Finance

10 best personal loans in July 2026

WSJ | Buy Side · Jul 21, 2026 18:45 · 13 min read

10 Best Personal Loans in March 2025 — 10 Best Personal Loans in July 2026

Personal loan rates start below 6%, based on credit score and other factors, with three-year loan rates averaging 13.82% for borrowers with a 720+ credit score

Key takeaways

Personal loans can be used for various purposes, including debt consolidation, large purchases and home improvements.
Lenders review your credit history, income and other factors to determine approval and terms.
Compare the best personal loans to find one that meets your needs for amount, repayment, interest rate and budget.

Personal loans are known for their versatility. They can be used for many purposes, ranging from debt consolidation to major purchases to financial emergencies. Loan amounts are often high and payments and rates are fixed.

Personal loan rates are influenced by monetary policy, and the Federal Reserve continued to hold rates steady during the June meeting. Buy Side partner Credible reports the average three-year personal loan rate for borrowers with scores of 720+ as 13.44% APR as of July 21. Experts suggest that economic conditions might lead the Fed to raise rates later in the year.

When evaluating the best personal loans, Buy Side reviews dozens of lenders, considering interest rates and fees as well as whether the loans are accessible to a wide range of budgets and credit situations.

More details on the best personal loans

When comparing personal loans, review lender requirements. Consider alternatives to personal loans, such as saving up for non-emergency purchases, or turning to family and friends.

Best overall: SoFi

SoFi also offers loan amounts of up to $100,000 along with repayment terms as long as seven years. Where SoFi really shines is in the possibility of same-day funding. If you’re approved early enough in the day, you can receive your funds in time to handle most emergencies.

Best for joint loans: Happen Bank

Happen Bank (formerly LendingClub) offers joint loans, and applying with someone who has a higher credit score might increase your approval odds. It offers fast funding, loan amounts of up to $75,000 and repayment terms as long as seven years. With a higher credit score, avoiding an origination fee or paying a lower one is possible.

Best long repayment terms: LightStream

LightStream has no origination fees and offers an autopay discount. Repayment terms are as long as 20 years, depending on the loan purpose. Qualifying borrowers can get up to $100,000 in unsecured loans, with the best terms reserved for those with high credit scores.

Best for poor to fair credit: Universal Credit

Universal Credit is Buy Side’s highest-rated lender for those with lower credit scores. Rates are slightly higher, and origination fees can be up to 9.99%, depending on credit. However, multiple opportunities for rate discounts exist, and borrowers can get up to $50,000 with repayment terms as long as seven years.

Best for credit union personal loans: Navy Federal

Navy Federal can be an attractive choice for a personal loan if you meet the membership requirements. With competitive interest rates, no origination fees and an autopay discount, Navy Federal provides low-cost loans with amounts ranging from $250 to $150,000. Secured options are available, and applying with a cosigner is possible.

Best for secured loans: Upgrade

Upgrade offers secured loan options, even allowing you to use fixtures in your home as collateral. Cosigners and joint applications are accepted, and you can borrow up to $75,000 to be repaid over up to seven years. Rates are competitive, and discounts are available, but origination fees apply.

Best for limited credit history: Upstart

Upstart touts its use of AI to help underserved communities, including those with limited credit histories, access loans. Upstart also offers secured loan options, competitive interest rates and low origination fees, and it allows you to borrow up to $75,000. Repayment options are somewhat limited, though, with terms of three or five years.

Best for rate discounts: Achieve

Achieve has more rate discounts than any other lender in Buy Side’s ratings. You can receive a discount by setting up direct pay to your creditors, applying with a co-borrower and having retirement assets. Achieve offers loans of up to $50,000 with repayment terms as long as five years.

Best for multiple offers: Splash

Splash offers loans from partners with various requirements and terms. Finding a loan without origination fees and receiving rate discounts is possible. You can borrow up to $100,000 and repay it over up to seven years. You typically receive funding within three days.

Best for smaller loan amounts: Rocket Loans

Rocket Loans allows a minimum amount of $2,000 and a maximum of $75,000. You might qualify for no origination fee and there is an autopay discount.

Personal loan rates by credit score

Your personal loan rate depends on your credit score, the amount you borrow and other factors. Below are the average rates based on credit score band, through the end of June, 2026, according to Buy Side partner Credible:

Personal loan calculator

Before you borrow, use a loan calculator to run the numbers and see what makes sense. Consider different repayment terms and interest rates to get a realistic idea of how personal loan payments might fit into your monthly budget. Avoid borrowing more than you can comfortably repay, and consider alternatives, such as savings, for non-emergency expenses.

How do personal loans work?

You typically receive a lump sum and repay it over a set period. Most personal loans are unsecured, although you might find lenders offering secured options.

Secured vs. unsecured personal loans

Secured personal loans often have lower interest rates than unsecured personal loans. When you offer collateral, the lender assumes less risk because it can repossess that asset. The lender might be willing to provide better terms if it knows it can recuperate some of its costs.

