Top 15: Best Personal Loans Of 2023

The best personal loans can be an excellent solution for financing a major purchase, consolidating debt, or covering unexpected expenses. But with so many options out there, it can be challenging to know where to start.

This is why we've curated this list of the best lenders available. Taking into account factors like competitive interest rates, minimal fees, flexible repayment schedules, and positive customer feedback, we aim to spotlight lenders that provide the best overall value.

15 Best Personal Loans

Camino Financial

Best for business expenses

If you're considering using a personal loan to fund your business, why not apply for a Camino Financial business loan?

We are a great option because we have more lenient requirements when compared to other commercial lenders.

We want to ensure that everyone, regardless of their immigration status, can access the capital they need. So that you can keep your finances healthy without drowning in debt, we have fixed rates and no hidden fees. The best thing is that we're an online lender. That means you can apply anytime, anywhere.

• Amount: $10,000 to $50,000
• Type of rate: fixed
• Min. credit score: 600
• Terms: 24 months
• Collateral needed: no
• Speed: Less than 12 days

Apply For A Business Loan!

Sofi

SoFi offers exceptionally competitive rates for a much longer term if you have a solid credit score. They are a trusted resource for refinancing student loans or other significant expenses. Sofi is an excellent solution to consolidate debt or pay significant expenses.

• Amount: $5,000 to $100,000
• Interest rate: 8.99% to 25.81%
• Type of rate: variable and fixed
• Min. credit score: 650
• Terms: 24 to 84 months
• Collateral needed: no
• Speed: 3 business days

Upstart

Upstart is a fintech company that utilizes artificial intelligence to facilitate personal loans. Its platform employs non-traditional variables to better predict creditworthiness. This lender doesn't allow co-signers.

• Amount: $1,000 to $50,000
• Interest rate: 4.6% to 35.99%
• Type of rate: fixed interest rate
• Min. credit score: 600
• Terms: 36 to 60 months
• Collateral needed: no
• Speed: next-business-day funding

Upgrade

Upgrade is a financial technology company that offers personal loans, credit lines, and checking accounts to borrowers with various credit scores.

• Amount: $1,000 to $50,000
• Interest rate: 8.49% to 35.99%
• Type of rate: fixed
• Min. credit score: 580
• Terms: 3 to 7 years
• Collateral needed: no
• Speed: up to four business days

Lightstream

LightStream is the online lending division of Truist Bank, created after the merger of SunTrust Bank and BB&T. Specializing in offering consumer loans for various purposes; they have a straightforward online application process and competitive rates.

• Amount: $5,000 to $100,000
• Interest rate: 7.99% to 25.49%
• Type of rate: fixed
• Min. credit score: 660
• Terms: 2 to 7 years (or even 12 years)
• Collateral needed: no
• Speed: receive funds on the same day

Discover

Discover is a major American financial services company. Best known for its credit card products, they have expanded its offerings to encompass personal loans, student loans, home equity loans, and online banking services.

• Amount: $2,500 to $40,000
• Interest rate: 7.99% to 24.99%
• Type of rate: fixed
• Min. credit score: 660
• Terms: 36 to 84 months
• Collateral needed: no
• Speed: as soon as the next business day

Happy Money

Happy Money is a great personal loan option to consolidate credit card debt. This lender charges origination fees of up to 5%, but they don't have other standard fees.

• Amount: $5,000 to $40,000
• Interest rate: 11.25% to 29.99%
• Type of rate: fixed
• Min. credit score: 640
• Terms: 24 to 60 months
• Collateral needed: no
• Speed: 2 to 5 business days

Best Egg

Best Egg offers low annual interest rates for individuals with a solid credit score. Many use Best Egg loans for personal and business expenses and home improvements.

• Amount: $2,000 to $50,000
• Interest rate: 8.99% to 35.99%
• Type of rate: fixed
• Min. credit score: 600
• Terms: 3 to 5 years
• Collateral needed: they offer secured and unsecured loans
• Speed: 1 to 3 business days

Universal Credit

Universal Credit is a lender that offers personal loans to borrowers with bad credit. You can use their loans for various purposes, such as consolidating debt, making a significant purchase, or covering unexpected expenses.

• Amount: $1,000 to $50,000
• Interest rate: 11.69% to 35.99%
• Type of rate: fixed
• Min. credit score: 580
• Terms: 3 to 5 years
• Collateral needed: no
• Speed: one business day

LendingPoint

LendingPoint is a consumer finance company that provides personal loans and financing solutions for consumers. They consider many data points beyond just credit scores to make lending decisions.

