9
Best Personal Loans For Borrowers With Good Credit
Compare the Best Personal Loans for Good Credit
| COMPANY | FORBES ADVISOR RATING | MINIMUM CREDIT SCORE | APR RANGE | LEARN MORE |
|---|---|---|---|---|
|
680
|
As low as 8.99%
|
From participating lenders via Forbes Advisor
| |
|
|
700
|
7.24% to 24.89%
|
Via Credible.com's Website
| |
|
|
Not disclosed
|
8.99% to 17.99%
|
Via MoneyLion’s Website
| |
|
Does not disclose
|
7.99% to 23.99%
|
Via MoneyLion’s Website
| |
|
N/A
|
Up to 35.99%
|
From participating lenders via Forbes Advisor
| |
|
|
580
|
9.95% to 35.99%
|
Via Credible.com's Website
|
Best Personal Loans for Good Credit: A Closer Look
BEST OVERALL
Alliant Credit Union
Minimum Credit Score
680
APR range
As low as 8.99%
Loan amounts
$1,000 to $100,000
680
As low as 8.99%
$1,000 to $100,000
Alliant Credit Union is an online lender that offers personal loans with short approval and funding times. Loan amounts range from $1,000 to $100,000 with available loan terms of one to five years and rates starting at 8.99% for one-year loans; minimum rates are higher for longer repayment terms. You’ll need to become a member and meet other criteria to apply, but loans are available nationwide, and there are no origination fees or prepayment penalties.
- Customizable repayment terms
- No origination fee
- Same-day funding possible
- Payment assistance options for financial hardship
- Good credit is necessary
- Credit union membership is required
BEST FOR LARGE LOANS
LightStream
Loan amounts
$5,000 to $100,000
APR range
7.24% to 24.89%
with autopay
Minimum Credit Score
700
$5,000 to $100,000
7.24% to 24.89%
with autopay
700
LightStream offers loans with both a low minimum and maximum interest rate, along with a rate-beat program. LightStream’s unsecured personal loans range from $5,000 to $100,000 with loan amounts varying based on the loan purpose. In addition to offering flexible terms from two to seven years, LightStream charges no origination, late payment or prepayment fees. The lender also offers a 0.50 0.50% percentage point rate discount for borrowers who enroll in autopay.
- Does not charge origination, late payment or prepayment fees
- Lower maximum APR (capped at 24.89%)
- Same-day funding is possible
- Offers consolidation loan amounts of up to $100,000
- Higher minimum loan amount ($5,000)
- No option for prequalification
- No option for direct payments to creditors
- No mobile app
Lender Details
Eligibility
- Minimum credit score: 700
- Co-signers/co-borrowers: Co-borrowers accepted
Funding Speed
Same-day funding may be available if you sign documents, provide a bank account and complete the loan verification process before 2:30 p.m. ET.
BEST FOR LOW MAXIMUM RATES
PenFed
Minimum Credit Score
Not disclosed
APR range
8.99% to 17.99%
Loan amounts
$600 to $50,000
Not disclosed
8.99% to 17.99%
$600 to $50,000
Originally limited to U.S. military members and veterans, PenFed opened its membership so non-military members can take advantage of the lender’s personal loans and other services. Loans range from $600 to $50,000, so you don’t have to borrow more than you need, and maximum APRs are lower than those available from many lenders. Membership isn’t required to apply, but the lender will create a membership if you move forward with a loan offer.
- Interest rate cap lower than many other lenders
- No origination fee
- Must become a member to qualify
- No discount for using autopay
Lender details
Eligibility
- Minimum credit score: Not disclosed
- Co-signers/co-borrowers: Yes
Funding Speed
Next-day funding may be available. The speed of funding may be longer or shorter depending on what time of day you apply for a loan.
BEST FOR IN-PERSON BORROWING
TD Bank
Loan amounts
$2,000 to $50,000
APR range
7.99% to 23.99%
Minimum Credit Score
Does not disclose
$2,000 to $50,000
7.99% to 23.99%
Does not disclose
TD Bank is a traditional lender that offers personal loans in 15 states and Washington, D.C. While the bank’s geographic availability is more limited than that of other lenders, it may be a good choice if you prefer in-person banking and live in Connecticut, New Jersey, Delaware, New York, North Carolina, Florida, Pennsylvania, Maine, Rhode Island, Maryland, South Carolina, Massachusetts, Vermont, New Hampshire, Virginia or Washington, D.C. Loans are flexible and range from $2,000 to $50,000 with repayment terms from 36 to 60 months and APRs starting at 7.99%.
- Funding in as little as 24 hours
- Financial hardship assistance available
- No origination, application or prepayment fees
- Only available in 15 states and Washington, D.C.
- Doesn’t disclose direct creditor payment option
- Late fee up to 5% of minimum payment
BEST FOR SMALL LOANS
Oportun
Minimum Credit Score
N/A
Loan amounts
$300 to $10,000
APR range
Up to 35.99%
N/A
$300 to $10,000
Up to 35.99%
Oportun’s personal loans start at just $300—lower than most competitors—and go up to $10,000, making the lender a good choice if you need to borrow a small amount. Car title loans are available up to $18,500, but you shouldn’t have to rely on a secured loan if you have good credit. The application process is reportedly fast, but you’ll pay an administrative fee up to , a fee many top lenders don’t charge.
