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Best Banks for Personal Loans in February 2024

A personal loan can help you consolidate debt or cover nearly any expense. Here’s how they work and where to get one.

By Laura Gariepy

Written by

Laura Gariepy


Laura started writing about personal finance in 2018 when she took a sabbatical from her career in human resources and launched a blog discussing her journey. Realizing she could earn a more lucrative and flexible living as a freelancer, she went all-in. Along with writing, she has coached other professionals on how to launch their own freelance businesses.

Edited by Meredith Mangan

Written by

Meredith Mangan

Senior Editor

Meredith Mangan is a Senior Editor for Personal Finance, specializing in personal loans. Since 2011, she’s helped steer content creation in the areas of mortgages and loans, insurance, credit cards, and investing for major finance verticals, including Investopedia, Money Crashers, Credible, and The Balance Money.

Updated April 17, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”


Getting a personal loan can make sense if you need money to consolidate debt, renovate your home, pay for a wedding, or cover another expense. But there are so many options and lenders available — how do you choose the right one?

Banks, credit unions, and online lenders all offer personal loans. But if you’re most comfortable transacting with a well-established institution that lends its own funds, we’ve compiled a list of the best banks offering personal loans. We considered a host of factors, including interest rates, fees, repayment terms, available loan amounts, customer experience, and customer satisfaction.

Best personal loans from banks

Credible partners with two of the best banks offering personal loans:

Best for no origination fees (and low rates)

Discover Personal Loans


Credible Rating

Check Rates

on Credible’s website

Est. APR


Loan Amount

$2500 to $40000

Min. Credit Score


Pros and cons

More details

Best overall



Credible Rating

Check Rates

on Credible’s website

Est. APR

8.99 - 29.99%

Loan Amount

$5000 to $100000

Min. Credit Score

Does not disclose

Pros and cons

More details

Other banks that offer personal loans

APR range
Loan amounts
Loan terms
US Bank
8.24% - 24.99%
$1,000 - $50,000
1 to 7 years
Wells Fargo
8.49% - 24.49%
$3,000 - $100,000
1 to 7 years
PNC Bank
7.89% - 31.49%
$1,000 - $35,000
6 months to 5 years


Credible evaluated the best banks that offer personal loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible’s team of experts gathered information from each lender’s website, customer service department, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication. 

How to compare personal loans

As you review personal loan options, here are criteria to consider:

  • APR: The annual percentage rate (APR) indicates how much the loan will cost. It accounts for both the interest rate and any upfront fees, and is a better measure to compare lenders by than interest rates alone. The lower the APR, the less your loan will cost.
  • Interest rate: The interest rate helps to determine what you’ll pay to borrow money. Interest rates can range from the single digits to 36%. The rate you’ll qualify for is based on your credit profile, income, loan purpose, and the current interest rate environment.
  • Loan amounts: Some banks issue loans for $100,000, but most offer loan amounts from $1,000 to $50,000. 
  • Repayment terms: Your repayment term dictates how long you have to pay off your debt. Generally, your repayment term will range from 1 to 7 years.
  • Fees: You may have to pay personal loan fees, such as an origination fee, upfront. While many banks don’t charge origination fees, some non-bank online lenders do. Also consider fees like late payment fees and insufficient funds fees. Some banks have lower fees or no fees when compared to others.
  • Discounts: Some lenders offer rate discounts if you set up automatic payments. Check which discounts are available.
  • Cosigner option: A cosigner with good credit can help you get approved for a loan if you have bad credit, or can improve your rate. If you think you need a cosigner, you may need to consider a non-bank online lender to get a loan.
  • Time to fund: If you need your money quickly, go with a lender that disburses funds fast. Some lenders can fund your personal loan the same day you apply.
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A personal loan calculator can help you see how much different interest rates and loan terms will cost you.

Eligibility requirements for personal loans

Eligibility requirements for personal loans vary from lender to lender. However, here are some general rules of thumb to keep in mind:

  • Credit score: Some lenders cater to borrowers with low credit scores or limited credit histories. However, a good to exceptional FICO score (670 and above) gives you the best chance of securing a loan with a favorable APR.
  • Debt-to-income ratio (DTI): Your DTI tells lenders how much of your pretax monthly income goes toward debt. Generally, your DTI should be under 35%, though some banks may accept your application with a DTI as high as 40%.
  • Income: Your lender may have a minimum income requirement. For example, you or your household must earn at least $25,000 per year to qualify for a personal loan from Credible partner Discover.
  • Citizenship status: The bank may require you to be a United States citizen or permanent resident to qualify for funding.
  • Age: You must be a legal adult to get a personal loan (age 18 in most states).
  • Contact information: Your lender must have an address and other contact information on file. That way, they can communicate with you about your loan.
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Good to know

To calculate your DTI, add up your minimum monthly debt payments and divide that by your gross monthly income. For example, if you owe $2,000 toward debt every month, and your monthly income before taxes is $6,000, your DTI is 33%.

