Finding the right personal loan shouldn’t require a finance degree. You’ve got banks, fintechs, and AI-powered platforms all throwing around terms like origination fees, APR ranges, and soft pulls, and half the time it feels like they’re designed to confuse you into picking whatever pops up first. But here’s the thing: the difference between a good personal loan and a bad one can be thousands of dollars over the life of the loan.
The average personal loan rate sits at 12.27% as of February 2026, but that number hides a massive spread. Borrowers with excellent credit can lock in rates below 7%, while fair-credit borrowers might face 25% or higher. Some lenders charge no fees at all; others quietly deduct 10% of your loan proceeds before the money ever hits your account. Speed varies from same-day funding to over a week. And eligibility ranges from a 300 FICO minimum at one lender to an effective 700+ requirement at another.
We reviewed and ranked the largest and most popular personal loan lenders to help you find the right option. Here’s our list of the best personal loans.
Amica Homeowners Insurance
Amica is the rare insurer that leads in nearly every category we measure. The company has ranked #1 in J.D. Power's Home Insurance Study for 17 consecutive years, with a 2025 score of 705 out of 1,000. Its NAIC complaint index of 0.37 is the lowest among all major carriers, meaning it generates a fraction of the complaints you would expect for its size. And unlike many top-rated insurers that charge a premium for quality, Amica's average annual premiums of $1,428 to $1,510 come in well below the national average of $2,110 to $2,543. That combination of satisfaction, claims handling, and pricing is unmatched.
As a mutual company, Amica is owned by its policyholders rather than shareholders, and the difference shows up in the dividend policy. Depending on your state, you can choose a dividend-eligible plan that returns 5% to 20% of your premium annually, effectively lowering your already-competitive rate even further. The Platinum Choice tier upgrades your coverage to an HO-5 open-peril policy with 130% dwelling replacement cost, water backup, and enhanced electronics coverage all built in.
The tradeoff is scale. Amica holds just 0.71% of the homeowners market and operates without local agents, so everything runs through phone and web. AM Best also revised Amica's outlook to negative in February 2024, though the A+ (Superior) rating itself remains intact. For homeowners who want the strongest track record of customer satisfaction paired with below-average pricing, Amica is our pick for the best overall homeowners insurance.
- 17-Year #1 Streak: Ranked first in J.D. Power's Home Insurance Study every year since 2008, with a 2025 score of 705/1,000.
- Below-Average Pricing: Average premiums of $1,428 to $1,510 per year, well under the national average of $2,110 to $2,543.
- Dividend Policies: Choose a dividend-eligible plan and receive 5% to 20% of your premium back annually in most states.
- Platinum Choice HO-5: Open-peril personal property coverage with 130% dwelling replacement cost and built-in water backup.
- Lowest Complaint Rate: NAIC complaint index of 0.37, the lowest of any major carrier we reviewed.
Compare Our Picks for the Top Personal Loans of 2026
| Lender | Recommended For | Highlights | Next Steps |
|---|---|---|---|
| LightStream | Best Overall & Large Amounts | Zero fees, $100K max, Rate Beat Program | Check Rates |
| SoFi | Best Online Lender | No fees, same-day funding | Check Rates |
| Upstart | Best for Fair/Low Credit | AI underwriting, min 300 FICO, next-day funding | Check Rates |
| Avant | Best for Debt Consolidation | Low-income threshold, hardship options | Check Rates |
| Upgrade | Best for Fast Funding / Bad Credit | 580 min score, secured loan options, 84-mo terms | Check Rates |
| Rocket Loans | Best for Prequalification | Same-day funding, soft pull, strong brand | Check Rates |
| Achieve | Best for Debt Solutions | 3 rate discounts, co-borrower, dedicated consultant | Check Rates |
Why Personal Loans Exist (And When They Make Sense)
The average personal loan interest rate is 12.27% as of February 2026, according to TransUnion and Federal Reserve data. That is significantly lower than the average credit card APR, which sits above 20%. For borrowers carrying high-interest debt, a personal loan can consolidate multiple payments into one fixed monthly bill at a lower rate, saving hundreds or thousands in interest over the life of the loan.
