There might be many reasons to take out a personal loan: You have a financial emergency, you want to cover a major expense, or you just want to build a good credit history. But not all personal loans—or personal loan lenders—are the same. The best will offer a low annual percentage rate, long repayment terms, and little to no fees. And of course, your personal needs and financial profile will impact the type of lender you'll find ideal, too.
Wells Fargo: Best Big Bank
:max_bytes(150000):strip_icc()/wells-fargo-0f2d2672b3d445ceac4dcd1c244f93aa.png)
Wells Fargo is one of the nation’s biggest banks. If you don't want to visit one of their 5,400 branches across the U.S., you can access info on their easy-to-navigate website. Wells Fargo offers competitive rates, a big range of loans, and less stringent credit requirements than others.
Long repayment terms: up to 84 months
Minimal fees: No origination fee or prepayment penalties
Quick funding: Money available on the next business day
Discounts: Interest-rate breaks for auto payments, additional WF accounts
No prequalification: You have to actually apply for a loan, which triggers a score-dinging hard credit check
Application process: Online/phone applications for current bank clients only; newcomers must apply in person at a branch
Other Important Information
- Maximum/minimum amount you can borrow: $3,000 to $100,000
- APR range: 5.74%–20.24% with relationship discount
- Credit requirements: Minimum 620
- Fees: No origination fee
- Other qualification requirements: New customers need to apply in person
- Repayment terms: 12 to 84 months
- Time to receive funds: As soon as the next business day
- Restrictions: Qualifying for a relationship discount includes opting into autopay from a qualifying Wells Fargo account
LightStream: Best for Home Improvement Loans
:max_bytes(150000):strip_icc()/lightstream-d0e34cc536974b5eb5c0bbabfd1018a9.png)
LightStream is the online lending division of SunTrust Bank, now known as Truist. LightStream prides itself on offering loans for nearly every need or occasion, from a new car to a wedding; however, one of their specialties is financing for home improvement projects. Some people prefer using personal loans for remodels or major repairs because they don't require putting up the residence as collateral, as home equity loans or lines of credit do.
Large loan ranges: As low as $5,000 or as much as $100,000
No fees: None. Really.
Long repayment terms: as high as 12 years
Stringent credit requirements: While LightStream doesn’t specify the credit score you need, they suggest having good to excellent credit to qualify
No prequalification: You have to actually apply for a loan, which triggers a score-dinging hard credit check
Other Important Information
- Maximum/minimum amount you can borrow: $5,000 to $100,000
- APR range: 4.99%–19.99% with autopay
- Fees: None
- Minimum recommended credit score: 680
- Other qualification requirements: The applicant’s credit history and debt-to-income ratio may be taken into consideration
- Repayment terms: 24 to 144 months
- Time to receive funds: Within the same day of loan approval
- Restrictions: Minimum APR depend on the reason for your loan
Learn more about LightStream personal loans in our full review.
Marcus by Goldman Sachs: Best for Debt Consolidation Loans
:max_bytes(150000):strip_icc()/marcus-by-goldman-sachs-48a8088ab99243a28be0e2ec1866b788.png)
If you have a mountain of outstanding credit card balances or other high interest liabilities, you might consider using a personal loan to consolidate them into one big debt for better terms. Marcus by Goldman Sachs, the online consumer banking arm of the investment management firm, specializes in such debt consolidation loans to those with decent credit.
Fees-free: No charges for late payment, prepayment, or loan origination
Flexible repayments: Borrowers can choose and change repayment dates, and even skip a payment
Discounts: .25% reduction in interest with auto-pay
Stringent requirements: Good to excellent credit score required
No cosigners allowed: No helping hand if your own credit isn’t solid enough to qualify
Other Important Information
- Minimum/Maximum amount you can borrow: $3,500 to $40,000
- APR range: 6.99%–19.99% with autopay discount
- Fees: None
- Minimum recommended credit score: A minimum score of 680 is recommended
- Other qualification requirements: Your debt-to-income ratio may be taken into account
- Repayment terms: 36 to 72 months
- Time to receive funds: 1 to 4 business days
- Restrictions: Individual applications only
Learn more about Marcus personal loans in our full review.
