoyed good-credit borrow is approved for a personal loan
Shutterstock

Having a good credit score is like getting the golden ticket to a world of financial opportunities — it gives you access to the best personal loans for good credit and helps you negotiat𒐪e better terms for most financial products.﷽ 

However, though an above-average credit score allows you to qualify for more competitive rates, never automatically assume that the first offer on the table is your best. If you’re in the market for a personal loan and want to secure the best deal possible, it’s crucial to shop around and compare what each lender offers. 

Best personal loans for borrowers with good credit 

Axos

Axos Bank offers may be right for you if y♐ou need to borrow a large amount of money. The lender also offers flexibility — you can move your monthly payment due daಌte by up to 10 days if you need to.

You can use an Axos Bank loan for nearly any purpose, though the lender prohibits the use of funds for investing, post-secondary education, and short-term real estate bridge financing. You’ll also need a high credit score to qualify — 700 or above — 𓆏and at least four years of good credit history. 

  • Interest rates: 7.99% to 14.99%; fixed
  • Loan amounts: $5,000 to $50,000
  • Loan terms: 3 to 6 years
  • Minimum credit score: 700
  • Loan types: Debt consolidation, credit card refinancing, home improvement, business, medical, vacation; unsecured
  • Funding time: As soon as 2 days after signing loan agreement
  • Eligibility: Must have verifiable income; must have at least 4 years of good credit history
  • Fees: Origination fee of 1% to 2% of loan amount; late fee of $15; insufficient funds fee of $25; no prepayment penalties
  • Cosigner acceptance: No
  • BBB rating: A+

Pros:

  • Wide range of loan amounts
  • Ability to adjust payment due date
  • No prepayment penalties

Cons: 

  • High minimum loan amount
  • Charges fees
  • High minimum credit score
  • Doesn’t accept cosigners
  • Doesn’t offer discounts

Discover

Discover offers personal loans for borrowers with fair to excellent credit. Loan amounts range from $2,500 to $40,000, and the lender has flexible repayment terms.

Discover doesn’ᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚt charge orig🐓ination or prepayment fees, which can make a loan more affordable. In addition, Discover offers free access to your FICO credit score and other credit report information.

  • Interest rates: 6.99% to 24.99%; fixed
  • Loan amounts: $2,500 to $40,000
  • Loan terms: 3 to 7 years
  • Minimum credit score: 660
  • Loan types: Debt consolidation, home improvement, medical expenses, vacation funding, wedding financing, financial emergencies, auto expenses, pet emergencies, small business, and more
  • Funding time: As soon as 1 business day after loan acceptance
  • Eligibility: Be a U.S. citizen or permanent resident; be at least 18 years of age; have a minimum individual or household income of at least $25,000
  • Fees: Late fee of $39; no origination, application, or prepayment fees
  • Cosigner acceptance: No
  • BBB rating: A+

Pros: 

  • No origination fee or prepayment penalty
  • Long repayment terms
  • Fast loan funding

Cons: 

  • Doesn’t accept cosigners or co-borrowers
  • Requires at least fair credit
  • No rate discounts

Lightstream

LightStream is an online platform that offers loans to individuals with good-to-excellent credit profiles. Unlike some lenders, LightStream of✨fers benefits like an autopay 🀅discount. When you sign up for automatic payments prior to loan funding, you can qualify for a 0.50 percentage point discount on your interest rates.

In addition, LightStream has a convenient mobile app that makes it easy to check your loan balance and make payments. However, the lender has a high minimum loan amount, so if you only need a small loan, you’ll need ♉to look elsewhere.

  • Interest rates: 7.49% to 24.49% (with autopay); fixed 
  • Loan amounts: $5,000 to $100,000 
  • Loan terms: 2 to 12 years
  • Minimum credit score: Does not disclose
  • Loan types: Home improvement, debt consolidation, medical expenses, weddings, auto loans, and more; unsecured
  • Funding time: As soon as the same day
  • Eligibility: Must have good credit; must have sufficient income to support your existing debts and loan amount; must have a valid Visa or Mastercard
  • Fees: None
  • Cosigner acceptance: No; co-borrowers accepted
  • BBB rating: A+

Pros:

  • Fast funding
  • High maximum loan amount
  • Long repayment terms
  • No fees

Cons:

  • Only approves borrowers with good-to-excellent credit 
  • High minimum loan amount
  • Doesn’t disclose many eligibility requirements
  • Must have a Visa or Mastercard

Marcus

The Goldman Sa♔chs brand, Marcus, offers savings accounts, CDs, and personal loans. What distinguishes Marcus from its competitors is tha🍬t it charges no fees — even for late payments. 

