Best Personal Loans for Good Credit in July 2024

Having good credit can make it easier to get approved for a personal loan and qualify for a low interest rate. For example, applicants with good credit prequalified for interest rates from around 17% to 22% in July 2024 for a three-year personal loan, according to Credible loan data, while applicants with fair credit saw rates from 28% to 29%. 

Take your good credit for a spin to refinance high-interest credit card debt, pay for a large purchase, make home improvements, or cover an emergency expense. Just be sure to compare lenders and rate quotes to get the best personal loan for your needs.

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Best personal loans for good credit

Prequalify with multiple lenders to see personal loan rates you might qualify for and which lenders are likely to approve your application. You can do so below or with most lenders directly on their websites.

Prequalification requires a soft credit check which won't affect your score. Just note that when you formally apply, most lenders conduct a hard pull which could lower your score temporarily by a few points.

SoFi: Best overall

Upgrade: Best for fair credit

Discover: Best for no origination fees (and low rates)

Splash: Best quick loans for good credit

Universal Credit: Best debt consolidation loans for all credit

LightStream: Best home improvement loans and low rates

Best Egg: Best for high close rates if pre-approved

LendingClub: Best online experience

Avant: Best for all credit types

Axos: Best for low origination fees

Happy Money: Best for consolidating credit card debt

Upstart: Best fast personal loans for all credit types

Reach Financial: Best for fast funding and fair credit

PenFed: Best credit union for personal loans

Navy Federal: Best military loans

Navy Federal Credit Union grants membership and loans if you or someone in your household have ties to the armed forces, Department of Defense, or National Guard. The credit union currently has 350 branches worldwide as well as 24/7 customer service, and excellent Trustpilot ratings.

Navy Federal offers a wide range of loans designed for different needs, such as Career Kickoff loans for juniors and seniors at military service academies, unsecured home improvement loans up to $150,000, and very low-interest loans secured by your savings account or a certificate of deposit.

APRs are capped at 18%, which is among the lowest of all lenders we reviewed. To apply, you'll need to call or visit a local branch.

• APR: 8.99% - 18.00%
• Origination fee: None
• Loan amounts: $250 to $50,000 ($150,000 for home improvement loans)
• Repayment terms: Up to 5 years (15 years for home improvement loans)
• Funding time: As little as 24 hours

TD Bank: Best for few fees and low rate caps

TD Bank labels itself as "America's Most Convenient Bank" due to having nearly 2,700 ATMs for customers to access. In addition to a plethora of locations, many TD Bank branches are open for extended hours, seven days a week - as well as some holidays.

TD Bank offers unsecured installment loans that can be used for many major life events, including debt consolidation and home improvement. Its signature TD Fit Loan gives you an alternative to credit cards or secured loans, and can provide up to $50,000.

TD Bank also caps its APR range at 23.99%, lower than the cap many lenders set at 35.99%. Additionally, personal loans from TD Bank do not carry an origination fee or application fee.

• APR: 8.99% - 23.99%
• Origination fee: None
• Loan amounts: $2,000 to $50,000
• Repayment terms: Up to 5 years
• Funding time: Up to 1 business day

Check Out: Home Improvement Loans

Lender Rating Methodology

Credible evaluated the best personal loans for good credit based primarily on available interest rates and discounts, fees, and consumer reviews. We also considered loan amounts, funding times, loan terms, available loan purposes, customer access, whether you can prequalify, and the ease of the application process.

Credible's team of experts gathered information from each lender's website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.

How to get a good credit personal loan

While your good credit is a good start, you'll need more than a solid FICO score to secure a low interest rate.

1. Research and compare lenders

Once you've prequalified, compare annual percentage rates (APRs) between lenders, along with repayment terms, loan amounts, and fees, like origination fees. APRs account for interest rates and upfront fees, so they're a better measure of a loan's true cost than the interest rate alone. Keep in mind that origination fees, when charged, are typically deducted from the loan amount upfront, meaning you'd receive a lesser amount than what you applied for.

2. Pick a loan option

After comparing lenders, choose the loan option that pairs monthly affordability with overall loan cost and provides the loan amount and repayment term you need.

For example, choosing a lower monthly payment (and a longer repayment term) over a lower interest rate may be the best option to ensure you make payments on time. But to save the most on interest, you'll usually want to choose a shorter loan term - just be sure you can afford the payment.

3. Complete the application

Once you've picked a lender, you'll need to fill out a full application and submit any required documentation by the lender, such as pay stubs or tax returns. Additionally, you'll need to submit to a hard credit check which may temporarily lower your score.

4. Get your funds

If you're approved, the lender will have you sign for the loan so the money can be released to you. Review the loan documents carefully to ensure the terms are as expected. Once signed, the lender can send funds to your account or to your creditors if you're getting a debt consolidation loan.

The time to fund a personal loan typically takes two to three business days, once approved - though some lenders offer fast personal loans that can be funded as soon as the same or next business day after approval.

Estimate how much you'll pay for a loan using our personal loan calculator.

What is a good credit score?

A good credit personal loan is potentially available to a borrower with a FICO score of 670 to 739 (scores above 739 are considered very good or excellent).