- Loans start at $300
- Fast application process
- Car title loans available up to $18,500
- Loans max out at $10,000
- Administrative fee
- Website doesn’t provide many loan details
BEST FOR LESS QUALIFIED BORROWERS
Avant
Loan amounts
$1,000 to $40,000
APR range
9.95% to 35.99%
Minimum Credit Score
580
$1,000 to $40,000
9.95% to 35.99%
580
Avant is an online lender that specializes in borrowers with less-than-stellar credit. The lender also may be a good option if you have good credit but struggle to qualify elsewhere, as it offers personal loans between $1,000 to $40,000 with APRs starting at 9.95%. Funding is fast, and the lender features a mobile app and online portal for managing your account. Still, you’ll have to pay an administrative fee up to 9.99%, which increases the overall cost of borrowing.
- Low minimum credit requirement of 580
- Funding as soon as the next business day
- Seven-day customer support available
- High minimum APR of 9.95%
- Administration fee up to 9.99%
- Doesn’t pay creditors directly
Most Popular is calculated from the number of times each affiliate product was selected by Forbes Advisor users over a six month time period.
What Is a Good Credit Score?
What constitutes a good credit score varies by scoring model, but score ranges are similar. A FICO Score of 670 to 739 is good, while a score of 740 to 799 is considered very good and a score of 800 or higher is exceptional. Similarly, a VantageScore between 661 and 780 is considered good.
Lenders will evaluate your credit score when reviewing your application, but not all financial institutions disclose their minimum score requirements. A high credit score demonstrates to lenders that you manage debt responsibly and are likely to repay your loan in full and on time.
Average Personal Loan Rates by Credit Score
How To Get a Personal Loan With Good Credit
Qualifying for a personal loan with a good credit score is typically easier than qualifying with a fair or poor score. However, following a few general steps can help you identify the most suitable loan offers and submit a formal loan application. Here’s how to get a personal loan with good credit:
- Review your credit report. Even if you already know your credit score, reviewing your credit report can help you identify and dispute errors before you apply for a loan. Request free copies of your three credit reports from AnnualCreditReport.com to stay on top of your credit profile.
- Evaluate your borrowing needs. Borrowing more than you need can lead to higher borrowing costs and larger monthly payments, while an insufficient personal loan can leave gaps in financing. Consider how much you need to borrow before you apply to avoid lenders that don’t align with your needs.
- Research lenders. Once you understand your credit qualifications and borrowing needs, look for lenders with accessible eligibility requirements and suitable loan amounts. Most lenders disclose available borrowing limits, interest rates and minimum eligibility criteria, but some require you to meet with a loan officer to get more information.
- Prequalify and compare loan offers. Many online lenders will let you prequalify to see the loan terms you’re likely to qualify for. Loan prequalification typically doesn’t require a hard credit check, so it won’t hurt your credit score. Reviewing available rates, fees and terms can help you find the personal loan that matches your financial situation.
- Complete the application process. After you prequalify, choose the loan offer that addresses your borrowing needs and complete the formal application process. Depending on the lender, you’ll likely need to provide additional personal information and upload financial documents, such as pay stubs or proof of employment. At this point, the lender will run a hard credit inquiry that will remain on your credit report for up to two years.
- Await approval and funding. Approval and funding times vary by lender. Some online lenders offer almost instant approval, and loan proceeds may be available within 24 hours. However, many lenders take several business days to approve and fund personal loans. Consider setting up automatic payments to stay on top of your due dates once the lender disburses your funds.
How To Compare Top Personal Loans for Good Credit Scores
The best personal loans offer flexible loan terms and competitive interest rates, but not every loan—or lender—will be right for you. Consider these factors when comparing available loan offers:
- Loan amounts. Personal loan amounts typically range from $500 to $100,000, but some lenders offer more. Avoid overborrowing by choosing a lender that offers a loan amount that matches your needs.
- Loan repayment terms. Lenders often offer personal loan repayment terms between one and seven years, with shorter terms resulting in higher monthly payments. While a longer term leads to lower monthly payments, you’ll pay more interest over time.
- Interest rates. Personal loan interest rates also vary by lender but usually range from about 6% to 36%. Lenders typically reserve the most competitive rates for borrowers with the highest credit scores—from very good to excellent or exceptional—so you likely won’t qualify for the lowest available rates with a good FICO Score.
- Fees. Origination fees and prepayment penalties increase the overall cost of borrowing, so choose a lender with a competitive fee structure. The loan APR represents both the interest rate and fees, so consider this value when shopping for a loan.
- Funding times. Approval times and funding speeds vary by lender, with some lenders processing applications within 24 hours and others taking several days to disburse funds. If you need fast access to cash, find out how long each lender takes to fund loans and consider the best emergency loans.
- Additional loan features. Some lenders offer flexible repayment options, such as the ability to defer payments if you run into financial hardship. Others will directly pay your creditors with a debt consolidation loan so you don’t have to. Look for lenders that offer perks and features that address your financial situation and borrowing needs.
