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| Lender | APR range | Minimum loan amount | Maximum loan amount | terms | Recommended credit score |
|---|---|---|---|---|---|
| LightStream Best overall rate and lowest rate |
2.49% to 19.99% with automatic payment | $ 5,000 | $ 100,000 | 24–144 months | Not listed |
| To pay Ideal for debt consolidation |
5.99% -24.99% | $ 5,000 | $ 40,000 | 2-5 years | 640+ |
| SoFi Better customer experience |
4.74% to 19.38% with automatic payment | $ 5,000 | $ 100,000 | 2-7 years | Not listed |
| Discover personal loans Best minimum loan amount |
6.99% to 24.99% | $ 2,500 | $ 35,000 | 36-84 months | Not listed |
| Marcus by Goldman Sachs Best for transparency |
6.99% to 19.99% | $ 3,500 | $ 40,000 | 36–72 months | 660+ |
| Wells fargo Ideal for in-person service |
5.74% to 24.49% with relational discount | $ 3,000 | $ 100,000 | 12 to 84 months | Not listed |
| Caisse populaire d’Alliant Best credit union |
6.24% to 10.24% with automatic payment | $ 1,000 | $ 50,000 | 12 to 60 months | Not listed |
| American Express Best marriage loan |
Not listed | $ 3,500 | $ 25,000 | Not listed | Not listed |
Faq
What is considered a great credit score?
When we talk about credit, we are mainly talking about credit score – a statistical measure, similar to an academic score, that sums up your creditworthiness in three digits. The credit scores that most lenders use are between 300 and 850, which seems much wider than it is in terms of lender approval. Most credit scores are between 600 and 750, according to Experian, one of the “big three” credit bureaus. A score of 740 and above is considered “very good” and scores of 800 and above are considered “excellent”.
Credit score ranges:
- Excellent credit: 800 – 850
- Very good credit: 740 – 799
- Good credit: 670 – 739
- Fair credit: 580 – 669
- Very bad credit: less than 580
It is important to understand where you stand in terms of your credit score. This can be the difference between a loan with a double-digit interest rate (if you have a less than good score, below around 660) or a loan a few percentage points above the prime rate (if you are. in the excellent grade category). Other benefits of having a higher credit score include the ability to borrow higher loan amounts and longer repayment terms.
What Are the Average Rates for Personal Loans for Great Credit?
According to the Federal Reserve, the average 24-month personal loan rate is 9.46% in February 2021. Of course, it depends on the lender and the factors that determine the borrower’s rate, which includes your financial history and your credit score.
Most likely, the higher your income and credit score, the more likely you are to be approved for the lower rates. There may also be other factors such as your debt-to-income ratio (DTI), which indicates the percentage of debt you are paying over your gross monthly income. Lenders look at this number to determine if you can take on more debt.
What should you consider before choosing a personal loan?
Some factors to look for include:
- APR: Generally speaking, the lower the better. The annual percentage rate (APR) is different from the interest rate because it will include all the fees built into your loan.
- Fees: Consider origination fees, late fees, or prepayment penalties in case you want to prepay your loan.
- Repayment terms: Understanding how long you have to pay off your loan can show you how much interest you will be paying over the life of the loan.
Also, consider factors like restrictions on how the loan is to be used, minimum payment amounts, and when you will receive the funds.
Will taking out a personal loan hurt your credit score?
There are two types of credit checks: a soft pull (or soft investigation) and a hard pull (hard investigation). A soft pull is like a snapshot: Lenders let you see what you qualify for with them (approximately), based on the basic financial data you provide them, and it doesn’t affect your credit score. When you submit a full application, this is when the lender will make a big effort, which will show up on your credit report and possibly affect your credit score, especially if there are more than one.
Keep in mind that if you have excellent credit, it may not affect your score as much or for as long. Also, if you apply for multiple personal loans in a short period of time, the credit bureaus may consider them as one application, especially if they have the same goal (home improvement, automobile, etc.). They are aware that borrowers like to compare offers before making a decision, so they won’t blame you for doing your due diligence.
Where can I get a personal loan?
As a person with excellent credit, there are many places you can find a personal loan. Many borrowers tend to think that the only places are banks and credit unions, but many alternative lenders offer fairly competitive rates, especially if they are online. In fact, these lenders have some of the lowest rates since they are not subject to the overhead costs of traditional institutions.
The bottom line
Getting a personal loan with great credit means that you will be able to get loans at the best rates and terms. But you should still shop around – after all, as the ideal applicant, you deserve the ideal lender. When comparing offers, it’s not just the APR that counts; Consider the repayment terms, how much you want to borrow, how quickly you will receive the funds, and any restrictions on the loan proceeds before signing on the dotted line. And if you are submitting claims to multiple lenders, make sure you do so within a short period of time so that your credit score isn’t affected as much and your excellent status remains secure.
How we choose the best personal loans for great credit
Investopedia is committed to providing consumers with unbiased and comprehensive personal lender analysis for all borrowing needs. We have collected over twenty-five data points from over fifty lenders, including interest rates, fees, loan amounts, and repayment terms, to ensure our content helps users take the right borrowing decision for their needs.
