Best personal loans for excellent credit

If you have a FICO score of 800 or above—and 21.9% of Americans do, Experian reports—you're in luck if you're looking for a personal loan. Lenders typically reserve their lowest rates, highest loan amounts, and most favorable terms for borrowers with excellent credit.

But how can you leverage your score to qualify? Below, we compare lenders offering the best personal loans for excellent credit and provide tips on research, qualifying, and the application process to help you understand your options.

Compare the best personal loans for excellent credit

Best personal loan lenders for excellent credit

SoFi: Best personal loans for excellent credit

Discover: Best for low-interest-rate personal loans

LightStream: Best for home improvement loans

Splash Financial: Best quick loans for good credit

Best Egg: Best for close rates if pre-approved

BHG Financial: Best for large personal loans

LendingClub: Best for online experience

Methodology

We evaluated the best personal loan lenders for excellent credit based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, minimum credit score requirements, loans perks, and whether cosigners are accepted. Our team of experts gathered information from each lender's website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Read our full lender rating methodology for more information.

What is an excellent-credit loan?

Excellent-credit loans are products reserved for borrowers with strong credit histories and high credit scores. Lenders consider a FICO score of 800 or higher an excellent score, as it highlights healthy borrowing habits like paying your debts on time and having a good mix of credit types (for example, a mortgage, credit cards, and a personal loan).

Personal loans for excellent credit can have high maximum loan amounts. Depending on the lender and your income, you may be able to qualify for up to $100,000 or more. (BHG, a partner lender, offers loans as high as $200,000).

Perhaps most importantly, you could be approved for a lender's lowest advertised annual percentage rate (APR). For instance, Lighstream's APRs start at 6.99%. Having excellent credit could also help you avoid origination fees - a one-time charge that can be as high as 12% of your loan, depending on the lender. High origination fees, however, are more typically required for bad-credit loans.

Pros and cons of personal loans

The best personal loans for excellent credit may help you cover unexpected expenses or pay for a large purchase, but they're not always the best solution. Consider the following pros and cons.

Pros

• Lump sum: Once you get approved for a personal loan for excellent credit, you'll receive your payment in a lump sum, giving you control over when to use your funds. (In the case of debt consolidation loans, the lender may pay your creditors directly. Some even offer a rate discount for choosing this option.)
• Fixed monthly payments: Your lender typically sets your monthly payment for a fixed amount covering principal and interest. These payments won't change over the life of the loan.
• Fixed interest rate: Personal loans tend to have fixed rather than variable rates. Fixed rates remain the same throughout your term, so you won't have unexpected changes in your payments from fluctuating rates.
• Lower interest rates on average than credit cards: Personal loans tend to have lower average APRs compared to credit cards, which can save you money long-term. The average APR on a 2-year personal loan is 11.92%, according to the latest data from the Federal Reserve, compared to 21.51% for credit cards.
• Multi-purpose: Like a credit card, you can use a personal loan for a wide range of expenses, such as debt consolidation, home renovations, and major purchases. Just note that the lender needs to approve the loan purpose beforehand and not all lenders offer loans for all loan purposes.

Cons

• No additional borrowing: Your lender approves your loan for a specific amount. You can't borrow above this amount if you need to, like you could with a revolving form of credit like a credit card or home equity line of credit.
• Payments aren't adjustable: While fixed monthly payments give you a payment you can plan for every month, you can't adjust your loan's payment if you need to pay a little less occasionally to accommodate other expenses.
• Potentially high fees: Some lenders charge costly origination fees when you get approved for your loan, which they deduct from your loan funds. Excellent credit can help you avoid this, but not with all lenders. Lenders can also charge late fees and application fees.

Current rates on excellent-credit loans

According to Credible data from July 2024, a credit score of 780 or above can yield average interest rates of 13.15% to 16.75% for three- and five-year loans. A score of 720 to 779 leads to higher average rates of 16.88% to 20.49%.

How to get a personal loan

Although personal loan requirements vary by lender, it's common for lenders to consider the following factors when reviewing your loan application:

• Credit score and history: Lenders tend to prefer applicants with credit scores of 670 or higher and little to no negative marks on their credit reports, like missed payments or several recent hard inquiries. Many lenders have minimum credit score requirements for approval. For example, First National Bank of Omaha requires a minimum FICO score or VantageScore of 620, while Upstart considers applicants with a credit score of 300. Excellent-credit loans may require a FICO score of 800 or above.
• Income and employment status: Your income and length of employment can affect your loan eligibility. If you request a $10,000 loan, the lender will want your income to be high enough to reasonably afford your monthly payment. Many often have income minimum as well. For example, Discover requires at least $25,000 annually in household income to qualify for a personal loan.
• Debt-to-income ratio (DTI): DTI measures how much of your income goes toward debt. A person earning $5,000 per month before taxes with debt payments of $2,500 has a DTI of 50%. Lenders often prefer DTI to be 36% or lower.
• Co-borrower information: If you add a co-borrower to your application, they'll go through the same evaluation process as you. A co-borrower who also has excellent credit could help you qualify for a personal loan, but things like a high DTI or low income could interfere with your approval.

