Find Your Best Personal Loans with Low Interest Options

Looking for ways to borrow money without breaking the bank? Smart borrowers compare rates to secure the best deals. In 2025, demand for affordable financing continues to rise as people seek flexible options.

LendingTree data shows shoppers save an average of $1,659 by comparing multiple lenders. Top providers like Upgrade, LightStream, and Upstart offer different benefits, from same-day funding to soft credit checks.

Your credit score plays a big role in the rates you qualify for. APRs typically range from 6.49% to 35.99%, with debt consolidation being the most common use (49.9% of borrowers). Loan amounts vary from $600 to $100,000 across lenders.

Key Takeaways

• Comparing multiple lenders can save you $1,659 on average
• Credit scores determine your APR range (6.49%-35.99%)
• Nearly half of borrowers use funds for debt consolidation
• Some lenders offer same-day funding options
• Loan amounts range from $600 to $100,000

What Is a Personal Loan?

Need flexible financing without collateral? A personal loan could be your solution. These are fixed-sum, unsecured funds repaid in fixed installments. Unlike credit cards, they offer predictable monthly payments and set terms.

How Personal Loans Work

Lenders evaluate your credit score, income, and debt-to-income ratio. Approved borrowers receive funds in their account within 24 hours to 3 days. Repayment starts immediately, with equal portions covering principal and interest.

APR (Annual Percentage Rate) combines interest rates and fees, giving you the true cost of borrowing.

Typical Loan Amounts and Terms

Amounts range from $600 to $200,000, with terms spanning 1–7 years. The national average for borrowers with good credit is $15,437.

Common uses include:

• Debt consolidation (49.9% of borrowers)
• Home improvements
• Emergency expenses

Banks often require higher credit scores than credit unions. Online lenders like LendingTree streamline comparisons, offering pre-approval in minutes.

Benefits of Low-Interest Personal Loans

Credit card APRs draining your budget? There’s a smarter way to borrow. Lower-rate options slash costs and simplify repayments, especially for debt consolidation.

Slash Interest Costs

Compare a $10,000 balance at 25% credit card APR versus a 12% loan APR. Over three years, you’d save $1,804 in interest alone.

• Monthly savings: $350 card payments drop to $225 with a loan.
• DTI boost: One fixed payment improves your credit profile.
• Credit score perks: Lower utilization (under 30%) raises scores.

Flexible Repayment Wins

Choose terms that fit your budget. A 5-year term cuts payments nearly in half versus 3 years, though total interest rises slightly.

Business owners: Some loan interest is tax-deductible if used for work expenses.

Watch out for balance transfer cards—their 0% rates often expire, leaving you with higher APRs than loans. Always crunch the numbers.

How to Find Personal Loans with Low Interest Rates

Borrowers who shop around save thousands over their repayment period. The difference between the highest and lowest APR could mean $3,652 saved on a $20,000 balance. Start by comparing lenders side by side.

Smart Lender Comparisons

Look beyond advertised rates. Key metrics include:

• APR: Combines fees and interest for true cost.
• Origination fees: Some charge 1%–8% upfront.
• Prepayment penalties: Avoid lenders that punish early payoffs.

LightStream requires a 720+ credit score for its lowest rates—even if not publicly stated.

Credit Scores Dictate Your Rate

Your credit score is the biggest factor in your rate. See how tiers compare:

*Based on a $20,000, 5-year term.

Pro tip: Soft inquiries won’t hurt your score. Prequalify with multiple lenders to compare offers.

Prepare Your Application

Gather these documents to streamline approvals:

• Recent pay stubs or W-2s
• Government-issued ID
• Proof of address (utility bill, lease)

Thin credit history? A co-signer with strong scores can help. Avoid “no credit check” scams—legitimate lenders always verify your financials.

Best Overall Personal Loan: Upgrade

Upgrade stands out as a top choice for borrowers seeking competitive rates and flexible terms. With APRs from 7.99% to 35.99%, it caters to a wide range of credit score tiers, starting at 580. Loan amounts span $1,000 to $50,000, ideal for everything from emergencies to home projects.

Rates and Terms

Funding can hit your account within one business day. Choose repayment terms from 24 to 84 months—longer terms lower monthly payments but increase total interest. For example:

• 24-month term: $943/month (12% APR on $20,000)
• 84-month term: $347/month (same APR)

Upgrade funded over 5,400 loans via LendingTree in 2024, with 73% approved for debt consolidation.

Pros and Cons

Advantages:

• $200 bonus when opening a checking account with loan approval
• Vehicle collateral option reduces APR by up to 5%
• Joint applications accepted to boost approval odds
• User-friendly mobile app with daily customer support

Drawbacks:

• Origination fees (1.85%–9.99%) are higher than some competitors
• No autopay discount, unlike SoFi or Discover

Upgrade’s blend of speed and accessibility makes it a standout, especially for borrowers with fair credit. Always compare offers to ensure the best deal.

