Personal loans can be useful when you need money for debt consolidation, home improvements, medical expenses, major purchases, unexpected bills, or other planned expenses. However, the cost of borrowing can vary significantly from one lender to another.

A low-interest personal loan can save you hundreds or even thousands of dollars over the life of the loan compared with a higher-rate option. The difference becomes especially important when you borrow a large amount or choose a longer repayment term.

In 2026, personal loan rates vary widely depending on the lender, loan amount, repayment term, credit score, income, debt-to-income ratio, and other factors. Current lender comparisons show advertised APRs ranging from roughly 6% at the low end to nearly 36% at the high end for some borrowers.

This guide reviews some of the best personal loan options available in the United States in 2026, explains what makes a loan inexpensive, and provides practical steps for finding the lowest rate you may qualify for.

What Is a Personal Loan?

A personal loan is a type of installment loan that allows you to borrow a fixed amount of money and repay it through regular monthly payments over an agreed period.

Unlike a credit card, which generally allows you to borrow repeatedly up to a credit limit, a personal loan normally provides a specific amount upfront.

For example, you might borrow $15,000 and repay it over 36 or 60 months.

Most personal loans have fixed interest rates, meaning the interest rate generally does not change during the repayment period.

Personal loans can be secured or unsecured.

An unsecured personal loan does not require collateral such as a house or vehicle. The lender primarily evaluates your creditworthiness, income, debts, and other financial information.

A secured personal loan requires an asset to serve as collateral. Because the lender has additional security, secured loans may sometimes offer lower interest rates, although the borrower risks losing the collateral if the loan is not repaid according to the agreement.

What Is Considered a Low Interest Rate for a Personal Loan?

There is no single interest rate that qualifies as low for every borrower.

A rate that is excellent for someone with average credit may not be the best available rate for someone with exceptional credit.

Current 2026 comparisons show that some lenders advertise starting APRs around 6% to 7%, while other lenders have maximum APRs close to 36%.

For example, LendingTree’s August 31, 2026 comparison lists several lenders with starting APRs below 7%, including PenFed at 6.09%, SoFi at 6.99%, and other lenders with starting rates around 6% to 7%.

Bankrate’s current comparison also shows lenders with starting rates below 8%, although the actual rate offered to an individual borrower depends on that person’s qualifications.

The important point is that advertised starting rates are generally reserved for highly qualified borrowers.

Your personal offer could be higher.

Best Personal Loans with Low Interest Rates in 2026

The following lenders stand out for different reasons, including competitive APRs, large loan amounts, flexible terms, credit requirements, joint applications, and fast funding.

1. SoFi Personal Loans

SoFi is one of the strongest options for borrowers with good to excellent credit who want competitive rates and larger loan amounts.

LendingTree’s August 2026 comparison lists SoFi personal loans with APRs from 6.99% to 35.49% when applicable discounts are included. The listed loan amounts range from $5,000 to $100,000, with repayment terms from 24 to 84 months.

The Wall Street Journal’s current 2026 review also names SoFi as a leading personal loan provider, highlighting its high loan limit, long repayment options, and same-day funding capabilities.

Key Features

• Competitive starting APR
• Loans up to $100,000
• Multiple repayment terms
• Potential rate discounts
• No origination fee according to current comparisons
• Online application
• Potential fast funding
• Suitable for debt consolidation and major expenses

Advantages

SoFi is particularly attractive to borrowers with strong credit who want a large unsecured loan.

Its loan limit can be useful when you need more money than many smaller personal loan providers offer.

The lender also provides rate discounts that can reduce borrowing costs for qualifying customers.

Disadvantages

The lowest advertised rates are generally intended for highly qualified borrowers.

Someone with fair or poor credit may receive a substantially higher APR.

Best For

SoFi can be a strong choice for borrowers with good credit who want competitive rates and larger loan amounts.

2. PenFed Credit Union

PenFed Credit Union is another attractive option for borrowers looking for low personal loan rates.

LendingTree’s August 2026 comparison lists PenFed with APRs beginning at 6.09% and extending to 17.99% with autopay.

Bankrate also lists PenFed among the credit unions offering some of the lowest personal loan rates, with an advertised range of 6.09% to 17.99%.

Key Features

• Starting APR around 6.09% in current comparisons
• Rates up to around 17.99% in the cited range
• Credit union structure
• Competitive rates
• Personal loan options
• Membership accessible to a broad range of consumers

Advantages

Credit unions can sometimes provide competitive personal loan rates compared with traditional banks and online lenders.

