Best Online Loans in May 2025

If you’re looking for a fast and convenient way to borrow up to $50,000 (or more), an online personal loan can be a good choice — whether you’re consolidating debt, paying for an emergency, or funding a major expense. Plus, they’re a great alternative to credit cards. Interest rates for personal loans were 11.66% in 2025, on average, compared to 21.37% for credit cards, according to Federal Reserve data. 

But some online lenders offer other types of loans that may be predatory in nature, such as payday loans. Make sure you compare APRs before applying. Non-predatory loans typically have APRs below 36%.

Best online personal loans

Methodology

Credible evaluated over 800 data points across 31 lenders to determine the best online loans. We considered funding time, loan amounts, average rates, customer experience, minimum and maximum interest rates, origination fees, available loan terms, whether secured loans are offered, whether cosigners are accepted, and more. To assign star ratings, we used the following metrics and weightings: 

• Rates and fees: 18%
• Loan terms: 18%
• Customer experience: 17%
• Eligibility: 14%
• Customer satisfaction: 10%
• Efficiency: 10%
• Options for poor credit and no credit: 9%
• Discounts: 4%

Credible's team of experts gathered information from each lender's website and directly from our partners. Each data point was verified by a senior editor to make sure it was accurate and up to date.

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

How to compare online loans

It’s often easiest to compare online loans and lenders on a loan marketplace. You can see APR ranges, available loan amounts, credit score requirements, and more side by side, all in one place. 

Here’s an example of a Credible lender card with where to find estimated APRs, available loan amounts, minimum credit scores, and more:

You can also prequalify with multiple lenders at once on a loan marketplace to see which might have the best rate and terms. But not all marketplaces partner with all lenders, so it’s best to also shop individual lenders to get a fuller picture of what’s available. Here’s what to compare:

• Loan purpose: Not all lenders approve all loan purposes. Before you apply, confirm your lender of choice will allow you to use the money as intended.
• Eligibility: Do you meet minimum income and credit score requirements? Will the lender let you spend the money the way you want? (Some lenders only allow specific loan purposes, such as debt consolidation.) 
• Loan amounts: Make sure the lender offers the amount of money you need to borrow. Personal loan amounts are often available between $1,000 and $50,000. But what you qualify for will depend on your income, credit, and existing debt. 
• Funding time: Personal loans are typically funded within days of your loan’s approval, but some lenders offer same- or next-day funding. If you need money fast, choose a lender with fast approvals and same-day funding.
• APRs: Look at the annual percentage rate (APR), which accounts for the interest rate and any upfront fees, such as origination fees. Note that lenders of short-term loans, like payday loans, often charge fees instead of interest, which can equate to triple-digit APRs. Most legitimate lenders charge APRs up to 36%.
• Repayment terms: Repayment terms often range from around 1 to 7 years or more, depending on the lender and loan purpose. The longer your loan’s term, the lower your monthly payment is, in most cases. Use a personal loan calculator to see how monthly payments can vary based on loan terms.
• Customer experience: Look at customer reviews on third-party websites like Trustpilot and the Better Business Bureau (BBB). In particular, check if different reviewers are reporting similar issues. 
• Discounts and perks: Some lenders offer rate discounts for autopay or direct pay, while others don’t. Or you might get same-day funding if you’re already a customer with the lender. Review lender websites and third-party reviews to find out what a lender is willing to do to get and keep your business.  
• Customer service: Ensure you’ll be able to reach the lender at a time that is convenient for you in case there are any issues with your loan.

Learn More: How To Compare Personal Loans: A Step-by-Step Guide

What is an online loan and how do they work?

An online loan is any type of loan you can get online. But it often refers to unsecured loans you can get online, such as personal loans. 

Here are a few common features of online personal loans:

• Upfront lump sum: What’s great about personal loans is that the amount you borrow can be deposited directly into your bank account. 
• Installment loans: Unlike credit cards, which are a type of revolving credit, installment loans are paid back in scheduled monthly installments, typically for a fixed amount. 
• Fixed interest rates: Most personal loans have fixed rates, which means you don’t need to worry about the rate changing if interest rates rise.
• Often unsecured: Unsecured loans don’t require collateral, which means they’re often quick — you could get money the same day you apply with some lenders. 
• Prequalification available: Most lenders offer prequalification via a soft credit pull. It’s not a loan offer, but it can give you an idea of the rate and terms you might get if you apply (and without hurting your credit).
• Credit check with application: Most lenders will run a hard credit check when you apply, which could ding your score by up to 10 points for up to one year. Predatory lenders are less likely to check your credit or consider your credit score.
• AI underwriting: More online lenders are using AI to help underwrite loans, which can result in quicker approvals and expand borrowing options to more consumers.