Personal loans are also one of the most flexible borrowing tools available. Unlike auto loans or mortgages that are tied to a specific asset, personal loans can be used for almost anything: debt consolidation, home improvement, medical expenses, major purchases, moving costs, or emergency funding. Most are unsecured, meaning you do not need to put up collateral. And because they carry fixed rates and fixed terms, your monthly payment stays the same from the first month to the last, making budgeting predictable.
The personal loan market has grown substantially in recent years. TransUnion data shows that personal loan originations have been on a steady upward trajectory, driven by fintech lenders that use AI and alternative data to approve borrowers who would have been declined a decade ago. Platforms like Upstart evaluate more than 2,500 variables beyond your FICO score, while traditional bank lenders like LightStream and SoFi compete on price with zero-fee structures and same-day funding.
The Features That Actually Matter
APR is the single most important number when comparing personal loans, because it captures both the interest rate and certain fees as an annualized cost. But the advertised APR range only tells part of the story. A lender advertising 6.94% to 25.29% (like LightStream) is very different from one advertising 9.95% to 35.99% (like Avant). The floor rate is what the most qualified borrowers get; the ceiling is what everyone else might face. Pay attention to both numbers, and understand that your rate will fall somewhere in between based on your credit score, income, and loan terms.
Origination fees are the hidden cost that separates cheap loans from expensive ones. An origination fee of 5% on a $20,000 loan means you receive $19,000 but owe payments on the full $20,000, plus interest. SoFi, LightStream, and Discover charge no origination fee at all, meaning you receive every dollar you are approved for. Lenders like Upgrade (1.85% to 9.99%), Upstart (0% to 12%), and Rocket Loans (up to 9.99%) charge fees that can significantly increase the effective cost of borrowing. Always factor the origination fee into your total cost calculation.
Funding speed matters when you need money now. Same-day funding is available from LightStream (by 2:30 p.m. ET), SoFi (by 7 PM ET), and Rocket Loans (by 4:00 p.m. ET). Upgrade and Upstart typically fund the next business day. LendingClub takes 2 to 4 days. Happy Money is the slowest at 3 to 6 business days. If your timeline is flexible, speed should not be your primary decision factor. But if you are facing an emergency expense, the difference between same-day and next-week can be meaningful.
Prequalification with a soft credit pull is now standard among most lenders. This lets you check your rate and see potential loan offers without impacting your credit score. SoFi, Upstart, Upgrade, Avant, Rocket Loans, and Achieve all offer soft pull prequalification. The notable exception is LightStream, which does not offer prequalification directly on its website (only through partner marketplaces), requiring a hard inquiry for direct applicants. If you are rate shopping, always use soft pull prequalification first, then apply formally only after you have compared offers.
How to Choose the Right Personal Loan
Start with your credit score. If it is 700 or above, LightStream and SoFi should be your first stops. Both charge zero fees and offer the lowest rates in the market. If your score is between 620 and 700, Upgrade, Achieve, and LendingClub provide competitive options with rate discounts for autopay and direct creditor payment. If your score is below 620 or your credit file is thin, Upstart and Avant are the most accessible options, with Upstart’s AI model being especially strong for recent graduates and career changers.
Next, consider your loan purpose. For debt consolidation, look for lenders that offer direct payment to creditors (SoFi, Upgrade, Achieve, Happy Money) because these often come with additional rate discounts and reduce the temptation to spend the funds elsewhere. For home improvement, LightStream’s terms extend up to 20 years, which can make monthly payments manageable on large projects. For general-purpose borrowing with maximum flexibility, SoFi’s seven-year terms and zero fees are hard to beat.
