Best Personal Loans Of May 2023
Best Personal Loans & Current Rates of May 2023
- SoFi – Best Overall Personal Loan
- Smart Money Capital – Best for Low-Interest Rates
- LendingPoint– Best for Fast Funding & Below-Average Credit
- Upgrade – Best for Bad Credit
- Universal Credit – Best for Comparing Multiple Offers
- Discover– Best for No Interest, If Repaid Within 30 Days
- Upstart – Best for Loans as Low as $1,000
- Avant – Best for a Range of Repayment Terms
SoFi
ScoreSoFi
Scorewith autopay
SoFi is a website where you can borrow money online. They offer personal loans that don’t require any collateral and have a fixed interest rate. You can get these loans in any state in the US. SoFi started in 2011 and has given out more than $50 billion in loans. One thing that makes SoFi different is that they let you borrow large amounts of money and choose how long you want to take to pay it back.
You can borrow between $5,000 and $100,000 from SoFi. This is good if you have a good credit score and need a lot of money. The amount you can borrow might be different depending on where you live. You can take two to seven years to pay back the loan, which is helpful if you have a good credit score (at least 650) and make enough money each year (at least $45,000). SoFi also lets people apply for loans together, but they don’t allow co-signers.
If SoFi approves you for a loan, you will have a low interest rate compared to other lenders. Also, SoFi doesn’t charge any extra fees when you get the loan or if you pay it back early. Many other lenders have fees like this.
But if you want to use a SoFi loan to pay off your other debts, there’s something to keep in mind. SoFi won’t send the money directly to your other creditors. Instead, they’ll put the money in your bank account and you’ll have to pay off your other lenders by yourself. But SoFi does have some other good things for customers, like protection if you lose your job and the ability to change your payment due date once a year.
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Eligibility: To apply for a personal loan with SoFi, you need to have a credit score of at least 650. It’s even better if your score is 700 or higher. You also need to have a yearly income of at least $45,000, but most SoFi borrowers make over $100,000.
Loan uses: SoFi personal loans are meant for personal, family, and household expenses. This means you can use the money to pay for things like medical bills, combining your credit card debts, making home improvements, or covering moving costs. However, you can’t use a SoFi loan to start a new business, buy real estate, invest in stocks, pay for college, or get short-term financing.
Turnaround time: After you get approved and accept the loan terms, you usually receive the money within a few days—sometimes even the next business day. However, if you’re borrowing more than $20,000, it might take longer to get the funds.
Smart Money Capital
ScoreSmart Money Capital
ScoreSmart Money Capital provides unsecured personal loans ranging from $5,000 to $250,000, depending on the loan purpose. They offer a wide range of loan amounts, with a higher maximum loan than many other lenders. You can choose repayment terms of two to seven years, which is great if you prefer to spread out large expenses over time.
What sets Smart Money Capital apart is that they don’t charge origination, late payment, or prepayment fees. They also offer a 0.50% rate discount for borrowers who enroll in autopay, which is higher than what most lenders offer. Additionally, they have a 30-day loan experience guarantee, Covid-19/hardship assistance, and a rate-beat program. If you meet certain criteria, they will beat a competitor’s interest rate by 0.1%.
Smart Money Capital operates in all 50 states, Washington, D.C., and Puerto Rico. Their customer support team is available seven days a week for applicants, and current borrowers can reach them from Monday through Friday. Although they don’t have a mobile app, you can access your account through their website, smartmoneycapital.com.
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Eligibility: Smart Money Capital prefers applicants with good to excellent credit, a few years of credit history, and a stable income. It’s more suitable for those with strong credit and offers better terms to applicants with excellent credit. Co-signers are not allowed, but joint applications are accepted.
Loan uses: Smart Money Capital’s personal loans can be used for various purposes, including buying a car, RV, jewelry, or making home improvements. What sets them apart is that they also finance land, timeshares, and “tiny homes.” However, they do not allow loans for education, business purposes, illegal activities, or refinancing an existing loan with them.
Turnaround time: If approved before 2:30 p.m. Eastern time on a banking business day, borrowers can receive funds the same day. To qualify for same-day funding, applicants must review and sign the loan agreement, provide banking details, and complete the final verification process before 2:30 p.m. on the approval day.
LendingPoint
ScoreLendingPoint
ScoreLendingPoint is a company that lends money online to people in most states, except Nevada and West Virginia. You can apply for a loan on their website, and they give you the money quickly if you get approved.
