Best Low-Interest Personal Loans of 2022

A lower rate can save you thousands of dollars over the life of your loan.

Advertising Disclosure: Some of the loan offers on this site are from companies who are advertising clients of U.S. News. Advertising considerations may impact where offers appear on the site but do not affect our editorial independence.

A personal loan can help you pay for debt consolidation, home improvement or other expenses, but you’ll need to pay it back – with interest. Shopping around for a competitive rate, even on a low-interest personal loan, can reduce the interest you pay. Find out where to shop for low-interest rate personal loans and what to ask before you agree to a new loan.

Here's what you'll learn:

  • Why is a low-interest personal loan important?
  • What is a good interest rate on a personal loan?
  • Can you get a low-interest loan?

PenFed Credit Union

4.7

4.99% to 17.99% APR
$50,000 Max. Loan Amount
650 Min. Credit Score

LightStream

4.5

2.49% to 19.99% APR
$100,000 Max. Loan Amount
670 Min. Credit Score

SoFi

4.6

4.74% to 20.28% APR
$100,000 Max. Loan Amount
Not disclosed Min. Credit Score

Wells Fargo

4.3

5.74% to 19.99% APR
$100,000 Max. Loan Amount
Not disclosed Min. Credit Score

U.S. Bank

4.2

5.99% to 19.49% APR
$50,000 Max. Loan Amount
660 Min. Credit Score

Alliant Credit Union

4.7

6.24% to 10.24% APR
$50,000 Max. Loan Amount
Not disclosed Min. Credit Score

Discover

4.5

5.99 to 24.99% APR
$35,000 Max. Loan Amount
660 Min. Credit Score

Happy Money

4.4

5.99% to 24.99% APR
$40,000 Max. Loan Amount
550 Min. Credit Score

PNC Bank

4

5.99% to 28.74% APR
$35,000 Max. Loan Amount
Not disclosed Min. Credit Score

Axos Bank

4.1

7.15% to 17.99% APR
$50,000 Max. Loan Amount
700 Min. Credit Score
Lender
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4.99% to 17.99% APR
$50,000 Max. Loan Amount
650 Min. Credit Score
Lender
Learn More
2.49% to 19.99% APR
$100,000 Max. Loan Amount
670 Min. Credit Score

SoFi

4.6

Lender
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4.74% to 20.28% APR
$100,000 Max. Loan Amount
Not disclosed Min. Credit Score
Lender
Learn More
5.74% to 19.99% APR
$100,000 Max. Loan Amount
Not disclosed Min. Credit Score
Lender
Learn More
5.99% to 19.49% APR
$50,000 Max. Loan Amount
660 Min. Credit Score
Lender
Learn More
6.24% to 10.24% APR
$50,000 Max. Loan Amount
Not disclosed Min. Credit Score
Lender
Learn More
5.99 to 24.99% APR
$35,000 Max. Loan Amount
660 Min. Credit Score
Lender
Learn More
5.99% to 24.99% APR
$40,000 Max. Loan Amount
550 Min. Credit Score
Lender
Learn More
5.99% to 28.74% APR
$35,000 Max. Loan Amount
Not disclosed Min. Credit Score
Lender
Learn More
7.15% to 17.99% APR
$50,000 Max. Loan Amount
700 Min. Credit Score

Lender

Learn More

APR

Max. Loan Amount

Min. Credit Score

4.99% to 17.99%$50,000 650
2.49% to 19.99%$100,000 670

SoFi

4.6

4.74% to 20.28%$100,000 Not disclosed
5.74% to 19.99%$100,000 Not disclosed
5.99% to 19.49%$50,000 660
6.24% to 10.24%$50,000 Not disclosed
5.99 to 24.99%$35,000660
5.99% to 24.99%$40,000 550
5.99% to 28.74%$35,000 Not disclosed
7.15% to 17.99%$50,000 700

U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.

To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. Personal loan companies are evaluated based on customer service ratings, interest rates, maximum loan term, minimum and maximum loan amounts, minimum FICO score, online features, and origination fees. The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.