TD Bank: Best for Co-signers
:max_bytes(150000):strip_icc()/td-bank_3x2-dcc66e5ee0f84928a75862cba3d29d23.png)
Those with sketchy credit histories or low credit scores can still often qualify for a loan if the lender allows co-signing. A co-signer acts as an additional repayment source—responsible for the loan should the primary borrower default or fall behind—and their presence not only helps you qualify for the loan but can also improve its terms and size. TD Bank allows for co-signing, and offers competitive terms and features, too.
Low APR: Maximum APR is 18.99%, far lower than many lenders' upper limit
Fast process: Funds in 48 hours (with Express Loan)
No hidden costs: No origination or application fees
Limited availability: TD Bank operates in only a few states
Application process: While you can apply online, by phone, or in person, you might have to visit a branch to complete the process
Other Important Information
- Minimum/maximum you can borrow: $2,000 to $25,000
- APR range: 6.99%–18.99%
- Fees: No origination or application fees
- Minimum recommended credit score: 660
- Other qualification requirements: Your employment history and income may be taken into account
- Repayment terms: 12 to 60 months
- Time to receive funds: As soon as the next business day
- Restrictions: May need to complete application process in person
Learn more about TD Bank personal loans in our full review.
American Express: Best for Credit Card Holders
:max_bytes(150000):strip_icc()/american-express-logo-c9e3e5afd40a4e59b48083fb2b76bb84.png){kind=logo}
If you want to borrow money, you could look at a credit card advance. While not all credit cards offer this, many do, and most of the time, your cash advance limit is the same as your credit limit. But if you don't have that option or need to borrow more than your cash advance limit, you can try a personal loan from your credit card lender. American Express offers personal loans for credit card members based on your creditworthiness.
Pre-qualification option available
Low APR available for borrowers with excellent credit
Can use for credit card debt consolidation
Must be an Amex cardholder to be eligible
High minimum amount required
Other Important Information
- Minimum/Maximum amount you can borrow: $3,500 to $40,000
- APR range: 5.91%–19.98%
- Fees: None
- Minimum recommended credit score: 670
- Other qualification requirements: Needs to be an existing American Express cardholder
- Repayment terms: 12 to 36 months
- Time to receive funds: As soon as the next business day
- Restrictions: Need to be invited to apply for a personal loan
USAA: Best for Military Members
:max_bytes(150000):strip_icc()/usaa-b1bc15d6c6d145bfa84574ad45d8ba99.png)
Founded in 1922 and headquartered in San Antonio, USAA serves over 13 million members through their banking, loan, and investment products. As a member of the military community, you’ll have access to personal loan amounts starting at $2,500 once you join as a member of the bank and open a bank account. Members can also receive rate discounts by opting into autopay.
Members who sign up for autopay receive a rate discount
Wide range of loan repayment terms
Fast funding time (after loan approval)
Hard credit inquiry conducted since there’s no prequalification option
Strict requirements for a personal loan
Low maximum loan amount
Other important information:
- Maximum/minimum amount you can borrow: $2,500 to $5,000
- APR range: 7.24%–17.65%
- Fees: No early prepayment penalties or application fees
- Minimum recommended credit score: 600
- Other qualification requirements: If applying for a loan of $5,000 or more, borrowers need to select a 48 month loan term
- Repayment terms: 12 to 84 months
- Time to receive funds: Within 24 hours to your USAA Bank account
- Restrictions: Need to meet membership requirements and have a valid USAA Bank account
Citibank: Best for Relationship Rewards
:max_bytes(150000):strip_icc()/citibank-a067347abef8474ea010d0bf911ba510.png)
Citibank was founded in 1811 and currently has a presence in more than 98 countries. Their personal loans are only available to existing Citibank customers and the bank rewards those with qualifying checking accounts ThankYou points each month. Plus, it might be easier to qualify for a personal loan since the annual income requirements are lower compared to other banks.
