CNBC Select's top personal loan lenders for 2024.

The article lists APRs that are current as of publication, but they may change as the Fed rate fluctuates. Select will update the list as new information becomes available.

An installment credit that requires regular payments over a set period, personal loans can be a cost-effective option for covering various expenses. They often have lower interest rates than credit cards and can be used for a wide range of expenses. Personal loans typically range from $1,000 to $50,000, but some lenders may offer smaller or larger amounts.

CNBC Select has ranked the top personal loans of 2024 after evaluating numerous lenders based on various factors such as interest rates, fees, loan amounts, and term lengths offered, as well as other features including how funds are distributed, autopay discounts, customer service, and the speed of fund distribution. (Learn more about our methodology below.)

Best for flexibility

What is LightStream, the online lending arm of SunTrust Bank, known for? Providing low-interest loans with flexible terms for people with good credit or higher.

If your loan application is approved and you electronically sign your loan agreement and verify your direct deposit banking account information by 2:30 p.m. ET, you can receive your funds on the same day.

LightStream offers some of the lowest APRs among lenders on this list, with a discount for autopay. The interest rates vary based on loan purpose, and you can view all ranges on LightStream's website before applying. However, these rates are subject to change as the Fed rates fluctuate.

If you choose the invoicing option for repayment, your APR will be 0.50% higher than if you opt for autopay. The APR is fixed, meaning your monthly payment will remain the same for the entire duration of the loan. The repayment terms range from 24 to 144 months, depending on the loan's purpose, with the longest-term option among the loans on our top picks.

LightStream does not charge any fees for origination, administration, or early payoff.

Best for debt consolidation

A personal loan from Happy Money is a suitable option for consolidating credit card debt and paying it off gradually at a lower interest rate.

Happy Money's objective is to assist consumers in eliminating credit card debt permanently, which is why its loans are designed specifically for debt consolidation. However, these loans cannot be used for home renovations, significant purchases, or education.

You can borrow between $5,000 and $40,000 with loan terms ranging from 24 to 60 months. The website has a soft inquiry tool that lets you check out possible loan options without affecting your credit score.

Happy Money does not impose late payment fees or early payoff penalties, but there is an origination fee of up to 5% based on your credit score and application. The higher your credit score, the lower your origination fee and interest rates are likely to be.

Unlike other lenders, Happy Money offers the option to deposit borrowed money into your linked bank account or directly to your creditors. Additionally, Happy Money provides financial literacy tools such as free FICO score updates, quarterly check-ins with a team, and assessments to help members improve their relationship with money through personality, stress, and cash flow evaluations.

Best for refinancing high-interest debt

For whom is this? SoFi provides personal loans of up to $100,000 based on creditworthiness, making it a suitable lender for refinancing high-interest credit card debt.

If you have high-interest debt on one or more cards and want to save money by refinancing to a lower APR, SoFi offers a straightforward sign-up and application process, as well as a user-friendly app to manage your payments.

SoFi lending offers a unique feature where borrowers can choose between a variable or fixed APR, unlike most other personal loans that come with a fixed interest rate. With variable rates, the APR can fluctuate over the life of the loan, allowing borrowers to potentially save money if the rate decreases. However, fixed rates provide a guaranteed monthly payment for the entire loan term, making it easier to plan for repayment.

You can earn a 0.25% discount on your APR by setting up automatic electronic payments or online bill pay to SoFi through your bank, or by sending in a paper check.

After applying for and being approved for a SoFi personal loan, your funds will typically become available within a few days of signing the agreement. You can apply for and manage your loan through SoFi's mobile app.

If you're feeling anxious about taking on a large loan, SoFi offers a solution if you lose your job. You can temporarily pause your monthly bill and make interest-only payments while you search for new employment. Although you may still accrue interest, your payment history will remain unblemished. To learn more about SoFi's Unemployment Protection program, check out its FAQs.

Best for smaller loans

What is PenFed? PenFed is a federal credit union that offers membership to the general public and provides various personal loan options for debt consolidation, home improvement, medical expenses, auto financing and more.

You can obtain a $600 loan from PenFed with loan terms ranging from one to five years, even if you're not a member. To apply, you must sign up for a PenFed membership and maintain a qualifying savings account with at least $5.

PenFed loans are suitable for smaller loans, but a disadvantage is that the funds are given in the form of a paper check. If you are near a PenFed branch, you can pick up your check in person. However, if you do not reside near a branch, you must pay for expedited shipping to receive your check the next day.

Unlike some lenders, PenFed doesn't offer a discount for autopay.

Best for next-day funding

What is this intended for? Personal Loans can be utilized for debt consolidation, home renovations, weddings, and vacations. You can receive your funds as early as the next business day if your application is error-free and the loan is funded on a weekday. Otherwise, your funds will be available within a week.

Discover does not charge an origination fee, but will impose a late fee of $39 if you miss your monthly loan repayment deadline. However, there are no penalties for paying off your loan early or making additional payments in the same month to reduce interest costs.

