Best Personal Loans in April 2024:
- Upgrade – Best for Fair to Poor Credit
- Upstart -Best for Limited Credit History
- SoFi – Best for Good Credit
- 5kFunds – Best for Multiple Loan Offers
- Low Credit Finance – Best for Easy Approval
Financer.com helps you compare a carefully selected list of top personal loans for debt consolidation, home repairs, and any other personal expenses quickly, effectively, and for free.
We have reviewed more than 20 personal loan lenders and filtered the best choices according to interest rates, terms, fees, and online reputation.
Use our personal loans comparison as a guideline and keep in mind that depending on your individual situation, your offer might be lower or higher than shown on our website.
We recommend that you pre-qualify with at least a few lenders, which comes with 0 costs for you until you sign the actual loan contract. This will ensure you have the most competitive offer on the market.
Upgrade: Best for Fair to Poor Credit
Upgrade offers personal loans that cater to individuals with a wide range of credit scores, including those with fair to poor credit. The company stands out for its flexible loan options and features aimed at helping borrowers manage their loans and improve their financial health.
However, potential borrowers should consider the costs associated with the origination fee and the possibility of high APRs when deciding if an Upgrade loan meets their financial needs.
Loan Terms
- APR Range: 8.49% to 35.99%
- Loan Amounts: $1,000 to $50,000
- Origination Fee: 1.85% to 9.99%, deducted from loan proceeds
- Repayment Terms: 24 to 84 months
- Determination Factors: APR and terms are based on the applicant’s credit score, credit usage history, and other relevant factors.
Requirements
To qualify for an Upgrade personal loan, applicants need a minimum credit score of 600 and an annual income of at least $25,000. Applicants must also have a bank account and be at least 18 years old, or 19 in certain states. Upgrade evaluates factors such as income, debt-to-income ratio, and credit history during the application process.
Accessible to borrowers with lower credit scores.
Offers joint loans, which could help qualify for better rates or higher amounts.
Provides free credit monitoring and direct payment to creditors for debt consolidation.
Allows adjustment of due dates to fit the borrower’s budget.
Pros:
High maximum APR compared to other lenders.
Charges origination fees, which are deducted from the loan amount.
Does not accept cosigners, limiting options for those with very poor credit.
Cons:
How to Apply
The application process starts with pre-qualification, which does not affect the applicant’s credit score. Applicants can then submit a formal loan application, including financial documents like recent pay stubs and bank statements.
Upon approval, the loan offer must be accepted, and funds are typically available within one business day, depending on bank processing times.
Upstart: Best for Limited Credit History
Upstart stands out in the personal loan market by using a non-traditional underwriting method that considers more than just credit scores. This innovative approach includes evaluating education, employment history, and other factors, making it a viable option for individuals with low credit scores or thin credit histories.
Upstart’s loans are designed to be fast and flexible, offering funding for a wide range of personal needs. Although, while they offer competitive rates for qualified borrowers, it’s essential to be aware of the origination fees and to consider how they might affect the total cost of your loan.
Loan Terms
- Loan Amounts: $1,000 to $50,000
- APR Range: 7.8% to 35.99%
- Repayment Terms: 3 years or 5 years (fixed rates and terms for predictability)
- Prepayment Penalties: None (borrowers can repay loans early without extra charges)
Requirements
Upstart’s eligibility criteria are more flexible than many traditional lenders, accommodating applicants with a minimum credit score of 300 in some cases.
Requirements include a U.S. residential address, at least 18 years of age, a valid email account, a verifiable name and Social Security number, a full-time or regular part-time job (or another source of regular income), an annual income of at least $12,000, and a U.S. bank account.
Accessible to individuals with poor or limited credit history.
Quick funding, usually within one business day after approval.
No prepayment penalties for early loan repayment.
Soft credit check for prequalification, which does not affect the credit score.
Pros:
Charges an origination fee which could be as high as 12% of the loan amount.
Limited to two repayment term options (three or five years).
Not available in all states, and doesn’t accept cosigners.
Cons:
How to Apply
Applying for an Upstart loan is straightforward and can be initiated online. The process involves checking your rate through a soft credit inquiry that does not impact your credit score, selecting your loan terms, and, upon approval, receiving your funds rapidly—often within one business day.
The entire procedure emphasizes speed and simplicity, aiming to get funds to borrowers as quickly as possible.
SoFi: Best for Good Credit
SoFi is well-known for giving out big personal loans with good interest rates to people who have good credit scores.
