Best Personal Loans for Excellent Credit in 2025

If you have excellent credit, you also have an excellent chance of qualifying for a lender's lowest personal loan interest rate. This article highlights some of the best personal loans for excellent credit and explores the reasons why your responsible credit habits could save you money on interest and fees and help you qualify for bigger loans.

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Best personal loans for excellent credit

PenFed: Best credit union for excellent credit

Pentagon Federal Credit Union, or PenFed, is the second-largest federal credit union in the country. Anyone can become a member and apply for a loan or other account with a $5 deposit to a share savings account, which sets this credit union apart from many others with more restrictive membership criteria. It offers bank accounts, credit cards, auto loans, mortgages, personal loans, and more.

PenFed doesn’t disclose a minimum credit score, but borrowers with excellent credit are most likely to qualify for the credit union's lowest rates — which are among the lowest we've found for personal loans.

• APR range: 6.99% to 17.99%
• Origination fee: None
• Loan amounts: $600 to $50,000
• Repayment terms: 1 to 5 years 
• Funding time: As soon as the next day

What is excellent credit?

An excellent credit score is a positive indicator of a person’s financial responsibility based on a variety of data collected by the credit bureaus. 

Lenders use credit scores as one of the methods to assess the financial risk involved with offering a loan to an applicant. An excellent credit score indicates you’re a low-risk borrower — it assures lenders that you’re very likely to repay your debts on time. If you have excellent credit, you’re more likely to qualify for the best personal loans and other loan options with low interest rates and fees. 

Credit scoring models assign you a credit score based on the information in your credit report, like your payment history and outstanding debts. An excellent credit score is a FICO score of 800 or greater. An estimated 90% of top lenders use FICO scores to evaluate applicants, making it the most commonly used scoring model. Some lenders use VantageScore instead — a VantageScore of 781 or above is typically considered excellent.

The table below shows the FICO score ranges for different credit ratings. 

How having excellent credit helps you qualify

Lenders consider various factors, primarily credit scores, to weigh the risk of approving a borrower's application for a personal loan, mortgage, and other types of credit. They also use credit scores in determining a borrower's interest rate. For example, people with bad credit and a history of late payments are more likely to default on a new loan, so a lender may deny the application or charge a higher interest rate to compensate for the increased risk. 

On the other hand, people with excellent credit present a relatively low risk to lenders. “A high credit score doesn’t just open the door, it changes the room you walk into,” says Ethan Aiem, CEO at Klendify, a business capital platform. “Lenders see you as low-risk, which usually means better interest rates, higher limits, and faster approvals.” 

An excellent credit score can help you qualify for more loan options, but Aiem says it can even give you negotiating power, since most lenders will want your business. “When I see borrowers with a 760+ score, they often qualify for the best offers from multiple lenders and can play them against each other for better terms,” he says. Some lenders, like LightStream, even offer to beat competitors’ unsecured personal loan rates under certain conditions. 

How to use a personal loan with excellent credit wisely

“Debt is a tool that can be used wisely or poorly,” says Michael LaCivita, CFP, Financial Advisor at Domain Money. “Someone with good monthly cash flow and excellent credit could use a personal loan for a larger purchase with the understanding the loan could be paid off without impacting financial goals,” he says. 

For example, if you’re expecting a bonus in the future, “a personal loan could be used for a large expense and paid off with the bonus money,” says LaCivita. 

Though you can typically use a personal loan for almost any household expense, some personal loan uses are more strategic than others. Some ways you can use a personal loan to improve your financial situation include:

• Consolidating debt to save money on interest
• Paying for home improvements to increase your home’s resale value
• Funding relocation to accept a higher-paying job offer
• Funding a medical procedure to improve your health or reduce ongoing medical costs
• Covering an emergency expense to avoid dipping into your retirement savings or taking out a high-interest loan
• Covering everyday expenses while you receive education or training to improve your career prospects
• Starting a small business or side hustle that you expect will be profitable

An excellent credit score gives you the advantage of lower-cost borrowing, which makes it easier to use debt to achieve your financial goals. But keep in mind that taking out a personal loan may impact your credit score, both positively and negatively. 

