Personal Loans :
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Personal Loan Quick Guide
- What are personal loans?
- Lenders requirements
- September 2024 Rates by State and credit score
- Minimum requirements
- Lenders not verifying credit
- How to get the best rate?
- Personal loan for bad credit
- Effects on your credit score
- Pros of personal loans
- Cons of personal loans
- Online lenders rates and terms September 2024
- Banks rates September 2024
- When are personal loans good?
- Common questions about personal loans
What are personal loans?
What are lenders requirement for a personal loan?
September 2024 Personal Rates by State & Credit Score:
| Credit Score | |||||
|---|---|---|---|---|---|
| State | Excellent | Good | Average | Bad | Poor |
| 720 – 850 | 690 – 719 | 630 – 689 | 580 – 629 | below 580 | |
| Nationally | 6.6% | 9.0% | 11.4% | 17.2% | n/a |
| Banks | 7.7% | 9.8% | 11.5% | 19.8% | n/a |
| Credit Unions | 5.6% | 7.8% | 10.5% | 15.3% | 18.5% |
| Online lenders | 6.2% | 7.6% | 11.4% | 17.3% | 21.1% |
| Alabama | 6.2% | 9.1% | 12.3% | 16.0% | 22.3% |
| Alaska | 6.5% | 8.8% | 13.0% | 17.2% | 21.4% |
| Arizona | 6.4% | 9.0% | 12.3% | 18.1% | 21.6% |
| Arkansas | 6.3% | 9.0% | 11.6% | 17.0% | 22.0% |
| California | 6.3% | 8.8% | 12.2% | 17.3% | 21.4% |
| Colorado | 6.2% | 8.4% | 11.5% | 17.3% | 21.7% |
| Connecticut | 6.1% | 8.4% | 11.4% | 18.5% | 21.2% |
| Delaware | 6.2% | 8.9% | 13.1% | 18.1% | 21.0% |
| DC | 6.8% | 9.1% | 13.1% | 18.0% | 22.2% |
| Florida | 6.4% | 9.3% | 12.6% | 16.9% | 20.1% |
| Georgia | 6.2% | 9.3% | 13.2% | 18.1% | 21.1% |
| Hawaii | 6.3% | 9.2% | 12.5% | 16.8% | 24.11 |
| Idaho | 6.4% | 9.1% | 12.2% | 17.3% | 20.1% |
| Illinois | 6.3% | 9.1% | 11.3% | 15.3% | 23.4% |
| Indiana | 6.2% | 9.0% | 13.3% | 18.1% | 22.2% |
| Iowa | 7.0% | 9.2% | 13.4% | 18.6% | 24.0% |
| Kansas | 6.9% | 9.2% | 13.3% | 18.2% | 23.1% |
| Kentucky | 6.6% | 9.3% | 13.3% | 17.1% | 21.1% |
| Louisiana | 6.4% | 9.0% | 12.4% | 18.2% | 21.5% |
| Maryland | 6.5% | 9.2% | 13.2% | 17.4% | 23.0% |
| Massachusetts | 6.4% | 9.0% | 12.4% | 17.7% | 22.4% |
| Michigan | 6.4% | 9.2% | 13.5% | 17.5% | 24.3% |
| Minnesota | 6.3% | 9.8% | 14.0% | 18.2% | 24.1% |
| Mississippi | 6.4% | 9.2% | 13.3% | 18.3% | 22.1% |
| Missouri | 7.0% | 10.0% | 13.8% | 17.4% | 24.3% |
| Montana | 6.5% | 9.4% | 13.6% | 17.2% | 20.1% |
| Nebraska | 6.6% | 9.6% | 13.4% | 17.5% | 19.7% |
| Nevada | 6.6% | 9.6% | 13.6% | 18.3% | 22.3% |
| New Hampshire | 7.0% | 9.6% | 15.0% | 18.4% | 23.2% |
| New Jersey | 6.5% | 9.2% | 13.0% | 17.3% | 19.5% |
| New Mexico | 6.5% | 9.2% | 12.4% | 16.5% | 21.0% |
| New York | 6.4% | 9.3% | 12.2% | 16.6% | 20.1% |
| North Carolina | 6.4% | 9.4% | 13.3% | 18.4% | 23.1% |
| North Dakota | 7.0% | 9.4% | 12.3% | 16.2% | 19.5% |
| Ohio | 6.6% | 9.2% | 12.3% | 16.1% | 21.0% |
| Oklahoma | 6.5% | 9.3% | 13.2% | 18.3% | 20.3% |
| Oregon | 6.6% | 9.4% | 12.9% | 17.2% | 21.1% |
| Pennsylvania | 6.8% | 9.3% | 12.6% | 18.6% | 21.1% |
| Rhode Island | 7.0% | 9.2% | 12.6% | 15.2% | 21.0% |
| South Carolina | 6.6% | 9.1% | 13.6% | 18.4% | 22.2% |
| South Dakota | 6.1% | 9.2% | 12.8% | 16.5% | 21.1% |
| Tennessee | 6.2% | 9.2% | 12.3% | 16.5% | 22.5% |
| Texas | 6.5% | 9.2% | 13.3% | 17.7% | 21.4% |
| Utah | 6.6% | 9.2% | 12.1% | 15.6% | 20.6% |
| Vermont | 6.4% | 9.3% | 12.3% | 16.1% | 20.1% |
| Virginia | 6.6% | 9.2% | 13.3% | 17.6% | 20.1% |
| Washington | 6.4% | 9.0% | 14.1% | 18.9% | 22.2% |
| West Virginia | 6.7% | 9.3% | 13.3% | 16.3% | 21.1% |
| Wisconsin | 7.2% | 9.2% | 15.1% | 16.5% | 20.1% |
| Wyoming | 5.9% | 9.1% | 14.0% | 16.2% | 20.2% |
Source: MFP’s Users survey (over 45,201 users) who shared their personal loan annual percentage rate (APR) between August 1 to 30 2024.