SoFi stands out as an online lender because it offers loans in a wide range of amounts, has flexible pay-back terms, and provides special perks like free career advice, financial planning help, and support if you lose your job. You can use SoFi’s loans for many things, like paying off debt, fixing up your home, or paying for big events like weddings or trips.
Because of all these benefits, SoFi is a great option for people with good credit who need a large amount of money and appreciate extra services. However, if you need a smaller loan or your credit isn’t great, you might find a better fit with a different lender.
Loan Terms
- Loan Amounts: $5,000 to $100,000
- APR Range: 8.99% to 29.49%, including discounts for autopay and direct deposit
- Repayment Terms: 2 to 7 years, providing flexibility for borrowers
- Same-Day Funding: Upon approval, funds are made available promptly to meet borrowers’ needs
Requirements
Unlike many lenders, SoFi does not disclose a minimum credit score requirement, indicating a more holistic approach to borrower evaluation. However, it is generally understood that SoFi targets borrowers with good to excellent credit profiles. Eligibility for a SoFi personal loan includes being at least 18 years old, a U.S. citizen, permanent or non-permanent resident, and having a steady income or an employment offer starting within 90 days.
Access to large loan amounts suitable for significant investments or debt consolidation.
No origination, prepayment, or late fees, emphasizing SoFi’s no-fee policy to reduce the cost for borrowers.
Multiple rate discounts for autopay, direct deposit, and debt consolidation payments directly to creditors.
Unique perks such as unemployment protection, career coaching, and financial advising services.
Pros:
High minimum loan amount of $5,000, which may not cater to those needing smaller loans.
The absence of a secured loan option, limiting alternatives for borrowers to potentially lower their APR through collateral.
Difficult to be approved without a high credit score.
Cons:
How to Apply
Applying for a SoFi personal loan involves a straightforward online process. Applicants can check their rates without impacting their credit score, thanks to a soft credit inquiry.
If the loan terms are agreeable, the applicant can proceed to apply for the loan directly through SoFi’s website, with potential for same-day funding upon approval.
5kFunds: Best for Multiple Loan Offers
5KFunds stands out as a leading lending marketplace for those in need of flexible and quick personal loans, particularly benefiting individuals with diverse credit backgrounds.
By offering access to a broad network of over 100 lenders, 5KFunds allows applicants to find suitable loan options without an initial credit check, preserving their credit scores. This feature is especially valuable for those with poor credit, providing an accessible loan source outside traditional financial systems.
The platform emphasizes efficiency with its fully online application process, promising fast loan approvals and potential next-day payouts. Moreover, its application is free, highlighting 5KFunds’ commitment to accessible financial assistance.
Loan Terms
- Loan Amounts: $500 to $35,000, accommodating a wide range of borrowing needs from minor emergencies to significant expenses.
- APR Range: 5.99% to 35.99%, varying based on the lender, loan amount, and borrower’s creditworthiness.
- Repayment Terms: From 61 days up to 72 months, offering flexibility to manage repayment in a way that fits borrowers’ financial situations
Requirements
Applicants must meet the following criteria to be eligible for a loan through 5KFunds:
- Be at least 18 years old.
- Be a U.S. citizen or a permanent resident.
- Have an active bank account that supports direct deposits.
- Demonstrate a regular source of income.
- Provide a valid contact number and email address
Wide Lender Network: 5KFunds provides access to over 100 approved lenders, offering a broad range of loan options to suit various needs
No Initial Credit Check: The platform allows applicants to explore loan options without a credit check for the initial application, helping protect credit scores
Quick Funding: Loans can be approved and disbursed as soon as the next business day, offering fast financial assistance when needed
Accessibility for Bad Credit: There’s no minimum credit score requirement, making 5KFunds accessible even to those with poor credit histories
Pros:
Not Available in All States: 5KFunds does not operate in NY, CT, VT, WV, AK, and GA, limiting accessibility for residents in these states
Variable APRs and Terms: Since 5KFunds is a marketplace, APRs and loan terms vary by lender, which might result in less favorable conditions depending on the borrower’s creditworthiness and the lender’s criteria
Lack of Direct Customer Support: The absence of a toll-free helpline and live chat means customer support is limited to email, which may not be as responsive or convenient for some users
Potential for High APRs: Interest rates can go as high as 35.99%, which could be costly for borrowers with lower credit scores or less favorable loan conditions
Cons:
How to Apply
The application process is streamlined and digital:
- Start on the Website: Navigate to the 5KFunds website and initiate the application by clicking ‘Get Started.’