“The biggest drop I see is from new inquiries and balance spikes right after funding,” says Aiem. To avoid any further damage to your credit, set up autopay to ensure you always make your payments on time. 

You can make extra payments to save money on interest, but be aware that paying off an installment loan too quickly may do more harm than good. “A consistent, positive payment record over time often helps your score more than wiping everything clean overnight,” says Aiem. Having no active installment loans poses a greater risk to your credit score than having a low installment loan balance, according to FICO. 

Interest rates for excellent credit

The chart below shows average interest rates selected by borrowers with excellent credit (FICO scores of 800-850) for three-year and five-year personal loans.

Average personal loan rates for excellent credit by loan purpose

Personal loan rates for excellent credit borrowers may vary depending on how you intend to use the loan funds. For example, you may get a lower rate if you use the loan for credit card refinancing than if you fund a major purchase. 

The chart below shows average APRs, which represent the annual cost of the loan, factoring in both interest rate and upfront fees, for some common loan purposes. 

Learn More: How To Compare Personal Loans

Pros and cons of personal loans

Pros

• Lower rates than credit cards: Two-year personal loans come with average interest rates more than 9 percentage points lower than credit cards — 11.57% vs. 21.16% — according to the Federal Reserve.
• May not require collateral: When you take out an unsecured personal loan, you don't risk losing personal assets if you default. Though unsecured loans may have higher interest rates overall than secured loans, excellent-credit borrowers often qualify for the lowest rates.
• Fast funding: Many lenders can fund a loan within a day of approval, and some may even disburse funds the same day you apply, like LightStream or SoFi.
• Predictable monthly payments: Personal loans typically come with fixed monthly payments and interest rates, unlike other forms of credit. This means you'll know exactly how much you owe each month.
• Flexible use: Personal loans are disbursed as lump sums that can be used for a variety of approved purposes, including paying for large purchases, debt consolidation, emergency expenses, vacations, medical procedures, and home renovation.

Cons

• Increased debt burden: Taking out a personal loan means adding to the amount of debt you owe (unless used to consolidate other debt). Lump-sum funding differs from revolving lines of credit, which allow you to borrow as needed.
• Potential fees: Some personal loans come with fees, like origination fees and late fees.
• May have higher interest rates than other forms of debt: While personal loans tend to have lower rates than credit cards, they tend to have higher rates than loans secured using your home's equity as collateral, such as a home equity loan.

How much will an excellent-credit personal loan cost?

The total cost of a personal loan depends mainly on the APR and repayment term. While excellent credit borrowers typically receive the lowest APRs (and pay less interest as a result) than other borrowers, APRs can also vary depending on the loan purpose, the borrower’s income, and other factors. 

The table below shows the cost of a low-APR personal loan for someone with excellent credit compared to a higher-APR loan for someone with good credit. The total interest savings equate to $1,805. 

Note that the repayment term also affects the total interest — the same low-APR personal loan with a 5-year term would cost $3,652 in interest over the life of the loan.

You can use a personal loan calculator to estimate the total repayment cost of the loan options you’re considering. 

How to apply for a personal loan for excellent credit

The application process for personal loans tends to be the same no matter your credit score. Here are the typical steps to expect.

Research and compare lenders

Narrow down your options by considering the factors in the section below. Check each lender’s reputation and ensure the lender is licensed to issue loans in your state. 

Prequalify

Many personal loan lenders allow you to prequalify with only a soft credit inquiry. A soft credit check won’t affect your credit score, but it’ll give the lender enough information to estimate the loan amount, APR, and term you might qualify for. This process allows you to compare your options without damaging your credit. 

Choose a lender and apply

Choose the loan option that best meets your needs — ideally, choose the lowest APR out of the options that have an affordable monthly payment. Upload any additional documents the lender requires, such as pay stubs or tax returns. At this stage, the lender typically performs a hard inquiry, which can temporarily shave a few points off your score. 

Review the terms and sign your loan agreement

Make sure the final rate and monthly payment work for you — the details may vary from the prequalification estimate. Be sure to check the loan agreement for incidental fees, restricted loan purposes, and the lender’s rights in the event of default. Ask any questions you may have, then e-sign your loan documents to initiate the funds transfer to your bank account.

