The best origination fee for a personal loan is none at all. If you must pay an origination fee, then you will want to aim for one that’s between 1% and 5%. Whether this is possible, however, depends on your credit profile.
| Lender | User ratings | Best for… | APR range | Loan terms | Loan amounts | Credit score required | |
|---|---|---|---|---|---|---|---|
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | No-fee loans for superior borrower experience | 7.99% to 24.99% | 36 to 84 months | $2,500 to $40,000 | 720 | See Personalized Results |
 | User reviews coming soon | No-fee loans for fair credit | Starting at 8.94% | 24 to 84 months | $500 to $50,000 | Not specified | See Personalized Results |
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Large no-fee loans | 6.99% to 25.49% (with autopay) | 24 to 84 months | $5,000 to $100,000 | Not specified | See Personalized Results |
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | No-fee loans for excellent credit | 7.99% to 17.99% | 12 to 60 months | $600 to $50,000 | 760 | See Personalized Results |
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | No-fee loans with interest rate discounts | 8.99% to 29.99% (with discounts)* | 24 to 84 months | $5,000 to $100,000 | 680 | See Personalized Results |
| APR range | 7.99% to 24.99% |
| Loan terms | 36 to 84 months |
| Loan amounts | $2,500 to $40,000 |
| Minimum credit score | 720 |
| Pros | Cons |
|---|---|
Multiple repayment assistance options Extended customer service hours Can pay creditors directly | $39 late payment fee No joint loans High minimum credit score requirement |
LendingTree users have given Discover personal loans a nearly perfect score, with 4.9 stars out of 5. Furthermore, Discover has three repayment assistance options, which might come in handy in case of financial hardship. Its customer service department is also open seven days a week.
As long as you make on-time payments, Discover personal loans come with no fees. But if you pay late, Discover may charge you an extra $39.
Read our full Discover personal loan review.
Discover’s personal loan requirements are transparent. To be eligible, you must:
Additionally, Discover will review your credit history, recent inquiries and other information reported by the credit bureaus.
| APR range | Starting at 8.94% |
| Loan terms | 24 to 84 months |
| Loan amounts | $500 to $50,000 |
| Minimum credit score | Not specified |
| Pros | Cons |
|---|---|
Competitive APRs Able to add a cosigner Low minimum loan amount | Must join credit union to borrow Vague eligibility requirements Charges a late payment fee |
Although First Technology Federal Credit Union doesn’t list its borrower requirements, it advertises that you don’t necessarily need perfect credit to take out a loan. You can check your eligibility by prequalifying. You could also add a cosigner to boost your personal loan approval odds.
Like all credit union personal loans, First Tech requires that you become a member before you can borrow. And while it doesn’t charge an origination fee, First Tech does charge an undisclosed amount for late payments.
Before you can join First Tech, you must meet its eligibility requirements. You can become a member if:
First Tech will ask for your employment information during the loan application process. It will use this (and other aspects of your credit history) to help determine if you can pay back your loan.
| APR range | 6.99% to 25.49% (with autopay) |
| Loan terms | 24 to 84 months |
| Loan amounts | $5,000 to $100,000 |
| Minimum credit score | Not specified |
| Pros | Cons |
|---|---|
Large loans with long repayment terms Offers a satisfaction guarantee and rate matching No late payment fees | Not available if you have bad credit High minimum loan amount Cannot prequalify for personal loan |
Since you have to borrow a minimum of $5,000, LightStream could be best if you’re looking for a large loan. Home improvement loans also have the option of an extended 144-month term (one of the longest on the market). LightStream also doesn’t charge a late payment fee like some lenders, making it truly a no-fee loan.
If you have less-than-stellar credit, you’ll probably need to look elsewhere. LightStream doesn’t disclose its exact requirements, but it only approves borrowers with good to excellent credit. It doesn’t offer prequalification, either.
Read our full LightStream personal loan review.
LightStream looks at your FICO score during the review process. It also favors applicants who have:
| APR range | 7.99% to 17.99% |
| Loan terms | 12 to 60 months |
| Loan amounts | $600 to $50,000 |
| Minimum credit score | 760 |
| Pros | Cons |
|---|---|
Low minimum loan amount Can customize your monthly payment Joint personal loans available | Must join credit union Cannot pay creditors directly $29 late payment fee |
PenFed’s personal loans may be worth looking into, as long as you’re willing to join a credit union and you have the credit score to qualify. If you’re eligible, you could enjoy low average APRs as well as flexible loan terms and amounts. PenFed Credit Union also offers exclusive member discounts on insurance, home security systems, rental cars and more.
PenFed charges a $29 fee if your payment is more than five days late. It also won’t pay your creditors directly, which could be inconvenient if you need a debt consolidation loan.