PenFed is especially interesting for borrowers who prioritize a relatively low maximum APR.

Disadvantages

You may need to meet membership requirements.

Loan approval and the rate you receive still depend on your credit profile and other qualifications.

Best For

PenFed may be suitable for borrowers who want a credit union personal loan and are looking for competitive rates.

3. LightStream

LightStream is known for offering large personal loans and long repayment terms.

LendingTree lists LightStream personal loans with APRs from 7.24% to 24.89% with autopay, loan amounts from $5,000 to $100,000, and terms ranging from 24 to 84 months.

The Wall Street Journal’s 2026 review identifies LightStream as a strong option for long-term personal loans and notes that loan terms can extend much longer for certain purposes.

Key Features

• Loans up to $100,000
• Competitive rates for qualified borrowers
• Long repayment options
• No origination fees in current comparisons
• Online application
• Unsecured loan options

Advantages

LightStream can be particularly attractive for large expenses.

The high maximum loan amount allows qualified borrowers to finance significant projects without using multiple credit products.

Disadvantages

The best rates are generally reserved for borrowers with strong credit.

A longer loan term may reduce your monthly payment but can increase the total amount of interest paid.

Best For

LightStream is a strong option for borrowers with excellent credit who need a larger loan or longer repayment period.

4. Happen Bank

Happen Bank, formerly associated with LendingClub, is another option worth considering.

Current LendingTree data lists Happen Bank with APRs from 5.96% to 35.96% and identifies it as a lender offering joint-loan options and access for some fair-credit borrowers.

The Wall Street Journal’s current 2026 review also highlights Happen Bank for joint loans.

Key Features

• Competitive starting APR
• Joint loan option
• Flexible borrowing options
• Online application
• Potentially useful for borrowers who do not qualify for the lowest rates elsewhere

Advantages

The ability to apply jointly can be useful when another applicant has stronger credit or income.

A joint application may improve the overall application profile, although approval and terms are never guaranteed.

Disadvantages

Borrowers should carefully review any origination fees and the APR offered before accepting a loan.

A joint borrower also becomes responsible for the debt.

Best For

Happen Bank may be suitable for borrowers considering a joint application or looking for flexible personal loan options.

5. Upgrade

Upgrade is well known for debt consolidation and personal loans for borrowers who may not have excellent credit.

Bankrate currently lists Upgrade personal loans with APRs from 7.74% to 35.99%, loan amounts from $1,000 to $50,000, and a minimum credit score of 600.

Key Features

• Loans from approximately $1,000 to $50,000
• Starting APR around 7.74% in current comparisons
• Minimum credit score around 600 according to Bankrate
• Debt consolidation options
• Potential autopay discount
• Secured loan options in certain circumstances

Advantages

Upgrade can be more accessible than some lenders that focus primarily on excellent-credit borrowers.

The relatively low minimum loan amount is also useful if you need to borrow only a few thousand dollars.

Disadvantages

The maximum APR can be high.

Origination fees may apply depending on the offer.

Best For

Upgrade can be useful for borrowers with fair credit who want debt consolidation or a smaller personal loan.

6. Achieve

Achieve is another personal loan provider offering competitive rates for qualified borrowers.

Bankrate’s current comparison lists Achieve with APRs beginning around 6.25% and extending to 35.99%.

Key Features

• Competitive starting APR
• Personal loans for multiple purposes
• Potential rate discounts
• Debt consolidation options
• Online application
• Flexible borrowing amounts

Advantages

Achieve can be attractive for borrowers who qualify for its lower rates and available discounts.

It may also be useful for debt consolidation.

Disadvantages

The lowest rate is not available to every applicant.

Fees and exact loan terms vary according to the offer.

Best For

Achieve may suit borrowers with good credit who want to compare multiple rate discounts.

7. Upstart

Upstart uses technology and additional information in its underwriting process, which can make it an alternative for borrowers who may not fit traditional lending models.

LendingTree’s current comparison lists Upstart with APRs from 6.30% to 35.99%.

Bankrate also lists Upstart among its reviewed online lenders, with a starting APR of 6.20%.

Key Features

• Competitive starting APR
• Alternative underwriting approach
• Online application
• Personal loan amounts that can vary by borrower
• Potential option for borrowers with limited traditional credit history

Advantages

Upstart can consider factors beyond a traditional credit score in its underwriting process.

This may make it worth checking for borrowers who have difficulty qualifying with traditional lenders.

