Best Personal Loans Online With Low Interest Rates

By: Cooper Haywood
Last Updated: April 07, 2020
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If you want to consolidate or refinance high interest rate debt such as credit cards or student loans, a low interest personal loan could be a good solution. After receiving a personal loan, cash is typically deposited into your bank account, which means you can use the loan for any purpose.

With the rise of marketplace and P2P lenders, shopping for a low rate personal loan online has never been easier. You can check to see if you are approved and receive your interest rate without hurting your credit score.

We created the comparison chart below to help you find the best place to get a personal loan.

I have a
credit score and need a loan of

NameRatingAPR RangeMax AmountLoan TermOrigination FeeMin Credit ScoreLearn More
Sofi favicon
5.7% - 14.49%$100,00084 monthsNo feeExcellent CreditSign Up
SoFi Review
Avant favicon
9.95% - 36.0%$35,00060 monthsNo fee580Sign Up
Avant Review
Best egg favicon
Best Egg
5.99% - 29.99%$35,00060 months1.0% - 5.0%640Sign Up
Best Egg Review
Circleback favicon
6.63% - 35.18%$35,00060 months0.99% - 4.99%660Sign Up
CircleBack Review
Earnest favicon
4.25% - 9.25%$50,00036 monthsNo fee720Sign Up
Earnest Review
Karrot favicon
6.44% - 29.27%$35,00060 months1.05% - 4.75%660Sign Up
Karrot Review
Lendingclub favicon
5.99% - 36.0%$40,00036 or 60 months1.0% - 5.0%640Sign Up
LendingClub Review
Lightstream favicon
Low Fixed Rates$100,000FlexibleNo fee720Sign Up
LightStream Review
Loandepot favicon
6.17% - 29.52%$35,00036 months1.0% - 5.0%640Sign Up
LoanDepot Review
Pave favicon
6.0% - 16.0%$25,00036 months1.0% - 2.0%660Sign Up
Pave Review
Payoff favicon
8.0% - 22.0%$25,00060 months2.0% - 5.0%660Sign Up
Payoff Review
Prosper favicon
5.99% - 36.0%$35,00060 months1.0% - 5.0%640Sign Up
Prosper Review
Upstart favicon
4.67% - 29.99%$35,00036 months1.0% - 6.0%640Sign Up
Upstart Review
Vouch favicon
7.35% - 29.96%$15,00036 months1.0% - 5.0%600Sign Up
Vouch Review

Getting the Best Personal Loan for Your Needs

Far too many people underestimate the dangers of credit card debt. Between the often sky-high interest rates and the fees credit card companies are always looking to tack on, it can take years to payoff just the principle, not to mention the interest, you put on a credit card.

But, what are you supposed to do when you need a cash infusion to deal with a business opportunity or a personal crisis? What if you’re looking to refinance high interest loans as you work to pay them off?

The answer for more and more people is a personal loan. Unlike credit cards, most personal loans are at given at a fixed interest rate for a set period of time. You can usually save a lot of money by choosing a personal loan instead of reaching for a credit card. Even with a personal loan, you still need to make sure you are getting the best deal possible. Here are a few tips to make sure you know what you are getting into with a personal loan.

Your Best Personal Loan Options

There are no shortage of places you can turn to for a personal loan. Unlike just several years ago, now you don’t even have to leave your home to get a great personal loan. The best personal loans will require you to do a little research. The main sources of personal loans are:

  • Online Lenders
  • Banks
  • Credit Unions
  • Consumer Finance Companies
  • Peer-to-Peer Lenders

Online Lenders

The web has made the financial industry much more competitive over the past several years. This is great news for borrowers because the more places competing for your money the better the terms of the loan will be. Online lenders allow you to apply for a personal loan in your underwear, and get the money transferred to your account quickly. However, not all online lenders are offering good deals. Always use caution and realize that like anything else, if the deal is too good to be true, it probably is.


These used to be the only way to get a personal loan. But, now for most borrowers they should be the last choice. They usually offer higher interest rates and if you go to too many banks shopping for the best deal, your credit can take a hit. They also have the strictest terms and approval rates.

Credit Unions

These may look like a bank, but they offer lower interest rates and are often more flexible in terms of timelines and lending criteria.

Consumer Finance Companies

These places advertise that you can leave that day with the money from your personal loan. The downside is they usually offer credit card like interest rates and have a reputation for poor customer service.

Peer-to-Peer Lenders

The most exciting opportunity for personal loans is peer-to-peer lending. Think of it like borrowing money from a friend that you have never met. This has expanded the amount of money available to borrowers and offers competitive rates. Always do your research when borrowing from a peer-to peer network.

Your Rate and Eligibility

Low interest rate personal loans are available, but the rate you pay will be linked to your credit score and your eligibility for a loan. Lenders want to make sure they will get their money back. The more confident lenders are that you will pay your loan off on time, the lower your interest rate will be.

This means that you will need to show a lender that you have a way to pay back the loan. The best way to do this is to have a steady income and a track record of paying your bills.

When it comes to preparing you application for a personal loan, the more prepared you are, and the better you understand what lenders are looking for, the more likely you are to get a low interest personal loan.

Lenders want to know what you are going to be using the money for. The more specific you are about your needs the better off you will be. Keep in mind that the lender wants to make a profit and that depends on you paying the loan back on time. If you want the money to take a dream vacation to Hawaii you are much less likely to score a low interest personal loan than if you need the money to buy more inventory for your already successful businesses.

Before you apply for a personal loan, have all your financial records handy.

What to Watch Out For

It is still a "buyer beware" world out there for personal loans. Here are a few things to look out for when shopping for personal loans:

  • Variable Interest Rates
  • Frequent Credit Checks
  • How Your Personal Information is Handled
  • How You Make Your Payments

Variable Interest Rates

The best personal loans are fixed rate and fixed term loans. Variable rate loans can ruin your credit and your personal finances. Even if you think you can payoff the loan before the rate changes, be cautious. You never know what might go wrong and leave you with an ugly interest rate.

Frequent Credit Checks

Applying for loans means having your credit score checked. But, if lenders check your credit score too frequently in a short period of time, it can tank your credit rating. Narrow down your choices by doing thorough web research before agreeing to a credit check. Limit the number of lenders checking your credit to three or fewer in a 90-day period.

How Your Personal Information is Handled

Make sure you know the privacy practices of any lender you are dealing with. Some lenders supplement profits by selling your information to others looking to get some of your newly acquired cash.

How to Make Your Payments

Make sure you understand the process for making your payments. Some lenders only accept online payments. You need to be sure you aren’t late making a payment because you cannot figure out how to pay the bill.

Personal loans can make a big difference when you are in need of cash. However, make sure you do your research and only take the best personal loan you can qualify for. The more you borrow the more you will have to pay back.

About the Author

Cooper is a former equity research professional/finance analyst who holds an MBA in Financial Instruments and Markets from New York University's Stern School of Business. He left the investment banking world in 2015 to become a full-time investor. He contributed to InvestmentZen as an financial product analyst from 2016-2017.