Unsecured loans don’t offer the same level of security to a lender, so they often have higher interest rates. However, you risk losing an asset when you offer collateral. Carefully consider whether you can afford to lose any item you offer as collateral before moving forward with a secured personal loan.

Loan terms and repayment options

When choosing the best personal loan for your situation, consider your budget and how it fits with loan terms and repayment options.

A longer loan term can result in a lower monthly payment that better fits your monthly budget. However, it costs more in interest than a shorter loan term with a higher monthly payment.

One strategy is to get a longer-term loan but make larger payments over a shorter time frame. If you have an emergency or hardship, you can scale back your monthly payments to the minimum, but if you don’t encounter problems, you can pay off your loan faster. Most personal loans don’t have early payment penalties, but confirm it first, especially if you want to employ this strategy.

Factors that affect loan approval and rates

Getting the best personal loan rate advertised by a lender requires approval and, usually, a high credit score.

You might find getting your preferred interest rate difficult, depending on your credit history. If you’re approved for a personal loan with a lower credit score, the lender often charges a higher APR. Compare a few lenders to see what you qualify for and what rate you might get.

Other factors that impact your loan approval and APR include:

Income
Other debts
Loan purpose
Whether the loan is secured or unsecured
Repayment terms

Fees also impact your APR. When comparing personal loans, review the APR, which indicates your total annual cost, accounting for origination and other upfront fees.

What can a personal loan be used for?

Personal loans can be used for almost any legal purpose. Common uses include:

Debt consolidation: Use a larger loan to pay off multiple debts, potentially qualifying for a lower interest rate and streamlined payments.
Home improvement: An unsecured personal loan lets you pay for home upgrades without securing the debt with your house.
Medical expenses: Your health insurance might not cover the entire cost of a procedure, so a personal loan can help you manage medical expenses.
Major purchases: Personal loan funds can be used for computers, vacations, cars and other big purchases.
Life events: Use a personal loan to help pay for a wedding or moving costs. Note that some lenders don’t allow you to use personal loans for college tuition costs, although you might be able to buy necessary books or equipment.
Emergency expenses: A personal loan that funds within 24 hours can be helpful when an unexpected need, such as a car repair or last-minute travel for a family emergency, presents itself.

Requirements for a personal loan

Before approving you for a personal loan, a lender reviews your credit and personal finance information. Each lender has its own criteria, so consider prequalification to determine whether you might meet the requirements before submitting an application.

Credit score: Most lenders review your credit history. Some set a minimum credit score. You generally need a credit score of at least 670 or 680 for the best chances of approval. However, some lenders work with borrowers with poor to fair credit in the mid-500s to low 600s.
Income: Depending on the lender, you might need to meet a minimum income threshold. Lenders typically want to see that you have “sufficient” income to make regular payments on the loan. Some lenders, such as Discover Loans, might require you to make at least $25,000 a year to qualify.
Outstanding debts: Many lenders review your debts and how much of your income you spend on servicing existing loans. You might have a harder time qualifying for the best terms for a personal loan if your debt-to-income (DTI) ratio is more than 30%, and some personal loan lenders might not approve you with a DTI of above 40%.
Cosigner or co-borrower: Applying with someone with a higher credit score might improve your chances of approval. A cosigner agrees to take responsibility for your debt if you default, acting as a guarantor. A co-borrower or co-applicant has equal ownership of the debt.
Collateral: Not all personal loan lenders accept collateral. However, if you can provide something valuable, such as a savings account, vehicle or home fixtures, you might have a better chance of being approved or receiving favorable terms.

When does it make sense to get a personal loan?

Personal loans can work well if you have consistent income and can fit the payments into your budget. Circumstances when a personal loan can make sense might include:

You want to consolidate high-interest debt: Personal loans often have lower interest rates than credit cards and other high-interest debt. Paying off smaller high-interest debts with a bigger loan can result in lower overall costs and reduce your total number of payments. It might free up room in your budget while saving you money on interest.
You need money fast: Some lenders offer same-day funding, which can be attractive in a pinch. If an unexpected expense arises and your emergency fund is not enough, a personal loan can fill the gap.
You don’t want to tie up a valuable asset: Borrowers hoping to buy a used car or make home improvements might qualify for an unsecured personal loan. You get the funds you need without risking the loss of an asset if you cannot make payments.

When to avoid a personal loan

A personal loan can feel like the solution to a problem, but it might not be a good choice if you can’t afford the monthly payment. You might also reconsider borrowing if you recently lost your income or if irregular income makes it difficult to pay your bills on time.

Additionally, even though you can use personal loans for vacations or weddings, you might not want to go into debt for discretionary spending. Creating a plan to save up with the help of a high-yield savings account might be a better strategy.

Personal loans vs. credit cards

Both personal loans and credit cards can provide access to funds. Understanding how they work can help you choose which to use based on your circumstances.

Personal loans can be ideal when you have large, planned expenses and prefer a predictable payment schedule. Credit cards are typically more attractive for regular expenses you can pay off each month. You might also prefer credit cards if you plan to use rewards, although carrying a balance often results in costs that offset the benefits of cash back.

