Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
When shopping for a personal loan, most borrowers make the interest rate their top priority. The lower the interest rate, the less the total cost of the loan will be. While other factors like fees and term lengths also are important when when selecting a lender, interest rates are critical in making your final choice.
We’ve compiled a list of the best low-interest personal loans, only choosing lenders with a minimum rate below 7%. Keep in mind that you’ll only qualify for loans with the lowest interest rates if you have an excellent credit score.
Best low interest personal loans
Editor’s rating
Regular Annual Percentage Rate (APR)
5.99% to 23.99% with AutoPay (Rates as of 12/26/2022. Rates vary by loan purpose.)
Editor’s rating
Regular Annual Percentage Rate (APR)
5.99% – 19.97%
Editor’s rating
Regular Annual Percentage Rate (APR)
5.99% to 35.99%
Editor’s rating
Regular Annual Percentage Rate (APR)
6.50% to 35.99%
Editor’s rating
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Editor’s rating
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Editor’s rating
Regular Annual Percentage Rate (APR)
6.99% to 35.99%
Editor’s rating
Regular Annual Percentage Rate (APR)
6.99% to 23.24% (with relationship discount)
Best for high maximum loan amount: Lightstream
LightStream Personal Loan
Regular Annual Percentage Rate (APR)
5.99% to 23.99% with AutoPay (Rates as of 12/26/2022. Rates vary by loan purpose.)
LightStream Personal Loan
Regular Annual Percentage Rate (APR)
5.99% to 23.99% with AutoPay (Rates as of 12/26/2022. Rates vary by loan purpose.)
from participating partners with Fiona
Details
Regular Annual Percentage Rate (APR)
5.99% to 23.99% with AutoPay (Rates as of 12/26/2022. Rates vary by loan purpose.)
Pros & Cons
Highlights
Additional Reading
For borrowers looking to fund large expenses with a low-interest loan, LightStream offers amounts of as much as $100,000. The company offers same-day funding if the application is approved, verified, and signed before 2:30 p.m. ET.
LightStream also has a wide range of repayment term lengths, from two to 12 years. This is great if you’re looking to spread out the cost of your loan over a long period.
Watch out for: Lightstream doesn’t have preapproval. Borrowers looking for low-interest loans like to shop around to compare rates. Usually, this involves getting preapproved by several different companies and comparing the offers before settling on one. LightStream doesn’t offer preapprovals for its personal loans. You’ll have to go through the full approval process. That includes a hard pull of your credit report, which can temporarily lower your credit score.
Read Insider’s full review of Lightstream.
Best for low minimum APR: American Express
American Express Personal Loans
Regular Annual Percentage Rate (APR)
5.99% – 19.97%
American Express Personal Loans
Regular Annual Percentage Rate (APR)
5.99% – 19.97%
On American Express’s website
Details
Regular Annual Percentage Rate (APR)
5.99% – 19.97%
Pros & Cons
Highlights
American Express is tied with LightStream and Reach Financial for the lowest minimum APR of any of the lenders on our list. If you have an excellent credit score and can qualify for the lowest interest rate, this could be a great lender for you.
The company also gets you funds quickly. Borrowers will usually get their money within one to two business days after loan approval.
Watch out for: Eligibility requirements. To get a personal loan with American Express, you need to be a card member. You need a relationship with the company outside of your personal loan, which may be an added step you prefer to avoid.
Read Insider’s full review of American Express.
Best for debt consolidation: Reach Financial
Reach Financial Personal Loan
Fees
Origination fee ranges from 0% to 5%, $15 late fee
Regular Annual Percentage Rate (APR)
5.99% to 35.99%
Reach Financial Personal Loan
Fees
Origination fee ranges from 0% to 5%, $15 late fee
Regular Annual Percentage Rate (APR)
5.99% to 35.99%
On Reach Financial’s website
Details
Regular Annual Percentage Rate (APR)
5.99% to 35.99%
Fees
Origination fee ranges from 0% to 5%, $15 late fee
Pros & Cons
Highlights
For borrowers looking for a low-interest personal loan for debt consolidation, Reach Financial could be a good choice.
Reach Financial has a very fast funding speed. The company pays off your creditors directly — you won’t have any money go into your account — and will do so within roughly 48 hours after your loan is approved.
The company’s loan minimum is relatively low — you’re able to take out a loan as small as $3,500.