Finally, get at least three quotes. Personal loan rates are highly individualized, and two lenders with similar advertised ranges can offer very different rates to the same borrower. Use soft pull prequalification at three or more lenders, compare the APR (not just the rate), factor in any origination fees, and calculate the total cost of each loan over its full term. The 15 minutes you spend comparing offers can save you hundreds or thousands of dollars.
Frequently Asked Questions
What credit score do I need for a personal loan?
It depends on the lender. Upstart accepts scores as low as 300 using AI-based underwriting. Avant and Upgrade accept scores around 580. SoFi requires an estimated 680 minimum, and LightStream generally requires scores well above 700 for the best rates. Most lenders let you prequalify with a soft credit pull, so you can check without affecting your score.
How fast can I get funded?
Same-day funding is available from LightStream (by 2:30 p.m. ET), SoFi (by 7 PM ET), and Rocket Loans (by 4:00 p.m. ET). Upgrade and Upstart typically fund the next business day. Avant also offers next-day funding for loans approved before 4:30 p.m. CT. Achieve funds within 24 to 72 hours. Actual timelines depend on verification requirements and your bank’s processing speed.
What is an origination fee and how does it work?
An origination fee is a percentage of your loan amount that the lender deducts from your proceeds before disbursement. For example, a 5% origination fee on a $20,000 loan means you receive $19,000 but owe payments on the full $20,000. SoFi, LightStream, and Discover charge no origination fee. Upstart charges 0% to 12%, Upgrade charges 1.85% to 9.99%, and Rocket Loans charges up to 9.99%. Always include the origination fee in your total cost calculation.
Can I use a personal loan for debt consolidation?
Yes. Debt consolidation is one of the most common uses for personal loans. Several lenders, including SoFi, Upgrade, Achieve, and Happy Money, offer direct payment to creditors, where the lender sends funds directly to your credit card issuers. This feature often comes with an additional rate discount and simplifies the process. Lenders like LightStream, Rocket Loans, and Avant deposit funds to your bank account, and you pay off your creditors yourself.
Does checking my rate affect my credit score?
Not if the lender uses a soft credit inquiry for prequalification, which most major lenders do. SoFi, Upstart, Upgrade, Avant, Rocket Loans, and Achieve all offer soft pull prequalification. A hard credit inquiry, which can temporarily lower your score by a few points, only occurs after you formally accept a loan offer and submit a full application. The exception is LightStream, which requires a hard pull for direct applicants.
What is the average personal loan interest rate?
As of February 2026, the average personal loan interest rate is 12.27%, according to TransUnion and Federal Reserve data. However, rates vary widely based on your credit score, income, loan amount, and term length. Borrowers with excellent credit can qualify for rates below 7% at lenders like LightStream, while borrowers with fair or poor credit may face rates above 20%.
Should I choose a longer or shorter loan term?
Shorter terms mean higher monthly payments but less total interest paid. Longer terms mean lower monthly payments but more total interest. For example, a $15,000 loan at 12% APR costs approximately $2,928 in total interest over 36 months versus $5,040 over 60 months. Choose the shortest term you can comfortably afford to minimize total cost, but make sure the monthly payment fits your budget.
Is it better to go with a bank or an online lender?
Neither is inherently better. Bank lenders like LightStream and Discover tend to offer lower rates and no fees, but require higher credit scores and may have less flexible eligibility criteria. Online lenders like SoFi, Upstart, and Upgrade tend to offer broader credit access, faster funding, and more flexible features like co-borrower options and secured loan pathways. The best choice depends on your credit profile, borrowing needs, and priorities.
Methodology
Our evaluation weighted six categories based on their importance to the average personal loan borrower:
Rates and Fees (25%): We compared APR ranges, origination fee structures, late fees, prepayment penalties, and available rate discounts. Lenders with zero fees and lower APR ceilings scored highest.
Loan Terms and Flexibility (20%): We evaluated loan amount ranges, term lengths, co-borrower options, secured loan pathways, and repayment flexibility. Wider ranges and more options earned higher scores.
