Best Online Loans of April 2024

The internet is not only useful for finding cat videos and top-notch memes — it can also save the day when you need financial help. You can research loan options, submit an application, and receive the funds from an online loan without ever leaving your couch.

To help you choose the right online loan, we evaluated lenders based on reputation, customer service, rates and fees, terms, loan amounts, funding time, and online options. All the lenders below have a web app and let you prequalify with a soft credit check (at the time of publication). Some also offer live chat.

Compare online loan rates of April 2024

Best online loans

These personal loans are best for a variety of situations and borrower profiles. Check out each lender's pros and cons to get a sense of whether it's a good fit for you. Then, prequalify with those lenders to see what rates you might get. Just note that prequalification is not an offer of credit.

SoFi: Best overall

Upgrade: Best for fair credit

Discover: Best for no origination fees (and low rates)

Splash: Best quick loans for good credit

Universal Credit: Best debt consolidation loans for bad credit

LendingClub: Best online experience

OneMain Financial: Best bad credit personal loans

Axos: Best for low origination fees

Avant: Best for all credit types

Happy Money: Best for consolidating credit card debt

Methodology

Credible evaluated the best online loans based on factors including the online 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.

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.

How to compare online loans

When comparing personal loans online, you’ll want to consider the following factors.

• Eligibility requirements: Start by narrowing down your options to online loans you can qualify for based on your credit score and income. Make sure the lender offers loans for your intended purpose.
• Interest rate: The interest rate on an online loan is the percentage of the loan amount you’ll pay to borrow the money each year. Online lenders also provide an annual percentage rate (APR), which includes the interest rate and fees. This can help you compare loan options apples-to-apples and choose the loan with the lowest borrowing cost.
• Loan amounts: You shouldn’t borrow more or less than you need, so make sure the lender offers the amount you’re looking for. Most lenders offer between $600 and $100,000.
• Repayment terms: The term on an online loan is the number of months or years you’ll have for repayment. Longer terms have lower monthly payments, but you’ll pay more in interest. Lenders generally offer terms for personal loans from 1 to 7 years. Make sure the lender you choose offers a term with a monthly payment you can manage.
• Fees: Many lenders charge an origination fee to fund the loan. You should avoid lenders that charge prepayment penalties in case you can pay off the loan early. Get an understanding of the lender’s late fees as well. With some lenders, you may be able to avoid fees altogether.
• Cosigner option: If you have bad credit, applying with a friend or family member who has good credit can help you get approved. But you’ll need to choose a lender that allows cosigners. Your cosigner will be responsible for the loan if you fail to repay, so make sure to stay on top of your payments to avoid damaging the relationship.
• Time to fund: Some lenders offer fast loans and can distribute the money as soon as the next business day. Others may take several days to fund your loan. Consider how quickly you need the money when choosing a lender.
• Lender reputation: Finally, check with sites like Trustpilot and the BBB for customer reviews. Look for patterns of complaints that may be concerning.
• 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.

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What is an online loan?

An online loan refers to a personal loan or installment loan with an online application. With an online loan, you won’t need to visit your local bank or credit union to get the money you need. Many online loans are offered by lenders that operate online and don’t have brick-and-mortar locations, but traditional financial institutions also offer online loans.

An online personal loan provides a lump sum of money that you can use for almost any purpose. You repay the loan in fixed payments with interest over the course of several months or years. Most lenders will check your credit when you formally apply to make sure you’ve been consistent with paying your debts. They’ll also look at your income and outstanding debt. This will determine the interest rate and amount you qualify for.

Pros and cons of online loans

Here are the advantages and disadvantages of online loans.

Pros

• Fast funding: Some lenders can distribute the funds to you as soon as the next business day after you’re approved.
• Online application: You can apply from the comfort of your home, and the process is typically quick and easy
• Typically unsecured: For most online loans, you won’t need to put forth collateral, like your house or car, to secure the loan. That means you won’t risk losing your asset.
• Lower rates than credit cards: When compared to a credit card, online loans offer relatively low interest rates. You can even use an online personal loan to pay off your credit card debt and save money, if you can land a lower rate.

Cons

• Lack of in-person service: With an online loan, you won’t have the opportunity to meet with a loan officer in-person to discuss your options, though some online lenders offer phone support.
• May be difficult to qualify for: Because personal loans are often unsecured, it can be difficult to get approved for a reasonable rate when you have bad credit.
• Higher rates than secured loans: Secured loans are less risky for the lender because they can take your collateral as recourse if you don’t pay. That means that secured loans, such as auto equity loans, tend to come with lower interest rates than online personal loans.

How to apply for a personal loan online

Take the following steps to apply for a personal loan online.

1. Compare lenders: Research lenders’ eligibility criteria, reputation, and any other factors that may be important to you, such as flexible repayment terms.
2. Prequalify: Once you’ve narrowed down your options, go through the prequalification process, which allows you to check your rate without hurting your credit. Once you formally apply for a loan, the lender will conduct a hard credit pull which could hurt your score by a few points, temporarily. Note that prequalified rates are estimates and not an offer of credit. 
3. Pick a loan option: Compare rates and terms to choose the loan option that best meets your needs.
4. Complete the application: Once you choose to proceed with the application, the lender will run a hard credit inquiry, which may decrease your credit score slightly. Provide additional documentation as necessary to complete the application.
5. Review the loan agreement: If the lender’s final offered rate still works for you, read your loan documents carefully and sign to accept your loan offer.
6. Get the funds: Wait for the funds to be deposited into your bank account. You can spend the money as soon as you receive it, but make sure to budget for repayment.

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Online loans for bad credit

Getting an online loan with bad credit can be a challenge, but some online lenders use alternative underwriting data to approve more borrowers. You can prequalify with bad credit online lenders, like Upstart or Universal Credit, both Credible partners, to see if you’re eligible. If you’re not approved, you can also try the following:

• Secure the loan: Some online lenders offer secured personal loans, which may be easier to qualify for and may offer a rate discount. For example, Best Egg offers online loans secured by your home fixtures, and Upgrade offers online loans secured by your vehicle. Best Egg and Upgrade are both Credible partners.
• 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 an quicker boost to your credit score by using a tool like Experian Boost.

FAQ

How to get a fast loan online

To get an online loan safely and quickly, research online lenders that offer emergency personal loans. Personal loans come with lower rates and longer repayment terms than other types of fast loans, like payday and title loans, which can be risky. You can get an online personal loan as soon as the next business day, depending on the lender.

What are some legit online payday loans?

Online payday loans come at a high cost, with APRs reaching nearly 400%, and most payday loans are renewed or rolled over, according to the Consumer Financial Protection Bureau. A payday loan can trap you in a cycle of debt. If you need a fast online loan and you have bad credit, you’re better off applying for an online installment loan or payday loan alternative.

Where can I get a loan online?

You can get a personal loan online from an online lender or a bank or credit union that offers online loans. You can also get an online installment loan from a no-credit-check lender or apply for a cash advance on your paycheck from a cash advance app.

Related Articles:

• Best Banks for Personal Loans
• Best Personal Loans for Fair Credit
• Best Personal Loans for Good Credit
• Best Personal Loans With No Origination Fee
• Best Instant Loans