Best Places To Get a Personal Loan (and Where To Skip)
Asking for the best place to get a personal loan is like asking for the best restaurant. There’s no right answer — everyone’s looking for different things in a lender. The best place to get a personal loan will depend on factors like your credit score and how fast you need the money.
Find out whether an online loan, bank loan or credit union loan is best for you. We’ve also included loans that you should avoid, thanks to high rates and shady practices.
- Online loans can be easier to obtain if you have bad credit, and they can come with low rates if you have excellent credit. These loans usually have the most fees.
- Bank and credit union loans can come with perks like rate discounts for current clients and financial planning services. However, online loans can be faster to secure.
- Avoid loans with interest rates above 36%. Anything higher than that and you might be dealing with a predatory lender.
Best places to get a personal loan
Online personal loans
Pros
- Might qualify with bad or no credit
- Rates as low as 6.49% for excellent credit
- Can get your money the same day that you apply
Cons
- Usually have more fees than banks and credit unions
- Rates can be high if you have bad credit
- No in-person assistance
You might think that online loans are only for people with credit issues — but that’s not true. Some lenders (like LightStream) require good or excellent credit and reward those who qualify with low annual percentage rates (APRs).
That said, some lenders do specialize in lending to people who have bad credit. These loans can be expensive but — as long as you have a payoff plan, they can be a massive help during hard times. A lot of online lenders offer same- and next-day loans, too.
In exchange, many online lenders will typically keep 1% to 10% of your loan amount for itself as an origination fee. On the other hand, banks and credit unions usually offer fee-free personal loans.
| Lender | APR range | Loan amounts | Minimum credit score |
|---|---|---|---|
| Achieve | 8.99% – 29.99% | $5,000 – $50,000 | 640 |
| Best Egg | 6.99% – 35.99% | $2,000 – $50,000 | 700 |
| LightStream | 6.49% – 25.29% (with autopay) | $5,000 – $100,000 | Not specified |
| Upgrade | 7.99% – 35.99% (with discounts) | $1,000 – $50,000 | 580 |
| Upstart | 6.60% – 35.99% | $1,000 – $50,000 | 300 |
Bank personal loans
Pros
- Some banks offer extra discounts to current account holders
- Usually have no origination fees
- May be able to get help face-to-face, depending on how far away you live from a branch
Cons
- Some big banks (like Bank of America and Chase) don’t offer personal loans
- You may need to be an existing client to qualify
- Bank loans are generally harder to qualify for
- Often slower to obtain funding than online loans and may be limited to regular business hours
It might look like bank personal loans are more expensive than online loans — bank loans usually have higher starting APRs. This usually boils down to origination fees.
The low APRs advertised by online lenders assume no fee is charged (if it’s optional) or that you’ll have to pay the lowest possible fee (if it’s required). That can sometimes make the loan seem cheaper on paper. Banks, on the other hand, don’t typically charge origination fees.
You’ll have to see if your bank offers personal loans — not all do. If it does, you might get a discount as an existing account holder. Unlike online loans, you usually need at least good credit to qualify.
| Bank | APR range | Loan amounts | Rate discounts |
|---|---|---|---|
| Citi | 11.49% – 20.49% (with discount) | $2,000 – $30,000 | 0.50% for autopay, and 0.25% for Citigold and Citi Priority customers |
| PNC Bank | 7.89% – 24.74% (with autopay) | $1,000 – $35,000 | 0.25% for autopay (must be from a PNC checking account) |
| U.S. Bank | 7.99% – 24.99% | $1,000 – $50,000 | 0.50% for autopay |
| Wells Fargo Bank | 6.74% – 23.99% (with relationship discount) | $3,000 – $100,000 | 0.25% relationship discount |
Credit union personal loans
Pros
- Federal credit unions can’t charge rates higher than 18%
- Many credit unions offer membership perks, like free financial planning
- Sometimes willing to work with less-than-perfect credit
- Origination fees are rare
Cons
- Have to join the credit union to get a loan
- Some credit unions have strict membership requirements
- Website and mobile app might not be as sleek or highly rated as a bank’s
- May need to be a member for a certain amount of time before you can get a loan
A credit union can be an excellent place to get a personal loan — especially if rates are your primary concern. By law, federal credit union loans rates are capped at 18% until at least March 2026. Not all credit unions are federal, but in general, credit unions tend to offer lower rates.
Credit unions are not-for-profit and member-owned. You have to become a member to borrow money, but credit unions can have easier loan eligibility requirements than banks.
