Best personal loans for good credit in 2024

If you have good credit, lenders want your business, which makes it crucial to compare quotes from multiple lenders to unlock the best personal loan rates and benefits. For instance, some lenders don't charge origination fees or late fees and offer discounts for autopay and direct-pay to creditors (if you're using the loan to consolidate debt).

Compare the best personal loans for good credit

Best personal loans for good credit

Methodology

To evaluate the best personal loans for good credit, we considered interest rates and discounts, fees, consumer reviews, loan amounts, funding times, loan terms, available loan purposes, customer access, whether you can prequalify, and the ease of the application process.

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.

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.

What is a good credit personal loan?

A good credit personal loan is any personal loan potentially available to a borrower with a FICO score of 670 to 739 (scores above 739 are considered excellent). Some lenders disclose a minimum credit score borrowers need to qualify, while others don't.

In either case, lenders consider a variety of information in addition to the borrower's credit score when determining eligibility, including the borrower's income and existing debt. It's possible for a borrower with good credit to be denied a personal loan based on other financial factors.

What is a personal loan?

A personal loan is a type of installment loan available from banks, credit unions, and online lenders. A lender issues a personal loan as a lump sum of cash upfront in exchange for fixed monthly payments over several months or years.

The lender charges interest on the amount borrowed and may also charge other fees, like origination or late payment fees. Personal loans can be used for a variety of personal and household expenses, including home improvement and debt consolidation.

Types of personal loans

• Unsecured personal loans: An unsecured personal loan doesn't require collateral, which means you don't have to give the lender the right to take your property if you can't keep up with the payments. Failing to repay an unsecured personal loan can still damage your credit and could result in collections activity.
• Secured personal loans: Secured personal loans are less risky for lenders because they are secured by an asset the lender can take in the event of nonpayment. Secured loans are generally easier to qualify for and may come with lower interest rates.
• Cosigned or joint personal loans: Some lenders allow you to apply with a cosigner or co-borrower, which is someone with a strong credit profile who agrees to be responsible for the loan if you fail to repay. However, unlike a co-borrower, a cosigner does not have access to the loan funds. If you have good credit but your spouse has excellent credit, or if you have insufficient income on your own, applying for a joint or cosigned loan may improve your chances of getting a low rate.
• Debt consolidation loans: A debt consolidation loan is simply a personal loan that's used to pay off credit card or other high-interest debt. Because personal loans have lower average interest rates than credit cards, debt consolidation can save you money. While most personal loans can be used for debt consolidation, some loans are specifically designed for this purpose, with lenders, like Happy Money, offering to pay your creditors directly.
• Personal line of credit: A personal line of credit is not a personal loan, per se, but another type of unsecured, flexible funding for personal expenses. It's similar to a personal loan, except that funds are offered as a revolving line of credit rather than a lump sum. You can borrow from your credit line on an ongoing basis without needing to reapply.

How to get a good credit personal loan

The process of getting a good credit loan varies depending on the lender you choose, but you can generally expect the following when applying for personal loans with good credit:

1. Research good credit lenders: Narrow down your options by researching lenders that offer personal loans to borrowers with your credit score. Even though all lenders listed above offer personal loans for good credit, not all offer personal loans to borrowers at the lower end of the good credit range. Take note of additional eligibility requirements, loan restrictions, lender reputation, and cosigner rules, prioritizing lenders with few fees.
2. Evaluate your budget: Determine how much you can afford to spend on debt repayment each month. This will help you determine how long a repayment term you'll need.
3. Prequalify: Most lenders allow you to prequalify without hurting your credit. You'll enter some personal information to get a rate estimate and see potential loan options. Do this with a handful of lenders, either through each lender's website or via a loan comparison platform (you can do this below). Prequalification is not an offer of credit and your rates may change once you formally apply.
4. Select a lender: Compare rates and terms between quotes. Choose one with a low interest rate and a monthly payment you can comfortably afford. Use a personal loan calculator if you need to see how much interest you'll pay over the life of the loan.
5. Formally apply: Submitting an application will result in a hard credit check which may cause your credit score to dip slightly. The lender will likely require you to enter information about your employer and upload documents such as pay stubs and proof of identity.
6. Sign the agreement: Review your final loan offer, reading the fine print. You'll need to sign your loan documents before the lender can transfer the money into your bank account. Some lenders offer instant loans for good credit, with same-day funding for most applicants who apply by a specific cutoff time.