Watch out for: Limited loan purpose. You’re only able to use your loan funds to consolidate or refinance debt. The other lenders on our list allow borrowers to use a personal loan for pretty much any purpose. Borrowers looking to cover other expenses will have to choose a different lender.
Read Insider’s full review of Reach Financial.
Best for low credit scores: Upstart
Fees
Origination fee up to 8%, late fee of 5% or $15, whichever is greater
Regular Annual Percentage Rate (APR)
6.50% to 35.99%
Fees
Origination fee up to 8%, late fee of 5% or $15, whichever is greater
Regular Annual Percentage Rate (APR)
6.50% to 35.99%
Details
Regular Annual Percentage Rate (APR)
6.50% to 35.99%
Fees
Origination fee up to 8%, late fee of 5% or $15, whichever is greater
Pros & Cons
Highlights
Additional Reading
If you’re looking to get a personal loan with a lower interest rate quickly, you may want to go with Upstart. With this lender, may be able to get you your money on the day after you apply.
Upstart’s minimum credit score is just 600. If you have a poor credit history, it may be easier to qualify for a loan with this lender than with some of the others on our list. Keep in mind that you’ll usually be charged a higher interest rate with a lower credit score.
Watch out for: High origination fees. Upstart’s personal loans can have origination fees of as much as 8%. On a $5,000 loan, for example, that would work out to an origination fee of $400.
Read Insider’s full review of Upstart.
Best for no fees: Marcus by Goldman Sachs
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
from participating partners with Fiona
Details
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Pros & Cons
Highlights
Marcus by Goldman Sachs is one of the few lenders on our list of low-interest personal loans that doesn’t charge any fees. This will reduce the cost of your loan overall. Origination fees — which are standard for some other companies — are deducted from your total loan proceeds.
The company also has an on-time payment reward, which allows you to skip a month of payments if you pay your loan on time and in full every month for one year. You won’t be charged interest during that period. Marcus will then extend your loan term by one month.
Watch out for: No co-borrowers allowed. If your credit history isn’t in the best shape and you’re hoping to add a co-signer to boost your chances of approval or to get a lower rate, you won’t be able to do so with Marcus. Other lenders on our list, like Prosper, may be a better choice in that scenario.
Read Insider’s full review of Marcus by Goldman Sachs.
Best for money-back guarantee: Discover
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Details
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Pros & Cons
Highlights
A key feature of Discover that separates it from other lenders is its 30-day money-back guarantee. If you decide within 30 days of getting your loan that you don’t want it anymore, you may return the funds via check and won’t be charged any interest. This may be helpful if you find a lender with a lower interest rate or if you end up not needing the loan amount you initially requested.
Discover also has repayment terms ranging from three to seven years, so you have options if you want to spread out the cost of your loan. You’re also able to pay off your loan early at any time without a fee.
Watch out for: Hefty late fee. Discover charges a late fee of $39. If you fall behind on your payments, those fees will increase the overall cost of your loan. Some other lenders on our list don’t charge any fees.
Read Insider’s full review of Discover.
Best for co-signed loan: Prosper
Fees
Origination fee between 2.4% to 5%, depending on your financial situation. Late fees are 5% of the payment amount or $15, whichever is greater
Regular Annual Percentage Rate (APR)
6.99% to 35.99%
Fees
Origination fee between 2.4% to 5%, depending on your financial situation. Late fees are 5% of the payment amount or $15, whichever is greater
Regular Annual Percentage Rate (APR)
6.99% to 35.99%
from participating partners with Fiona
Details
Regular Annual Percentage Rate (APR)
6.99% to 35.99%
Fees
Origination fee between 2.4% to 5%, depending on your financial situation. Late fees are 5% of the payment amount or $15, whichever is greater
Pros & Cons
Highlights
Additional Reading
Prosper allows you to add a co-borrower to your account, a feature not all lenders offer. Enlisting a co-signer can help you get a lower interest rate on your personal loan than you would’ve otherwise received, or qualify for a loan that was out of reach on your own.
The company also has a low loan minimum of $2,000 and may be a good option for borrowers who only need a little bit of cash.
Watch out for: Many eligibility requirements. You’ll have to clear many obstacles to qualify for a Prosper personal loan. This includes a minimum credit score of 640, a debt-to-income ratio below 50%, and fewer than five credit bureau inquiries (excluding duplicate inquiries) within the last six months.
Read Insider’s full review of Prosper.