Best for Large Loans: LightStream

When you need significant funds, not all lenders offer the same borrowing power. LightStream provides loan amounts from $5,000 to $100,000—ideal for major expenses like home renovations or business investments. Their APRs start at 6.49%, with no origination fees or prepayment penalties.

No-Fee Structure

Unlike competitors charging up to 9.99% in fees, LightStream eliminates hidden costs. Their Rate Beat Program guarantees to match competitor APRs by 0.10%, plus:

• Zero application or late fees
• Automatic payment discounts (0.50% APR reduction)
• Same-day funding for approved applications

“LightStream funded 4,700+ loans through LendingTree in 2024, with 68% for debt consolidation exceeding $35,000.”

Eligibility Requirements

While LightStream doesn’t disclose minimum credit scores, these factors boost approval odds:

Unique options include financing for luxury RVs or vineyard expansions—rare among unsecured lenders. Just expect a hard credit pull during application.

Best for Poor Credit: Upstart

A 300 credit score doesn’t have to block your financial options. Upstart uses AI to evaluate education, job history, and income—not just traditional credit reports. This helps applicants with thin or damaged credit history qualify when banks say no.

Flexible Credit Requirements

Upstart’s APRs range from 6.60% to 35.99%, with funding as fast as one business day (99% of approvals). Even college grads with no credit score may qualify. Compare costs for a $5,000 loan:

• 12% APR: $111/month (3-year term)
• 35.99% APR: $183/month (same term)

Upstart funded 20,250 loans via LendingTree in 2024—63% for debt consolidation.

High APR Considerations

Watch for origination fees (0%–12%) and penalties. Late payments trigger a $15 fee + 5% penalty APR. After 6 on-time payments, you may refinance for better rates.

Pro tip: Upstart’s mobile app tracks repayment progress, helping rebuild your credit score over time.

Best for Excellent Credit: Discover

Strong credit unlocks premium borrowing benefits at top lenders. Discover delivers competitive 7.99%-24.99% APRs for borrowers with 720+ scores. Loan amounts range from $2,500 to $40,000, with flexible 36-84 month terms.

Customer Service Perks

Discover stands out with 11pm ET weekday support—later than most competitors. Their 45-day payment grace period gives breathing room if funds arrive late. Response times impress:

Private clients get dedicated reps when maintaining $100k+ in their account. Discover funded 3,000+ loans in 2024, with most approvals processed within 2 days.

Rate Discounts

Qualified borrowers enjoy these savings:

• 0.50% APR reduction for existing deposit clients
• No origination fees—unlike many competitors
• Autopay discount (0.25%) without minimum balance

“Discover’s lowest rates beat national averages by 1.8% for prime borrowers,” reports 2024 LendingTree data.

Note the $40k ceiling limits jumbo loan seekers. Those needing larger amounts should consider LightStream’s $100k options.

Best for Secured Loans: Best Egg

Putting up collateral can unlock better rates—here’s how Best Egg makes it work. With APRs from 7.99% to 29.99%, they offer secured loans for borrowers with 580+ credit scores. Loan amounts range from $2,000 to $50,000, ideal for home projects or high-cost consolidations.

Collateral Options and LTV Ratios

Best Egg accepts unconventional assets like HVAC systems and solar panels. Their loan-to-value (LTV) ratios go up to 85% for home fixtures, meaning you could borrow $8,500 against a $10,000 upgrade.

• Accepted collateral: Appliances, renewable energy systems, luxury items (appraisal required)
• LTV limits: 85% for home improvements, 70% for non-real estate assets
• Appraisal process: Takes 3–5 days for high-value items

Best Egg funded 23,900+ secured loans in 2024, with 61% used for debt consolidation.

Origination Fees and State Restrictions

Their 9.99% origination fee is higher than unsecured options, but lower rates often offset this cost. For example:

*Based on $20,000, 5-year term.

Avoid surprises: Best Egg doesn’t operate in DC, Iowa, or West Virginia. Liens are recorded within 10 business days after approval.

Best for Small Loans: PenFed

Small-dollar financing needs often get overlooked, but PenFed delivers tailored solutions. As a federal credit union, it offers $600-$50,000 loans with 8.99%-17.99% APRs—ideal for minor emergencies or targeted projects. Membership requires just a $5 deposit, making it accessible beyond military circles.

Credit Union Advantages

PenFed beats banks with member-first perks. Shared branching gives access to 5,600+ locations nationwide, while mobile banking tracks payments and sends balance alerts. Their 60-month maximum terms encourage faster repayment than competitors’ 84-month options.

“PenFed approved 14,200 small loans in 2024, with 58% under $10,000 for medical bills and car repairs.”

Unique benefits include:

• Disaster relief: Skip-a-payment program for hurricanes or wildfires
• Military exceptions: Active duty families qualify with lower score requirements
• Rate matching: Existing members can request competitor APR adjustments

Membership Process

Joining takes minutes online. Alongside the $5 deposit, you’ll need:

Note the 12-month minimum term—shorter repayments aren’t allowed. Funds typically disburse within 48 hours after approval. For amounts under $5,000, consider their credit builder program to boost your credit profile.