Disadvantages

Rates can rise substantially for borrowers who do not meet stronger credit or financial requirements.

The maximum APR is close to 36%.

Best For

Upstart may be useful for borrowers who want to compare an alternative underwriting model with traditional lenders.

8. Best Egg

Best Egg is another established online personal loan provider.

Bankrate currently lists Best Egg with APRs from 6.99% to 35.99%.

Key Features

• Competitive starting APR
• Online application
• Multiple loan options
• Debt consolidation
• Home improvement financing
• Flexible loan amounts depending on qualification

Advantages

Best Egg can be useful for borrowers who want a straightforward online application.

It is also an option worth comparing when consolidating higher-interest debt.

Disadvantages

The maximum APR can be high for borrowers with weaker credit.

Fees may apply depending on the loan offer.

Best For

Best Egg may suit borrowers with good credit looking for an online personal loan.

9. Citi Personal Loan

Citi offers personal loans to qualifying customers and can be attractive for borrowers who prefer a traditional bank.

Bankrate currently lists Citi personal loans with APRs from 9.99% to 17.49%, loan amounts from $2,000 to $30,000, and a minimum credit score of 680.

Key Features

• Traditional bank lender
• APR range of approximately 9.99% to 17.49%
• Loans from $2,000 to $30,000
• Minimum credit score of 680 in Bankrate’s current listing
• Fixed-rate loan structure

Advantages

Citi may appeal to customers who prefer borrowing from a large established bank.

Its maximum advertised APR is considerably lower than the maximum rates charged by many online lenders.

Disadvantages

The starting rate is higher than the lowest advertised rates from some competitors.

Eligibility requirements may be stricter.

Best For

Citi can be a good option for qualified borrowers who prefer a traditional bank.

10. Navy Federal Credit Union

Navy Federal Credit Union is one of the largest credit unions in the United States, although membership is restricted to eligible military members, veterans, Department of Defense personnel, and qualifying family members.

Current 2026 reviews identify Navy Federal as a strong credit union option for personal loans, including secured lending.

Bankrate’s current comparison lists Navy Federal personal loan rates from 8.99% to 18.00%.

Key Features

• Credit union personal loans
• Competitive maximum APR
• Secured loan options
• Multiple repayment choices
• Membership-based financial services

Advantages

Eligible borrowers may benefit from competitive credit union pricing.

Secured loan options can potentially provide lower rates than unsecured borrowing, depending on the product and applicant.

Disadvantages

Membership is restricted.

You should also understand the risks of using collateral for a loan.

Best For

Navy Federal is best for eligible military-affiliated borrowers who want credit union financing.

Personal Loan Comparison

Lender	Approx. Starting APR	Approx. Maximum Loan	Best For
SoFi	6.99%	$100,000	Good credit and large loans
PenFed	6.09%	Varies	Low-rate credit union loans
LightStream	7.24%	$100,000	Large loans
Happen Bank	5.96%	Up to $75,000	Joint borrowers
Upgrade	7.74%	$50,000	Debt consolidation
Achieve	6.25%	Varies	Rate discounts
Upstart	6.20%	Varies	Alternative underwriting
Best Egg	6.99%	Varies	Online borrowers
Citi	9.99%	$30,000	Traditional bank
Navy Federal	8.99%	Varies	Eligible military members

These are advertised or comparison-site rate ranges, not guaranteed offers. Actual APRs, fees, loan amounts and approval decisions depend on individual qualifications and lender terms.

How Personal Loan Interest Rates Work

Personal loan interest is the cost you pay for borrowing money.

Suppose you borrow $20,000 at a 10% fixed APR for five years.

You will make regular monthly payments throughout the term.

The exact payment depends on the loan’s interest rate, term, fees and repayment structure.

The lower the APR, the less interest you generally pay, assuming the same loan amount and repayment period.

This is why comparing APR is more useful than simply comparing monthly payments.

A longer repayment period can make the monthly payment smaller but may increase your total interest cost.

APR vs Interest Rate

Interest rate and APR are related but not identical.

The interest rate represents the cost of borrowing the principal.

APR can incorporate the interest rate and certain loan fees, making it a more useful number for comparing the overall cost of borrowing.

For example, a lender might advertise a low interest rate but charge a significant origination fee.

Another lender may have a slightly higher interest rate but no origination fee.

The APR can help you understand which offer is actually cheaper.

Bankrate specifically warns borrowers to pay attention to APR because origination fees can increase the effective cost of online personal loans.

How Much Does a $15,000 Personal Loan Cost?