Eligibility and Accessibility (20%): We assessed minimum credit score requirements, income thresholds, state availability, and the use of alternative data in underwriting. Broader accessibility scored higher.
Speed and Application Process (15%): We measured time from application to funding, prequalification availability (soft vs. hard pull), and the overall digital experience. Same-day funding with soft pull prequalification scored highest.
Customer Experience (10%): We evaluated J.D. Power rankings, CFPB complaint volume relative to loan portfolio size, mobile app ratings, and customer service channels.
Transparency and Reputation (10%): We checked BBB ratings, Trustpilot scores, fee disclosure clarity, financial stability, and regulatory history.
Our review methodology applies the same criteria to all 15 providers and produces a weighted total score out of 5.0. Data sources include lender websites, the CFPB Consumer Complaint Database, J.D. Power’s 2025 U.S. Consumer Lending Satisfaction Study, Federal Reserve interest rate data, TransUnion Credit Industry Insights, BBB and Trustpilot profiles, app store ratings, and SEC filings.
Frequently asked questions
Answers to your questions about the best personal loans.
It depends on the lender. Upstart accepts scores as low as 300 using AI-based underwriting. Avant and Upgrade accept scores around 580. SoFi requires an estimated 680 minimum, and LightStream generally requires scores well above 700 for the best rates. Most lenders let you prequalify with a soft credit pull, so you can check without affecting your score.
Same-day funding is available from LightStream (by 2:30 p.m. ET), SoFi (by 7 PM ET), and Rocket Loans (by 4:00 p.m. ET). Upgrade and Upstart typically fund the next business day. Avant also offers next-day funding for loans approved before 4:30 p.m. CT. Achieve funds within 24 to 72 hours. Actual timelines depend on verification requirements and your bank’s processing speed.
An origination fee is a percentage of your loan amount that the lender deducts from your proceeds before disbursement. For example, a 5% origination fee on a $20,000 loan means you receive $19,000 but owe payments on the full $20,000. SoFi, LightStream, and Discover charge no origination fee. Upstart charges 0% to 12%, Upgrade charges 1.85% to 9.99%, and Rocket Loans charges up to 9.99%. Always include the origination fee in your total cost calculation.
Yes. Debt consolidation is one of the most common uses for personal loans. Several lenders, including SoFi, Upgrade, Achieve, and Happy Money, offer direct payment to creditors, where the lender sends funds directly to your credit card issuers. This feature often comes with an additional rate discount and simplifies the process. Lenders like LightStream, Rocket Loans, and Avant deposit funds to your bank account, and you pay off your creditors yourself.
Not if the lender uses a soft credit inquiry for prequalification, which most major lenders do. SoFi, Upstart, Upgrade, Avant, Rocket Loans, and Achieve all offer soft pull prequalification. A hard credit inquiry, which can temporarily lower your score by a few points, only occurs after you formally accept a loan offer and submit a full application. The exception is LightStream, which requires a hard pull for direct applicants.
As of February 2026, the average personal loan interest rate is 12.27%, according to TransUnion and Federal Reserve data. However, rates vary widely based on your credit score, income, loan amount, and term length. Borrowers with excellent credit can qualify for rates below 7% at lenders like LightStream, while borrowers with fair or poor credit may face rates above 20%.
Shorter terms mean higher monthly payments but less total interest paid. Longer terms mean lower monthly payments but more total interest. For example, a $15,000 loan at 12% APR costs approximately $2,928 in total interest over 36 months versus $5,040 over 60 months. Choose the shortest term you can comfortably afford to minimize total cost, but make sure the monthly payment fits your budget.
Neither is inherently better. Bank lenders like LightStream and Discover tend to offer lower rates and no fees, but require higher credit scores and may have less flexible eligibility criteria. Online lenders like SoFi, Upstart, and Upgrade tend to offer broader credit access, faster funding, and more flexible features like co-borrower options and secured loan pathways. The best choice depends on your credit profile, borrowing needs, and priorities.
