Best Personal Loans of 2026

Personal loans offer fixed rates and predictable payments for debt consolidation, home improvements, medical expenses, or major purchases. Unlike credit cards, you know exactly when you’ll be debt-free.

Quick Summary: SoFi leads with competitive rates starting at 8.99% APR, no fees whatsoever, and unemployment protection. For those with excellent credit seeking the lowest rates, LightStream offers rates as low as 6.49% APR with its rate-beat program.

Detailed Reviews

1. SoFi Personal Loan

SoFi has become the gold standard for personal loans, offering a rare combination of competitive rates, zero fees, and member benefits that extend beyond the loan itself.

The Good:

• No origination fees, no prepayment penalties, no late fees
• Unemployment protection: payments paused if you lose your job
• Direct payment to creditors for debt consolidation
• Rate discount (0.25%) with autopay
• Free access to certified financial planners
• Member benefits: career coaching, rate discounts on other SoFi products
• Fast funding: same-day if approved by 2:30 PM ET

The Not-So-Good:

• Requires good credit (typically 680+) for best rates
• No co-signer option
• Minimum loan amount of $5,000
• Rates higher than LightStream for excellent credit

Best For: Borrowers with good credit who value the complete SoFi ecosystem. The unemployment protection is genuinely valuable job loss insurance.

Total Cost Example: $20,000 loan at 10% APR for 5 years

• Monthly payment: $425
• Total interest: $5,496
• Total cost: $25,496
• Fees: $0

3. Payoff Loan

Payoff focuses exclusively on credit card debt consolidation, designing every aspect of the loan experience around helping borrowers escape credit card debt permanently.

The Good:

• Purpose-built for credit card debt consolidation
• Direct payment to credit card companies
• Free credit monitoring and financial tools
• FICO score increase support (average +40 points reported)
• No prepayment penalties
• Dedicated member support team
• Financial education resources

The Not-So-Good:

• Only for credit card debt (no other purposes)
• Maximum loan of $40,000
• Origination fee up to 5%
• Minimum credit score around 640
• Not available in all states
• Takes 2-5 days to fund

Best For: Borrowers specifically consolidating credit card debt who want support through the process. The direct payment feature ensures funds go to creditors.

Debt Consolidation Math:

• Credit card debt: $15,000 at 22% APR (minimum payments: 30+ years)
• Payoff loan: $15,000 at 12% APR for 4 years
• Monthly payment: $395
• Interest savings: $10,000+
• Debt-free date: 4 years guaranteed

5. Rocket Loans

Rocket Loans, from the Rocket Mortgage family, delivers the fastest funding in personal loans—often same-day—with a streamlined digital application.

The Good:

• Same-day funding available (if approved by 1 PM ET)
• Simple, fast online application
• Integration with Rocket ecosystem (Mortgage, Auto)
• Rate discount with autopay
• No prepayment penalties
• Transparent rate check with soft pull

The Not-So-Good:

• Origination fees up to 6%
• Maximum loan of $45,000 (lower than competitors)
• Terms limited to 3-5 years
• Rates not the most competitive
• Limited customer service options

Best For: Borrowers who need money fast and value speed over absolute lowest rates. Emergency expenses, time-sensitive purchases.

Speed Comparison:

• Rocket Loans: Same-day funding
• SoFi: Same-day if approved early
• LightStream: Same-day in some cases
• Traditional banks: 3-7 days typical

How to Choose a Personal Loan

Step 1: Check Your Credit Score

Your score determines which lenders you’ll qualify for and what rates you’ll receive.

Credit Score	Expected APR	Best Lenders
750+ (Excellent)	6.5%-10%	LightStream, SoFi
700-749 (Good)	10%-15%	SoFi, Discover, Marcus
670-699 (Fair)	15%-22%	Upgrade, Upstart
580-669 (Poor)	22%-35%	Upgrade, Avant

Step 2: Determine Your Loan Purpose

Different lenders specialize in different needs:

• Debt Consolidation: Payoff, SoFi, Discover
• Home Improvement: LightStream, SoFi
• Medical Expenses: Upgrade, Prosper
• Major Purchase: LightStream, Marcus
• Emergency Expense: Rocket Loans, Upgrade

Step 3: Compare Total Cost (Not Just Rate)

Factor in origination fees to find true cost:

$20,000 Loan for 5 Years:

Lender	APR	Origination Fee	Monthly Payment	Total Cost
SoFi	10%	$0	$425	$25,496
Upgrade	10%	$1,600 (8%)	$458	$27,480

The 8% origination fee makes Upgrade $1,984 more expensive despite same APR.

Step 4: Get Pre-Qualified with Multiple Lenders

Most lenders offer soft-pull pre-qualification. Check rates with 3-5 lenders before applying. This doesn’t hurt your credit and ensures you get the best offer.

Personal Loan vs. Alternatives

Personal Loan vs. Credit Card

Factor	Personal Loan	Credit Card
APR	6.5%-36%	15%-30%
Fixed Payment	Yes	No
Payoff Date	Known	Variable
Access to Funds	Lump sum	Revolving
Best For	Large, one-time needs	Ongoing, smaller needs

Verdict: Personal loans win for debt consolidation and large expenses. Credit cards win for flexibility and rewards.

Personal Loan vs. HELOC

Factor	Personal Loan	HELOC
Collateral	None	Home equity
APR	6.5%-36%	7%-12%
Application	Days	Weeks
Risk	Credit score	Home loss
Best For	No equity, faster need	Large amount, own home

Verdict: HELOCs offer lower rates but risk your home. Personal loans are faster and safer.

Personal Loan vs. 401(k) Loan

Factor	Personal Loan	401(k) Loan
APR	6.5%-36%	~Prime + 1-2%
Impact	Credit score	Retirement savings
Risk	Default affects credit	Loss of growth, taxes
Best For	Good credit	Poor credit, stable job

Verdict: 401(k) loans seem cheap but sacrifice retirement growth. Personal loans preserve retirement.

Common Personal Loan Mistakes

Mistake 1: Focusing Only on Monthly Payment

Problem: Longer terms have lower payments but much higher total cost. Solution: Compare total cost (all payments + fees) across options.

Example: $15,000 loan at 12% APR

• 3-year term: $498/month, $2,930 total interest
• 7-year term: $263/month, $7,070 total interest
• Choosing longer term costs $4,140 more

Mistake 2: Ignoring Origination Fees

Problem: Fees reduce money received and increase effective APR. Solution: Factor fees into total cost comparison. A 10% APR with 6% fee often beats 11% APR with no fee.

Mistake 3: Not Shopping Around

Problem: Rates vary dramatically between lenders for same borrower. Solution: Check rates with 3-5 lenders using soft-pull pre-qualification.

Mistake 4: Borrowing More Than Needed

Problem: Easy approval tempts borrowing extra “just in case.” Solution: Calculate exact amount needed. Borrow only that.

Mistake 5: Missing Autopay Discount

Problem: Most lenders offer 0.25%-0.50% discount for autopay. Solution: Always enroll in autopay. Set up alerts as backup.

Bottom Line

SoFi offers the best overall personal loan experience with competitive rates, zero fees, and genuine member benefits including unemployment protection. It’s the clear choice for good-credit borrowers who value the complete package.

For absolute lowest rates, LightStream can’t be beat—especially with their rate-beat guarantee. Excellent credit borrowers should always check LightStream rates.

Fair credit borrowers have solid options with Upgrade, which accepts scores as low as 580 and offers secured loan options for better rates.

The key to a smart personal loan: Shop multiple lenders, compare total costs (not just monthly payments), and borrow only what you need. The right loan can save thousands versus high-interest alternatives.