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 lightstream 4.7 6.94% - 25.29% (w/ AutoPay) 2-7 years $5,000 - $100,000 695 Website Offer
Upstart upstart 4.8 7.40% - 35.99% 3-5 years $1,000 - $50,000 300 Website Offer
Achieve achieve personal loans 4.7 8.99% - 29.99% 2-5 years $5,000 - $50,000 620 Website Offer
LendingClub lendingclub 4.5 9.06% - 35.99% 2-5 years $1,000 - $40,000 600 Website Offer
Happy Money happy money 4.6 8.95% - 17.48% 2-5 years $5,000 - $40,000 640 Website Offer
Citi® Personal Loan citi 4.6 11.49% - 20.49% 1-5 years $2,000 - $30,000 720 Website Offer
Upgrade upgrade 4.7 9.99% - 35.99% (w/ AutoPay) 2-7 years $1,000 - $50,000 580 Website Offer
Best Egg best egg 4.6 6.99% - 35.99% 3-5 years $2,000 - $50,000 600 Website Offer
Prosper prosper 4.6 8.99% - 35.99% 2-5 years $2,000 - $50,000 640 Website Offer
Avant 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

Pros Cons
Lower starting APRs compared to credit cards. Maximum APRs can be high for less creditworthy borrowers.
Fixed rates and predictable monthly payments. May include fees such as origination or late payment fees.
Flexible loan amounts to meet varying needs. Increases your overall debt burden.
No collateral required for unsecured loans.