  • Minimum credit score: 660
  • Available loan terms: 3, 4, 5, 6 years
  • Maximum loan amount: $40,000
  • Best for: Borrowers who need debt consolidation

PenFed

Because PenFed is a nonprofit credi🔜t union, it’s able to offer lower interest rates than some lenders.

You don’t need to be a member to apply for a loan at PenFed. However, once you decide to go ahead with a loan, you’ll need to become a member. This is a simple process that only takes a few minutes.

PenFed can be a great option if you need a small loan, since its minimum loan amount is just $600. However, the lender doesn’t disclose many of its elig𒁃ibility requirements online, which can make it difficult to determine if you’ll qualify for a loan befor𓄧e applying.

  • Interest rates: 7.74% to 17.99%; fixed 
  • Loan amounts: $600 minimum to $50,000
  • Loan terms: 1 to 5 years
  • Minimum credit score: Does not disclose 
  • Loan types: Debt consolidation, home improvement, transportation, medical and dental expenses, weddings, and more; unsecured
  • Funding time: 1 to 7 business days
  • Eligibility: Must provide proof of income; must have a Social Security card, utility bill, passport, or copy of a valid government-issued ID for proof of identity
  • Fees: Late fee of $29; no origination fees or prepayment penalties
  • Cosigner acceptance: No; co-borrowers accepted
  • BBB rating: A+

Pros:

  • Competitive interest rates
  • Small minimum loan amount
  • No origination fees or prepayment penalties
  • Accepts co-borrowers

Cons:

  • Must be a member to receive loan funds
  • Doesn’t disclose many eligibility requirements 
  • Charges late fees

SoFi

SoFi offers personal loans up to $100,000, making it a worthwhile option for borrowers who need large loan amounts for home improvement projects, wedding costs, or other needs. SoFi can also fund your loan the same day you’re appr🏅oved.

SoFi’s website states that you can ch🀅eck your rate online in just 60 seconds, with no impact on your credit score. And you don’t have to worry about how yo🍃u’ll repay your loan if you’re laid off; if you’re approved for SoFi’s Unemployment Protection, the lender will modify your payments for up to 12 months and will help you find a new job, too.

  • Interest rates: 8.99% to 25.81%; fixed
  • Loan amounts: $5,000 to $100,000
  • Loan terms: 2 to 7 years
  • Minimum credit score: Does not disclose
  • Loan types: Credit card consolidation, home improvement, wedding, relocation, vacation, medical expenses; unsecured
  • Funding time: As soon as the same day you sign your loan agreement
  • Eligibility: Must be at least 18 years old (or age of majority in your state); must be a U.S. citizen, eligible permanent resident, or non-permanent resident alien; must reside in a state where SoFi is authorized to lend; must be employed, have sufficient income from other sources, or have an offer of employment to start within the next 90 days
  • Fees: None
  • Cosigner acceptance: No; co-borrowers accepted
  • BBB rating: A+ (not BBB-accredited) 

Pros: 

  • Large loan amounts
  • Fast funding 
  • No fees

Cons: 

  • High minimum loan amount
  • Doesn’t disclose minimum credit score
  • Doesn’t accept cosigner

Methodology

Credible evaluated loan and lender data points in eight categories to identify the🐲 “best companies” for personal loans. We looked at interest rates, repayment terms, repayment options, fees, discounts, and customer service availability offered by 1 lenders. We also considered each company’s max loan amount, how long it takes to receive funds, whet🍌her the minimum credit score is available publicly, and whether consumers could request rates with a soft credit check. Credible receives compensation from its lender partners when a user of the Credible platform closes a loan with the lender.

How to compare personal loans for good credit

A personal loan is a form of installment loan that you can use for any purpose — whether to purchase a large-ticket item or pay off high-interest debt. Plus, unlike secured loans, such as mortgages or car loans, personal loans don’t require you to provide any collateral and can be a convenient way to finance major purchases.&🎉nbsp;

Once you’re approved for a personal loan, you’ll receive a lump sum of money that you pay back with i🔴nterest over a set period. But before submitting your loan application, it’s crucial to perform due diligence a🏅nd compare various personal loan options. This extra, but important step, ensures you’ll get the best interest rate and terms available — which could save you thousands over the life of the loan.

Check your credit score

Your credit score is a major deciding factor that personal loan lenders use to determine whether to lend you money. Although there’s no universal minimum credit score to qualify for a personal loan, most lenders prefer to see a score of 660 or above. 