How to apply for a personal loan

Getting a personal loan doesn’t have to be complicated. Follow these basic steps to apply:

  • Compare lenders: Research personal loan lenders to find those that offer the loan amount and repayment term you need. 
  • Prequalify: Prequalify for a personal loan with several lenders to see the rates you might qualify for. Prequalifying doesn’t impact your credit score, but is not an offer of credit. Note that once you formally apply, the lender will conduct a hard credit pull, which could temporarily reduce your score by a few points.
  • Pick a loan option: Compare loan options and select the best one for your needs and preferences. Pay attention to the APR, but also consider lender fees and customer satisfaction.
  • Complete the application: Fill out the required forms online or in person. You’ll need to supply documentation that verifies your identity, income, and address. Formally applying for a loan can reduce your credit score by a few points for up to a year.
  • Review the loan agreement and get your funds: If your application is approved, you’ll need to review the loan agreement. If it’s in order, finalize the process with your lender, and watch your bank account for the money.
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Set up automatic payments for your personal loan. You may be able to get a discounted rate for doing so and it can help prevent missed payments..

Pros and cons of personal loans

A personal loan can help you accomplish financial and life goals. However, getting one has pros and cons.


  • Flexible: You can use personal loan funds to cover almost any expense.
  • Lower APRs than some options: Your APR could be lower than the rate on other types of unsecured debt, like a credit card.
  • Fixed interest rate: Personal loan interest rates are often fixed, giving you predictable payments for the duration of the debt.
  • Unsecured debt: Many personal loans are unsecured, which means you don’t need to put up collateral to get money.
  • Fast: You may be able to apply and receive funds on the same day.


  • Qualification requirements: You typically need excellent credit to qualify for the best rates.
  • Fixed loan amount: Unlike a line of credit, you can’t borrow funds again once you’ve repaid them.
  • More debt: You’ll owe more money and have another bill to fit into your budget.
  • Higher APRs than secured debt: The APR could be higher relative to the rate on a secured debt, like a home equity loan.

How to get a bank loan with bad credit

According to the FICO credit-scoring model, scores range from 300-850, with lenders considering a higher score to indicate better financial health. If you have a FICO score below 580, your credit is considered poor.

It can be harder to get a bad-credit loan, but there are a number of ways to improve your application and, potentially, your rate as well:

  • Apply with a cosigner: If you have a friend or family member (with good credit) who is willing to vouch for your loan, find a lender that allows cosigners. A cosigner is also responsible for the loan and at risk if you make late payments or fail to pay. 
  • Get a secured personal loan: Some lenders offer secured personal loans, which means putting up items of value that the lender can seize if you default.
  • Seek a smaller loan amount: It’s possible that the amount you want to borrow is more than lenders think you can afford. Try asking for a smaller loan amount.
  • Improve your credit: This one may take some time, but it might not. One quick way to improve your credit is to ask for increases on your existing credit lines, like credit cards. If approved, your credit utilization could drop, which could immediately improve your score. 


How much would a $5,000 personal loan cost a month?

The per-month cost of a $5,000 personal loan depends on the APR and loan term. For example, you’ll pay $157 per month on a $5,000 loan with an 8% interest rate and a three-year term, which includes $641 in interest. If you change the term to five years, your monthly bill drops to $101, but you will pay more in interest overall, at $1,083. 

What credit score is needed for a personal loan?

To qualify for personal loans with low APRs and generous loan terms, you’ll need a FICO score of at least 670. However, different lenders have different minimum credit score requirements. Some lenders may even approve loans for bad-credit borrowers, or those with a FICO score below 580. Your income and DTI play a role too.

Who is most likely to get approved for a personal loan?

You're most likely to get approved for a personal loan if you have a high credit score, a low debt-to-income ratio, and steady employment with sufficient income. When you can check off all these boxes, you’re considered a lower risk to lenders.

Meet the expert:
Laura Gariepy

Laura Gariepy started writing about personal finance in 2018 when she took a sabbatical from her career in human resources and launched a blog discussing her journey. Realizing she could earn a more lucrative and flexible living as a freelancer, she went all-in. Along with writing, she has coached other professionals on how to launch their own freelance businesses.