• Amount: $2,000 to $36,500
• Interest rate: 7.99% to 35.99%
• Type of rate: fixed
• Min. credit score: 660
• Terms: 2 to 6 years
• Collateral needed: no
• Speed: one business day

Avant

Avant is a financial technology company that aims to provide borrowing solutions primarily for middle-income consumers. It offers a streamlined online application process and a user-friendly experience.

• Amount: $2,000 to $35,000
• Interest rate: 9.95% to 35.99%
• Type of rate: fixed
• Min. credit score: 580
• Terms: 2 to 5 years
• Collateral needed: no
• Speed: one business day

Prosper

If you need to cover large purchases or consolidate debts, Prosper can be a good option. However, keep in mind that this lender does charge an origination fee, ranging anywhere from 1 to 5% of the total loan amount.

• Amount: $2,000 to $50,000
• Interest rate: 6.99% to 35.99%
• Type of rate: fixed
• Min. credit score: 600
• Terms: 2 to 5 years
• Collateral needed: no
• Speed: one business day

Oportun

Oportun is a great option for borrowers with no credit history or bad credit. This company provides lending services to the Latino community; they accept lenders with no Social Security Number and only an ITIN or Individual Taxpayer Identification Number. This option is excellent for covering unexpected expenses or cash shortages.

• Amount: $300 to $12,000
• Interest rate: 26.86% to 35.95%
• Type of rate: fixed
• Min. credit score: N/A
• Terms: 1 to 5 years
• Collateral needed: you can use a vehicle as collateral in a few states
• Speed: up to 3 days

OneMain Financial

OneMain Financial is another option for those applicants with only an ITIN. It offers personal loans for borrowers with low credit scores. If you need to pay off credit cards or manage business expenses, this institution has a solid history of providing consumer loans.

• Amount: $1,500 to $20,000
• Interest rate: 18.0% to 35.99%
• Type of rate: fixed
• Min. credit score: N/A
• Terms: 2 to 5 years
• Collateral needed: you can use a vehicle as collateral
• Speed: up to 2 business days

Lending Club

Lending Club is a peer-to-peer platform connecting individuals looking to borrow with individuals looking to invest. You can get reasonable terms and conditions even with a low credit score.

• Amount: $1,000 to $40,000
• Interest rate: 9.57% to 35.99%
• Type of rate: fixed
• Min. credit score: 660
• Terms: 3 to 5 years
• Collateral needed: no
• Speed: up to 2 days

#CaminoTip Don't apply for several personal loans at the same time, as this can damage your credit score. It's better to research all the lenders you're interested in and apply only with the one that better fits your needs.

How To Compare And Choose The Best Personal Loans

There are many things to consider when choosing a personal loan. Here are some of the most critical factors:

Loan Amount

Ensure the lender offers the amount you need and that it's affordable for your budget. Remember that lenders limit most loans to around $40,000, with only a few allowing more significant amounts.

Your Credit Score

You should always check your credit score before applying for one of the best personal loans. This will allow you to ensure your score matches the lender's requirements.

You can check your score at AnnualCreditReport.com, where you can review your credit reports from all three major credit bureaus—Equifax, Experian, and TransUnion—at no cost.

The Type Of Credit Inquiry

A soft credit check is a credit inquiry that does not impact your credit score. This is important because you want to avoid any potential negative impacts on your credit score when shopping for a small personal loan.

#CaminoTip Find the right loan for you by considering the maximum loan amount, APR, loan term, and other relevant features.

Repayment Terms

Choose a repayment term that is realistic for your budget and financial goals.

• Shorter terms will have higher monthly payments, but you'll pay less overall interest.
• Longer terms will have lower monthly payments, but you'll pay more overall interest.

Annual Percentage Rates

The annual percentage rate (APR) is the total cost of the loan, expressed as a percentage of the total loan amount. The lower the APR, the less you will pay in interest over the life of the loan.

The Additional Fees

Many lenders charge origination fees, prepayment penalties, late fees, and other hidden charges. By understanding all of them, you'll get an accurate comparison of the cost of the loans.

Your Needs

Remember, the most critical factor is finding a loan that meets your needs and fits your budget. The best way to get a personal loan is to compare the different options and find the one that best suits your needs. Personal loans are available from banks, credit unions, and online lenders. You should also consider each option's interest rates, repayment terms, and fees.