Best brick-and-mortar lender: Wells Fargo
Wells Fargo Personal Loan
Fees
Up to $39 late payment fee
Regular Annual Percentage Rate (APR)
6.99% to 23.24% (with relationship discount)
Wells Fargo Personal Loan
Fees
Up to $39 late payment fee
Regular Annual Percentage Rate (APR)
6.99% to 23.24% (with relationship discount)
from participating partners with Fiona
Details
Regular Annual Percentage Rate (APR)
6.99% to 23.24% (with relationship discount)
Fees
Up to $39 late payment fee
Pros & Cons
Highlights
Additional Reading
Wells Fargo is one of the largest banks in the country, with roughly 4,700 locations in 36 states. Borrowers looking for a low-interest personal loan who prefer face-to-face interactions will find ample opportunities to connect with a Wells Fargo representative. States where branches aren’t available are Ohio, Michigan, Kentucky, West Virginia, Missouri, Oklahoma, Louisiana, Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, and Hawaii.
Wells Fargo also has a high maximum loan limit of $100,000, which is perfect for borrowers who need to finance a large purchase.
Watch out for: History of controversies. Wells Fargo’s recent past has been mired in scandals, including a December 2022 ruling from the Consumer Financial Protection Bureau ordering the bank to pay a $3.7 billion penalty as a result of widespread legal violations, including in the auto and mortgage loan space. Other lenders on our list don’t come with the same baggage.
Read Insider’s full review of Wells Fargo.
Other personal loan companies we considered
- SoFi. SoFi is an excellent personal loan lender, with no fees and an unemployment protection program. However, it has a higher minimum credit score requirement than any of the lenders on our list, and its minimum rate isn’t as low as the lenders we’ve chosen.
- Avant. Avant is a great lender for borrowers with bad credit, as it recommends a credit score between 600 and 700 to qualify for a loan. However, its minimum rate is higher than all of the lenders on our list.
- PenFed Credit Union. PenFed is one of our best credit unions for personal loans, with a low loan minimum of just $600. However, you need to be a member to get a loan, and its lowest rates are higher than the lenders we picked.
Which lender is the most trustworthy?
We’ve looked at each institution’s Better Business Bureau score to offer you another piece of information to pick a company that provides low-interest personal loans. The BBB measures businesses based on factors like their responsiveness to customer complaints, truthfulness in advertising, and openness about business practices. Here is each company’s score:
Our top picks are rated A+ or higher by the BBB, with the exception of Wells Fargo, which has a history of problematic behavior.
Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.
In 2019, the company paid the city of Philadelphia $10 million as a result of the city’s claims that Wells Fargo engaged in predatory mortgage lending to racial minorities.
If these and other legal issues with Wells Fargo in recent years make you uncomfortable, you may consider getting a personal loan from a different lender.
Know that a high BBB score does not ensure a positive relationship with a credit card consolidation loan provider, and you should keep researching and talk to others who have used the company to get the most complete information possible.
Frequently asked questions
Generally, the best way to get a low rate on a personal loan is to have an excellent credit score. While you can’t dramatically improve your credit score overnight, you can start by making sure you pay your bills on time and in full. Additionally, you can reduce your credit utilization ratio, or the amount of credit you’re using divided by the total credit available to you.
The lenders we have on our list are a great place to start looking for a low-interest personal loan. We’ve compiled lenders with the lowest minimum rates on the market, so you’ll likely find the best deals here — provided you have a great credit score.
Methodology
Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product, we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.
To find the best credit card consolidation loans, we combed through the fine print and terms of about a dozen personal loans to find the best ones for unexpected expenses. We prioritized five main features:
- Interest rates: For this guide, we prioritized lenders with the lowest minimum rates available on the market. While you’ll only qualify for these rates with an excellent credit score
- Credit score requirements: We looked for lenders with a variety of credit score minimums so they were accessible to all types of borrowers.
- Term lengths and loan amounts: We looked for loans with a wide range of term lengths and loan amounts to cater to a variety of borrowers.
- Funding speed: We assess how quickly a lender will get you your money after you apply and are approved for a loan and tried to pick lenders with fast funding times to help you get money quickly in an emergency.
- Fees: Lenders might charge a variety of fees, from origination fees to late payment penalties. We prioritized lenders that charge minimal or no fees.
