Best personal loans with no origination fees

Some lenders charge an origination fee when you go to borrow a personal loan, which can reduce the overall amount you receive. In addition to these fees, interest rates are continuing to rise. According to Credible personal loan data from July 2024, average rates have risen by more than 2 percentage points, to 19.69%, during the last year. Adding more fees on top can feel overwhelming. 

It’s important to consider how these fees may increase the cost of your loan before you apply. Learn how origination fees work, how they can impact what you pay for a personal loan, and where to find the best personal loans with no origination fee.

Best lenders with no origination fees

All the lenders below either charge no origination fees, ever, or offer loans with no origination fees. 

Methodology

We evaluated the best personal loan lenders for no origination fees based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, 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 are origination fees?

An origination fee is a one-time fee your lender might require you to pay upfront for a personal loan. Lenders usually charge an origination fee when you get the loan, taking the amount directly from your funds. 

Origination fees help lenders cover their losses from defaulted loans. So some lenders reserve higher fees for borrowers who seem like more of a risk, such as those with little to no credit history or a low credit score.

The origination fee rolls into your annual percentage rate (APR), which includes your interest rate and upfront fees associated with your loan. If your loan has an average interest rate but a high APR, it might have a high origination fee. Be sure to check the terms of any loan before accepting it to learn whether an origination fee is involved.

How much do loan origination fees cost?

Some lenders don't add origination fees for loans, but those that do typically charge less than 1% up to 12% of the loan amount. For example, a $10,000 loan with a 10% origination fee will have $1,000 deducted from it to cover the fee, leaving you with $9,000 in funding.

Here's a look at some examples of what you can expect to pay for a personal loan origination fee. Note that these are hypothetical loans to illustrate how an origination fee can affect the amount you receive.

How to get a no-origination-fee loan 

You'll need to specifically look for personal loan lenders with no-origination-fee options if you want to avoid paying one. Some lenders don't require an origination fee from any borrowers, while others may only offer personal loans with no origination fee if you have good to excellent credit. 

Tips on comparing personal loan lenders

Several lenders offer personal loans with no origination fee, including LightStream, PNC, and SoFi. Consider the following tips when comparing lenders to find a loan that suits your financial needs:

• Make sure you're eligible: You may not qualify for a loan from every lender on your shortlist. Some lenders may not be authorized to lend money in your state, and others might require minimum credit scores higher than your current score. Cross off any lenders with criteria you don't meet before prequalifying.
• Prequalify to compare rates and terms: Personal loan prequalification lets you check your potential loan interest rates and terms before applying, and it won't affect your credit. You'll only have a hard credit check — which can temporarily lower your score — when you formally apply. Prequalify with each lender you're considering to see which ones offer the best potential rates and loan terms. 
• Look for other fees: A personal loan with no origination fees might include other fees, like late payment fees or application fees, which can increase what you pay for your funds. Consider prioritizing lenders that don't charge these fees.
• Compare discounts and benefits: Some lenders give more perks than others, like referral bonuses or same-day funding. For example, LightStream may reduce your loan's APR by 0.50 percentage points when you sign up for automatic payments. 

No-origination-fee loan requirements

To qualify for the best personal loans with no origination fee, you generally need to be considered a non-risky borrower. Lenders may require the following to qualify you for a personal loan without an origination fee:

• High credit score and solid credit history: You might be eligible for a no-origination-fee loan if you have an excellent credit history showing on-time payments and a good mix of credit, along with a FICO score of 670 or above.
• Income: The higher your income, the more your likelihood of qualifying for a no-fee loan increases.
• Smaller loans and shorter terms: Although not necessarily required for a loan with no origination fee, lenders may consider large loans and long repayment terms riskier for them to fund. Reducing the amount you borrow or shortening your repayment term could help you qualify.

Personal loan alternatives

Personal line of credit

A personal line of credit is a revolving credit line that you can use as much as you'd like, up to your credit limit. It's similar to a bank account in that you withdraw money using checks or an ATM card, giving you access to funds when you need them. However, you'll only pay back what you've used, rather than the entire amount of your credit line, which could result in a lower monthly payment than that of a personal loan.

Credit card

A credit card could be a good option for smaller purchases or ongoing purchases. They give you a revolving line of credit to borrow against as needed, and you'll make payments each month until you pay off your balance. However, be aware that the average APR on credit cards has risen dramatically over the past decade to 21.51% in May 2024, compared to 11.92% for personal loans in the same month.

How to apply for a no-origination-fee loan 

If you've decided to go ahead with a personal loan with no origination fee after comparing lenders and prequalifying, follow these steps to apply:

• Choose the best loan option: Compare your potential loan terms and rates after prequalifying with a lender or multiple lenders. Decide whether you can afford a higher monthly payment to pay off your loan faster and reduce the amount of interest you pay or if paying over a longer term is the better option for you. Lenders often give you at least a few days to consider your options and choose a loan.
• Submit the application: Fill out the lender's application to apply for the loan you want. Your lender will review your application, credit, and required documentation, like pay stubs, tax returns, or an employer statement, to determine your eligibility. You may notice your credit score dip slightly after submitting your application as a result of the lender's hard credit check.
• Review your options: If your lender approves your loan, you'll receive loan options, including the loan's terms and conditions, monthly payment, and APR. You can accept or decline any lender. If you accept, your lender will ask you to sign for the loan.
• Receive your funds: After submitting your signed loan documents to your lender, you can expect to receive your loan funds within a week, although some lenders pay out loans by the next business day.

Other personal loan fees to consider

Origination fees aren't the only fees lenders might charge. Depending on your lender, you could also see the following fees:

• Application fees: Although uncommon, some lenders charge small fees — usually $25 or $50 — when you apply for a loan, often to weed out borrowers who may not be serious about applying. 
• Insufficient fund fees: If your check or electronic payment is declined due to insufficient funds in your account, your lender may charge a fee of up to $50, although the allowable amount varies by state.
• Late fees: Lenders may charge fees for late payments. Late fees are usually 3% to 5% of your monthly payment, but some states permit lenders to charge up to 15%.

FAQ

Do all personal loans have origination fees?

No, not all personal loans have origination fees. In fact, many lenders don't charge origination fees at all, and others offer no-origination-fee loans to well-qualified borrowers.

What is a good origination fee for a loan? 

Origination fees generally range from less than 1% to 12% of a loan amount. The lower the origination fee, the better. To illustrate, a $10,000 with a 12% origination fee results in a $1,200 origination charge, compared to a $100 charge for the same loan with a 1% origination fee.

How to avoid loan origination fees

If a lender charges all borrowers origination fees, there's usually no way to avoid them with that lender. However, you can look for lenders offering personal loans with no origination fees to prequalify with.

Generally, having good to excellent credit can help you qualify for a personal loan without an origination fee. 

How can a no-origination-fee loan save you money?

Some lenders charge an origination fee of up to 12% of your total loan amount, which can be costly for large loans. Lenders also deduct this amount from your loan, so you'll receive less when your lender funds your loan. If you apply for a personal loan with no origination fee, you can typically access your entire loan amount once it's funded.

Are origination fees negotiable?

Personal loan origination fees generally aren't negotiable. To avoid costly origination fees, look for lenders that don't charge them to any borrowers.