The cost depends on the interest rate and repayment period.

For example, Bankrate provides an illustration for a $15,000 four-year loan:

At 6% interest, the approximate monthly payment is $352 and total interest is about $1,909.

At 10%, the monthly payment is approximately $380 and total interest is about $3,261.

At 12.5%, the monthly payment is approximately $398 and total interest is about $4,138.

At 15%, the monthly payment is approximately $417 and total interest is about $5,038.

The example demonstrates why finding a lower rate can make a major difference.

The difference between 6% and 15% may look like only a few percentage points, but it can represent thousands of dollars over the full repayment period.

What Credit Score Do You Need for a Low-Interest Personal Loan?

There is no universal minimum credit score.

Every lender has its own underwriting requirements.

However, borrowers with excellent or very good credit generally have access to more competitive rates.

Current 2026 lender comparisons show some lenders accepting borrowers with fair credit, while the lowest advertised rates are generally reserved for stronger applicants.

Your credit score is only one part of the decision.

Lenders may also consider:

• Income
• Employment
• Debt-to-income ratio
• Existing debts
• Credit history
• Loan amount
• Loan purpose
• Repayment term
• Payment history

How to Get the Lowest Personal Loan Rate

If your goal is to minimize interest costs, follow these steps.

1. Check Your Credit Report

Before applying, review your credit reports for errors.

Incorrect information can potentially affect your ability to qualify for favorable terms.

If you find inaccurate information, dispute it with the relevant credit bureau.

2. Improve Your Credit Before Applying

If you have time, reduce credit card balances and make every payment on time.

Lower credit utilization and consistent payment history can strengthen your credit profile.

3. Compare Multiple Lenders

Never assume that the first lender you find offers the best rate.

Compare banks, credit unions and online lenders.

4. Use Prequalification

Many lenders allow prospective borrowers to check potential rates through prequalification.

A prequalification process commonly uses a soft credit inquiry, which generally does not affect your credit score.

LendingTree recommends comparing offers and using rate estimates before choosing a lender.

5. Compare APR

Do not compare only the interest rate.

Look at APR, origination fees and other charges.

6. Choose the Shortest Affordable Term

A shorter term generally means higher monthly payments but less total interest.

Choose a term that fits comfortably within your budget.

7. Look for Autopay Discounts

Some lenders reduce the interest rate when you enroll in automatic payments.

Even a small discount can save money over several years.

What Is an Origination Fee?

An origination fee is a charge some lenders apply when processing a personal loan.

It may be calculated as a percentage of the loan amount.

For example, if you borrow $20,000 and the lender charges a 5% origination fee, the fee would equal $1,000.

The lender may deduct that fee from the amount you receive.

This means you could technically borrow $20,000 but receive only $19,000 in your bank account.

That is why it is important to understand both the loan amount and the net amount you actually receive.

Some lenders do not charge origination fees, while others may charge them depending on the borrower’s qualifications and loan product.

Fixed-Rate vs Variable-Rate Personal Loans

Most personal loans are fixed-rate loans.

A fixed rate means your interest rate and scheduled payment generally remain unchanged throughout the loan term.

This makes budgeting easier.

Variable-rate loans can change over time.

If the interest rate increases, your borrowing cost may increase.

For borrowers who value predictable monthly payments, a fixed-rate personal loan is often easier to manage.

Secured vs Unsecured Personal Loans

Unsecured Personal Loan

No collateral is required.

Advantages include:

• No asset pledged as security
• Simple application process
• Flexible use of funds

The disadvantage is that lenders may charge higher rates because they have no collateral to recover if the borrower defaults.

Secured Personal Loan

Collateral is required.

Possible collateral may include savings or another qualifying asset depending on the lender.

Advantages can include:

• Potentially lower interest rate
• Potentially easier approval
• Larger borrowing capacity in some situations

The main risk is that you can lose the collateral if you fail to repay the loan according to the agreement.

Personal Loans for Debt Consolidation

Debt consolidation is one of the most common uses for personal loans.

Suppose you have several credit card balances with high interest rates.

You may be able to take out a personal loan with a lower APR and use it to pay off those balances.

You would then have one monthly loan payment instead of several credit card payments.

However, consolidation only saves money if the new loan’s total cost is lower and you avoid building new credit card debt afterward.

Before consolidating, compare:

• Existing interest rates
• New APR
• Origination fee
• Loan term
• Monthly payment
• Total interest
• Total repayment amount

Personal Loans for Home Improvement

Personal loans can also finance home repairs and improvements.