What are the minimum requirements for a loan?
Lenders requirements are; you need to be 18 or older, a resident of the U.S., have an available bank account and not be in bankruptcy or foreclosure.
With a poor or average credit, you could still get an unsecured personal loan if you have a regular income and little debts. Your fixed-rate personal loan will usually still be higher.
The minimum loan varies by lender but it’s usually between $500 to $1,000.
What about lenders not verifying your credit?
Some lenders do not require you to have a minimum credit score but it doesn’t mean your credit score isn’t verified.
Some lenders provide loans with zero credit check but they’ll charge higher rates, sometime in the 200-300%, just like a payday loan lender. We do not work with those lenders.
Few lenders approve loans for borrowers with poor credit. With those lenders you can expect your fix-rate loan to be at the higher end (up to 36%). If you don’t qualify for a loan with a normal lender don’t use a payday lender (take a look at alternative lenders such as NixLending.com and BuildingSkills.org instead).
How to get the best rate?
Finding the best and lowest rate for your personal loan will depend on 2 key things:
1- Your credit score.
2- Shopping around.
1- Your credit score:
- The rate you’ll be offered depend on your credit score. The higher your score the lowest your rate will be.
- You should once a year make sure your credit report has no errors, and if you do getting in touch with the credit reporting agency to fix the inaccuracies will improve your score within days.
- If your score is low some lenders may let you have a co-signer or provide a collateral (like a car or other possessions of value) as a guarantee. Check with lenders how much interest rate reduction this would provide you.
2- Shopping around:
Shopping around is the best way to find the lowest interest rate for your personal loan.
- First see with online lenders, like the ones listed at the top of this page, for the rate and loan terms they’d provide you. Take a few minutes to get 2-4 quotes. Once you have them in hand it’s time to…
- Second, contact your existing financial institution, bank or credit union, to see if f they offer personal loans. Call them and see what are their loan repayment terms and rates. Ask them for a quote. If the interest rate they give you is higher than online lenders, show them the competing rates you got. They may be able to match it or give you a lower one.
- Third, decide who offer you the best rate and loan term for your need. Don’t forget to take into account any possible fees coming with your personal loan offers.
Personal loan for bad credit
Having bad credit, typically under 630, doesn’t keep you from having a personal loan but makes it harder and means you have fewer options. Your interest rate will be on the higher end compared to someone with better credit. Your monthly payment will accordingly be higher.
The quickest option is looking at online lenders and your best option is going to your local credit unions or community banks. They’re the ones being more open to consumers with bad credit. Your local credit union will probably require you to open an account with them, but it’d be a good idea as they usually also offer better services, fewer fees and better rates for other financial services.
We recommend you always compare rates and fees from a few lenders whether they are a credit union, community bank or online lender.
You can start by getting quotes from our reputable partners at the getting quotes from our reputable partners at the top of this page to compare with other lenders and find your lowest rates.
The effect on your credit score
Don’t be afraid to do 2-3 full credit check with lenders in a short period of time such as within 30 days. Doing a few full credit verification within 30 days won’t affect your credit score (but doing it many time months after month does).
Getting a loan and paying back completely will improve your credit. But the opposite is also true, if you stop paying your loan and go in default it’ll have a negative effect on your credit score.
The pros of personal loans
- A personal loan can help you face unexpected situation like repairs or fixes urgently needed. You can use a personal loan for almost any need like medical bills, vacations, home improvements. Using emergency savings is always cheaper but as long as you can pay your loan back it’s a way to finance yourself usually cheaper than a credit card.
- You can do a debt consolidation by consolidating your debts (credit cards included). You can use a personal loan to consolidate high-interest credit card debt into one monthly payment at a lower interest rate in order to paying off your debt faster.
- It can improve your credit score. You may increase your credit score by moving credit card debt to an installment loan because you lower of your credit use ratio and you diversify your debts types.