The Lender's Reputation

You want to trust it with a reputable institution. Dive into:

• Customer Reviews. Look for patterns in feedback. Is there a recurring issue mentioned by multiple customers?
• Regulatory Standing. Ensure the lender isn't embroiled in legal troubles or regulatory sanctions.
• History. A long-standing history in the industry can be a sign of reliability and stability.

The Lender's Customer Support

This aspect is often overlooked, but it's pivotal. When dealing with finances, questions or issues can arise. Assess:

• Response Time. How quickly does the lender's customer support team address concerns or queries?
• Communication Channels. Do they offer support through multiple avenues like email, phone, live chat, or physical branches?
• Quality Of Assistance. Are the support representatives knowledgeable and helpful?

#CaminoTip When you’re ready to apply for a personal loan, be sure to compare offers from multiple lenders to ensure you’re getting the best deal possible.

How To Get A Personal Loan

Most Common Requirements

• Age. Most lenders require borrowers to be at least 18 years old.
• Proof Of Income. Lenders will also want to see that you have a steady income to ensure you can repay the loan. This can be in the form of recent pay stubs, tax returns, or even an employment letter.
• Credit History. Your credit score speaks volumes about your financial behavior. A higher score generally translates to better loan terms and interest rates. Some lenders might cater to those with low scores, but the terms might not be as favorable.
• Employment Status. Stable employment is a big thumbs up in the lender's eyes. Some might ask for an employment verification letter or even contact your employer.
• Residency. Lenders often want to verify that you're a legal resident through a utility bill, lease agreement, or other official documents.
• Debt-To-Income Ratio. This ratio measures your monthly debt against your monthly income. A lower ratio indicates you're not drowning in debt, making you a more appealing borrower.
  • Ideally, your DTI ratio should be below 36%. This means that no more than 36% of your income should pay monthly debts.
• Purpose Of The Loan. While personal loans are versatile, some lenders might ask for the intended use.
• Proof Of collateral. This could be a vehicle or other asset the lender can hold onto if you default on your loan. This only applies to secured loans.

How To Apply

There are a few things to keep in mind when applying for a personal loan, such as:

1. Check Your Credit Report And Score. This will give you an idea of where you stand and whether the lender will approve you.
2. Know How Much Money You Need To Borrow. This will help you narrow down your options and ensure that you don't end up with a loan that's too small or too large for your needs.
3. Research. Start by doing your homework. Shop around, investigate different lenders, and compare their interest rates, terms, and reviews.
4. Choose The Right Type Of Loan. Select the type of loan that suits your needs. This decision often hinges on factors like loan amount, intended use, and repayment duration.
5. Gather The Necessary Documents. Lenders typically ask for proof of income, a valid ID, and employment verification. Having these ready will speed up the application process.
6. Submit Your Application. Whether online or in-person, fill out the application form, ensuring all the details are accurate. This is when lenders evaluate your creditworthiness.
7. Wait For Approval. Once you've hit 'submit,' the waiting game begins. Some online lenders might make instant decisions, while traditional banks might take longer.
8. Review And Accept. If approved, the lender will present the loan's terms and conditions. Go through these meticulously, ensuring you're comfortable with the interest rates, monthly repayments, and other fees.

How To Increase Your Chances Of Getting Approved: 7 Tips

1. Avoid Multiple Applications. Making several loan applications in a short span can alarm lenders. It might make you seem desperate. Keep your focus. Pick a lender that aligns with your needs and give it your best shot.
2. Have Steady Employment. Job stability counts. Lenders love borrowers with a consistent income because, let's face it, it assures them that you can pay it back.
3. Limit Existing Debt. Lenders want to see that you can handle the loan, so ensure your existing debt is manageable. A low debt-to-income ratio is your golden ticket.
4. Provide Accurate Information. Ensure all your application details are accurate and up-to-date. Lenders have ways of cross-checking, and discrepancies can flag you as a risk. Double-check your application and make it shine with the truth.
5. Be Smart With Loan Amount Requests. Request a loan amount that aligns with your income and credit history. Give the lender the confidence that you can repay without stretching yourself too thin.
6. Consider A Co-signer. If your credit history is rocky, a co-signer with a strong credit profile can vouch for you.
7. Establish A Relationship With Your Lender. If you've been banking with an institution for years, they already know you. They've seen your financial behavior. So, consider approaching them first for your loan. Familiarity can breed trust.