Read our full PenFed personal loan review.
You must join PenFed to take out a personal loan, but membership is open to everyone. All you have to do is open a savings account and deposit at least $5.
Regarding your credit, PenFed doesn’t release much information about its minimum borrower requirements. It may review your pay stubs, bank statements or tax returns to verify your income. It will also pull your credit report when you formally apply.
| APR range | 8.99% to 29.99% (with discounts)* |
| Loan terms | 24 to 84 months |
| Loan amounts | $5,000 to $100,000 |
| Minimum credit score | 680 |
| Pros | Cons |
|---|---|
APR discounts for autopay and direct deposit No late payment fees | High minimum loan amount May need to pay an optional origination fee for the lowest APRs Must have good credit or better |
SoFi offers a 0.25% interest rate discount for signing up for autopay and a 0.25% interest rate discount for using direct deposit with an eligible SoFi account.
While not required, you can opt to pay an origination fee to get SoFi’s lowest APRs. Keep this extra expense in mind when you’re comparing rates between lenders.
Read our full SoFi personal loan review.
You could be eligible for a SoFi personal loan if you:
A personal loan provides a lump sum of funds that you can use for almost anything. Some lenders will charge an origination fee during the process.
Generally, an origination fee is a percentage of your total loan amount. Origination fees typically range from 1% to 6%, although some can exceed 10%. If your lender charges an origination fee, it will usually be deducted from the proceeds of your loan or rolled into your loan balance.
While origination fees are referred to as “upfront fees,” you don’t typically have to pay them out of pocket before you get your loan.
Imagine that a lender approves you for a $50,000 personal loan that has a 5% origination fee. That means you will receive $47,500 (assuming your loan doesn’t have any other upfront fees).
To break it down, your origination fee would be $2,500 (or, 5% of $50,000). Thus, $50,000 minus your origination fee of $2,500 equals a loan disbursement of $47,500.
Applying for a no-fee loan follows the same general process as other types of personal loans.
Before you apply for a personal loan, ask yourself two questions: Do I need to borrow this money, and will I be able to pay back what I owe?
Instead of taking out a loan, perhaps you can earn extra cash by taking on overtime hours or starting a side hustle. Loans can be a lifesaver, but they cost money, thanks to interest and fees.
If a loan is your best option, you should make sure you can fit repayment into your budget. Use our personal loan calculator to get an idea of how much your loan will cost per month. Also, be sure not to overborrow so you can avoid driving yourself into more debt than necessary.
Forgoing an origination fee might not be a realistic goal if you don’t have good credit. In fact, it can be hard to meet personal loan requirements at all if your score is low enough. As a general rule, you might be required to have a credit score of at least 640 to qualify for affordable loan terms.
Before you apply for a loan, use LendingTree Spring to check your credit score for free. We’ll also alert you if we detect any changes in your credit report.
If you have a strong credit profile, you may want to seek out lenders that advertise no-fee loans. That way, you know there’s no chance of an origination fee.
Once you have a pool of potential lenders, it’s time to prequalify. Prequalification doesn’t guarantee you’ll be approved, but it will help you see what loan terms you could qualify for. Here, the lender will ask for some basic information such as your name, job status and annual income. It will also probably conduct a soft credit pull.
Because every lender has its own way of determining creditworthiness, APRs can vary widely from company to company. Comparing multiple offers can help ensure that the loan you accept is competitive.
Pay special attention to APRs — the lower the percentage, the less expensive your loan. You may also want to read customer reviews, look over the lender’s funding timeline and make sure the lender offers a loan size that meets your needs.
When you’ve picked out the best loan for your needs, you can formally apply.
The application process varies by lender, but it’s not too different from prequalification. You will, however, need to provide more detailed information about yourself and your finances. The lender may also ask you to send proof of income, such as pay stubs, bank statements or W-2s.
Some lenders can send you your loan the same day you apply. With others, you may need to wait a few days or even a week.
When you accept your loan, the lender will ask you how you’d like to receive your funds. Direct deposit is a popular choice. If you’re consolidating debt, some lenders make it easy by sending funds directly to your creditors.
Your first loan payment is usually due 30 to 45 days after your loan is disbursed, but check your repayment schedule for specifics.
The best origination fee for a personal loan is none at all. If you must pay an origination fee, then you will want to aim for one that’s between 1% and 5%. Whether this is possible, however, depends on your credit profile.
No. Even if you have bad or fair credit, you should avoid upfront (or, in this context, out-of-pocket) fees when taking out a personal loan. Personal loans that charge out-of-pocket fees could be a sign of predatory lending.
Maybe. Some lenders — SoFi, for instance — may allow you to opt in for an origination fee in exchange for a lower APR. Also, if you have excellent credit, your lender might remove its origination fee if you ask.