Pros and cons of personal loans

Pros explained

Flexibility: Personal loans can be used for most legal purposes and often have repayment terms that are likely to meet your budget.
Don’t usually require collateral: While secured personal loans exist, most lenders offer unsecured loans that don’t require you to pledge an asset.
Fast funding available: You might be able to receive personal loan funds within three business days of applying.
Predictable payments: Most personal loans offer a fixed interest rate that results in the same monthly payment, allowing you to plan your budget.

Cons explained

Costs include interest and potential fees: Borrowing has costs, and you repay more than you borrow, making personal loans costlier than saving up.
Missed payments can negatively impact your credit score: Payment history has the biggest effect on your credit. If you pay late or miss a payment, you might see a dramatic decrease in your credit score.
Must reapply if you want additional funds: You must apply for a new loan if you need additional funds to meet your goals.

How to compare personal loans

Compare at least three to five lenders to determine which offers terms that work for your situation.

Interest rate: Many personal loan lenders offer rate quotes using a soft credit inquiry, which won’t impact your score. Look for a lower APR to reduce your overall cost.
Fees: Some lenders charge an origination fee based on your credit score. Verify whether an origination fee will reduce the amount of funds you receive and how it might impact the cost of borrowing.
Repayment terms: A longer repayment term typically results in a budget-friendly monthly payment but usually costs more in interest. Look for a lender that helps you balance your monthly budget needs with long-term costs.
Loan amount: Verify that the lender offers a loan amount that meets your requirements. If you need a smaller amount, avoid lenders with higher minimums.
Customer support: Choose a lender that meets your needs for support, including whether your communication preferences—such as live chat, email or phone—are available. Trustpilot and the Better Business Bureau can help you better understand how other customers feel about a lender.

7 steps to getting a personal loan

Once you decide that a personal loan is the right financial choice for your situation, the following steps can help you navigate the application process.

1. Decide how much you need and can afford

Consider how much money you need to meet your financial goals. Run the numbers to determine whether the amount you plan to borrow will fit your budget. A personal loan calculator can help you estimate your monthly payments based on the amount you borrow.

2. Review your credit

Check your credit report using AnnualCreditReport.com to verify that your history is accurate. If you notice mistakes, contact the credit reporting agencies to fix them. If you can wait until your credit file is updated, you might qualify for better rates and terms.

3. Determine if you meet requirements

Not all lenders prominently display their credit and income requirements. Some offer personal loans to borrowers with credit scores below 600, but you’re likely to qualify for lower rates and more favorable terms with a credit score over 670. Check for income requirements as well. Determine if you have a better chance of qualifying with collateral or a cosigner.

4. Gather required documents

You can speed up the approval and application process by having this information readily available:

Social Security number
State-issued identification number (e.g., driver’s license)
Bank statements
Employer’s contact information
Paycheck stubs
Bank account information, including routing number and account number, for loan funding

5. Prequalify

Provide your Social Security number and income information to prequalify. Verify that the lender uses a soft credit check for prequalification to avoid the slight dip to your credit score as you compare loan options. Once you prequalify with several lenders, you can compare options to decide where to apply.

6. Submit your formal application

After choosing a lender, submit a formal application. You might need to provide additional documentation based on the lender and loan requirements. When you apply, the lender typically uses a hard credit check to verify your information. A small and temporary drop in your credit score usually accompanies a hard inquiry.

7. Sign the loan agreement and begin repayment

The lender will send a loan agreement if you’re approved. You can usually sign electronically. Once you complete the process, you can receive your money within one business day, depending on the lender’s policies. Pay attention to when you begin repayment.

Alternatives to a personal loan

A personal loan isn’t right for every situation, so consider alternatives before moving forward.

0% APR credit card: For smaller amounts, using a credit card with an introductory rate might make more sense. You avoid interest charges during the promotional period. Plan to pay off the credit card before you have to pay interest.
Personal line of credit: Personal lines of credit offer revolving debt, so you can continue borrowing without reapplying. If you aren’t sure how much you need or you want an ongoing source of funds, a personal line of credit might make more sense than a lump-sum personal loan.
Home equity: Home equity loans and lines of credit are secured with the ownership you’ve built up in your home. You might qualify for a lower interest rate for a large loan amount by using your house as collateral. Be aware that you could lose your home if you can’t make payments, however.
Savings: Consider saving up for a large purchase or other nonemergency expense. You can avoid debt by planning to save. Emergency savings can also reduce your use of debt for unexpected costs since you don’t have to turn to loans.
Family and friends: Loved ones in your network might provide you with a no-cost or low-interest way to cover your expenses without the need for a formal loan.

How Buy Side rates personal loan lenders

We analyzed data points from more than 30 lenders, including traditional banks, credit unions and online lenders, and assigned ratings on a scale of 1 to 5 stars. Our pool includes partner lenders, but partners don’t compensate us for ratings or influence the outcome of our ratings.

We chose six factors and weighted them based on our expert assessment of their importance to readers. Lenders with the highest point values were assigned 5 stars, with the lowest-scoring companies receiving 1 star. Learn more about how Buy Side rates personal loans using data-driven methodologies.