Where to get low interest loans

The Bottom Line. Best Overall : SoFi. Learn More. Pros Low starting interest rate of 4. Best for Excellent Credit : LightStream. Pros Low starting interest rate of 2.

Cons Tough to qualify without a good to excellent credit score No option to prequalify for a personal loan without hurting your credit score Online-only application.

Pros No fees for loan origination, prepayment, late payments, or other fees Change your payment due date up to three times during the life of your loan On-time payment reward that defers one payment after 12 consecutive on-time payments. Cons Difficult to qualify without a strong credit history Less competitive interest rates for longer-term loans No cosigners allowed.

Pros Low interest rates with a maximum APR of Cons Membership in the credit union required Extra fee for debt protection program Shorter loan terms of up to 60 months. American Express : Best for Debt Consolidation. Pros Competitive interest rates starting as low as 7. Cons Exclusive offer for existing American Express customers No flexibility on payment due date Slow loan funding compared with some competitors.

Best for Fair Credit : Payoff. Cons Not available in all states High minimum loan amount Individual applications only. Best Bank : Wells Fargo. Pros Minimal fees Offers rate discounts Different options to apply for a loan. These options may include: Banks You may apply for a personal loan through a traditional or brick-and-mortar bank.

The Bottom Line A low interest rate personal loan is an excellent way to pay off high-interest debt or pay for home improvements. How We Chose the Best Low Interest Personal Loans Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders for all borrowing needs.

Investopedia is part of the Dotdash publishing family. SoFi Best Overall. The lender will then run a hard credit check, which provides a fuller picture of your credit history. The lender will then determine whether or not to approve your application and, if approved, give you a final interest rate and loan amount. This can happen if the lender finds something through the hard credit check that changes how it views your credit profile.

Different financing options, like personal loans, credit cards and mortgages, can come with varying interest rate ranges. Here are the current average interest rates from commercial banks for the third quarter of for personal loans compared to auto loans and credit cards, according to the Federal Reserve. But that same logic may not apply to a personal loan vs. Scoring a personal loan with low interest rates can save you hundreds — or even thousands — of dollars in interest over the life of your loan.

The more you understand how lenders set interest rates, the easier it can be to qualify for lower interest rates with a lower monthly payment. Image: Young man thinking about a low interest personal loan over a cup of coffee. There are no prepayment penalties. If you have bad credit or are trying to rebuild your credit, LendingClub may not be for you. Impact on borrowers looking for low interest rates: If you can't qualify for the lowest rates on your own, adding a co-borrower with good credit will help your overall credit picture and could net you lower rates.

Overview: Prosper is a peer-to-peer lender with loans available to those with fair to excellent credit. APRs on Prosper loans start at 7. Perks: Prosper offers a simple online application process, and money is available as soon as one day after applicants complete all requirements. What to watch out for: Because Prosper is a peer-to-peer lender, borrowers must wait for investors to fund their loans.

If your loan doesn't receive at least 70 percent funding within 14 days of when you submit your application, you will have to reapply. Impact on borrowers looking for low interest rates: If you don't need to borrow much money and you're confident that you can pay your funds back quickly, Prosper is worth considering.

Its interest rates are higher than those of many of its competitors, but its fees are relatively low. Overview: Upgrade offers personal loans for those with fair credit or better. The funds can be used for debt consolidation, credit card refinancing, home improvements or major purchases. APRs available from Upgrade range from 5. Why Upgrade is the best for fast funding : Upgrade offers a quick application process and provides loan decisions within a few minutes.

Additionally, money is available within as little as one day of completing the verification process. Also, if you use one of its personal loans for debt consolidation , Upgrade gives you the option of having the loan funds sent right to your creditor. What to watch out for: All Upgrade personal loans come with an origination fee of 2. The fee is deducted from your loan funds. Impact on borrowers looking for low interest rates: Borrowers with fair credit may find Upgrade a better alternative to payday lenders , which offer fast loans without a credit check.

Upgrade also offers incredibly fast funding. Overview: Marcus by Goldman Sachs loans are available to those with good to excellent credit and can be used to fund major purchases or pay off credit card debt.

APRs range from 6. Repayment terms are three to six years. Why Marcus by Goldman Sachs is the best for debt consolidation: With a low rate cap and repayment terms that stretch to six years, Marcus could be an affordable way to pay off existing credit card or loan debt.

Perks: There are no sign-up or prepayment fees with Marcus. What to watch out for: Marcus doesn't accept joint applications, so if you need a co-signer to qualify, this may not be a good option for you. Impact on borrowers looking for low interest rates: Marcus specializes in low-interest debt consolidation loans , and its terms are relatively flexible for borrowers looking for low rates. Overview: TD Bank offers personal loans to those with good credit and those trying to establish credit.

Funds can be used for debt consolidation, vacations, renovations and more. Why TD Bank is the best for low fees: Borrowers looking for low interest rates can also save on fees with TD Bank — it doesn't charge origination, application, prepayment or non-sufficient funds NSF fees. Perks: Personal loan funds from TD Bank can be available in as little as one business day.