See our broader ratings methodology for personal loans »
Related Post
Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
When shopping for a personal loan, most borrowers make the interest rate their top priority. The lower the interest rate, the less the total cost of the loan will be. While other factors like fees and term lengths also are important when when selecting a lender, interest rates are critical in making your final choice.
We’ve compiled a list of the best low-interest personal loans, only choosing lenders with a minimum rate below 7%. Keep in mind that you’ll only qualify for loans with the lowest interest rates if you have an excellent credit score.
Best low interest personal loans
Editor’s rating
Regular Annual Percentage Rate (APR)
5.99% to 23.99% with AutoPay (Rates as of 12/26/2022. Rates vary by loan purpose.)
Editor’s rating
Regular Annual Percentage Rate (APR)
5.99% – 19.97%
Editor’s rating
Regular Annual Percentage Rate (APR)
5.99% to 35.99%
Editor’s rating
Regular Annual Percentage Rate (APR)
6.50% to 35.99%
Editor’s rating
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Editor’s rating
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Editor’s rating
Regular Annual Percentage Rate (APR)
6.99% to 35.99%
Editor’s rating
Regular Annual Percentage Rate (APR)
6.99% to 23.24% (with relationship discount)
Best for high maximum loan amount: Lightstream
LightStream Personal Loan
Regular Annual Percentage Rate (APR)
5.99% to 23.99% with AutoPay (Rates as of 12/26/2022. Rates vary by loan purpose.)
LightStream Personal Loan
Regular Annual Percentage Rate (APR)
5.99% to 23.99% with AutoPay (Rates as of 12/26/2022. Rates vary by loan purpose.)
from participating partners with Fiona
Details
Regular Annual Percentage Rate (APR)
5.99% to 23.99% with AutoPay (Rates as of 12/26/2022. Rates vary by loan purpose.)
Pros & Cons
Highlights
Additional Reading
For borrowers looking to fund large expenses with a low-interest loan, LightStream offers amounts of as much as $100,000. The company offers same-day funding if the application is approved, verified, and signed before 2:30 p.m. ET.
LightStream also has a wide range of repayment term lengths, from two to 12 years. This is great if you’re looking to spread out the cost of your loan over a long period.
Watch out for: Lightstream doesn’t have preapproval. Borrowers looking for low-interest loans like to shop around to compare rates. Usually, this involves getting preapproved by several different companies and comparing the offers before settling on one. LightStream doesn’t offer preapprovals for its personal loans. You’ll have to go through the full approval process. That includes a hard pull of your credit report, which can temporarily lower your credit score.
Read Insider’s full review of Lightstream.
Best for low minimum APR: American Express
American Express Personal Loans
Regular Annual Percentage Rate (APR)
5.99% – 19.97%
American Express Personal Loans
Regular Annual Percentage Rate (APR)
5.99% – 19.97%
On American Express’s website
Details
Regular Annual Percentage Rate (APR)
5.99% – 19.97%
Pros & Cons
Highlights
American Express is tied with LightStream and Reach Financial for the lowest minimum APR of any of the lenders on our list. If you have an excellent credit score and can qualify for the lowest interest rate, this could be a great lender for you.
The company also gets you funds quickly. Borrowers will usually get their money within one to two business days after loan approval.
Watch out for: Eligibility requirements. To get a personal loan with American Express, you need to be a card member. You need a relationship with the company outside of your personal loan, which may be an added step you prefer to avoid.
Read Insider’s full review of American Express.
Best for debt consolidation: Reach Financial
Reach Financial Personal Loan
Fees
Origination fee ranges from 0% to 5%, $15 late fee
Regular Annual Percentage Rate (APR)
5.99% to 35.99%
Reach Financial Personal Loan
Fees
Origination fee ranges from 0% to 5%, $15 late fee
Regular Annual Percentage Rate (APR)
5.99% to 35.99%
On Reach Financial’s website
Details
Regular Annual Percentage Rate (APR)
5.99% to 35.99%
Fees
Origination fee ranges from 0% to 5%, $15 late fee
Pros & Cons
Highlights
For borrowers looking for a low-interest personal loan for debt consolidation, Reach Financial could be a good choice.
Reach Financial has a very fast funding speed. The company pays off your creditors directly — you won’t have any money go into your account — and will do so within roughly 48 hours after your loan is approved.
The company’s loan minimum is relatively low — you’re able to take out a loan as small as $3,500.
