Best Personal Loan Rates for December 2024

Best Personal Loan Rates for December 2024.

The best personal loan rates start below 7% and are typically reserved for the most creditworthy borrowers. Currently, personal loan interest rates range from around 8% to 36%, with the average rate sitting at 12.31%. These loans provide quick access to cash for various needs, including home improvements and debt consolidation.

At Finance Monthly, our financial experts carefully evaluated and have selected the top 10 personal loan lenders for December, ensuring they offer competitive rates and favorable terms. Our selection process focuses on four key factors: affordability, availability, customer experience, and transparency.

Here’s our Top 10 Loan Providers Picks for December 2024.

Lender	Rating	Est. APR	Loan Term	Loan Amount	Min Credit Score	Details
LightStream	4.7	6.94% - 25.29% (w/ AutoPay)	2-7 years	$5,000 - $100,000	695	Website Offer
Upstart	4.8	7.40% - 35.99%	3-5 years	$1,000 - $50,000	300	Website Offer
Achieve	4.7	8.99% - 29.99%	2-5 years	$5,000 - $50,000	620	Website Offer
LendingClub	4.5	9.06% - 35.99%	2-5 years	$1,000 - $40,000	600	Website Offer
Happy Money	4.6	8.95% - 17.48%	2-5 years	$5,000 - $40,000	640	Website Offer
Citi® Personal Loan	4.6	11.49% - 20.49%	1-5 years	$2,000 - $30,000	720	Website Offer
Upgrade	4.7	9.99% - 35.99% (w/ AutoPay)	2-7 years	$1,000 - $50,000	580	Website Offer
Best Egg	4.6	6.99% - 35.99%	3-5 years	$2,000 - $50,000	600	Website Offer
Prosper	4.6	8.99% - 35.99%	2-5 years	$2,000 - $50,000	640	Website Offer
Avant	4.7	9.95% - 35.99%	2-5 years	$2,000 - $35,000	550	Website Offer

Insight into Personal Loan Lenders

Personal loans are available from online lenders, banks, and credit unions. The best option depends on your financial needs and which lender offers the rate, term, and features that align with your situation.

• Online Lenders: These lenders provide a fast, streamlined loan process, often catering to borrowers across the credit spectrum.
• Banks: Typically require good to excellent credit (690 or higher). Some banks offer perks like rate discounts for existing customers.
• Credit Unions: More accessible to borrowers with fair or bad credit (below 690). Membership is required, but federal credit unions cap interest rates at 18%.

How to Compare the Best Personal Loan Lenders

When shopping for a personal loan, consider these factors:

Pre-Qualification

Most lenders offer pre-qualification, letting you see potential rates and terms without affecting your credit score. Pre-qualify with multiple lenders to compare offers.

Annual Percentage Rates (APRs)

APRs include interest rates and fees, giving you a clear picture of the total loan cost. Your rate depends on your credit score, income, and debt-to-income ratio (DTI).

Fees

• Origination Fees: Charged upfront and often deducted from the loan amount.
• Late Fees: Charged for missed payments.
• Insufficient Funds Fees: Applied when your account doesn’t cover a payment.

Funding Time

• Online Lenders: Typically disburse funds within one to two days.
• Banks and Credit Unions: May take up to a week.

Repayment Terms

Repayment terms generally range from 2 to 7 years. Shorter terms save on interest, while longer terms lower monthly payments. Choose a term that fits your budget.

Loan Amounts

Most lenders offer loans ranging from $2,000 to $50,000, but some go as high as $100,000. Match the loan amount to your needs, whether consolidating debt or financing a project.

Special Features

Look for perks like autopay discounts, payment flexibility, or financial planning tools. These features can add value and help you achieve your financial goals.

Making the Right Choice

Choosing the right personal loan lender means finding one that offers favorable rates, terms, and features tailored to your financial situation. Take advantage of pre-qualification, compare multiple lenders, and carefully evaluate your repayment ability to make the most of your loan.

How to Get a Personal Loan

1. Check Your Credit

Your credit score plays a crucial role in determining your eligibility and the interest rate you’ll receive. Review your credit report to identify and correct any errors that may be lowering your score. To improve your chances, reduce your debt-to-income (DTI) ratio by paying down existing debts. You can access a free credit report through sites like  AnnualCreditReport.com.

2. Pre-Qualify with Multiple Lenders

Pre-qualifying helps you understand what rates and terms you may qualify for without impacting your credit score. Compare offers from multiple lenders to find the lowest APR and monthly payments that align with your budget. Pre-qualification is a smart way to narrow your options and choose the best loan for your needs.

3. Submit a Formal Application

Once you’ve chosen a lender, complete the application process. Be prepared to provide documentation to verify your identity, income, and employment. After approval, most lenders disburse funds within a few days to a week, giving you quick access to the money you need.

Pros and cons of personal loans