The cons of personal loans
- You usually get higher interest rates than a secured personal loan and some credit cards. When you have good credit and can pay off your debt in 12 to 18 months, you can usually get a 0% balance transfer credit card for a year and pay your balance transferred free of interest. Homeowners can also use home equity loans with lower interest rates than a personal loan, and you’d save money too. The con of a home equity loan is your home become collateral.
- Longer loan application process. Getting your loan approved may take a few days and require more information than credit cards.
Online Lenders Rates & Terms September 2024
You can see rates, loan terms, credit scores and the amount for popular online lenders below. You can apply to only one, apply to many, or use some of our partners above to get multiple quotes at once.
| Lenders | Rates (APR) | Terms (months) | Credit Score | Amount |
|---|---|---|---|---|
| Avant | 9.95% – 35.99% | up to 48 | 600+ | Up to $25,000 |
| Barclays | 4.99 – 20.99% | up to 60 | 700+ | Up to $35,000 |
| Best Egg | 5.99% – 29.99% | up to 36 | 700+ | Up to $35,000 |
| Discover | 6.9% – 24.99% | up to 84 | 660+ | Up to $35,000 |
| Earnest | 4.99% – 12% | up to 84 | 680+ | Up to $100,000 |
| FreedomPlus | 7.99% – 29.99% | up to 36 | 640+ | Up to $40,000 |
| Laurel Road | 7.75% – 24.25% | up to 62 | 700+ | Up to $45,000 |
| Lending Club | 10.68% – 35.89% | up to 60 | 540+ | Up to $40,000 |
| Lending Point | 15.49 – 35.49% | up to 24 | 585+ | Up to $25,000 |
| LightStream | 3.49% – 19.74% | up to 144 | 660+ | Up to $100,000 |
| Marcus | 6.99% – 19.99% | up to 36 | 660+ | Up to $40,000 |
| Payoff | 5.99% – 24.99% | up to 60 | 640+ | Up to $40,000 |
| Prosper | 7.95% – 35.99% | up to 36 | 640+ | Up to $40,000 |
| OneMain | 18% – 35.99% | up to 36 | 600+ | Up to $20,000 |
| Rocket Loans | 7.6% – 29% | up to 60 | 640+ | Up to $45,000 |
| SOFI | 5.99% – 18.53% | up to 84 | 680+ | Up to $100,000 |
| Upgrade | 7.99% – 35.97% | up to 60 | 580+ | Up to $35,000 |
| Upstart | 8.69% – 35.99% | up to 60 | 620+ | Up to $50,000 |
Banks Personal Loans Rates & Terms September 2024
Traditional banks’ rates are usually higher than other lenders like credit unions and online lenders (see above). They only offer loans to people with good or great credit and you’ll need to have an account at the bank to obtain a loan.
| Banks | Rates (APR) | Terms (months) | Credit Score | Amount |
|---|---|---|---|---|
| Citizen Bank | 7.89% – 24.49% | 12 to 84 | 680+ | Up to $50,000 |
| Wells Fargo | 5.99% – 20.24% | 12 to 36 | 700+ | Up to $35,000 |
| Citi Bank | 7.99% – 17.99% | 12 to 60 | 680+ | Up to $50,000 |
| US Bank | 7.49% – 17.99% | 12 to 60 | 720+ | Up to $25,000 |
| PNC | 7.99% – 19.99% | 6 to 60 | 680+ | Up to $35,000 |
| TD Bank | 6.99 to 21.99% | 12 to 60 | 680+ | Up to $50,000 |
| BBT | Hide rates | Hide Terms | Hide scores | Hide amounts |
| Fifth Third Bank | 6.99% – 15.24% | 12 to 60 | 680+ | Up to $25,000 |
| Key Bank | 7.84% – 18.26% | 12 to 84 | 680+ | Up to $50,000 |
When are personal loans good?
Personal loans are best when you have a long term plan to improve your finances.
You can borrow money for other things (car repairs, wedding, vacation or other things) but only if you know you can make your loan payments.
Don’t borrow to push away the unavoidable. If you want to be debt-free make a plan to do it. If you are not able to deal with your existing debt, look at your debt-relief options.
When you have decided a personal loan is the right choice, calculate your payments for the different range of interest rates and loan amounts. This way you’ll have a good idea of what you can afford when you get loan offers.
If you have good credit and have already done business with a bank compare online offers with your bank and use online offers as a negotiation with your bank and credit union.
Lenders on MFP offer rates no higher than 36%. They’re listed at the top of this page. They also all follow the Consumer Financial Protection Bureau standards and take into consideration your credit history and ability to repay.
Common questions about personal loans:
Most good lenders don’t have an origination fee so lookout to see if the lender interesting you have such fee.
Can I pay my loan early without a prepayment penalty?
How fast do I get my loan once I’m approved?
If you can’t make regular payment and don’t stay behind on your payment the lender should not report it to credit agencies.