APR stands for annual percentage rate and refers to the extra amount borrowers pay on top of their loan amount, or principal. APR is different from your interest rate; it equals your interest rate plus any loan fees.

What's the difference between a secured loan and an unsecured loan?

Secured loans are backed by a piece of the borrower’s property as collateral, typically a vehicle or house. Because the borrower stands to lose personal property if they default, secured loans tend to have lower interest rates. Unsecured loans are not backed by collateral, but instead by the borrower’s creditworthiness. Because the lender takes on more of a risk with an unsecured loan, interest rates tend to be higher. Lenders also require that borrowers seeking unsecured loans have higher-than-average credit scores. Learn more about the key differences between secured and unsecured loans.

What documents are required for personal loans?

You will generally need several documents to apply for a personal loan, including documents that prove your identity and financial status. You'll generally need at least an ID, income verification and proof of address. These documents and the rest of your information will help the lender determine what origination fee you will pay if applicable.

How much will a personal loan cost?

Personal loan costs vary by lender. For excellent credit, there are some lenders that don’t charge any fees. You’re only responsible for paying back the principal (or the amount you borrowed) plus interest. The lower your interest charges, the less you’ll pay back over the life of the loan.

Where can I get a personal loan?

When it comes to shopping for personal loans, the better your credit score, the more options you have. Generally speaking, there are three main places that provide personal loans: Online lenders: Online lenders also make it easy to compare rates, APRs and fees and apply online. Banks: Applying with a bank could get you a lower rate or access to other member benefits if you have an existing banking relationship. Plus, it could be a good option if you prefer in-person customer service Credit unions: A local credit union may offer more affordable rates and fees than banks and online lenders, especially if you're already a member. However, it's important to be aware that some credit unions may not offer prequalification, so applying could cause a temporary dip in your credit score.

What can you use a personal loan for?

While it may depend on the lender, a personal loan can generally be used for any legal expense. The most common uses for a personal loan are debt consolidation, home renovations and emergency expenses. However, some lenders do restrict certain uses, like using the funds to pay for education-related costs.

How much can you borrow with a personal loan?

The exact loan amounts available often depend on your credit score and the lender. Borrowers with excellent credit are more likely to have access to the full range of loan amounts that a lender offers. Most lenders have minimum loan amounts from $1,000 to $5,000, and maximums can stretch from $50,000 to $100,000.

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

Lenders often use your debt-to-income ratio — your total debt as compared to your annual income — as an indicator of financial health; most recommend a DTI of under 50 percent for approval. Before applying, calculate your DTI through a calculator or manually add up your debts and divide the total amount about your monthly gross income.

Best personal loan rates for July 2026

Written by

Denny Ceizyk

Edited by

Kellye Guinan,

Reviewed by

Thomas Brock, CFA, CPA,

Expert verified

Updated on Jul. 31, 2026

What to know first: The best personal loan rates start at 6.20% if you have stellar credit and stable income. However, the typical rate APR range is between 8% and 36%, with an average of 12.41%, according to the most recent Bankrate data. Read our methodology to learn how we select lenders with the most competitive rates and best overall loans.

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Citi® Personal Loan Personal Loan: Best overall

APR: 9.99% - 17.49%
Minimum credit score: 680
Estimated monthly payment: $368
Loan amount: $2K - $30K
Bankrate score: Bankrate score: 4.6 out of 5
Best overall

Upgrade Personal Loan: Best for debt consolidation

APR: 7.74% - 35.99%
with AutoPay
Minimum credit score: 600
Estimated monthly payment: $393
Loan amount: $1K - $50K
Bankrate score: Bankrate score: 4.6 out of 5
Best for debt consolidation

LightStream Personal Loan: Best for home improvement loans

APR: 7.24% - 24.89%
with AutoPay
Minimum credit score: Not disclosed
Estimated monthly payment: $371
Loan amount: $5K - $100K
Bankrate score: Bankrate score: 4.5 out of 5
Best for home improvement loans

SoFi Personal Loan: Best online lender

APR: 6.99% - 35.49%
with all discounts
Minimum credit score: 300
Estimated monthly payment: $389
Loan amount: $5K - $100K
Bankrate score: Bankrate score: 4.7 out of 5
Best online lender

Patelco Personal Loan: Best credit union loan

APR: 9.30% - 17.90%
Minimum credit score: 680
Estimated monthly payment: $366
Loan amount: $300 - $100K
Bankrate score: Bankrate score: 4.5 out of 5
Best credit union loan

Happen Bank Personal Loan: Best for emergency loans

APR: 6.53% - 35.99%
Minimum credit score: 600
Estimated monthly payment: $389
Loan amount: $1K - $75K
Bankrate score: Bankrate score: 4.7 out of 5
Best for emergency loans

Discover Personal Loan: Best no-fee loan

APR: 7.99% - 24.99%
Minimum credit score: 660
Estimated monthly payment: $374
Loan amount: $2.5K - $40K
Bankrate score: Bankrate score: 4.8 out of 5
Best no-fee loan

Upstart Personal Loan: Best for thin or no credit

APR: 6.20% - 35.99%
Minimum credit score: 300
Estimated monthly payment: $387
Loan amount: $1K - $75K
Bankrate score: Bankrate score: 4.7 out of 5
Best for thin or no credit

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Our team researched the best personal loan options available so you can compare lenders in one place.