Examples include:

• Kitchen remodeling
• Bathroom renovation
• Roof repairs
• HVAC replacement
• Flooring
• Emergency repairs
• Accessibility improvements

An unsecured personal loan can be faster than home equity financing because you may not need to use your home as collateral.

However, home equity loans and HELOCs can sometimes offer lower rates because they are secured by the property.

Compare the total cost before deciding.

Personal Loans for Medical Expenses

Unexpected medical bills can create financial pressure.

A personal loan may provide a way to spread the expense across several monthly payments.

However, borrowers should first ask the medical provider whether an interest-free payment plan or financial assistance is available.

Borrowing should generally be considered after reviewing lower-cost alternatives.

Personal Loans for Major Purchases

Some people use personal loans for:

• Wedding expenses
• Moving costs
• Vehicle-related expenses
• Education-related expenses
• Large household purchases
• Emergency expenses

Before borrowing for discretionary purchases, consider whether waiting and saving would be less expensive.

Interest can significantly increase the final cost of something that you could otherwise purchase with cash.

Personal Loan Alternatives

A personal loan is not always the best option.

Consider alternatives based on your circumstances.

0% Introductory APR Credit Card

A qualifying 0% introductory APR credit card may be useful for short-term purchases if you can repay the balance before the promotional period ends.

However, balance transfer fees and the post-promotional APR should be considered.

Home Equity Loan

A home equity loan may offer a lower interest rate because your home secures the loan.

The risk is that your home can be at risk if you fail to make payments.

HELOC

A home equity line of credit provides revolving access to home equity.

Rates can be variable, so your payments may change.

Credit Union Loan

Credit unions can offer competitive personal loan rates, particularly for eligible members.

Emergency Fund

If the expense is not urgent, using savings instead of borrowing may be financially preferable.

How to Apply for a Personal Loan

The application process is generally straightforward.

Step 1: Determine How Much You Need

Do not borrow more than necessary.

Calculate the exact amount required for the expense.

Step 2: Check Your Credit

Review your credit score and credit report.

Step 3: Compare Lenders

Look at rates, loan amounts, terms, fees and eligibility.

Step 4: Prequalify

Use prequalification tools where available.

Step 5: Select the Best Offer

Compare the actual offers you receive.

Step 6: Submit the Full Application

You may need to provide:

• Government-issued identification
• Social Security number
• Employment information
• Income information
• Bank account information
• Housing information
• Debt information

Step 7: Review the Loan Agreement

Before signing, review:

• APR
• Interest rate
• Monthly payment
• Loan term
• Origination fee
• Late fee
• Prepayment policy
• Total repayment amount

Step 8: Receive the Funds

Once approved and finalized, the lender transfers the funds according to its procedures.

Does Applying for a Personal Loan Hurt Your Credit?

Prequalification usually involves a soft inquiry and does not typically affect your credit score.

A full loan application generally involves a hard inquiry.

A hard inquiry can temporarily reduce your credit score by a small amount.

That is why it is useful to compare lenders through prequalification before submitting multiple full applications.

Avoid applying to many lenders blindly.

How Long Does It Take to Get a Personal Loan?

Funding speed varies by lender.

Some online lenders can provide funds very quickly after approval.

Others may take one or several business days.

The Wall Street Journal’s current 2026 review notes that lenders such as SoFi can offer same-day funding for qualifying borrowers, while funding speed varies among providers.

If you need money urgently, compare funding speed as well as APR.

A slightly cheaper loan may not be useful if you need funds immediately and cannot wait.

What Is a Good Personal Loan Term?

Common personal loan terms range from approximately two to seven years, although some lenders offer longer terms for certain purposes.

A shorter term generally means:

• Higher monthly payment
• Lower total interest
• Faster debt payoff

A longer term generally means:

• Lower monthly payment
• More total interest
• Longer time in debt

Choose the shortest term that allows you to make payments comfortably without damaging your monthly budget.

How to Calculate Whether You Can Afford a Personal Loan

Before borrowing, calculate your monthly budget.

Start with your monthly take-home income.

Then subtract:

• Housing
• Utilities
• Food
• Transportation
• Insurance
• Existing debt payments
• Childcare
• Medical costs
• Savings
• Other essential expenses

The remaining amount represents the money available for discretionary spending and additional debt payments.

Do not assume that being approved means you can comfortably afford the loan.

A lender’s maximum approval is not necessarily your ideal borrowing amount.

