Personal loans for good credit: the best of August 2022

What is a good credit loan?

Having good credit can often mean a drop annual percentage rates and more favorable terms on personal loans. These loans are unsecured, meaning you don’t have to provide collateral like your car or your savings; instead, lenders assess applicants’ repayment ability by considering factors such as credit, debt, and income.

How to choose a personal loan

Consider these factors when choosing an online lender to get a loan you can afford:

Compare rates between lenders: If you’re someone with good or excellent credit, it pays to shop around for the best combination of low rates and fees. Most online lenders allow you pre-qualify to check rates without affecting your credit, using a soft credit check.

Amount of the loan: The amount of money you could receive with a personal loan ranges from around $2,000 to $50,000, although some lenders offer up to $100,000. The amount you ask a lender may factor into their decision to qualify, so think carefully about how much you need.

Purpose of the loan: One of the benefits of personal loans is that you can usually use the money however you see fit, whether it’s paying off high interest credit cards or home improvementand rates may vary depending on the purpose of the loan.

Term of the loan: Personal loans typically have terms of two to seven years, although some lenders offer extended terms for specific purposes like home renovations. A shorter loan term means you will pay less total interest on the loan; a longer term makes your monthly payments lower and potentially more affordable.

Characteristics of the loan: Some lenders have mobile apps where you can track your loan, which is useful if you like managing your finances well. Others offer flexible payment schedules or options to defer a payment in the event of hardship. If you are consolidate your debtssome lenders will send your loan proceeds directly to your creditors, saving you a major step in your efforts to repay the debt.

Additional benefits: Take advantage of benefits such as free credit score monitoring, financial education resources and career advice that may be offered by your lender.

What are the rates for good credit loans?

The APR you receive on a personal loan depends a lot on your credit score. The higher your score, the lower your rate and the less interest you will pay over the life of the loan. The average APR for borrowers with good credit is 15.5%, according to data from the NerdWallet offering.

The interest rate also affects your total monthly payment, as does the length of the term. Use our personal loan calculator to estimate your monthly payments based on your credit score.

Here’s what personal loan interest rates look like, on average:

Source: Average rates are based on aggregated and anonymized offer data from users who prequalified in NerdWallet’s Lender Marketplace from January 1, 2022 to July 31, 2022. Rates are estimates only and are not specific to any lender. The lowest credit scores — typically below 500 FICO — are unlikely to qualify. The information in this table only applies to lenders with an APR of less than 36%.

Good credit loans from banks

Traditional banks are another option if you have good to excellent credit. Most offer starting interest rates comparable to online lenders, and if you have an existing account with the bank, you might also benefit from an easier application process and lower rates.

American Express, which pre-approves existing AmEx cardholders, is a good choice for consolidating credit card debt. It offers low rates, no setup fees, and the ability to pay directly for up to four cards.

ANC offers its bank customers a discount of 0.25 percentage point on a personal loan if they choose to make repayments through their current account.

TD Bank offers loans to customers primarily in the East Coast states, with competitive rates and fast approval and funding times.

Wells Fargo allows existing customers to apply for personal loans online and offers relatively high loan amounts that make it an option for home improvement financing.

Next steps: pre-qualify for a personal loan

Pre-qualification for a personal loan lets you see the rate, payments, and term you might qualify for before committing to a loan. You can pre-qualify on NerdWallet and compare offers from several partner lenders with us. Pre-qualification will not affect your credit score.

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