Personal Loan Average Interest Rates And Terms

The cost of a personal loan depends on several factors, including the loan amount, the interest rate, and the loan term. The average interest rate for a personal loan is about 10%, but it can range from 7% to 36%, or sometimes more. Here are average personal loan rates by credit rating:

• Excellent credit (740+): 5.8% to 15.9%
• Good credit (670-739): 8.5% to 19.9%
• Fair credit (580-669): 13.3% to 32.2%
• Poor credit (579 and below): 17.4% to 35.0%

#DidYouKnow The loan term also affects the cost–loans with shorter terms usually have lower interest rates but require higher monthly payments.

The average personal loan term in the US is 36 months. However, personal loan terms can range from 24 months to 60 months. Here is a breakdown of the average personal loan terms by credit score:

• Excellent credit (740+): 24 months
• Good credit (670-739): 36 months
• Fair credit (580-669): 48 months
• Bad credit (579 and below): 60 months

What Can You Use Personal Loans For?

Here are some of the most common reasons people use personal loans:

• Debt Consolidation. If you have multiple debts with high-interest rates, you might want to consolidate them into one loan with a lower interest rate. It allows you to save money on interest payments and help you pay off your debt faster.
• Large Purchases. A personal loan can be a good option if you don't have the cash on hand to finance a big purchase, such as a new car.
• Home Improvement. If you need to repair or renovate your home, a personal loan can help you finance those expenses.
• Medical Expenses. If you have medical bills or need to pay for elective procedures not covered by insurance, a personal loan can help cover the costs.
• Moving Expenses. If you're moving and need to cover the cost of movers, storage, or other expenses, a personal loan can help.
• Wedding Expenses. Weddings can be expensive, and if you don't have enough saved, a personal loan can help you pay for the ceremony, reception, or other expenses.
• Educational Expenses. If you need to pay for tuition, textbooks, or other educational expenses, a personal loan can help cover the costs.
• Unexpected Expenses. Emergency expenses can strike anytime and often when we least expect it. Whether it's a medical bill, a car repair, or something else, these expenses can quickly add up and become difficult to manage. A personal loan can help you cover these costs.
• Business Expenses. In some cases, entrepreneurs may use personal loans for business purposes, usually when they are just starting their businesses or when they can meet commercial loan requirements. Some examples of ways they use loans are:
  • investing in new equipment or inventory
  • covering unexpected costs
  • financeing expansion plans
  • hiring additional staff

Apply For A Business Loan!

Personal Loans 101: Everything You Need To Know

What Is A Personal Loan?

A personal loan is a financial agreement where you borrow money from a financial institution and promise to pay it back with interest. Unlike mortgages or auto loans tied to specific purchases, you can use personal loans for practically any purpose.

How Do Personal Loans Work?

When you borrow money through a personal loan, you don't just repay the amount you borrowed. In addition to the principal (the initial amount you borrowed), you'll also pay interest. This interest is essentially the cost of borrowing the money. Here's a quick overview of how they work:

1. Application. You submit an application detailing your financial situation, typically including factors like credit score, income, and existing debts.
2. Approval. The lender reviews your details and decides on the loan amount and the interest rate they're willing to offer.
   • If you're denied, there won't be any retroactive interest fees charged, and the lender will let you know why they rejected you.
3. Terms And Conditions. Once you're approved, you'll agree to the loan's terms. This agreement outlines your repayment duration, monthly installment amount, interest rate, and other essential details.
4. Disbursement. Upon agreement, the lender deposits the loan amount into your account.
5. Repayment. You begin your monthly repayments based on the agreed terms. Timely repayments can help improve your credit score, while missed payments can negatively impact it.

#DidYouKnow Personal loans are a great way to get the funds you need for a major purchase or to consolidate debt.

Pros And Cons Of Personal Loans

Pros:

• Flexibility. You can use the personal loan funds for a variety of purposes. Unlike auto loans or mortgages, personal loans don't restrict how you use the funds.
• Fixed Interest Rates. Many personal loans offer fixed interest rates, which means your monthly payments remain consistent throughout the loan term. This predictability can make budgeting a breeze.
• Potential For Competitive Rates. With a good credit score, you can secure small personal loans at interest rates lower than those of credit cards or payday loans.
• Quick Approval. Especially with online lenders, the approval process can be swift, getting you the funds you need in short order.
• Fewer Requirements. At least compared with other types of products, like business loans and mortgages, the requirements are less stringent.

Cons:

• Interest Rates Can Be High. If your credit isn't in the best shape, you might face steep interest rates, making the loan more expensive in the long run.
• Potential For Additional Fees. Some lenders tack on origination fees, late payment penalties, or prepayment charges, which can increase the cost of borrowing.
• Risk Of Over-Borrowing. The allure of readily available cash can tempt some individuals to borrow more than they need or can afford to repay.
• Impact On Credit Score. Missing payments can negatively affect your credit score. Conversely, timely repayments can bolster it.
• Not Always The Best Financial Solution. Depending on the situation, alternatives like a home equity line of credit (HELOC) or credit card balance transfers might be more cost-effective.