Pros and cons of personal loans

Average personal loan rates by credit score

Personal loan interest rates vary depending on your credit score, the loan term, and other factors, like your income. Below are the average personal loan rates by credit score for three and five-year loans, based on prequalification data from Credible for July of 2024. Note that borrowers with good credit pay higher average rates than those with excellent credit.

Personal loan alternatives

• Credit card: For small expenses you can repay quickly, your existing credit card may be the right tool. If you're making a large purchase and can qualify for a 0% APR credit card, you could avoid interest for up to 21 months. Just make sure you don't carry a balance past the promotional period, or you'll typically pay a high interest rate.
• Home equity loan or HELOC: If you have enough equity in your home, you can borrow against it, often with a low interest rate. A home equity loan provides a lump sum that you repay in fixed installments, while a home equity line of credit (HELOC) allows you to borrow repeatedly without reapplying, usually with a variable interest rate. Both options require you to pay closing costs upfront, and the lender can seize your home if you fail to repay.
• Stock-secured loan: A loan secured by your investment accounts can provide cash without you having to sell your stocks. You'd then repay the loan over a fixed term with a low interest rate.
• 401(k) loan: While not generally encouraged, if your plan administrator allows, you can borrow from your retirement account. But you'll need to repay the loan to avoid a tax penalty and early withdraway penalty if you're under 59 ½. The interest charged varies by plan, but is often 1% to 2% above the prime rate, and goes back into your account. You typically have up to five years for repayment, but the entire balance could become due if you leave your job.
• Buy now, pay later: BNPL is a type of financing you can get when checking out at many online retailers. It allows you to pay for your order in installments. Most BNPL providers offer a zero-interest option, which typically involves four bi-weekly payments, along with longer-term installment options, which charge interest.

FAQ

What is a good credit score?

Most personal loan lenders use the FICO score model when assessing an applicant. A good credit score is generally considered to be a FICO score of 670 to 739. If the lender uses VantageScore, a good credit score for that model is between 661 and 780.

Do personal loans affect credit score?

Most personal loans impact your credit score in a few ways:

• When applying for a personal loan, the lender runs a hard credit check, which often temporarily results in a small decrease in your credit score.
• As you make on-time payments and reduce your debt balance, your credit score may improve; but if you default, the damage to your credit can be severe.
• Adding a personal loan to your credit mix could improve your score if you don't have an installment loan on your report.
• Using a personal loan to consolidate credit card debt can result in a quick boost to your score since your credit utilization will decrease, as long as you keep your cards open.

How much of a personal loan can I get with good credit?

Your credit score isn't the only factor lenders consider when determining your loan limit. Your income and other debts may also impact how much you can borrow. Many good credit lenders offer personal loans up to $50,000, $100,000, or more. But you won't know how much money you're eligible for until you apply.

How long does it take to get a personal loan?

Most lenders fund personal loans within a few business days, but it can take up to a week after approval to receive your money, depending on your bank. Some lenders offer same-day funding for most borrowers who sign their loan documents by a specific cutoff time.

How do you calculate your debt-to-income ratio?

Your DTI is the percentage of your income spent on debt repayment. To calculate it, add your minimum monthly payments on all outstanding debts and divide that number by your gross monthly income before taxes. Then, multiply the answer by 100 to get a percentage. Most lenders prefer a DTI below 36% for personal loan borrowers, so you may want to calculate yours to find out if you qualify.