- Enter Details: Provide necessary information including loan amount, repayment term preferences, employment, and banking details.
- Identity Verification: Confirm your identity as part of the process to secure your application.
- Review Offers: Compare loan offers from various lenders and select the one that best meets your needs
How to Compare Personal Loans
To compare personal loans, start by determining the amount you need and the repayment period you prefer.
Pro Tip:
Use our free loan calculator to estimate your monthly payments. Test different loan terms to find the monthly installment you feel most comfortable with.
When you are clear on the amount and the term, our team recommends you to pre-qualify with a few different lenders and evaluate real market offers tailored to your circumstances.
Here are the main factors to consider when comparing personal loan offers:
Interest rates and APR
The annual percentage rate (APR) combines the interest rate with additional fees and will provide you a clear picture of the loan’s true cost. Compare APRs across different lenders to find the most economical option.
Loan terms
The length of the loan affects both your monthly payments and the total interest you’ll pay. The standard range for a personal loan varies between 1 and 7 years.
Shorter terms generally result in higher monthly payments but lower total interest, while longer terms extend the opposite effect.
Michael Dunich, Financial Advisor from WealthofGeeks.com, shares:
¨From my work assisting clients over the years, I’ve increasingly observed borrowers opting for elongated personal loan terms, such as 5 years or longer. While lengthening the amortization period raises the total interest paid overall, the impact on monthly cash flow should not be underestimated. For many households managing tight budgets amid rising inflation, lowering their required monthly debt obligations is a higher priority than minimizing interest costs, given interest deductions provide negligible tax benefits for unsecured loans nowadays. Stretching payments across half a decade or more, noticeably cushions the month-to-month constraints that abrupt expenses or reduced earnings could otherwise impose.¨
Fees and penalties
Pay attention to all fees related to your personal loan.
These include origination fees (most frequent for mortgages but can be found for personal loans, too), application fees, late-payment fees (how much will you have to pay if you are late with an installment and is there any prepayment penalty if you intend to repay your debt early.
Loan amounts and flexibility
Assess both the maximum and minimum loan amounts.
Typical minimum loan amounts can range from $1,000 to $5,000. For lower amounts, consider borrowing from friends and family or using a credit card.
Funding time
The time it takes to receive the funds can vary from one lender to another.
Some lenders may offer funding as quickly as within one business day, others will need more than 72 hours.
Depending on your financial needs, funding time could be a key factor in choosing a lender.
Types of loans
Explore the different types of loans available, such as secured vs. unsecured and fixed-rate vs. variable-rate, to find the one that best suits your circumstances.
For example, choosing a secured loan may positively impact the terms you are offered.
Loretta Kilday from Debt Consolidation Care advises:
“Consider having a co-signer with a favorable credit history; this will improve remarkably the terms given. Another strategy that would reduce the risk of lenders and offer better conditions is to grant collateral.”
Unique features
Some lenders make their offers more competitive by offering rate discounts, no fees, direct fund transfers to other creditors when the loan is for debt consolidation, etc.
Customer experience
Read customer reviews and testimonials to gauge the lender’s service quality and reliability*. Pay special attention to negative situations and evaluate the company’s response to them.
On the other hand, positive reviews are a good indicator of the borrowing experience.
Use these factors as a guide and you will be able to confidently compare personal loans in an informed manner.
* When considering reviews, please bear in mind that people who have had a negative experience with loan providers tend to leave more reviews than the ones who have had a positive experience.
Before You Take Out A Personal Loan
Before you take out a personal loan, carefully consider your financial health and needs.
Here’s a structured approach to help you evaluate if a personal loan is right for you:
- Determine your borrowing needs: Define why you need the loan, whether it’s for debt consolidation, home improvement, or an unexpected expense. This clarity ensures you borrow just what you need.
- Check your credit score: Your credit score affects your loan eligibility and the interest rates you’ll be offered. If you have a low credit score, it is considered the lender assumes more risk when lending you money. This translates into higher fees and interest rates.
- Compare your options: If you have an excellent credit score, consider whether a personal loan or a 0% interest credit card is more beneficial. For instance, a 0% credit card can be a smarter choice for short-term financing if you’re confident you can pay off the balance before the promotional period ends. However, for longer-term financing or larger sums, a personal loan with a fixed interest rate might be more economical.