Low annual income requirements
Rate discount if opting in to autopay
Joint applications allowed
Loans only available to qualifying Citibank customers
No prequalification option
Slow funding time
Other important information:
- Maximum/minimum amount you can borrow: $2,000 to $30,000
- APR range: 7.99%–23.99% with autopay discount
- Fees: No origination fee; $25 late fee
- Minimum recommended credit score: 670
- Other qualification requirements: Applicants will need an annual income of at least $10,500 and an eligible Citibank account open for three months
- Repayment terms: 36 to 60 months
- Time to receive funds: Within five business days
- Restrictions: Loan process are sent by check only
Discover: Best for Fast Funding
:max_bytes(150000):strip_icc()/discover-0cf8961d4cc749c49f5fa4cd7bfb70d9.png)
Discover Bank is one of the largest online banks in the U.S. and offers 100% U.S. based customer service. Personal loan borrowers can take advantage of no origination fees, plus same day loan approvals and funding. Rates start at 6.99% and maximum loan amounts of $350,000.
Ability to check rates without it affecting their credit score
Same day approval and funding in most cases
Option to send funds to creditors directly
No joint applications
Lengthier minimum loan term compared to other lenders
A $35 late fee will be imposed
Other important information:
- Maximum/minimum amount you can borrow: $2,500 to $35,000
- APR range: 6.99%–24.99%
- Fees: No origination fee; $35 late fee
- Minimum recommended credit score: 670
- Other qualification requirements: The applicant needs an annual household income of $25,000
- Repayment terms: 36 to 84 months
- Time to receive funds: As soon as the next business day
- Restrictions: Individual applications only
Do All Banks Offer Personal Loans?
No, not all banks offer personal loans. Bank of America, one of the biggest financial institutions in the country, doesn’t carry them, for example. Most personal loans are unsecured, meaning they are not backed up by an asset that the lender can take if you default, and some banks don't want the risk. Others just don't want to deal with the expense of lending and servicing relatively small, four- and five-figure amounts.
Other large banks that do not offer unsecured personal loans are Capital One and Chase.
What Do I Need to Qualify for a Personal Bank Loan?
If you’re looking to get a bank personal loan, you need to get your paperwork in order first. Before applying, check your credit score and pull your credit report through AnnualCreditReport.com. This will give you an idea of whether or not you’ll qualify for a bank personal loan, as well as how low your interest payments will be.
Most banks require good to excellent credit from personal loan applicants. So you might need a higher credit score than you would for, say, a secured loan (one that does require collateral, like an auto loan or mortgage) or even a credit card. Still, if you have a solid repayment history, avoid maxing out your credit cards, and can prove your creditworthiness, there’s a strong chance you’ll qualify for a bank personal loan.
Do I Need to Be an Existing Bank Client to Get a Loan?
If you’re interested in a personal loan from a bank you don't have a relationship with, make sure that being a client isn’t a requirement before applying. Not all banks request personal loan borrowers be account holders, but some do—or they offer better terms to current clients. Also, you might need to open a checking or savings account there to take advantage of auto-pay discounts on the loan (the payments have to come from an in-house account).
What Are Alternatives to Bank Loans?
While many banks offer personal loans, there are some limitations. As noted above, many require you to have an account with the bank before taking advantage of a personal loan. Others might take longer to get you your loan. You might want to explore the below alternatives to banks for personal loans.
Credit Unions
If you have less-than-stellar credit, you may want to reach out to credit unions near you for personal loans. While many require an account with the credit union to be open first, many are competitive with APRs and low amounts to borrow. This is helpful if you don’t need to borrow too much to cover an emergency.
Online Lenders
Many online lenders, or non-brick-and-mortar banks, give you quick and easy access to personal loans. You can see if you prequalify before applying, which doesn’t hurt your credit. If you do decide to apply, you can do so within a few minutes online, rather than visiting a branch in-person. After approval, you can usually get funds fairly quickly—sometimes within a day. The best online lenders offer little to no fees, flexible repayment terms, and competitive APRs.
The best banks for personal loans vary in your needs, but many have competitive offers for a variety of different potential borrowers. Before you choose to take out a personal loan with a bank, make sure you review all your options, including alternatives, first. Depending on your needs and how quickly you need money, you may find some banks or lenders are more friendly than others. If it takes you days or weeks to apply for a loan and get your money, that won't help in a time-sensitive situation.
Methodology
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders for all borrowing needs. We collected over twenty five data points across more than fifty lenders including interest rates, fees, loan amounts and repayment terms to ensure that our content helps users make the right borrowing decision for their needs.