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How to shop for a personal loan

When you compare personal loan rates, start by assessing what's most important to you in a personal loan. Ask yourself these questions:

How fast do you need the funds? Some lenders offer funds the same day you apply. Others may take several business days.
How quickly do you want to pay the loan off? Can your budget handle the payment on a two- or three-year repayment term? Or is your goal to have the lowest possible payment with a longer term?
Is the loan part of a broader financial plan? Are you focused on increasing your credit scores by consolidating credit card debt? Are there home improvements that could boost your value without tying up your home's equity?

Check your credit scores.

Your credit score has the most impact on the personal loan rate you’re offered: The higher your score, the lower your APR will generally be.
If your score is too low, you might not qualify with many of lenders. Checking your score is easy — many credit card issuers provide it in your online account, or you can go directly to a credit bureau’s website. For instance, TransUnion and Experian offer credit scores for free.
One shortcut is to consider a joint personal loan with a co-applicant.
Pick an affordable repayment term.

Being realistic about how much personal loan you can afford can save you money and stress down the road. Use a personal loan calculator to get started — it can illustrate how different terms, rates and fees could impact your budget.
Next, create or update your budget to determine how much of your cash-flow you could reasonably afford to put toward loan repayment. Once you know your ideal monthly payment amount, you can aim for a certain APR and term.
Prequalify with at least three lenders.

Choose lenders that allow you to prequalify for a personal loan so you can compare rates without damaging your credit scores. Since the process doesn’t involve a hard credit check, the terms you see are estimates and might differ from the offer you’ll get when you apply. Still, prequalification gives you a good idea of what you’re working with and allows you to comparison shop.
Additionally, watch for fees — some lenders charge origination fees of more than 10% of the amount you borrow.
Finalize your loan.

Once you’ve picked the lender, complete a full application. Lenders may require pay stubs, tax documents or other additional personal loan documents to prepare your final loan documents. Have those ready to speed up the process. Finally, review the final terms of your loan to make sure the fees and APR match your expectations.
Get your funds and start making payments.

Once you sign the loan agreement, some lenders may be able to fund your loan within one business day. Consider signing up for automatic payments to make repayment easier and take advantage of an APR discount, if your lender offers it.

Calculate your loan payment

- Loan amount: Enter how much you want to borrow. Personal loan amounts typically range from $1,000 to $50,000 — but some lenders offer personal loans up to $100,000.
- Loan term: Personal loan terms usually range between one and seven years. Experiment with shorter and longer terms to find the right payment for your budget.
- Loan interest rate: Enter the rate here. As of June 10, 2026, the average personal loan interest rate is 12.28%.
- Total loan amount paid: This is the principal amount you borrow.
- Total cost of loan: This is how much you’ll pay, including interest charges, over the term you choose.
- Total interest paid: This is how much interest you’ll pay if you keep the loan for the full term. Keep in mind, the longer the term, the more interest you’ll pay.

When is the right time to get a personal loan?

The best time to get a personal loan is when you have a solid, predictable income and want a definite payoff date for the money you borrow.

“While it helps to borrow in a low-rate environment, focus on what's under your control," says Andrew Pentis, Bankrate’s principal watchdog reporter. "Borrowing when you have improved credit, dependable income and a realistic plan for repayment will put you in the best position to enjoy the upsides of a personal loan without experiencing the downsides.”

The economy can impact the terms you can get, but the right timing has more to do with your personal situation and goals.

The best time to get a personal loan depends more on your individual situation and is less about macroeconomics.
Andrew Pentis, principal watchdog report for bankrate

With that in mind, you should base your decision on whether to borrow a personal loan on your own financial goals and needs. Here are a few scenarios when a personal loan makes sense:

You want to consolidate high-interest-rate credit cards.

Average rates on personal loans are nearly 8 percentage points lower than average credit card rates. That could save you a bundle in interest charges. A bonus: Your credit score could improve because of the drop in your credit utilization ratio. And if your credit is already in great shape, consider a balance transfer card as an alternate option. That way, you can avoid interest entirely by paying off the balance within the 12- to 21-month promotional window.
You need money to cover an emergency.

If you have unexpected expenses that your savings don’t cover, you want to get low-cost financing — and an emergency personal loan is one of the options. Personal loans aren't secured, and approval typically involves little more than proof of a job and address, a qualifying credit score and proof of identity. Some lenders even offer same-day funding.