Best for Fast Funding: SoFi

Your emergency fund shouldn’t take weeks to access. SoFi stands out with same-day disbursement for qualified applicants. APRs range from 8.99% to 35.49%, with loan amounts spanning $5,000 to $100,000.

Lightning-Fast Transfers

Meet the 6pm ET cutoff, and funds arrive in your account that business day. Direct creditor payments streamline debt consolidation—SoFi sends money to your card issuers within 24 hours.

“3,000+ borrowers secured same-day funding through SoFi in 2024, with 67% consolidating high-interest debt.”

Discounts That Add Up

Stack savings with these rate reductions:

• 0.25% autopay discount (requires linked checking account)
• 0.50% combo discount for existing investment clients
• No origination fees—unlike many competitors

The unemployment protection program pauses payments for 3 months if you lose your job. SoFi Plus members get extra perks like 4.60% APY on savings.

Note: Crypto purchases aren’t allowed with loan proceeds. A 680+ credit score boosts approval odds for the fastest funding tier.

Average Interest Rates by Credit Score

Your borrowing costs hinge directly on three digits—your credit score. Lenders use it to set your APR, which can range from single digits to triple digits. Here’s how rates break down across tiers.

Rate Ranges for Every FICO Tier

Prime borrowers (660+) access the lowest APRs, while subprime applicants face steep premiums. See the averages:

*$10,000 loan over 36 months.

How Rates Impact Your Total Cost

A 12% APR on a $10,000 loan costs $4,216 less than 28% over three years. Subprime lenders often layer on fees:

• Origination fees: Up to 12% of the loan amount
• Late penalties: $15–$40 per missed payment
• Prepayment penalties: Rare but costly

“Borrowers with 550 scores pay 4x more interest than those at 720,” reports 2024 LendingTree data.

Secured options cut rates by 5%–8% but require collateral. Some states cap APRs—California’s limit is 36%, while South Dakota allows 99%.

Alternatives: Credit-builder loans from banks like Discover report payments to bureaus, helping rebuild credit without high costs.

How to Calculate Your Loan Payments

Crunching numbers before borrowing ensures you choose affordable terms. LendingTree data shows 62% of borrowers underestimate their total repayment costs. Avoid surprises by mastering these calculation methods.

Using APR and Term Length

A $15,000 loan at 15% APR over 5 years equals $356.82 per month. This includes $6,409 in total interest. The formula breaks down as:

• Principal: Original amount borrowed ($15,000)
• APR: Annual percentage rate (15%)
• Term: Repayment period in months (60)

“Early payments apply 75% toward interest—only 25% reduces principal,” explains NerdWallet’s 2024 amortization study.

Debt Consolidation Scenarios

Compare a $20,000 credit card balance at 24% APR versus a 12% consolidation loan. Over 3 years:

Snowball method (paying smallest debts first) builds momentum. Avalanche method (highest APR first) saves more money. Spreadsheet templates help track progress.

Watch for payment protection insurance—it adds 15-20% to your monthly payment. Always verify prepayment penalties before signing.

Tips to Qualify for Lower Rates

Getting approved for better terms isn’t just about finding the right lender—it’s about positioning yourself as an ideal borrower. Small adjustments to your financial profile can unlock significant savings over your repayment period.

Boost Your Credit Score Fast

Your credit score directly impacts the rates lenders offer. Try these proven strategies to improve it quickly:

• Rapid rescore: Dispute errors with all three bureaus simultaneously. Correcting a $100 collection can lift scores 20+ points in days.
• Authorized user tradelines: Being added to someone’s 5-year-old card with perfect credit history may boost your score 30-50 points.
• Secured cards: A $200 deposit card reporting positive activity helps rebuild damaged credit history within months.

“63% of borrowers who improved their score by 40 points qualified for lower APRs within 60 days,” reports Experian’s 2024 data.

Optimize Your Debt-to-Income Ratio

Lenders prefer DTIs below 36%, though some accept up to 50%. Reduce yours with these tactics:

Part-time gig earnings count if consistent. Uber, freelance, or seasonal work can be included with 3+ months of bank statements.

Watch out: Credit repair companies charging upfront fees often violate FTC rules. Legitimate improvements take time—anyone promising “700 scores in 30 days” is likely scamming.

Lock in negotiated rates for 60 days while implementing changes. Most lenders honor rate locks if your application is complete.

Conclusion: Choosing the Right Lender

Finding the best loan depends on your needs and credit profile. Top picks like LightStream (large amounts) and Upstart (poor credit) offer tailored solutions. Always compare rates through prequalification—it won’t hurt your score.

Watch for origination fees. Some lenders charge up to 9.99%, eating into your money. Hybrid approaches work well—pair LightStream’s low APR with Upgrade’s flexible terms.

Set reminders to refinance when your score improves. Monitoring tools like Credit Karma help track progress. Remember, borrowers save $1,659 on average by shopping around.

Your ideal options are out there. Compare, calculate, and choose wisely.