To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.

PenFed Credit Union

4.7

U.S. News Star Rating

Although PenFed Credit Union – officially Pentagon Federal Credit Union – serves members of the armed forces, military associations, veterans and retirees, and their families, a military connection is not required to become a member. The credit union offers personal loans for eligible members and eligible co-borrowers in all 50 states, as well as in Guam, Puerto Rico and Okinawa, Japan.

LightStream

4.5

U.S. News Star Rating

LightStream is the online consumer lending division of Truist, which formed in 2019 from the merger of BB&T and SunTrust. SunTrust acquired the assets of online lender FirstAgain in 2012 and relaunched the business as LightStream.

SoFi

4.6

U.S. News Star Rating

SoFi, short for Social Finance, offers personal loans of up to $100,000 to borrowers with very good to excellent credit. The nationwide lender was founded in 2011 and is known for offering loans with no fees. In addition to personal loans, SoFi offers student loans, auto and student loan refinancing, home loans, and small-business financing.

Wells Fargo

4.3

U.S. News Star Rating

Wells Fargo was established in 1852 and is one of the largest banks in the country, servicing 1 in 3 U.S. households. The financial services company makes customizable personal loans of up to $100,000 with flexible terms from 12 to 84 months.

U.S. Bank

4.2

U.S. News Star Rating

U.S. Bank has physical locations in more than 25 states and offers both short- and long-term personal loans with fixed annual percentage rates starting at 5.99%. Current customers may qualify to borrow up to $50,000 with a credit score of 660 or above, and options are available for noncustomers willing to open a checking or savings account.

Alliant Credit Union

4.7

U.S. News Star Rating

If you need money fast, Alliant Credit Union typically makes same-day online personal loans between $1,000 and $50,000. The $14 billion Chicago-based credit union, founded in 1935, is one of the biggest in the nation, with 600,000 members.

Discover

4.5

U.S. News Star Rating

Discover is a digital bank and payment services company known for its credit cards. But Discover also offers other products, including fixed-rate personal loans of up to $35,000 to borrowers nationwide. The lender charges no fees as long as you pay on time.

Happy Money

4.4

U.S. News Star Rating

Happy Money offers the Payoff Loan, which is designed to consolidate credit card debt. Loans of up to $40,000 are available everywhere except Massachusetts and Nevada.

PNC Bank

4

U.S. News Star Rating

PNC Bank can trace its history back to 1852 and the Pittsburgh Trust and Savings Co. Today, PNC Bank is the seventh-largest bank in the U.S., and it features a wide range of consumer and business banking services. Among its suite of products, PNC offers personal, unsecured installment loans up to $35,000. Applicants are considered based on satisfactory credit history, ability to repay and income.

Axos Bank

4.1

U.S. News Star Rating

Axos Bank launched in 2000 and is owned by San Diego-based Axos Financial. You won’t find any brick-and-mortar branches, but the bank has offices throughout the country. Axos Bank not only offers personal loans but also CDs and checking, money market, retirement, and savings accounts.

The average personal loan rate is 9.54%. Last week's average rate was 9.54%.*

*Rate as of Mar. 16, 2022

Select your desired loan amount and loan purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.

The lower your personal loan interest rate, the less you'll pay to borrow money. This scenario shows how interest rates affect the cost of a personal loan:

Let's say you received an offer for a $5,000 personal loan with a 9.3% annual percentage rate and a four-year repayment term. With this loan, you would pay $1,006.66 in interest alone.

Now assume that you were approved for a $5,000 personal loan with a 6.75% APR and the same four-year term. Your total interest charges on this loan would be $719.30, resulting in interest savings of $287.36.

A good interest rate on a personal loan is lower than the national average, according to the credit bureau Experian. The average rate for a 24-month personal loan in November 2021 was 9.09%, according to the Federal Reserve.