With LendingPoint, you can borrow between $2,000 and $36,500 for personal expenses. In Georgia, the minimum loan amount is $3,500. You have two to five years to pay back the loan, which is between 24 and 60 months.
There are two things to be careful about with LendingPoint. First, they have high interest rates, but if you have a good credit score, you might be able to get a lower rate. Second, they charge a fee when you get the loan, and the amount depends on where you live. It can be anywhere from 0% to 6% of the loan amount.
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Eligibility: If you want to get a personal loan from LendingPoint, you need to have a credit score of at least 600. You can apply if you live in one of the 48 states in the U.S. or in Washington D.C. However, if you’re in Nevada or West Virginia, you can’t get a loan from them.
Turnaround time: If LendingPoint approves your loan, you might get the money in your bank account as quickly as the next business day.
Upgrade
ScoreUpgrade
ScoreUpgrade is an online and mobile service that started in 2017. They provide credit and banking services to people. So far, they have given more than $3 billion in credit to over 10 million applicants. They keep growing and adding more online and mobile services. Even if you have a bad credit history, Upgrade is willing to lend you money, but the interest rates can be high compared to other online lenders.
You can borrow as little as $1,000 and as much as $50,000 from Upgrade. You can choose to pay back the loan in two to seven years. When you get the loan, Upgrade charges a fee between 1.85% and 9.99% of the loan amount. If you don’t pay on time or the payment doesn’t go through, they will charge you a $10 fee. There are no discounts for automatic payments. However, if you can pay off the loan early, Upgrade won’t charge you any extra fees, so you can save money.
Besides personal loans, Upgrade has a mobile app that makes it easy for borrowers to check their balance, make payments, and update their personal information. They also have a tool called Credit Heath that helps you keep track of your credit score while you have the loan.
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Eligibility: To qualify for an Upgrade personal loan, you need a minimum credit score of 580 (the average score is 697). It’s a good option for people with fair credit. You don’t need a minimum income requirement, but most borrowers make around $95,000 per year on average. Your pre-loan debt-to-income ratio (excluding your mortgage) should be no more than 45%. They also consider your free cash flow, which means you should have at least $800 of extra money each month.
Upgrade allows co-applicants, which can make it easier to get a loan.
Loan uses: Like most personal loans, you can use the money from Upgrade to pay off credit cards, combine other debts, make home improvements, or buy big things. What makes Upgrade different is that they also let you use the loan for business expenses. They can even directly pay off your other loans, which makes it more convenient to consolidate debt compared to other lenders. There are no specific restrictions on how you can use the loan, as long as it’s legal.
Turnaround time: Once your Upgrade loan gets approved, it usually takes up to four business days to get the money. But if they’re paying off your loans to other lenders, it can take up to two weeks for the money to go through.
Universal Credit
ScoreUniversal Credit
ScoreUniversal Credit is an online lending platform that collaborates with its partners to offer personal loans ranging from $1,000 to $50,000. The repayment period for these loans spans from 36 to 60 months, equivalent to three to five years.
Although Universal Credit provides access to personal loans for individuals with impaired credit, it does involve certain tradeoffs. Firstly, it imposes high Annual Percentage Rates (APRs) that surpass the most competitive rates found on our list. Secondly, Universal Credit levies an origination fee ranging from 5.25% to 9.99% on all personal loans. Since this fee is deducted from the loan amount disbursed to you, it is essential to factor it in when determining the loan amount required to ensure you receive the necessary funds accordingly.
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Eligibility: Universal Credit accommodates a broad range of borrowers, with a minimum credit score requirement of 580, ensuring accessibility to many individuals.
Turnaround time: Upon approval, Universal Credit aims to transfer your funds to your bank account within one business day. However, the actual availability of the funds is contingent on your bank’s processing speed. If you intend to use the funds for directly paying off another creditor, it may take up to two weeks for the transaction to be completed.
Discover
ScoreDiscover
ScoreDiscover is an online bank that offers credit cards, retirement options, and personal loans in all 50 states. What makes Discover special is their easy online application and mobile banking tools. They have a helpful customer support team and provide quick funding for loans.
Generally, you can borrow from $2,500 to $40,000 from Discover, and you have three to seven years to pay it back. While some other lenders might offer larger loans, Discover gives you more flexibility with the repayment terms. They charge a fee if you pay late and don’t offer a discount for automatic payments. However, they don’t charge any fees for starting the loan or for paying it off early, which makes them competitive with other top lenders.