Warning Signs of a Bad Personal Loan

Be careful if a lender:

• Guarantees approval regardless of credit
• Requests large upfront payments before approval
• Refuses to explain fees
• Pressures you to sign immediately
• Does not clearly disclose APR
• Does not provide clear repayment terms
• Requests unusual payment methods
• Promises unrealistically low rates without checking your information

Legitimate lenders should provide clear information about the loan’s cost and terms.

Never send money to someone simply because they promise guaranteed loan approval.

Frequently Asked Questions

What is the lowest personal loan interest rate in 2026?

Some lenders currently advertise starting APRs around 6% or slightly below, depending on the lender and qualifications. For example, PenFed is listed at 6.09% in LendingTree’s August 2026 comparison, while some other lenders start around 6.20% or 6.25%.

The lowest advertised rate is not guaranteed.

What credit score gets the lowest personal loan rate?

Borrowers with excellent credit generally have the strongest chance of receiving a lender’s lowest advertised rates.

However, credit score is only one factor.

Income, debt, employment and loan amount can also affect the offer.

Is 7% a good personal loan rate?

A 7% APR can be competitive in the current 2026 personal loan market, particularly when compared with much higher offers.

The exact value depends on your credit profile and alternatives available to you.

Is 10% a good rate for a personal loan?

A 10% rate can be reasonable depending on your credit profile and the purpose of the loan.

You should still compare multiple offers because qualified borrowers may be able to find lower rates.

Can I get a personal loan with a 600 credit score?

Some lenders accept applicants with credit scores around 600.

For example, Bankrate currently lists Upgrade with a minimum credit score of 600.

However, borrowers with a 600 score may receive a higher APR than borrowers with excellent credit.

Can I get a $50,000 personal loan?

Yes, some lenders offer personal loans of $50,000 or more.

SoFi and LightStream, for example, are listed with maximum loan amounts of up to $100,000 in current comparisons.

Approval depends on income, creditworthiness, existing debt and lender requirements.

Which personal loan is best for excellent credit?

Borrowers with excellent credit should compare lenders such as SoFi, PenFed and LightStream because these providers currently advertise competitive rates for qualified borrowers.

Which personal loan is best for fair credit?

Options can include Upgrade, Upstart, Happen Bank and other lenders that consider borrowers outside the highest credit tiers.

However, fair-credit borrowers should pay particular attention to APR and fees.

Is a personal loan better than a credit card?

It depends on the interest rate and purpose.

A personal loan may be cheaper than carrying a large credit card balance if the loan APR is substantially lower.

A credit card may be preferable for short-term borrowing if you qualify for a 0% introductory APR offer and can repay the balance before the promotional period ends.

Are personal loan rates fixed?

Many personal loans have fixed rates.

Always confirm the specific loan agreement before accepting an offer.

Can I pay off a personal loan early?

Some lenders allow early repayment without a prepayment penalty.

Check the loan agreement before signing.

Paying off a loan early can reduce the amount of interest you pay, depending on the loan structure.

Should I choose the lowest monthly payment?

Not necessarily.

A lower monthly payment often results from a longer repayment period.

You could end up paying significantly more interest over the full term.

Compare total repayment cost rather than monthly payment alone.

Final Thoughts

Finding the best personal loan with a low interest rate in the USA in 2026 requires more than choosing the lender with the lowest advertised number.

Your actual rate depends on your credit history, income, debt level, loan amount, repayment term and other factors.

Current comparisons show several lenders advertising starting APRs around 6% to 7%, while other personal loan offers can reach approximately 36% for borrowers with weaker credit.

SoFi can be attractive for borrowers with strong credit who need large loans and flexible terms. PenFed can be appealing for borrowers seeking competitive credit union rates. LightStream is worth considering for larger loans and longer terms. Happen Bank can be useful for joint applications, while Upgrade and Upstart may provide additional options for borrowers who do not have excellent credit.

Before applying, check your credit report, calculate your budget, compare multiple lenders and use prequalification tools whenever available.

Most importantly, compare the APR, not just the advertised interest rate.

Pay close attention to origination fees, repayment terms, monthly payments, funding speed and the total amount you will repay.

A personal loan should solve a financial need without creating a larger financial problem.

If you can obtain a competitive fixed rate, afford the monthly payments comfortably and use the funds for a sensible purpose, a personal loan can be a useful financial tool.

However, borrowing should always be approached carefully. The lowest advertised rate is reserved for the strongest applicants, and rates and terms can change. Always review the lender’s current terms before accepting an offer.