Best Personal Loans for Excellent Credit for 2024
Updated: April 23, 2024
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First Tech is the best personal loan lender for borrowers with excellent credit, earning a MoneyGeek score of 97 out of 100 thanks to its competitive rates and outstanding service and reputation. Truist is the best option for debt consolidation loans, while Fifth Third Bank and Axos Bank are the top choices for low-interest rates and same-day funding, respectively.
The average credit score in the U.S. is 715, based on Experian data from 2023. An excellent credit score opens up a wide range of options for personal loans. MoneyGeek evaluated lenders based on factors like interest rates, loan terms, application process, customer service and reputation to find the best options for your specific needs.
- First Tech
- 97MG Score
- 9.29% to 14.09%APR Range
- UndisclosedMinimum Credit Score
- $500 to $50,000Loan Amount Range
- 24 to 84 monthsRepayment Terms
First Tech Federal Credit Union stands out as the best overall personal loan lender for borrowers with excellent credit, boasting a MoneyGeek score of 97 out of 100. It offers loan amounts ranging from $500 to $50,000, with flexible repayment terms between 24 and 84 months. It doesn’t charge application fees, origination fees or prepayment penalties. Additionally, it allows borrowers to defer their first payment for up to 45 days from the funding date of the loan. Applying for a loan can be done online or over the phone, ensuring a hassle-free experience for borrowers.
Pros
- No application, origination or prepayment fees
- Minimum loan amount of $500
- Conducts soft credit inquiries
- Insured by the National Credit Union Administration (NCUA)
Cons
- Need to be a member to apply
- Low borrowing limit at $50,000
- Little information on loan application requirements
Excellent Credit Loan Best Overall
- PenFed
- 96MG Score
- 7.99% to 17.99%APR Range
- UndisclosedMinimum Credit Score
- Up to $50,000Loan Amount Range
- Up to 60 monthsRepayment Terms
PenFed Credit Union is the runner-up for the best personal loans for people with excellent credit, earning a MoneyGeek score of 95 out of 100. It’s federally insured by the National Credit Union Administration (NCUA), making it a reliable and trustworthy lender. PenFed provides loan amounts up to $50,000 and repayment terms of up to 60 months, offering flexibility to borrowers. Although it doesn’t impose origination fees or prepayment penalties, it charges a minimum monthly payment of $50 for all its loans.
Pros
- No origination or prepayment fees
- Low starting APR at 7.99%
- Insured by the National Credit Union Administration (NCUA)
Cons
- Maximum loan amount is $50,000
- $50 minimum monthly loan payment
Excellent Credit Loan Runner-Up
"Credit unions are member-owned nonprofit organizations that service their member community. Credit unions typically have stricter membership requirements compared to traditional banks.
However, meeting these requirements can be worthwhile if you're seeking an affordable personal loan option. To become a credit union member, you generally need to meet certain eligibility criteria based on the credit union's field of membership. Common ways to qualify include employment, geographic location, organizational affiliation and family relationship." — Alvin Yam, CFP®
- Truist
- 96MG Score
- 8.74% to 17.39%APR Range
- UndisclosedMinimum Credit Score
- Starting from $3,500Loan Amount Range
- 24 to 60 months Repayment Terms
Truist is our top choice for excellent credit borrowers seeking personal loans for debt consolidation, earning a MoneyGeek score of 96 out of 100. It offers loan amounts starting from $3,500 and repayment terms ranging from 24 to 60 months. With competitive APRs ranging between 8.74% and 17.39% and no origination fees, Truist ensures a cost-effective solution for consolidating debts. However, it doesn’t allow borrowers to prequalify for its loans, and limited information is available on its website regarding loan specifics.
Pros
- Loans can be used for debt consolidation
- Offers competitive rates
- Doesn’t charge origination fees
Cons
- No soft credit checks
- Limited information on website
Best Excellent Credit Loan for Debt Consolidation
- Fifth Third Bank
- 95MG Score
- 8.99% to 21.74%APR Range
- UndisclosedMinimum Credit Score
- $2,000 to $50,000Loan Amount Range
- 12 to 60 monthsRepayment Terms
With a MoneyGeek score of 95 out of 100, Fifth Third Bank is our pick for the best personal loan for low-interest rates. It offers a competitive starting APR of 8.99% and a 0.25% autopay discount. With loan amounts ranging from $2,000 to $50,000 and repayment terms spanning from 12 to 60 months, borrowers also have flexibility in meeting their financial needs. While Fifth Third Bank doesn’t impose prepayment penalties, it charges late fees, and prospective borrowers who apply online should also be aware that they can only borrow up to $25,000.