- Consider a secured loan: The use of a collateral can secure you lower interest rates. However, be mindful of the risks. If you default on your personal loan, you can lose your asset.
- Assess your repayment ability: Evaluate your monthly income and expenses to ensure you can comfortably make your personal loan payments without straining your finances.
Pro tip: the higher your credit score, the better your personal loan offer will be.
You can improve your credit score by: paying your debts and bills on time, using less than 30% of your credit card limit on any card (less is better), keeping your longest credit accounts open, and disputing any credit report errors.
Did You Know?
You can get a free credit report from each of the three major credit bureaus by using AnnualCreditReport.com?
The credit report contains your bill payment history, loans, active debt, bankruptcy history, and lawsuit records.
If you happen to notice a provable error, dispute it immediately. For example, if you find out there is a notice of a late payment, when in fact you paid on time, request a revision.
Note: this credit report does not include your actual credit score. If you’d like to check your credit score, you can use a service like Credit Karma or MyFico.
Personal Loan Rates Based on Credit Score
Your credit score impacts your loan’s APR.
Furthermore, in the beginning of 2024, interest rates are higher than usual for everyone.
Below is an average range of current expected personal loan rates based on different credit score ranges:
| Borrower credit rating | Score range | Estimated APR |
| Excellent | 720-850 | 14.21% |
| Good | 690-719 | 17.00% |
| Fair | 630-689 | 19.95% |
| Bad | 300-629 | 22.20% |
Will there be a drop in personal loan rates in 2024?
Financer.com asked several financial experts if in 2024 we will finally see a drop in the interest rates of personal loans.
Unfortunately, their forecasts are not encouraging.
Here is what they shared:
“The year 2024 is expected to experience a rise in the personal loan interest rate by 1.5%.”
– Bill Ryze, Board Advisor at Fiona.com
“If inflation shows signs of retreat and the Federal Reserve decides to loosen its grip on interest rates, we could see a gradual decline in personal loan rates later in the year. However, further rate hikes wouldn’t be entirely out of the picture if inflation remains stubbornly high… The trend seems to be that rates for 3-year loans are decreasing slightly, while 5-year loan rates are increasing.”
– True Tamplin, Educator in Personal Finances at FinanceStrategists.com
“On rates, we’ve seen a slight dip in January after initially expecting increases in 2024. The average APR on personal loans now sits around 22.99%, though this fluctuates by credit tier. Borrowers with top-notch credit can secure impressively low rates near 6%, while those with poor credit may face APRs above 27%. Looking ahead, major swings appear unlikely with the Fed’s decision to likely hold rates steady this year. But creeping inflation could gradually bump rates upward.”
– Ashley Akin, Senior Tax Associate at DividendEarner.com
Though they all foresee possible increases, we’d like to remind you that every borrower’s situation is different and the exact rate you receive depends on your own creditworthiness and financial situation.
Borrowers with credit scores over 720 may still be able to find rates significantly lower than the average.
How do personal loans work?
Personal loans are a type of loan that usually does not require collateral.
You can apply for a personal loan with a traditional bank, online lender, or a credit union.
Your credit score, income, debt-to-income ratio, and current debts are some of the factors your lender will consider when reviewing your application.
You can repay your personal loan in fixed monthly installments over a period ranging from a few months to several years.
Short-term personal loans typically mean higher monthly payments but lower overall paid interest. Long-term personal loans, on the contrary, will have you paying a smaller amount every month but you’ll pay more in interest.
Here is what else you should know:
Personal loan uses
As per the latest industry data published by Lendingtree.com, 23.2 million Americans currently are personal loan debtors.
Out of them, 52.9% use the funding for debt consolidation and 7.5% use it for home improvements.
Though you can use a personal loan for almost any purpose, besides the above two, people frequently opt for them for:
- Emergencies: personal loans are fast funded and often chosen for unexpected medical bills, car repairs, quick home fixes, or funeral costs.
- Large expenses: with personal loans, you can finance large expenses such as weddings, vacations, divorce, and buying an RV or a car.
Documents you need to present for a personal loan
When applying for a personal loan, you will be asked to show:
- Proof of identity – lenders will typically ask for two forms of identification, these could be: birth certificate, driver’s license, social security card, state-issued ID or passport.
- Proof of income – lenders may require you to verify your monthly income. For this, they may ask for bank statements, tax returns, W-2s and 1099s, and pay stubs.
- Proof of employment – lenders might require you to present a document showing you’re employed and for how long you’ve been in your current employment.