#CaminoTip Before taking out a loan, understand the terms and conditions to make the best decision for your financial success.

Types Of Personal Loans

• Unsecured Personal Loans. They don't require collateral, but lenders often rely heavily on your credit score to determine eligibility and rates. These can be good if you have a strong credit history.
• Secured Personal Loans. These loans do require collateral. If you default, the lender can seize whatever asset you put up. However, they often come with lower interest rates since the lender has that added security.
• Fixed-Rate Loans. Your interest rate stays constant throughout the life of the loan. It's predictable, and you won't have any unpleasant surprises if market rates fluctuate.
• Variable-Rate Loans. Linked to a benchmark rate, these can fluctuate over time. They might start lower than fixed rates, but there's the risk they could rise. It's essential to prepare yourself for varying monthly payments.
• Debt Consolidation Loans. If you're drowning in multiple debts, this type could be your lifebuoy. It allows you to consolidate various dues into one monthly payment, often at a lower interest rate.
• Co-Sign Loans. Do you have a bad credit score? No worries. You can still secure a loan with a co-signer with a better financial standing. But remember, if you default, you and your co-signer are on the hook.

Where Can You Get One? Types Of Personal Loan Lenders

• Traditional Banks. These are your established institutions, often with physical branches. They offer reliability but may have stringent requirements.
• Credit Unions. Operated as non-profits, they can offer better rates than banks. However, you typically need to be a member to access their loans.
• Online Lenders. These digital platforms often simplify the loan application process and provide quicker approvals and disbursements.
• Alternative Lenders. These non-traditional lenders might consider other factors beyond your credit score. They could evaluate your job history, educational background, or social media activity. Examples are peer-to-peer (P2P) platforms and payday lenders.

Lending Terms You Should Know

• Interest Rates. Interest rates are the percentages charged on a principal amount lent or borrowed, representing the cost of borrowing.
  • Fixed interest rates remain the same for the life of your loan, so you'll always know how much your monthly payments will be.
  • Variable interest rates, on the other hand, can fluctuate over time, meaning your monthly payments could go up or down.
• Origination Fee. An origination fee is a one-time charge assessed when you take out a loan. It's typically a percentage of your loan amount and can vary depending on the lender.
• Prepayment Penalty. A prepayment penalty is a fee that some lenders charge if you pay off your loan early. If you find a better interest rate elsewhere or simply want to save on interest by paying off your loan sooner, the lender may penalize you.
• Late Payment Fee. The lender may charge you a late payment fee if you pay late on your loan. This fee is typically a percentage of your unpaid balance and can vary depending on the lender.
• Minimum Monthly Payment. Most personal loans have a minimum monthly payment, the smallest amount you must pay. This is typically a percentage of your loan balance and can vary depending on the lender.
• Grace Period. A grace period is your time before your first payment is due. This can be helpful if you need extra time to get your finances in order before making your first payment.
• Collateral. Collateral is something of value that you pledge to secure a loan. If you default on your loan, the lender can seize your collateral to recoup their losses. Many personal loans don't require collateral, but some do.

Is It A Good Idea To Get A Personal Loan?

Personal loans could be a great tool to finance your personal needs.

You see, debt is not always bad.

When debt allows you to accomplish your goals and doesn't hurt your finances, it's a great idea to acquire debt (in the form of a personal loan or a credit card, for example). It all depends on what you plan to do with the loan and if it will have a good ROI (Return On Investment). You also need to make sure that the loan has fair interest rates. If you have an excellent personal credit score, you might be able to get better terms and, therefore, cheaper loans. However, if you need a loan for business purposes, it's best to explore business loan options instead of using a personal loan. Business loans often have better terms and interest rates, specifically designed to help with business expenses. So, before applying for a personal loan, consider whether it's the best option for your financial needs.

Get The Capital You Need For Your Business

At Camino Financial, we focus on helping you access affordable capital for your business through excellent financial solutions. Camino Financial has fewer qualification requirements for those who cannot obtain funding from traditional banks.

We offer competitive rates and terms, and the paperwork required during the process is minimal.

When you apply with us, we'll ensure to offer the loan that will best help. We'll also guide you throughout the process. You can complete the application for one of our business loans within a few minutes! Apply For A Business Loan!