Not all credit unions have open membership — for example, you can only join Navy Federal if you have a military affiliation. All of the credit unions below either have open membership or only require a small donation to join.
| Credit union | APR range | Loan amounts | Loan terms |
|---|---|---|---|
| Connexus Credit Union | 9.99% – 18.24% | $1,000 – $50,000 | 24 to 84 months |
| Consumers Credit Union | 8.99% – 24.79% (with autopay) | Not specified | 36 months |
| First Technology Federal Credit Union | 7.89% – 18.00% | $500 – $50,000 | 6 to 84 months |
| PenFed Credit Union | 8.99% – 17.99% | $600 – $50,000 | 12 to 60 months |
| NASA Federal Credit Union | Starting at 9.49% | $1,000 – $30,000 | Up to 84 months |
Worst places to get a personal loan
In general, avoid personal loans with rates above 36%. Most finance experts agree that anything higher than that could be considered predatory lending.
Some places to skip include:
- Payday lenders: Payday loans typically have interest rates of almost 400% and are due in full the next time you get paid. If you don’t have the money, you might have to roll your old loan over into a new one, starting a cycle of debt.
- Pawn shops: A pawn shop loan requires collateral, like jewelry or electronics. These loans can come with a ton of fees, including an appraisal fee, storage fee and a fee when you pay off your loan.
- Title loan companies: A car title loan uses your car as collateral. Some states cap interest rates, which keeps them in check in some places — but not others. Florida’s max interest rate is 30%, for instance. But these loans are usually due in just 30 days and if you can’t repay the money, you could lose your car.
- High-interest installment lenders: A high-interest installment loan is a bad credit personal loan with outrageous interest. An example are tribal loans — this type of loan can have interest rates higher than even payday loans (think 600%).
How to compare personal loans with LendingTree
Shopping around for a personal loan on LendingTree can save you an average of $1,659 over the life of your loan. Here’s how it works.
- Tell us what you need. Answer basic questions about who you are and how much money you need — we’ll take care of the rest. The process is free, simple and secure, and won’t affect your credit score.
- Shop your offers. We’ll send you offers from up to five trusted lenders. Compare your offers side by side to see which one will save you the most money.
- Get your money. You can choose a lender and finalize your loan quickly. You could see money in your account within 24 hours, depending on the lender you choose.
Personal loan alternatives
Before you apply for a personal loan, see if an alternative might be a better fit.
0% intro APR credit card
Swapping your credit card with a debt consolidation loan can be a great way to save on interest. In the last quarter of 2024, the average personal loan rate for LendingTree users with 720-plus credit scores was 17.71%. Currently, the average credit card APR is about 6.5 percentage points higher, at 24.28%.
Or, you could skip interest altogether by transferring your credit card debt to a 0% intro APR credit card.
These 0% APR cards have an interest-free introductory period that usually lasts six to 21 months. Personal loans give you more time to pay back the money (12 to 84 months, generally), but you’ll pay interest on the full amount you borrow.
Buy now, pay later
Personal loans don’t always make sense for smaller purchases. Most loans start at $1,000, and the interest might not be worth it. Buy now, pay later (BNPL) could be a better strategy. With these options, you might pay 25% down and pay off the rest in three interest-free installments, due over six weeks.
Home equity loan
A home equity loan could make sense for necessities like home improvements. These loans let you borrow from the equity you have accrued in your house.
Personal loans are usually unsecured, meaning they don’t require collateral. A home equity loan uses your house as collateral. Because you’re shouldering some of the risk, interest rates are generally lower than they are on personal loans. But if you can’t keep up with your payments, the lender can foreclose on your house.
Read What Is a Home Equity Loan? Your Guide to When It’s a Good Option for more information.
Frequently asked questions
The best bank to get a personal loan is the one that offers you the lowest rate and best terms for your financial situation. You might want to first check with your current bank — many offer APR discounts if you’re already a client.
Still, shop around with other banks, online lenders and credit unions. Every institution has its own way of calculating rates. You might get a better deal from one than another, even though your information is the same.
When it comes to the best places to get a personal loan, banks and lenders have their own pros and cons. Banks tend to have lower interest rates and fewer fees, but you might get your money quicker from an online lender. You also usually need at least good credit to get a bank loan.
Usually, the fastest way to get a personal loan is to apply for an emergency loan. You could see funds in your bank account the same day that you apply. If you have bad credit, adding a cosigner can speed up the process. The worse your credit, the harder it will be — and the longer it will take — for you to get a personal loan.
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