- Proof of address – the documents that can help you prove your address could be utility bills, lease agreements, mortgage statements, bank statements, or property tax receipts.
Pros and Cons of Personal Loans
Fast funding – some lenders allow for same-day money transfer.
Flexibility in terms of how you can use the funds – you can use the funds for a variety of reasons.
Lower interest rates than most credit cards – though personal loan interests right now are high, they are still lower than most credit cards.
No collateral required – you do not need to provide collateral. Though adding one can help you secure better terms.
Can help you build credit (lenders typically report to the three major credit bureaus – Equifax, Experian, and TransUnion).
Useful for debt consolidation – personal loans can help you save money by consolidating existing debt from different sources into one.
Extended loan terms up to 10 years – if you need a higher sum but prefer to repay it in small monthly installments, personal loans can allow you to do it.
Eligibility requirements can be strict – if you have a credit score lower than 580, you can have a hard time getting approved for a personal loan.
Interest rates can be higher than alternatives especially if your credit score is fair or poor – current interest rates on personal loans are higher than usual, especially for borrowers with fair credit scores.
High fees and penalties – lenders are likely to include different penalties and fees. For example, the origination fee for personal loans can vary from 1% to 10% of the total loan amount.
Can negatively impact your credit score – if you are late on your payments or if you default on your loan, this will negatively impact your credit score.
How to Get the Best Personal Loan Rates
Securing the best rates on a personal loan can significantly reduce your financial burden over the loan’s lifetime. Here are several strategies that can help you achieve lower interest rates, potentially saving up to 5%:
Shop Around and Compare Loans
- Use comparison websites: Leverage a platform like ours to compare offers from multiple lenders.
- Pre-qualify for loans: Many lenders offer the option to pre-qualify, providing you with tailored loan proposals based on your financial situation.
- Informed decision-making: Comparing loans helps you make a choice based on current market conditions, ensuring you get the best deal.
Add a Co-Signer
- Boost your application: A co-signer with a strong credit score can significantly lower your loan’s interest rate.
- Shared responsibility: Remember, a co-signer is legally responsible for the loan alongside you. Any missed payments or defaults affect both your credit scores.
Opt for a Secured Personal Loan
- Use collateral: Secured loans require collateral, such as a home or vehicle, lowering the lender’s risk and potentially reducing your interest rate.
- Risk of loss: If you fail to repay, the lender can take possession of your collateral.
Check Your Credit Report
- Annual credit report: You’re entitled to a free credit report each year. Scrutinize it for any inaccuracies.
- Dispute errors: If you find mistakes, dispute them immediately. Credit bureaus have 30 days to investigate and respond. (More information on the process can be found here.)
Opt for Auto-Pay Sign-up
- Automated payments: Enrolling in auto-pay can lower the total cost of your loan. Lenders may offer a discount for automating your loan repayments, as it reduces the risk of late payments.
Andrew Gosselin from the Calculator Website, shares:
“While auto-pay enrollment discounts from lenders may seem minor on the surface like shaving only a few basis points monthly from the interest rate, their power should not be overlooked by borrowers striving for the most cost-effective personal loan terms.”
And he provides an example:
“Consider a hypothetical $10,000 loan at 7% interest with a 60-month repayment period. Without auto-pay, the total interest paid would be roughly $3,000. Yet enabling that option to knock 0.25% off the rate results in paying under $2,800 in interest—a non-trivial savings of $200 simply for avoiding late fees or missed payments through streamlined automation.”
What if I don’t get approved for a personal loan?
If you do not get approved for a personal loan straight away, do not get discouraged. You might be able to reapply and qualify.
The first thing is to find out why you were denied funding.
We’ve collected several of the most popular reasons personal loan applications get rejected.
Here is how to fix them:
Low credit score
If your credit score is low, the lender will consider you less likely to repay your debt and this will reduce your chances of approval.
Credit scores in the range 300-579 are considered poor, while those in the range 580-669 are considered fair.
How can you boost your credit score?
On top of paying your bills on time and covering your current debts, here are some other steps you can take that can help you add up to 100 points to your credit score.
- Strategic credit utilization. If you have credit cards, do not use more than 20% of your allowed limit. Add alerts when your balance hits a set amount and make timely payments towards it. The key thing is for your balance to be low when your credit card provider reports to the credit bureaus. Avoid opening new credit accounts.
- Get a secured credit card. Secured credit cards work with a cash deposit in advance. Then your credit limit will be the same amount as your deposit. You can use it as a regular credit card and by making regular payments, you’ll build your credit report.
