Best personal loans for good credit October 2021
|Lender||APR range||Minimum loan amount||Maximum loan amount||terms||Recommended credit score|
|4.74% to 19.38% with automatic payment||$ 5,000||$ 100,000||2-7 years||670+|
|Marcus by Goldman Sachs
Ideal for debt consolidation
|6.99% to 19.99%||$ 3,500||$ 40,000||36–72 months||660+|
Ideal for quick financing
|2.49% to 19.99% with automatic payment||$ 5,000||$ 100,000||24–144 months||670+|
Ideal for professional development expenses
|6.76% to 35.99%||$ 1,000||$ 50,000||3 or 5 years||600+|
Best minimum loan amount
|8.05% to 35.89%||$ 1,000||$ 40,000||36 or 60 months||600+|
|5.74% to 24.49% with relational discount||$ 3,000||$ 100,000||12 to 84 months||760+|
|Caisse populaire d’Alliant
Best credit union
|6.24% to 10.24% with automatic payment||$ 1,000||$ 50,000||12 to 60 months||670+|
Best credit card company
|7.98% to 19.98%||$ 3,500||$ 25,000||12-36 months||670+|
What credit score range are you in?
- Excellent credit: 800-850
- Very good credit: 740-799
- Good credit: 670-739
- Fair credit: 580-669
- Bad credit: less than 580
What is a good credit score for getting a personal loan?
It’s safe to assume that the higher your credit score, the more doors open for you. This means that more lenders are ready to offer you personal loans at the lowest rates and on the best terms. While 670 is the minimum “good” FICO Credit Score, lenders tend to favor those with at least a 690 score, and more so if you have an excellent credit score closer to the 800 range.
Where is the best place to get a personal loan with good credit?
The good news is that there are many lenders who offer personal loans to borrowers with good credit. Options include banks, credit unions, physical institutions and online lenders. Don’t assume that one type is the best: although online lenders often have lower nominal rates, for example, their fees can make their effective rates less competitive.
What should you consider before choosing a personal loan?
When comparing personal loan options, it is important to understand all of the terms in order to find the one that will cost you the least and meet your needs.
For example, if you are looking for a personal loan to consolidate some business debt and the lender does not authorize the financing for that purpose, then you will have to find another source, even if the first one offers the lowest APR in town. Or if you want to borrow $ 3,000 and a lender has a minimum loan of $ 5,000, you will also have to look elsewhere. (Never take more funding than you absolutely need.)
Basically, you want to find a lender who offers the best combination of interest rate, fees, and Repayment Terms. Interest rates are everything: the lower the APR, the less you will pay for the duration of your loans. Keep in mind that longer loans seem cheaper (lower monthly payments), but are often more expensive overall (because you pay more interest). And other aspects can also be important. While there’s a good chance you can pay off your debt sooner, a personal loan with no prepayment penalty means you can do it at no additional cost.
How do you know if you have good credit?
The best way to determine if you have good credit is to sign up for a free credit monitoring service. Companies such as Credit Karma, Rocket headquarters, and Sesame Credit are reputable and free. While these services aren’t exactly the credit scoring models that lenders use, their ratings give you a pretty good idea of where you stand because they’ll show you the types of financial behaviors that might be affecting your score.
Otherwise, here are some signs that you have good credit:
- You regularly made payments on time
- You don’t accumulate more than 30% of your credit limit on your credit cards
- There’s no default values or bankruptcies in your name
The bottom line
Having good credit means you have more options for finding the best terms and rates for a personal loan. Before reaching out to a lender, be sure to compare all of the available options to find a loan that will cost you the least and meet your current needs.
How we choose the best personal loans for good credit
Investopedia is committed to providing consumers with unbiased and comprehensive personal lender analysis for all borrowing needs. We have collected over twenty-five data points from over fifty lenders, including interest rates, fees, loan amounts, and repayment terms, to ensure our content helps users take the right borrowing decision for their needs.