Best Personal Loans for Good Credit in March 2024
Updated: March 14, 2024
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People with good credit typically find it easier to get approval for personal loans. While companies consider various factors, credit score plays a huge role. In some cases, having a good credit score may even be a requirement for securing a personal loan.
MoneyGeek ranked the best personal loans for good credit and shared some tips to help determine which company is right for you based on your needs and circumstances.
What Is Good Credit?
Good credit is more than just a number; lenders see it as a reflection of your financial responsibility and trustworthiness. When we talk about "credit," we're referring to your credit history, which is a record of how you've managed and repaid debts over time. This history is then translated into a credit score, a three-digit number that lenders use to assess your creditworthiness.
A "good" credit score typically means that you consistently:
Credit scores typically range from 300 to 850. While the exact range for what's considered "good" can vary among different scoring models and lenders, a score of 670 to 739 is generally recognized as good by many lenders. Scores above this range are often categorized as very good or excellent, while scores below are considered fair or poor.
Having good credit is crucial because it affects various aspects of your life. Not only does it determine whether you're approved for a loan or credit card, but it also influences the interest rates you're offered.
Best Personal Loans for Good Credit
Having good credit can save you money when borrowing. MoneyGeek made a list of the top personal loan options for people like you — check it out to find the best rates and terms.
- Discover
- 5.99% to 24.99%APR Range
- 720Minimum Credit Score
- $2,500 to $35,000Loan Amount Range
- 36 to 84 monthsRepayment Terms
- Next DayTime to Receive Funds
Based on MoneyGeek's research, Discover stands out as a top choice for personal loans for those with good credit, available across all 50 states.
It offers loans ranging from $2,500 to $35,000. What's more, Discover doesn't charge fees for setting up the loan or for early repayment. If you have second thoughts, you can return the borrowed amount within 30 days without any interest.
However, Discover's loans might not be the right fit for everyone. There's a fee if you miss a payment. If your annual income is below $40,000, you won't qualify. Also, if you're aiming to fund higher education, you'll need to look elsewhere, as Discover doesn't allow its loans for that purpose. For loans larger than $35,000, you'll need to consider other lenders.
Pros
- No origination fees
- No prepayment penalty
- Funds available within the next day
- Option to return loan funds within 30 days
Cons
- High minimum credit score requirement
- Has late fees ($39)
- Employment requirements
- Minimum gross income requirement of $40,000
- Has restrictions on fund usage
- Best Egg
- 8.99% to 35.99%APR Range
- UndisclosedMinimum Credit Score
- $2,000 to $50,000Loan Amount Range
- 36 to 60 monthsRepayment Terms
- Next DayTime to Receive Funds
Best Egg takes the runner-up spot for top personal loans for those with good credit. It provides loans between $2,000 and $50,000, and you can receive the funds in as little as one to three days in 47 states. If you opt for automatic repayments, Best Egg offers a discount.
However, there are some things to be aware of. Best Egg does charge an origination fee, and there's a fee for late payments. The loans might not be suitable for everyone. For example, if you need a loan larger than $50,000, you'll have to explore other options. Also, those with an annual income below $50,000 might not meet the qualifications for this lender.
Pros
- No prepayment penalty
- Get funds the next day
- No debt-to-income limits
- Soft credit score inquiry
- 0.5% auto payment discount
Cons
- 1%–6% origination fee
- Has late fees ($15)
- High minimum credit score
- Minimum gross income requirement of $50,000
- Employment requirements
- Upgrade
- 8.49% to 35.99%APR Range
- UndisclosedMinimum Credit Score
- $1,000 to $50,000Loan Amount Range
- 24 to 84 monthsRepayment Terms
- Within a dayTime to Receive Funds
Upstart is another noteworthy contender in the realm of personal loans for those with good credit. It offers a range of loan amounts, making it convenient for borrowers with varying needs. If you're in a hurry, Upstart is known for its quick approval and disbursement process, ensuring you get the funds when you need them. Opting for certain repayment methods might even fetch you some discounts.