- Ask a family member or a friend with a credit card account with a high limit to allow you to be an authorized user. They do not have to give you a real card or access but just having your name there will positively impact your credit profile.
- Dispute credit report errors. Use AnnualCreditReport.com to request a free credit report and go through it carefully. If you identify any errors, dispute them.
High debt-to-income ratio
If a large portion of your income is already going towards debt repayment, lenders may need clarification on your ability to manage additional payments.
How to improve your debt-to-income ratio?
You can fix this by finding additional sources of income such as seeking a raise at your current job or starting a side hustle.
Once you have more money coming in, you will be able to repay a bigger portion of your already existing credits and improve your overall debt-to-income ratio.
Read our free resources on debt management and find out different methods that can help you effectively get rid of your debts. Find out more about the Avalanche Debt Method, the Debt Snowball Method or learn How to pay off your student loan.
Frequently Asked Questions
Where can I get a personal loan?
You can get a personal loan from traditional banks, online lenders, or credit unions. They typically range between $1,000 and $50,000 with APRs up to 35.99%.
From the research that we have done, the best offer on the market right now is Upstart which offers its clients 7.8%.
How can I use a Personal Loan?
Personal loans do not have a strict purpose and lenders do not restrict the way you can use the funds. Most people use personal loans to consolidate other debts; to finance big purchases like a vehicle or to cover large expenses like home repairs, weddings, and funeral costs.
How do I know if I have a good personal loan rate?
You can evaluate the personal loan rate you have against a few different benchmarks to determine if it is good.
For example, if you use a personal loan for debt consolidation, you can use a calculator to compare your current costs vs the ones you’ll have with the new rate. If the total amount of your debt with the new conditions is lower, then the rate of your personal loan rate is good.
If you use the personal loan for other purposes, you can compare it with the current average for borrowers within your credit score bracket. If it is lower, then you can consider you have an advantageous personal loan rate. Keep in mind, though, that industry averages might not accurately represent your situation. The best thing to do is to pre-qualify with several lenders and compare the individual offers you receive to find the best personal loan rate for your individual case.
How long does it take to get a personal loan?
Getting a personal loan takes around a week. Depending on your lender and how fast you move through the application process, your personal loan could take less or more than that.
The approval can take anywhere from 15 minutes to 5 business days depending on factors like your credit score and the chosen lender.
After approval, funding can be disbursed as soon as the next day but you still might have to wait a couple of days for the transaction to be cleared in your bank account.
How do personal loans affect credit?
Taking out a personal loan might affect your score in the short term and make it more difficult to obtain additional financing before you repay your current debt. However, if you manage your debt well and make timely payments, your personal loan can actually boost your credit score.
How many personal loans can you have at once?
There is no official limit on how many personal loans you can have at once, however, lenders may set a maximum debt amount for you depending on your debt-to-income ratio and credit score.
Can I refinance a personal loan?
Yes, you can refinance a personal loan if you find and qualify for one with better terms such as a lower APR. This way you’ll pay less interest over time or you can reduce your monthly payment if you extend the term.
Are current personal loan rates high?
Yes. Current personal loan rates are the highest they’ve been in years. As per data from Business Insider, the average personal loan rate right now is around 20%. If you have a high credit score, though, you are likely to get a better rate.
How is my personal loan rate decided?
There are three factors that influence the personal loan rate that you are given:
- Your personal credit score and creditworthiness. If you have a high credit score, you are more likely to get a favorable loan rate as lenders consider you a reliable borrower. Additionally, aspects like your income-to-debt ratio, income amount, and employment history may affect the offered rate.
- The size and length of the loan. Traditionally, it’s considered that longer terms carry more risk for the lender, therefore you can expect higher interest rates if you choose a longer term.
- The cost of borrowing for your lender. And lastly, the personal loan rates are affected by the cost of borrowing for your lender. There are benchmark rates set by the Federal Reserve and interbank lending rates, such as the Secure Overnight Financing Rate data.
How big of a personal loan can I get?
The maximum amount of a personal loan you can get depends on your lender and your personal circumstances.
Most lenders set their maximum amounts to $50,000 but there are also some whose limit is $100,000. Additionally, high-income earners with excellent credit scores might be able to get even more.
Why are most personal loans much smaller than mortgages and home equity loans?
Mortgages and home equity loans are secured by a property, personal loans are typically not secured and the lender is assuming more risk from a possible default.