Watch out for: Limited loan purpose. You’re only able to use your loan funds to consolidate or refinance debt. The other lenders on our list allow borrowers to use a personal loan for pretty much any purpose. Borrowers looking to cover other expenses will have to choose a different lender.
Read Insider’s full review of Reach Financial.
Best for low credit scores: Upstart
Fees
Origination fee up to 8%, late fee of 5% or $15, whichever is greater
Regular Annual Percentage Rate (APR)
6.50% to 35.99%
Fees
Origination fee up to 8%, late fee of 5% or $15, whichever is greater
Regular Annual Percentage Rate (APR)
6.50% to 35.99%
Details
Regular Annual Percentage Rate (APR)
6.50% to 35.99%
Fees
Origination fee up to 8%, late fee of 5% or $15, whichever is greater
Pros & Cons
Highlights
Additional Reading
If you’re looking to get a personal loan with a lower interest rate quickly, you may want to go with Upstart. With this lender, may be able to get you your money on the day after you apply.
Upstart’s minimum credit score is just 600. If you have a poor credit history, it may be easier to qualify for a loan with this lender than with some of the others on our list. Keep in mind that you’ll usually be charged a higher interest rate with a lower credit score.
Watch out for: High origination fees. Upstart’s personal loans can have origination fees of as much as 8%. On a $5,000 loan, for example, that would work out to an origination fee of $400.
Read Insider’s full review of Upstart.
Best for no fees: Marcus by Goldman Sachs
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
from participating partners with Fiona
Details
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Pros & Cons
Highlights
Marcus by Goldman Sachs is one of the few lenders on our list of low-interest personal loans that doesn’t charge any fees. This will reduce the cost of your loan overall. Origination fees — which are standard for some other companies — are deducted from your total loan proceeds.
The company also has an on-time payment reward, which allows you to skip a month of payments if you pay your loan on time and in full every month for one year. You won’t be charged interest during that period. Marcus will then extend your loan term by one month.
Watch out for: No co-borrowers allowed. If your credit history isn’t in the best shape and you’re hoping to add a co-signer to boost your chances of approval or to get a lower rate, you won’t be able to do so with Marcus. Other lenders on our list, like Prosper, may be a better choice in that scenario.
Read Insider’s full review of Marcus by Goldman Sachs.
Best for money-back guarantee: Discover
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Details
Regular Annual Percentage Rate (APR)
6.99% to 24.99%
Pros & Cons
Highlights
A key feature of Discover that separates it from other lenders is its 30-day money-back guarantee. If you decide within 30 days of getting your loan that you don’t want it anymore, you may return the funds via check and won’t be charged any interest. This may be helpful if you find a lender with a lower interest rate or if you end up not needing the loan amount you initially requested.
Discover also has repayment terms ranging from three to seven years, so you have options if you want to spread out the cost of your loan. You’re also able to pay off your loan early at any time without a fee.
Watch out for: Hefty late fee. Discover charges a late fee of $39. If you fall behind on your payments, those fees will increase the overall cost of your loan. Some other lenders on our list don’t charge any fees.
Read Insider’s full review of Discover.
Best for co-signed loan: Prosper
Fees
Origination fee between 2.4% to 5%, depending on your financial situation. Late fees are 5% of the payment amount or $15, whichever is greater
Regular Annual Percentage Rate (APR)
6.99% to 35.99%
Fees
Origination fee between 2.4% to 5%, depending on your financial situation. Late fees are 5% of the payment amount or $15, whichever is greater
Regular Annual Percentage Rate (APR)
6.99% to 35.99%
from participating partners with Fiona
Details
Regular Annual Percentage Rate (APR)
6.99% to 35.99%
Fees
Origination fee between 2.4% to 5%, depending on your financial situation. Late fees are 5% of the payment amount or $15, whichever is greater
Pros & Cons
Highlights
Additional Reading
Prosper allows you to add a co-borrower to your account, a feature not all lenders offer. Enlisting a co-signer can help you get a lower interest rate on your personal loan than you would’ve otherwise received, or qualify for a loan that was out of reach on your own.
The company also has a low loan minimum of $2,000 and may be a good option for borrowers who only need a little bit of cash.
Watch out for: Many eligibility requirements. You’ll have to clear many obstacles to qualify for a Prosper personal loan. This includes a minimum credit score of 640, a debt-to-income ratio below 50%, and fewer than five credit bureau inquiries (excluding duplicate inquiries) within the last six months.