However, like all lenders, there are other aspects to consider. Upstart may have fees associated with their loans, and late payments might incur additional charges. Its loans might not cater to everyone's needs, especially if you're looking for a particularly large loan amount or if you fall below its income criteria. Always review the terms and see if they align with your financial situation.
Pros
- 300 minimum credit score
- No prepayment penalty
- Conducts a soft credit inquiry
- Loans funded in one to two days
Cons
- 1%–6% origination fee
- Has late fees ($15)
- High minimum credit score
- Minimum gross income requirement of $50,000
- Employment requirements
- LightStream
- 7.49% to 25.49%APR Range
- UndisclosedMinimum Credit Score
- $5,000 to $100,000Loan Amount Range
- 24 to 144 monthsRepayment Terms
- Same day funding possibleTime to Receive Funds
LightStream, the online lending arm of Truist bank — a result of the 2019 merger between SunTrust and BB&T — offers versatile personal loans tailored to a variety of needs, from home makeovers and debt consolidation to weddings, vacations and even funerals.
With loan amounts spanning from $5,000 to a generous $100,000, and flexible repayment terms ranging from 24 to 84 months, LightStream caters to a broad spectrum of financial requirements. A credit score of at least 660 is typically needed for loan approval. One of LightStream's standout features is its swift disbursement; once approved, funds can be in your account in as little as a day. Borrowers can also appreciate the absence of early repayment penalties, origination fees or late payment charges.
However, it's essential to note that LightStream loans come with certain restrictions. They can't be used for business expenses, post-secondary education costs or any unlawful activities.
Pros
- A+ BBB rating
- 0.5% autopay discount
- No prepayment, late or origination fees
- Offers same-day funding
- Has a mobile app
Cons
- Performs hard inquiry that affect credit score
- Won’t allow co-signers
- Does not offer smaller loans
- Restrictions on fund usage
- Won’t accept people with new or no credit
Best Overall
Runner-Up: Best Egg
Best for Quick Deposits: Upstart
Best for Large Loans: LightStream
Types of Personal Loans for Good Credit
Having good credit opens up a plethora of options when it comes to personal loans. Lenders are more willing to offer favorable terms and a variety of loan types to borrowers who have demonstrated financial responsibility. Here's a breakdown of the types of personal loans you might encounter:
The most common type of personal loan, these loans don't require any collateral. Your good credit score is essentially your "security" with the lender. They typically come with fixed interest rates and set monthly payments.
These loans require collateral, like a car or a savings account. While your good credit might get you favorable terms, the collateral can help you secure a larger loan amount or even a slightly lower interest rate.
The interest rate on these loans remains constant throughout the loan term. This means your monthly payment will always be the same, making it easier to budget.
The interest rate on these loans can fluctuate based on market conditions. While they might start with a lower rate than fixed-rate loans, there's the risk of the rate (and your payment) increasing.
Specifically designed to pay off multiple debts, these loans can help you consolidate various payments into one monthly payment, often at a lower interest rate.
If you have good credit but lack a substantial credit history, some lenders might offer you a loan if you have a co-signer with an established credit history.
Instead of receiving a lump sum, you're given a credit limit. You can borrow up to that limit, similar to a credit card, and you only pay interest on the amount you borrow.
These are secured against the equity in your home. They can offer larger amounts and potentially lower rates, but they come with the risk of losing your home if you default.
Instead of traditional banks or credit institutions, these loans come from individual investors or groups of investors. Platforms like LendingClub or Prosper facilitate these types of loans.
These loans have a set number of scheduled payments over a specified term. They're often used for specific purchases or projects.
How to Compare Good Credit Loans
When you're in the market for a personal loan, especially with good credit, you have the advantage of choice. But with so many lenders vying for your attention, how do you choose the right one? Comparing lenders is a crucial step to ensure you get the best terms, rates, and overall experience. Here's what to consider:
How to Choose the Best Personal Loan
Before applying for a personal loan, it is important to consider a variety of factors. These include your credit score, current debts, income and employment. How you would use the money you borrow will also matter. Determine if you need the money for large purchases, debt consolidation or financing major expenses. Use MoneyGeek’s guide to help you find the best personal loans for good credit based on your needs.