That could be good news if you need to pay off high-interest credit card debt. You'll pay down debt faster on a personal loan than on credit cards with higher interest rates, says David Bakke, personal finance expert at Dollar Sanity, a financial education website.

But getting approved for a low-interest personal loan depends on your credit profile, including credit history and score, income, and debt. All lenders have their own criteria for setting borrowers' personal loan interest rates and terms.

Here are a few key areas that lenders look at to determine personal loan approvals and interest rates:

Your credit score is one of the major factors lenders consider for personal loan eligibility, says Lauren Anastasio, director of financial advice at Stash, a financial technology firm.

"Lenders don't always disclose whether they have a minimum credit score for applicants, but often they prefer to see a good or excellent credit history," she says.

Meeting the minimum credit score doesn't mean you'll qualify for the lowest loan rates advertised. A FICO credit score in the mid-700s or higher is considered very good to exceptional and generally earns you a competitive interest rate.

Borrowers with fair or bad credit shouldn't expect low interest rates on personal loans.

A co-signer, ideally one with strong credit, agrees to make payments if you can't or don't. Lenders may be more willing to approve a loan at a lower interest rate when you have a co-signer.

"If you don't have a stellar credit score or don't make very much, adding a co-borrower to your loan might increase your chances of approval," Anastasio says. "They might also help you get a better interest rate and repayment terms."

Your debt-to-income ratio is the percentage of your gross monthly income – your earnings before taxes or other deductions – you put toward debt. It helps lenders gauge whether you can manage a personal loan payment without financial hardship.

"In a nutshell, the maximum debt-to-income ratio you want if you're looking for a personal loan is right around 35%," Bakke says. "Anything higher than that and the lender will be thinking twice about whether or not to extend the loan."

Additionally, some lenders may have a minimum annual income requirement.

Type of Personal Loan

Whether your personal loan is secured or unsecured can influence your interest rate. With a secured loan, you are providing collateral that the lender can claim if you default on your loan.

"Secured loans, backed by assets owned by the borrower, like a car or house, are less risky to the lender and therefore often come with much lower interest rates, reducing the cost of borrowing over the life of the loan," Anastasio says.

But before jumping on a secured personal loan, factor in the risk of losing whatever you used as collateral if you can't make the monthly payments.

Discounts

Some lenders offer a small APR percentage point reduction for existing customers or signing up for automatic payments. Some lenders list interest rates that include autopay discounts.

Take these steps to find the lowest rates on personal loans.

1. Check Your Rate

Lenders may advertise an APR range, but you won't find out your rate until a lender checks your credit. Prequalification uses a soft credit inquiry, which doesn't hurt your credit score, to tell you whether you could be approved for a low interest rate personal loan.

"Many lenders allow potential borrowers to see if they prequalify for a loan before applying," Anastasio says. "This process shows how much the loan would potentially be approved for (and) what your repayment terms and your interest rate could possibly be."

Not all lenders offer prequalification, but online lenders generally do.

The information you will need to prequalify can vary by lender but may include your desired loan amount and your income. If you can prequalify online, the process can take just a few minutes.

Prequalifying for a personal loan doesn't guarantee approval when you apply. But this option gives you great insight into whether you might meet borrower criteria and estimates loan terms without a hard credit check that could lower your credit score.

2. Check With Your Bank or Credit Union

When you're rate shopping, getting a quote from a financial institution you have a relationship with could pay off.

"Your bank or credit union would be a great place to start," Bakke says. "However, rates and fees do vary, so it's recommended that you get quotes from at least three lenders."

Your bank or credit union might be able to offer a more competitive rate or origination fee than rivals because it has a window into your finances that the others don't. If you have deposit accounts, for example, the bank may consider your wages, spending patterns and savings.

3. Work on Your Credit and Try Again

If you can't get approved for a competitive interest rate on a personal loan, you might want to pause and focus on raising your credit score. Check your credit reports for errors to dispute, pay down debt, make on-time monthly payments, and take other steps to improve your credit before you reapply for a personal loan.