Read Insider’s full review of Prosper.
Best brick-and-mortar lender: Wells Fargo
Wells Fargo Personal Loan
Fees
Up to $39 late payment fee
Regular Annual Percentage Rate (APR)
6.99% to 23.24% (with relationship discount)
Wells Fargo Personal Loan
Fees
Up to $39 late payment fee
Regular Annual Percentage Rate (APR)
6.99% to 23.24% (with relationship discount)
from participating partners with Fiona
Details
Regular Annual Percentage Rate (APR)
6.99% to 23.24% (with relationship discount)
Fees
Up to $39 late payment fee
Pros & Cons
Highlights
Additional Reading
Wells Fargo is one of the largest banks in the country, with roughly 4,700 locations in 36 states. Borrowers looking for a low-interest personal loan who prefer face-to-face interactions will find ample opportunities to connect with a Wells Fargo representative. States where branches aren’t available are Ohio, Michigan, Kentucky, West Virginia, Missouri, Oklahoma, Louisiana, Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, and Hawaii.
Wells Fargo also has a high maximum loan limit of $100,000, which is perfect for borrowers who need to finance a large purchase.
Watch out for: History of controversies. Wells Fargo’s recent past has been mired in scandals, including a December 2022 ruling from the Consumer Financial Protection Bureau ordering the bank to pay a $3.7 billion penalty as a result of widespread legal violations, including in the auto and mortgage loan space. Other lenders on our list don’t come with the same baggage.
Read Insider’s full review of Wells Fargo.
Other personal loan companies we considered
- SoFi. SoFi is an excellent personal loan lender, with no fees and an unemployment protection program. However, it has a higher minimum credit score requirement than any of the lenders on our list, and its minimum rate isn’t as low as the lenders we’ve chosen.
- Avant. Avant is a great lender for borrowers with bad credit, as it recommends a credit score between 600 and 700 to qualify for a loan. However, its minimum rate is higher than all of the lenders on our list.
- PenFed Credit Union. PenFed is one of our best credit unions for personal loans, with a low loan minimum of just $600. However, you need to be a member to get a loan, and its lowest rates are higher than the lenders we picked.
Which lender is the most trustworthy?
We’ve looked at each institution’s Better Business Bureau score to offer you another piece of information to pick a company that provides low-interest personal loans. The BBB measures businesses based on factors like their responsiveness to customer complaints, truthfulness in advertising, and openness about business practices. Here is each company’s score:
Our top picks are rated A+ or higher by the BBB, with the exception of Wells Fargo, which has a history of problematic behavior.
Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.
In 2019, the company paid the city of Philadelphia $10 million as a result of the city’s claims that Wells Fargo engaged in predatory mortgage lending to racial minorities.
If these and other legal issues with Wells Fargo in recent years make you uncomfortable, you may consider getting a personal loan from a different lender.
Know that a high BBB score does not ensure a positive relationship with a credit card consolidation loan provider, and you should keep researching and talk to others who have used the company to get the most complete information possible.
Frequently asked questions
Generally, the best way to get a low rate on a personal loan is to have an excellent credit score. While you can’t dramatically improve your credit score overnight, you can start by making sure you pay your bills on time and in full. Additionally, you can reduce your credit utilization ratio, or the amount of credit you’re using divided by the total credit available to you.
The lenders we have on our list are a great place to start looking for a low-interest personal loan. We’ve compiled lenders with the lowest minimum rates on the market, so you’ll likely find the best deals here — provided you have a great credit score.
Methodology
Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product, we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.
To find the best credit card consolidation loans, we combed through the fine print and terms of about a dozen personal loans to find the best ones for unexpected expenses. We prioritized five main features:
- Interest rates: For this guide, we prioritized lenders with the lowest minimum rates available on the market. While you’ll only qualify for these rates with an excellent credit score
- Credit score requirements: We looked for lenders with a variety of credit score minimums so they were accessible to all types of borrowers.
- Term lengths and loan amounts: We looked for loans with a wide range of term lengths and loan amounts to cater to a variety of borrowers.
- Funding speed: We assess how quickly a lender will get you your money after you apply and are approved for a loan and tried to pick lenders with fast funding times to help you get money quickly in an emergency.
- Fees: Lenders might charge a variety of fees, from origination fees to late payment penalties. We prioritized lenders that charge minimal or no fees.
See our broader ratings methodology for personal loans »