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Eligibility: To get a personal loan from Discover, you need a minimum credit score of 660, but most borrowers have a score of around 750. They don’t have a requirement for how long your credit history should be. You also need to show that your household earns at least $25,000 per year, although they don’t disclose the average income of their borrowers. Discover looks at your credit history, recent credit activity, and other credit inquiries. You can’t have a co-signer or co-applicant for the loan.
Loan uses: You can use a Discover personal loan for things like unexpected expenses, medical bills, adoption or fertility costs, car repairs, or emergencies involving your pets. Unlike some other lenders, Discover also allows you to use the loan for small-business expenses. However, you can’t use it for college expenses, paying off a secured loan, or anything illegal.
Turnaround time: Usually, you’ll find out if you’re approved for a Discover loan on the same day you apply. If you get approved, they might send the money to you as quickly as the next business day, as long as you applied on a weekday and there are no mistakes in your application. Otherwise, it could take up to seven days to receive the funds. If you’re using the loan to consolidate debt, Discover can send the money directly to your other creditors.
Upstart
ScoreUpstart
ScoreUpstart is a personal loan provider that uses artificial intelligence and machine learning to evaluate borrowers. Their unique approach allows them to approve more borrowers compared to traditional lenders. While Upstart offers competitive interest rates, it may not be the best option for those who qualify for even better rates. However, they have a minimum credit score requirement of 600, which makes it accessible for people with fair credit.
Upstart provides flexibility in loan amounts, starting from as low as $1,000, so you can borrow only what you need and avoid paying unnecessary interest. Although their maximum loan amount is $50,000, which is lower than some other lenders, it should still be sufficient for many borrowers.
The loan terms offered by Upstart are three to five years, which is slightly more limited compared to other lenders. However, this tradeoff may be acceptable for applicants who might not get approved by traditional lenders. Upstart operates in all states except for West Virginia and Iowa, so it’s widely available just like other top lenders.
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Eligibility: Upstart is different because it uses artificial intelligence to consider various factors when reviewing loan applications. While they mention a minimum credit score of 600, they may also consider applicants without a credit score. Upstart looks at things like education, work history, where you live, how much you owe, any past bankruptcies or late payments, and the number of times you’ve applied for credit.
Borrowers need to have a full-time job, a part-time job, or a regular source of income with an annual income of at least $12,000. You can’t have a co-signer or co-applicant.
Loan uses: Upstart’s personal loans can be used for things like consolidating credit card debt, special events, moving expenses, medical or dental bills, and home improvements. What makes them different is that they also allow borrowers to use the loan for educational expenses in most states, except for California, Connecticut, Illinois, Washington, and the District of Columbia.
You can’t use an Upstart loan for illegal activities, buying weapons, firearms, or illegal drugs.
Turnaround time: If your loan is approved before 5 p.m. Eastern time on a business day, Upstart will typically fund it by the next business day. If it’s approved after 5 p.m., you’ll usually receive the funds on the following business day or the day after that. Upstart says that 99% of borrowers receive their money within one business day after accepting their loan terms. However, if the loan is for educational expenses, it may take up to three additional business days after accepting the loan terms.
Avant
ScoreAvant
ScoreAvant is an online lending platform based in Chicago that provides personal loans to middle-income borrowers with fair to good credit. They offer both secured and unsecured loans through a third-party bank called WebBank. Unsecured loans are available in most states except Hawaii, Iowa, New York, Vermont, West Virginia, and Maine. To qualify, you only need a minimum credit score of 580.
While Avant may have lower maximum loan amounts compared to other lenders, they make up for it by offering smaller loans with flexible repayment terms of two to five years. However, it’s important to note that Avant charges an administrative fee of up to 4.75% of the loan amount, and their APR range (9.95% to 35.99%) is higher for borrowers with good to excellent credit scores. There is no autopay discount available. Despite these costs, Avant is a good option for borrowers with less-than-perfect credit who need quick access to funds.
In April 2019, Avant reached a settlement of $3.85 million with the Federal Trade Commission (FTC) due to allegations of unfair practices. The lawsuit claimed that Avant charged customers incorrect fees and interest, and collected payments without authorization or in excess amounts. We attempted to contact Avant for information about their changes since the settlement but did not receive a response. However, it’s worth noting that Avant has a high rating of 4.7 stars on Trustpilot.
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Eligibility: Avant strives to provide credit services to a wide range of customers, including those with fair credit. To qualify, you need a minimum credit score of 580, but most borrowers have scores between 600 and 700. Avant focuses on low- to middle-income borrowers and requires a minimum income of $20,000. However, the average income of their borrowers falls within the range of $40,000 to $100,000.