What to watch out for: TD Bank is a full-service bank, which means its loans may be best-suited for those who plan to do all their banking here. Low-interest-rate personal loans typically have an annual percentage rate APR below 12 percent.

Personal loans are generally short-term loans provided by banks, peer-to-peer lending platforms and credit unions. Depending on who the money is borrowed from, the proceeds can be used for consolidating credit card debt, making a major purchase or even taking a vacation.

These are installment loans , and the money is repaid via monthly payments. Lenders view applicants who have low DTI ratios as more reliable borrowers.

Every lender uses its own algorithm to determine the interest rate you'll receive. Three of the most important factors lenders evaluate are credit score, debt-to-income ratio and annual income. The lower your DTI and the higher your income and credit score, the more likely you are to qualify for low rates and large loan amounts. Outside of these factors, some lenders also take into account things like your area of study, length of time with your most recent employer, job history and education.

This is why it's so important to shop around and compare rates with multiple lenders. Those with the highest credit scores, to , may be offered rates between In response to the impacts of COVID, some banks and online lenders have introduced new loan offerings to help Americans experiencing financial distress.

In particular, some institutions are offering coronavirus hardship loans to help those who have lost their income or job as a result of the pandemic.

These loans often include low- or no-interest periods, as well as deferment options and flexible repayment plans. And if you need help paying for an existing personal loan, many lenders are also providing loan relief programs and reduced fees. Comparing loan rates and lenders can be a daunting task, but it's necessary if you want to find the lowest interest rate possible.

Because lenders use their own algorithms to determine interest rates, the same financial profile could get you a much lower rate at one lender than another. Here are some other factors to be aware of when comparing loan rates and lenders:. Check out our loan comparison calculator to compare loan rates and calculate costs. No-interest loans include financing from auto dealerships and retailers. Here are some costs that may come with a no-interest loan:. As you compare lenders, take note of origination fees, which are typically taken out of the loan amount, as well as charges such as late fees.

A balance transfer credit card with a 0 percent introductory APR could be a less costly option than a no-interest loan — as long as you pay the card off before the intro period ends. Best low-interest personal loans for November Written by Mia Taylor. Written by. Mia Taylor. Mia Taylor is an award-winning journalist who has two decades of experience and a graduate degree in journalism and media studies. Edited By Rashawn Mitchner. Edited by.

Rashawn Mitchner. Rashawn Mitchner is a former associate editor at Bankrate. Reviewed By Mark Kantrowtiz. Reviewed by. Applying for a U. Bank loan is easy and can be done online; however, you must be a current U. Bank customer. Some customers may need to visit a U. Bank branch if additional information or documentation is required. Eligibility: U. Bank requires applicants to be existing U. Because you may need to visit a branch to close your loan, you must live near a physical location.

Loan uses: U. For example, they can cover vacation costs, home improvements, medical bills or help consolidate any debt obligations, like credit cards. Turnaround time: An applicant typically will learn their loan approval status in less than a minute.

If you qualify for the personal loan, you may fund your loan online; however, you may need to visit a branch if a U. Bank representative needs more information. After your loan closes, funds are available within one business day. Wells Fargo personal loans boast interest rates between 5. To qualify, you need to have a Wells Fargo checking account and make automatic payments from a Wells Fargo deposit account. Although Wells Fargo is available to anyone in the United States, only current Wells Fargo customers will be able to apply online.

New customers will need to visit a branch location. Eligibility: Wells Fargo personal loans are available for both existing and new Wells Fargo customers. Existing customers can apply online, while new customers must visit a branch location. Loan uses: You can use Wells Fargo personal loans for any type of purchase besides a home and education expenses.

For example, you can consolidate your debt, finance purchases like new appliances or furniture, fund renovations and cover expenses, such as medical bills and auto repairs.

Turnaround time: Wells Fargo offers a simple and quick application process for existing customers. Once approved, you can typically receive your funds by the next business day. We reviewed 18 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process.

We chose the six best lenders based on the weighting assigned to each category:. Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender.

Personal loan interest rates vary depending on your lender and credit score. If you have a high credit score, you could see interest rates as low as 2. Before you apply, improve your credit as much as possible to increase your odds of landing the best interest rate possible.

If you have a strong credit score, you can receive the lowest interest rate through LightStream. LightStream has rates as low as 2. Bank, offer rates as low as 5. Although not as low as LightStream, rates that low still beat out other methods of financing, including credit cards.

Before applying for a low-interest personal loan, check your credit score. If your score is low, look to improve it first. Some lenders let you prequalify with a soft credit check, which lets you see what type of loan terms you could receive with your current score. Once you find a loan that offers favorable terms for your financing needs, apply with the provider. If you qualify, be sure to set up autopay to earn potential discounts and avoid any late payment fees.

Jordan Tarver is the assistant editor for loans at Forbes Advisor. Before joining Forbes Advisor, Jordan was an editor and writer for multiple finance sites, focusing on loans, credit cards and bank accounts.