If you’re drowning in high-interest credit card debt or don’t have the cash to fund a major purchase, low-interest personal loans can be a lifesaver. But with hundreds of lenders offering personal loans, it can be hard to know where to go to find the best rates.
The good news is we’ve done the research for you. Here are five of the best low-interest personal loans and what you need to do to qualify for them.
6 best low-interest personal loans available today
1. LendingTree – Compare Rates from Multiple Lenders
If you are looking to get the best interest rate on your personal loan, it is critical that you compare offers from multiple lenders. LendingTree, the parent company of Student Loan Hero, allows for consumers to easily compare personal loan offers from up to 5 lenders with a single form, giving you the peace of mind that you are getting the best loan available. With dozens of lenders that participate in their personal loan comparison tool, you will be able to potentially see offers from the lenders listed below, as well as others.
2. Earnest
Earnest doesn’t offer the lowest interest rate of the bunch. However, its APR range of 5.99% to 17.24% makes it possible to get a low-interest personal loan even if your credit isn’t perfect.
Although the lender doesn’t have any income requirements, it does require a minimum FICO credit score of 660 to qualify. Here are some other terms and features to know:
- You can borrow between $2,000 and $50,000 (the minimum is $5,000 if you live in New Mexico or Ohio and $7,500 if you live in South Carolina).
- Repayment periods range from one to three years.
- There are no restrictions on how you use the funds.
- There are no fees or penalties.
- Earnest offers loan prequalification with a soft credit check.
3. SoFi
SoFi is known mostly for its student loan refinancing, but it also offers the lowest interest rate for personal loans of the lenders we reviewed. Depending on your credit, you can qualify for a 5.47% to 17.67% APR.
SoFi doesn’t require a minimum credit score to get approved, but you must earn at least $50,000 in annual income. Here are some other facts to know:
- You can borrow between $5,000 and $100,000.
- Repayment periods include three, five, and seven years.
- There are no restrictions on how you use the funds.
- There are no origination fees or prepayment penalties. You also can qualify for late-fee forgiveness after three consecutive on-time payments.
- SoFi offers loan prequalification with a soft credit check.
4. Upstart
If your credit isn’t stellar, you still might qualify for an Upstart personal loan — but with a high interest rate. With excellent credit, the lender’s rates are competitive; APRs range from 5.59% to 35.99%.
Upstart’s FICO score and income requirements are low at 620 and $12,000, respectively. However, its other terms aren’t as favorable as Earnest’s and SoFi’s:
- You can borrow between $1,000 and $50,000.
- Repayment terms include three and five years.
- There are no restrictions on how you use the funds.
- Origination fees range between 1 percent and 8 percent of the loan balance. You’ll also pay a late-payment fee of 5 percent of the amount due or $15, whichever is greater. There are no prepayment penalties.
- Upstart offers loan prequalification with a soft credit check.
5. Citizens Bank
Online lenders typically offer lower interest rates because they have lower costs and no physical branches. Surprisingly, Citizens Bank offers competitive rates despite being a traditional bank.
The lender’s APRs range from 6.79% to 20.89%. It requires a 680 FICO score and a $24,000 annual income. Here are some other terms and features to consider:
- You can borrow between $5,000 and $50,000.
- Repayment periods range from three to seven years.
- You cannot use the funds for home improvement or to pay off student loans.
- There are no origination fees or prepayment penalties. The late-payment fee is 5 percent of the amount due.
- Citizens Bank offers loan prequalification with a soft credit check.
5. LendingClub
LendingClub’s APRs range from 6.95% to 35.89%. So, if you have excellent credit, interest rates are favorable. If you don’t, getting a personal loan might not be worth it.
The lender has no income requirements and requires just a 600 credit score to qualify. Here are other terms to know:
- You can borrow between $1,000 and $40,000.
- Repayment terms include three and five years.
- There are no restrictions on how you use the funds.
- Origination fees range from 1 percent to 6 percent. The late-payment fee is $15 or 5 percent of the amount due, whichever is greater.
- LendingClub offers loan prequalification with a soft credit check.
How to qualify for low-interest personal loans
Personal loan interest rates are generally a reflection of how the lender views you as a credit risk — or how likely you are to default on the loan. Lenders look at a few factors to determine your rate.
1. Credit score
Your credit score is a road map of your experience with credit. Payment history, amount owed, and length of credit history are major factors in determining that three-digit number.
A low credit score can signify that you’re less reliable as a borrower, so you might get a higher interest rate to make up for the risk. A high credit score, on the other hand, shows you’re a responsible borrower and should qualify you for a lower interest rate.
2. Debt-to-income ratio
Even lenders that don’t have a minimum income requirement use your income to help determine your interest rate.
The main reason is they want to know your debt-to-income ratio (DTI). The ratio is calculated by dividing your monthly debt payments by your monthly gross income.
The lower your DTI, the more flexibility you have to make your monthly payments. This makes you look less risky and usually results in a lower interest rate. Use our DTI calculator to find out what yours is before you apply.
3. Loan term
The shorter the repayment period, the sooner the lender can lend that money to someone else. So, lenders typically offer lower interest rates on personal loans with short repayment periods. This incentivizes the borrower to repay the loan quickly.
Shorter repayment periods come with higher monthly payments, though, so make sure you can afford them.
Compare personal loans to get the best rate
To get the lowest interest rate on a personal loan, compare several lenders to see what rates they offer. All the lenders listed here allow you to prequalify without a hard inquiry on your credit report.
Here’s what happens when you go through the prequalification process:
- The lender will do a soft inquiry on your credit report.
- You’ll get an estimated interest rate based on the information it finds.
- When you apply, you’ll get a final rate based on your full financial profile.
Going through this process will help you get the best possible rate for your situation. Plus, thanks to a lower interest rate, you’re more likely to save money on your personal loan in the long run.
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If you need to take out a personal loan and don’t know where to start, check out LendingTree’s personal loan shopping tool. (Full disclosure: LendingTree is our parent company). Dozens of lenders work with LendingTree to offer personal loans. When you enter your information into the tool, you can get several offers at once, without affecting your credit score. Depending on your credit, you could qualify for a loan with an interest rate below 6%.
Interested in a personal loan?
LendingTree allows you to compare rates from multiple lenders by filling out one easy form. Advertiser DisclosureStudent Loan Hero Advertiser Disclosure
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.
Student Loan Hero Advertiser Disclosure
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.
| Lender | RATES (APR) | loan amount | |
|---|---|---|---|
 | 5.47% – 17.67%1 | $5,000 to $100,000 | |
 | 5.59% – 35.99% | $1,000 to $50,000 | |
 | 7.99% – 35.89%* | $1,000 to $50,000 | |
 | 5.99% – 24.99%3 | $5,000 to $35,000 | |
 | 5.99% – 29.99%4 | $7,500 to $40,000 | |
 | 4.99% – 23.99% | $3,500 to $55,000 | |
| compare rates on Lendingtree now Disclaimer: Student Loan Hero is a subsidiary of LendingTree | |||
1 Includes AutoPay discount. Important Disclosures for SoFi. SoFi Disclosures
Payoff Disclosures
FreedomPlus Disclosures
Upgrade Bank Disclosures* Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from you bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. All loans made by WebBank, member FDIC. Please refer to Upgrade’s Terms of Use and Borrower Agreement for all terms, conditions and requirements. ** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days. | |||