Discover can pay your creditors directly if you're getting a debt consolidation loan. Once approved, you can link your credit card accounts and provide information such as account numbers, amount to be paid, and payment address to have Discover send the money directly to your creditors.

Any funds left after settling your debts can be transferred immediately to your chosen bank account.

Best for a lower credit score

Upstart is suitable for individuals with a low credit score or no credit history. Unlike other companies, it considers factors beyond credit scores when evaluating eligibility. Additionally, Upstart enables applicants to apply with a co-applicant, allowing those with insufficient credit to receive a lower interest rate.

Upstart evaluates various factors such as education, employment, credit history, and work experience. To determine your APR prior to application, Upstart will conduct a soft credit check. Following the submission of your loan application, Upstart will execute a hard credit inquiry, which may momentarily lower your credit score.

You can choose between a three-year or five-year loan and borrow between $1,000 and $50,000 with Upstart. Additionally, Upstart offers fast service, with your funds available the next business day if you accept the loan before 5 p.m. EST Monday through Friday.

Upstart offers a major advantage in the form of no prepayment penalties. However, if you miss a payment by more than 10 days, you'll be charged 5% of the unpaid amount or $15, whichever is greater. Additionally, you'll have to pay an origination fee of up to 12% of the loan amount.

How personal loans work

A personal loan is a type of installment credit that can be a more affordable way to finance large expenses in your life. It can be used for various purposes, such as debt consolidation, home renovations, weddings, travel, and medical expenses.

Ensure you have a plan for using and repaying a loan before taking it out. Consider how much you need, how long you need to repay it comfortably, and how you will budget for the new monthly expense. (Discover what factors to consider when obtaining a loan.)

When choosing a loan term, it's important to weigh the pros and cons. Longer terms typically result in lower monthly payments, but they also come with higher interest rates. On the other hand, shorter terms may have higher monthly payments, but they usually result in lower interest rates over the life of the loan. Ultimately, it's important to consider how much you will end up paying in interest overall when making a decision on a loan term.

If you choose a debt consolidation loan, your lender may pay your credit card accounts directly, leaving any extra cash to be deposited into your bank account.

If you plan to pay off your loan early, be aware that some lenders charge a penalty for doing so. This fee could be a flat rate, a percentage of the loan amount, or the remaining interest you would have paid. However, none of the lenders on our list charge early payoff penalties.

After receiving the loan money, you will need to repay the lender through monthly installments, typically beginning within 30 days.

Once your loan is fully repaid, the credit line will be shut down and you won't be able to use it again.

Common reasons to need a personal loan

A personal loan can be used for a variety of purposes, including paying for expenses such as medical bills, car repairs, or home renovations.

• Debt consolidation
• Home renovation
• Wedding
• Funeral
• Vacation
• Emergency expenses
• Medical expenses

It is generally not possible to use a personal loan to cover education expenses or small business costs. Before taking out a personal loan, it is important to carefully review the terms and conditions and consult with the lender to ensure that the loan can be used for the intended purpose.

How to compare different personal loans

These are the most important features to consider when shopping for a loan.

• Considering the interest rates offered is crucial since a higher rate implies you'll pay back more money over the loan's duration. Generally, a higher credit score earns you a lower interest rate.
• Comparing fees is crucial when looking for personal loans as it can help you save money. Common fees include an application fee, origination fee, and late payment fee.
• The loan term refers to the length of time you need to repay the loan in full. Typically, longer loan terms result in smaller monthly payments, which can help with managing your monthly cash flow. However, longer loan terms also mean you'll pay more in interest over the course of the loan. Conversely, shorter loan terms require higher monthly payments but result in lower total interest paid.
• If you require funding urgently for emergencies, you may prefer lenders with a quicker turnaround time. Most personal loan lenders can provide you with funds within 3-5 business days of approval, but the fastest lenders can disburse your loan on the same day.

How to apply for a personal loan

• Determine the amount of money you require to borrow by consulting with your budget.
• Look for the best loan terms by shopping around with various lenders. You can do this by entering your personal information into a free rate estimation tool on their website. This is a soft inquiry on your credit report, so your credit score should not be affected. Additionally, you can use CNBC Select's personal loan comparison tool for free.
• Gather all your required documents and submit your application once you've decided on the lender. In addition to your name, address, social security number and contact information, you may need to provide pay stubs, proof of address, and bank account information for the deposit.
• You will receive your loan funding within a few days after agreeing to and signing the loan terms.

Pros and cons of a personal loan

Here's what you need to consider before taking out a personal loan.

Pros

• Lump sum disbursement: Personal loans offer flexibility because they are paid out in a single sum directly into your account.
• Lower interest rates on personal loans are more likely for individuals with higher credit scores.
• You won't have to risk losing your car or house with personal loans as they typically don't require collateral. However, if you default on the loan, your credit score could still be negatively impacted.
• Some lenders may provide loan repayment terms that extend beyond seven years.

Cons

• Origination fees, application fees, and prepayment penalties are common with personal loans, but not all lenders charge them. If you obtain a loan with these fees, it can increase the cost of borrowing money.
• Personal loans typically have higher monthly payments compared to other forms of credit, such as credit cards, especially when the repayment term is shorter.