If you don’t know where you stand in terms of your credit health, head to AnnualCreditReport.com and get a🐎 free copy of your report from all three major cr🎉edit bureaus — Equifax, Experian, and Transunion. With this information, you’ll have a better idea of which loans you could qualify for, saving you time and effort when comparison shopping. 

What are rates on good-credit loans?

To score the best deal when shopping for personal loans, it’s important to know what interest rates are considered better than average. Generally, good-credit loans that require a 🦄minimum FICO score of 660 have an A𓃲PR  between 7.00% to 16.00%. 

Axos Bank, for instance, offers a fixed APR of 7.99% to 15.19% for those with good credit. PenFed Credit Union provides a similar APR of 7.74꧃% to 17.99% — for qualifying personal loan applicants.

Review fees and repayment terms

Your monthly personal loan payments can vary significantly based not only on the amount borrowed and APR but also on the length of your loan term and any ex💮tra charges such as orig🎃ination fees. 

Consider all🍸 these factors when comparison shopping to make an informed decision about which personal loan best fits your budget. It’s important to understand the nuances of each offer, so ask questions if anything is unclear. 

What is an average interest rate for a good-credit loan?

The interest rate for a good-credit loan is typically below the national average rate, which is c💃urrently at 10.16%, according to Experian.

If you have a good credit score (670 to 739), the interest rate on your personal loan is usually less than for those borrowers who qualify for fair-credit personal loans.

APRs for personal loans range between 10.00% and 36.00%, according to Equifax. Borrowers with good credit scores are likely to find themselves on the lower end of this spectrum, whiౠle those with fair credit may be toward the higher end. 

While the difference between these two percentages might not seem huge, if yo♋u’re looking to borrow a large sum of money, the landscape gains more color. Even the slightest reduction in percentage rate can lead to significant savings over the course of repayment.

How much can you borrow with a personal loan?

Personal loans typically range from $500 to $100,000. If ൲you have excellent credit𒐪 and regular income, you might be able to borrow up to the maximum allowed.

Before taking the plunge and taking out the maximum loan amount allowed, consider the associated costs of personal loans, such as origination fees and application fees. Origination fees are usually 1% to 10% of the loan amount, whereas application fees can range widely depending on the lender. You may not need to pay an application fee at all, if your credit🌜’s good-to-excellent.

Personal loan alternatives if you have good credit

If you’re on the fence about a personal loan or don’t think it makes financial sense for you, it’s worth considering other options. We list a few alternative solutions below:

  • 0% APR credit card balance transfer: A balance transfer is when you move your existing debt to a card with a lower interest rate — in this case, 0% — and no annual fee. 

Balance transfer cards ♛typically offer a 0% introductory APR for 15 to 21 months. By taking advantage of this introductory period, you can quickly tackle your high-interest debt without worrying aboutꦐ additional interest charges.

With a HEL, you borrow a specific amount of money up front and then make fixed pℱayments over time. A HELOC, on the other hand,  provides an open credit line where you draw amounts as needed and then make payments on the outstanding balance over time. 

  • Federal credit union: Federal credit unions are often much more lenient about their loan qualifications. Plus, they typically offer interest rates significantly lower than traditional banks and lenders. 

Federal credit unions must not extend credit to borrowers exceeding 18.00% APR annually — even for those with less-than-stellar credit scores, according to the National Association of Federally-Ins🔴ured Credit Unions. 

Com꧟pared to some online lenders that offer personal loans with an A♑PR of 36.00% or higher, this much lower rate can help you save significantly on interest payments. 

What are the pros and cons of personal loans?

All financial products come with benefit🌳s and drawbacks. Let’s weigh the benefits of a personal loan against the costs to help you decide whꦍether it’s right for you. 

  • Pros
    • One lump sum: Personal loans’ upfront payments allow you to access a large chunk of money all at once, making it easier to budget your expenses. 
    • No collateral necessary: Because personal loans are unsecured, you don’t need to put up an asset, like your home or vehicle, as a guarantee. 
    • Fast funding: Most lenders distribute funds within three business days after your application is approved. Some even provide same-day funding. 
  • Cons
    • High-interest charges: Personal loans tend to have higher interest rates than secured loans like mortgages and car loans since lenders view unsecured loans as riskier. 
    • Possible fees: Most lenders charge application fees, origination fees, and payment processing fees when you take out a personal loan. These fees can add up, so it’s important to factor them into your budget. 
    • Potential penalties: If you miss a payment or attempt to pay off your loan early, some lenders might charge you a late fee or a prepayment penalty.