If you have bad credit, you likely won't be able to qualify for a low-interest loan. Borrowers with bad credit often end up with high interest rates and other less-than-ideal terms for personal loans. Take some time to compare lenders and choose a loan with the lowest overall cost, factoring in APRs, account fees, repayment terms, collateral requirements and lender reviews.

Carefully review personal loan options before you commit to a loan. Read full reviews of the best lenders for the lowest interest rate personal loans.

Loan terms vary. In addition to interest rate, you can learn about each lender's:

  • Loan amount range.
  • Minimum credit score requirement.
  • Minimum income requirement.
  • Loan terms, or time to pay off the loan.
  • Customer service ratings, such as from the Better Business Bureau.

Marcus by Goldman Sachs

4.3

U.S. News Star Rating

Marcus by Goldman Sachs provides online personal loans and other consumer finance products. Established in 2016 by Goldman Sachs, the lender offers loans of up to $40,000.

Rocket Loans

4.2

U.S. News Star Rating

RocketLoans offers personal loans to qualified borrowers in all states except Iowa, Nevada and West Virginia. These loans are designed for people with fair to excellent credit who need to borrow up to $45,000 for debt consolidation, home improvements, medical expenses and business or other expenses.

Upgrade

4.1

U.S. News Star Rating

Upgrade offers access to personal loans, the Upgrade card with a personal line of credit, rewards checking, and credit monitoring and educational tools. Founded in 2017 in San Francisco, the firm also has operations offices in Phoenix and Montreal.

Best Egg

4.2

U.S. News Star Rating

Best Egg is an online lender founded in 2014 that is owned and administered by from Marlette Funding, a financial services company with banking and technology experience. Best Egg offers personal loans starting at $2,000 that can be used to cover medical bills, home remodeling and a variety of other expenses. Cross River Bank in New Jersey issues Best Egg loans, which can be funded in as little as one business day.

Oportun

3.9

U.S. News Star Rating

Founded in 2005 and based in San Carlos, California, Oportun originates unsecured personal loans of up to $10,000 in 12 states. Loans are available in 27 additional states through Oportun’s partnership with MetaBank.

LendingClub

3.7

U.S. News Star Rating

LendingClub is an online marketplace that connects borrowers and investors through its network of lending partners. LendingClub initially launched on Facebook and has evolved into an extensive peer-to-peer lender. Borrowers in all U.S. states except Iowa and U.S. territories who have fair to excellent credit can get $1,000 to $40,000 loans with LendingClub.

FreedomPlus

3.8

U.S. News Star Rating

FreedomPlus is an online lender offering personal loans from $7,500 to $50,000 to meet a range of needs and promising quick approval and disbursal. A prospective borrower begins by applying online and then talks with a loan consultant.

Prosper

3.7

U.S. News Star Rating

Prosper is a peer-to-peer lending marketplace that allows borrowers to apply online for fixed-rate, fixed-term loans. Investors such as Sequoia Capital, Francisco Partners and Institutional Venture Partners provide backing for Prosper. Since its founding in 2005, Prosper has made possible more than $20 billion in loans. Prosper lends to borrowers with at least a 640 FICO score.

LendingUSA

4.1

U.S. News Star Rating

LendingUSA was founded in 2015 as a lending solution for borrowers and merchants. The company provides point-of-sale customer financing through more than 10,000 merchant partners in various sectors, including medical, pet, funeral and other consumer services.

Universal Credit

3.5

U.S. News Star Rating

Universal Credit is an online lending platform that is powered by the fintech firm Upgrade, which has been in operation since 2017. Universal Credit is not a bank itself, but facilitates loans through its lending partners. It specializes in personal loans, especially for debt consolidation.

Advertising Disclosure: Some of the loan offers on this site are from companies who are advertising clients of U.S. News. Advertising considerations may impact where offers appear on the site but do not affect any editorial decisions, such as which loan products we write about and how we evaluate them. This site does not include all loan companies or all loan offers available in the marketplace.