How Do Personal Loans Affect Your Credit?
Here are a few ways a personal loan will likely affect your credit:
- New credit. Borrowers who open multiple credit accounts in a short period pose greater risk to lenders. For that reason, applying for a personal loan can cause your credit score to dip by a few points when the lender runs a hard credit inquiry. The decrease is usually minor and temporary, and your score will likely bounce back if you manage your debts responsibly. Your new credit accounts for 10% of your FICO Score calculation.
- Credit mix. Adding a personal loan to your debt portfolio could also improve your score if it changes your credit mix, a category that makes up 10% of a FICO Score. Maintaining a healthy mix of credit demonstrates you can handle different types of debt and may increase your overall score.
- Length of credit history. The length of your credit history makes up 15% of your score calculation and represents how long your credit accounts have been established and how long it’s been since you used certain credit accounts. Taking out a new personal loan starts the clock on your newest account and shortens the average age of your credit accounts, which can lead to a temporary drop on your score.
- Amounts owed. The amount owed metric represents your total outstanding debts and accounts for 30% of your FICO Score calculation. When you take out a new personal loan, the amount owed on all of your accounts will go up, as will the number of accounts with an outstanding balance. Paying down your loan will improve this metric, but this takes time.
- Debt-to-income (DTI) ratio. A new personal loan will also increase your DTI, or the ratio of your monthly debt service to your monthly income. Your DTI doesn’t directly affect your credit score, but lenders will consider it when evaluating your loan application. If you plan to apply for a mortgage soon, for example, avoid a large personal loan that could push your DTI ratio above 36%.
- Payment history. Your payment history makes up 35% of your FICO Score calculations, so making on-time personal loan payments can help you increase your credit score over time. However, if you’re late on payments or miss them completely, your score will go down.
Personal Loan Alternatives for Borrowers with Good Credit
If you have a good credit score, a personal loan likely isn’t the only way to access cash or credit. Depending on your financial situation and needs, you may qualify for lower interest rates or more flexible terms with an alternative source of funding. Here are some personal loan alternatives to consider if you have good credit:
- Credit card. A credit card can help you cover day-to-day expenses or large purchases by spreading payments out over time. Depending on your qualifications, you may qualify for APRs between about 18% and 30%, although some credit cards come with a promotional 0% APR for the first 12 to 24 months.
- Buy now, pay later apps. Many retailers offer buy now, pay later apps like Klarna as a payment option to help you spread out the cost of purchases over time. Interest rates range from 0% to 36%, but repayment terms are shorter than for personal loans and credit cards. Many apps require repayment within 36 months.
- Personal line of credit. A personal line of credit is similar to a credit card because you can access your borrowing limit as needed. However, lines of credit often come with higher borrowing limits than credit cards, and draw periods are limited to several years. Interest only accrues on the outstanding balance, though 0% introductory rates like those available with some credit cards aren’t available.
- Home equity loan or home equity line of credit. A home equity loan or home equity line of credit (HELOC) lets you access your home equity to finance renovations or other large expenses. Interest rates are often competitive because these financing tools are secured by your home. However, this means the bank can seize your home if you default on the loan, so only choose this option if you can comfortably afford the payments.
- Cash-out mortgage refinance. Unlike a HELOC or home equity loan, a cash-out mortgage refinance involves replacing your current mortgage with a larger one and using the extra cash to cover other expenses. Don’t opt for this alternative if your interest rate will increase, if you plan to move soon or if you want funds for discretionary spending.
- 401(k) loan. With a 401(k) loan, you borrow funds from your retirement account up to 50% of your vested account balance or $50,000, whichever is less. These loans don’t require a credit check, and principal and interest payments go back into your 401(k) account. Before choosing this alternative, talk to a financial advisor or tax professional who can help you understand tax implications, fees and long-term effects on your retirement savings.
- Friends and family. If it’s an option, borrowing from friends and family instead of taking out a personal loan can help you save on interest and fees. However, you should always draft a promissory note to ensure everyone understands and agrees to the loan terms.
Methodology
We reviewed 18 popular lenders based on 19 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 20%
- Eligibility and accessibility: 15%
- Customer experience: 15%
- Application process: 15%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process like prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Frequently Asked Questions (FAQs)
What is a good credit score for a personal loan?
A good credit score for a personal loan is usually between 670 and 739, but having a higher score can increase your approval odds. If you have a higher credit score, you also may qualify for more competitive interest rates, fees, loan amounts and repayment terms. Ultimately, what constitutes a good credit score for a personal loan varies by lender and loan type.
Can I get a $50,000 loan with a 700 credit score?
You may qualify for a $50,000 loan with a 700 credit score, but your approval odds also depend on the lender, the loan type and your financial situation. Most lenders consider a 700 score to be a good credit rating, but approval also depends on factors like your income, debt-to-income ratio and other lender requirements.
How much does it cost to borrow a personal loan?
The cost to borrow a personal loan depends on the lender and your qualifications. In general, though, lenders charge interest rates between about 6% and 36%, and you may face origination fees between 1% and 8% of the total loan amount.