A few different factors make up your FICO credit score:

• Payment history (35%): This category shows if you have a track record of making on-time payments.
• Amounts owed (30%): This is how much of your available credit you're using. If you're using quite a bit of your available credit, it can indicate that you'll struggle to make your payments.
• Length of credit history (15%): The longer you've had open accounts, the better, but you can still have a good credit score without a long credit history.
• Credit mix (10%): Having a diverse mixture of loans and credit cards can help your credit score.
• New credit (10%): If you open multiple new accounts within a short period, it can ding your score since it shows that you're potentially overextended.

Check Out: Getting a Loan With No Credit: 4 Loans for New Borrowers

Will a personal loan boost my credit score?

Yes, a personal loan can increase your credit score if managed responsibly. According to TransUnion, most borrowers who used a personal loan to consolidate debt saw a credit score increase of 20 points or more.

Here are a few key ways that getting a personal loan can help your score:

• Maintaining a positive payment history: Payment history is the largest factor that determines your credit score (35%). This is why choosing an affordable payment is often more important than choosing the lowest-cost loan.
• Lowering your credit utilization ratio: Your credit utilization is the amount you owe on revolving credit lines - such as credit cards - compared to your limits. If you use a personal loan to consolidate credit card debt, you could reduce your credit utilization ratio and see improvements to your credit score within one month.
• Diversifying your credit mix: Lenders like to see that you can handle multiple types of credit - which is why carrying different types of debt can raise your credit score. Adding a new personal loan could improve your credit mix, especially if you don't have another type of installment loan on your report.

Note that when you apply for a personal loan, the lender will perform a hard credit check to estimate how likely you are to repay the loan. This could cause your score to drop slightly - usually five points or less. This effect is temporary, and your credit score could bounce back within a few months to no longer than one year.

Learn More: Credit Card Consolidation Loans

Alternatives to personal loans

Instead of a personal loan, you may want to consider a personal line of credit, a credit card (especially if you can qualify for a 0% APR offer), a home equity loan, or a home equity line of credit (HELOC).

Lines of credit

A line of credit is a type of revolving credit account that allows you to borrow money when you need it. You can get an unsecured line of credit from some banks or apply for a HELOC to tap the equity in your home. Each functions similarly, but a HELOC may have a lower APR and higher credit line available. It may also offer longer repayment terms.

In general, here's how they work. Once you're approved for a credit line, you can draw from it as needed during the draw period. Lines of credit may have a defined draw period and repayment period, or a continuous draw period:

• Draw period: The time during which you can use the line of credit. Interest-only payments may be required.
• Repayment period: Once the repayment period begins, you can no longer use the credit line and will pay off the balance in installments over a period of years.
• Continuous draw period: Not typically available on HELOCs, a continuous draw period means you can keep using the line of credit, similar to a credit card.

Lines of credit, including HELOCs, typically have variable interest rates. How large a credit line you qualify for will depend on your credit, income, and current debt. In the case of a HELOC, the lender will also consider how much available equity you have to set your limit. Lenders typically require that you have at least 20% available equity to qualify.

Home equity loan

Like a HELOC, a home equity loan lets you tap your home's equity, and the home is used as collateral. You'll need at least 20% available equity to qualify, or a loan-to-value ratio (LTV) less than 80%. Instead of a line of credit, you'd receive a lump sum upfront that's repaid over a period of years.

Because they're a type of secured loan, rates on home equity loans tend to be lower than personal loan rates, often coming in around 8% or 9% APR, depending on your credit, income, and LTV.

In addition to the collateral requirement, it can take a month or more to get approved for a home equity loan and receive loan funds. This can be a good option if you've built a large amount of equity and need more than what you'd qualify for with a personal loan. Plus, if you use the funds to improve your home, you may be able to deduct the interest on your taxes.

Credit card

If you need to finance something long-term, a credit card is rarely a good option. The average credit card rate was 21.51% APR compared to 11.92% APR for a two-year personal loan, according to Federal Reserve data. However, there are a few instances when using a credit card could be a better option:

1. You can qualify for a 0% APR promotion: If you have good credit, it's likely that you're eligible for a card with a 0% APR on new purchases and balance transfers. Keep in mind that transfers often come with a fee from 3% to 5%. Promotions may last from 12 to 21 months or more. If you can pay off the balance within that time, you can essentially get an interest-free loan.
2. You can pay off the balance within the card's grace period: One great thing about credit cards is that most have a grace period of one billing cycle, during which time you won't be charged interest on purchases. If you can't however, the purchase will be charged interest at the card's standard APR, which could be near 30%.
3. You plan to refinance credit card debt: If you're eligible for a 0% APR promotion but can't pay off the balance within the promotional period, you might consider using a personal loan to refinance the debt before the APR adjusts. This is not necessarily recommended since there's no guarantee you'll be able to qualify for debt consolidation.

Learn More: Personal Loan vs. 0% APR Credit Card

FAQ

How much can I borrow with a personal loan?

Personal loans typically range from $600 to $100,000 or more, depending on the lender and what you can qualify for. Keep in mind that you'll likely have an easier time getting approved for a large loan balance if you have:

• Good to excellent credit
• Income that supports your ability to repay the loan
• Low debt-to-income ratio

Josh Patoka has contributed to the reporting of this article

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• Prequalifying for a Personal Loan