Or, if you need to bridge a gap until your next paycheck, but want to avoid the 400% APR trap of a traditional payday loan, look into credit union payday alternative loans (PAL), which are offered through federal credit unions. If you’re already a credit union member, a PAL is the safest way to borrow up to $2,000 without a high credit score.
You don't want secured financing.

If you’re upgrading your home, a personal loan can give you the funds you need. While it’s a viable option, keep in mind that such projects are notorious for running over the budget. Alternatively, you could dip into your home equity for financing. With a home equity loan, you receive a lump sum with a predictable interest rate and a long repayment term, making it a stable alternative for major expenses. Or you could get a home equity line of credit (HELOC). This revolving line of credit offers lower rates than most personal loans, but it uses your home as collateral, meaning you risk foreclosure if you can’t pay.

“You don't have to guess which product is best for your situation,” Pentis says. “Rate-shop both among banks, credit unions and online lenders without submitting to hard checks on your credit. Then, you can weigh, say, whether a potentially lower rate on a HELOC is worth putting your home up as collateral."

Frequently asked questions

Some lenders offer same-day approval and disbursements, while others may take up to a few days to deposit the cash into your account. The time it takes to get a loan will depend on the lender and if you meet the application requirements.
A personal loan can impact your credit score in a negative or positive way, depending on how you manage it. Applying for a loan will temporarily drop your credit score by a few points, but adding a new credit type to your mix and making payments responsibly can raise your score over time.

However, if you default on a personal loan, your credit will take a huge hit. It can also remain on your credit report for up to seven years, which can make it difficult to get approved for loans down the road.
Personal loans are highly versatile because they aren’t tied to a specific asset like a car or a home. While you can use the funds for almost any legal purpose, they are best used as a tool to consolidate high-interest debt or finance major life milestones that you can't cover with savings. Additionally, most lenders explicitly prohibit using funds for college tuition, gambling, or speculative investments like stocks or crypto.

Learn more about personal loans

Want to know a little bit more about personal loans before you start shopping? Get the knowledge you need to feel comfortable about your final loan decision.

What is a bad credit personal loan?

Some legitimate lenders specialize in loans for bad credit, but you can expect to pay higher interest rates and fees.

5 ways to pay off a personal loan early

Paying off a personal loan quickly could save big dollars on interest, but could also strain your budget if you're not careful.

How to boost your personal loan approval odds

Learn what you can do to boost your odds of a thumbs up on your personal loan application.

The best way to pay off a personal loan

Find out what happens if you can't repay a personal loan, and what you can do to avoid major credit damage.

Meet our Bankrate experts

Written by

Denny Ceizyk Denny Ceizyk

Former Senior Writer, Loans

How we choose our best personal loan lenders

Bankrate's trusted personal loans industry expertise

Read our full methodology

years in business

lenders reviewed

loan features weighed

900

data points collected

To select the best personal loans, Bankrate’s team of experts evaluated over 40 lenders. The lenders that earned a spot on our best personal loans list offer competitive APRs (many starting below 8%), multiple repayment term options, a wide variety of loan amounts, fast funding and accessible credit criteria. We also considered each lender's track record for customer service, as measured by consumer reviews and independent third-party agencies like the BBB and JD Power. Lenders that offer opportunities for rate discounts, hardship options and unique perks also fared well.

We also assign each lender a Bankrate score based on a meticulous 20-point system, focusing on four main categories:

The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score. We also give bonus points to lenders offering rate discounts, grace periods and that allow borrowers to change their due date.
Minimum loan amounts, number of repayment terms, eligibility requirements, ability to apply using a co-borrower or co-signer and loan turnaround time are considered in this category.
This category covers customer service hours, if online applications are available, online account access and mobile apps.
For this factor, we consider how well information is presented to the borrower on the lender’s website. This includes listing credit requirements, rates and fees, in addition to offering prequalification.

Best personal loan rates for July 2026

Best personal loans

How Bankrate works

How Bankrate works

Compare rates

Tell us the basics

Get matched and receive funding

How to shop for a personal loan

Check your credit scores.

Pick an affordable repayment term.

Prequalify with at least three lenders.

Finalize your loan.

Get your funds and start making payments.

Calculate your loan payment

How the loan calculator works

What the estimated monthly payment box tells you

When is the right time to get a personal loan?

You want to consolidate high-interest-rate credit cards.

You need money to cover an emergency.

You don't want secured financing.

Frequently asked questions

How long does it take to get a personal loan?

How does a personal loan affect your credit score?

What can a personal loan be used for?

Learn more about personal loans

Meet our Bankrate experts

How we choose our best personal loan lenders

Bankrate's trusted personal loans industry expertise

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Availability

Customer experience

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