Receive your funds and begin making monthly payments

Most lenders transfer the loan amount as a lump sum, less any applicable upfront fees, to your bank account within a few business days. With personal loans for debt consolidation, some lenders can send the loan funds directly to your creditors. Personal loan repayment begins right away, and late payments can damage your credit score, so set a due-date reminder or enroll in autopay. 

How to compare lenders

As you compare your options, consider loan features like:

• Rates and fees: APR represents the total annual cost of borrowing, accounting for the interest rate and any upfront lender fees, such as origination fees for underwriting the loan. With an excellent credit score, you may qualify for a personal loan with no origination fee. 
• Repayment terms: Pay attention to the repayment term, which affects both the monthly payment and the total interest. Shorter repayment terms often cost less but come with higher monthly payments. “If you are sure you can pay a loan off within the lower interest term, this could be a smart way to leverage debt,” says LaCivita. 
• Funding time: Most lenders can fund a personal loan within a few business days. If you need fast cash to cover an emergency expense, look into same-day personal loans. 
• Loan amounts: Some lenders offer loan amounts of up to $100,000 or more for borrowers with excellent credit, though the amount you qualify for will also depend on your income and existing debts. If you need a small loan, pay attention to minimum borrowing amounts — you shouldn’t borrow more than you need. 
• Lender reputation and customer service: Customer support options range from email-only support to in-person assistance available at brick-and-mortar banks and credit unions. Consider your needs and evaluate the lender’s quality of service by reading customer reviews on sites like Trustpilot. “Smaller online lenders often beat big banks on speed and service, even for top-tier borrowers,” says Aiem. 
• An excellent credit score can help you qualify with lenders that offer special perks. For example, Best Egg offers secured personal loans for homeowners with APRs as low as 5.99%, and SoFi offers membership benefits like a free session with a financial advisor. 

Alternatives to personal loans for excellent credit

A personal loan isn’t the only financing option available to someone with excellent credit. If a personal loan doesn’t seem like the right fit for your financial situation, consider these alternatives. 

Credit cards

A credit card is a good option for everyday purchases and smoothing out uneven cash flow. “Credit cards are great if you can pay off the balance within the month to avoid late and interest fees,” says LaCivita. “Ideally, your credit cards have travel points or other benefits to rack up while you pay off the debt quickly.” But if you need to carry a balance past the due date, it’ll cost you — the average credit card APR is 21.39%, according to the Fed. 

An excellent credit score helps you qualify for 0% APR promotional offers for new cardholders, which allow you to avoid interest for a longer period of time — up to 24 billing cycles, as long as you keep up with the minimum payments. 0% APR credit cards can be helpful if you need to make a large purchase, but you should ensure you can repay the full balance before the promotional period ends. 

Home equity loan

A home equity loan allows you to borrow against your home equity, which is the portion of your home that you own outright (your home’s current value less your outstanding mortgage balance). You receive the cash as a lump sum and repay it in fixed monthly payments. Home equity loans typically offer lower interest rates, longer repayment term options, and sometimes higher borrowing limits, but they can take longer to fund and may come with closing costs. There’s also a risk of foreclosure if you fail to repay. 

“I usually tell clients, if the purchase or project improves your long-term value, like renovations or investments, equity lending can make sense,” says Aiem. “But if you’re borrowing for short term needs or consolidation, keep it unsecured. Don’t risk your home for something that’ll be gone in six months.”

Home equity line of credit

A home equity line of credit (HELOC) is similar to a home equity loan in that it’s secured by the equity in your home. But instead of receiving a lump sum, you’ll get access to a revolving line of credit you can borrow against repeatedly while only paying interest on the amount you borrow. HELOCs typically have more repayment flexibility than home equity loans. But they sometimes come with fees and minimum withdrawal amounts, and there’s still a risk of foreclosure if you default. 

Methodology

Credible evaluated 32 lenders across 1,216 data points to determine the best loans for excellent credit. We established lender star ratings based on the following weighted categories:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

Credible's team of experts gathered information from each lender’s website and from our partners directly. We also considered each of our partner lenders' statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Each data point is verified by a senior editor to make sure it's accurate at the time of publication.

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