Learn More: How Do Personal Loans Work?

Average personal loan interest rates

Borrowers with excellent credit qualify for the best loan rates. But you can often get a lower rate by choosing a shorter repayment term. For instance, we can see that borrowers with the best credit actually paid higher rates, on average, for five-year loans compared to borrowers with very good credit who got three-year loans. 

Types of online loans

Though we focus on online personal loans here, other types are also available. Here’s an overview of the different types of loans available online:

• Unsecured personal loans: No collateral is required; approval is based on creditworthiness, income, and current debt.
• Secured loans: These are backed by an asset like your car or a savings account.
• Payday loans: Available in some states, payday loans are small, short-term, high-fee loans that tend to have triple-digit APRs. 
• Buy Now, Pay Later (BNPL): These short-term installment loans are often interest-free if paid off in 6 weeks. 
• Cash advance app: Similar to payday loans, these small loans (typically up to $500) are due within two weeks. You can avoid paying fees if you don’t need the money right away.   
• Credit card / line of credit: Borrow what you need, when you need, up to your credit limit. 

Pros and cons of online loans

Check Out: Should I Get a Personal Loan?

How to apply for a personal loan online

1. Check your credit report for errors: You can do this weekly for free at AnnualCreditReport.com.
2. Check your credit score: Credible offers credit score and monitoring tools that let you check your credit score for free.
3. Prequalify with multiple lenders: Compare estimated rates and terms to find the best loan for you.
4. Gather application documents: You’ll typically need a photo ID and proof of income and employment. 
5. Submit your application: Be prepared to authorize a hard credit check at this stage.
6. Review the loan agreement: If you’re approved, make sure the loan agreement meets your expectations. It could be different from the prequalification quote you received.
7. Sign documents and await funds: Your lender can send directly to your bank account, often within 1 business day, or to your creditors if consolidating or refinancing debt.

Learn More: How To Apply for a Personal Loan

Online loans for bad credit

If you have a FICO score below 580, getting approved for a loan may be difficult. And if approved, your rate will likely be higher than 30% APR. Start by prequalifying with bad credit lenders, like Avant or Universal Credit, and try the following:

• Secure the loan: Some online lenders, like OneMain Financial, offer secured personal loans for bad credit, which may be easier to qualify for and offer a lower rate. 
• Apply with a cosigner or co-borrower: Applying with a co-borrower or cosigner who has good or excellent credit can improve your chances of getting an online loan. A co-borrower will have access to the funds and joint responsibility for repayment, while a cosigner will only be responsible for repayment if you fail to repay.
• Improve your credit: Making on-time payments, paying down debt, and limiting applications for new credit can positively impact your score. These measures can take time. However, you may be able to get a quick score boost by using a tool like Experian Boost.

How to avoid predatory lending

If you feel pressured to make a decision about a loan right now, that’s a red flag. The same goes for “guaranteed low rates,” which are good as long as you sign up today. 

Check out the rates and terms of multiple lenders before you commit to a loan, and make sure you’re comparing APRs. If one lender has a rate that seems out of line with the others and too good to be true, it probably is. On the other hand, lenders that charge fees instead of interest rates could have very high APRs. Use a payday loan calculator to find the APR on a loan that charges fees instead of interest.

Also, look for ratings or reviews from the lender’s customers on sites like Trustpilot and the Better Business Bureau (BBB). 

Learn More: 8 Signs of Personal Loan Scams

How to avoid predatory lending

To protect yourself from predatory lenders, take the following steps:

1. Avoid lenders who don’t run your credit.
2. Never pay upfront fees before you get the money (fees deducted from the amount you’re borrowing can be a legitimate practice).
3. Check lender reviews and credentials on sites like the BBB and Trustpilot.
4. Review the loan agreement closely to make sure there aren’t hidden fees or balloon payments.