The Best Personal Loans Rates of 2020

Be sure to compare terms from several different lenders before selecting a personal loan that best meets your needs.

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Personal loans can provide a cost-effective way to pay for certain large purchases or can help you consolidate high-interest credit card debt and retire it at a lower interest rate.

What is a personal loan?

A personal loan is money borrowed from a bank, credit union or online lender for nearly any purpose, typically without collateral. These loans are often repaid in equal monthly installments over a set time period, such as three to five years.



Credit Rating

loan term 36 - 60 months
Max loan $40,000
loan term 0 - 60 months
Max loan $35,000
loan term 24 - 60 months
Max loan $40,000
loan term 0 - 36 months
Max loan $25,000
loan term 36 - 60 months
Max loan $50,000
loan term 24 - 60 months
Max loan $35,000
loan term 36 - 60 months
Max loan $40,000
loan term 24 - 60 months
Max loan $25,000
  • Advertising Disclosure: The personal loan offers that appear on this site are from companies from which Money-rates receives compensation. This compensation may impact how and where products appear on this site including the order in which they appear. Money-rates does not include all loan providers or all types of loan offers that are available.
  • Money-rates is not a loan provider but only matches you with lenders that may extend a loan to you. All loan approval decisions and terms are determined by the loan providers at the time of your application with them. There is no guarantee that you will be approved for a loan or that you will qualify for the rates displayed. The offers and rates presented on this website are estimates based on information you submit to us. Your actual rates depend on your credit history, income, loan terms and other factors. Reasonable efforts are made to compile and maintain accurate information. However all loan rates and terms, including APRs, are presented without warranty and are subject to change by the loan providers without notice.

How to use a personal loan

Since there are few, if any, restrictions on how personal loans can be used, borrowers use them for many purposes. Some of the most common include:

  • Debt consolidation: Obtain a personal loan at a reasonable interest rate and pay off outstanding credit card bills that are charging high interest rates.
  • Medical or health expenses: Unexpected medical or dental bills can be costly to pay off over time on your credit card. A personal loan is likely to have a lower interest rate than a credit card and may make it easier to pay health bills over a set period.
  • Wedding: Rather than rack up credit card debt, personal loans can enable borrowers to pay for their dream wedding without paying high interest rates.
  • Travel: Sometimes it isn’t possible to save up for a trip in advance, such as when it is necessary to visit a relative who is ill. A personal loan can facilitate a trip today that is paid off in installments over time.
  • Home improvement:  Personal loans help homeowners pay for current emergency repairs or make timely improvements that facilitate the sale of a home.

Qualifying for a personal loan

Lenders evaluate your income, current debt level, and credit score, among other things. Review our detailed article on how to apply for a personal loan and learn about borrowing options for various credit scores.

If you want a personal loan and are concerned about your ability to borrow with bad credit, see the advice and guidance in our article on how to get a personal loan with bad credit.

Be sure to compare terms from several different lenders before selecting a personal loan that best meets your needs.

What Credit Score Is Needed for a Personal Loan?

Your credit score is one of many factors that can be considered in the loan-approval process. Lenders may also look at your credit report (a statement with information about your current credit situation and payment history) as well as your income stability. Your credit score may indicate whether a loan can be approved and how favorable the terms can be.

My Credit Is…>RangeLoan Terms
Excellent740 to 850Fairly easy to qualify for the most favorable loan terms
Average670 to 739Should be able to qualify for average loan terms
Poor580 to 669If you qualify for a loan, interest rates may be very high
Bad579 and lowerUnlikely to qualify

How much do you have to make to get a personal loan?

Income requirements for personal loans vary by lender. Some lenders recommend a minimum annual income to qualify for a personal loan; others ask for proof of taxable income or require a certain debt-to-income (DTI) ratio. Lenders may also combine these requirements. For example, loan approval may depend on a recommended annual income of $60,000 and a DTI less than 40 percent.

The debt-to-income ratio is a comparison of your monthly debt burden to your gross monthly income. So if your monthly expenses total $1,000 and your gross income is $3,000 per month, your DTI is 30 percent. A DTI of 20 percent or less is considered excellent by most lenders and a DTI of 40 percent or higher may indicate financial hardship.

What information do you need to apply for a personal loan?

You are generally required to supply personal information to your lender to support a personal loan application. The specific documents requested may vary by lender, by loan purpose, and by your employment type. Typically, information is needed to prove your identity and residence, income and expenses, credit history and bank balances. If collateral is required, you may need to supply proof of ownership as well.

This is not an exhaustive list, but it can give you an idea of the types of documents you may need to present to the lender during the loan-approval process:


Information Sought

Documents to Supply

Identity/ResidenceName, address, date of birth
  • Driver's license or state ID
  • Military ID
  • Passport
Income (salaried)Employer, dates of employment
  • Paycheck stub
  • W-2
  • Tax returns*
Income (self-employed)Client list, dates of employment
  • Financial statements
  • Tax returns*
Income (other)Alimony/child support
  • Divorce decree
ExpensesEstimate of monthly expenses
  • Mortgage statements or lease
  • Credit card statements
  • Any loan statements
  • Utility bills
  • Bank statements
Credit HistoryCredit report authorization
  • SSN
Collateral**Proof of ownership
  • Deed or title to home
  • Auto or boat title

* Lenders typically ask for your most recent tax return, and may ask to see two years of returns.
**Many personal loans do not require collateral, but some do.