Ask Yourself the Important Questions
When looking for personal loans for good credit, be sure to carefully evaluate if borrowing money is right for you. Then, check the qualification processes for the lenders you have chosen. Depending on the lender, you may not qualify for a loan. Consider asking the following questions:
- How much funding do I need?
- What is my credit score?
- Can I afford the monthly payment?
- How much debt do I already have?
Do Your Research
Lenders have different requirements and conditions. It is essential to understand these before you proceed with the application process.
Find out how lenders check credit scores. While some may only do a soft check, others conduct hard credit checks that could impact your credit score. Depending on the loan term, you will have to make monthly payments for two to six years, on average. Make sure to check interest rates too. Comparing rates is one of the best ways to find the best personal loan for good credit.
MoneyGeek created this guide to help you through the loan application process. That said, these recommendations may not be suitable for all types of borrowers. It is still in your best interest to explore other options and compare them.
Wait
A personal loan is a commitment you will have to deal with for years. That is why it is important to be 100% sure that borrowing money is the best option. Once you have done your research, think your decision over and wait for a day or two before submitting your application.
Read the Fine Print
Many borrowers often miss specific details about personal loans, which can have a huge impact on your payment terms. They can even help you save money in the long run.
Read the loan documents carefully. Before applying for a loan, make sure you understand all relevant details, especially prepayment penalties, early payoff fees and origination fees. Ask the lender for clarifications, if necessary.
Apply
If you’re sure that getting a personal loan is right for you, use the information you have gathered to choose the best lender for you. Then, proceed with the application process.
The process and requirements may vary per lender. However, standard requirements include providing identification, address verification and proof of income.
Options for the submission of the application may also differ. Some lenders allow online applications. While this makes the process more convenient for some people, it will still help to call or visit the lender. This way, you can easily clarify any concerns you may have.
Common Mistakes to Avoid
Navigating the world of personal loans can be complex, and even those with good credit can make missteps. To ensure you get the most out of your loan and avoid potential pitfalls, be wary of these common mistakes:
FAQs About Personal Loans for Those With Good Credit
The best personal loans for good credit depend on personal needs and various other credit and income factors. MoneyGeek answers some of the frequently asked questions about personal loans to help you find the right lender and loan offer.
Typically, it is easier for individuals with good credit to get a personal loan than those with bad credit scores. However, the best option may vary depending on your needs and financial situation. Researching and comparing rates and offers can help you find the right lender for you.
A personal loan can affect your credit score in a good way. However, it can also have a negative impact. For instance, a hard credit check will be recorded on your credit report. Taking out a loan also means you are taking on debt. That is why it is important to ensure that you can pay back the money you borrow.
According to the Federal Reserve, the average interest rate for a 24-month term personal loan in the U.S. was 11.48% as of May 2023. Borrowers with good credit should expect a lower interest rate.
Interest rates may vary depending on the loan amount and lender. Generally, a good interest rate is lower than the 11.48% national average.
Good credit indicates to lenders that you're a reliable borrower. With a strong credit history, you're more likely to secure loans with favorable terms, lower interest rates and higher loan amounts. It can also simplify and speed up the approval process.
Yes, many lenders offer personal loans to individuals with fair or average credit. However, the terms might not be as favorable, and interest rates could be higher compared to those with good or excellent credit.
It varies by lender. Some might charge origination fees, late payment penalties or prepayment fees. Always review the loan agreement or ask the lender about any potential fees before committing.
Approval times can vary. Some online lenders offer instant or same-day approvals, while traditional banks might take several days to a week. Once approved, fund disbursement can range from the same day to a few days later.
Generally, yes. Personal loans are often versatile and can be used for various purposes like debt consolidation, home renovations or vacations. However, some lenders might have restrictions, so it's essential to check with them if you have a specific use in mind.
About Christopher Boston
sources
- Federal Reserve. "Consumer Credit." Accessed September 29, 2023.
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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