Common personal loan definitions you should know

Here are some common personal loan terms you need to know before applying.

• A co-applicant is someone who assists in qualifying for an application by providing their name and financial details. They can be a co-signer or co-borrower. Having a co-applicant can be beneficial when one's credit score is low or when they are a young borrower with limited credit history. If the co-applicant has a good credit score, they may be offered better terms, such as a lower APR and a larger loan. However, both applicants' credit scores will be affected if the loan is not repaid, so it is important to choose a co-applicant with whom one feels comfortable sharing financial responsibility.
• If you need help qualifying for a loan, a co-signer can agree to assist you. However, they are only responsible for making payments if you are unable to. The co-signer does not receive the loan, and they do not have control over how it is used. However, their credit will be negatively impacted if you miss payments or default on the loan.
• Unlike a co-signer, a co-borrower is responsible for repaying the loan and has a say in how it is used. Co-borrowers are typically involved in decisions about how the loan is used. Some lenders only consider two co-borrowers who share a home or business address as they are likely to be sharing the responsibility of managing money in a mutually beneficial way. Both co-borrowers' credit scores are at risk if either one fails to make payments or defaults.
• Direct payments: Some lenders offer direct payments when you choose debt consolidation as the reason for obtaining a personal loan. Through direct payments, the lender pays your creditors directly, and then deposits any remaining funds into your checking or savings account. It is advisable to continue making payments until your account balance is fully paid off to avoid additional late fees and interest charges.
• Before accepting a loan, be aware of the possibility of an early payoff penalty. Lenders may charge a fee if you pay off your debt early, which could be equal to the remaining interest, a percentage of your payoff balance, or a flat rate.
• An origination fee is a one-time charge that your lender deducts from your loan to cover administrative and processing expenses. It typically ranges from 1% to 5%, but can sometimes be a flat-rate fee. For instance, if you borrowed $20,000 and there was a 5% origination fee, you would receive $19,000 when you got your funds. Your lender would keep $1,000 of the loan, and you would still need to repay the full $20,000 plus interest. It's best to avoid origination fees if possible. Having a good to excellent credit score can help you qualify for loans that don't have origination or administration fees.
• Secured versus unsecured loans: While most personal loans are unsecured, you can use collateral, such as a car, house, or other assets, to secure a loan if you have a poor credit score and struggle to qualify for the best loans. If you default on your payments, your lender has the right to repossess your collateral.

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each personal loan review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of loan products. At CNBC Select, we maintain the highest journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content is created independently by our team, without any input from our commercial team or external third parties. To learn more about our methodology and how we select the best personal loans, please refer to our detailed guide.

Our methodology

CNBC Select evaluated numerous U.S. personal loans from various banks, including credit unions, that do not charge origination or signup fees, have fixed-rate APRs, and offer flexible loan amounts and terms to meet diverse financing requirements.

We prioritized the following features when evaluating and ranking personal loans.

• Most lenders on our top list do not require borrowers to pay an initial fee for loan processing. If there is a fee, it is typically low and only applies to borrowers with lower credit scores.
• A fixed rate APR ensures that your interest rate remains constant throughout the loan term, providing stability to your monthly payments and simplifying budget planning.
• Each lender offers a range of financing options that you can tailor to your monthly budget and repayment timeline.
• Our list of lenders does not charge borrowers for paying off loans early.
• We evaluated lenders' same-day approval decisions and fast online application processes for a streamlined application process.
• Our customer support team offers customer service via telephone, email, or secure online messaging for every loan on our list. Additionally, we have chosen lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Disbursement of funds: Our loans provide prompt payment through electronic wire transfer or paper checks. Some lenders allow direct payment to creditors.
• Autopay discounts: We observed that certain lenders offer incentives for enrolling in autopay, which can result in a reduction of your APR by 0.25% to 0.50%.
• Lenders offer loans ranging from $500 to $100,000, with varying payment limits and loan sizes. Completing a preapproval process can provide insight into your interest rate and monthly payment for a specific loan amount.

We ranked our recommendations for overall financing needs, debt consolidation and refinancing, small loans, next-day funding, and lower credit scores based on the features we reviewed.

The interest rate and monthly payment for personal loans may change based on the Fed rate, but once you agree to the loan agreement, a fixed-rate APR will ensure consistency throughout the loan term. Your APR, monthly payment, and loan amount are determined by your credit history and creditworthiness. To obtain a loan, lenders will perform a hard credit inquiry and require a full application, which may include proof of income, identity verification, proof of address, and more.

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Your LightStream loan terms, including APR, may vary based on loan purpose, amount, term length, and credit profile. To qualify for the lowest rates, you must have excellent credit. The rate is quoted with an AutoPay discount, which is only available before loan funding. Rates without AutoPay are 0.50% points higher. Loan approval is subject to conditions and limitations. Advertised rates and terms are subject to change without notice. For example, monthly payments for a $10,000 loan at 7.99% APR with a term of three years would be $313.32.