Avant considers various sources of income, such as employment income, alimony, child support, and the income of other people in your household, to expand eligibility. However, they do not allow co-signers or co-applicants.
Loan uses: Like many other personal loan providers, Avant loans can be used for debt consolidation, medical expenses, auto repairs, home improvements, moving, vacations, and travel. However, they do not allow personal loan funds to be used for business expenses. Existing Avant borrowers have the option to refinance their current Avant loans with a new loan, potentially with a lower APR.
Turnaround time: If you are approved for an unsecured loan by Avant before 4:30 p.m. Central time from Monday to Friday, you may receive your funds on the next business day. However, the actual funding timeline depends on your bank, and secured loans may take longer to process.
Summary: Best Personal Loans of May 2023
| COMPANY | FRESHFICO RATING | CURRENT APR RANGE | LOAN AMOUNTS | LEARN MORE |
|---|---|---|---|---|
 | 4.0 | 8.99% to 23.43% (with autopay) | $5,000 to $100,000 | Compare Rates |
| 4.0 | 5.99% to 24.49% (with autopay)* | $5,000 to $250,000* | Compare Rates |
| 4.0 | 7.99% to 35.99% | $2,000 to $36,500 | Compare Rates |
 | 3.5 | 8.49% to 35.99% | $1,000 to $50,000 | Compare Rates |
 | 3.5 | 11.69% to 35.99% | $1,000 to $50,000 | Compare Rates |
 | 3.5 | 6.99% to 24.99% | $2,500 to $40,000 | Compare Rates |
 | 3.5 | 6.7% to 35.99% | $1,000 to $50,000 | Compare Rates |
| 3.5 | 9.95% to 35.99% | $2,000 to $35,000 | Compare Rates |
*Please note that certain APRs and loan amounts may only be applicable for specific loan purposes.
The information provided about personal loan rates and details is accurate as of May 1, 2023. Although we make regular updates, the annual percentage rates (APRs) and loan details may have changed since the last update. It’s important to remember that some lenders offer specific rates and terms based on the intended purpose of the loan. Before applying, make sure to confirm the available APR ranges and loan details with your lender based on your desired loan purpose.
Methodology
We evaluated 29 well-known lenders using 16 different criteria, including loan details, loan costs, eligibility and accessibility, customer experience, and the application process. Based on the importance assigned to each category, we selected the top 8 lenders.
- Loan cost: 35%
- Eligibility and accessibility: 20%
- Loan details: 20%
- Customer experience: 15%
- Application process: 10%
In each category, we took into account various factors such as loan amounts, repayment terms, APR ranges, and fees. We also considered minimum credit score requirements, the option for co-signers or joint applications, and the lender’s availability in different locations. Additionally, we assessed the customer support tools, borrower benefits, and features that make the borrowing process easier, such as prequalification options and mobile apps.
When necessary, we assigned partial points based on how well a lender met each criterion.
Tips for Comparing Personal Loans
When comparing personal loans, keep these tips in mind:
- Consider prequalification whenever possible. Many personal loan providers offer the option to prequalify, allowing applicants to provide information about their financing needs, income, housing situation, and other relevant details. This helps determine the loan amounts, rates, and repayment terms for which they are likely to qualify. The best part is that prequalification typically only requires a soft credit inquiry, meaning you can explore different options without negatively impacting your credit score.
- Take into account the purpose of your loan. Personal loans have various uses, including debt consolidation, home improvements, vacations, weddings, large purchases, and personal expenses. However, lenders often have restrictions on using personal loans for postsecondary education, business purposes, and illegal activities. Before choosing a lender, ensure that your intended use of the loan aligns with their borrower agreement.
- Watch out for additional fees. Some lenders offer fee-free personal loans, meaning there are no origination fees, late payment fees, prepayment penalties, or other common loan costs. However, this is not always the case, so it’s essential to inquire about fees when comparing loan terms. If a lender does charge an origination fee, find out whether it is included in the APR or deducted from the loan amount before funding. This will impact the loan amount you need to request.
- Evaluate the lender’s customer support options. Before finalizing a loan agreement, consider the customer support provided by the lender. While it may not seem significant initially, good customer support becomes crucial if you encounter payment issues or experience financial hardships during the repayment period. Review the lender’s customer service resources and read reviews from past and current borrowers to ensure they are a suitable choice.