Pros
- Low starting APR at 8.99%
- Offers 0.25% autopay discount
- No prepayment penalty
- Option to select your first payment date
Cons
- Charges late fees
- Borrowing limit for online applications is $25,000
- Only available to existing Fifth Third customers
Best Excellent Credit Loan for Low Rates
- Axos
- 95MG Score
- 11.79% to 20.84%APR Range
- 700Minimum Credit Score
- $7,000 to $50,000Loan Amount Range
- 36 to 72 monthsRepayment Terms
- Same DayTime to Receive Funds
Axos Bank is the best lender for same-day personal loans, receiving a MoneyGeek score of 95 out of 100. It offers loan amounts ranging from $7,000 to $50,000, with repayment terms between 36 and 72 months. It also provides a speedy prequalification process that takes minutes, and funds are available on the same day of loan approval. While borrowers can benefit from the lack of prepayment penalties or hidden fees, they should be aware of a 1–2% origination fee deducted from the funded amount.
Pros
- Offers same-day funding
- No prepayment penalty
- Does soft credit inquiries
Cons
- High minimum loan amount
- Charges 1–2% origination fee
Best Excellent Credit Loan for Same-Day Funding
What Is an Excellent Credit Score?
Excellent credit scores typically fall between 800 to 850 for FICO® Scores and 781 to 850 for VantageScore. A credit score serves as a numerical representation of an individual's credit risk, providing lenders with insight into their likelihood of repaying debts. Factors such as payment history, credit utilization, length of credit history, types of credit used and new credit inquiries are often considered when calculating credit scores.
Benefits and Drawbacks of Excellent Credit Personal Loans
Before applying for a personal loan as a borrower with excellent credit, weighing the benefits against the drawbacks is helpful.
How to Compare Personal Loans for Excellent Credit
While getting a personal loan becomes more accessible by having excellent credit, navigating the options available can still pose a challenge. Consider the following factors when comparing loans for consumers with excellent credit to streamline your decision-making process:
"When comparing personal loans, it's wise to look beyond the stated interest rate. The interest rate is the percentage of the loan amount the lender charges for borrowing money, expressed as a yearly percentage.
The annual percentage rate (APR) represents the total amount of interest you will pay on a loan account over one year, including all extra fees (such as origination and processing). APR is a more accurate reflection of the true out-of-pocket costs to a borrower." — Alvin Yam, CFP®
FAQ About Personal Loans for Excellent Credit
We addressed some commonly asked questions about personal loans for borrowers with excellent credit to provide valuable insights and help you make well-informed decisions.
We picked First Tech as the best personal loan lender for those with excellent credit. It earned a MoneyGeek score of 97 out of 100 for its competitive rates, quality service and transparency in loan terms and processes.
Fifth Third Bank is the best personal loan lender for low rates. It earned a MoneyGeek score of 95 out of 100 and has a starting APR of 8.99%.
Excellent credit matters when applying for a personal loan as it demonstrates a history of responsible financial behavior and a low credit risk to lenders. With excellent credit, you are more likely to qualify for lower interest rates and more favorable loan terms, saving money over the life of the loan.
While having excellent credit can qualify you for lower interest rates on personal loans, securing a 0% interest rate is rare. Such promotional rates are more commonly associated with credit cards, where introductory periods may offer 0% interest for a limited time.
The amount you can borrow with excellent credit varies depending on factors such as your income, debt-to-income ratio, credit history and the lender's policies. However, with excellent credit, you can typically access higher loan amounts than those with lower credit scores.
While having excellent credit increases your chances of qualifying for a personal loan, lenders also consider other factors such as income, employment status and debt-to-income ratio when evaluating loan applications.
You may have some leverage to negotiate loan terms, especially interest rates and fees. It's worth exploring this option by comparing offers from different lenders and discussing your creditworthiness with potential lenders to see if they can offer more favorable terms.
With excellent credit, the approval process for a personal loan can be relatively fast, often taking just a few business days or even less. Many online lenders and financial institutions offer streamlined application processes, allowing borrowers with excellent credit to receive approval within minutes and funding in as little as one business day.
While excellent credit can strengthen your loan application, lenders still consider your income to determine your ability to repay the loan. Even with excellent credit, lenders typically require proof of income to ensure you can afford the monthly payments.
While traditional banks may offer personal loans, you should explore all available options, including online lenders, credit unions and other financial institutions, to find the most competitive rates and terms for your credit profile.
sources
- Experian. "What Is the Average Credit Score in the US?." Accessed April 11, 2024.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
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