Tips on comparing excellent-credit loans

Some personal loans for excellent credit may fit your financial situation or have easier requirements than others. When comparing lenders and loans, consider:

• Lender requirements: Some lenders have more comprehensive requirements than others. Check a lender's website for eligibility criteria before applying.
• APR: APR accounts for the interest rate and any upfront loan fees, giving you an idea of how much you can expect to pay to borrow money. A loan with a low APR could save you money versus a high-APR loan.
• Loan amount: Many lenders offer excellent-credit loans of up to $50,000 or more, but you may not be eligible for all bigger loans. Loan prequalification can help you see what loans you might qualify for with a lender without affecting your credit.
• Loan terms: Shorter loan terms can help you pay less in interest, but longer loan terms might lower your monthly payment. Decide whether saving money on your entire loan or paying less each month makes more sense for you.
• Funding times: How quickly do you need a loan? Some lenders fund loans within one business day of your approval, while others can take up to a week.

Personal loan alternatives

Even the best personal loans for excellent credit may not be the best solution for you, depending on how much you need to borrow or the interest rates available to you. Here are a few additional options to consider.

Credit card

If you have a credit card with a credit limit high enough to accommodate the amount you need to borrow, you could use it like a loan. Use your card to fund your purchase and make payments monthly until you pay it off. Many credit card issuers offer grace periods from the end of your billing cycle to your payment date when no interest is charged, allowing you to avoid paying interest if you pay off your balance by the due date.

Additionally, some credit card companies offer 0% APR promotional periods, like the Citi Simplicity card. This would allow you to avoid paying any interest if you pay off the balance within the promotional period. Some promotional periods can last as long as 21 months or more. Keep in mind that once the period ends the APR will kick in.

Personal line of credit

A personal line of credit lets you borrow what you need up to a limit, similar to a credit card. However, personal lines of credit can have lower APRs than credit cards - for example, Fifth Third Bank offers personal lines of credit with APRs from 10.75% to 12.25%. Line amounts commonly max out at $25,000, but some lenders may offer larger amounts.

Unlike a personal loan, you can continue borrowing against your line of credit without reapplying as long as it's active, which could be indefinitely or a set number of months, depending on the lender. Repayment terms vary, but rates are typically variable, meaning your payment could change over time.

Home equity financing

Borrow against your built-up home equity with a home equity line of credit (HELOCs) or loan. With a HELOC, you can borrow repeatedly as needed, while a home equity loan gives you a set amount. Either option usually comes with a lower interest rate than personal loans because they use your home as collateral to guarantee the loan.

You are typically able to borrow up to 80% or more equity in your home with both a HELOC and home equity loan. Keep in mind that closing costs do apply (around 2% to 5% of your total) and receiving your loan could take up to 30 days.

How to apply for a personal loan

Once you're ready to apply for a personal loan, follow these steps:

1. Check your credit: Knowing where your credit stands can help you find a personal loan lender whose qualifications you meet. Check your credit report for free with AnnualCreditReport.com.
2. Prequalify with multiple lenders: Personal loan rates for excellent credit vary by lender, and prequalifying lets you see what rates and terms you might be eligible for with different lenders. This process won't harm your credit; however, your score may drop a couple of points when you formally apply and undergo a hard credit check.
3. Compare loan options: Research your loan options from each lender to find the best personal loans for excellent credit. Pay attention to fees, loan terms, interest rates, and monthly payments.
4. Apply for a loan: Have you found a suitable loan? Go ahead and apply using the lender's application process. You'll typically need to verify your identification and income, so have a valid ID and pay stubs or tax returns handy.
5. Review your offer: If the lender approves your loan, you will be able to see your options for a loan. Carefully review to ensure the loan's terms are what you expected before signing.
6. Get your loan: Once signed and submitted to your lender, your loan will be processed for funding. This can take anywhere from one business day to one week if your lender uses direct deposit for funding.

FAQ

What can't you use a personal loan for?

A personal loan usually can't be used to pay for college tuition or a down payment on a home. Using a personal loan for gambling or other illegal activities is also prohibited. Lenders may have other guidelines as to how the funds can be used, so it's best to check with each lender.

How big of a personal loan can I get?

Some lenders, like Alliant and LightStream, offer personal loans for up to $100,000. However, lenders consider your income, credit history, and loan use when determining how much to let you borrow.

Does applying for a loan hurt your credit?

Applying for a loan could reduce your credit score temporarily due to the lender's hard inquiry on your credit report. However, the ding to your credit is likely to be more noticeable if you apply for multiple loans over an extended period. Typically, hard inquiries are lumped together as a single inquiry if they occur within 14 to 45 days of one another and are for the same loan type.

How does a personal loan affect your credit score?

You may notice a dip in your credit score after initially applying for a personal loan. Then, as you make monthly payments on time, you could see your score increase. In contrast, late payments on your loan may reduce your credit score.